Leasehold Reform: Forfeiture Provisions

Baroness Altmann Excerpts

Monday 20th June 2022 Lords Chamber

[Lord Greenhalgh (Con)]

I thank the noble Lord for some exciting policy ideas. It is important that we recognise that forfeiture is a very lengthy process, and there are ways in which we can cover debt. In fact, where there is an outstanding mortgage, you typically find that mortgage companies step in and pay off any remaining amounts, because they want to protect their financial interest in a property that is worth far more than the debt. But it is an idea that I will take back to the department.

[Baroness Altmann (Con)]

My Lords, I declare my interests as set out in the register. I support fully the Government’s intentions for urgent leasehold reform; I look forward to seeing the legislation. Does my noble friend agree that it is really important to ensure that landlords are still incentivised to let their properties? With the shortage of housing that we have, it is important to balance the interests of leaseholders and freeholders. There are really important areas of reform, such as have been raised, that need attention for this market to function much better than it does.

[Lord Greenhalgh (Con)]

I thank my noble friend for once again underlining that, when we reform landlord and tenant law, we need get the balance of interests right. As a Government, we have committed to a number of ways in which we try to get that balance right and, indeed, to move away from the idea of having leasehold as the tenure of choice to an era where we have full-throated commonhold, which I hope has the support of many Members of this House.