New-build estate residents: are you paying management fees for land already adopted by the council?

[TheDaringFawn]

Has anyone else on a new-build estate had problems with estate management charges continuing after roads, verges and open spaces have been adopted by the council?

We're on a development in Teesside and have recently discovered that land on our estate was handed over to the local authority under Section 38 agreements, with some areas adopted as far back as 2011 and further areas in 2018.

Despite this, residents are still being charged by a private management company for the maintenance of areas that appear to have been adopted by the council. We have documentation to support the adoption, yet neither the council nor the management company seems willing to take responsibility or resolve the issue.

As we've looked into it further, we've realised this may be a much bigger problem than just our estate.

It is a massive problem across new build estates in last 15 Years.

We've come across similar concerns affecting a number of new-build developments, particularly in the North East, where residents are paying council tax but are also being charged additional estate fees.

This seems to be in all new builds. Our streets have been writing to mp, informing council and have now written to Martin Lewis as no one seems to be holding anyone else accoountable whilst we are out of pocket.

Its a national scandal it seems.

I'm interested if people dong mind sharing:

• Do you live on a new-build estate with a management company?
• Have roads, verges or open spaces been adopted by the council?
• Are you still paying estate management charges for those areas?
• Has anyone successfully challenged these charges or obtained refunds?

It feels like residents may be paying twice for the same services and I'm wondering how widespread this issue actually is.

Any experiences or advice would be very welcome.

I don’t pay any fees but recently the grass hasn’t been getting cut because the builder hasn’t been paying the company. I thought the council had adopted it but apparently not. Very strange

this is interesting, I pay fees, no idea if any land has been adopted by the council, but the management fees rise every year and seem to pass from different management company every couple of years

We get really regular posts on our local Facebook page from people trying to buy on the massive (new in 2012) housing estate in town. They're always asking about the management charge that seems to come with the house. They're always directed to a local conveyancing solicitor who knows this doesn't apply any more and sorts it out as part of the contract etc. I often wonder if there are long term residents still paying the charge who don't know about this.

It’s very normal on new build estates now. The council adopt the roads but do not take on responsibility for the green spaces etc so you have to pay normal council tax + extortionate management fees for the grass cutting etc

Yes, this is often the case. I used to work in a council highways department (though not directly dealing with road adoptions), and it was usually the roads, pavements, and streetlights that became the responsibility of the council. Open spaces etc were still the responsibility of the management company.

Does the Section 38 agreement clearly state the areas that were adopted by the council? If I recall correctly, S38 agreements are usually for public highway ( roads and pavements), not open spaces.

Also, paying council tax as well as estate management fees is quite normal. Council tax funds more than just road maintenance, streetlights, and rubbish/ recycling - schools/ education and adult social care being the two main sections of the budget.

We are lucky and don’t have any. But another watch out if you want to sell your house the management company will charge you hundreds to have the management pack sent to the new owners etc. I’ve seen upto 1k fees for various things and charges when a management company is involved

For 15 years I have lived in an estate in Somerset, one of the first occupants and they've only recently finished building! No where near road, lamppost/lighting and landscaping adoption although they have built several parks and they are fully adopted. I am freehold and don't pay any service changes. However, in later phases those freeholds have service changes! I don't believe they stop once the council adopts either.

Which estate are you on - We've lived on 2 in Teesside over the last 15 years and have paid management fees on both but none of the green space on either has ever been adopted by either Middlesbrough or Stockton council. The developers have to pay the councils to do so and they never do.

@EllieQ is right S38 agreements usually only cover highways. So the service charge continues for the green/ open space. Do you have another document that says the council adopted the green spaces?

It’s usual for the council to adopt the roads but not the green spaces. Is it not the management company who come to cut the grass?