Homebuyers could be in effect being charged twice for infrastructure including roads, sewers, and drainage as many new build developments are left entering into private management arrangements after local authorities and utility providers leave them unadopted.
In new research from the Home Builders Federation (HBF) many new build developments are passing the cost of these private management agreements on to home buyers, despite already paying council tax and water charges; effectively being double-charged for the same services. The situation is creating a ‘fragmented, unfair system for homeowners and builders alike’ said the HBF.
According to research conducted by the body, just 10% of developments where ten or more homes have been built in the last three years have had their roads adopted by local authorities. 97% of new sewers and 98% of sustainable drainage systems (SuDs) also remain unadopted, after a freedom of information request from the UK’s six largest water companies showed that just 3% of sewer adoption applications were completed over the past three years. Similarly, only 2% of SuDs applications were successful. Typically local authorities will not adopt roads until sewers are formally adopted and so delays in adopting sewer systems delays the adoption of roads.
There are geographical inconsistencies say the HBF; one third of councils surveyed had no roads adopted at all in new developments built in the last three years, and only one council reported that 100% of new roads were adopted.
The issue has been brought to the attention of the government at a roundtable hosted by Alistair Strathern MP (Lab, Hitchin) with MPs and representatives from across the home building industry. The roundtable identified a number of barriers to adoption including the increasing cost, inconsistencies in local authority design requirements, and the length of time it takes to go through the adoption process.
Alistair Strathern MP for Hitchin, added
“This research highlights the endemic scale of the unadopted estate challenge affecting new homeowners right across the country.”
“It can’t be right that families on unadopted estates are being left on the hook for increased costs, paying again for services others receive through council tax, with little recourse over shoddy works or sky-high bills.”
“I’m delighted Labour is committed to acting on this in our manifesto, and I’ll be working closely with Ministers, councils and housebuilders to ensure we do”
The Competition and Markets Authority (CMA) has already called for the implementation of a commons adoptable standards for public amenities in its recent Housebuilding Market Study. It also called for the introduction of mandatory adoption infrastructure on new housing estates, with limited exceptions. HBF has added it’s own weight behind the introduction of statutory timelines for adoption agreements, a review and reform of financial requirements of highway bonds, local authority capacity and resourcing, and reducing relevant bills for residents of households on new estates with unadopted amenities.
Commenting, Neil Jefferson, Chief Executive at the Home Builders Federation, said
“Unadopted housing estates leave homeowners unfairly burdened with ongoing costs whilst placing a significant strain on house builders.”
“Home buyers are being forced to pay service charges for essential services such as roads, drainage, and sewers, alongside their Council tax, which should cover such services to be provided and maintained by public authorities.”
“I welcomed the opportunity to discuss this important issue with MPs… and to build support for raising awareness of the urgent need for action.”
“As the Government works to hit its 1.5 million new homes pledge, it must pay attention to bottlenecks to delivery, such as the incredibly poor adoption of essential infrastructure. A consistent, transparent, and efficient adoption process is essential to create a fairer system for both house builders and future homeowners.”
3 responses
Lord Gascoigne’s call for stronger ministerial leadership on the new towns programme is timely—but leadership alone won’t fix the systemic failures already undermining new housing developments. As Today’s Conveyancer reports above, 90% of new roads, 97% of sewers, and 98% of SuDS on recent housing estates remain unadopted. This leaves homeowners trapped in private management schemes, paying twice for basic services while councils and developers dodge responsibility.
With buyers facing opaque service charges and fragmented estate management, conveyancers must be empowered to flag risks and demand transparency. Lawyers can help shape locally led development corporations with clear statutory powers, avoiding the pitfalls of voluntary arrangements and weak oversight.
If the government is serious about delivering new towns with integrity, it must embed property lawyers into the programme’s design and governance—not just as post-facto trouble shooters, but as proactive architects of enforceable, equitable frameworks. As Gascoigne rightly notes, “all roads lead back to Downing Street”—but without legal rigour, those roads may never be adopted.
The Conveyancing Task Force is considering these issues as parts of a broader response to the government’s consultation on homebuying reforms.
This is a matter which only the Government can resolve. All that a solicitor acting for a buyer of one of these homes can do is to point out the situation to the client (and suggest they might like to buy elsewhere). In many cases, the obligation to pay a service charge, to cover the cost of maintenance of the infrastructure of the development, is backed up by a “rentcharge”. This is an iniquitous legal device which empowers the rentcharge owner (the developer or a management company) to enforce payment by the homeowner in a draconian manner, which can result in the homeowner losing the property, or it being made unsaleable by the imposition of a 99 year lease to a crony of the rentcharge owner. I have always tried to persuade my client not to buy such a property. Usually, however, the client still proceeds, smitten by “the stars in their eyes” over their lovely new home. On one occasion, I did manage to persuade a developer’s solicitor to amend the terms of the Transfer deed, to include a provision that the draconian enforcement provisions could not apply. This effectively eviscerated the rentcharge and the Land Registry telephoned me 3 times during the registration process, to check that it was not a mistake.
The reality of the u adopted roads situation is so much worse than just an extra cost. Managing Agents are often awful – looking for extra ways to increase their income through capital works (under the guise of HSE) and not acting on important tasks sucb as pest control issues, security gate fixes, lighting issues for years. Residents are powerless. It is awful and I will never buy another such property.