Residential Estate Management Companies Debate
Full Debate: Read Full DebateDepartment: Ministry of Housing, Communities and Local Government
Alistair Strathern
Main Page: Alistair Strathern (Labour - Hitchin)Department Debates - View all Alistair Strathern's debates with the Ministry of Housing, Communities and Local Government
Residential Estate Management Companies
Alistair Strathern Excerpts(2 weeks ago)
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Alistair Strathern (Hitchin) (Lab)
It is a pleasure to serve under your chairship, Mr Stuart. Issues with leasehold, fleecehold and management companies might seem quite parochial, but they are actually quite pernicious and affect an ever-growing number of homeowners across the country. As the CMA pointed out, with over 80% of new developments now subject to fleecehold, it is increasingly the default model for housing delivery. That means that thousands of new homeowners across the country are on the hook for what is effectively a stealth tax, trapped paying a management company for a service—or the lack of a service—that a council would normally provide.
Alongside that, the agency that home ownership is meant to deliver is being undercut. Residents are often hit by punitive mortgage charges by overly penal management companies, and their home sales can fall through as a result of companies not providing paperwork quickly and efficiently. If we are going to live up to our ambition to deliver on the aspiration of home ownership for many more households across the country, we clearly have to tackle fleecehold, which is why I was so pleased to see the commitment in the Labour manifesto to do that.
What do we do? We know that switching on some of the regulatory provisions in the Leasehold and Freehold Reform Act from the last Parliament will have some benefits for these homeowners, but we need to go much further. My ten-minute rule Bill, which was introduced before the recess, set out some important measures on the right to manage and on common adoptable standards, as well as on mandatory adoptions. I think that those will go a long way towards starting to tackle this issue at source for future households.
We need to think about what more we can do to support those homes that are already being impacted. We also need to think about what more we can do in the interim to prevent more unadopted estates from becoming the norm before we can act. I was pleased to join over 50 colleagues in writing to a number of large developers to challenge them on what more they can do with local authorities to prevent unadopted estates from becoming the norm. I would welcome the Minister’s reflections on what more we can do in the meantime to move on that ambition.