Posted Tuesday 3rd March 2026
The government are currently in the consultation process on freehold estates and how they can be better managed for the benefit of residents. The consultation focuses on enhanced protections for homeowners on privately managed estates in England (and Wales). The consultation phase is due to close on 12 March 2026. Some of the key reform proposals are summarised below:
Removal of harsh rentcharge enforcement remedies
The government has expressed an intention to remove harsh enforcement remedies currently available to rent charge owners. For example, a rent charge owner can, currently, take possession of or grant a lease over a property subjected to a rent charge to recover unpaid arrears no matter how small or large, without any notification to the homeowner or any mortgagee. One of the proposals to remedy this issue is to introduce a requirement on the rent charge owner to give notice to the homeowner(s) of what arrears they need to pay, before they begin enforcement action, giving them a chance to make good before further steps are taken.
Estate management regulation
These proposals relate to charges levied to residents for estate services and are expected to mirror the protections given to leaseholders under the Leasehold and Freehold Reform Act 2024, such as ability to challenge the reasonableness of estate charges and providing greater transparency and control of the estate management and the associated costs.
Reform of ‘fleecehold’ system
These proposals intend to tackle what has become known as the ‘fleecehold’ system currently in place for some new build freehold houses within privately managed estates. Homeowners often are not fully informed about estate costs and are required to contribute to excessive estate management charges for the upkeep of the roads, green spaces and common parts with little transparency or the ability to challenge such charges. The government propose to make adoption of estate roads mandatory for some local authorities and remove financial incentives for developers on non-adopted estate roads where services remain privately administered.
We look forward to the outcome of the consultation phase and how this will affect freehold estates.
For more information, or to arrange a free consultation, please contact Shandhya Rai, Associate, or Richard Showan, Senior Associate in our Real Estate team.
This article is for reference purposes only. It does not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking or deciding not to take any action.
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