Leasehold and Commonhold Reform

Debate between Bob Stewart and Peter Bottomley

Tuesday 20th December 2016 Commons Chamber

[Sir Peter Bottomley]

My hon. Friend is absolutely right.

If a leaseholder wants to exercise their rights under the law or to stop being abused because someone is trying to assert rights that they do not have, they have to know 22 Acts of Parliament, regulations and codes. Tribunals, whether in property or employment, ought not to allow some clever QC to come along and say that there is one thing that they have not been aware of that means that the rest of the case falls away; they should ask whether most of the case has been established, in which case the precise details of law—so long as what the tribunal decides is not unlawful—should carry through. The presumption should be that if there is trickery—legal or economic—or unfair pressure, the small person’s voice should come out on top.

Even during the publicity over the past two or three days, people who have spoken up about the abuse they have experienced because of the ground rent scandal have received lawyer’s letters on behalf of other lawyers saying, “You shouldn’t be saying that.” What is this place supposed to be like if we cannot hear our constituents say what their experiences are? I asked those lawyers to respond to me by 10.30 today, so perhaps the email has come in while I have been speaking, but I think that people ought to start asking whether these are sensible letters to be sending. We should be saying that part of being a lawyer is trying to make sure that everyone has their voice heard properly.

Lord Faulks said on behalf of the coalition Government in 2014 that he did not plan to review the commonhold/leasehold format. I think he should—not him, it is not personal, but the Government certainly should. It ought to be possible with the help of good lawyers. Guy Fetherstonhaugh QC, who presented a paper that is in the notes of the all-party group, has given good advice on how that could happen. I give strong commendation to Philip Rainey QC, who addressed our meeting last week and gave various proposals for what could work and could do so quite fast. That does not solve all problems easily, but it makes most difficult problems become easier and makes easy ones go away.

It is tempting to go on for rather longer than the House would wish, but I have one recommendation. Going back to LEASE, the advisory service, I do not think that it has ever had a leasehold representative as a member of its board. If we are to have six members on the board, I would have at least two with leaseholder interests—one who is a leaseholder and one who is part of the campaigning groups and charities that try to help to represent leaseholders. I would certainly ask those who appoint the chairman of LEASE to consult broadly—not just with people like me—about the experience, ability, talents and attitude we want the chairman to have to give guidance to Anthony Essien, the chief executive, against whom I make no critical comment as he has always been responsive, helpful and straight. If the appointment of a new chairman is coming up, I ask the Government to consult as there is some expertise around and in every other field I have known people get consulted if there is a serious basis for that.

I turn briefly now, if I may, to park homes. In my constituency and the constituencies beside it, Bognor Regis and Littlehampton and Arundel and South Downs, some park homes have recently been developed in a way I would regard as a shocking example of misused legal knowledge. The person involves takes a park home, says that it is a holiday home, and that it is not, and tries to fit it between the two, charging enormously high rents. I ought perhaps to apply for an Adjournment debate on the case I have. The Minister should invite Members to send in constituency cases of park home problems and people using the law in ways that are not justified. I encourage the experts in Arun District Council, who have been doing the best they can, to send in their cases to the Minister, because I think action could quite easily be taken there.

[Bob Stewart (Beckenham) (Con)]

I am about to take the chairmanship of the all-party parliamentary group on park homes, so my hon. Friend’s comments immediately interest me. The problem is not just the rent that unscrupulous people charge. It is usually elderly people who live in park homes and they are charged a fortune for utilities. They pay double the rate for electricity, water, sewerage and so on.

[Sir Peter Bottomley]

I am grateful to my hon. Friend. If he will sign me up as a member, I would be happy to join the group. I will ask Arun to send the information to him.

I had not realised how much work I had been drawn into on this topic. I looked at the files this morning and they are enormous, most of the material generated by people more expert than I am. I came into it because some elderly, frail, poor leaseholders were being abused. Because that intervention worked, I was more drawn in. I would prefer to have spoken in the later debate about other cases of injustice that affect individuals, but the leasehold/commonhold area is so big and, as we explained to the Backbench Business Committee last week when it kindly heard the application by the hon. Member for Poplar and Limehouse, there are issues of structure of government.

The motion suggests that leasehold and commonhold issues have been considered. They have not been properly considered as a whole since 1991 and they need a great deal more attention. I have been involved in a number of campaigns in my parliamentary life. Not one has brought in so many cases from other people’s constituencies, so this debate will help to raise awareness among other Members of Parliament. I thank the House for listening to me at greater length than I would normally speak.

Given that there are 5 million to 6 million leaseholders in the country, far more than public estimates, the Office for National Statistics should be able to work out the trends and numbers as national statistics and clarify the situation so that we can see what good is being done and what more good needs to be done, and so that we can also find a way of making the property tribunals work at the lowest possible cost with the smallest number of cases.

I strongly recommend to my hon. Friend the Minister discussing whether he can get graphs which show what the cost of extending or purchasing freeholds should be, which will eliminate a lot of the work for the good professionals and abolish all the opportunities for the bad professionals, the bad freeholders and the crooked managing agents to go on treading over poor people who ought to have the chance to live in their homes at peace.