Estate Adoption: North-east England

Chris McDonald Excerpts

Tuesday 15th October 2024 Westminster Hall

[Emma Foody]

I thank my hon. Friend for raising those issues. I know it is something that is raised with all Northumberland MPs, and I agree that we need to look at all mechanisms to ensure that estates are at an adoptable standard.

In my constituency, Dan from West Meadows, another estate, shared his worries that local football pitches would never be brought up to the standard that has been promised. Mark, who lives in Backworth View, told me how the street lighting on his road has never been switched on in the five years he has lived there, yet he is paying full council tax and management fees. Many residents express frustration that they are paying both estate management fees and council tax, yet, because the estate is unadopted, they have poorer quality infrastructure, despite paying more.

Local authorities often feel the brunt of complaints from residents, but they hold little power to compel developers to bring private unadopted estates to the standards required for them to be adopted. Local authorities should not be footing the bill for delays and lack of delivery from private house builders. Too often, local authorities are hamstrung. The developers have long since left the site, so local authorities are left fielding complaints from residents, despite having little power to compel action. A chief planning officer at a local authority told me that the current system is skewed towards developers. They pick their own contractors, timeframes and materials, which are often not up to the standard for a council to be able to adopt their work, yet it is the local authority that is left with understandably frustrated residents long after the developer has gone.

[Chris McDonald (Stockton North) (Lab)]

I have also seen problems holding developers to account in my constituency of Stockton North, where we have estates such as Willow Sage Court, Wynyard and Queensgate, which have unfinished roads, a lack of facilities and high maintenance charges. The Competition and Markets Authority said in a report earlier this year that there was an increasing trend for this type of estate, and it recommended a set of national standards. Does my hon. Friend agree that we should have a national framework of standards for private developers, as well as sanctions for developers that do not deliver?

[Emma Foody]

I thank my hon. Friend for that contribution; it is as if he has seen the next part of my speech as I am going to reference the CMA, so I will progress and touch on the issues he raised.

I have mentioned the homeowners, the local authorities and the developers, but there is another third party that has an important role: the utilities and the broadband companies that have to deliver the infrastructure as well. In Earsdon View, residents remain on an unadopted estate, as the developer and the water company have been unable to resolve adoption. A resident on the estate, Jim, feels that the water company and the developer have passed the buck, and nothing has been done on the issue. As he put it, residents are left with “stalemate”.

Often, it is the relationships between developers and utilities companies that hold back the full adoption of water mains and other utilities. The knock-on consequence is that roads are left open and untarmacked while the disputes are ongoing. While such issues between developers, third parties and local authorities are haggled over, residents are left to pick up the cost through estate management fees. That fee is meant to support a contractor while they carry out work on the estate, but residents have shared their experiences of being left unsatisfied by the system of estate management fees, which are often unpredictable, opaque and confusing. Many argue that they are being ripped off, with fees that can increase by unlimited and unspecified amounts each year. Residents such as Oliver fear that if fees continue to go up and they were unable to meet them they would be unable to sell their property.

The CMA report earlier this year says that one of the things that creates the most distress for homeowners on such estates is the disproportionate response time taken by management companies, as well as their response when homeowners are unable to pay. Homeowners have had their property seized because they cannot meet the costs levied by estate management companies, yet residents are left powerless to challenge the unfinished state and poor quality of their estate. People echo earlier remarks that the existing system is skewed towards developers, with little access to justice for residents. I am glad that the Labour Government have already pledged to end the leasehold system. A developer that has not met its promises to homeowners should not be able to profiteer in relation to those same homeowners.

I am proud that this Government are taking the necessary steps to solve our housing crisis. We have a complete shortage of housing of all types. This Labour Government are being bold, with a target of 1.5 million homes during the Parliament; reform of leaseholds to end exorbitant ongoing costs for residents to live in their own homes and of the existing leasehold system; the end of section 21; and reform of the rental market. The Government have said they intend to introduce legislation to deal with the commonhold and leasehold issues that are still prevalent in today’s housing market, fixing the system—adoption should be part of that.