Sir David Amess Summer Adjournment Debate
Full Debate: Read Full DebateJohn McDonnell
Main Page: John McDonnell (Labour - Hayes and Harlington)Department Debates - View all John McDonnell's debates with the Leader of the House
(3 weeks, 6 days ago)
Commons ChamberFour years ago, we welcomed many new residents into a number of new homes in my constituency. Despite saving up, getting themselves on the property ladder and paying anything between £300,000 and £500,000 for brand-new leasehold properties, those living at the Bluenote apartments have found themselves living in a nightmare. Bellway Homes was the developer, and Bellway-appointed directors control the residents’ management company.
When the residents moved in, they found that the boiler was not fit for purpose and they regularly went without any hot water or heating for days. The car park gates were constantly breaking down and trapping vehicles inside the car park. The patio slabs were uneven and dangerous, leading to injury, and there were leaks from the roof into individual apartments. Very quickly, service charge bills far exceeded the estimates provided by Bellway, and Bellway and its directors refused to engage.
Four years on, the scale of the problems has grown. Over £100,000 of residents’ funds remain unaccounted for, including money from the heat supply and reserve funds. Service charge demands have doubled in four years, and residents have been charged for fixing defects for which the developer is responsible. Residents have been refused basic financial information, including the end-of-year accounts, receipts and invoices that they are entitled to see under the Landlord and Tenant Act 1985, even though they have gone through every appropriate route. The dangerous patio slabs remain.
Bellway has refused to transfer the freehold to leasehold, even though it is contractually obliged to do so. It has allowed the property management companies— Premier Block Management and Gateway Property Management —to act with impunity in sending out grossly inflated and incorrect service demands, and it has put my constituents under intense pressure to take over the property management companies and expose themselves to significant personal liabilities.
Bellway has been able to get away with this because it controls the management, has control of the freehold and has the resources to bully my constituents, including by instructing top law firms to send them threatening letters. All I am doing is calling on Bellway to be transparent about the building’s finances, to resolve the outstanding issues and the physical problems that the residents are facing, and to transfer the freehold, as it is contractually and morally obliged to do.
I welcome the Government’s draft leasehold reform Bill. However, this case exemplifies the fact that the Bill needs to be much more robust, particularly in relation to service charges and the management transfer process. I do not want to experience this again with other constituents. As I have said, the residents have gone through a living nightmare because of the unaccountability of this development and the management company.