Property developers should be banned from charging extortionate fees, Tory MPs say

Under this framework, there have been heated complaints about firms that provide poor service or charge excessive fees. Photo: Steve Parkins/Shutterstock

A ban on so-called 'fleeceholds', where people buy homes only to be charged exorbitant fees for regular council services, has been backed by 46 Conservative MPs.

The group The Tories wrote to Michael Gove. , the Communities Secretary, is proposing to outlaw this new phenomenon in the Tenancy Bill.

Signatories include two former Communities Secretaries, Sir Simon Clarke and Robert Jenrick, and two former Housing Secretary, Keith Malthouse and Rachel McLean.

The number of Conservative MPs behind the initiative is significant, as it means the group theoretically has enough support to defeat the government if the change is not passed.

Little opportunity to challenge the service

The problem MPs have highlighted has come to light in recent years and is only beginning to be recognized by politicians as a problem that needs to be addressed.

We are talking about new private residential developments that have not yet been accepted by local councils, meaning that companies are instead contracted to provide such services , like washing trash cans.

However, under this system there are intense complaints about firms that provide poor service, such as leaving dog waste. rubbish bins piled high or charged exorbitant fees.

There is often little opportunity to challenge service quality, as contracts are negotiated by the developer and individual homeowners have limited ability to challenge problems.

Affected from three to four million people.

Deputies voiced the problem. are being «ripped off» because they believe it is affecting people who thought they had purchased a property but are still being ripped off.

It is estimated that between three and four million people are stuck in such agreements

Tory MPs believe many of those affected are natural Tory voters, given that homeowners traditionally fall into this category.

The Competition and Markets Authority recently estimated that “in the last five years, 80 per cent of freehold properties built by the 11 largest housebuilders were built, representing around two-fifths of all new builds in England, Scotland and Wales.” on this model.»

Legislation subject to debate

Tory MPs campaigning for change want the government to introduce an amendment to ban the practice. The legislation is being debated in the House of Lords on Wednesday.

Their letter, published by The Telegraph, said: “The Government should be commended for pushing through the first comprehensive tenancy reform in 20 years.”

“The House of Commons debate on the Tenancy Bill exposed problems with the unaccepted model of private estates, also known as a 'fleecehold'.

“As the Bill reaches its remaining stages, we urge the Government to go further to expand opportunities for residents on the existing fleecehold. estates and put an end to this pattern of new estates.

“There is no prouder word than freeholder.”

“The government should also address the unfair system of confiscation, in which people may be at risk of losing and paying small sums.

“Mrs Thatcher said: “There is no prouder word in our history than freeholder” — now we must complete her reforms and fully deliver on our manifesto promise to ban the sale of all new leasehold homes.

Mr Gove has yet to publicly say he supports such a change.