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It is true to say that when we first began, we knew what we did not want. Gradually it has become much clearer what we do want:

What we want for all new build estates:

1. Those with public open space to be constructed to adoption standards, inspected and adopted by the Local Authority compulsorily.
2. Those smaller developments which have no public open space to be constructed to adoption standards, independently inspected, and conveyed to the residents under common hold with a proper regulatory framework.
3. A ban on estate residents having to fund the maintenance of adjacent existing green space in perpetuity as part of planning agreements. If developers wish to “donate” these services instead of providing green open space on their site, then they should pay the local authority a commuted sum for maintenance.
4. Abolition of estate rent charges for residential property – retained for commercial property if necessary.

What to do about Existing Sub- standard estates?

Whilst we DO want to drive up estate quality and give future home owners a fair deal with true freehold, we DO NOT want a whole (very large) group of residents on existing estates being left on run down, expensively maintained estates with devalued properties. Whatever is done, must address the plight of current estate residents who are caught unwittingly in this trap.

The Law Commission is recommending Government look at enfranchisement (that is residents having the right to purchase the freehold of the estate and run it themselves), and whilst this sounds better than the existing arrangements, there are serious snags. The sub-standard construction leading to “un-remedied liabilities” being the biggest obstacle. We would also argue that most people want to enjoy their homes in peace and not have further, possibly onerous, responsibilities placed upon them and the risk of falling out over costs.

So we say it could be a two stage process. Enact enfranchisement, with peppercorn cost for the land and indemnities against defects. Require Local Authorities to adopt these estates at no cost to residents if they as the new land owner ask for the estate to be adopted.  Local Authorities can adopt sub-standard now, but are unlikely to do so unless compelled. If this seems unfair on Local Authorities, then do remember that they agreed to the current arrangements with the developers.

 

 

When we first started networking together 2 1/2 years ago, we knew what we didn’t want. That is to be unfairly exploited by being forced to pay inflated estate charges to either predatory private companies or inept housing associations. The deeper we dug, the more horrifying the story for ordinary home owners, who were nearly all totally uninformed of what they were buying in to.
Continue reading “Adoption Now!”

The future for many home owners on privately owned estates will find them under the hidden burden of what the government call “un-remedied liabilities”.

How come?

Developers are not offering estate land and amenities up for adoption, so are free to construct sub standard roads, paths, sewers and landscaping. This saves them a great deal of money.  Although there may be agreements about standards via local authority planning departments, the developers know cash strapped councils will not enforce them. We end up with estates constructed to a much lower standard than if they were going to be adopted.

After the builders move off, the land is handed over to their choice of managing agent. Are these agents taking steps to ensure the estate is constructed to a good standard, asking for guarantees or indemnity insurance?  We do not believe they are. Why should they, they want more future custom from the developers and they will not be footing the bill for remedial work, the home owners will.

We are already hearing of examples of estates where there have been additional large expenses for remedial work due to poor quality construction.

We believe that more questions should be asked about the handover process. There is a huge conflict of interest and lack of independent scrutiny. It is often the case that the managing agent is chosen by the developer before the first home is built – a rather cosy relationship set up before a Residents Management Company (if there is one) could have any say in the matter.

In the long run, this issue could well turn out to be the most important defect in the private estate model.