Welsh Government urged to tackle ‘fleecehold’ costs
The Senedd will this week debate calls for action on rising housing estate management charges, often described by campaigners as ‘fleecehold’.
The Petitions Committee has warned that residents on new estates are increasingly being asked to pay private companies for the upkeep of roads, green spaces and amenities, with few rights to challenge the cost or quality of work.
In the past, local authorities would normally adopt new estates and take responsibility for maintenance. However, the Competition and Markets Authority (CMA) has found that fewer are being adopted, leaving more homeowners facing annual charges that range from £50 to £500.
The Committee heard evidence from Dr Hefin David MS, who described the lack of regulation of estate management companies as “a wild west”. Concerns were raised that some residents are effectively paying twice, through their estate charges and council tax.
Some measures to improve transparency were included in the Leasehold and Freehold Reform Act 2024, giving freeholders the right to challenge unreasonable fees through the Leasehold Valuation Tribunal. However, most changes have not yet been implemented, and campaigners say problems remain.
In November 2024, the UK Government said it was “determined to end the injustice of ‘fleecehold’ entirely” and would consult on new protections for homeowners during 2025.
Responding to the Petitions Committee, the Welsh Government said it would continue to work with the UK Government on implementing the 2024 Act and consider whether separate Welsh legislation is needed.
The CMA has also recommended measures to improve the consistency of estate adoption and argued for mandatory adoption of public amenities by councils.
In her response to the CMA in July 2024, Julie James MS, then Cabinet Secretary for Housing, Local Government and Planning, said: “My ambition remains that local authorities should adopt public amenities. I do not agree that this should be a mandatory requirement.”
The Welsh Government has accepted the Committee’s recommendation in principle to develop a more standardised approach, but rejected calls to provide financial support to councils to adopt existing estates, citing pressures on funding.
The Senedd debate will take place on Wednesday 17 September
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