Coventry residents trapped in “cash cow” maintenance contracts

[dutchman]

Coventry City Council is conducting a review of the charges



Coventry council will conduct a review of “unfair” maintenance charges in new-build private estates to ensure residents are not trapped in “cash cow” contracts.

Currently housing developers can apply the charges to freehold properties on estates where the land is not controlled by the local council, or sell them to another company.

This could include additional costs for the upkeep of roads, lighting and communal spaces.

A council meeting last week heard some residents are being charged upwards of £100 for grass verges to be cut

But these are often unregulated and uncapped, Conservative councillor Peter Male said at meeting of the full council.

Cllr Male, who put forward the motion following complaints from residents in new-build Bannerbrook Park, said: “The current arrangements are inadequate and in need of review.

“Other local authorities have debated the issue including Barnsley who have agreed a fee cap. There is also considerable cross-party recognition of this issue at national level.”

Labour MP Helen Goodman brought forward her The Freehold Properties (Management Charges and Shared Facilities) Bill in November to tackle the issue.

And Coventry’s own Labour councillors have also supported the call for a review of maintenance contracts, which have been labelled as “unfair practices”.

Cllr Ed Ruane, cabinet member for housing, said: “This is a cash cow of estate maintenance.

“Fees rise every year, often above the rate of inflation, and there is little transparency about how these funds are spent.

“While estates need to be maintained, the fees demanded of homeowners are completely disproportionate to the services provided, if they are at all.

“I have seen these cases where households are charged £100 per year for grass verges to be cut.

“Multiple that by 280 homes on the estate and a management company brings in £28,000 a year for this very small task.”

[rebbonk]

The council hates competition!