Roads, sewers and drainage on new estates are privately managed after public bodies do not ‘adopt’ them, with costs passed on to homeowners
A growing number of new housing developments are being left with roads, sewers, and drainage that are ‘unadopted’ by the relevant local authority or utility provider, creating a fragmented, unfair system for homeowners and builders alike, according to new research from The Home Builders Federation.
Without public bodies adopting responsibility for roads and essential infrastructure, home builders are required to enter into private management arrangements. This shifts the financial burden of maintenance onto homeowners, who still pay full council tax and water charges, effectively being double-charged for the same services.
The findings show that of the developments of ten or more homes built in the last three years, just 10% of sites have had their roads adopted by local authorities, leaving 90% to be managed by private companies. Additionally, a staggering 97% of new sewers and 98% of sustainable drainage systems (SuDs) also remain unadopted, years after construction.
The research was launched at a roundtable hosted by HBF and chaired by Alistair Strathern MP (Lab, Hitchin) in Parliament today, with MPs and representatives from across the home building industry, where Alistar commented that the issue was endemic, and highlighted Labour’s intention to remedy the problems faced by home builders, local authorities and residents and bring forward much needed housing.
The research revealed significant inconsistencies across local authorities. 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.
Delays in sewer adoption further compound the issue, as local authorities will not adopt roads until sewers are formally adopted. FOI data 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.
While adoption of amenities is the most desirable solution, a number of barriers are blocking this, including the increasing cost of adoption - for bonds, commuted sums and inspection fees – inconsistencies in local authority design requirements, and the length of time it takes to go through the adoption process.
The Competition and Markets Authority (CMA) identified this critical issue in its recent Housebuilding Market Study, calling for urgent reform. The CMA recommended that Government implement a common adoptable standard for public amenities across England, Scotland and Wales. It also called for the introduction of mandatory adoption infrastructure on new housing estates, with limited exceptions.
HBF is calling for the Government to address the CMA recommendations as well as introduce statutory timelines for adoption agreements, review and reform of financial requirements of highway bonds, local authority capacity and resourcing, and reduce relevant bills for residents of households on new estates with unadopted amenities.
Alistair Strathern MP for Hitchin, said: “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”
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 today 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.”