The consultations, ‘Enhanced Protections for Homeowners on Freehold Estates’ (England & Wales) and ‘Reducing the Prevalence of Private Estate Management’ (England), consider how the current system governing privately managed estates operates, and what changes may be required to improve transparency and long-term sustainability. UK Finance have provided high-level responses to these consultations which address the concerns of its members across the mortgage lending community.

Across both responses, broad support has been given to measures which enhance transparency, reduce homeowner risk, and promote the maintained, long-term value of residential property assets.

In our response to Enhanced Protections for Homeowners on Freehold Estates, UK Finance focuses on measures designed to strengthen the rights and safeguards available to homeowners. Members support the exclusion of the enforcement remedies under section 121 and section 122 of the Law of Property Act 1925, as this improves protection for both homeowners and mortgagees. Regarding the implementation of the Leasehold and Freehold Reform Act 2024, members also support proposals to increase the accountability of estate managers, including measures to improve the transparency of charges, and measures enabling homeowners to challenge the reasonableness of estate management charges (EMC’s).

Responding to Reducing the Prevalence of Private Estate Management, members support the mandatory adoption of essential infrastructure by local authorities and utilities, to reduce the need for private charging and enforcement mechanisms and mitigate the associated risks to homeowners and mortgage security. Supporting this, members are in favour of the introduction of common national standards for amenity adoption, the removal of financial incentives for non-adoption, and improved transparency around EMC disclosure, among other proposals.