Property Development: Insolvency

(asked on 10th September 2025) - View Source

Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, whether he plans to review the processes for adoption of (a) roads and (b) common areas on estates where the developer has become insolvent.


Answered by
Matthew Pennycook Portrait
Matthew Pennycook
Minister of State (Housing, Communities and Local Government)
This question was answered on 19th September 2025

Decisions on whether or not to adopt roads is a matter for the relevant local highway authority.

Land may become ‘ownerless’ where a developer has become insolvent. The Law Commission announced on 4 September 2025 that they will undertake a project on ownerless land as part of their 14th Programme of Law Reform, which will aim to clarify the law in this area. As part of their 14th Programme, the Law Commission are also undertaking a project on the management of freehold housing estates. Details of both projects can be found on the Law Commission website here.

The government is determined to end the injustice of 'fleecehold' entirely and we will consult this year on options to reduce the prevalence of private estate management arrangements, which are the root cause of the problems experienced by many residential freeholders.

I otherwise refer the hon. Member to the Written Ministerial Statement made on 21 November 2024 (HCWS2440).

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