Leasehold Reform

Debate between Heather Wheeler and John Bercow

Thursday 11th July 2019 Commons Chamber

[Sir George Howarth]

On a point of order, Mr Speaker. The Minister has just said that she would want to press ahead as soon as parliamentary time allows. I wonder whether you could confirm that the one thing this Parliament is not short of is time.

[Mr Speaker]

If it were for the Chair to decide, I would happily allocate time to all sorts of worthy purposes, but, sadly, the powers of the Speaker do not extend that far. If the right hon. Gentleman is bidding to increase my power, far be it for me to say no.

[Mrs Wheeler]

Thank you, Mr Speaker. Time is rocking on, so I will rush. We have been talking today about a situation where the ground rent is so high that it becomes an assured shorthold tenancy and so people can be evicted. The Government have committed to changing legislation to close that loophole, so that a leaseholder cannot be evicted on that basis. I am glad to answer that one.

We will not stop there. As our recent publications show, these reforms are only one part of the plans we have for the leasehold sector. This is why we were able to accept, in full or in part, most of the recommendations made by the Select Committee. Let us consider the work Lord Best is doing on the regulation of property agents. His working group is looking at a number of things, including having an independent regulator with a legally enforceable code of practice, which will require all property agents to register; and nationally recognised qualifications for property agents to practise.

We have also asked Lord Best’s group to look at the transparency of service charges, as well as the use of administration and permission fees, and consider in what circumstances they are justified and whether they should be capped or banned altogether. This work will allow us to raise standards of property management and give leaseholders the confidence that they are being charged fairly—both things that were called for by the Select Committee. We look forward to receiving Lord Best’s report, which will also be published for all to see very shortly.

On charges, it is unacceptable that some residential freeholders are unable to challenge excessive fees for the maintenance of their estates. I am happy to confirm that under the new legislation, freeholders will be given the right to challenge the reasonableness of such fees. They will also be able to apply to tribunal for the appointment of a new manager. This will help to increase the transparency, accountability and reasonableness of fees, which is something else the Select Committee wanted to see.

I understand that many existing leaseholders want the Government to legislate to amend onerous ground rent terms. As I pointed out previously, the inclusion of legislation to amend existing contracts presents problematic human rights implications, as has been made clear in the information put out recently by the Law Commission. Despite that, I firmly believe that doubling ground rents are unacceptable and should be varied, which is why we are encouraging the sector voluntarily to vary leases and show that it is willing to solve the problems of its own creation. I have been encouraged by the response we have received. More than 60 leading developers, freeholders and managing agents have signed a public pledge that will free leaseholders from the shackles of doubling ground rents.

[Mrs Wheeler]

I really do not have time. Unfortunately, there is other business that needs to be done tonight.

I am aware that many leaseholders believe they were mis-sold their properties. Many people write to me to say that the leasehold tenure was not properly explained and that onerous terms were not made it clear to them. Others were promised that they would be able to buy the freehold for a certain price after two years, only to find that had been sold on buy an investor in that time. I am delighted that we have a commitment of action from the Competition and Markets Authority, which will look into the issue. It will use its consumer protection powers to determine whether leasehold terms, including onerous ground rents and permission fees, can be classed as unfair. If the evidence warrants it, the CMA will consider bringing forward enforcement proceedings. I look forward to hearing about the CMA’s progress and hope that its work complements the reforms we already have in train.

The issues I have just outlined show us that better information and advice is needed for potential and existing leaseholders, which is why we recently updated our “How to lease” guide, which now gives clear information on what leasehold tenure is, the costs associated with being a leaseholder and the rights and responsibilities that leaseholders have. This will give people a better understanding of what it means to be a leaseholder. If things go wrong, though, I want them to receive quality, free and independent advice, if they want it. I am pleased that many campaign groups have played an active role in this subject area, supporting leaseholders who have found themselves in difficult circumstances.

