Residential Leaseholders

Baroness Andrews Excerpts

Thursday 12th January 2023 Lords Chamber

[Baroness Scott of Bybrook (Con)]

I cannot comment on the individual case, but the law is already clear that service charges must be reasonable. That is set out in Section 19 of the Landlord and Tenant Act 1985. If leaseholders feel they are being ripped off, they can apply in First-tier Tribunals for determination on this. However, I agree that there is more to do. The Government are committed to ensuring that charges, particularly service charges and these extra charges, are transparent. There should be a clear route to challenge or redress if things go wrong.

[Baroness Andrews (Lab)]

My Lords—

[The Lord Bishop of Chelmsford]

My Lords, in light of the commitment made by the big six lenders to accept mortgage applications for flats with building safety issues from Monday 9 January, will the Minister confirm that the Government will monitor their lending decisions to ensure that this time their commitments will be fulfilled, so that this part of the housing market can be unfrozen?

[Baroness Scott of Bybrook (Con)]

The right reverend Prelate brings up an interesting point. I do not know exactly what the Government will do, as the announcement was made only this week. However, I will find out exactly how we will monitor them and the process, and come back to her.

[Baroness Andrews (Lab)]

My Lords, I apologise to the right reverend Prelate. Can I press the Minister on the timetable? She said that she expects the Bill to be introduced before the end of this Parliament. Does she mean that it will be introduced before the election? It is not only disappointing that we have had delays but profoundly destabilising. For example, leaseholders no longer know whether it is safe to pursue enfranchisement or whether they should wait for the Bill. Another thing that has happened in recent years, with the extension of permitted development, is that there are blocks of flats with leaseholders held captive by freeholders who are pursuing upward extensions under permitted development, without the protection of law. These leaseholders do not even have protection in case they have to be decanted while building works are going on. It is a very serious situation and it is accelerating. I would like the Minister to advise on that point.

[Baroness Scott of Bybrook (Con)]

As I have made clear a number of times at this Dispatch Box, these measures were in the manifesto in 2019. We have always said that we will bring forward a reform Bill in this Parliament and that is what we intend to do. We just have to wait and see; I am very sorry. I totally understand that this is causing some issues in the sector. That is why we will get the Bill through as soon as we possibly can, but it has been quite complex and we need to get it right.