Estate Adoption: North-east England

Joe Morris Excerpts

Tuesday 15th October 2024 Westminster Hall

[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.

[Joe Morris (Hexham) (Lab)]

To pick up some of the points made by my hon. Friend about estate adoption, in particular in areas such as Medburn, Corbridge and Hexham in my constituency, residents contact me regularly, concerned about the state of their roads and the fact that we have unsafe compounds, often outside communal areas. In the rural communities that I represent, that can be particularly toxic, and it damages ongoing faith in the community and the community spirit itself. I hope the Minister can, in his response, elucidate a little the importance of adopting such estates, in particular the smaller settlements.

[Emma Foody]

I absolutely share the sentiments of my hon. Friend. I refer him to my earlier comments about how this is not just about building homes, but about building communities. To do that properly—the Labour Government have set out that they intend to do that—we need to be able to address the issue of unadopted estates.

The CMA report talked about common adoptable standards as one solution that would set out clearly the minimum standard that has to be met for a road to be adoptable. Where the standard is met, there should be mandatory adoption of amenities, with only a few limited exceptions. I would be grateful if the Minister responded to those suggestions in his reply.

Certainty could be provided to residents about the timescales within which the adoptable standards would be met. The Minister has talked about that previously. Such measures would give residents clarity and would enable developers to be held to account on timescales and delivery against them. The measures would strengthen the hand of residents and local authorities to hold developers accountable for putting in place the most basic infrastructure that residents ought to be able to expect. The measures would address the imbalance between developers and the rights of homeowners when it comes to adoption and delivery of infrastructure.

As my colleagues in the north-east and I have set out, residents should not be left for years on estates paying fees on top of council tax while there is unfinished infrastructure and a lack of any certainty of delivery long after the developer has left the site. People who have worked hard, saved and bought their own home deserve better than that. If we are to deliver the housing that this country needs and bring communities with us, addressing this issue and the timely delivery of appropriate infrastructure on estates is crucial to getting that buy-in. I know that this is something that the Minister will be working on, and I look forward to his response.