Residential Estate Management Companies Debate
Full Debate: Read Full DebateDepartment: Ministry of Housing, Communities and Local Government
Sarah Russell
Main Page: Sarah Russell (Labour - Congleton)Department Debates - View all Sarah Russell's debates with the Ministry of Housing, Communities and Local Government
(2 weeks, 1 day ago)
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Mrs Sarah Russell (Congleton) (Lab)
It is a pleasure to serve under your chairmanship, Mr Stuart. I thank the hon. Member for South Devon (Caroline Voaden) for securing this important debate.
My constituents are being treated as a cash cow. There are managing agents causing a problem across my entire constituency, and I have casework in Alsager, Congleton, Sandbach and Holmes Chapel. I do not have time to go into every one of those items, but the worst—the hon. Member for Honiton and Sidmouth (Richard Foord) referred to this—relates to insurance charges for terrorism. I am not flippant about terrorism, but retirement properties in Alsager are unlikely to be victims of it.
The retirement community in Alsager received a £14,000 bill for electricity in communal areas, where there were approximately three lights. Residents challenged that bill, which suddenly became £7,000, with no explanation as to why it had halved or why it had been £14,000 in the first place. They challenged it again, but they still do not have a proper breakdown as to why so few lights cost so much money—they simply cannot get that information. As others have mentioned, when people challenge bills, they get charged again and again.
There is an absolute lack of transparency about these organisations and about transactions, including where insurance is being bought from connected parties. There is a real question about whether corporate governance as it stands is fundamentally capable of addressing some of these issues.
I absolutely second the calls by my hon. Friend the Member for Mid Cheshire (Andrew Cooper) for the adoption of section 42 of the Flood and Water Management Act 2010, the creation of an equivalent for roads, and the requirement for play areas and public areas to be adopted by local authorities.
I am worried that the charges my constituents see are just the beginning and that, as their estates age, those charges are likely to become significantly larger, particularly in unadopted areas. Will the Minister please confirm what we can do about these many issues?