Leasehold and Freehold Reform Bill

Debate between Marsha De Cordova and Michael Gove

2nd reading
Monday 11th December 2023 Commons Chamber

[Michael Gove]

My hon. Friend is completely right. I will be looking at the responses to the consultation, and I am sure that some of London’s finest legal firms and most eloquent solicitors will be putting in some very thoughtful contributions, but the question will be: who is paying for them and how much are they being paid? To my mind, people can buy silver-tongued eloquence, but what is far more important is actually being on the right side of justice.

[Marsha De Cordova (Battersea) (Lab)]

Will the Secretary of State give way?

[Michael Gove]

I believe that most of the people in the House are on the right side of justice, especially the hon. Lady.

[Marsha De Cordova]

On ground rents, shared owners who have staircased their way up to 100% and become leaseholders obviously have a long lease of 999 years, but face the issue of having their ground rents doubled every, say, 20 years. Clearly, that is an unfairness in the system, so will the Secretary of State’s consultation address that point?

[Michael Gove]

I believe it will. I must now make progress because I know a number of people want to contribute, so I will try to run through the other arguments about why we are taking the approach that we are.

I mentioned service charges, and one other example, to which the Father of the House has of course persistently drawn our attention, of where those who have been managing properties on behalf of the ultimate owners have abused their position is that of insurance commissions. We will be taking steps in the Bill to make sure that insurance charges are transparent and that fair handling fees are brought in. The fact that I can list all these examples just shows hon. Members the way in which freeholders have operated. Many who have got hold of such freeholds have been thinking, “Right, okay, we can jack up the ground rent, great! We can have service charges, keep them opaque and add something. Tell you what—insurance; let’s try to get more out of that.” It is a persistent pattern of behaviour that does require reform.

Another pattern of behaviour is the way that lease extensions and the whole question of enfranchisement have been going. If someone’s lease goes below 80 years and they want to enfranchise themselves, they have to pay what is called marriage value. That is the principle that, by bringing together the ownership of the freehold and the leasehold in one by enfranchising themselves—bringing those two together in a marriage—people are enriching themselves. Again, however, it has been used by freeholders to bilk leaseholders overall, which is why the approach we are taking will in effect eliminate marriage value. It is also why, when we talk about lease extension, instead of people having to extend and extend again generation after generation, we are saying that leases can be extended to 990 years. In effect, as I say, this will make sure that one of the approaches that freeholders have taken to extracting more cash from leaseholders will end.

Renters (Reform) Bill

Debate between Marsha De Cordova and Michael Gove

2nd reading
Monday 23rd October 2023 Commons Chamber

[Michael Gove]

Yes, we are. There is a case for both a separate organisation and for having the issue fall to the existing ombudsman—who, I have to say, has been doing a very effective job.

I must draw my remarks to a close shortly so that all colleagues who wish to contribute can, but the right hon. Gentleman’s intervention provides me an opportunity to suggest that the condition of housing in this country—particularly housing built in the ’50s, ’60s and ’70s—is a profound cause for concern. Many of those homes are reaching the end of their natural lives. As a result of how they were built, we are seeing not just building safety issues but children in particular living in homes that are not decent.

The tragedy of Awaab Ishak’s death reminded us that damp, mould and other poor housing conditions can have a deleterious effect not just on life chances but on lives themselves. That is why the Social Housing (Regulation) Act, the actions of the housing ombudsman and the actions that my Department has taken have been focused on ensuring that registered providers and social landlords live up to their responsibilities.

What we seek to do in the Bill is ensure that the small minority of private sector landlords who also need to up their game do so. We are not targeting any one sector. We are not targeting registered providers of social housing while leaving the private rented sector off the hook; nor are we directing particular attention to the private rented sector and letting registered social landlords off the hook. What we are doing is ensuring that citizens, who deserve a warm, decent, safe home, get one. That is what the establishment of the decent homes standard through this legislation will do.

[Marsha De Cordova (Battersea) (Lab)]

The Bill would have been a good opportunity to bring forward provisions ensuring that homes are kept at a decent standard. Will the Secretary of State assure the House that he will bring forward measures before the next election that will address decent home standards for the private rented sector?

[Michael Gove]

At the very beginning of my introduction to the Bill, I stressed my gratitude to all those who had worked to shape the measure and make recommendations on how we could improve it. I am sure that in Committee we will hear representations from different Members and different organisations about how we can improve the Bill further. I am open-minded about that: my aim is to ensure that we get a new deal and a fair deal for both landlords and tenants.

