Commonhold and Leasehold Reform: Managing Agents

Bell Ribeiro-Addy Excerpts

Thursday 2nd July 2026 Commons Chamber

[Bell Ribeiro-Addy (Clapham and Brixton Hill) (Lab)]

I thank my hon. Friend and constituency neighbour the Member for Vauxhall and Camberwell Green (Florence Eshalomi) for securing this important debate. Leasehold has become the ultimate con. Given the sheer quantity of leaseholder issues and complaints about the behaviour of property managing agents that my team and I come across weekly, some would think that we would be experts in this area, but no two cases are the same, and each case is more complicated than the last.

The system of leasehold is far too complicated. Whether we are looking at EWS1 forms, cladding, major works or service charge transparency, leasehold involves a number of different parties, each with their own interests, and the vast majority of cases end with all avenues being exhausted and the constituent having to seek legal advice, but not everyone has the time to go back and forth with their MP, raise internal complaints through every mechanism, and then complain to the ombudsman, and not everyone has the time and resources to seek legal support for their case. Thousands of leaseholders are encountering these issues, and they are completely locked out from accessing support. Past legislation to improve leaseholder rights seems to have added an extra layer of complexity, so any new legislation must simplify the system, not further complicate matters.

I have a specific concern about leaseholders in housing association buildings. While recent legislation has improved leaseholders’ rights in privately owned blocks, housing association freeholders have often fallen outside the scope of reforms. Housing associations must be specifically addressed in future legislation.

I turn to the unregulated headache that is managing agents. There absolutely needs to be a mechanism of oversight and enforcement, so I welcome the recommendation from an independent regulator, but that regulator needs not just teeth but claws. It needs to be able to fine managing agents, remove their licence, and prosecute repeat offenders who we know are gaming the system.

I cannot tell the House how many cases I deal with in which a constituent is just trying to get a response from their property managing agent. Frustrated leaseholders are paying ever-increasing service charges, and it is simply not right that they are struggling to even get a basic response. Charges climb year on year, but transparency does not climb with them. When my constituents ask for a proper breakdown of what they are paying for, too often they get vague figures, unanswered emails or silence. Lifts are broken, stairwells are unsafe, and communal areas never get cleaned, but still the bill arrives, unchanged and unexplained. Leaseholders have no real power to challenge what they are being charged for—and heaven forbid they refuse to pay their service charge, because then the communication they once begged for comes swiftly, in the form of threatening letters claiming the money.

This would not be tolerated anywhere else. Ofgem, which is not always that great, ordered E.ON Energy to pay £5 million, after customers were left waiting on hold for 18 minutes on average, and half their calls were never even getting through. It fined Maxen Power £1.65 million for poor communication and mishandled accounts. Just this January, a landlord in Harrow was prosecuted and fined £9,000 for failing to provide fire and electrical safety certificates, and a landlord who fails to carry out an annual gas safety check can face an unlimited fine or up to six months in prison. In every one of those cases, Parliament has decided that taking someone’s money and failing to deliver is not just providing a bad service, but carries real consequences. Management agents can take thousands of pounds a year from leaseholders, deliver next to nothing, and walk away with a strongly worded letter. We do not accept that anywhere else in housing law, and we cannot keep accepting it here. An independent regulator must do what was not possible in the past, which is remove the licences, fine the managing agents and, as I say, prosecute where necessary, because what these organisations have been doing is absolutely criminal.