Freehold estate management

Freehold estates are private or mixed-tenure estates where, unlike other residential areas, shared areas and amenities, such as roads, play areas and open spaces, are not owned or looked after by the local authority. Responsibility for their management will instead rest with a private company (often the original developer) or homeowners themselves through a residents’ management company (RMC).

Responsibility for estate management is normally agreed when the local authority grants planning permission. Authorities can be reluctant to take responsibility for common areas (a process known as ‘adoption’) due to the maintenance costs involved.

The private company or RMC will normally employ a property management company/agent to organise the necessary maintenance work on the estate, and the estate residents will be required to pay for the maintenance via an estate charge.

The requirement to make a financial contribution will be set out in legal documents that are signed when the property is bought.

The amount of council tax each household pays is not discounted or adjusted to account for the estate charge or to reflect the specific services received. Council tax is collected to deliver a broad range of services across the wider local community.

Unlike leaseholders, freehold homeowners on these estates currently have very limited rights over the cost and quality of services provided.

Where the developer or RMC employs a property management company, a freeholder may be able to lodge a complaint with a redress scheme. Many property management companies in England belong to a government-approved redress scheme: The Property Ombudsman or The Property Redress Scheme. These schemes provide for independent resolution of disputes. There is government guidance on the schemes.

The Leasehold and Freehold Reform Act 2024 received Royal Assent on 24 May 2024. The act will strengthen the rights of freehold homeowners on private and mixed-tenure estates in England and Wales. In particular, it will:

• give freeholders the right to:
  • challenge unreasonable estate charges and the standard of work carried out through an application to a First-tier Tribunal (Property Chamber) (or Leasehold Valuation Tribunal in Wales).
  • apply to the tribunal to appoint a substitute manager where their estate management company is failing.
• improve the transparency of estate charges and ensure freehold homeowners receive key information on a regular basis.
• improve the transparency of administration charges and give freeholders the right to challenge unreasonable charges through an application to the tribunal.
• require estate managers to consult freeholders where the anticipated cost of major works exceeds a specified amount.
• require developers who do not employ a managing agent, as well as estate managers on freehold estates, to belong to a redress scheme.

Although the 2024 act has received Royal Assent, the majority of the provisions are not yet in force.  Many will require further consultation and detailed secondary legislation to be commenced.

On 18 December 2025, the government launched a consultation on Enhanced protections for homeowners on freehold estates which seeks views on how to effectively implement the new regulatory framework for freehold estates. The consultation closes on 12 March 2026.

In February 2024, the Competition and Markets Authority’s (CMA) final report on its market study into housebuilding identified significant consumer detriment arising from private estate management. The CMA consequently recommended action to:

• provide greater consumer protections for homeowners on existing privately managed estates; and
• prevent the proliferation of private management arrangements on new housing estates.

The CMA also invited the UK, Scottish and Welsh Governments to consider options to support the adoption by local authorities of shared amenities on estates currently under private management arrangements.

The Labour government’s response to the CMA report (October 2024) said measures introduced through the Leasehold and Freehold Reform Act 2024, particularly around transparency, accountability and redress, would enhance consumer protections. It also intends to further reform freehold estate management (see below). The government said it would monitor the effectiveness of its interventions for current residents and focus on preventing the proliferation of new arrangements before coming to a decision about any action on existing arrangements.

In the King’s Speech 2024 the government committed to publish a draft Leasehold and Commonhold Reform Bill, so that it may be subject to broad consultation and additional parliamentary scrutiny. The government expects to publish the bill early in 2026.

The background briefing notes to the King’s Speech 2024 said the bill will, amongst other things, bring “the injustice of ‘fleecehold’ private estates and unfair costs to an end.”

The government has launched two consultations on future freehold estate management reforms:

1. Enhanced protections for homeowners on freehold estates

The government’s consultation on Enhanced protections for homeowners on freehold estates outlines proposals to:

• remove the disproportionate enforcement remedies freeholders may face under sections 121 and 122 of the Law of Property Act 1925 if they fall into arrears on their estate charge.
• introduce mandatory professional qualifications for managing agents in England (for further information see section 4 of the government’s consultation on strengthening leaseholder protections over charges and services).
• legislate to fund free advice for freeholders on privately managed estates.
• improve the home buying and selling process by reducing delays and capping unreasonable fees for information. The government will consult on these measures in 2026.
• explore options to empower residents to take control of estate management. The Law Commission’s project on the Management of housing estates will consider options, including whether the Right to Manage regime could be adapted to apply to housing estates.

2. Reducing the prevalence of private estate management arrangements

The government is also consulting on proposals to reduce the prevalence of private estate management arrangements and increase amenity adoption in England. In particular, it is seeking views on proposals to:

• introduce common standards for adoptable amenities.
• explore mandatory adoption for certain amenities.
• remove financial incentives that make non-adoption attractive to developers.
• improve transparency and data on estate management arrangements.
• consider prohibiting ‘embedded’ management company arrangements, whereby a specific management company is named in property deeds, and mandating resident-controlled management for new developments.
• improve dispute resolution mechanisms for poor quality amenities and adoption issues.

Both consultations close on 12 March 2026.

The Welsh Government’s Programme for Government 2021-26 commits to “ensure that estate charges for public open spaces and facilities are paid for in a way that is fair.”

The estate management provisions in the Leasehold and Freehold Reform Act 2024 apply to Wales. The Welsh Government will introduce subordinate legislation to implement the act. It has launched a consultation on the new regulatory framework for administration charges on freehold estates. The consultation closes on 12 March 2026.

The Senedd Cymru/Welsh Parliament Research service has published an article which discusses Who should pay for the upkeep of new housing estates? (September 2025).

Estate charges are also an issue in Scotland. Scottish factoring provisions can provide a remedy (the removal of the management company) in certain circumstances. For more information, see Property factors – mygov.scot.

This specific issue does not appear to have arisen in Northern Ireland.

• Ministry of Housing, Local Government and Communities: Guidance: Freehold estates
• Commons Library briefing: Freehold houses: estate charges
• Commons Library briefings: Leasehold and Freehold Reform Bill 2023-24 and Leasehold and Freehold Reform Bill 2023-24: Progress of the Bill

About the author: Hannah Cromarty is a senior researcher at the House of Commons Library specialising in housing and homelessness.

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