I have listened to representations from the National Residential Landlords Association and others about making sure that the overwhelming majority of landlords, who do a great job, are able to deal with a small minority of tenants who behave badly. I have also listened to representations from individual tenants and those campaigning for them, who want us to move ahead with the abolition of section 21 and the establishment of the portal. The establishment of the portal and the existence of the ombudsman will, I believe, ensure that landlords are on firmer ground and no longer undercut by rogues, and that tenants get a better deal. It is because the Bill provides both landlords and tenants with stronger protections for the future that I commend it to the House.

Oral Answers to Questions

Debate between Marsha De Cordova and Michael Gove

Monday 27th March 2023 Commons Chamber

[Marsha De Cordova (Battersea) (Lab)]

T9. The leasehold system too often traps homeowners, including many of my constituents. They have complained to me of fire safety risk, poor building maintenance, astronomically high service charges and poor customer service. Labour has been calling on the Government to end feudal leasehold systems. Will the Secretary of State bring forward legislation on further leasehold reform in this Session, so that all homeowners can live in a safe, decent and affordable home?

[Michael Gove]

Very good points. That is the plan.

Levelling Up, Housing and Communities

Debate between Marsha De Cordova and Michael Gove

Monday 27th March 2023 Ministerial Corrections

[Michael Gove]

I am grateful to the Father of the House, who has been indefatigable in his efforts on behalf of those affected by this crisis and of leaseholders more broadly. I should say, for his benefit and that of the House and the Opposition, that developers will be updating leaseholders on progress towards remediation quarterly on 31 January, 31 April, 31 July and 31 October each year—that will be public accountability.

I should also say for the benefit of my hon. Friend and the House that 95% of the most dangerous buildings—those with aluminium composite material cladding—have either completed or started remediation work.

[Marsha De Cordova (Battersea) (Lab)]

I thank the Secretary of State for his statement and the progress he is making on this issue, but action is still needed to address what has become a two-tier system of building safety support for leaseholders. As has already been mentioned, leaseholders in Battersea who reside in buildings under 11 metres or in a development that has become an enfranchised building do not qualify for the support for which other leaseholders rightly qualify. They feel abandoned by this Government. If the Government are looking at this issue on a case-by-case basis, I would love to understand a bit more how it will work, because I want to ensure that those leaseholders are getting the support they need.

[Michael Gove]

The hon. Lady makes a very important point. In the legislation, there is a category of non-qualifying leaseholders: people who have more than one property.

[Official Report, 14 March 2023, Vol. 729, c. 736.]

Letter of correction from the Secretary of State for Levelling Up, Housing and Communities, the right hon. Member for Surrey Heath (Michael Gove):

An error has been identified in my response to the hon. Member for Battersea (Marsha De Cordova).

The correct information should have been:

Building Safety

Debate between Marsha De Cordova and Michael Gove

Tuesday 14th March 2023 Commons Chamber

[Michael Gove]

The right hon. Gentleman makes a very important point. In most cases, a building under 11 metres which might, for example, have cladding on it, or might have some of the materials that in other circumstances would be systemically unsafe, does not have safety risk. We need to look proportionately at each building, and that takes time. Thanks to the energetic efforts of the Minister for building safety, my hon. Friend the Member for North East Derbyshire, we have reached agreement with a majority of lenders, which are now lending against properties, because through the engagement we have had with them, there is now a more proportionate way of deciding whether or not to lend against those buildings. As we have discussed in the past, however, let us look at individual cases, and if constituency cases and examples have come to light that the right hon. Gentleman feels are not captured by the steps we have taken so far, I look forward to working with him to address them.

[Marsha De Cordova (Battersea) (Lab)]

I thank the Secretary of State for his statement and the progress he is making on this issue, but action is still needed to address what has become a two-tier system of building safety support for leaseholders. As has already been mentioned, leaseholders in Battersea who reside in buildings under 11 metres or in a development that has become an enfranchised building do not qualify for the support for which other leaseholders rightly qualify. They feel abandoned by this Government. If the Government are looking at this issue on a case-by-case basis, I would love to understand a bit more how it will work, because I want to ensure that those leaseholders are getting the support they need.

[Michael Gove]

The hon. Lady makes a very important point. In the legislation, there is a category of non-qualifying leaseholders: people who have more than one property. We wanted to attempt to draw the line in order to ensure that, for example, significant investors—people with significant means—were not benefiting from a scheme that was designed for every man and woman, as it were. However, I have some constituents who are in the same boat as the hon. Lady’s, and we are looking at the situation to try to make sure that we do not have people at the margins who are being treated unfairly. I cannot make any promises at this stage, but the hon. Lady raises an important point, and we are aware of it.