I specifically thank my hon. Friend the Member for Worthing West (Sir Peter Bottomley) and the hon. Member for Poplar and Limehouse (Jim Fitzpatrick) for their work as co-chairs of the all-party group on leasehold and commonhold reform, and I am grateful for their comments. We value the work of the Leasehold Knowledge Partnership and how it works with the Department. I am clear that LEASE is absolutely on the side of leaseholders. Its advice has helped many leaseholders to understand what is in their lease.

We have heard a lot today about the work of the Law Commission. The House should be confident that the Government are committed to improving the leasehold sector. Although leasehold as a tenure will continue to be used for flats, we have committed to reinvigorate commonhold, as mentioned by my hon. Friend the Member for Harrow East (Bob Blackman). The Government support the wider use of commonhold, which allows homeowners collectively to own and manage the common parts of a residential building.

Although commonhold works well in other countries, there are currently fewer than 20 commonhold developments in Wales. That is because of deficiencies in our legislation; it is clear that reform is needed. For that reason, the Government are working with the Law Commission to make the legal changes needed to see more commonhold developments emerge. The Law Commission is currently analysing the responses to a consultation on that very subject, and I look forward to receiving its report. We continue to work with the Law Commission and to fund it, and we look forward to its conclusions.

As the House can see, we are pushing ahead with our plans to improve the system for leaseholders today and tomorrow. We will create a market that really works for consumers—one that is fair, simple and transparent. We are taking action now to ban the sale of leasehold houses through Help to Buy programmes. Homes England will negotiate contracts with all Help to Buy developers to rule out explicitly the building and selling of leasehold houses, except in the very limited circumstances when it is justified. On 2 July 2018, the Secretary of State announced that no new Government funding schemes would be used to support the unjustified use of leasehold for new houses, and that includes the new Help to Buy scheme from 2021. That announcement alone has brought down sales from 11% to 2%.

The hon. Member for Newcastle upon Tyne Central (Chi Onwurah) talked about her issues with the St Mary Magdalene and Holy Jesus Trust. I am very sorry that, obviously, my letter to her had not arrived by the time that she had written her speech. I have written to her in the past three days, so I am very sorry that she has not got it. It does clarify the position.

The Chairman of the Select Committee needs a couple of minutes in which to speak, so I will conclude. We will create a market that really works for consumers: one that is fair, simple and transparent. In that spirit, I thank hon. Members for their speeches and questions today. I thank my brilliant civil servants for all their hard work. I thank LEASE and all the committed people involved in this area, and I look forward to driving ahead with our programme of leasehold reform.

[Mr Speaker]

To wind up, I call Mr Clive Betts, the Chairman of the Housing, Communities and Local Government Committee, an august figure in the House.

Point of Order

Debate between Heather Wheeler and John Bercow

Tuesday 25th June 2019 Commons Chamber

[Mr Speaker]

The hon. Gentleman, whom I thank for his point of order, is well able to advise himself, and he has advertised his concerns for starters today. In so far as he seeks my counsel, and I focus it on matters appertaining to the Chamber, I suggest that he seek to catch my eye at an early stage, perhaps in a Question Time session this week, in which he might be able to raise the matter at a very high level in question form. If thereafter he wishes a fuller consideration of the matter, he could always apply for an Adjournment debate. There is a ballot for such debates, which, I can advise him, is of a guided character—it is a guided ballot—and he may well find that he is successful in that ballot.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Mrs Heather Wheeler)]

Further to that point of order, Mr Speaker. As the MP for the neighbouring constituency to Burton in South Derbyshire and as an HCLG Minister, I very much look forward to having further conversations with my hon. Friend the Member for Burton (Andrew Griffiths) about this issue, which is very important to our neighbouring constituencies.

[Mr Speaker]

That is extremely helpful. The hon. Gentleman’s cup runneth over, such is the plentiful supply of assistance and advice. I look forward to hearing further from him about this matter in the days to come.

