Commonhold and Leasehold Reform: Managing Agents

Anna Dixon Excerpts

Thursday 2nd July 2026 Commons Chamber

[Florence Eshalomi]

I refer my hon. Friend to the evidence session at which we had representatives of freeholders—one of the most enlightening sessions for my Committee and my colleagues. We probed and pushed and tried to seek justification for ground rents, but none was forthcoming. That shows that they are a money-making scheme.

We must be absolutely clear, as the Competition and Markets Authority has said, that there is no place for ground rents. Last month, there were media reports that the Government are preparing to accept our Committee’s recommendation to bring the £250 ground rent cap into force in late 2027—one year earlier than previously planned. If those reports are correct, that will be welcome news for many leaseholders, who are calling on us to act with greater urgency.

However, even before the final Bill has been introduced, we hear threats of judicial review from a small number of organisations with very deep pockets. Rather than engaging with the process here in Parliament, they are preparing to challenge the democratic mandate of successive Governments, and the will of this House, to make these changes. Shame on them. They know that they have lost the political debate.

The Government should be emboldened by the fact that they have successfully defended judicial reviews in the past. We think they should push ahead with these reforms, but there is a real risk that these measures could be delayed if freeholders do launch such a challenge. The Committee has called on the Government to include a clause for the ground rent cap in the final Bill to ensure that it comes into force two months after the legislation receives Royal Assent.

We support the Government’s intention to change to peppercorn ground rent over time. We understand that that will need a transition period, as Ministers must be confident that they are striking a fair balance between the interests of competing parties, but it is not clear to us how the Government decided on their policy of a 40-year transition. Based on the evidence to our Committee so far, we think a shorter transition period may be justified and fair. That is why our report calls on the Government to publish more data in the coming months so we can be confident that we are getting the transition period right.

Another key focus of the draft Bill is the measure to replace leasehold with a new commonhold tenure. Commonhold will allow all homeowners to have a vote in how their block is run. Homeowners are not required to participate in commonhold if they do not want to, and many blocks will vote to appoint their chosen managing agent, but this modern tenure will offer homeowners the control that they do not have under the current leasehold system.

[Anna Dixon (Shipley) (Lab)]

I thank my hon. Friend and her Committee for the excellent work that they have done in preparation for this Bill. Pensioners who bought retirement flats in Aire Valley Court and Sutton Court in my constituency were hoping for peace of mind; instead, they have had rocketing service charges, poor maintenance and a lack of communication and transparency from FirstPort, the property managing agent. Does my hon. Friend agree that while commonhold is a fantastic opportunity for leaseholders to take charge, we need further independent regulation of property agents to ensure that they provide a good service to leaseholders and commonholders in the future?

[Florence Eshalomi]

I thank my hon. Friend for that intervention, and I thank many other Members, including my hon. Friend the Member for Uxbridge and South Ruislip (Danny Beales). I will come on to the very important area of managing agents and a firm that is notorious with many of us in this Chamber—FirstPort.