MS calls for cap on estate management charges

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Caerphilly’s Senedd Member has called on the Welsh Government to regulate the amount of money housing developers can charge residents for maintenance work.

Currently, there is no limit on what residents can be charged for maintenance work, but Dr David wants a cap to be introduced, as well as better regulation of estate management companies.

Developers often hand the management of communal areas, such as grass verges and roads, to estate management companies, many of which then charge a yearly maintenance fee.

Labour MS Hefin David spoke about the issue while giving evidence to the Senedd’s cross-party Petitions Committee earlier this week.

The Petitions Committee will use Dr David’s arguments as part of their inquiry into the matter.

Dr David spoke of how in the Caerphilly constituency, there are three housing estates where residents have to pay estate management charges on top of their council tax. The largest of these is Cwm Calon in Ystrad Mynach.

The other two are Cefn Mably and the new Redrow estate on Hendredenny.

Dr David raised the issue with the Welsh Government during the last Senedd term, with the Welsh Government launching a consultation into estate management charges back in early 2020, before the pandemic.

The consultation showed that of those having to pay the charges, 72% lived in properties built between 2010 and 2020.

Dr David told the Petitions Committee that while the ideal response would be to abolish all management companies, this would put extreme pressures on local authorities to take over the maintenance for thousands of properties across Wales.

He said: “A more practical response is necessary to ensure that unintended consequences aren’t imposed on local authorities at what is already a challenging time.

“I would like to see a cap on estate management fees, tribunal access and compulsory liaison with residents.”

He also called for regulation to “ensure protection for residents and accountability of those they are paying to look after their communities”.

Dr David said he was “pleased” the Welsh Government was “taking the issue seriously”, but added: “There needs to be further clarification from the Minister [Julie James MS] on what the duty of local authorities should look like going forward.”