Residential Estate Management Companies
Debate between Caroline Voaden and Max Wilkinson(3 days, 7 hours ago)
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Max Wilkinson (Cheltenham) (LD)
It is the same experience for residents, is it not? When MPs ask questions of FirstPort, we do not get any replies. People turn up, smile and say nice words—soothing things—but nothing happens. The residents get the same thing. That includes a 94-year-old woman whose daughter contacted me to say that she was refused a request to install a stairlift and she cannot sell the property, because the management fees that FirstPort charges are so high, so she is effectively trapped, unable to get up and down the stairs. Is that not a disgrace and does it not go to show that FirstPort just doesn’t give a damn?
Caroline Voaden
I agree that it is an absolute disgrace. We must have some kind of legislation to bring these companies to book.
In the UK, we have a rather strange situation whereby a new housing estate is built, but the council may not adopt the new area, so the builder has responsibility for roads, green spaces and communal areas and then passes that on to a third-party management company. Residents end up paying council tax on the one hand and estate management fees on the other. These charges can increase at any time, with no accountability or redress.
The Competition and Markets Authority has recommended ending the private estates model, which has been used for 40% of all new builds across Britain in the last five years, and potentially more, as the hon. Member for Warwick and Leamington (Matt Western) said. The CMA has recommended mandatory adoption by local councils of public amenities on new housing estates. Even when roads are accessible to the general public and green spaces can be enjoyed or used by anyone, residents can end up being responsible for their upkeep through service charges. The tenants of such developments pay both council tax and an estate management charge, yet they often receive a far worse service than those who live in adopted developments and are subject only to council tax, so I urge the Minister to consider ending the practice of shared ownership of public spaces for the vast majority of new developments. I would like to see a presumption that the shared areas around new developments are almost always adopted by the local authority where the development is standard in nature.
Ahead of this debate, I asked the House of Commons Library to engage with people who had signed relevant petitions. More than 1,100 people responded, one third of whom were freeholders. Ninety-four per cent said they were unhappy or very unhappy with the services provided by their management company; 94% said the service charges were unfair; and 94% said the transparency of what the service charges were for was completely inadequate.