Unadopted Estates and Roads

Alex Easton Excerpts

Tuesday 24th June 2025 Westminster Hall

[Alistair Strathern]

I know my hon. Friend is a tireless champion of his constituents who are impacted by this issue. He is spot on: this fleecehold stealth tax—because it is in essence a stealth tax our constituents are being asked to pay—is not just unfair to residents, but means they are all too often ultimately reliant on management companies to provide a service that they rarely receive. Not only are they having to pay more than those in adopted estates, but they often get a worse service, because there is no transparency or accountability around the management companies taking on those practices.

It is not just a cost issue for my constituents or many like them. There are other big non-financial costs associated with fleecehold. Far too many estates have had to band together and sink countless hours into holding management companies to account to get transparency over works, to ensure that very basic works and maintenance are carried out, and to make sure that things we all take for granted—such as safety inspections on play parks—actually take place. My constituents have had to sink days and days of their time into fighting for the bare minimum.

Alongside the very fragmented legal nature of those entities, they can also put my constituents at risk at crucial moments. I spoke to constituents whose house sales have nearly fallen through—one actually did—because the management company in question failed to provide the management pack in a timely fashion. That meant that during conveyancing they were unable to complete the sale and move to the dream property they had been looking forward to and needed to move to for their jobs.

I spoke to another constituent whose credit score was decimated when, after missing a payment by just a couple of weeks, their management company enacted some of its powers under the contract to go straight to the mortgage company, add the balance to the mortgage and extract the fee that way, with all the impact one would expect that to have on the homeowner’s credit score and sense of security.

[Alex Easton (North Down) (Ind)]

I congratulate the hon. Member on securing this debate. We have a situation in my constituency in Groomsport on a road called The Point. There is no management company for this road; it is actually owned by the local residents who live along it. However, it has been like a dirt track for decades. We are in a situation where we cannot get the Department for Infrastructure, which is the road service, to adopt this road, because the residents would have to pay hundreds of thousands of pounds to get the DFI to adopt it. Does there not need to be some sort of special dispensation for people caught in this type of trap that will enable the Government to adopt roads when they have been in such a situation for decades?

[Alistair Strathern]

Absolutely. The hon. Gentleman gives an example of the kind that I think will be familiar to all too many of us. Essentially, an unadopted part of our constituency—be that a road, or common ground within an estate—falls into this limbo state, where no one step ups to be accountable for it. Without action or some kind of central movement to compel some change in the future, more and more of the public realm will fall into exactly the kind of disrepair that he has just described, with all the disillusionment among people that comes with it.

The case for change is clear. We currently have a system that is not doing right by our homeowners on new estates. Indeed, all too often it falls far short of the ideals of security and prosperity that home ownership and new house building are meant to deliver. However, in the absence of any action, this situation is increasingly becoming the norm.

As I have said, the CMA estimates that over 80% of the estates built in recent years are now subject to fleecehold; that figure certainly sounds accurate for my patch and I suspect that it does for other hon. Members’ patches, too. If we do not act and make some changes in the future, there is a very real risk that a lot of the 1.5 million homes that we are so committed to building over this Parliament will also end up falling into the fleecehold stealth tax trap.

What can we do? There are several actions that I urge the Minister to ensure that the Government continue to push forward. It is very clear to me that we need to stop the existence of fleecehold estates at source. The CMA has powerful recommendations about how to do that, such as bringing forward minimum adoptable standards and mandatory adoption timeframes, which should ensure that we do not create more of this problem on new developments as we tackle the housing crisis that so urgently needs action.

I know that the Minister for Housing and Planning is committed to launching a consultation on this issue, and I urge him to move at real pace. We owe it to our constituents to listen to them about the issues they face and to ensure that in the future fewer of them have to suffer these problems. Acting on the CMA’s recommendations and speedily introducing legislation to bring them into effect will be a powerful tool to do that.

However, we cannot act only on behalf of new estates. We will all have constituents in existing fleecehold estates who will be very concerned that, without action, they will not only continue to face the very challenges that we have been talking about today but will also become, in effect, second-class homeowners. As unadopted estates become a thing of the past, those on legacy unadopted estates risk being at a very real disadvantage as that problem becomes more isolated and more siloed.

In the short term, there are definitely things that the Government can do to hold management companies to greater account. There is the potential to bring forward secondary legislation that would ensure we are better able to regulate the services that such companies provide, putting our householders and our constituents back in the driving seat and making them much more able to hold management companies to account if they do not provide a robust, transparent and timely service, as well as helping to drive down some of the rip-off fees that have been imposed and ensuring that they can access information in a timely and transparent fashion.

However, we know that for lots of these estates, that will not be enough. In the ten-minute rule Bill that I introduced a couple of months ago, I advanced the idea of a resident’s right to manage. It would enable residents on existing fleecehold estates to take back control, to step into the driving seat, to push out the management companies that have been ripping them off for far too long, and to be in a position where they are the controller of their estate’s future, and can commission the services they would like. Although that is not quite the council adoption that I know many residents long for in the longer term, such a powerful move would put residents back where they should have been all along—in control of their estate and of all of the public realm that they rely on to go about their day-to-day lives.

I also urge the Minister to work with the Local Government Association and local authorities across the country to consider what further measures can be taken to ensure that, over time, we put an end to all the unadopted estates that we are all currently having to advocate for as a result of this deeply inequitable situation. Far too many households are stuck in the fleecehold limbo trap. Although better regulation and a right to manage would be powerful steps forward and welcomed by many people, ultimately local authorities’ adoption of these estates will be the only answer that completely resolves all the challenges that we have talked about today.

I urge Ministers to move at speed in bringing forward the legislation needed to cut off the creation of new unadopted estates. I would also welcome Government action to hold management companies to account, including through better regulation of service charges and tighter requirements on the transparency with which managing agents must operate. I also support action on the right to manage, so that our residents and constituents on existing unadopted estates are back in the driving seat, where they desperately deserve to be. However, I recognise that we will need to continue the conversation to work towards a longer-term vision. We will need to work with local authorities, Ministers and our constituents to make sure that we finally have a pathway to adoption for existing unadopted estates, which have been neglected for far too long, as many hon. Members have said.

This Government are absolutely right to focus on the housing crisis, which is one of the biggest challenges facing the country, and I am very excited that they have such a big, bold vision for taking it on. They are not just building 1.5 million homes, but ensuring record investment in social and affordable housing, as well as much tighter regulation of key issues from solar panels to building regulations.

However, if we do not tackle the challenge of fleecehold and end the growing scandal of unadopted estates, we will still be setting up far too many of our constituents for a life of misery, a life of battling to get the bare minimum and a life of paying hundreds of pounds or more every year—money that other residents simply do not have to pay—because they happen to live on an unadopted estate. That cannot be right, and it is not a situation that I will tolerate for my constituents. I know that many other hon. Members will not tolerate it, either. I look forward to working with the Minister and this Government to make sure that we tackle it with the seriousness it deserves.