Leasehold Reform: Forfeiture Provisions

Baroness Thornhill Excerpts

Monday 20th June 2022 Lords Chamber

[Lord Greenhalgh (Con)]

I always thank my noble friend for his interventions. We want to move forward with the second stage of leasehold reform. It will not be part of the third Session but there is a commitment to this Parliament. My noble friend is right that we can use this time to get a Bill drafted. We will take time so that we can get it through Parliament as soon as possible at the beginning of the fourth Session.

[Baroness Thornhill (LD)]

My Lords, I look forward to the leasehold reform.

Two weeks ago, I attended a meeting of leaseholder residents in a block of retirement flats. It will be no surprise to the Minister that their main complaint was the exorbitant increases in management fees, with no transparency of cost or answers as to why the increase had in one year gone from 5% to nearly 16%. When will the Government finally put a stop to this obfuscation and general bad practice by regulating management companies, as advised by the Government’s own expert working group, chaired by the noble Lord, Lord Best, back in 2019?

[Lord Greenhalgh (Con)]

Once again, the noble Baroness is right that we need to sort out some of the practices that we see among managing agents. We are still considering how to take forward the recommendations of the noble Lord, Lord Best, but as noble Lords know, there is also a move to introduce voluntary codes, which I hope will elevate this. Overall, we need to see professionalisation of managing agents.