Pressure Mounts for Ban on New-Build Rip Off Charges as Tory MPs Urge Government Action

Dozens of MPs Call for Change

A group of 46 senior Tory MPs have penned a letter to Michael Gove, urging the government to put an end to new-build rip off charges. These charges, often related to maintenance fees, have been a source of frustration for residents living in new build estates across the UK.

Residents in Distress

Approximately four million Brits find themselves in what's known as "fleeceholds," where common spaces in new build estates are not managed by local councils but instead by private companies or developers. As a result, residents often face hefty fees for subpar maintenance services, without adequate avenues for recourse.

Call for Government Intervention

The Competition and Markets Authority highlighted fleeceholds as a major concern in its 2023 housing market review, pointing out the significant harm caused to households. The watchdog recommended banning the fleecehold model and transferring control of public spaces on new build estates to the government.

Push for Legislative Change

In response to these issues, the group of Tory MPs is advocating for amendments to the Leasehold and Freehold Bill currently under parliamentary consideration. They are urging the government to empower residents in existing fleecehold estates and put an end to this model for future developments.

Addressing Unfair Practices

In their letter to Mr. Gove, the MPs also highlighted the need to tackle the unjust system of forfeiture, which can threaten individuals with the loss of their homes over minor payment disputes. They are calling for comprehensive reform to ensure fairness and protection for residents.