Buying a new build in Stratford District? You might be signing up for more than a mortgage. The Council is escalating its fight against the practice often dubbed “fleecehold,” where developers hand over public open spaces to private management companies rather than the Council.
This leaves residents liable for uncapped annual maintenance fees on top of their full Council Tax bill. A motion proposed by Councillor Petrovic and Councillor Pemberton warns that residents are often disadvantaged by a “lack of clarity about ownership… and charges”.
The ‘three clarities’ policy
The Cabinet has backed a new approach that demands three specific protections for residents on new estates:
- Maintenance clarity: There must be accessible information on exactly who is responsible for cutting the grass and maintaining the land.
- Charging clarity: If charges are levied on homeowners, there must be transparency about who issues the invoices, how costs are calculated, and what service standards are promised.
- Contractual clarity: Residents’ rights must be protected even if the land is sold to a new private owner or individual.
The retrospective problem
There is a catch for existing residents. The report admits that while the Council adopted a new policy (SPD Part L: Open Space) in 2024 to encourage the Council to adopt green spaces, this “cannot be applied retrospectively without changes to national legislation”.
This means if you are already living on an estate with private management fees, the Council has no statutory power to intervene.
What happens next?
The Council is creating a “Task and Finish Group” specifically to look at these issues. They are investigating how existing assets are managed and whether residents are getting value for money.
Crucially, the report suggests the Council’s most effective role may be lobbying the central Government to introduce an Ombudsman to settle disputes between homeowners and private management companies.
