Debates between Hilary Benn and George Howarth during the 2017-2019 Parliament

Leasehold and Commonhold Reform

Debate between Hilary Benn and George Howarth
Thursday 21st December 2017

(7 years ago)

Westminster Hall
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George Howarth Portrait Mr Howarth
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My hon. Friend makes a very good point. Was someone else trying to intervene?

Hilary Benn Portrait Hilary Benn
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If my right hon. Friend is offering, I will.

George Howarth Portrait Mr Howarth
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I did not have my right hon. Friend in mind, but I can never resist giving way to him.

Hilary Benn Portrait Hilary Benn
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My right hon. Friend is most kind. Listening to the powerful testimony on all sides of this Chamber, peeling the layers of an onion to see the full nature of this scandal, does he agree that it is impossible to reach any other conclusion than that the developers are responsible for this? They must have known what they were doing and what they hoped to gain by selling the freehold on to others who then engaged in the sharp practice that we have heard about. They bear the responsibility. The law will stop them from doing it anymore, but they also need to compensate people. Bearing in mind what has happened to developers’ profits —Miller Homes, which I mentioned earlier, announced earlier this year a 44% increase in their pre-tax profits—they can afford it, and they have a moral responsibility to compensate people they have put in an untenable position.

George Howarth Portrait Mr Howarth
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I am glad that I gave way to my right hon Friend; the point he makes is right. People should be compensated for what has happened to them. It is disgraceful and it should never have happened.

I conclude by asking the Minister—I realise that it is quite a delicate thing to do—to consider whether the Government can discourage developers from disposing of freeholds to management companies until it is clearer exactly how this problem will be tackled? That would be very helpful. I realise that it is a tricky area legally speaking, as we heard from the hon. Member for Witney. Nevertheless, I would certainly welcome whatever could be done to discourage or freeze any further transactions for the time being, and I know that all my constituents who have been affected would welcome that, too.