CMA sets out solutions to estate management concerns    

The Competition and Markets Authority (CMA) has sets out potential solutions to estate management concerns found as part of its housebuilding market study.

CMA outlined the potential solutions, which it is seeking feedback on, in a working paper published on Friday (3 November).

It is the first in a series of ‘working papers’ on addressing concerns with new build estate management and the charges households are required to pay.

It said it is now considering measures which could address the concerns and is inviting feedback by 24 November 2023.

Some of the options set out in the working paper include strengthening consumer protections for households paying estate management charges as well as giving people the power to challenge shoddy work, unreasonable charges and receive information over how they are set.

Other option is increasing the extent to which amenities on new build estates are adopted by councils thereby removing the requirement for households to pay estate management charges.

CMA director of markets Dan Turnbull said: “The number of new build housing estates with unadopted amenities has ballooned over the last five years, particularly as councils tighten their belts. This has resulted in many households being left to pick up the bill for the maintenance of roads, parks, and street lighting.

“As our study has progressed, we’ve heard concerns that some estate charges may be opaque, excessive, or result in sub-standard work. We’re therefore assessing a range of solutions to these concerns and are now seeking feedback before publishing our findings next year.”

In February, CMA launch its housebuilding market study to look at a range of options that could potentially resolve the emerging concerns it has identified.

It added that the possible measures set out in the working paper “should not be regarded as an indication of ‘preferred’ solutions”.

CMA will publish a final report by 27 February 2024.


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