This Sunday Times Article from 24th February 2019 exposes just how expensive the private managed estate model is, no matter who collects the “tax”. A large “new town” development in Devon with a high proportion of affordable housing caused such concern for the local town council about non-payment (or non affordability?) of the estate fees that it took over the rent charge and manages it via a very large precept on the council tax – around £370 per year!
Although this scenario is unusual in our experience as most new build developments have either a private company or a housing association managing them, we do feel it highlights the need for developments to be constructed to adoption standards and adopted by the council in the very beginning. This avoids sub standard construction which is expensive to keep up, gives the council an advance from the developers for the first 10-20 years maintenance and gets rid of a huge volume of unnecessary legal expenses and delays due to the involvement of a management company with every single home when it is bought, sold or remortgaged.