Oral Answers to Questions

Kevin Hollinrake Excerpts

Tuesday 1st November 2016 Commons Chamber

[Sir Oliver Heald]

Yes, I do agree. The Istanbul convention, which the UK signed in June 2012, requires ratifying states to assume jurisdiction over offences of this sort when committed by our nationals overseas. But we need to make changes to primary legislation to introduce this, because the existing law applies only where the rape involves a person under 18 years of age.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

Will Ministers update the House on progress with the Missing Persons Guardianship Bill? It is of great interest to my constituents Mr and Mrs Lawrence; they are the parents of Claudia, who went missing seven long years ago.

[Sir Oliver Heald]

I will write to my hon. Friend, because this is a subject on which we will be saying something shortly.

Conveyancing

Kevin Hollinrake Excerpts

Tuesday 7th June 2016 Westminster Hall

[Will Quince (Colchester) (Con)]

I beg to move,

That this House has considered the conveyancing process.

It is a pleasure to serve under your chairmanship, Mr Percy, and I thank the Minister for being present today to respond on behalf of the Government. I refer you to my entry in the Register of Members’ Financial Interests, because Spicerhaart estate agent kindly provides a regular donation in kind by printing my parliamentary “Reporting Back” publication. I was also a practising property solicitor, although I gave that up on election to this place.

As a nation, we have long held home ownership to be a valued tradition. This Government have done much to promote home ownership and to make it easier for people to get on to the property ladder. Once someone has saved a sufficient sum for a deposit, perhaps utilised a Government scheme such as Help to Buy, and found a house to purchase, however, the conveyancing process kicks in, and recent mortgage research from Which? suggests that seven in 10 people who have bought or sold a home have found it to be nerve-racking and the biggest source of stress apart from getting a divorce. Having a child, changing jobs and arranging care for an elderly relative are all said to be less stressful than getting involved in the property market.

Are we surprised by that? A person or couple have put in their offer and instructed a conveyancer. They pay a retainer to the conveyancer to cover the cost of searches, which is about £200; for a survey, which is between £200 and £600; and any fee due to their mortgage adviser. They also complete a load of paperwork, and then wait and wait until their conveyancer informs them that they are in a position to exchange contracts. If one gets to that point, the house is under contract and people can breathe a sigh of relief. To be clear, up to and until that point, either party may pull out of the transaction, and usually no costs are recoverable. But is that okay because such cases are rare? No. More than one in five property transactions fall through each year—around 200,000—and about £270 million is wasted annually on legal fees and surveys for failed house purchases.

As I mentioned, by way of background, I was a practising solicitor specialising in residential property, so I worked in this area of law and have first-hand experience of the frustration of the conveyancing process in England and Wales. I am not, however, a poacher turned gamekeeper, because although conveyancers are far from blame free, the issues that need addressing are largely with the system and the process. Conveyancers are often demonised, because they are the day-to-day contact with their clients and the venting point for frustration, but in many cases they are not responsible for the numerous obstacles that can arise as part of the house-buying or selling process.

At the end of last year, I was pleased to see that Her Majesty’s Treasury and the Department for Business, Innovation and Skills announced plans for a call for evidence to explore

“options to deliver better value and make the experience of buying a home more consumer-friendly.”

That is no easy task, but I am delighted that the Government are taking it up. Recognising the issue is the first step, although I fear that finding possible solutions will not be as easy.

I will touch on some of the obstacles and frustrations in the conveyancing process, with my observations. Residential conveyancing is covered by the doctrine of caveat emptor—let the buyer beware. The purchaser’s conveyancer is therefore responsible for checking the title and undertaking relevant searches and surveys. That leads to detailed inquiries and, despite the Law Society trying to curb them where they are general, they still represent a considerable administrative burden. The burden is also on the purchaser’s conveyancer to be satisfied on behalf of purchasers and, in most cases, their mortgage lender. There would therefore be considerable merit in clarifying the extent of a conveyancer’s obligation to the client and mortgage lender.

Gazumping is the practice of buyers outbidding those who have already had an offer accepted. The practice causes huge frustration and disappointment for buyers who think they have secured their dream home, only to find that they lose it in a heartbeat to someone with deeper pockets. It also means that those buyers, who lose out regularly, end up paying for abortive legal costs, mortgage consultant fees and survey fees, which can run into thousands of pounds, adding insult to injury. Gazumping accounts for 21% of collapsed sales, while only 15% are because the buyer pulls out at the last minute. The answer could be a financial commitment pre-contract, which would be forfeit should the seller, without warning, raise the price or pull out of the sale.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

I congratulate my hon. Friend on securing this important debate. The last time a Government looked at gazumping was under Labour, which set out to tackle it, but actually tackled a completely different problem and introduced the ill-fated home information pack. Does he agree that any proposal to change legislation should involve the industry, including estate agents—I refer the House to my entry in the Register of Members’ Financial Interests—and the legal profession, to ensure that any changes are beneficial to the process?

[Will Quince]

I thank my hon. Friend for his intervention, because he is right: any change that the Government make has to be in association and after consultation with the industry, which is estate agents, solicitors, licensed conveyancers and surveyors—everyone involved. If we do not take them with us, any change will simply not work.