Oral Answers to Questions

Debate between Heather Wheeler and John Bercow

Monday 17th June 2019 Commons Chamber

[Mrs Wheeler]

The hon. Lady, as ever, puts her case terribly well. The appropriate Minister would be delighted to meet her.

[Mr Speaker]

Very well done. I think that we will put that down as a win.

[Alex Cunningham (Stockton North) (Lab)]

Crisis and the all-party group on ending homelessness recently appealed to Ministers to prioritise for housing survivors of domestic abuse, but is not it the truth that it is difficult to prioritise anyone because of the social housing crisis—a crisis acknowledged just a few minutes ago by the Under-Secretary of State for Housing, Communities and Local Government, the hon. Member for Rossendale and Darwen (Jake Berry)? Housing associations and local councils in particular have insufficient stock and limited capacity to build new ones to meet demand, and there are more than 1 million households on council waiting lists. Last year, just 6,500 social rented homes were built. That means that it will take 172 years for everyone on the current waiting lists to get a social rented home. Will the Minister please spell out exactly how she plans to sort out this crisis and offer our people some hope that they can also have a home of their own?

Oral Answers to Questions

Debate between Heather Wheeler and John Bercow

Monday 28th January 2019 Commons Chamber

[Mrs Wheeler]

My hon. Friend will have to excuse me for speaking with my back to him.

My hon. Friend works tirelessly to support the residents of Premier House in Edgware on the removal of cladding. I understand that that case will be brought before a tribunal at the beginning of April. The Government have made it clear that we expect building owners in the private sector to protect leaseholders from remediation costs. A growing list of companies, including Barratt Developments, Mace Group and Legal & General, are doing the right thing and are taking responsibility, and I can announce that Aberdeen Asset Management and Fraser Property have also joined that list. I urge all other owners and developers to follow the lead of those companies. I will consider all other options if they do not do so.

[Mr Speaker]

The growing phenomenon of Ministers reading out great screeds that have been written is very undesirable. A pithy encapsulation of the argument is what the House wants to hear.

[Jim Fitzpatrick (Poplar and Limehouse) (Lab)]

Last week, the Minister told me that the Department is keeping pressure on Ballymore Ltd, following the Secretary of State’s letter of 19 December, for which I am grateful. However, the leaseholders have now received an offer from Ballymore saying that the bill is £2.4 million for fire safety work. They can have half a million pounds off, but they must pay the rest. That offer is only open until 31 March. What more can the Department do to help my constituents? Time is clearly running out.

[Mrs Wheeler]

I am not reading from any notes, Mr Speaker.

I thank the hon. Gentleman for that very useful information. If we can see the letter, we will take the matter forward.

[Mr Speaker]

Excellent.

[Robert Neill (Bromley and Chislehurst) (Con)]

20. The Housing Minister, in response to a debate on Wednesday 22 January, indicated that he had written to the owners and the developer of Northpoint in Bromley. It is exactly the same situation as that outlined by my hon. Friend the Member for Hendon (Dr Offord). Has the Minister yet had a response, and what assurance can be given to Bromley Council about the guidance should it use emergency remedial powers under the Housing Act 2004?

[Mrs Wheeler]

It is a pleasure to be able to face my hon. Friend; I apologise to hon. Members behind me.

The Secretary of State has written, and we are awaiting the outcome to that. As soon as we get a reply, we will be in touch directly with my hon. Friend.

[Mr Speaker]

I call Jim McMahon.

Tenant Fees Bill

Debate between Heather Wheeler and John Bercow

Ping Pong: House of Commons
Wednesday 23rd January 2019 Commons Chamber

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Mrs Heather Wheeler)]

I beg to move, that this House agrees with Lords amendment 1.

[Mr Speaker]

With this it will be convenient to discuss the following:

Lords amendments 2 to 35.

Lords amendment 36, and amendment (a) in lieu.

