(5 years, 3 months ago)
Commons ChamberMy right hon. Friend raises a very important point. Of course, studying STEM subjects is really important in the UK, but also abroad. He showered me with a quote. May I give him one back from a young lady I met who is learning to code as a result of funding provided by DFID? This was when I met a group of young people in Nigeria. She said:
“Education is a weapon that can change the world.”
That is what young women in developing countries believe, and we are providing such support to help them to build better futures.
As chair of the all-party group on Africa and of the all-party group on diversity and inclusion in science, technology, engineering and maths, I wholly welcome this emphasis on women and education, just as I condemn the Prime Minister’s past remarks when he implied that women went into higher education to find husbands. As well as the emphasis on women in STEM, will the Secretary of State say what he is doing to ensure that period poverty is not a barrier to continued attendance at schools in developing countries, an issue that was investigated by the all-party group on Africa ?
I do not want to introduce a discordant note into the statement, as we are in agreement on much of this, but I would just point out that the Prime Minister, when he was the Foreign Secretary, was absolutely behind launching the 12 years of education for every girl campaign, so I would say it is slightly churlish for the hon. Lady to raise the points she has. However, on the wider point about family planning, I agree that work needs to be done. I saw some of the work that we are doing during my visit to Nigeria, and we will continue to work on that. If she has particular ideas, I would welcome her coming to have a discussion with me.
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If the right hon. Gentleman bears with me, I will come on to that.
As I said, we will be working with the Law Commission. A number of Members raised the issue of freeholds being sold on to investment companies. Our view is very clear: where houses are sold on unfair terms, we have asked developers to be proactive and arrange for the leasehold contract to be put on a fair footing. The right hon. Member for Knowsley (Mr Howarth), who is not in his place, asked whether there should be a requirement for developers not to sell on the freehold at this point. I am sure that developers will be listening intently to the tone of this debate and understanding precisely how Parliament feels about this matter.
We will, of course, want to ensure that there is appropriate support for existing leaseholders with onerous ground rents, and we will work with the ombudsman and trading standards to provide comprehensive information on the various routes to redress. However, that is not enough. We also want to see developers and investors going further with their compensation schemes. I want to see that support extended to all those with onerous ground rents, including second-hand buyers.
A number of Members, including the hon. Member for North Tyneside (Mary Glindon), mentioned Help to Buy. Given the Government’s position on leasehold, we do not think it is appropriate for the Help to Buy equity loan scheme to support the sale of leasehold houses. We cannot impose a new requirement on developers under existing contracts, but we expect them to work with us to take forward that change ahead of legislation. The Secretary of State has today written to all developers to ask them to stop using Help to Buy equity loans for the purchase of leasehold houses, to encourage them to take early steps to limit ground rents and to ask those that have customers with onerous ground rents to provide the necessary redress as soon as possible. Both the Secretary of State and I will be keeping a very close eye on progress in that area.
I am very grateful to the hon. Member for Ellesmere Port and Neston for proposing a Bill on leasehold reform, and for the considerable efforts that he and other colleagues have made to put it on the agenda. This is a highly complex area, covering multiple Acts of Parliament, which is why we will be working closely with the Law Commission as part of its 13th programme of law reform, announced last week. We want to ensure that we prioritise making the process of buying a freehold easier, and to support existing leasehold house owners, and we will seek to bring forward solutions by the summer recess of 2018.
Will the Minister to clarify whether the proposals that will be brought forward by the summer will address the charity loophole?
As the hon. Lady knows, we are meeting in the new year to discuss the issue of the charity loophole and specifically her case. My officials are in touch with the charity, and I would be very happy at that point to discuss the details. Of course, if she wants to feed some suggestions into the work that we are doing more widely with the Law Commission, I would be very happy to receive them from her.
(7 years, 1 month ago)
Commons ChamberI thank the hon. Member for Newcastle upon Tyne Central (Chi Onwurah) for the timely manner in which this issue has been raised. I do empathise, as I am sure we all do, with the experience of her constituents, as she has related it. I want to be absolutely clear: the Government want to see fairness in the housing market, and that absolutely extends to the leasehold sector. She alluded to the fact that the Government have clearly signalled their intention to strengthen leaseholders’ protections against unscrupulous abuses by freeholders, landlords and managing agents.
With regard to the specifics of the case the hon. Lady has raised, I know she corresponded several times with my predecessors. Her constituents will be incredibly grateful to her for continuing to highlight this issue of great importance for them, and to the hon. Member for Gateshead (Ian Mearns) for attending the debate as the hon. Lady’s constituency neighbour.