Oral Answers to Questions

Debate between Marsha De Cordova and Michael Gove

Monday 21st November 2022 Commons Chamber

[Marsha De Cordova (Battersea) (Lab)]

Awaab Ishak’s death was shocking, and such things should not be happening in our country in 2022. Everybody deserves a warm, safe and decent home to live in. His case shows what happens when people living in social housing are disregarded, as has been the case in my constituency after decades of Conservative control of Wandsworth Borough Council, which has allowed social housing stock to go into decay. What is the Secretary of State’s Department doing to assist investment in social housing?

[Michael Gove]

The hon. Lady raises an important issue. I should say that Wandsworth under Conservative leadership was an outstanding and exemplary council in so many ways, but I understand that she has to make that point—the constituency Labour parties have to be kept happy and so on. The key thing is that all local authorities have an obligation, as do all registered social landlords, and we want to work with them to tackle the issue that she rightly raised.

Social Housing (Regulation) Bill [Lords]

Debate between Marsha De Cordova and Michael Gove

2nd reading
Monday 7th November 2022 Commons Chamber

[Michael Gove]

As ever, my hon. Friend is 100% spot-on. Even before the Grenfell tragedy, it was clear that the way in which tenants were being treated in social housing in far too many cases, and—it pains me to say this—particularly in Kensington, was simply not good enough. We have vivid documentary evidence of the fact that the tenant management organisation that was responsible for the refurbishment of Grenfell simply did not listen to tenants and behaved in a high-handed fashion. Their safety was not given the importance it deserved. A number of residents, including Ed Daffarn of Grenfell United, a survivor of that night, were very clear about the risks that were being run, but they were not listened to. One of the most powerful lessons of the tragedy is the need for us to ensure that social housing tenants feel that their voice is being heard. As my hon. Friend for Walsall North said, any high-handed and aloof behaviour exhibited by some towards people who are the most deserving of our protection should end, and I hope that it will.

[Marsha De Cordova (Battersea) (Lab)]

I, too, welcome the Secretary of State back to his position. May I return briefly to the intervention from my hon. Friend the Member for Vauxhall (Florence Eshalomi) about personal evacuation plans for disabled people? As the Secretary of State knows, the Home Office did not expect that recommendation. Is it his view that those plans should be in place for disabled people living in high-rise blocks?

[Michael Gove]

We do need to look again at the position. I have to be careful because the Home Office is a separate Department and I am not the Secretary of State there, but I do know that the new Home Secretary and the new Minister responsible for fire safety appreciate and understand the need to look closely at the concerns that tenants expressed on the previous position. I have to say that the previous position was taken in good faith, but we need to pay attention to the concerns expressed.

Oral Answers to Questions

Debate between Marsha De Cordova and Michael Gove

Monday 27th June 2022 Commons Chamber

[Michael Gove]

Well, he is holding the Scottish Government to account. Nobody else is doing it.

I had the opportunity to appear in front of Mr Ken Gibson a few months ago—what a pleasure it was. The Scottish Parliament and the Scottish Government are our partners in making sure that we can make levelling up a success. An example of that is the fact that the Cabinet Secretary whose letter the hon. Lady so elegantly holds has been working with the UK Government to deliver two new freeports in Scotland that would not have been possible if we were still in the European Union. I am glad to see the Scottish Government embracing one of the benefits of Brexit.

[Marsha De Cordova (Battersea) (Lab)]

5. If he will impose a legally binding deadline for remediation works on tower blocks in England that are deemed unsafe as a result of (a) cladding and (b) other associated fire risks.

[The Secretary of State for Levelling Up, Housing and Communities and Minister for Intergovernmental Relations (Michael Gove)]

The Government are providing funds to remediate unsafe cladding in buildings above 11 metres and have secured unprecedented pledges from developers to fix the buildings they constructed. Today, I have written an open letter to all building owners of properties with critical building safety defects to remind them that we have taken powers, through the Building Safety Act 2022, to compel them to fund and undertake the necessary work to make all buildings safe.

[Marsha De Cordova]

We still have no legal deadline in place to fix cladding and fire safety issues and no justice for Grenfell, and thousands of buildings, including in my constituency, are still unsafe. The Government have been dodging their responsibilities for more than the past five years. In January, the Secretary of State said that leaseholders are “blameless” and that it would be “morally wrong” for them to pay. Why, then, does he think it is fair for so many leaseholders, including in my Battersea constituency, to potentially have to pay £15,000 for non-cladding costs to correct problems that they did not cause?