Lords amendment 37, and amendments (a) and (b) thereto.

Lords amendments 38 to 47.

Lords amendment 48, and amendment (a) thereto.

Lords amendments 49 to 60.

[Mrs Wheeler]

I draw Members’ attention to my entry in the List of Ministers’ Interests.

I am delighted that today we have a final opportunity to scrutinise the Tenant Fees Bill. I am grateful for the considered contributions from hon. Members to date. In particular, I thank the members of the Housing, Communities and Local Government Committee, chaired by the hon. Member for Sheffield South East (Mr Betts), for their pre-legislative scrutiny. I also thank the Opposition Front Benchers, the hon. Members for Great Grimsby (Melanie Onn) and for Croydon Central (Sarah Jones), for their constructive engagement.

It has been clear throughout that the Bill is one that we all support and that will deliver important changes in the private rented sector, improving the lives of millions of tenants. Letting fees can impose a significant burden on tenants, who often have little choice but to pay them time and again. The Bill will put a stop to such practices by banning unfair and hidden charges, making it easier for tenants to find a property at a price they are willing to pay, and saving renters an estimated £240 million in the first year alone. I know the changes may worry some in the lettings market, but agents who offer good value and high-quality services to landlords will continue to be in demand and play an important role in the sector.

Before I speak to the Government amendments made in the other place, I want to put on the record my thanks to my noble Friend and ministerial colleague Lord Bourne of Aberystwyth, who ably steered the Bill through the House of Lords, and to my noble Friend Lord Young of Cookham, who assisted. I also thank all peers who contributed positively to the debate. The Bill has benefited from their constructive engagement and scrutiny. Finally, I thank the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for Richmond (Yorks) (Rishi Sunak), for his efforts in leading the Bill through this House last year.

I believe the Lords amendments strengthen the Bill and respond to many concerns raised during the debate in this House. Lords amendments 1, 2, 5 to 12, 15 to 18, 28 to 35, 49 and 55 are minor and technical inclusions that ensure consistency in the Bill and that the Bill best delivers on the policy intent. Lords amendment 5 clarifies that letting agents are prohibited from requiring a tenant or relevant person to enter into a contract with themselves—for example, for additional services such as providing an inventory. Lords amendment 1, 2, 6 to 12 and 28 to 35 replace references to “tenant” with references to “relevant person”. Amendment 55 changes a reference to “incorrect and misleading information” to “false and misleading information”, to align with other references in schedule 2. Amendment 15 to 18 ensure that the language around “day” and “date” in clause 11 is consistent, and amendment 49 makes it clear that the definition of a television licence in paragraph 9 of schedule 1 applies to the entire Bill.

I know that many hon. Members feel passionately about capping tenancy deposits. The issue has been discussed in great detail in both Houses, and we have listened carefully to the arguments made. That is why we tabled Lords amendments 36 and 37 to lower the cap on deposits to five weeks’ rent for properties where the annual rent is less than £50,000; where the annual rent is £50,000 or more, the deposit cap will remain at six weeks’ rent. The vast majority of tenants will be subject to a deposit cap of up to five weeks’ rent. The higher six-week deposit cap will apply only to properties where the monthly rent is £4,167 or more. Valuation Office Agency data show that across England the median monthly rent is significantly less than that. The upper quartile monthly rent for properties with four or more bedrooms in London is £3,142. The higher deposit cap is intended to apply not to the bulk of the private rented sector, but to high-end rentals—a niche area of renting where the costs involved are greater, making a deposit cap of six weeks’ rent more appropriate.

The Government took a balanced view. We wanted to ensure that landlords had sufficient financial security and flexibility for their properties, but recognised concerns that a six-week cap for all tenants might not best deliver the changes to affordability that are needed at the lower end of the market. Importantly, a cap of five weeks’ rent for properties with an annual rent of less than £50,000 extends the benefits of the deposit cap to an estimated one in three tenants. I am sure hon. Members agree that that is a laudable outcome. Also importantly, a cap at five weeks’ rent also aligns with a recommendation made by the Housing, Communities and Local Government Committee.

