At this month’s full council meeting, Cllr. Steven Easterbrook (Ind, Bridgend Central) asked a question on estate management fees – also known as “fleeceholds”.
The fees are charged by private estate management companies – often set up by or linked to the developer – to residents living on private estates. This covers the cost of routine maintenance work that would otherwise be undertaken by the local council.
Despite residents paying these fees, routine maintenance work – such as grass cutting, hedge cutting, fixing street lights etc. – was often not carried out. Cllr. Easterbrook said this effectively means they’re paying the equivalent of council tax twice yet receiving a poorer service.
He asked whether the council’s planning committee could ban estate management fees through the planning process.
Practice becoming less common, but the council’s powers are limited
Council Leader, Cllr, Huw David (Lab, Kenfig Hill, Pyle & Cefn Cribwr), said the council’s powers in the area were limited by law. Both the Welsh and UK governments were looking at the situation.
There were plans for a new law in the UK Parliament to strengthen the right to challenge estate management fees.
Corporate Director for Communities, Janine Nightingale, reiterated that the council’s powers were limited.
Management companies and fees come about when developers don’t want their estates adopted by the council – and there’s no means by which the council can force them to do so.
It’s easier to understand with apartments and flats (as there are common areas), but there are several housing developments that use the same principle.
The practice “is becoming less common” – and residents ought to have some influence on management companies through an estate management committee – but ultimately the council won’t be able to do anything until the law changes.
