Regulation is needed to stop homeowners across Wales being burdened by “unfair and unclear” maintenance fees imposed by private estate management companies, a Senedd Committee says.
A report by the Senedd’s Petitions Committee sheds light on what it calls “a new but growing problem”, and urges the Welsh Government to adopt stronger regulatory measures to protect residents.
Nicknamed ‘fleecehold’, residents of new housing estates are required to pay annual fees for the maintenance of communal areas and services, including parks, roads, verges, drainage and green spaces, in addition to their full council tax payments.
Fees, ranging from £50 to £500, are unregulated and can place an unreasonable financial burden on residents, the Committee says. They often lack transparency, leaving homeowners without a detailed breakdown of costs, it added.
The Committee is calling on the Welsh Government to standardise the management of new housing developments to uphold common standards and expectations. It should also develop a register to show who is responsible for managing each asset on the estate, avoiding confusion and giving homeowners greater power to challenge poor services, says the Committee.
It also recommends that the Welsh Government take inspiration from Scotland’s Property Factors Act on how to improve standards and transparency in estate management in Wales.
Carolyn Thomas MS, Chair of the Senedd’s Petitions Committee, said:
“The evidence heard in this short inquiry makes the case for stronger regulation of management companies, to stop a relatively new problem from continuing to grow. The lack of regulation has been described as ‘the wild west', but there is good and bad practice out there, and ways to make the system fairer.
“Homeowners deserve transparency and fairness. We call on the Welsh Government to act swiftly to bring in the necessary changes to the law for future home owners, and to look at what can be done to resolve long-standing issues for current residents.”