The amendment tabled by the hon. Member for Great Grimsby would lower the tenancy deposit cap to three weeks’ rent for all tenancies. Above all, the amendment would not help tenants and it risks distorting the market and causing behavioural change. Using data from deposit protection schemes, we estimate that some 93% of deposits now exceed three weeks’ rent. A cap of three weeks’ rent would greatly increase the risk of the deposit not fully covering damage to the landlord’s property or any unpaid rent.

Oral Answers to Questions

Debate between Heather Wheeler and John Bercow

Monday 10th December 2018 Commons Chamber

[Mrs Wheeler]

Yes.

[Mr Speaker]

We are very grateful.

[Bob Blackman (Harrow East) (Con)]

What assessment has my hon. Friend made of local authorities assisting rough sleepers into a home of their own following the Homelessness Reduction Act 2017 coming into law?

Oral Answers to Questions

Debate between Heather Wheeler and John Bercow

Monday 5th November 2018 Commons Chamber

[Mrs Wheeler]

I am very sorry that the charities are telling the local Member that, because overall we are putting in place a £1.2 billion fund for homelessness. I would certainly be very happy to write to the hon. Gentleman. His area is part of the greater west midlands project, and the greater west midlands Mayor, Andy Street, has many millions of pounds to help with homelessness—going to Coventry as well as the other parts of the greater west midlands.

[Mr Speaker]

I want to get through two more questions very quickly.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

13. What recent steps he has taken to ensure that changes to existing leaseholds are more (a) accessible and (b) affordable.

--- Later in debate ---

[Mr Speaker]

The hon. Gentleman might like to secure an Adjournment debate on the subject.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Mrs Heather Wheeler)]

What a very good idea, Mr Speaker. I will not talk about the judicial review in detailed terms—obviously, it is ongoing—but I have been proud to sign off selective licensing in other parts of the country where the council has done a good job. I ask the hon. Gentleman and his colleagues in Brighton to urge the local council to review its paperwork. If it comes back with detailed arrangements that I can sign off, I certainly will.

Oral Answers to Questions

Debate between Heather Wheeler and John Bercow

Monday 30th April 2018 Commons Chamber

[Mrs Wheeler]

I thank the hon. Lady for that rant. Unfortunately, I have a feeling that she might be—what is the word we are looking for? [Interruption.] Some of the most important parts of the Act will be implemented in October, so councils have six months to get their places in order.

[Mr Speaker]

We probably will not reach the end of the Order Paper and it would be sad to be deprived of the intellect and eloquence of the right hon. Member for Harlow (Robert Halfon), so if he wishes to come in now, he can.

[Robert Halfon (Harlow) (Con)]

20. My hon. Friend the Minister will be aware of the excellent homeless shelter in Harlow called Streets2Homes. What measures is she taking to support local homeless shelters?

Points of Order

Debate between Heather Wheeler and John Bercow

Wednesday 11th March 2015 Commons Chamber

[Mr Speaker]

I am grateful to the hon. Lady for her point of order and for notice of its likely content. She has put her point on the record. I hope she will understand if I say that the content of Ministers’ observations in the House is not a matter for the Chair. If the Chief Secretary, upon reflection, judges that he has made an inaccurate observation, it is of course open to him to correct the record in one or other of a number of different ways. I hope the hon. Lady will not take offence if I say—it is meant as a compliment—that she is a wily character. She has largely achieved her objective by putting her point on the record in prime time.

[Heather Wheeler (South Derbyshire) (Con)]

On a point of order, Mr Speaker. You have always advised Members of this House of the importance of showing respect to others in the workplace. In that regard, is it appropriate, in this House, which is a workplace, that a female Minister should be referred to as a washing machine?

