By Anna Whittaker, Local Democracy Reporter
Measures to protect house buyers paying management fees on new build estates “don’t go far enough”, a councillor has said.
Rushcliffe Borough Councillors met to discuss the problem, after hearing the practice is leaving some residents in the area feeling “financially scared and threatened”.
Councillors and residents have raised concerns about the practices of some private management companies responsible for collecting the fees, which are sometimes charged to buyers on new build estates.
They often relate to maintaining shared spaces and cutting grass on verges and parks, because the company is taking this work on instead of a local council.
But council papers state that in some cases, homeowners are being charged for making home improvements including putting up sheds, building extensions, installing replacement windows or getting new driveways.
In other incidents, homeowners have been asked to pay a fee to remortgage or sell their home. The papers do not name the companies involved in the cases.
The council said there is “no simple solution” to managing open spaces on new build developments.
Most new built homes have some form of management fee charges, payable on top of their council tax.
Residents often pay hundreds of pounds a year for the upkeep of open spaces surrounding the new homes.
The issue was discussed at the council’s Growth and Development Scrutiny Group on January 3.
Cllr Lesley Way (Leake Ind) said: “People are told they’ll get mowing and hedgecutting and it’s £100 a year.
“So they go away quite happy because that isn’t too much to pay.
“But they’re unaware there’s a charge on the house. They’re unaware it covers playgrounds.
“They’re unaware they could be sent huge bills for things like fly-tipping.
“We’ve got a whole ranch of residents who are financially scared and threatened.
“It’s taking a huge financial, emotional and mental toll on these people.”
Management company Greenbelt, which operates in the Midlands, spoke to councillors at the meeting to provide a general example of how their system operates.
Robin Waddell, Business Development Director, said the company bills £140 per household a year on average.
He said: “We have seen some residents struggling to pay, pre Covid and after Covid. We always give flexible payment options.
“97 per cent of all our bills are paid within the first three months.
“But there are serial non-payers and we have to manage that.
“There are times when unforeseen, non-routine work is required to repair something, or excessive storm damage, and that does come at a cost.
“Play areas being vandalised, that is a big expenditure.
“There are many occasions where we’ve absorbed the costs ourselves to soften the blow to residents.”
Council documents stated: “Any significant changes to management company practices will likely only come as a result of Government intervention.
“However, the Council is committed to exploring what can be done at a local level to improve the experience for residents affected and what the Council’s role might be.”
Cllr Keir Chewings (Lab) said: “It is unfair.
“Where I live, I pay my council tax precept alone. If there’s fly tipping I contact the borough and it gets sorted out.
“If I was to go down the road I would have to pay a further tax, with a profit margin on top, from a management company.
“I don’t feel comfortable with the recommendations at the moment. It doesn’t go far enough for me I’m afraid.”
The council used to adopt all open space on new housing developments but in 2011 the council changed its position due to the “financial burden”.
Now, developers submit an Open Space Scheme as part of the planning process but this does not allow for the council to have a say on who the management company should be.
Due to the issues with this process, council offices have considered whether the authority could reverse its position and revert to adopting public open spaces on new developments.
The authority has also considered setting up its own management company.
Councillors agreed to a number of recommendations including to “support the proposal for the Council to take a more active role working with developers at the planning stage to establish the council’s expectations regarding the service expected for its residents”.
