Unadopted Estates and Roads

Jim Dickson Excerpts

Tuesday 24th June 2025 Westminster Hall

[Alistair Strathern]

Absolutely. The certainty and fairness my hon. Friend calls for is the bare minimum we should expect for our constituents and the bare minimum that families should have when moving into a new property, often one they have saved up for over a long time to take that big, exciting step. I know his constituents will be all the better for the work he has done to champion that, but it should not fall to him and other hon. Members to fight for this. It should be a matter of course for new developments.

That inequity I was talking about is a real challenge. Not only is it unfair that lots of our constituents are having to pay hundreds of pounds—and often much more than that—each year for services that others receive as standard, but the very nature of fleecehold is designed to structurally inflate some of those costs. Those management companies are very rarely accountable to the actual residents of these new estates that they in theory provide services for. As a result, there is no incentive for them to keep costs low; I have had examples of people having to pay more than £250 per household just to fix a single lightbulb on the estate. Constituents are individually on the hook for thousands of pounds across the estate as a result of road challenges, and there are many more examples of no real pressure or accountability for the costs residents have to pay.

Alongside that, the complicated legal nature of those structures, the professional fees involved, and the fact that certain estates can be subdivided into tiny blocks or pockets of five homes—each of which has to have its own management company and therefore has to pay for all those professional services over and over again—mean that a large chunk of those fees often does not go towards any service at all. It simply covers professional fees, auditing costs, and wider costs associated with a structure that is by its very essence deeply inefficient and not set up to provide a service to the residents who rely on it.

[Jim Dickson (Dartford) (Lab)]

I congratulate my hon. Friend on securing this debate, and thank him for his powerful speech about the iniquity of the current situation. From talking to residents of Ebbsfleet Garden City in my constituency, I know there is growing frustration because they are paying council tax to management companies as well as service charges, with very little clarity, as he says, about what are often very high fees. Does he agree that we need clearer guidelines on timescales and standards for roads and communal areas to be adopted by local authorities, so that residents in places such as Ebbsfleet and other communities mentioned can have certainty about what they are paying for and to whom?

[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.