The House of Commons report can be seen here explaining that Freehold estate charges refer to fees that homeowners in private or mixed-tenure estates must pay for the maintenance of shared areas and facilities, such as roads and open spaces, which are not managed by the local authority. These charges are typically handled by a private company or a residents’ management company (RMC), often appointed by the developer, which then hires an estate management company to oversee the upkeep.

Unlike council tax, which funds general services across a local area, estate charges specifically cover the costs of maintaining shared facilities within the estate. Freeholders on these estates, unlike leaseholders, have traditionally had limited rights to challenge these charges. However, with the introduction of the Leasehold and Freehold Reform Act 2024, freeholders now have strengthened rights to challenge unreasonable charges and poor service through a tribunal, as well as the right to request better transparency regarding the management and costs of their estate.

These reforms aim to protect homeowners from unfair practices and improve transparency in estate management, particularly addressing concerns over “fleecehold” practices where freeholders are charged high fees for services without adequate oversight.