FLEECE-HOLDERS
We are being forced to sign ‘inappropriate’ NDAs just to see details of crippling new-build housing fees we have to pay
New-build homeowners would be unable to discuss the fees after signing the agreement
NEW-BUILD homeowners have revealed they must sign an NDA if they want to see details of their soaring fees.
Residents across the UK have been told they need to sign a non-disclosure agreement (NDA) to see what their money is being spent on, according to the Homeowners Rights Network campaign group.
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Non-disclosure agreements (NDAs) are legal contracts which prevent people from sharing information.
That is trying to gag people when they may not be receiving a reasonable service.
Bob Blackman
Documents and emails have revealed that residents on a new-build estate in Newcastle were asked to sign an NDA after requesting to see the invoices behind their fees, claims.
The Department for Levelling Up, Housing and Communities has promised to investigate and claimed the findings were "shocking" and that "the use of NDAs in these instances is completely inappropriate".
Bob Blackman, a Conservative MP and member of the Housing Select Committee, told i: "That is absolutely unacceptable.
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"That is trying to gag people when they may not be receiving a reasonable service."
Around 80 per cent of new homes built by the 11 largest housebuilders in 2021 and 2022 faced uncapped fees which can increase over time, according to the Competition and Market Authority (CMA).
Homeowners said they previously found it difficult to get answers about their estate charges which can be used for paying for public spaces, roads, sewers and playgrounds on housing estates.
A watchdog in February concluded that these fees "are often high and unclear".
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They added that the councils should manage public amenities by using public funds.
This used to be standard practice in previous decades and local authorities were given a fee from developers to manage them.
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However, a report suggested that local authorities have claimed developers may be unwilling to pay this sum, according to a 2020 Welsh Government report.
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NDA DISPUTE
Andy Harrison, A Newcastle Great Park estate resident, who pays around £270 a year, has described the use of NDAs as "an absolute farce".
He refused to sign it after learning it was on the condition of seeing the invoices at the management company's office.
Documents and emails suggest that homeowners have a right to view how their invoices are being used.
Yet, the management company, Newcastle Great Park Estates LTD, said that to "protect confidential information of third parties”, they could only view this information if they signed an NDA.
Homeowners are also barred from taking any photos of the documents in the room and were told requests for copies may be refused.
Micheal Forster, 43, said he's spent years disputing the fees with management.
His most recent bill was around £400 a year.
The accountant claims they have no "defence" with management able to put any amount they want and they'd be forced to "pay it".
"There’s no way you can get out of it," he said.
"Because we’re freeholders, we don’t have the right to challenge it in a court and they’re fully aware of that."
Jamie Robinson, 39, chair of the residents' association, said he found the use of NDAs on his estate "unusual and odd".
The teacher added that many who signed the document were still left with many unanswered questions about the invoices.
He explained: "Lots of first-time buyers like I was – or people who don’t know about new estates and these estate charges, which are uncapped, unregulated, and there’s no transparency or accountability – they’re not really fully informed about what’s going on."
Newcastle Great Park has around 3,000 homes, office spaces, a school, a nursery and sports facilities, making it the largest housing development in the North East.
Residents on the estate saw their charges double between 2020 and 2022, from £215,000 to £435,000.
Residents are now paying three times more for emptying bins in public spaces on the estate than what the council charges for a similar service, according to Jamie.
When he bought his new-build property in 2016, he was urged by the developers to use their recommended solicitor.
Now, Jamie believes the solicitor should've done more to explain the estate charge which was initially around £80.
The fee was primarily for grass-cutting and it was only once he moved in that he realised he was paying a lot more than that.
Jamie nearly faced eviction after refusing to pay the fees in protest but resumed paying them once he realised how difficult it would be to dispute.
Cathy Priestley, coordinator of the Homeowners Rights Network, a campaign group focused on estate charges, revealed they have reports of NDAs being used in other parts of the country.
She also claimed that some homeowners have had to travel as much as 100 miles to the head offices of the managing agent to see the accounts.
The NGP Consortium - a partnership between Taylor Wimpey and Persimmon Homes which developed the estate claimed its policy is not to request NDAs.
A spokesperson for the NGP Consortium said: "Management companies across the country have had to increase service charges, as local authorities have with council tax, to reflect rising prices and costs of labour, fuel and materials charged by contractors."
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The Sun has approached the NGP consortium and Newcastle Great Park Estates LTD for comment.
What is a non-disclosure agreement?
- A non-disclosure agreement (NDA) is a legal agreement signed between two parties to share secret information or to keep trade secrets confidential.
- It is a contract through which the parties agree not to disclose information covered by the agreement, such as patient-doctor confidentiality or lawyer-client privilege.
- Recently, we have seen NDAs being used a lot to prevent people from speaking out.
- In October 2018, Court of Appeal judges temporarily barred the Telegraph from publishing "confidential information" from five employees about a figure the paper described as a "leading businessman".
- The paper wants to reveal what it calls "alleged sexual harassment and racial abuse of staff", who have been prevented from discussing their claims by the NDA.
Is it the same as a gagging order?
- Non-disclosure agreements require parties to keep confidentiality for a defined period.
- It is up to the parties to decide what would be considered confidential and what is not.
- They are enforced by a breach-of-contract action.
- But gagging orders are issued by the courts and may be enforced with contempt of court offence.
- A court or government will restrict information or comment from being made public.
- A gagging order may also limit press freedom by restricting access to information.
What happens if a non-disclosure agreement is broken?
- Once confidential information enters the public domain there is a question as to how an NDA could be enforced.
- For instance, if there is an agreement that is broken and the subject is of public interest - there is a strong argument to suggest it should not be covered up.
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