What plans does the Welsh Government have to prevent residents from having to pay extortionate maintenance fees, given that it has previously questioned the practice of charging freeholder fees for maintenance and services on their estates but that the practice is still ongoing?
We are committed to addressing the issue of unfair estate charges as reflected in our Programme for Government (https://gov.wales/programme-for-government-2021-to-2026).
I have previously set out my intention to include estate management companies within our plans to introduce a mandatory registration and licensing scheme for residential property management. Doing so will provide for much greater oversight and accountability in relation to the activities of these companies.
I have also committed to working with the UK Government to introduce legislation on a Wales and England basis that will give freeholders equivalent rights to leaseholders in relation to such matters. This would include the right to apply to a tribunal to challenge the fairness of estate charges, and to appoint a new manager to manage the provision of services covered by estate rent charges. My expectation is that legislation introduced later in the current Westminster Parliament, in relation to the implementation of the Law Commission’s recommendations on leasehold and commonhold, will include these extra protections for freeholders.
The UK Government has also announced its intention to repeal Section 121 of the Law of Property Act 1925 to ensure homeowners are not subjected to unfair possession orders as a consequence of unpaid estate charges. My intention is that that this reform should also be applied in Wales as well as in England.
Although it is usually my preference to make legislative change for Wales in the Senedd, I believe that pursuing these joint measures through a Bill introduced in the UK Parliament will be the most efficient route to change. Such a Bill would, of course, be subject to the legislative consent of the Senedd. If for any reason UK Parliamentary legislation is not forthcoming, or suitable for the needs of residents in Wales, I will consider alternative means to achieve a better outcome for those for those currently subject to estate management charges.