Why should we be concerned?
Over the years, the Hopton and Coton Parish community has
expanded, with new housing developments adding to the population. In addition to homes built around Hopton Village over the past few decades, the parish now includes park homes, traveller pitches, and larger developments such as St Mary’s Gate (north of Tixall Road) and the Redrow development (south of Tixall Road).
However, a major issue affecting 80% of these new builds is the rise of “fleecehold” properties. These homes are sold as freehold but come with an uncapped private maintenance charge tied to the property. Homeowners must pay ongoing fees for the upkeep of communal spaces, with no regulation or legal limit on how much they can increase over time.
Some buyers may have been aware of these fees but had little choice, hoping for regulatory protection. Others were not fully informed about how the charges work, how they escalate, or why they exist. This system has become increasingly common over the past 25 years, leaving many homeowners trapped in a cycle of rising costs.
Why Are Homeowners Paying Twice?
Traditionally, when developers built new housing estates, local councils would adopt public areas like green spaces, parks, and roads, using Section 106 (S106) contributions from developers to cover maintenance costs. This ensured the spaces were maintained as part of public services.
However, in recent years, many councils have stopped adopting new developments due to financial constraints and the ongoing cost of maintenance. Instead, developers retain ownership of public spaces and hire private management companies to handle upkeep, passing the costs directly onto homeowners.
As a result, residents must pay both full council tax (for council services) and a private maintenance fee (for communal areas that would previously have been adopted).
How Fleecehold Management Works
On many developments, residents are asked to form a Residents’ Management Company (RMC) to give them some control over maintenance decisions. However:
• The developer’s management company takes a cut of the fees.
• The RMC can hire and change contractors, but residents receive no pay for their involvement and often lack the expertise to oversee contracts effectively.
• The fees are not regulated, meaning they can increase indefinitely without homeowners having a say.
Because the maintenance charges are legally tied to the property, failure to pay can result in legal action and even repossession.
The Consequences of This System
The fleecehold system has created a loophole where homeowners on these estates are left at the mercy of unregulated management companies and rising fees, with no protection from government oversight.
• These charges are not council tax or a mortgage, yet they are mandatory.
• The public spaces remain privately owned, limiting council or parish involvement.
• The cost burden falls entirely on homeowners, even though such spaces were once publicly maintained.
This has become a nationwide issue, causing financial strain for thousands of homeowners. Many buyers did not anticipate how much their fees could increase, and they are now locked into an unfair system that benefits developers and management companies at their expense.
The Need for Change
Action is needed to regulate these charges, ensure transparency in new-build contracts, and prevent management companies from exploiting homeowners. Until then, thousands of people across the country, including those in Hopton and Coton Parish, will continue to face an unfair financial burden for basic services that should have been covered by their council tax.
This system is not sustainable, and without reform, homeowners will remain vulnerable to escalating costs, legal risks, and a lack of control over the communities they live in.
