Leasehold Reform
Debate between Alex Norris and Darren Paffey(3 days, 14 hours ago)
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Alex Norris
I absolutely agree, and I will turn to that in a second.
We will also be consulting on the valuation rates used to calculate the cost of enfranchisement premiums, and would welcome hon. and right hon. Members’ views on that. However, there are some deficiencies in the Act that need to be rectified in primary legislation, so we do need to legislate. That gives us the opportunity to bring forward, in line with what hon. Members have said, a new era of commonhold being the default tenure for new flats.
That is why we committed in the King’s Speech to a leasehold and commonhold reform Bill. It is part of our commitment to bring the feudal leasehold system to an end. We have committed to publishing draft legislation on this in the second half of the year. It will make commonhold the default, and it began with the publication of the White Paper in March. Alongside that, in response to the question from my hon. Friend the Member for Brentford and Isleworth about the 5 million leaseholders, we want to make the conversion process easier. Once commonhold comes back into public prominence as a model, I think it will be more popular, but we want it to be easier as well.
We want to reform the existing system by legislating to tackle unregulated and unaffordable ground rents, as was mentioned, to remove the disproportionate and draconian threat of forfeiture, to act to protect leasehold from poor service from managing agents, as many have said, and to enact the remaining Law Commission recommendations on enfranchisement and the right to manage. We will address private estate management in that.
Darren Paffey (Southampton Itchen) (Lab)
I thank the Minister for his work for my constituents. I am sure that he will sympathise with the latest victim to have been in touch with me. He said that with an unsellable and unmortgageable flat, due to the charges that the Minister has mentioned, he is now on the verge of bankruptcy. Does the Minister agree that real change for leaseholders is now beyond urgent, and can he assure us that this year, residents will see not only legislation but real change?
Alex Norris
I absolutely can. My hon. Friend is a doughty campaigner for buildings in Southampton. We are meeting later to discuss one of them. I assure him, and those residents, that we know that they need change and relief now. That is why we have made the changes that we have been able to make so far. We want to get the changes right so that when the relief comes, it sticks, does not get mired and has the right impact. However, we appreciate the urgency with which my hon. Friend speaks.
Several hon. Members have mentioned service charges and managing agents. Service charges have become a particular pinch point, highlighted by the cost of living pressures in recent years. The LAFRA gives us measures to increase transparency and to remove barriers that prevent leaseholders from challenging them, including more standardised information. However, this year, we will consult on the Act’s provisions on service charges and litigation costs so that we can bring them into force as quickly as possible.
We will also consult on reforms to the section 20 major works procedure, which landlords must follow when leaseholders receive big bills for large works, as has been mentioned in the debate. There is much more to do in that area.
On the subject of managing agents, I reassure my hon. Friend the Member for Brentford and Isleworth that we have heard her call about minimum standards.
Oral Answers to Questions
Debate between Alex Norris and Darren Paffey(7 months, 1 week ago)
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Darren Paffey (Southampton Itchen) (Lab)
Alex Norris
As a Government, we have been clear that the pace of remediation has been far too slow. The Deputy Prime Minister and I will be meeting developers to review their progress and to agree a joint plan for accelerating remediation in the coming weeks. I am, of course, very happy to meet my hon. Friend to discuss these issues, and meet with constituents if that is helpful too.