Leasehold Reform (Ground Rent) Bill [Lords]

Debate between Clive Betts and Andy Carter

Report stage & 3rd reading
Monday 24th January 2022 Commons Chamber

[Andy Carter]

My right hon. Friend is absolutely right. The greatest challenge that my constituents face is that they cannot find the people who did the work—the lawyers no longer exist as a company body. My constituents are working to try to find some recompense, and I hope that the situation will be resolved by the CMA.

Will the Minister consider what actions his Department can take to tackle the problem faced by residents on Steinbeck Grange in Warrington and elsewhere who are locked into leaseholds and did not expect to be in this situation? I hope he will look very carefully at what the CMA says. I know that he has been working with the CMA to try to find solutions, and I hope that he will continue to do that, so that a satisfactory outcome can be found. Having met residents and constituents on Friday evening, I know that the impact that this has had on their lives cannot be overestimated. They have been living through a genuine nightmare, having bought what they thought was their dream home. I urge the Minister to think about the impact that this has had on those individuals.

It is time not only for us to protect those who will be looking to buy a new home in the future, but to secure justice for those who have been mis-sold properties in the past and are still paying a heavy price through unreasonable management fees and escalating ground rents. I am pleased to support the Government’s efforts, but I urge them to go further.

[Mr Betts]

It is a pleasure to speak in this debate. I welcome the steps that the Government have already taken but encourage them to go that little bit further.

Thinking back to the Select Committee inquiry in, I think, 2018, I remember that we invited not just formal witnesses—I have mentioned certain very distinguished lawyers who advised us—but many leaseholders from up and down the country. Up to 100 people came to events. There were a number of roundtables at which they met individual members of the Committee and told us about their experiences.

All the issues that the hon. Member for Warrington South (Andy Carter) has just raised were in our report, including mis-selling and how lawyers told people, “It’s just the same as freehold, really. It isn’t any different: you own your own house and, by the way, there’s an incentive to go with us on this leasehold arrangement. Here are the presents we’ll give you, the garden we’ll do up for you and the new carpets we’ll provide.” What solicitors were doing was scandalous, and we identified that in our report.

The simple message we had from everyone present was, “Everyone’s talking about changing the system for the future, but we’ve got problems here and now.” I understand why the Bill goes only so far on future ground rents and future arrangements, because it is more challenging and complicated to unwind existing legal arrangements than it is to describe what should happen in new arrangements, but I say to the Minister that the people in these leasehold homes who are experiencing all the problems that have already been explained, including in our report, think that that is unfair. They think that people in the future will be protected but that they will not and that Ministers, having raised the issue, should take it one step further and bring in the same rules for them. It is almost as simple as that. They cannot understand why, as they see it, they are being left behind and, so far, ignored on not just ground rents but a range of issues including the mis-selling of the service charge and all the other scandals that the Select Committee unearthed in its inquiry.