Consultation underway on private estate management

The government is seeking views on reducing the reliance on private estate management, following recommendations from the Competition and Markets Authority (CMA).

A consultation is underway on addressing the “growing issue” of unadopted amenities on privately managed housing estates in England. This is where roads, drainage systems, green spaces and other communal infrastructure are maintained by private estate management companies rather than public authorities.

“This trend has led to unfair charges, poor transparency and limited homeowner rights, creating significant consumer detriment,” according to the Ministry of Housing, Communities and Local Government (MHCLG).

In recommendations within its Housebuilding Market Study, published in February 2024, the CMA stated that councils should adopt amenities on all new housing estates.

It also recommended the introduction of enhanced consumer protections for homeowners on existing privately managed estates – including making it easier for homeowners to switch to a more competitive management company.

The CMA said in its study that it had found a growing trend by developers to build estates with privately managed public amenities, with 80% of new homes sold by the 11 biggest builders in 2021 to 2022 subject to estate management charges.

Whilst the average charge was …