Housing targets in many places across the South East have seen rapid housebuilding in the past few years. Accompanying the rise of new build estates and the want for green spaces within these areas, has been the increase in management fees or service charges to freeholders on private estates. These are fees levied by a management company on behalf of the developer to pay for upkeep of things like communal leisure areas or the front of properties, to ensure that areas are well-maintained.
However, to date there has been little regulation in this area, with some home-owners seeing significant rises in these fees year on year.
A new bill - the Leasehold and Freehold Reform Bill 2023-24, introduced to the House of Commons in November 2023 - intends to make provisions for freeholders to challenge these charges. This will include if charges are felt to be unreasonable or not reflective of works needed to be carried out, as well as an ability to challenge the actual standard of the works being completed.
In addition, the creation of a New Homes Ombudsman has also provided an avenue to seek redress if issues remain unresolved - although at the moment these will just look at issues within two years of a property being built. More information about the Ombudsman click here: https://www.nhos.org.uk/media/3elncnad/what-is-the-new-homes-ombudsman-…;
Personally, I am concerned that any legislation ensures that management companies are contactable and responsive. Too often when dealing with issues as a Cllr myself, or listening to residents report concerns, I heard that the management company does not reply to emails or contacts. This delays finding resolution and adds to frustrations.
If you have been impacted by these fees or are interested in finding out more information on the new legislation, there is a detailed overview here:
https://commonslibrary.parliament.uk/freeholders-estate-and-service-cha…
As always, I would love to know your thoughts and experiences.