Leasehold Reform (Ground Rent) Bill [HL]

3rd reading
Tuesday 14th September 2021 Lords Chamber

Third Reading

15:19

[Lord Ashton of Hyde (Con)]

My Lords, I have it in command from Her Majesty the Queen and His Royal Highness the Prince of Wales to acquaint the House that they, having been informed of the purport of the Leasehold Reform (Ground Rent) Bill, have consented to place their interests, so far as they are affected by the Bill, at the disposal of Parliament for the purposes of the Bill.

[The Minister of State, Home Office and Ministry of Housing, Communities and Local Government (Lord Greenhalgh) (Con)]

My Lords, before we progress with Third Reading, I will make a very brief statement and update on legislative consent in respect of the Bill. As the UK Government have made clear throughout the earlier stages of the Bill, we are committed to working closely with the Welsh Government on this legislation in order for it to be of the greatest benefit to leaseholders in both England and Wales. While the law of property is a restricted matter under the Government of Wales Act 2006, we have worked closely with our colleagues in the Welsh Government and taken note of their views in a spirit of collaboration and joint working. This has led to a series of amendments to ensure that the Bill works in the best possible way for the benefit of leaseholders wherever they live.

In summary, these amendments transfer executive competence to Welsh Ministers, meaning that the Bill now engages with the legislative consent process in the Senedd Cymru. The Welsh Government laid a legislative consent memorandum for the Bill before the Senedd in May this year, and we have had continued correspondence with Ministers advising that they share the same policy ambitions as the UK Government in this area. Senedd Cymru has not yet considered its position on legislative consent at this relatively early stage in the Bill’s passage through Parliament. However, I assure noble Lords that we are intent on securing legislative consent for this Bill and will continue to work with the Welsh Government in order to realise this ambition.

Motion

Moved by

[Lord Greenhalgh]

That the Bill do now pass.

15:21

[Lord Greenhalgh (Con)]

My Lords, I start by thanking noble Lords from all sides of the House for the constructive approach that they have taken to this important legislation. The Bill leaves your Lordships’ House as better legislation than when it arrived, and I thank noble Lords for their engagement with me both here and elsewhere. Leasehold legislation can be incredibly complex, but we are lucky in this place to have the benefit of a vast amount of knowledge and experience on these matters. I express my gratitude in particular to my noble friends Lord Hammond of Runnymede and Lord Young of Cookham, and to my noble and learned friend Lord Mackay of Clashfern, for the time they have given to me and my officials in sharing their knowledge and expertise, which has led directly to amendments that have improved the Bill.

I am pleased to say that there has been recognition across the House of the importance of getting this Bill on the statute book. I thank the noble Lord, Lord Lennie, and, before him, the noble Lord, Lord Kennedy of Southwark, on the Benches opposite, for the constructive nature of the conversations that we have had on this legislation. I also pay tribute to the noble Baroness, Lady Grender, for her work on the Bill, particularly on the vital issue of transparency.

There were, of course, other issues raised with the Bill. I thank the noble Lords, Lord Best and Lord Stunell, the noble Baroness, Lady Greengross, and my noble and learned friend Lord Mackay of Clashfern, for their engagement on the issues of the retirement sector and the transition period that the Government have proposed. Noble Lords who have been carefully watching the Bill’s progress will know that there have been competing views on the length and, indeed, existence of this transition period, including how it should apply to developments that are part-sold. While I remain convinced that our proposal strikes the right balance between the sector and consumers, I have appreciated debating the issue with noble Lords.

I thank the noble and learned Lord, Lord Etherton, and the noble Earl, Lord Lytton, for their scrutiny of the Bill; both have made valuable contributions to the debate. My thanks also go to the officials who have worked so hard to get us to this position: the Bill team of Jo Cagney, Rosie Gray, Tom Sedgwick, Sema Ashami, Isabel Hendy, Jenny Frew, Ian Martin, Harriet Fisher, Elly-Marie Connolly and David Gethin, my own private office, Sam Loxton, the Whips, Senedd officials, the Office of the Parliamentary Counsel and clerks in this place.

Finally, I will take the opportunity to thank the Competition and Markets Authority for its work on behalf of existing leaseholders who have found themselves at the sharp end of unfair practices in the leasehold sector. The CMA’s ongoing investigation is playing a vital role in reforming and improving the sector, and I am sure that the whole House will want to join me in paying tribute to its efforts. The Bill will provide transparency and fairness to a new generation of leaseholders. It is a vital first step towards realising our vision of a reformed and improved leasehold system free from the unfair practices that have been the experience for far too many homeowners. I beg to move.

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, I join the Minister in thanking Members on all sides of the House for their contributions and expertise in working to get the Bill to where it is today. I also thank the Minister, the noble Lord, Lord Greenhalgh, for his courtesy in his dealings with my noble friend Lord Lennie and myself. We appreciate that very much. I also thank all the officials and his Bill team for their work with us. I place on record my thanks to Ben Wood and the office of the Leader of the Opposition for the work that they did.

My involvement was in the Second Reading of the Bill. I then became the Chief Whip, so I departed the scene, leaving it all to my noble friend Lord Lennie. I have come back to make these final remarks as my noble friend cannot be here today. I thank him in particular for all the work he did in taking up the Bill very much at short notice. I think we have made the Bill better than it was when it first came to this House. This is the first stage in leasehold reform; there is very much more to be done. We look forward to the work of the Law Commission and to a Bill that will address other leaseholder problems—but this is a good first stage and I am very happy with where we have got to so far.

[Lord Stunell (LD)]

My Lords, I too offer my thanks to those who have contributed to the improvement of the Bill and, in particular, to say that the Minister has been exceptionally helpful and generous with his time in proceeding with it through Committee and at the intermediate stages. My noble friend Lady Grender would have liked to be here, but I am speaking in her place on this occasion.

I have given notice to the Minister that I believe there is one aspect of this that still requires a word of clarification, which I hope he will be able to give as we move on. It is clearly very important that this Bill makes rapid progress, and even more important that the second Bill, long promised, follows close on its heels. The issue relates to retirement homes and those blocks that are partially occupied at the time that the changes instigated by this Bill come into force. There is a serious risk of a two-tier market in those blocks if this is introduced wholesale across every part of the same block. I hope that the Minister will be able to clarify the Government’s intent and the effect of this legislation, so that those who have made representations to me can have some understanding of the direction in which this legislation will now proceed. With those few words, I am very happy to see the Bill pass into law.

[Lord Greenhalgh (Con)]

My Lords, I thank the noble Lord, Lord Stunell, for giving me advance notice of his question. I have pushed to give him a clear answer on that. It is clear that there is a transition period until 1 April 2023. The Government propose not to exclude part-occupied developments from that cut-off period once the legislation takes effect, which will obviously be later than for all other areas. That is the balance that we are trying to strike, in the interests of consumers but also of the sector.

Bill passed and sent to the Commons.