Leasehold and Commonhold Reform

Debate between Lord Sharma and Liz McInnes

Thursday 21st December 2017 Westminster Hall

[Alok Sharma]

My hon. Friend makes an interesting suggestion. I will take that away and come back to him.

Certainly, in bringing forward legislation we will continue to work with stakeholders, including the APPG, to ensure the best outcomes for consumers. We have heard many ideas in this debate. We want to ensure that our plans do not have an adverse impact on supply, and we will work with the sector to consider the case for exemptions.

It is important that we get the detail right. We are committed to ensuring that our reforms deliver a fairer and more transparent system for both existing and future leaseholders, and to stamping out the leasehold abuses that have existed to date. I have written formally today to the hon. Member for Ellesmere Port and Neston to confirm that I welcome the opportunity to meet him early in the new year to discuss further his thoughts for a Bill. I am open to a dialogue with the APPG about our thoughts as we move forward.

A number of colleagues have talked about building regulations. As we know, on Monday Dame Judith Hackitt published her interim independent review of building regulations and fire safety. It is important that leaseholders have access to specialist advice to understand their rights. The hon. Member for Poplar and Limehouse, the hon. Member for Brentford and Isleworth and my hon. Friend the Member for Worthing West mentioned LEASE; we can confirm that the Secretary of State announced on 4 December that the Department for Communities and Local Government is providing additional funding to the Leasehold Advisory Service over 2017-18 and 2018-19 to provide a dedicated advice and dispute resolution service for those leaseholders affected. I can also confirm that we will conduct an internal review of the wider landscape of support and advice to leaseholders, to ensure it is fit for purpose in the new legislative and regulatory environment.

To cover a few other points that were raised, the hon. Member for Greenwich and Woolwich (Matthew Pennycook), the hon. Member for Battersea (Marsha De Cordova), the hon. Member for Poplar and Limehouse, the hon. Member for Brentford and Isleworth and, of course, the shadow Minister raised the issue of costs related to cladding. The Secretary of State has said that local authorities and housing associations with which we are engaging are not passing on the costs of essential works. He has also encouraged private sector freeholders to follow suit, and some have. I spoke to L&G, the company mentioned by the hon. Member for Brentford and Isleworth, and I am delighted with the approach it is taking. I realise there are some instances where costs are being passed on. That is why we are providing additional funding to LEASE, as I have just mentioned, to provide leaseholders with the advice and support they need.

Colleagues have raised a number of issues. The right hon. Member for Delyn asked about homes built in Wales by companies that are not from Wales. Of course, whether Wales abolishes leasehold is a devolved matter. However, I can confirm that my officials have been working with the Welsh Assembly to inform them of our plans on leasehold, and we will continue to liaise with them.

My hon. Friend the Member for Worthing West talked about forfeiture. I can confirm that that is being considered by the Ministry of Justice. There are protections in place, but I agree that reform is needed. We will continue to work with the Ministry of Justice to take this matter forward. I also noted his point about the National Trust, but as he knows, National Trust properties are exempt from enfranchisement under the Leasehold Reform Act 1967.

If I understood him correctly, my hon. Friend the Member for Witney (Robert Courts) asked whether we were looking to abolish leasehold. Leasehold needs reform, and although in certain cases it is an established structure that can work well, we want to make sure that there is fairness in the way that the system operates.

[Liz McInnes]

The Minister has not addressed the point that I raised. I wrote to him several weeks ago about my constituents receiving unreasonable demands from the landlord for payments for historical alterations. I would appreciate it if he would commit to answering that letter.

[Alok Sharma]

Let me apologise to the hon. Lady if we have not been answering our letters in a timely fashion. I will make sure that that letter is answered as a matter of urgency. She is absolutely right. She raised the issue about limited ground rents and the impact on leaseholders. As I said earlier, we have asked developers to contact homeowners regarding unfair terms. We will keep a close eye on that, and I will respond more fully to her.

I hope colleagues feel that we are making progress, and that we understand there is more to do on this. We said earlier this year that we would act, and I believe that we have done that so far. We are resolved to reforming leasehold, and ultimately to promoting fairness in the system.

Oral Answers to Questions

Debate between Lord Sharma and Liz McInnes

Tuesday 18th October 2016 Commons Chamber

[Alok Sharma]

This is of course a very important matter, and we raise these issues with both Governments. Ultimately, however, it is for both sides to progress the issue and determine the outcome.

[Liz McInnes (Heywood and Middleton) (Lab)]

On behalf of the Opposition, I associate myself with the Minister’s remarks. The recent upsurge in violent clashes and terrorist attacks in Kashmir is deeply disturbing. We urge all sides to engage in dialogue, halt the cycle of violence and keep innocent civilians from harm. We have heard today about the use of pellet guns against protesters in Kashmir, which is totally unacceptable. Will the Minister and the Secretary of State urge the Indian authorities to make good on their commitment to stop the use of those weapons?

[Alok Sharma]

As I have noted on a number of occasions, the use of pellet guns in Kashmir has come under review by the Government of India, and our understanding is that alternative methods of crowd control will be introduced.