Helen calls for crackdown on ‘dodgy developers’ and unfair charges

North Shropshire MP Helen Morgan raised “horrifying examples” of residents being ripped off in North Shropshire as she called for tougher action on unfair estate management charges.

Speaking in the House of Commons, Helen proposed changes to the Leasehold and Freehold Reform Bill which would give residents the right to take over estate management companies as well as challenge unfair fees.

Helen has met with homeowners and renters from across North Shropshire who are being forced to pay exorbitant fees to estate management companies for services that other residents receive from the local council.

The MP also highlighted the need to crack down on dodgy developers who leave new developments unfinished and are often linked to the management companies charging unfair fees.

Dozens of local residents have been forced to fork out thousands of pounds after rogue developers left essential infrastructure unfinished, including sewers and feeder roads.

Helen Morgan MP has been campaigning over several years for a law change that would protect homebuyers by making sure all the required infrastructure is in place before new properties are built.

The MP has had enough casework in her North Shropshire constituency connected to ‘fleecehold’ arrangements to know that a lack of regulation in the sector is a problem that impacts hundreds of her constituents.

She highlighted several of these cases during her speech.

Helen Morgan, Liberal Democrat MP for North Shropshire, said, “Too many people are being fleeced by unfair estate management charges on top of their council tax payments. Meanwhile dodgy developers are getting away without finishing the job and it is local residents who are forced to pay the price.

“Just from my experience of dealing with problems caused by dodgy developers in North Shropshire, it is clear that this is a problem impacting a huge number of people.

“I want the Government to do much more to protect people - and that's why the new Leasehold and Freehold Reform Bill must be strengthened to give residents a fair deal.”

Speaking in the House of Commons during a debate on the Leasehold and Freehold Reform Bill, Helen Morgan told MPs:

“Fleecehold is a scam. It attempts to deal with the issue whereby a freeholder is trapped in a situation where they pay estate management charges for the areas around their development, be they roads, play areas or open spaces.”

“There is a freeholder in my constituency, for example, who must obtain an information pack from their estate management company in order to sell their house. Despite repeated requests, my constituent has not received that information pack, so their sale has been significantly delayed and is at risk of falling through altogether.

“The management company is apparently just a shell, it does not respond to correspondence, hold annual general meetings or provide accounts—so the affected residents are powerless and cannot take control of the company and appoint a reliable professional to provide the services that they so desperately need.”