Leaseholders and Cladding

Justin Madders Excerpts

Wednesday 12th February 2020 Westminster Hall

[Justin Madders (Ellesmere Port and Neston) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Davies. I congratulate my right hon. Friend the Member for Leeds Central (Hilary Benn) on securing the debate, and pay tribute to the work that he has done so far. I want to put on the record my co-chairmanship of the all-party parliamentary group on leasehold and commonhold reform, and the fact that I am a patron of the Leasehold Knowledge Partnership, which brings its expertise to the all-party group and to the many people left high and dry as a result of the scandal.

Indeed, I wonder who people would have turned to if the LKP had not been there. It has heard, as we have, from many leaseholders up and down the country who have been placed in an impossible position—unable to pay for remedial work or obtain finance for it, and unable to sell their home until the work is done. They have been left stranded and effectively abandoned.

The debate may be technical and at times slightly legalistic, but at the heart of it are people such as those we have heard about today, who are looking for a bit of leadership and hope. There is clearly a tension between what the Government consider to be the moral case for not passing remediation costs on to leaseholders, and the legal position, by which freeholders may be entitled to recover costs from the leaseholder.

Although the Government’s pledges so far have to a significant extent removed the potential liability for some, there are still costs that can be visited on the leaseholder—and not just in relation to ACM cladding. There is a lack of clarity about other types of cladding and about who is responsible for the many waking watches that have now become necessary. At the moment there are serious doubts about whether the private fund is being utilised properly, or at all. Applications continue to be processed, but we do not know how much, if any, of the fund has been spent. Crucially, we do not know what will happen to those sites where no application has been made at all.

It should be clear that the longer it takes to resolve the issues, the more innocent leaseholders will have to pay out to fund the waking watches. That means thousands of pounds, needlessly spent, that they will probably never get back. Statements from Ministers are not enough. Talk about morality is not enough. Saying that there is a strong expectation on freeholders to put matters right is not enough. There is a lottery at the moment. Depending on the insurance company, the freeholder, the developer, the terms of the lease and the type of cladding involved, any outcome is possible. It seems to me, and probably to most people in the Chamber, that in the absence of someone stepping forward to put matters right, if a property was built in accordance with the regulations at the time, but is now considered unsafe, that must ultimately be the responsibility of the Government.

My all-party parliamentary group co-chair is the Father of the House, the hon. Member for Worthing West (Sir Peter Bottomley), who unfortunately cannot be with us today. He joins me in that analysis and says:

“We have been grateful for the initiative of the Select Committee and we ask them to hold hearings—leaseholders’ voices must be heard. Government and parliament have imminent work to do. That is the way to justice. See the evil. Do good. Recognise the people speaking through the Leasehold Knowledge Partnership.”

We need to hear those leaseholders’ voices. The LKP recently did a survey of 117 different sites where people are affected by the issues, and the findings are stark: 90% of people surveyed said that the Government had provided “No help at all”. That has to change, and very soon.