Leasehold and Freehold Reform Bill

Jim Shannon Excerpts

2nd reading
Monday 11th December 2023 Commons Chamber

[Duncan Baker (North Norfolk) (Con)]

It is a pleasure to be speaking on the Second Reading of this Bill, which sees long-term changes to improve home ownership for leaseholders and freeholders alike. As many people have said, the Bill is much needed, and I am glad it is finally here. It is also a pleasure to be speaking on behalf of a constituent of mine, who does not wish to be named, but who, through the numerous conversations I have had with her over the years, has enlightened me about the significant difficulties and obstacles that many leaseholders face.

These difficulties include, but are not limited to, high service and administration fees, disproportionate costs when wanting to extend leases, managing agents displaying poor practice and, in particular, imbalances in the dispute mechanism. Most of these my constituent has had to deal with personally, and they have impacted on her in numerous ways and led to a long, hard battle that she is still fighting. I can only imagine the stress and concerns that this brings to many families, and many of these points have been raised already this evening. It is through these conversations that I know how many leaseholders feel insecure and uneasy about owning a home with the sector as it currently stands. Leaseholders are a residential sector that makes up 20%—almost 5 million properties—of the housing stock in England. As such, it is important that we strike a balance between the rights of the tenants and those of the landlords, while ensuring that there are more powers and protections for those owning a home.

The Government have committed to not only increasing housing supply, but ensuring that more people feel protected and secure when looking to rent or own their own home. That is a problem I do not need to mention in this House yet again, given the pressures of living in an idyllic coastal area such as North Norfolk, which has some of the highest numbers of second homes and holiday accommodation in the UK. I similarly welcomed the Renters (Reform) Bill for tenants and landlords, and it is encouraging to see that extended to leasehold and freehold as well.

However, as others in the Chamber have said, the Bill does not go far enough in the eyes of many. It can be incredibly tiring, financially taxing and stressful for leaseholders, especially when trying to extend their lease or challenge poor practice. The Bill is trying to make it cheaper and easier for leaseholders in houses and flats to extend their lease and buy the freehold, improve transparency and rebalance the legal costs regime, as well as removing barriers for leaseholders to challenge their landlords’ unreasonable charges at a tribunal.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Gentleman for what he is saying. I know the Leasehold and Freehold Reform Bill is for England and Wales, but it seems that there are many good things in it that, even if the Bill does not go far enough, are to be welcomed. May I, through the hon. Gentleman, ask the Minister, on the finalisation of the Bill, to share information about it with the Northern Ireland Assembly, and the Northern Ireland Department for Communities in particular, to ensure that we can take advantage of the good things in the Bill back home?

[Duncan Baker]

I thank the hon. Gentleman for that intervention, and I think he is right. There are many good things in the Bill, but it does need to go further. I will come on to some of the issues in a moment, but the particular items on which we need to go further are those raised directly by my constituent, who has written to me about this for the last couple of years. It is welcome that the Bill is here, but I already understand that it will be amended, which will be important as it goes forward.

As I have said, I am aware that the Government are planning amendments to take the Bill further. I say to my hon. Friend the Minister that we should give ample time to consult on those amendments, particularly—for me and my constituent—those in respect of the first-tier tribunal system to ensure that all barriers are removed for leaseholders challenging their landlords. We also need to take time to discuss the benefits of bolstering commonholds to ensure that leaseholders who own flats have the same protections and freedoms as those who live in houses. There needs to be better regulation of managing agents—that has been mentioned already—and, as a basic requirement, the first-tier tribunal system needs the jurisdiction to enforce its own orders. Without strengthening the Bill on that in particular, there will not be a significant impact on my constituent.

We have said all along that the Bill has cross-party support, which is really positive in this place. As I have said before, it is positive to see the Government are taking a leading step to help ensure that leaseholders are better protected. It is opening up further opportunities for people to own their own homes, but I hope it does go further so that I can support my constituent and we can really deliver the radical changes we need.