What is PEST?

By Nige on April 11, 2025 at 10:56 am
Type: Post Category: Freehold
Tags: Developers | Local Planning Authorities | Management Companies | Managing Agents | PEST | Premature Estate Service Transfer

PEST stands for Premature Estate Service Transfer. It applies to a situation where a developer transfers responsibility for maintenance of open space, play area or other communal facilities prior to them being formally signed off and handed over.

It’s proving to be an expensive situation that freeholders find themselves in, and helps to save developers £millions in maintenance costs every year.

But there may be a way out!

Quick Links

• Why Does this Happen?
• How Many Developers Play this Game?
• What’s the Potential Solution?
• Why is this Important to Clients of Residents First?

Why Does this Happen?

Typically a developer commits to transferring open spaces, play areas and communal facilities over to a body that will take on enduring maintenance responsibility.

That body is normally a Management Company (MC), or in some cases it might be a Local Authority (LA).

Those commitments appear as obligations set out in an S106 legal agreement between the developer and the Local Planning Authority (LPA).

How Many Developers Play this Game?

PEST appears to be prevalent behaviour on behalf of most developers.

Residents First has seen this on almost all freehold clients it has been engaged by and saves developers £millions of pounds across the UK.

Residents First suspect this is going to be a really big news story across the country in the next 12-18 months.

What’s the Potential Solution?

Firstly, any solution is dependent on the details set out in your S106 and TP1/TR1. The devil is always in the detail.

That’s why engaging with someone like Residents First, who is committed to supporting residents and providing bespoke advice is important. Get some help – you don’t need to fight this on your own!

Residents First has a potential solution which is based on some basic legal arguments and the Money Claim Online (MCOL) process, but we need to prove this works with a real client before we go into any more detail.

So watch this space!

Why is this Important to Clients of Residents First?

Almost all of our residential clients have reported that they have suspected something fishy going on. Homeowners starting to receive service charge bills prior to their open space or play area being completed.

Residents First has been tirelessly pushing for local and central changes to the S106 process to tighten up on the rules and avoid perceived loopholes.

Hopefully, all Residents First freehold clients will soon be able to retrospectively claim the repayment of unfair service charges from developers exploiting the S106 system.