Estate Management Charges

1. Questions to the First Minister – in the Senedd on 25 September 2018.

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Photo of Hefin David Hefin David Labour

(Translated)

6. What action is the Welsh Government taking to address the problem of estate management charges? OAQ52645

Photo of Carwyn Jones Carwyn Jones Labour 2:09, 25 September 2018

The review of unadopted roads, initiated by the Cabinet Secretary for Economy and Transport, is now under way. That work will complement that of the leasehold advisory group, convened by the Minister for Housing and Regeneration. I know the Member has raised this before in this Chamber. It's a hugely important issue, something that is relatively new in its concept, but one that we must deal with in order to make sure that people aren't exploited. 

Photo of Hefin David Hefin David Labour

And increasingly so, people are buying freehold accommodation and being forced to pay these charges to private companies on top of their council tax to maintain their estates. In Cwm Calon in Ystrad Mynach in my constituency, Meadfleet, the estate management company there, have announced that the charges are going to rise per six months from £61 to £78, and there is nothing—nothing—anyone can do about it. It's totally beyond democratic control. Ten years ago, Barnet Council became known as the EasyJet council, whereby people pay extra for their services, on top of their council tax, for so-called additional services. It's now known as the outsource council. Well, estate management charges are outsourcing by stealth, but at least with EasyJet you can choose whether you pay for overpriced peanuts. What more can the Government do?

Photo of Carwyn Jones Carwyn Jones Labour 2:10, 25 September 2018

I can assure the Member that this is part of what the task and finish group will be considering. He makes the point, quite rightly, that where new estates of houses are built, people are, these days, often told there is a service charge to pay for grass cutting, a service charge to pay for upkeep, to pay for the roads and pay for the pavements, but they're still paying council tax at the same level, of course. So, they're paying twice for a service that should be provided by a local authority. I would hope that no local authority in Wales sees estate management charges as a way of granting planning permission without the ongoing revenue cost that an estate of houses would cost them. I hope that isn't the case. But, certainly, I can give him that assurance that this will be something that the task and finish group will look at.