'We're held to ransom by our housing estate's management fees'

A group of homeowners have challenged a "fleecehold" system which has seen them pay rising fees for the management of their housing development.

Residents of The Potteries in West Yorkshire say they are being "held to ransom" by Blue Property Management UK, which charges them £209 per year for ground maintenance as well as additional costs.

Some householders have incurred charges for having changes made to their property deeds and one man was fined after a payment request was delivered to his home after a deadline had passed.

The action group's members - from 80 households - say that communal areas are not maintained despite the levy, with weeds and dead vegetation left uncleared.

Blue Property Management UK says it takes residents’ concerns seriously and is arranging a meeting with the group in the new year.

The government estimates that almost 2m newbuild homes are subject to annual estate management fees.

They are in place to cover public areas whose upkeep has not been adopted by local councils, and pay for maintenance tasks such as gardening.

Residents own their homes and the freeholds, but still have to pay the uncapped and unregulated management fees.

The term widely being used by those affected is a “fleecehold” situation.

In December 2025, the government said it was aware of the “injustice” and was determined to bring in new legislation to strengthen homeowners’ rights.

The Potteries, in Allerton Bywater near Castleford, is part of a "Millennium Village" housing renewal site on former industrial land.

Developer Keepmoat Homes built 180 units on the old colliery and earthenware manufacturing site. Blue Property Management UK was then contracted by Keepmoat to manage the estate.

Andrea Jones and Lee Gilbert wanted to add her name to the property deeds of their house on The Potteries.

The total bill was £1,153, which included a fee of £570 to Blue Property Management and £300 for a solicitor.

Jones says: “They didn’t do anything for the £570, it was just to agree that my name could go on the deeds.”

Asked how she felt, she says: “Shafted - it’s not right.

“I knew we had a fee to pay every year but I didn‘t realise they would charge us for things like that.

“I think if we decided to sell the house there would be a fee for that as well.”

Gilbert adds: “It is freehold, not leasehold, but it seems like we don’t own the house.

“It feels like they have control.“

Another resident recently paid £1,043 to Blue Property Management UK in admin and paperwork fees to sell her home.

The annual fee residents paid in 2015-2016 was £98 per property, but it has since risen to £209.

David Lowe has lived in his home for six years and had never missed paying his annual charge.

Then last year, he says his bill arrived in the post after the deadline to pay had passed, and he was given a £60 fine.

He expected Blue Property Management to waive it when he explained the postal delay, but was simply told to “take it up with the Post Office” and was forced to pay.

He says: “I was gutted really and it was annoying because I was helpless.”

Another resident who was also issued with a fine is Chris Rhodes, who says: “We are just held at ransom.

“We were just told when buying it that there would be a low service charge, but whenever you get a letter from them you just think, ‘oh no that‘s more money going out!’ ”

Rhodes asked Blue Property Management to justify the £60 he was billed on top of his service charge, and says that he was told it was to cover sending another letter.

In his case, he was able to persuade the company to waive the fee, but only after he threatened to take the company to a tribunal.

The action group's spokesman is Joshua Bray, who moved into his brand new home five years ago.

He says: “We are seeing random charges.

“They charge us for what they want and hide them under broad statements like maintenance, landscaping, management but whenever you ask them what they have done, they just hide and say ‘no, we don’t have to show you anything’.

“We have got about half the estate signed up to this group now.

“We just wanted to turn around and say ‘no, we have had enough.’ ”

He says people wanting to sell their homes could have the deals legally blocked by Blue Property Management, and there is unhappiness with the condition of public areas of the estate.

“You can see so many bare patches of land where they have just sprayed weedkiller everywhere.

“There are dead trees everywhere and they don’t replace anything.

“A tree will die and you get gaps everywhere and it really ruins the look of the estate.”

A spokesperson for developer Keepmoat said: "We are very disappointed by the volume and breadth of concerns raised by residents about management fees and the service provided by Blue Property Management.

“It is clear that some of our customers feel very let down and we are truly sorry for that.”

Keepmoat says it is still working proactively with the management company and customers to ensure issues are addressed and it welcomes the planned new legislation to regulate estate management.

In their statement, Blue Property Management added: “We work to ensure that costs are competitive and affordable, and we regularly approach local contractors to obtain competitive rates.

“We also engage with contractors nominated by residents where appropriate.

“We have received concerns regarding payment dates, charges and payment arrangements.

“These matters have been reviewed and addressed, and information regarding payment arrangements and payment plans has been communicated to residents.”

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