Leasehold Reform and Privately Managed Estates

Detailed Summary

Notice of Motion submitted to Cheshire West and Chester Council by Councillor Katie Kendrick OBE (seconded by Councillor Felicity Davies) concerning leasehold reform, commonhold and privately managed housing estates.

The Motion argues that both leaseholders and freehold homeowners on privately managed estates are facing increasing financial and governance problems because of estate management arrangements.

Key concerns identified

The motion states that:

• Residents are experiencing:
  • Rising and often opaque estate management charges.
  • Poor-quality services from management companies.
  • Limited opportunities to challenge costs or management decisions.
• Although the Leasehold and Freehold Reform Act 2024 has become law, important provisions have still not been implemented, delaying benefits for homeowners.
• Increasing numbers of new housing developments are being built with infrastructure that is not adopted by the local authority, including:
  • Roads
  • Drainage
  • Street lighting
  • Green spaces
• As a result, residents become responsible for long-term maintenance costs through private management companies.
• Some estates that were originally expected to be adopted by the Council remain unadopted, leaving residents facing uncertainty and unexpected liabilities.
• This creates a two-tier system where some homeowners benefit from publicly maintained infrastructure while others pay ongoing private charges with less transparency and accountability.

What the Council believes

The motion states that:

• Home ownership should provide security, fairness and democratic control.
• The current expansion of privately managed estates represents a failure in housing delivery and regulation.
• Commonhold should become the preferred ownership model for flats.
• Government should fully implement the remaining provisions of the Leasehold and Freehold Reform Act.
• Cheshire West and Chester Council should use its planning and highways powers to prevent future developments embedding these long-term problems.
• Existing estates intended for adoption should not remain indefinitely under private management.

The Motion asks the Council to:

• Write to the Secretary of State
  • Urging faster leasehold reform and highlighting the impact of delays on local residents.

• Create a cross-party Task and Finish Group to investigate privately managed residential estates across the borough.The group would examine:
  • How many such estates exist.
  • Their characteristics.
  • Financial and social impacts on residents.
  • The performance and accountability of management companies.
  • Estates that were intended for adoption but remain unadopted and why

• Investigate barriers to estate adoption the group will explore:
  • Delays in adopting roads and infrastructure.
  • Minimum standards needed for adoption.
  • National changes that could make adoption easier.

• Examine whether existing estates could be adopted including considertion for:
  • Legal implications.
  • Financial implications.
  • Operational requirements.
  • Possible funding mechanisms.
  • Clear criteria for deciding when adoption is in the public interest.

• Report back within six months and prepare a report to Cabinet setting out:
  • Findings.
  • Recommendations.
  • Options for implementation.
  • Any changes needed to Council policy or practice.

Relevance to estates such as Kings Moat

Although the motion does not mention Kings Moat specifically, it is highly relevant to developments where:

• Roads or public open spaces remain privately managed.
• Residents pay estate management charges.
• Infrastructure expected to be adopted has not yet transferred to the local authority.
• Homeowners face uncertainty over future maintenance responsibilities.

The Motion has now been approved, establishing a Task and Finish Group that will give estates experiencing these issues the opportunity to contribute evidence and inform future Council policy.