Responsibilities of Housing Developers

Bayo Alaba Excerpts

Wednesday 11th December 2024 Westminster Hall

[Mr Bayo Alaba (Southend East and Rochford) (Lab)]

It is an honour to speak under your chairmanship, Mr Pritchard. I thank the hon. Member for Keighley and Ilkley (Robbie Moore) for securing this much-needed debate, and I will try to avoid party politics, because I do not really think this is about that. Although it is less often said, I see a responsibility that housing developers ought to fulfil post construction: the appointment of reliable management companies to ensure the upkeep of estates. One of the reasons why I am here today is to talk about that.

Developers should ensure a smooth transition to reliable and reputable management companies but, as I am sure hon. Members know from their casework, that job is often not completed. Unfortunately, for a number of my constituents in Rochford, some housing developers have failed to do their due diligence and appoint reliable and accessible management companies. For example, residents in the Elizabeth Gardens estate on Hall road in Rochford are being forced to pay a lump sum in excess of £300 in annual service fees. They are asked to pay that in one go, rather than in instalments, which is one example of how inflexible some management companies can be with new residents who move into certain communities.

As I am sure we have all heard before, grass is not being cut, areas are not being maintained and fees are unaccounted for, and the list goes on. Thus far, residents have not been offered the opportunity to pay in monthly instalments, which goes to show that again they are not necessarily being listened to. Although the service is supposed to be for them, as the hon. Member for Chichester (Jess Brown-Fuller) said, they are not really part of the decision-making process. That is a real source of frustration, and residents would not mind so much if they were getting the services they were promised. Does the Minister agree that it is important that housing developers take responsibility and appoint reliable, reasonable management companies?

Another key issue that I am keen to raise is the over-zealous housing developers who maintain a financial interest in the properties to the detriment of residents. A housing developer in my constituency is maintaining their financial interest by imposing an annual fixed rent charge of £1. That may sound insignificant to many people, but some mortgage lenders are reluctant to lend on the said properties due to such technical financial interest. That prevents young families looking to either remortgage or move out of their property from doing so. Residents can request a deed of variation, which is one way in which they can come out of that situation, but the fees for those deeds are £1,200, so it is prohibitive. This is about being responsible and reasonable with residents’ money.

I thank the hon. Member for Keighley and Ilkley again for securing the debate. I look forward to hearing the Minister’s comments.