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Residents living on the Cwm Calon estate in Ystrad Mynach pay more than £160 a year in estate management charges – on top of council tax.
The management of the estate is split between Caerphilly County Borough Council, open space management firm Meadfleet and Flintshire-based developers Redrow, which built the estate.
Speaking in the Senedd last week, Caerphilly’s Labour MS Hefin David called for a cap on estate management charges, as well as better regulation of management companies.
Posing a question to First Minister Mark Drakeford, Dr David raised the example of Cwm Calon and said: “The uncapped cost is one thing but also, the number of agencies involved in the management of the site causes confusion and often means things aren’t dealt with as they should be because residents do not know who is responsible for what areas.
“I meet regularly with the Cwm Calon Community Association and all of the agencies involved. I support residents the best I can and will continue to do so but ultimately, what is needed is wider legislative change, a cap on charges and better regulation of management companies.”
Dr David previously met with Julie James during her time as Wales’ Housing Minister, who said the UK Government needed to take action in step with the Welsh Government, due to complex crossovers between UK and Welsh legislation.
Responding to Dr David’s question, Mr Drakeford said the UK Government had confirmed legislation would be introduced during the current parliamentary term (which will end no later than December 2024), due to recommendations made by the Law Commission on leasehold reform.
The legislation would mean freeholders would have the same rights as leaseholders – meaning residents would have the right to apply for a tribunal to challenge estate charges or appoint a new organisation to manage their estate.
What are leaseholders and freeholders?
In terms of housing, a freeholder is someone who owns the land and property outright, whereas a leaseholder simply owns a lease from the freeholder. These leases are usually around 100 years long, but can be longer or shorter.
The First Minister also said the Welsh Government will introduce new Building Safety legislation later in this Senedd term (which will end no later than May 2026).
This new legislation would see estate management companies registered under a new licensing scheme.
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