Residential Estate Management Companies
Debate between Claire Young and Gideon Amos(4 days, 9 hours ago)
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Gideon Amos
My hon. Friend is absolutely right and is championing the issue in his constituency. The companies watching or reading the debate would do well to listen to his words, because they could easily improve their practices right now by introducing a code of practice, as he suggests.
Liberal Democrats believe that leasehold tenure should be abolished for all properties, including flats. For too long, homeowners have been exploited by what is ultimately a feudal system. Existing residential leasehold should be converted either to freehold or commonhold, as appropriate, and we urge the Government to introduce legislation to make that happen. On commonhold properties and commercial leaseholds, ground rent should be capped to a nominal fee, so that everyone has a degree of control over their property.
Of course, the Conservative Government introduced to Parliament the Leasehold and Freehold Reform Act, which received Royal Assent in 2024. However, the secondary legislation, which would give leaseholders rights over their freeholder landlords when it comes to accounts and accountability in general, has failed to be enacted. Crucially, the Act fails to regulate property management agents. As my hon. Friend the Member for Honiton and Sidmouth (Richard Foord) pointed out, there has been widespread agreement about that since the 2019 report chaired by the Cross Bencher Lord Best, supported by the Liberal Democrats in this House and in the other place. We need to see vital improvements to the 2024 Act. I hope the Minister will today confirm when secondary legislation will be introduced, or indeed other legislation on the regulation of property agents.
Liberal Democrats want the management of buildings to be professionalised. Building maintenance and safety need to be guaranteed, not dependent on whoever happens to be the freeholder. Nowhere has that been more important in terms of safety than in the entirely avoidable but tragic disaster of Grenfell Tower. Putting profit before safety, as Sir Martin Moore-Bick’s report has found, was one of the chief causes of that fire. Just as profit-driven sign-off in the testing of building materials and in the inspection of buildings needs to be reversed with the ending of both the privatised Building Research Establishment and privatised building inspectors, so too there is surely now a need to regulate property agents—for safety reasons, as much as anything else.
Today is also Stephen Lawrence Day. As Stephen was a budding young architect, it is fitting that we are debating regulating building management agents; it would be even more fitting if there was a commitment today to bring legislation forward. Just as leaseholders are charged extortionate amounts while being poorly served by the landlords and estate management companies they employ, too many freeholders of their own homes find themselves beholden to others over whom they have no control in relation to the open spaces and common areas, as my hon. Friend the Member for Glastonbury and Somerton (Sarah Dyke) mentioned.
Claire Young (Thornbury and Yate) (LD)
My own local council is attempting to address the issue of fleecehold through its new local plan, which I commend. Would my hon. Friend urge the Government to bring forward the legislation quickly in order to strengthen the council’s position?