Government rejects proposal to end ‘extortion and corruption’ of ‘fleecehold’

Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Sign up to our free Morning Headlines email SIGN UP I would like to be emailed about offers, events and updates from The Independent. We need to solve these problems for existing residents, which is why I welcome the current measures in the Bill, but we also need to prevent this model from being used in the future or we will be deliberately piling up problems for the new home buyers of tomorrow.” Lady Finn told the House of Lords that when a developer hands over the running of parts of an estate to another company, the developer pays less in certain charges and the council “abdicates the responsibility” to maintain those assets. These are very important issues that must be carefully considered, but they are not things the Bill can fully address Baroness Scott of Bybrook Lady Finn said: “I recognise and welcome the provisions in the Bill that currently provide additional redress for people trapped in ‘fleecehold’, but it is important to make sure that no more people become accidental ‘fleeceholders’. “’Fleecehold’ has become prevalent, not because of any policy decision by an elected government, but rather as a way for developers and managing agents to make more money at the expense of unsuspecting home owners.” However, housing minister Baroness Scott of Bybrook said: “These are very important issues that must be carefully considered, but they are not things the Bill can fully address. Labour frontbencher Baroness Taylor of Stevenage said it is a “regime that fleeces home owners with unexpected and extortionate charges” and residents on these estates are “trapped in extortive relationships with unaccountable management companies”.