Property Development: Insolvency
The question
To ask the Secretary of State for Housing, Communities and Local Government, whether he plans to review the processes for adoption of (a) roads and (b) common areas on estates where the developer has become insolvent.
Answered by Matthew Pennycook
Decisions on whether or not to adopt roads is a matter for the relevant local highway authority.
Land may become ‘ownerless’ where a developer has become insolvent. The Law Commission announced on 4 September 2025 that they will undertake a project on ownerless land as part of their 14th Programme of Law Reform, which will aim to clarify the law in this area. As part of their 14th Programme, the Law Commission are also undertaking a project on the management of freehold housing estates. Details of both projects can be found on the Law Commission website here.
The government is determined to end the injustice of 'fleecehold' entirely and we will consult this year on options to reduce the prevalence of private estate management arrangements, which are the root cause of the problems experienced by many residential freeholders.
I otherwise refer the hon. Member to the Written Ministerial Statement made on 21 November 2024 (HCWS2440).
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