Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask Her Majesty's Government what assessment they have made of the impact of periodic tenancies on (1) the supply of properties in the private rented sector, and (2) the increased associated costs implied by shorter and more frequent tenancies.
Answered by Lord Greenhalgh
The Government announced in our White Paper ‘A Fairer Private Rented Sector’ that all tenancies will be periodic, meaning tenants can stay in their homes until they choose to leave or the landlord has a valid reason for possession.
We do not expect these changes to give rise to shorter and more frequent tenancies. Given the expense and inconvenience of moving house, tenants are unlikely to move unless they really need to and particularly not after starting a new tenancy.
We will continue to work closely with those in the sector on the impacts of these changes on the rental sector, as we prepare for legislation.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask Her Majesty's Government what plans they have to introduce further legislation on leasehold reform.
Answered by Lord Greenhalgh
The Government remains committed to creating a fair and just housing system that works for everyone. The Government is taking forward a comprehensive programme of reform to improve fairness and transparency in the leasehold market.
The Leasehold Reform (Ground Rent) Act 2022 will come into force on 30 June. This means that landlords will be prevented from requiring a financial ground rent in most new long residential leases. We will also publish accompanying guidance for enforcement officers and consumers.
This is the first part of seminal two-part legislation to implement leasehold and commonhold reforms in this Parliament.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask Her Majesty's Government what help and advice, if any, they are giving to sponsors of Ukrainian refugees regarding the possible impact on sponsors' mortgages, tenancy agreements, equity release, building insurance, and other related issues.
Answered by Lord Harrington of Watford
Government departments are engaging with key partners in the finance, letting and insurance sectors. There are published FAQs available online at www.gov.uk/guidance/homes-for-ukraine-scheme-frequently-asked-questions which includes a link to a statement from the Association of British Insurers, whom we have consulted with at length to seek to ensure nobody generously sharing their accommodation are penalised in any way.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask Her Majesty's Government what plans they have, if any, to increase the amount payable to sponsors of Ukrainian refugees above £350 per calendar month, especially in the case of larger families or those with special needs.
Answered by Lord Harrington of Watford
The £350 monthly sum is intended as a 'Thank you' payment to those who respond to the scheme. Any extra support required for families with special needs will be met through provision to Local Authorities, rather than the Sponsor
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask Her Majesty's Government what assessment they have made of reports that private property management companies are charging tenants excessive (1) commission, and (2) charges, to cover their building insurance; and what steps they intend to take, if any, to curtail the practice.
Answered by Lord Greenhalgh
The Government is committed to promoting fairness and transparency for homeowners and renters and making sure that consumers are protected from abuse and poor service. This commitment includes raising professionalism and standards amongst managing agents, protecting consumers while defending the reputation of good agents from the actions of rogue operatives. We therefore welcome the ongoing work being undertaken by the industry itself to raise professionalism and standards across the sector.
The Government is considering the recommendations in the report received from the working group on the regulation of property agents chaired by Lord Best. We welcome the work of the independent steering group on codes of practice for property agents, and we will continue to work with industry on improving best practice.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask Her Majesty's Government what plans they have, if any, to legislate for the regulation of property management companies.
Answered by Lord Greenhalgh
The Government is committed to promoting fairness and transparency for homeowners and renters and making sure that consumers are protected from abuse and poor service. This commitment includes raising professionalism and standards amongst managing agents, protecting consumers while defending the reputation of good agents from the actions of rogue operatives. We therefore welcome the ongoing work being undertaken by the industry itself to raise professionalism and standards across the sector.
The Government is considering the recommendations in the report received from the working group on the regulation of property agents chaired by Lord Best. We welcome the work of the independent steering group on codes of practice for property agents, and we will continue to work with industry on improving best practice.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask Her Majesty's Government what discussions, if any, they have had with the Crown Estate on granting it exemptions from the forthcoming second stage of leasehold reform.
Answered by Lord Greenhalgh
The Government is committed to promoting fairness and transparency for homeowners and ensuring that consumers are protected from abuse and poor service. We are taking forward a comprehensive programme of reform to end unfair practices in the leasehold market. On January 7 the Government announced reforms to enfranchisement valuation, 990-year leases, removing the retirement exemption from zero ground rent measures and commonhold. This was the first part of the Government's response to the Law Commission's reports on enfranchisement, Right to Manage and commonhold.