I will return to the specifics of the case that the hon. Lady has raised, but first I would like to use this opportunity to set out the Government’s position on tackling leasehold abuses and clarify how the current legislation is applied to charitable organisations.
I recognise the advantage of the Minister setting that out, but I hope that before he concludes his remarks he will specifically say what he will do for my constituents, for whom I called this debate.
I always try to respond to the issues that are raised in a debate, and I hope I will do so in this case too.
Many leaseholders have concerns about fairness and transparency within the leasehold sector. Our housing White Paper, and the all-party parliamentary group on leasehold and commonhold reform, have helped to move leasehold issues up the political agenda. The White Paper identified pressing areas for reform. We have talked about galvanising the house building market overall, but specifically in terms of leasehold. In our recent consultation, “Tackling unfair practices in the leasehold market”, we consulted on whether new-build houses should be sold as leasehold and on the issue of onerous ground rents.
The consultation, as the hon. Lady pointed out, has closed. It clearly struck a chord with consumers and leaseholders. As she said, we have received over 6,000 responses, many of them extremely detailed. My officials are currently analysing those responses. I would like, before the end of the year, to announce the Government’s response to the consultation and propose reforms to be taken forward.
Let me now turn to the hon. Lady’s direct concerns about charitable organisations such as the St Mary Magdalene and Holy Jesus Trust. I understand that, as she set out, a small number of individuals have in the past acquired leases of houses on the St Thomas estate and now wish either to extend the lease or acquire the freehold. The freehold is owned by the Mary Magdalene and Holy Jesus Trust, and the head lessee is Home Housing Association. Both organisations have charitable status. Unfortunately, as she outlined, the leaseholders have not been able to enfranchise—that is, purchase the freehold interest—or, indeed, extend their leases. The frustrations and anxieties that this has caused are clearly evident in the stories that she relayed—particularly, as she pointed out, for families who wish to sell and relocate. The remaining terms on a lease may well mean that a prospective purchaser will find it very difficult to secure a mortgage.
So, specifically, what I am going to do? I have asked my officials to be in direct contact with the trust to see what help can be provided to leaseholders with regard to their desire to exercise their right to buy in terms of the freehold. We will cover what flexibilities there may be for the trust to apply existing legislation to help to resolve some of the issues raised by the hon. Lady, especially where the trust and the leaseholders are both willing and agree to progress either lease extensions or the purchase of the house freeholds.
Returning to the wider recent consultation, we will look at the responses and also consider issues on the disposal of charitable leasehold homes. This will need to show fairness to the needs both of the freeholder and the leaseholder, and also strike a balance with the needs of charities to remain on a sustainable footing to continue their good work. It may be the case that the hon. Lady’s constituents were not fully informed about their rights and responsibilities when they acquired their leases, especially the whole issue of enfranchisement exemptions attached to these particular charitable leasehold properties. That leads me to another general area of concern about the transparency, or lack of it, in the way some leasehold property is marketed—in particular, whether there is clarity over the terms of lease agreements at pre-purchase, and whether sales teams are working in the best interests of prospective leasehold purchasers.
I will, as part of our wider work on leasehold reform, consider whether changes to legislation are required to improve transparency and fairness for leaseholders who want to enfranchise, where their freeholder is a charity and both parties agree that a lease extension or enfranchisement is mutually beneficial. I also want to ensure that the future marketing of leasehold homes, whether for private or charitable provision, is clearly promoted and advertised by charitable organisations to their beneficiaries. I hope that my comments have provided some comfort to the hon. Lady and her affected constituents. My Department will absolutely continue to liaise with her.
I do not think it is appropriate for me to comment on the beneficiaries of the charity. What I would say—I think this will be of interest to the hon. Lady—is that one of my officials has already spoken to a trustee, who has outlined that they may well be willing to sell the property, extend the lease or carry out the enfranchisement. Lawyers in the Department are looking to see what flexibilities are available.
I thank the Minister for his comments and the tenor, which I appreciate, of his response to my debate. Will he confirm that he will work with the Charity Commission to ensure that, in this regard, charities set out to be good citizens and good neighbours, and that the brand of charities is not open to criticism?
I will, of course, consider what the hon. Lady has suggested. In terms of providing a positive outcome for her individual constituents, perhaps the most appropriate thing to do is to have that conversation with the trust directly. As I have said, the Department will continue to liaise with her on this case, and I hope that we will reach a conclusion that is satisfactory for her and her constituents.
Question put and agreed to.