Welsh Government urged to introduce new rules to protect homeowners
A Senedd report says some homeowners are paying hundreds of pounds a year for services already covered by council tax.
The Welsh Government is being urged to introduce new rules to protect homeowners from unregulated maintenance charges on new housing estates.
A report from the Senedd’s Petitions Committee highlights growing concerns around “fleecehold” arrangements, where residents are required to pay annual fees for the upkeep of communal areas such as roads, parks, drainage and green spaces- on top of their regular council tax.
These fees, which can range from £50 to £500 a year, are often imposed by private estate management companies. However, the charges are unregulated, frequently lack transparency, and can leave homeowners with little or no information about how their money is being spent- according to the committee.
The Committee has described the situation as a “wild west” and is calling on the Welsh Government to introduce clear regulations to standardise how these estates are managed.
Among the recommendations is the creation of a national register to identify who is responsible for maintaining different parts of a housing estate. It’s hoped this would reduce confusion for residents and give them greater power to challenge poor or overpriced services.
The report also suggests that Wales should consider adopting elements of Scotland’s Property Factors Act, which sets out legal responsibilities for property managers and requires them to be registered.
The Committee says the rise in “fleecehold” cases is a new but growing issue, and action is needed to ensure fairness and accountability for residents across Wales.
Carolyn Thomas MS, Chair of the Senedd’s Petitions Committee says:
“The evidence heard in this short inquiry makes the case for stronger regulation of management companies, to stop a relatively new problem from continuing to grow. The lack of regulation has been described as “the wild west”, but there is good and bad practice out there, and ways to make the system fairer.
“Homeowners deserve transparency and fairness. We call on the Welsh Government to act swiftly to bring in the necessary changes to the law for future home owners, and to look at what can be done to resolve long-standing issues for current residents."
The Welsh Government says: “We thank the committee for its report and will consider its recommendations carefully.”