HorNet – Stop the Rot! Adopt the Lot!

Human Rights only for the rich and powerful?

HorNet has recently supported a bid to become an intervener in the case of big freehold interests suing the government over key measures in the Leasehold and Freehold Reform Act 2024, which they claim are infringing upon their human rights and causing them financial losses. We believe this to be a cynical attempt to block reform by wealthy property owners.

Several groups led by grassroots campaign Free Leaseholders secured pro bono legal help and petitioned the court to intervene in the case in support of the government. These groups represent people who would be directly affected by the outcome of this case unlike the government who are supposed to represent us. The other groups were SHAC, the Federation of Private Residents’ Associations, and the Brighton Hove and District Leaseholders Association.

Our short submission statement was : –

“We are proud to support this initiative by Free Leaseholders. While our campaign is focused on privately managed unadopted estates, our supporters will suffer if the freeholders in this case win their claim. Our aim is abolition of this model which would threaten the income stream of investors and managing agents who could then bring an action on similar grounds if a precedent is set.

We have discovered that these estates are becoming a new asset class – ‘son of leasehold’ – to be traded like any other commodity. A significant number of homeowners are trapped into a monopoly management provider because they are embedded in the transfer deeds. Often it is the same managing agents which exploit leaseholders that equally fleece estate residents via unregulated estate charges. We do have a strong interest in the outcome of this case.”

At its case management hearing on Friday 23rd May the court rejected the application on grounds that the government represented our interests and also for some reason they didn’t approve of us having free legal representation! To add to the courtroom drama, Michael Gove, now Lord Gove, the previous secretary of state, threw his weight behind the Free Leaseholders’ coalition intervener application with the offer of a written witness statement, something also rejected by the court. We will publish the hearing transcript when it becomes available.

It is typical of the rich to use any technical legal loophole they can to continue to exploit ordinary folk, and this case seems to fit that bill. It is before the courts now as a judicial review to see if there is a case to answer. The full judicial review will be held in July. The government will have to use taxpayers money to defend this frivolous and vexatious complaint from the freehold owners. Let’s hope common sense prevails here. On what planet do corporations have HUMAN rights? And what about leaseholders human rights? Their right to property ownership has been denied by the leasehold system.

Surely human rights over property apply to individual human beings, not corporations/companies – it is a human right, not a corporate one in our view. These arrogant organisations treat ordinary people with such contempt – we are not so stupid we can’t see what you are up to, and we will continue to resist! We have lost this battle but our fight is far from over. Together as grassroots campaigns, we have shown we are a formidable force.

Harry Scoffin of Free Leaseholders was interviewed by LBC after the verdict.

On Tuesday 4h March Alistair Strathern MP introduced his Ten Minute rule bill on Housing Estates. A well informed and articulated speech which we strongly support. We thanks him for securing the time for this and note again cross party support for the bill, which will have a second reading in July. You can read the text in Hansard here or watch the video from parliament tv below:

Although ten minute rule bills (private members bills) do not usually make it into law, they are a great way to put pressure on the government and keep the issue alive.

Simply put, his bill proposes a right to manage for estate dwellers to obtain more accountability with the ability to hire and fire management agents, minimum standards for construction and timescales for adoption.

Here is the text version

The State of HorNet Affairs in Spring 2025

Call to Action!

We have many requests to know our current position, so where are we now?

After 9 years campaigning we are now at a stage we couldn’t have envisaged at the start.

We have learned so much from each other:-

• The huge variation between estates, and it’s not just a freehold problem
• That its not only the unjustified charges but the loss in value of the homes long term
• The unfairness of residents paying for the upkeep of Public Open Spaces
• The low standards of construction
• That lack of adoption is the underlying problem – backed up by the CMA’s findings

Our supporters have tirelessly written to their MPs and the CMA. They have engaged with government consultations and formed residents groups. Many have taken over their estates for self management and a supporter has produced a very useful guide/howto on this.

As a result we have in the Leasehold and Freehold reform Act 2024 (LAFRA) from the last government a framework for regulation and redress around private estate management in England and Wales. The framework has yet to be populated by secondary legislation with detailed rules, and this will be the subject of consultation in the summer.

We had all thought that the measures in the LAFRA to remove the disproportionate remedies for non payment of a rent charge were to be applied to estate rent charges – we had submitted plenty of evidence about this being used to bully people and mortgage lenders into paying unreasonable charges, but somehow (accidentally on purpose??) estate rent charges were excluded. We are lobbying hard for this to be rectified.

Currently this means is that although policies have changed and will probably change further to implement more adoption as recommended by the CMA, residents are still in the same position as before and becoming increasingly frustrated.

The government will also be doing a consultation on adoption in the summer and the department are talking to us. They are keen to hear from other residents to understand how the imposition of estate charges and the lack of adoption has impacted their lives. This would be in the form of a video conference round table discussion which they may then share with ministers. We suspect this approach has a good deal more effect than piles of emails which are dealt with by civil servants.

Please email us at hornets@homeownersrights.net if you would like to join in. We are not sure yet exactly when it will be but if you can contact us to agree in principle that would be great.

The other thing the department want to hear about in a separate discussion would be any experiences of residents taking over and getting their estate adopted, whether it be parish, town or district. They are very well aware of avoiding a two tier system leaving existing estates behind whilst new ones may be adopted and are investigating what might work towards universal adoption.

Let’s not lose the will to live now they are listening! Two more consultations and some direct access are on offer – we need to engage with this if things are going to change for the better!

We have fought long and hard for the opportunity to be heard by government and now we have the chance. This one off opportunity is unlikely to happen again. If you can’t engage with the round table discussion, or haven’t any experience of adoption from private management, then please don’t let consultation fatigue stop you in the summer. We will keep you posted and provide guidance when the consultations are announced.

Actions now

1) Round table video discussion – not just escalating fees and unaccountable managing agents but other aspects like selling/remortgaging DoVs, delays, loss of purchasers etc. Land management difficulties – are residents qualified? Should they have to take this on? Fundamental unfairness of this model, poor quality infrastructure.

2) Any one who has been involved with trying to get their estate adopted? Successful or not although the dept are particularly keen to hear of successes and how these were achieved – what were the obstacles and how were they overcome?

Action Later in the year

Consultation on Adoption

Consultation on the detail of the LAFRA regulations.

We are informed they will be in the order above. Limited resources mean only one can be done at a time. Could be done the other way round – let us know if you have strong feelings either way.

Contact us at hornets@homeownersrights.net

or via our contact form at https://www.homeownersrights.net/contact/