Leaseholders: Management Companies

Debate between Baroness Scott of Bybrook and Viscount Hanworth

Monday 20th May 2024 Lords Chamber

[Baroness Scott of Bybrook (Con)]

My Lords, we are looking more closely at this issue, because the noble Lord is right—sometimes it can be more difficult. We have also recognised the participation rates, which can be affected by foreign owners. We have listened to the arguments raised in Committee and by MPs in the other place, and we will continue to consider the issues raised.

[Viscount Hanworth (Lab)]

My Lords, is the Minister aware of the extent of a stratagem whereby companies have acquired freeholds with the intention of removing the leaseholder occupants by undertaking works on the properties that the leaseholders cannot possibly afford to pay for? By these means the freeholder expects to compel the occupants to sell up. What redress is there against this stratagem?

[Baroness Scott of Bybrook (Con)]

I am not aware of this strategy on the part of freeholders, but I will look into it and come back to the noble Viscount.

Leasehold Properties: Managing Agents

Debate between Baroness Scott of Bybrook and Viscount Hanworth

Monday 17th July 2023 Lords Chamber

[Baroness Scott of Bybrook (Con)]

My Lords, we are well aware of the significant issue concerning leaseholder protections where leases are extended or varied. A change to primary legislation is necessary to ensure the continuation of protection. We are looking to bring forward the necessary legislation as soon as parliamentary time allows. Obviously, compensation will be part of that discussion, I am sure.

[Viscount Hanworth (Lab)]

Is the Minister not aware that freeholders are frequently motivated to consolidate the ownership of their properties by driving the leaseholders into unsustainable debt, by dint of exorbitant service charges?

Leasehold Reform

Debate between Baroness Scott of Bybrook and Viscount Hanworth

Thursday 23rd March 2023 Lords Chamber

[Baroness Scott of Bybrook (Con)]

My noble friend is absolutely right. Leaseholder issues are complex and contain a lot of legal issues that need to be dealt with. Therefore, we need to take our time, and we are doing so, but the government manifesto says that we will deal with this issue within this Parliament, and we intend to do so.

[Viscount Hanworth (Lab)]

My Lords, the Minister will be aware that freeholders have been empowered to impose the costs of any litigation that has been initiated by an aggrieved leaseholder upon that leaseholder. When will that extraordinary anomaly in British law be corrected?

[Baroness Scott of Bybrook (Con)]

The Government recognise that the existing statutory requirements do not go far enough to enable leaseholders to identify and challenge those unfair costs. We believe that leaseholders should not be subject to unfair legal costs and should be able to claim them from their landlords, and we are taking action to address that.

Residential Leaseholders

Debate between Baroness Scott of Bybrook and Viscount Hanworth

Thursday 12th January 2023 Lords Chamber

[Baroness Scott of Bybrook (Con)]

My Lords, the Government have already committed to: making it easier and cheaper for leaseholders to extend their lease or buy their freehold; banning new leasehold houses, so all new houses will be freehold from the onset rather than in exceptional circumstances; delivering a reformed commonhold system as an alternative to leasehold ownership for flats; and giving leaseholders more information about what their costs cover and ensuring that they are not subject to unjustified legal costs. I am sorry that the noble Lord could not find time to come to a meeting that I agreed to the last time I was at this Dispatch Box talking about the same issue. It was at that meeting that we discussed what noble Lords were expecting to see and how we could meet those expectations. However, as I say, we will bring forward further leasehold reforms later in the Parliament but I cannot say at this time exactly what date it will be.

[Viscount Hanworth (Lab)]

The Minister will be aware that the property companies that own freeholds are able to impose on leaseholders any legal costs that might arise from a leaseholder’s appeal to a tribunal in the face of the freeholder’s exorbitant service charges. When will this extraordinary legal anomaly be redressed?

[Baroness Scott of Bybrook (Con)]

The Government believe that leaseholders should not be subject to unjustified legal costs and should be able to claim their own legal costs from their landlord. The Government are committed to taking action to address this as soon as possible.

Housing: Leasehold Properties

Debate between Baroness Scott of Bybrook and Viscount Hanworth

Monday 17th October 2022 Lords Chamber

[Baroness Scott of Bybrook (Con)]

The noble Baroness is right, and I can assure her that I am talking about it almost daily in the department. I will continue to do so and hope that, the next time I come to the Dispatch Box on this issue, I will have a date.

[Viscount Hanworth (Lab)]

Some of the companies issue contracts in which the small print declares that their leaseholders will be liable for any costs that the companies might incur if they are called before a tribunal. Does this have any legal sanction and, if it does, can steps be taken to prevent this happening?

[Baroness Scott of Bybrook (Con)]

I am not sure what the noble Lord is talking about. If he is talking in particular about leaseholders with a freeholder who does not have a managing agent, that can often be quite difficult. The Government are looking at that; we are looking at suitable legislation slots so as to have something in place if they do not employ a managing agent. If I am wrong on that, perhaps the noble Lord could write to me and I will answer.

[Viscount Hanworth (Lab)]

It is a clear issue and I will give the Minister instances of its occurrence.