HorNet – Stop the Rot! Adopt the Lot!

Exciting news!

On November 14th Helen Goodman MP (Bishop Auckland) will table a 10 minute rule bill in parliament calling for:

• Measures to regulate the fees charged to homeowners by management companies
• Measures to ensure shared facilities are of an adequate standard
• Provision for the self-management of communal areas by residents, should they wish.

This is a major step forward in raising awareness of the issue in parliament, and we hope more generally as well.

It is not expected that a ten minute rule bill will be enacted, but it can do much to lay the foundation for government action, as Justin Madders successfully did with his bill around doubling ground rent leasehold issues.

The more support the bill has from MPs the more likely further action will arise. We urge all HorNets to email/write to their MP asking them to support the bill. Helen Goodman has provided a letter template, which you can use or customise if you wish.

Letter Template Estate Charges

HorNet are not too concerned that the title of the bill refers to freehold homes, we expect that any future legislation will cover estate charges for all tenures, and in all circumstances, not just new build estates. We will continue to promote the message that estate charges on peoples homes are the problem and fight for their abolition.

The Select Committee looking into Leasehold Reform has accepted our evidence about onerous estate charges and has now published it here: Written Evidence to Select Committee

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.