Sewer and road adoption information
This page provides important information for residents regarding the adoption of sewers and roads within new housing developments, particularly in light of the recent Stewart Milne Homes administration. Adoption means that the sewers and roads become the responsibility of the council (roads) and United Utilities (sewers). Until that time, the responsibility rests with the landowners.
Site by site detailed status of road and sewer adoption:
Sewer adoption - Section 104 agreement (United Utilities)
Information regarding sewer adoption and Section 104 agreements is handled by United Utilities ( UU ). For specific enquiries related to sewer adoption, please contact United Utilies directly.
Road adoption - Section 38 agreement
A Section 38 agreement (S38) is a legal agreement under the Highways Act 1980. It's used when a developer proposes to build a new road for residential, industrial, or general traffic, which may be offered to Cheshire East Council for adoption as a publicly maintained highway. As part of this agreement, the developer deposits bond monies with an appointed Bondsman. These funds are specifically designated to complete unfinished roadworks, ensuring the road can be adopted even if the developer enters administration.
Why construction can proceed without a Section 38 agreement
Developers building on their own private land are not legally required to enter a S38 agreement with the council. Some developers choose to maintain their development infrastructure privately, managed by a resident-funded management company. It is the developer's responsibility to initiate the adoption process by approaching the council. Once initiated, a legal agreement is established, and regular inspections are conducted during construction to ensure the works meet the required standards for council adoption. The Council has no power to compel a developer to put a road up for adoption or enter into a S38 agreement.
Why construction can proceed without a Section 104 agreement (United Utilities)
Information regarding the ability of Stewart Milne Homes to progress with construction without a Section 104 Agreement, is handled by United Utilities ( UU ). Please contact UU directly for specific enquiries.
Current adoption status and next steps for Stewart Milne Homes sites
At the time of Stewart Milne Homes' administration, the seven sites within Cheshire East were at varying stages of completion, with differing statuses regarding S38 and S104 agreements. Cheshire East Council and United Utilities are jointly preparing site-specific letters for each former Stewart Milne Homes development. These letters will detail the adoption status of sewers and roads and outline the next steps for residents. Residents of these sites can expect to receive these letters shortly.
Use of bond monies for remedial works
It's important to understand that S38 agreements only cover the specific works outlined within the agreement. Bond monies from one phase of a development cannot be used to fund remedial works in another phase without an agreement. Additionally, bond monies are not transferable between S38 and S104 agreements.
Impact on property sales
Cheshire East Council and United Utilities are committed to working to provide options for completing the adoption process where possible. However, if sewers cannot be brought up to an adoptable standard, or the cost is prohibitive, the council cannot adopt the roads – as the sewers must be adopted before the roads can be adopted. If you are encountering issues selling your property due to the lack of S38 or S104 agreements, it is strongly recommended that you consult with the solicitor who handled your property purchase. They can advise you on why the purchase proceeded without necessary assurances and copies of the S38 agreement.
Page last reviewed: 07 April 2025
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