Politicians in Wokingham have committed themselves to fighting high ‘estate management fees’ for homeowners – the system sometimes known as ‘fleecehold’.
They want to give better rights and protection for people living on privately managed estates and address the unexpected costs they face.
A new law titled “The leasehold and Freehold Reform Act” was passed in 2024 that means homeowners on those estates shouldn’t have to worry about losing their homes if they fall into arrears on their estate management charges.
Estate management companies charge for things like grass cutting, maintaining lifts and shared areas, but also charge unexpected fees, duplicating services provided by local councils, with home-owners having no choice but to pay.
The law also wanted to simplify the system for homeowners in other ways, and give them new rights, but the law hasn’t gone into effect yet, and it was challenged by freeholders.
However because the law was passed ‘in the wash-up’ on the very last day of Rishi Sunak’s government, key provisions stripped out lots of the detail so that the new government could put its own spin on it and the law is not yet active.
The Labour government, which took office shortly after the law received Royal Assent, has launched a consultation on reducing the prevalence of private estate management and increasing the adoption of amenities by public authorities.
If your street has not been adopted by the local authority, you likely have to pay the same Council Tax anyway, but once your street is adopted, many services provided by the EMC will be provided by your council from that Council Tax with no additional fees.
In early 2025, powerful landowners went to court to fight the law and protect their incomes.
They asked the judge for a judicial review challenging key aspects of the Act but a ruling in October 2025 dismissed that challenge, clearing the way for these reforms to proceed.
At Wokingham borough council;s full council meeting last month, Cllr Andrew Gray (Labour, Shinfield) said: “Across our borough, many residents living in new developments are facing growing financial pressures as a result of unfair private estate management arrangements.
“For many, these charges are rising year on year, services feel unaccountable, and residents are effectively paying twice for things that most people receive through their council tax.
“At a national level, there is now recognition that this issue needs to be addressed.”
Mr Gray thought that the new law created an opportunity for councils — who deal directly with the consequences of unadopted estates — to influence policy and ensure that residents’ lived experiences are properly represented, and to take over shared spaces and shared facilities on estates: a process known as ‘adoption’.
He demanded improved national standards for adoption, so that developers build roads, open spaces and facilities to a consistent, adoptable standard—avoiding the unnecessary delays, disputes and extra costs that we see far too often.
He said: “The principle behind this motion is simple and clear: where amenities and infrastructure serve the public, they should, wherever possible, be publicly adopted.
“Residents should not be penalised simply because of where they live, nor should they face the burden of paying twice for essential services.
Independent councillor Alex Freeney (Loddon) made a humorous speech and spoke passionately on the subject, and was supported by Conservative leader Pauline Jorgensen who helped him draft a last minute amendment.
Cllr Freeney, rather than request that councils increase their adoption of such estates, demanded full mandatory adoption of all estates built from now on, ending the reliance on private estate management companies.
He also asked the council to lead an awareness campaign alongside local MPs Clive Jones and Yuan Yang for homeowners to tell the government what they thought of the charges.
Cllr Freeney’s amendment was accepted and every single councillor supported the motion.
Speaking to Wokingham Today, the former Labour group councillor said: “I had contacted the Labour group with my amended version of their motion the previous day, but they refused to engage with me.
“For the entire meeting they refused to even look at me, so I had to get the support of the Tories to fix their motion, which originally just copied and pasted the same wording as the government’s consultation website.
“Labour were forced to accept the amendment because if it had gone to a vote, it
“This is important. The right to manage and an investigation into the potential benefits of a municipal management company, which would serve as an interim solution whilst estates get adopted.”
The government is expected to ‘lay the Commencement Orders’ (or press the ‘on switch’) on the new law this summer when the consultation is complete.
