Oral Answers to Questions

John Healey Excerpts

Monday 5th November 2018 Commons Chamber

[James Brokenshire]

As my hon. Friend will know, we are consulting on the implementation of a ban on inappropriate leaseholds on homes, which are the core of what we are discussing. Legislation will come forward once we have seen the responses to our technical consultation, and there will obviously be plenty of opportunity for colleagues to debate the matter further.

[John Healey (Wentworth and Dearne) (Lab)]

I start by formally echoing the Secretary of State’s comments about Sir Jeremy Heywood. Many of us were privileged to work with Sir Jeremy, and he was an exceptional civil servant who gave outstanding service to this country. Our deep sympathies are with his wife and family at this time.

As we have heard, many of us have constituents who bought their home but then found that they do not own it and feel ripped off by unfair leasehold contracts. When we hear, repeatedly, that leasehold buyers did not choose their own solicitor, were wrongly told that they could buy their freehold cheaply at any time, or found out later that they had to ask and pay freeholders for permission to own a pet, change their carpets or build a conservatory, the individual cases add up to something bigger. The Government must act, just as with other mis-selling scandals, such as on pensions, mortgages or payment protection insurance. Will the Secretary of State today back an inquiry into this systematic mis-selling to leaseholders?

[James Brokenshire]

I recognise and appreciate the right hon. Gentleman’s comments about Sir Jeremy Heywood. I know that that message will have been heard throughout the House.

The Housing, Communities and Local Government Committee’s investigation into leasehold is live, and I hope that the right hon. Gentleman recognises the seriousness with which we take the issues that he and others have flagged, and the troubling matters that pertain to some of the practices within the leasehold market. That is why I am taking action.

[John Healey]

It is not the Select Committee’s action that counts, but the Government’s action, which has been too weak and too slow and, critically, largely overlooks the plight of existing leaseholders. An industry survey shows that six in 10 leaseholders did not even know what being a leaseholder meant until after they had bought, and that nine in 10 regret having bought a leasehold at all. Those are classic signs of mis-selling—it is a national scandal. I will give the Secretary of State another chance: when will he stand up for leaseholders and launch an inquiry into mis-selling?

[James Brokenshire]

Nobody is ignoring the issue. That is not only why we are legislating to address the inappropriate use of leasehold for new homes, but why I have underlined today the requests that I have made of the Solicitors Regulation Authority and the Competition and Markets Authority. We recognise that there are serious issues, which is why we are taking action. We want to ensure that leaseholders’ concerns are heard and fully understood, and that redress can be provided.