Leasehold Reform (Amendment) Bill

Baroness Williams of Trafford Excerpts

Friday 7th February 2014 Lords Chamber

Moved by

[Baroness Williams of Trafford]

That the Bill be read a second time.

[Baroness Williams of Trafford (Con)]

My Lords, this very specific Leasehold Reform (Amendment) Bill will correct an anomaly that currently exists in the Leasehold Reform, Housing and Urban Development Act 1993 that requires leaseholders of flats who wish to participate in enfranchisement or to extend their leases to have personally to sign those notices. The Bill provides that where notices are served under Sections 13 and 42 of the Act they are no longer required to be signed personally by a leaseholder but may be signed on their behalf.

I begin by congratulating Philip Hollobone MP and David Nuttall MP, who steered the Bill through the other place. It has enjoyed cross-party support and, appropriately for a Private Member’s Bill, is clearly defined in its aim and does not seek wholesale reform, which I hope will ensure its safe passage through your Lordships’ House. I also thank the Association of Leasehold Enfranchisement Practitioners, whose work in campaigning for improvements in leasehold legislation over the years has yielded some very helpful advice, both in the other place and in my preparation for today.

I must declare an interest in this subject as detailed in the Register of Lords’ Interests. Section 13 of the Leasehold Reform, Housing and Urban Development Act 1993 provides the right for leaseholders of flats to participate in collective enfranchisement and Section 42 provides for leaseholders to extend their lease. At present, notices under both these sections can only be signed personally by the leaseholder and not by a person acting under the power of attorney or under direction from the Court of Protection. The wording of the legislation states that these notices must be,

“signed by each of the tenants, or (as the case may be) by the tenant, by whom it is given”.

This wording has since been interpreted by the courts to mean that the notice must be signed personally by the leaseholder. The amendment would thus allow a person such as a solicitor or a relative who has appropriate authority to sign on the leaseholder’s behalf.

The types of individual that this amendment might assist are in many cases the most vulnerable in our society: for example, those who are physically unable to sign because of a disability, those who are seriously ill or those who are mentally incapacitated. It would also extend to those living or working abroad who cannot, for practical reasons, be physically present to sign.

It might be useful at this point to state what the Bill does not do. It does not deal with any other part of the Leasehold Reform, Housing and Urban Development Act 1993, or with the Leasehold Reform Act 1967. It deals purely with Section 13 in relation to collective enfranchisement claims and Section 42 concerning individual leasehold claims, both in relation to blocks of flats. To extend the reach of the Bill would probably ensure its demise, and I am sure that noble Lords would not wish that to happen. I must also point out that although the Act’s provisions extend to Wales, the Bill does not alter the legal provision in relation to Wales. Housing is a devolved matter, as I am sure noble Lords know, and if the Welsh Government wanted to make the same changes for Wales, they would need to bring forward their own legislation to do that.

I hope the House will recognise the considerable benefits that the Bill would bring to many vulnerable people, who often need others to act on their behalf. If the Bill can enjoy the same support in your Lordships’ House as it did in the other place, it would be a small step in ironing out just one of the difficulties that leaseholders face. I beg to move.

--- Later in debate ---

[Baroness Williams of Trafford (Con)]

My Lords, I thank all noble Lords who contributed to the debate—which, as I expected, ranged further than the Bill. This is because there are so many concerns surrounding leasehold issues. I also thank the Minister for answering all of the non-Bill and Bill questions.

I will pick up on a few points. My noble friend Lady Gardner of Parkes asked why it has taken more than 20 years to get to the point today where this issue is such an anomaly in the legislation. I agree. However, here we are, and I am pleased that the Bill has had a favourable response. She also pointed to the lack of knowledge generally about leasehold. I confess that I was in that camp until about a week ago. It is a minefield and, as she said, the Bill is but one small step in ironing out some of the anomalies in the original Act.

The noble Lord, Lord McKenzie, raised the issue of Wales, as did the noble Lord opposite whose name—I hope he will forgive me—I do not know. I have been desperately looking in the book. To reiterate the point, while the Bill extends to Wales, the legislation does not. I hope that following today’s debate or the Bill’s passage, the Welsh Assembly may take forward this legislation under its devolved powers.

My noble friend Lady Browning and the Minister answered the point about who assesses incapacity. I am pleased to hear that it is not necessary to prove that incapacity.

The noble Lord, Lord Beecham, and my noble friend Lady Gardner of Parkes asked about commonhold. This is an important but new area which will be worthy of exploration going forward.

I hope that I have covered all the points that the Minister has already addressed. I thank all noble Lords who have contributed to the debate and I ask the House to give the Bill a Second Reading.

Bill read a second time and committed to a Committee of the Whole House.