Leaseholders and Managing Agents

Debate between George Howarth and Barry Gardiner

Tuesday 28th February 2023 Westminster Hall

[Sir George Howarth (in the Chair)]

We are expecting a Division at any moment. When it is called, there will be a 15-minute suspension to enable Members to go and vote, but if there are two votes, there will be a 25-minute suspension, so do the maths.

[Barry Gardiner (Brent North) (Lab)]

I beg to move,

That this House has considered leaseholders and managing agents.

I am grateful to present this debate under your chairmanship, Sir George, because I know that you have significant involvement with your local leaseholders in Knowsley, for which they are very grateful. Saying the word “leasehold” to any Member of Parliament is likely to begin a long conversation on one of two things: fire safety or service charges. I could have phrased that better: it would be more accurate to say “unsafe homes caused by fire safety defects” and “rip-off service charges by unscrupulous managing agents”.

For many people, the issue of leasehold crystalised after the tragedy of the Grenfell Tower fire and the subsequent purgatory that hundreds of thousands of residents throughout the country found themselves living through as they waited to have their own buildings’ fire safety defects remediated. They are still waiting. It was about much more than cladding and EWS1 forms. Residents who found that their homes had been constructed without internal fire stopping, or with inappropriate materials or inadequate fire doors, were unable to sell their property and move on with their lives because construction companies, project managers, surveyors, developers, freeholders, building control, the National House Building Council and managing agents all sought to pass responsibility among themselves. Nobody wanted to pick up the bill for remediation.

In truth, the debate about a wholesale reform of leasehold goes back much further. In the modern era, it starts almost exactly 50 years before 14 June 2017, with the Leasehold Reform Act 1967, which gave qualifying long leaseholders of houses the statutory right to buy the freehold of their homes. In 1969, a problem arose: the Lands Tribunal ruling in Custins v. Hearts of Oak Benefit Society noted that the 1967 Act treated the open market for the reversion of the lease as including marriage value. That is why the Government promptly and rightly reversed that decision with section 82 of the Housing Act 1969. They did not wish to artificially increase the cost for people wishing to buy the freehold of their own home.

To see the injustice of marriage value, one need only to consider the price difference on the open market between a leasehold flat with a 125-year lease and the same flat with a share of freehold. The difference is nil, yet the first is on a yo-yo tender, whereby an owner, such as the Duke of Westminster, sells for the full market value, only to receive the entire property back at the end of the lease, allowing him to sell it all over again or, more often, to receive a large payment to extend the lease when the reduction in the term risks being so short that no lender will advance a mortgage on it and the property becomes unsaleable by the leaseholder, who sees the value of their asset diminishing to zero.

--- Later in debate ---

[Sir George Howarth (in the Chair)]

Order. I think most people have now returned, so we can restart if people are ready to do so. Barry Gardiner was about to deal with an intervention from Mike Amesbury.

[Barry Gardiner]

Indeed, Sir George. My hon. Friend the Member for Weaver Vale (Mike Amesbury) is no stranger to witty epithets, and his suggestion that we should stop polishing and start abolishing was absolutely right.

Before I turn to some egregious instances of service charges and call out by name some of the managing agents that have played fast and loose with the Landlord and Tenant Act 1985, which provides that service charges must be “reasonable” and that services and works must be carried out to “a reasonable standard”, I wish to acknowledge some of the individuals who have championed the cause of leasehold reform over many years.

Antisemitism in Modern Society

Debate between George Howarth and Barry Gardiner

Wednesday 20th February 2019 Commons Chamber

[Barry Gardiner]

I cannot agree with my hon. Friend on that point because it is for the national executive to take that decision—

[Mr George Howarth (Knowsley) (Lab)]

Would my hon. Friend, who invoked the national executive committee of the party, of which I am a member, like to give way?

[Mr Speaker]

If the hon. Gentleman wants to take the intervention, we will then hear the content of it. Does he wish to do so?

[Barry Gardiner]

I will, of course, take, as I said before, one final intervention.

[Mr Howarth]

I am grateful to my hon. Friend. As a member of the Labour party’s NEC, may just say three things? First, we have been far too slow to deal with some appalling cases of antisemitism. Secondly, I do not know whether it has been formally announced yet, but Lord Falconer has offered his services to look at how we can deal more effectively with such cases that are brought to the attention of the party. Thirdly, on a purely personal view, I agree with the comment made a few moments ago by my hon. Friend the Member for Stoke-on-Trent North (Ruth Smeeth) that, frankly, there is no place for any of these people in the Labour party. Sending them on courses is not good enough; they need to be kicked out.

[Barry Gardiner]

I am grateful to my right hon. Friend and I am glad he has been able to talk about the progress that the NEC is making. I believe that more progress will be coming in terms of education, but it has not been formalised at this stage.

It is important to recognise that the antisemitic views harboured by those people, a small minority within Labour, do not exist in a vacuum. No political party should fool itself that it is immune from this poison, and it would be wrong and dangerous to underestimate the scale of the problem across society at large. A few weeks ago, on Holocaust Memorial Day, a survey revealed that 5% of British adults do not believe the holocaust took place and one in 12 believe that its scale has been exaggerated. Clearly, something has gone deeply wrong with our education and our collective memory. The holocaust was the worst crime of the 20th century, in which 6 million Jewish people were murdered. Every single person in Britain should know that. I thank the Holocaust Educational Trust and Holocaust Memorial Day Trust for the work they do to ensure that this atrocity is never forgotten and never repeated.