Local MP calls out housing developers over 'fleecehold' scandal

Alistair Strathern, MP for Hitchin, backed by 36 Labour MPs, has called on major developers to play their part to end exploitative estate charges and tackle the growing crisis of unadopted housing estates.

In a letter sent directly to the CEOs of seven of the UK’s largest housing developers, Strathern highlighted the scale of the issue. With around 80% of new housing estates remaining unadopted by local councils, vital infrastructure such as roads, lighting, and green spaces are left in the hands of private management companies, with residents vulnerable to exploitative charges. In 2022 alone, UK households paid a staggering £260 million in estate management charges, with many facing additional inflated and unexpected bills on top of regular fees.

To understand the extent of the issue, Strathern has asked for clear data on the proportion of estates adopted in recent years, and what steps developers are taking to work with councils to avoid leaving homeowners vulnerable to these unfair charges.

This action follows the introduction of Strathern’s Parliamentary Bill last month – the Housing Estates Bill.

Commenting, Alistair Strathern MP said:

“Families across Herts, Beds and beyond are being hit with eye-watering service charges for basic amenities that simply don’t meet acceptable standards.

“From broken streetlights to crumbling roads, homeowners are left footing the bill because developers haven’t built estates to a standard that councils can adopt.

“This fleecehold stealth tax has gone on long enough. Labour understands this and we’re determined to do all that we can to bring it to an end.”