Leasehold and Freehold Reform Bill

Baroness Williams of Trafford Excerpts

Report stage & 3rd reading
Friday 24th May 2024 Lords Chamber

[Lord Gascoigne]

That the Bill be read a third time.

[Baroness Williams of Trafford (Con)]

My Lords, I have it on command from His Majesty the King and His Royal Highness the Prince of Wales to acquaint the House that they, having been informed of the purport of the Leasehold and Freehold Reform Bill, have consented to place their interests, so far as they are affected by the Bill, at the disposal of Parliament for the purposes of the Bill.

I will also take this opportunity to notify the House of the Crown undertaking for the Bill. The Crown authorities have confirmed that the Crown would act by analogy with the Leasehold and Freehold Reform Bill and the statutes that the Bill amends, subject to specific specified conditions. The Crown authorities have also confirmed that the Crown would as landlord and subject to specified conditions agree to enfranchisement or extension of residential long leases under the same qualifications and terms to lessees who hold from other landlords, and the Crown will not sell or grant new leases of houses subject to specified circumstances.

If the House will bear with me, I must now relay the exact wording of the Crown undertaking before the House.

The Crown as landlord, will, subject to the conditions described below, agree to the enfranchisement or extension of residential long leases or to the grant of new residential long leases under the same qualifications and terms which will apply by virtue of the Leasehold Reform Act 1967 and the Leasehold Reform, Housing and Urban Development Act 1993, to lessees who hold from other landlords.

Enfranchisement will be refused where property stands on land which is held inalienably; where there are particular security considerations, on the advice of the appropriate security agency; where properties are in, or intimately connected with, the curtilage of historic Royal Parks and palaces; or where properties, or the areas in which they are situated, have a long historic or particular association with the Crown. The properties include old land revenue and the reverter properties and grace and favour properties. The areas include the off islands within the Isles of Scilly—which are St Agnes, Bryher, St Martin’s and Tresco—and the garrison on St Mary’s.

Where enfranchisement is refused on the grounds set out in paragraph 2(a) but the tenant would otherwise qualify for enfranchisement, lease extension or the grant of a new lease by analogy within the statutes, the Crown will be prepared to negotiate new leases. Where enfranchisement is refused on the grounds set out in paragraphs 2(b) or (c) but the tenant would otherwise qualify for enfranchisement, lease extension or the grant of a new lease by analogy with the statutes, the Crown will be prepared to negotiate new leases for a term of 990 years at a peppercorn rent.

Where a lease has been extended in the circumstances under paragraph 4, the Crown will be entitled to insert a buy-back term, which gives the Crown the right to buy the whole or part of the extended leases, equivalent to that granted to the National Trust. The Duchies of Lancaster and Cornwall and the Crown Estate will publish their lease extension policies under the grounds set out in paragraphs 2(b) and (c). These policies will set out that each party is responsible for its own legal and valuation costs.

The Crown will follow the valuation bases set out in the Leasehold Reform Act 1967 and the Leasehold Reform, Housing and Urban Development Act 1993. The Crown will agree to be bound by arbitration where there is dispute over valuation or other terms. The relevant tribunal will be empowered to act as the arbitration body, except in cases under paragraph 2, and will hear such disputes on voluntary reference. The Crown will not grant residential long leases of houses unless the property or the areas in which they are situated fall within one of the categories set out in paragraph 2(a), (b) or (c).

As this is probably my last outing of this Parliament at the Dispatch Box, I pay tribute to all noble Lords I have worked with in this House as Chief Whip, particularly the noble Lords opposite—the noble Lords, Lord Kennedy and Lord Coaker. At this time, I also remember Lord Rosser, with whom I worked for many years. He was a very dear man, and I will remember him fondly. I also thank my noble friend the Lord Privy Seal, who is not in the Chamber, and my absolutely wonderful Front Bench, who work so hard. Whether or not we agree with each other in this House, I think we can agree that we all work so professionally and constructively together, and I could not do it without the brilliant Ministers and Whips that we are so fortunate to have.

[Lord Gascoigne (Con)]

My Lords, I will first make a statement on the legislative consent process in relation to the Leasehold and Freehold Reform Bill.

The provisions in the Bill deliver a substantial package of reforms that will significantly increase leaseholders’ rights as consumers and home owners. To deliver these benefits to all leaseholders across England and Wales, we have sought support for legislative consent from the Welsh Government. We have engaged extensively with Welsh Government officials throughout the preparation and passage of the Bill, and I pay tribute to them for their constructive engagement.

Unfortunately, given the exceptional circumstances and the shortened timeline of passage, regrettably, we must proceed without a legislative consent Motion from the Senedd. However, I take this opportunity to reassure noble Lords that these measures were well received by the Welsh Government, and it is unfortunate that we were not able to conclude our discussions. We remain committed to ensuring that the Bill operates effectively across England and Wales, and we will continue to engage closely with the Welsh Government during the Bill’s implementation.