Agenda item

The report of the Director of Development is attached.

It was RESOLVED that:

a)               the Council’s position not to adopt open spaces on new developments due to the significant financial burden this entails be reaffirmed;

b)               the proposal for the Council to take a more active role working with developers and management companies to encourage good practice, as outlined in section 4.36 of the report be supported;

c)                the Growth and Development Scrutiny Group be requested to review progress against the proposals as set out in section 4.36 of the report in Spring 2025; and

d)               the Government be lobbied to regulate the governance of management companies, to ensure transparency, remove charges unrelated to the management of open spaces, mandate engagement with homeowners and to expediate the adoption of the Leasehold and Freehold Reform Bill.

The Cabinet Portfolio Holder for Planning and Housing, Councillor Upton presented the report of the Director – Development and Economic Growth, which detailed the management of open spaces in new developments.

Councillor Upton referred to the concerns reported by Councillors and residents and stated that this was a national issue, for which there was currently no regulation for the governance of private management companies. The issue had been considered by the Growth and Development Scrutiny Group in January 2024, with a progress review scheduled for Spring 2025.

Councillor Upton stated that over recent years, the design and layout of many new housing estates had changed, to accommodate environmental and topographical issues and provide biodiversity. With increased housing density, private gardens had generally got smaller, and communal, public open spaces, managed by private management companies had been provided by developers to try and compensate for that.

It was noted that historically the Council had adopted small scale open spaces; however, due to increased complexity, and significantly increased costs, the Council had stopped this in 2011. Councillor Upton advised that detailed research by officers had been undertaken to look at the cost of reverting back to adopting public open spaces, details of which were highlighted in paragraphs 4.23 to 4.30 of the report, and it had concluded that the Council was not in a position to do that, due to the significant financial burden that this would create.

Councillor Upton confirmed that the Council was taking a more active and supportive role, working with both developers and management companies to encourage good practice, as highlighted in paragraph 4.36. A Supplementary Planning Document (SPD) and a Good Practice Code were being developed and officers had met with developers and management companies to discuss concerns raised by residents, and all have said that they were keen to build better relationships with both the Council and residents.

Councillor Upton stated that the majority of developers were registered with the independent New Homes Quality Board, which included a New Homes Ombudsman service.  The Council was aware of the Government’s intention to legislate in this area and that it was actively lobbying to regulate the governance of management companies. Councillor Upton reminded Cabinet that the Leader had written to the Secretary of State in March urging the Government to put controls in place. Reference was made to the market study into housebuilding by the Competition and Markets Authority (CMA), which the Council had responded to, with details of the three recommendations from that published report highlighted in paragraph 4.19. The key recommendation was that councils should adopt amenities on all new housing estates; however, the CMA did not suggest how that should be funded, it recognised concerns on how councils would find funding and suggested that the Government would need to consider this. It was noted that the Leader had received a response to his letter, in which the Secretary of State confirmed that the Government would be responding to the CMAs report within 90 days of its publication in February.

Councillor Upton concluded by stating that the Council understood the concerns raised, in particular the financial costs to residents, and that it had and would continue to lobby for Government legislation, whilst waiting for the Government’s response to the CMA report. This Council did not have the legal power to oblige developers to hand over the management of open spaces to it, and as previously mentioned, it was currently not financially viable for the Council to revert back to managing open spaces, as to do so would only worsen an existing projected budget deficit position. The Council was playing a much more proactive role to try and improve the situation, whilst considering guidance for new estate design layouts as part of its new Building Design Code.  

In seconding the recommendation, the Leader referred to the genuine concerns raised by residents, and the importance of this issue, as illustrated by the number of questions submitted. The Leader reiterated that this was a national problem, with the introduction of management companies leading to unintended consequences and advised that he would continue to lobby through various channels, including the LGA and the District Councils Network. It was vital that proper rules and legislation were in place, and the Leader reiterated that as everyone appeared to generally be in agreement, it would be helpful to have collective cross-party discussions, to identify what issues needed to be taken forward. 

Councillor J Wheeler emphasised the importance of needing Government legislation, referred to the issues raised in paragraph 4.29 of the report and to the complexity of new developments, not just in relation to open spaces.  Councillor Wheeler felt that any legislation and policies should be clear and robust to provide assurance and security to residents going forward.

The Leader referred to paragraph 4.36 of the report, which highlighted that officers were already talking with developers, and that management companies had been invited to join Development Boards. He emphasised how important this issue was and that the Government needed to bring regulations forward.  

It was RESOLVED that:

a)               the Council’s position not to adopt open spaces on new developments due to the significant financial burden this entails be reaffirmed;

b)               the proposal for the Council to take a more active role working with developers and management companies to encourage good practice, as outlined in section 4.36 of the report be supported;

c)                the Growth and Development Scrutiny Group be requested to review progress against the proposals as set out in section 4.36 of the report in Spring 2025; and

d)               the Government be lobbied to regulate the governance of management companies, to ensure transparency, remove charges unrelated to the management of open spaces, mandate engagement with homeowners and to expediate the adoption of the Leasehold and Freehold Reform Bill.