Leasehold Reform and New Homes

Keir Mather Excerpts

Wednesday 28th February 2024 Westminster Hall

[Keir Mather (Selby and Ainsty) (Lab)]

It is a pleasure to serve under your chairmanship, Mrs Harris, and I thank the hon. Member for Harborough (Neil O’Brien) for securing this important debate. I want to focus on the issue of maintenance charges, given that the Leasehold and Freehold Reform Bill gives homeowners paying charges for the maintenance of communal areas the right to challenge the reasonableness of those charges and the standard of the service provided.

This Parliament has run out of road on so many issues. The Government have in deed, if not in word, taken the decision not to meet many of the challenges that people in my constituency face—problems I see every day—with measures such as social care reform, special educational needs and disabilities expansion, and fair changes to small and medium-sized enterprises taxation. However, I am glad that they are finally willing to tackle maintenance charges. Whether that is due to the particular passion of the Secretary of State will mean little to my constituents, many of whom are leaseholders and freeholders on new build estates who so desperately need this place to sit up and take notice of their plight.

The present system of maintenance charges and management fees is outrageous. A cowboy system with limited regulation has taken root and left residents with no transparency over how funds are used and no clarity on whether services provide value for money, and the fees charged are exorbitant and quite frankly offensive in the context of a crippling cost of living crisis and the highest tax burden on working people for 70 years. My constituents, as well as many of the constituents of Conservative Members, are being fleeced by these charges.

In the seven months since becoming the Member of Parliament for Selby and Ainsty, I have seen many instances of these charges being levied unfairly on local residents. I have already written to the Minister about a particularly egregious example in Carlton, so I will refrain from mentioning that case to give him adequate time to respond. However, I will mention the Harron Homes estate off Flaxley Road in Selby. The estate has been built for five years and is still plagued with problems. Residents still do not have working street lights, with families not able to go out in the dark. They have to put up with roads that have literal craters in them, ruining the cars on which people rely for work, since public transport in my area is so poor. I spoke to one resident who cannot even lock her front door at night, due to shoddy building work, and has to prop her door closed with a chair so that criminals do not break in and steal her possessions. That is all while each resident on the estate is shackled with eye-watering maintenance charges.

The lack of transparency and accountability in the new build homes sector has led to countless issues. From construction defects to unfair lease terms, homeowners are left feeling helpless, hopeless and at the mercy of developers who are seemingly determined to squeeze every penny they can out of hard-working people. That is a sad part of life in modern Britain. On new build estates across the Selby district, working people live in a broken system, being asked to pay more and more for less and less in return. They have been waiting for the Government to come and help them.

Perhaps the Bill will be the answer, but I caution against any watering down of its provisions; rather, I encourage ambition to ensure that it goes further and gives residents the support that they so desperately need, as the hon. Member for Harborough so eloquently outlined. I am sure that my constituents regret the lack of ambition that we have seen in the past, and although the Government are not going the whole way to provide leaseholders in my constituency with the help that they need, I am glad that they are taking action after 14 years to deal with the problem that, as the hon. Member outlined, has existed since at least 2002.

We can and should go further on this issue, and I am proud to support Labour’s plans to make it a requirement to establish and operate a residents’ management company responsible for all service charges, to give homeowners the accountability and responsibility that they deserve. I support the implementation of the Law Commission’s proposals on the right to manage, covering both flats and houses, as well as the proposals on enfranchisement and on commonhold reform. It is imperative that we address these challenges head on and enact meaningful reform to ensure fairness, transparency and security for all homeowners. The Government have started the job, but ultimately it will be a Labour Government who finally liberate leaseholders from the mercy of an arcane and discriminatory industry.