Construction Standards: New Build Homes

Andrew Cooper Excerpts

Tuesday 25th March 2025 Westminster Hall

[Andrew Cooper (Mid Cheshire) (Lab)]

It is a pleasure to serve under your chairmanship, Ms Jardine. I congratulate my hon. Friend the Member for Sherwood Forest (Michelle Welsh) on securing this debate. As my hon. Friend the Member for Congleton (Mrs Russell) has previewed, I will focus my comments on the collapse of Stewart Milne Homes North West, and the lasting consequences it has had for many families across my constituency and no doubt the wider north-west region.

Stewart Milne Homes went into administration in January last year, leaving several housing developments half-built, although the three in my constituency had been completed for some years. Nevertheless, homeowners have been left burdened with a potential financial nightmare, as streets and sewers were never properly adopted by the local highways authority or the water company. That has created a situation where residents, who have every right to expect a functioning, safe environment, are instead left with a looming threat of significant costs. The reason for the predicament is simple: there was either no bonded section 38 agreement in place with the local council, or no bonded section 104 agreement with the water company for the adoption of sewers—or, in some cases, neither—despite residents having deeds, on completion of their sale, showing that the estate would be adopted.

I can only speak with direct knowledge of my own constituency, but I am aware, through research undertaken by my team and through conversations with the local authority and with United Utilities, that that is far from a unique situation, leading one to wonder whether Stewart Milne either acted negligently, or actively mis-sold properties on the basis that their roads and sewers would be publicly maintained. My hon. Friend the Member for Congleton makes a reasonable point about director’s duties in that circumstance.

Without those legal agreements, there is no guarantee that local authorities or utility companies will take responsibility for maintaining those essential services. As a result, the burden of making these streets and sewers adoptable—essentially bringing them up to standard—is being shifted directly on to the homeowners. Families who have already invested in their homes, often using their lifelong savings, are now facing huge, unexpected bills.

That is a situation that residents in one development in Middlewich are currently facing. Despite the estate having been practically complete for a decade, the lack of an appropriate agreement means that the sewers on the development have not yet been adopted by United Utilities. Initial estimates from the inspections to date suggest that costs for the required remedial works could run into thousands. Costs are therefore liable to fall on residents. These homeowners are being forced to pay for poor planning, poor practices and poor execution, through no fault of their own.

We cannot and must not allow this situation to continue unchecked. There is a fundamental need for greater oversight and accountability in the house building sector. The mistakes of Stewart Milne should not become the burden of individuals affected by them, and the gaps in regulation that allowed that to happen must be addressed so that no homeowner is ever left in this position again. We need clearer, stronger regulations on the adoption of streets and sewers. Developers must be held accountable for ensuring that all necessary agreements are in place before any properties are occupied, not after the damage is done. On the utility side, that can be done very easily by implementing section 42 of the Flood and Water Management Act, but I would argue that an equivalent is needed for highways.

The financial cost of completing unfinished works should not fall on the shoulders of families who are innocent victims in this situation. In addition, there must be better protection for homeowners in the event of a developer’s failure. We cannot allow this pattern of abandonment and negligence to continue, with large companies walking away without facing the consequences and residents being left with the fallout. We must ensure that this situation is rectified and that no more homeowners are left to bear the burden of a developer’s failure.