Commonhold and Leasehold Reform: Managing Agents

Debate between Caroline Nokes and Barry Gardiner

Thursday 2nd July 2026 Commons Chamber

[Barry Gardiner (Brent West) (Lab)]

For 28 of the 29 years that I have been in Parliament, I have campaigned for leasehold reform. I was instrumental in the Commonhold and Leasehold Reform Act 2002 and on the Bill Committee during the passage of the 2024 Act. I welcome the Select Committee’s report and pay tribute to the Chair of the Committee, my hon. Friend the Member for Vauxhall and Camberwell Green (Florence Eshalomi), for her remarks.

There are 11,000 individual leaseholders in contact with my office. I pay tribute to Jackie George, who is in daily contact with hundreds of them; she is my office manager, and most of what she does with leaseholders is actually in her spare time.

Leasehold reform is about control. It is about passing power and control from the moneyed interests to the people whose homes they affect. To do that, we must enact the remaining Law Commission recommendations on enfranchisement and the right to manage. For enfranchisement, that means restricting development value. It was promised to Parliament by the last Government in 2021 and it was meant to be in the 2024 Act. It is just wrong that leaseholders can be held to ransom by hypothetical development value, with developers claiming that they could build in the garden or on top of the building and demanding huge extra sums to stop leaseholders from affording the freehold purchase. Nicola Muir, a barrister at Tanfield Chambers, has wryly observed

“it is amazing what development landlords believe is possible and the profits they claim they will generate”.

She cited one instance where the landlord initially claimed £34 million for the alleged potential to build a skyscraper in the front garden of a block.

Today, the right to manage is a shadow of what the Labour Government legislated for in the 2002 Act. Freeholders can punish leaseholders who have taken back control of their blocks with the right to manage because of the Supreme Court decision in 2022—the Settlers Court decision—which went against the intention of Parliament by allowing freeholders to retain control of estate charges. We need to revert to the pre Settlers Court position; the Law Commission’s remaining right-to-manage recommendations would help to achieve that.

An entire legal industry has emerged in torpedoing right-to-manage claims for freeholders, where tiny procedural details can see leaseholders spending literally a fortune to defend their right to manage in tribunal and the courts, only to lose the claim. The tribunal has no power to waive errors made over the procedural traps, yet the reforms to change this—the remaining Law Commission right-to-manage recommendations that would end frivolous lawfare of freeholders and make right to manage a universal scheme—have been omitted from the Bill, despite previous promises.

I am conscious that the scale of the leasehold crisis has become much worse since the Law Commission issued its final report six years ago. There are quick-win policies that could still be added to the Bill, such as reducing the arbitrary 50% trigger for right-to-manage claims—as many hon. Members have already said—to 30% or 35%. Just imagine if we had a law that that said a bad Government could be removed only if 50% of all citizens with the franchise, and not just those who actually voted in an election, had to support the proposition. That is the situation with leasehold. If the right to manage is a no fault right—

[Madam Deputy Speaker (Caroline Nokes)]

Order.