Estate Charges Exposed

Tuesday 17th June 2025

Today HorNets were represented by Halima Ali at the Ministry of Housing Communities and Local Government select committee examining regulation of property managers. Whilst they were looking at the whole area to include estate agents, landlords agents, leasehold managers and commonhold managers there was a strong focus on estate management, possibly because of the complete absence of regulation in this area.

Halima gave evidence concerning the lack of accountability and transparency but also the lack of choice of manager and the need for adoption of estates with public areas – the commonest scenario in our experience. She was able to quote from our data and from the experiences of our many supporters. She explained that the presence of an estate charge adversely affects saleability and resale value of a home burdened with an estate charge, and the concern HorNet has that a two tier system will develop if nothing is done for existing estates to get them adopted. She proposed that RTM could be a stepping stone towards adoption of existing privately managed estates.

Other panel members supported all she had to say and more about the need for adoption and also regulation “with teeth”. Such regulation would benefit leaseholders and other groups as well.

Lord Best admitted his report of 6 years ago didn’t really have anything specific about estate management, but that it should be included now.

The CMA representative outlined their recommendations to government again, regarding more adoption and better regulation. Councillor Carys Thomas urged mandatory adoption and building estates to adoption standards in any event – no more cutting corners to increase return on the site.

The committee members (made up of MPs) indicated they hear about the problems of privately managed estates frequently – it is clear the problems are well known and that the government needs to start examining solutions at speed.

We are delighted that the idea of estate charges being a separate and different issue from leasehold matters has finally made it into parliamentary thinking. We will continue to press for the changes needed to end private management of public estates, and for regulation and redress for truly private estates.

The hearing was in two parts and it is worth listening to both as the second part had a lot more about estate charges in many ways.

Audio only recording

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More Pressure on the Government to Act

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.


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Newsletter Feb 2025

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/


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