The Law Commission's report on enfranchisement includes recommendations relating to the qualifying criteria for enfranchisement and lease extensions, including the applicability of these to leaseholders of the Crown. We will bring forward a response to these and the other remaining Law Commission recommendations in due course.
We will translate these measures into law as soon as possible, starting with the Leasehold Reform (Ground Rents) Bill in the current session. This is the first part of major two-part legislation to implement leasehold and commonhold reforms in this Parliament.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask Her Majesty's Government, further to the remarks by Lord Greenhalgh on 20 July (HL Deb, col 201), what plans they have to grant the Crown Estate “exemptions from the parliamentary undertaking on enfranchisement rights for leaseholders in the next stage of the leasehold reform programme".
Answered by Lord Greenhalgh
The Government is committed to promoting fairness and transparency for homeowners and ensuring that consumers are protected from abuse and poor service. We are taking forward a comprehensive programme of reform to end unfair practices in the leasehold market. On January 7 the Government announced reforms to enfranchisement valuation, 990-year leases, removing the retirement exemption from zero ground rent measures and commonhold. This was the first part of the Government's response to the Law Commission's reports on enfranchisement, Right to Manage and commonhold.
The Law Commission's report on enfranchisement includes recommendations relating to the qualifying criteria for enfranchisement and lease extensions, including the applicability of these to leaseholders of the Crown. We will bring forward a response to these and the other remaining Law Commission recommendations in due course.
We will translate these measures into law as soon as possible, starting with the Leasehold Reform (Ground Rents) Bill in the current session. This is the first part of major two-part legislation to implement leasehold and commonhold reforms in this Parliament.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask Her Majesty's Government what plans they have to introduce new legislation on the regulation of property agents.
Answered by Lord Greenhalgh
The Government is committed to promoting fairness and transparency for homeowners and ensuring that consumers are protected from abuse and poor service. This commitment includes raising professionalism and standards amongst property agents, protecting consumers while defending the reputation of good agents from the actions of rogue operatives. We therefore welcome the ongoing work being undertaken by the industry itself to raise professionalism and standards across the sector.
Government welcomes the work of Baroness Hayter of Kentish Town as the Chair of the independent steering group on codes of practice for property agents, and we will continue to work with industry on improving best practice.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask Her Majesty's Government what plans they have to seek a derogation from the European Convention on Human Rights in order to achieve comprehensive leasehold reform.
Answered by Lord Greenhalgh
The Government is committed to promoting fairness and transparency for homeowners and ensuring that consumers are protected from abuse and poor service.
Under the current system, too many leaseholders find the process for extending their lease or buying their freehold (a process known as enfranchisement) too complex, lacking transparency and prohibitively expensive.
We will reform the process of enfranchisement valuation that leaseholders must follow to calculate the cost of extending their lease or buying their freehold. The Government will abolish marriage value, cap the treatment of ground rents at 0.1% of the freehold value, and prescribe rates for the calculations at market value.
These changes to the enfranchisement valuation process will result in substantial savings for some leaseholders, particularly those with less than 80 years left on their lease. Our reforms to enfranchisement valuation also ensure that sufficient compensation is paid to landlords to reflect their legitimate property interests.
In line with usual practice, the Government’s intention would be to publish an impact assessment and a section 19(1)(a) Human Rights Act 1988 statement on our leasehold reforms as part of taking primary legislation through Parliament.
The Leasehold Reform (Ground Rents) Bill, introduced into Parliament on 12 May, will make homeownership fairer and more transparent for thousands of future leaseholders, by legislating to prevent landlords under new residential long leases from requiring a leaseholder to pay a financial ground rent.
The Government considers the provisions of the Leasehold Reform (Ground Rent) Bill are compatible with the European Convention on Human Rights (ECHR).
Specifically, we consider that the Bill engages with the following ECHR rights: Article 6: right to a fair trial; and Article 1 of Protocol 1: protection of property, that the proposals are compatible with the ECHR, and that any interferences can be justified.