The Regulation of Estate Management Companies

Part of 1. Questions to the First Minister – in the Senedd at 2:10 pm on 6 March 2018.

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Photo of Carwyn Jones Carwyn Jones Labour 2:10, 6 March 2018

Yes, the issue he raises is an important one, because, increasingly, what I'm seeing is that new housing estates are built and instead of the local authority adopting not just the roads but the environment, a service charge is imposed on all residents, even though they own their house as a freehold, which they have to pay. Now, it's not clear, of course, what arbitration mechanisms are in place in order to make sure that the amount paid is reasonable. Some developers will insert in the contract of sale that there will be a particular increase in the level specified every few years or so, but that's not universal practice. So, I think the Member has identified an important point here. Usually, we assume that freeholders have greater rights than leaseholders, but this is one area where that doesn't happen. If we are to see a situation in the future where more and more housing developers develop houses on the basis that they say to local authorities, 'Look, there's no cost to you', then the issue becomes more acute, and I'd be more than happy, of course, for discussions to take place with him in order to see how this can be taken forward.