Author: admin

This really long post is well worth a read. It has been taken from our FaceBook group with the author’s permission.

It is both a personal journey of discovery and very informative for those new to the estate rent charge:

Some new-build estates (or newly built) will have ‘estate rentcharges’, some won’t. In my area (North East) every single new-build developer is doing them, and have been for the best part of 10+ years now.

It’s a case of something which used to have some small value in society, but now has been exploited and bastardised as a ‘legal loophole’. Traditional ‘rentcharges’, or ‘chief rents’, used to apply to some buildings (e.g. terraced houses), but they were very small, nominal charges, mostly very affordable. You could also ‘redeem’ them (get rid of them once and for all for your property) by paying a larger fee, agreed between you and the ‘rentowner’. Traditional ‘rentcharges’ were essentially banned in 1977 (Rentcharges Act 1977), and all traditional ‘rentcharges’ have to end by approx. 2035.

BUT, in 1977 they didn’t ban a different type of rentcharge called an ‘estate rentcharge’. Most of these new-build or newish houses, whether leasehold or freehold, are essentially classed as houses on a private estate, e.g. with the ‘freehold’ houses (or ‘fleecehold’) you own the house, you own the land the house is built upon, but you are still liable to pay an annual rent to the ‘rentowner’ for your house being built on a private estate, come what may.
Continue reading “A Rent Charge Victim’s View”

HorNet have been in discussions with We Own It – a campaign group against privatisation of what they believe should be publicly owned and run. Their campaign is across the board, but does include parks and public green spaces. They have been made aware of the back door privatisation of public open spaces on private new build estates and are supportive of our campaign. Visit their parks page to see how they are promoting our work.

You might care to look around their site – we suspect many HorNets will be sympathetic to their general aims and would like to give them support.

Working together where our aims align will make us both more successful!

HorNet members tirelessly take every opportunity to influence government policy. Here is a submission by a member on our behalf to the consultation on developer contributions: Page one

What this is saying is that there should be a drastic rethink in the way that local infrastructure provision is funded. In no other country are residential house builders expected to provide this, and the result of doing so is to reduce the quality and value for money of the houses and the of estates themselves. The builders are commercial enterprises so in order to maintain their profit margin, they skimp on overpriced homes and do not offer up estate land for adoption. They also are less willing to provide their quota of affordable homes as they are already stumping up millions for roads, schools and community facilities.

What has this got to do with estate charges?  Well, the open spaces on new build estates required by the Town and Country planning act are public areas for the benefit of the whole local community. These areas are being “provided” via section 106 agreements in the same way as other infrastructure. However ownership remains in private hands, and long term maintenance is not funded by the whole community, just the home owners on the estate. Government has sat by whilst this model has grown and done nothing to protect home owners interests. Although there is talk of estate service charge disputes  being heard by the First Tier Lands Tribunal, this has not been enacted. It is HorNet’s view that it would not be of much practical help due to the cost and stress involved in taking a case to court. The current court fee is £400, roughly equivalent to a years charges, and that’s just to get started!  If there is to be a redress scheme, it needs to be affordable and accessible to the lay person. This is something we shall be saying in response to another consultation on improving redress in housing, and the more of us who fill it in the louder our voice will be, so here is the link https://www.gov.uk/government/consultations/strengthening-consumer-redress-in-housing

Please take the time to fill it in. You need only do the parts you feel are relevant, or if it is easier, just write an email to the address on the page.