Here’s a short presentation which brings together the major issues we have found from talking to home buyers and residents about estate charges over the last 8 years.
What’s the Problem?
CMA needs dentures?
Let them know what you think!
The CMA have been investigating some of the big builders for cartel like activity around prices, incentives and anticompetitive sharing of information. They have announced that they plan to accept £100M funding towards the delivery of “affordable” housing and a promise to behave in future although of course they have done nothing wrong!
Suppose the promises are kept – how far does £100M go? 400 homes across the UK? A drop in the ocean and a small price for each builder to pay as they are clubbing together towards this effective “fine” – a small slap on the wrist in our view. One CEO’s bonus worth?
We are disappointed but not surprised that this government quango has bought into the prevailing ideology that these big corporations are needed for housing delivery, in spite of recommending less reliance on them in their own report. Subscribing to this flawed logic leads to appeasement and an outcome which is not going to offer anything to those consumers who have suffered detriment from these practices, which include miss selling of estate charges.
We say “get some teeth – break them up and compensate consumers”
There is an opportunity for us to say what we think of this proposal – it isn’t a structured consultation with set questions, and is by email with the subject “Case 51392 – Response to housebuilders proposed commitments” to housebuilders-consultation@cma.gov.uk
We would suggest you include:-
- That you are a house buyer affected by these practices
- You don’t trust that the developers will stick to their promises, they are only concerned about reputation where it may affect profitability
- The suggested sum is a tiny amount for that industry – a CEO’s retirement bonus.
- Most importantly how does the settlement help the market become less dominated by large speculative house builders as recommended in their own report of 2024?
- And how does it compensate for the inflated prices due to lack of competition?
- What is the definition of affordable housing? We think this term is too vague.
- We do not agree that £100M is a substantial sum. The estimated £8 billion extra profit from price fixing is! This estimate was calculated from UK stats on new build completions for the 10 year to end of 2024 which is just over 2 million. CMA’s study suggests large housebuilders deliver 40% and an estimated average overcharge of £10,000 per home.
Please don’t feel restricted by these suggestions, but do try to keep it polite. If you have any other things to add you would like to share, please comment on this post. Thanks!
Thank you HorNets!
This has been a long campaign and we are finally making progress. It has only been possible because YOU have kept up the pressure, writing to your MPs and engaging with government and CMA consultations. Thanks to you most MPs have heard of the problems of privately managed estates and there is pressure in parliament for change.
Halima was at Westminster on 17th June to give evidence to the MHCLG select committee on property agents and was successful in bringing the issue of adoption to the fore as well.
After the meeting she was able to network with some of the many supportive MPs from all parties. Special thanks to Charlie Dewhirst’s team for organising the get together and those MPs who were able to attend.
From left to right: Gideon Amos MP for Taunton and Wellington, Sarah Dyke MP for Glastonbury and Somerton, Pam Cox MP for Colchester, Chris Hinchcliffe MP for North East Hertfordshire, Charlie Dewhirst MP for Bridlington and The Wolds, Alison Bennett MP for Mid Sussex, Dr Roz Savage MP for South Cotswolds
From left to right: Gideon Amos MP for Taunton and Wellington, Sarah Dyke MP for Glastonbury and Somerton, Pam Cox MP for Colchester, Chris Hinchcliffe MP for North East Hertfordshire, Charlie Dewhirst MP for Bridlington and The Wolds, Alison Bennett MP for Mid Sussex, Dr Roz Savage MP for South Cotswolds
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.