Issue - meetings

Motion: RESIDENTIAL MANAGEMENT COMPANIES

Proposer: Cllr Duncan Wood

Seconder: Cllr Mollie Miller-Boam

Councillor Wood moved, and Councillor Miller-Boam seconded a Notice of Motion in the following terms:

“This Council notes:

The increasing use of private management companies on new residential estates in Exeter to maintain roads, open spaces and shared facilities.

That many residents experience poor service, rising costs and a lack of transparency, while having limited rights to challenge or change their management company.

That the planning system can shape how estates are designed, adopted and maintained, and therefore has a key role in reducing reliance of private management arrangements.

Key reports and evidence on the performance and of management companies, including:

• The findings of the Competition and Markets Authority’s Residential Property Management Services Market Study, highlighting issues with poor transparency, high charges, and lack of leaseholder control.
• The Leasehold Advisory Service’s National Leasehold Survey (2016), which found that 68% of leaseholders had little or no confidence in their managing agents.
• The Law Commission’s Commonhold and Leasehold Reform reports, identifying the need for stronger homeowner rights and fairer management structures.
• The Housing Ombudsman’s Learning from Severe Maladministration reports, which detail systemic failings in housing management and governance.

That this is a national issue, and Exeter MP Steve Race has been working extensively with other Labour Members of Parliament to challenge poor performance an lack of accountability under the current system.

The Labour government’s commitment to modernise housing law through the Leasehold and Freehold Reform Bill and welcomes its plans for further radical reforms to address ongoing issues faced by homeowners and deliver essential change through the upcoming Commonhold White Paper and planned Leasehold and Commonhold Reform Bill.

Beginning of the end for the 'feudal' leasehold system - GOV.UK

This Council Believes:

That public areas on new developments, wherever possible, should be designed and built to adoptable standards, so they can be maintained by the City or County Council (or their successor). There appropriate this may require the provision of a commuted sum to fund ongoing maintenance.

That when private management companies are proposed, residents should be fully informed at about future costs and responsibilities and accountability of services before any homes are sold.

That developers must provide sufficient financial safeguards, including bonds, to ensure essential infrastructure works are completed even if the development or the management company ceases trading.

That stronger regulation is required at a national level to protect homeowners where management companies are unavoidable.

This Council resolves to:

1.Strengthen the use of the planning system to seek adoption by local authorities of roads, play areas, open spaces and other infrastructure where possible, and to consider the provision of a commuted sum for the ongoing maintenance and management of such facilities, in order to limit reliance on private management arrangements.

2.Ensure due diligence in the in the planning process so that developers have sufficient bonds or other financial guarantees in place to cover the completion of essential infrastructure works.

3.Require developers, through planning conditions or legal agreements, to set out clearly the costs and responsibilities  ...  view the full minutes text for item 117