Leasehold and Freehold Reform Bill (First sitting)

Dehenna Davison Excerpts

Committee stage
Tuesday 16th January 2024 Public Bill Committees

[The Chair]

I am a lawyer, too; I know that we manage to speak quite a lot.

Amanda Gourlay: I am grateful, thank you very much.

[Dehenna Davison (Bishop Auckland) (Con)]

Q Thank you for comprehensive run-down so far. I am sure there is more to come.

Amanda Gourlay: I am going to try not to go too far. I have been described as enthusiastic and I find I have to pull back slightly.

[Dehenna Davison]

Q We need that level of enthusiasm, and the granular information really helps us to formulate our views. You were sitting in on the previous evidence session, when we heard some strong, and in some ways harrowing, evidence from the brilliant campaigners from the National Leasehold Campaign, particularly around transparency, not just on service charges but with regard to the sale of leases, and the lack of information on that, and the increased cost for leaseholders who wish to enfranchise.

What did you make of that? Clearly, the Bill contains a number of provisions, particularly on consumer rights. From my perspective, the most interesting is around transparency. Do you think the Bill goes far enough? You have already given examples on service charge accounts, but are there other ways that the Bill could go further to improve that?

Amanda Gourlay: What I would say, to start with, is that my area of expertise is service charges. I know the Committee will hear from Philip Freedman KC (Hon) and Philip Rainey KC on Thursday. I would defer to them on all matters on enfranchisement. That is my preface to your question. Transparency is going to come from consistent information being provided in the service charge arena. Thinking specifically about the sale of properties—the assignment of leases and the sale of leases—one issue that comes up quite regularly is the provision of information on the position on service charges, including questions like, “Has the leaseholder paid all the service charges?”, “Are there any works proposed for the future?” and those sorts of general questions that we all want to know the answers to if we are going to buy a property. There is no regulation of that whatsoever at the moment, and it is quite a sticking point.

I have had one or two cases where I have been involved in those sorts of issues—where a leaseholder has wanted to sell on their lease and has simply not been able to obtain the information from whoever it is who should be providing it and to whom the request has been made. That information is really something that we need to see pushed forward.

The Bill does provide two clauses about the provision of information. Provided that it is understood that those provisions extend not only to the leaseholder—“Please tell me about my service charges”—but also to the packs that conveyancers will ask for when flats are being sold on, it would be a good thing to move that forward, because it has been a real struggle to impose an obligation or to find a way of obtaining that information in a reasonable time and at a proper price from the managing agent. That would be my answer in terms of sales.

[Dehenna Davison]

Q What would you consider a reasonable time? I mean, 24 hours would be great, but—

Amanda Gourlay: Twenty-four hours would be great, but that would probably sow total panic at the receiving end—I know that it would if I received that and I was doing something else. It will depend very much on the nature of the property. There are some very complex developments over in the east end of London. On the other hand, there are Victorian houses that are only two or three flats, and that should be much more straightforward.

I am aware that people have been able to pay for, say, a seven-day or five-day service, and there has been an uplift in the price for that. I am not the best person to ask about what the price should be. What I would say is that if a managing agent to whom this request would normally go is keeping their records up to date, one would hope that with the progress we have in software nowadays, that should very much just be the pressing of a button.

On work that is going to be carried out in the future, I have heard talk about, for example, mandatory planned maintenance plans. I have not seen those in the Bill. If a building or property is being well managed, one would expect there to be a plan for the next five or 10 years—what is needed to be done in terms of decorating, lift replacement and so on. Again, if that is in place, I would anticipate that it should be relatively straightforward to produce the information. I cannot give a specific answer; what I would say is that if we are all keeping our records up to date, that should be a relatively speedy process.

[Barry Gardiner]

Q I understand that you were involved in the Canary Riverside judgment just before Christmas.

Amanda Gourlay: That is correct—yes. Forgive me; I was involved in Canary Riverside between 2016 and 2017. My involvement finished in June 2017.