[Michael Gove]

The hon. Lady makes a number of important points. It is fair to say, and most people in the House would acknowledge, that, although progress over the past five years has not been everything that it should be, in recent months we have succeeded in securing commitments from developers to remediate the buildings for which they are responsible. With the publication of the open letter today and the passing of the Building Safety Act, a requirement has been placed on freeholders to pay for the work that is required. We have a cap on the commitments that any leaseholder has to enter into and that cap is consistent with the precedent in Florrie’s law. I look forward to working with the hon. Lady, as an assiduous constituency Member of Parliament, to make sure that those whom she serves are relieved of any obligation beyond that which is fair to ensure that their buildings are safe.

Levelling-up and Regeneration Bill

Debate between Marsha De Cordova and Michael Gove

2nd reading
Wednesday 8th June 2022 Commons Chamber

[Michael Gove]

It has always been the NPPF’s function to have those national policies, which have been agreed and which ensure that plans are in conformity with what this House wills our overall planning system to be. It is no more than a more efficient way to make sure that the existing NPPF and any future revisions of it are included in local plans.

Another reason why we sometimes see opposition to development is infrastructure. One of the critical challenges that we must all face when we contemplate whether new development should occur is the pressure that is inevitably placed on GP surgeries, schools, roads and our wider environment. That is why the Bill makes provision for a new infrastructure levy, which will place an inescapable obligation on developers to ensure that they make contributions that local people can use to ensure that they have the services that they need to strengthen the communities that they love.

Of course, section 106 will still be there for some major developments, but one of the problems with section 106 agreements is that there is often an inequality of arms between the major developers and local authorities. We also sometimes have major developers that, even after a section 106 has been agreed—even after, for example, commitments for affordable housing and other infra- structure have been agreed—subsequently retreat from those obligations, pleading viability or other excuses. We will be taking steps to ensure that those major developers, which profit so handsomely when planning permission is granted, make their own contribution.

[Marsha De Cordova (Battersea) (Lab)]

On the issue of viability that the Secretary of State has just raised, how does the Bill seek to prevent developers from going back and using viability as an angle to, say, reduce the number of affordable homes that they are expected to build in any new development?

[Michael Gove]

The reason for the infrastructure levy is that it ensures a local authority can set, as a fixed percentage of the land value uplift, a sum that it can use—we will consult on exactly what provisions there should be alongside that sum—to ensure that a fixed proportion of affordable housing can be created. The hon. Lady is quite right to say that there are some developers that plead viability to evade the obligations that they should properly discharge.

Ukraine Sponsorship Scheme

Debate between Marsha De Cordova and Michael Gove

Monday 14th March 2022 Commons Chamber

[Michael Gove]

I am very grateful to my right hon. Friend for his common-sense perspective, which I completely share.

[Marsha De Cordova (Battersea) (Lab)]

My constituency has a proud record of welcoming refugees. Of the families who require settlement here, there will be some with an adult or a child with a disability who will have specific needs and require specific support. Will the Secretary of State confirm whether specialist support will be available—his statement did not allude to that—and whether there will be additional funding for it?

[Michael Gove]

The hon. Lady makes a very important point. I know what a passionate and effective spokesperson she is for those living with disabilities. Absolutely, we will work with local government to ensure support is there for women, children and others fleeing persecution, many of whom will be living with disabilities and will need additional support.

Oral Answers to Questions

Debate between Marsha De Cordova and Michael Gove

Monday 29th November 2021 Commons Chamber

[Michael Gove]

As the hon. Lady rightly points out, leaseholders find themselves caught in an invidious vice, whereby they are not only having to pay remediation costs, but also find that insurance costs and the capacity to sell on their flat are compromised by the situation in which we find ourselves. Making sure that individuals are in safe buildings is our first responsibility, and to do that we must make sure that the building safety fund pays out and that we get support for remediation from those in the private sector, who also have a share of responsibility. I hope to update the House on our plans shortly.

[Marsha De Cordova]

Leaseholders in Battersea should not be held responsible for paying for remediation works when their homes were sold to them with the assurance that they were safe. Due to the poorly regulated EWS1 assessments, there have been cases where homes were being awarded a B2 classification—the lowest category—leaving leaseholders expected to pay for the repairs. In one case, leaseholders in Battersea challenged that, providing evidence proving that the building was of A2 classification. What action is the Secretary of State taking to ensure that leaseholders are protected from erroneous EWS1 assessment outcomes and that the process is not a barrier to selling or remortgaging, including properties below 18 metres?

[Michael Gove]

The hon. Lady’s question emphasises the complexity of the issue, but that is no reason not to take action to help her constituents and others. One of the principal concerns that I know many leaseholders have is that lenders will require the EWS1 form. The EWS1 form is a consequence of previous Government acts and decisions made by the Royal Institution of Chartered Surveyors and others. We need to ensure co-ordinated action across the piece to ensure we are in a stronger position to free people from the position in which they currently find themselves.