Senedd members call for action on ‘fleecehold scandal’

Chris Haines, ICNN Senedd reporter

Senedd members pressed the first minister about plans to protect leaseholders in Wales against “huge annual fees” charged by estate management companies.

Hefin David warned people living on Redrow’s Cwm Calon estate in Ystrad Mynach have just had their third increase in as many years.

The Caerphilly Senedd member said the management company, Meadfleet, provides a disgracefully substandard service in return.

Dr David told the Senedd that residents need an opportunity to change management company and make complaints to get the improvements

But he cautioned that the Leasehold and Freehold Reform Act, which would give people more power to challenge estate management companies, has yet to be operationalised.

Dr David pointed to statistics from the Competition and Markets Authority, which show that 80% of new developments are subject to leasehold.

‘Struggling’

He said: “We need to think about what more we can do to prevent more unadopted estates from becoming the norm before we act. There are too many in Wales… in that position.”

He supported a private members’ bill, introduced by his Labour colleague Alistair Strathern in Westminster, which would go further than the law introduced by the Conservatives.

Quizzing Wales’ first minister in the Senedd on June 17, Dr David welcomed the “very good” recommendations of a petitions committee report on the so-called fleecehold scandal.

The politician urged the Welsh Government to press UK ministers, “so these scandals across Wales and the UK can be prevented from happening in the future”.

Eluned Morgan, who has served as first minister since August, acknowledged that leaseholders have faced long-running issues with estate management charges.

“People are struggling with the cost of living… without this kind of thing on top,” she said.

‘Double charging’

Baroness Morgan told Senedd members that housing secretary Jayne Bryant will set out the Welsh Government’s response to the petitions committee’s recommendations in July.

She added that the UK Government intends to go further by introducing a new leasehold and commonhold reform bill by the end of the year to “plug gaps left by the last government”.

Laura Anne Jones, the Conservatives’ shadow housing secretary, urged governments at both ends of the M4 to “get to grips” with the Wales-wide problem.

Ms Jones said: “What is often the case is that residents are also finding the works promised by these people for the increases that are championed are not actually being fulfilled.”

She warned people are paying “huge annual fees” for parks and roads on top of their council tax bill. “This is essentially a double tax,” she said as she called for council tax reductions.