[Mr Speaker]

I am grateful to the hon. Lady for her point of order. I certainly did not say that a Member was a washing machine. If I caused offence to an hon. Member on Monday afternoon in the course of Question Time, in rebuking her for a long answer—it did result in a somewhat shorter one after that—and if I caused offence by what I said, I very happily apologise to that Member. I intended to cause no offence to her and hold her in the highest esteem. I hope I ordinarily treat Members with great courtesy. It was an off-the-cuff remark, it may well have been a foolish one, and I apologise for it.

Points of Order

Debate between Heather Wheeler and John Bercow

Wednesday 18th June 2014 Commons Chamber

[Heather Wheeler (South Derbyshire) (Con)]

rose—

[Mr Speaker]

Is the hon. Lady’s point of order on the same subject or a different one?

[Heather Wheeler]

It is on the same subject, sir.

[Mr Speaker]

That is not necessary, because the point has been made eloquently clear.

[Heather Wheeler]

It is on a separate piece of business.

--- Later in debate ---

[Mr Speaker]

No, I have dealt with the matter. On a separate matter, I call Heather Wheeler.

[Heather Wheeler]

Thank you, Mr Speaker. On a separate matter, I wonder whether you could help us. There is a feeling among Members that the TV cameras are going perhaps too far, too fast. There is a rumour going around that they will be coming into the voting Lobbies while we are actually voting. I would suggest that you might be able to put our minds at rest and tell us that that is not going to happen.

Defence Reform Bill

Debate between Heather Wheeler and John Bercow

Wednesday 20th November 2013 Commons Chamber

[Heather Wheeler]

I thank my hon. Friend for giving way.

[Mr Speaker]

It was good of the hon. Gentleman to remind the hon. Lady of her own name.

Oral Answers to Questions

Debate between Heather Wheeler and John Bercow

Thursday 24th January 2013 Commons Chamber

[Mr Speaker]

I am grateful to the Minister for his tutorial on that matter.

[Heather Wheeler (South Derbyshire) (Con)]

9. What steps he is taking to assist the dairy farming sector.

[Heather Wheeler]

I thank the Minister for his reply. I was disappointed to see Arla Milk Link’s recent milk price reduction of 0.23p per litre. Farmers were given just one day’s notice of the cut, but they would have to give between 12 and 15 months’ notice before being able to leave their contract. That is against the commitments made in the voluntary code of practice and runs counter to the good progress made in the past few months by other processors, such as Dairy Crest, which is based in my constituency of South Derbyshire. For the voluntary code to work, we must ensure that there is a level playing field—

[Mr Speaker]

We need a question immediately.

Capital Gains Tax (Rates)

Debate between Heather Wheeler and John Bercow

Wednesday 23rd June 2010 Commons Chamber

[Heather Wheeler (South Derbyshire) (Con)]

My hon. Friend is absolutely right to draw attention to the fact that small and larger businesses have taken the hit. We hear so often from Labour Members that they are worried about what is happening in the public sector, but that sector needs to take a leaf out of the book of the private sector, in which people have taken 10% cuts and four-day weeks. That has not happened at all in the public sector. We are looking for an increase in productivity. A 25% reduction does not necessarily—

[Mr Speaker]

Order. I just very gently say to the hon. Lady that an intervention must be just that; it must not be a mini-speech.

Mid Staffordshire NHS Foundation Trust

Debate between Heather Wheeler and John Bercow

Wednesday 9th June 2010 Commons Chamber

[Mr Speaker]

There is no giving way involved; this is a statement.

[Heather Wheeler (South Derbyshire) (Con)]

I welcome my right hon. Friend’s statement. Only yesterday, I wrote to him regarding a constituent in South Derbyshire who had gone through a four-hour wait and was then admitted, to make sure that the four-hour rule was not broken, and had to stay in a ward for six hours and see even more people when he could have been on a bus going home much earlier. There are lessons to be learned across the whole country, and I look forward to the report coming through.