Councillors call for tougher rules to tackle ‘fleecehold’ housing contracts

Nicholas Thomas, Local Democracy Reporter

Tougher regulation should be introduced to protect residents from “exploitative” practices and end so-called “fleecehold” contracts, local councillors have agreed.

Cllr Elizabeth Davies said some constituents in her Penmaen ward had “no choice” when buying new homes other than to enter into deals with private estate management companies in Caerphilly.

These firms typically look after communal spaces in new estates, but councillors heard in the worst cases, residents were left paying more and receiving less.

Residents said bills had “more than doubled” for services and those who wanted to sell their homes faced “significant” fees, Cllr Davies told a council meeting on Tuesday April 7.

She said people from within and outside her ward had been affected, and noted the support of Islwyn Senedd Member Rhianon Passmore and the late Caerphilly MS Hefin David.

Cllr Roy Saralis said “more and more” people reported being “tied into” mandatory contracts when they bought a new home, and such terms were “often impossible” to change.

He said there was “very little transparency” about how management fees were calculated, and bills tended to rise substantially over the years.

He and Cllr Davies have called on ministers to tighten current rules he said had “allowed this model to become the norm”.

The plea was not designed to impact management firms who properly fulfil their roles, but about clamping down on troublesome practices such as “threatening” letters demanding payment, and “high and often unexpected transfer fees” when homes change hands, he said.

Fully supported

Cllr Sean Morgan said he would “fully support” calls for action.

“These companies are now… known as fleeceholders because they are known to be fleecing the residents,” he told councillors. “I definitely believe that more regulation should be brought in.”

The chairman of the council’s housing committee, Cllr Andrew Whitcombe, added its members had given the motion their unanimous backing at a meeting in March.

Cllr Jamie Pritchard, who leads the local authority, said he was “more than happy” to write to the borough’s MPs and Senedd Members, as well as the Welsh and UK governments.

“It’s not a matter the council can resolve in and of itself, but clearly if ministers have a say on this… I’m more than happy to make those representations,” he said.

Earlier this year, the UK Government indicated proposals to give residents “more power to tackle unreasonable charges for upkeep of shared areas”.

Members of the Senedd have also supported calls for change, in recognition of the late Dr David’s decade of work to tackle the issue.