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Economic Development

Welsh Government probe into freeholder fees on new housing developments in Wales

Homeowners can be charged fees on developments where open spaces and facilities are not adopted by councils

Drone pictures of Anwyl's Parc Aberkinsey estate in Rhyl pictured in 2017.(Image: Darren Keenan)

The Welsh Government says it is planning to address the practice of charging freeholder fees for maintenance and services on their estates.

Currently, owners of freehold homes can be charged fees on housing developments where open spaces and facilities are not adopted by their local authority.

Leaseholders and tenants may also be subject to the fees, through their service charges.

The practice has sparked a backlash on many estates around the country -

Residents are angered over increasing Greenbelt charges on their Rhyl estate(Image: Darren Keenan)

 

The Welsh Government is today calling on residents, developers, local authorities and interested professionals to submit evidence on how the system operates.

They say the decision to purchase a property should always be informed by a good understanding of the implications of the ownership status, and the likely ongoing costs and responsibilities, early in the purchase process.

To ensure that, the Minister is also looking at what may be done to improve the awareness of leasehold and estate charges among buyers.

Housing Minister, Julie James said: “I have heard from many residents who have had a poor experience of these charges, either finding out at a late stage during purchase that they exist, being faced with steeply escalating demands, or being unable to challenge what they perceive as poor value for money or inadequate service in return for the charges.