The Competition and Markets Authority (CMA) has published the first in a series of working papers aimed at addressing issues related to new build estate management and the associated charges that households must pay. This initiative is part of the CMA's ongoing efforts to enhance consumer protections and improve transparency in the housing market.

In its initial update earlier this year, the CMA highlighted the growing number of new build housing estates with unadopted amenities, which has left many households responsible for the maintenance costs of essential services such as roads, parks, and street lighting. The CMA is now inviting feedback on potential measures to tackle these concerns, with a deadline set for 24 November 2023.

Among the options being considered are strengthening consumer protections for households, which would empower residents to challenge poor-quality work and unreasonable charges, as well as ensuring that more amenities on new build estates are adopted by local councils. This would alleviate the financial burden on households by eliminating the need for estate management charges.

Dan Turnbull, Director of Markets at the CMA, emphasized the significant rise in unadopted amenities over the past five years, particularly as local councils face budget constraints. He noted that many estate charges have been reported as opaque, excessive, or linked to sub-standard work, prompting the CMA to assess a variety of solutions to these issues.

The CMA plans to publish its final report on the housebuilding market study by 27 February 2024, following the collection of feedback from the public. Additional working papers addressing planning reforms and land banking are also expected to be released later this year.