Subject: Response to Open Consultation: Enhanced Protections for Homeowners on Freehold Estates

29 January 2026

Dear Ministry of Housing, Communities and Local Government,

We are responding on behalf of the Coate (Badbury Park) Residents Working Group, a community of freehold homeowners living on a privately managed estate subject to estate management charges secured through Transfer Deeds (TP1).

We welcome the government’s recognition of the significant injustices faced by homeowners on privately managed estates and support the overall intention of the proposals set out in this consultation. We offer the following comments based on our direct experience at Badbury Park.

1. Double taxation and lack of service provision

Residents at Badbury Park are subject to a local authority precept for services that are either not provided at all or are duplicated by privately funded estate management arrangements. Homeowners therefore experience what is effectively double taxation, paying both council tax and compulsory estate management charges for basic services such as open space maintenance, lighting, and drainage.

We believe the consultation should explicitly address this inequity and explore mechanisms to:

• Prevent duplication of charges where local authorities do not adopt estate infrastructure
• Increase transparency and accountability where services are privately delivered
• Encourage or require earlier adoption of estate assets by local authorities

2. Protections against loss of home due to arrears – concerns about cost shifting

We support the principle that homeowners should not face the loss of their homes due to arrears in estate management charges. However, we have concerns about the practical consequences of this proposal if not carefully designed.

In our experience, where an individual homeowner refuses or fails to pay estate charges, the shortfall does not disappear. Instead, it is typically absorbed by the remaining paying residents through increased charges or reduced services. Management agents often continue to pursue unpaid charges passively, with enforcement only arising at the point of sale.

We are concerned that removing effective enforcement mechanisms without providing an alternative recovery routerisks unfairly shifting financial liability onto compliant homeowners. Any new protections must therefore:

• Balance safeguarding homeowners with ensuring estate costs are fairly apportioned
• Provide estate managers with proportionate, transparent recovery mechanisms
• Prevent non-payment from becoming a burden on neighbouring residents

3. Rights for freeholders to challenge estate charges

We strongly welcome the proposal to grant freeholders rights equivalent to leaseholders to apply to the First-tier Tribunal (Property Chamber) or the courts to determine:

• The reasonableness of estate management charges
• Liability to pay such charges
• The recovery of charges where disputes arise

This is a critical and overdue reform. Access to an independent tribunal will significantly improve fairness, accountability, and confidence for homeowners on privately managed estates.

4. Embedded management company at Badbury Park

Badbury Park is managed by a private embedded management company, established through the original Transfer Deeds (TP1). Homeowners have no meaningful ability to change or influence this arrangement, despite being permanently bound to it.

We urge the government to ensure that the new regulatory framework fully applies to embedded management companies and does not rely on voluntary compliance or contractual complexity to dilute homeowners’ rights.

5. Charging estate fees prior to land transfer

We believe the law requires amendment to prevent developers from charging estate management fees before the land and assets have been formally transferred to the management company.

At present, homeowners can be required to pay for services on land that remains under developer control, with limited transparency and accountability. This creates a clear imbalance of power and should be expressly prohibited in legislation.

Conclusion

We support the direction of travel set out in this consultation and welcome the government’s commitment to reform. However, we urge that the final measures:

• Address double charging and lack of service adoption
• Avoid shifting financial risk between homeowners
• Apply robustly to embedded management companies
• Prevent premature or unjustified estate charging by developers

We would welcome continued engagement as these proposals are refined and implemented.

Yours faithfully,
Coate (Badbury Park) Residents Working Group