Leasehold Reform
Debate between Mike Amesbury and Clive Betts
Mr Betts
Yes. I too thank the Leasehold Knowledge Partnership for its work. My hon. Friend is absolutely right. Houses are being mis-sold in the first place. Then, when people are in a leasehold situation, they are being charged ridiculous amounts for permission fees for things that should be done anyway without the requirement of the freeholder to say yes. Service charges are put in for services that are often not delivered. Freeholders are making money out of that. We heard examples of freeholders contracting for insurance on the property and taking a percentage contribution out of the money they paid over. Those things are completely wrong. The sooner we can change the system, the better.
Mike Amesbury (Weaver Vale) (Lab)
I would like to put on record my thanks to the Chair of the Select Committee, every Select Committee member, the all-party group and the campaign. Many of my constituents in the Northwich and Runcorn parts of my constituency have been affected, as people have rightly said, by this mis-selling scandal affecting leaseholders. What more can the Government and the Select Committee do to press the Competition and Markets Authority to investigate and recommend levels of compensation? We need action now.
Mr Betts
Absolutely right. I will take that up, and I think we can write directly to the CMA as well. Obviously, the Government will get a copy of the report and will respond. We will make sure that the CMA gets a copy as well and responds to it. This is a scandal. Many people’s lives are being blighted by this situation. We need to do everything we can as quickly as we can to rectify it.