Long chains are commonplace in the conveyancing process. They can cause considerable delays to buying and selling. Although chains can be and do get broken, it is not easy, and action such as encouraging short-term lets could provide an answer. There is no question in my mind but that the simplification and standardisation of the mortgage application process would be a good first measure to consider, potentially including an industry standard of instructions and documents for the conveyancers to deal with. I recall the minefield that, in practice, is the Council of Mortgage Lenders handbook, with parts 1, 2 and 3, and all lenders having differing requirements. Reducing or standardising that handbook would lead to a reduction in the work that a conveyancer needs to do, therefore considerably speeding up the process.

There is a strong argument for deciding on agreed protocols and procedures in the conveyancing process. I recall that, in practice, it was only when a sale was agreed, conveyancers instructed and a retainer paid that property information protocol forms would be sent out to clients. Those forms are far from simple and take several hours, if not days, to complete, which means at least a week of delay before they are returned to the conveyancer to be sent on to the purchaser’s conveyancer. Comprehensive and standardised questionnaires would create consistency, and enable those selling a property to complete the forms when the property is originally put on the market.

Furthermore, I argue that estate agents have a part to play. They could be obliged to obtain basic information when a property is first marketed, and they could provide more detailed standardised property questionnaires from the conveyancer for the seller to complete while a buyer is being sought for the property. That might shave at least a week off the conveyancing process.

To remain on estate agents, several pieces of legislation affect them, in particular the Estate Agents Act 1979 and the Property Misdescriptions Act 1991. However, things have clearly moved on since then, and I suggest that we might need to review the existing legislation to make it fit for purpose. If, for example, estate agents were licensed—a potential option—the other regulated professionals, such as surveyors and solicitors, would have more confidence in relying on them to manage their part of the conveyancing process.

Currently, landlords and managing agents charge for information about leasehold properties and, in my experience, it often took weeks to receive the information. That causes considerable delays, especially when there is a chain of leasehold properties, which in our great capital city is commonplace. Regulation of the sector dealing with leasehold properties could be the answer, including, for example, minimum response times and a centrally held database of management packs, particularly for large blocks.

Finally, I will reserve some of my fire for my former profession. The move towards factory conveyancing with ridiculously low fees is not only leading to delays, but potentially costing clients. As fees fall, the margins fall and firms need to take on more and more work to remain profitable. That means that many conveyancers are reactive instead of proactive not out of choice but out of necessity. It is the client who then suffers as conveyancers cannot meet their rightly high expectations. Trade bodies have tried to address that by introducing specialist conveyancing credentials such as the kitemark. They have played some part in driving consumer choice, but ultimately—this is my experience and I think the industry would support me in this—the vast majority of clients are primarily motivated by the fee instead of the credentials of the conveyancer. That often leads to lots of complaints being made retrospectively—“I wish I’d used another firm. I wish I’d looked into it.”

Legal Guardianship and Missing People

Kevin Hollinrake Excerpts

Wednesday 23rd March 2016 Westminster Hall

[Mr Raab]

The hon. Gentleman has highlighted the problem with which we are grappling. I understand that people want to hear assurances today, and I will do my level best. Of course, we acknowledge people’s predicament, and we want to do everything we can to help the families of missing people address the administrative problems that can make life even more piercingly difficult at such a traumatic time. It is estimated that there are a significant number of cases of disappearance each year in which there are sufficiently serious problems to make the appointment of a guardian a worthwhile option to have on the legislative table, so to speak.

The coalition Government consulted on the proposals to create a status of guardianship, and the response was published shortly before the 2015 general election. I reassure all Members that the Government are committed to pursuing the measure and getting it into law.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

Will the Minister give way?

[Mr Raab]

I will give way briefly, and then I need to make some progress.

[Kevin Hollinrake]

I am grateful to the Minister. I congratulate my hon. Friend the Member for York Outer (Julian Sturdy) on securing this important debate. I understand that some 2,500 people could be helped by the proposals. I pay tribute to Mr and Mrs Lawrence—Mrs Lawrence is a constituent of mine. They have kept hope alive for Claudia and they hope to help thousands of other people, and today they are hoping for a clear timetable. I know it is a question of finding time, but it is now time to make time for Claudia’s law.

[Mr Raab]

My hon. Friend has been a steadfast campaigner for this reform, and it is because of efforts such as his and those of my hon. Friend the Member for York Outer that I believe we will be able to make progress.

I have mentioned the Government response to the consultation proposals, and the Government are committed to pursuing the measure. It is not, however, solely about creating a new status in law. We also need to be sure that, when the new system is introduced, there is a judicial and supervisory structure to support it. Putting someone in control of another person’s property is a significant and sensitive legal step that is not to be taken lightly. I am sure there is acknowledgment on both sides of the House that we need to get the detail of the proposals right, accurate and tailored in the right way to protect the interests of those directly affected—the families, first and foremost—and to preserve the integrity of the law as a whole. We need a framework in which the interests of the missing person, the families left behind and the third parties who deal with them are correctly calibrated and balanced.

It is wrong to say that progress has not been made. We are making progress, and I will briefly outline some of the key features of the proposed scheme on which we are actively working. First, guardians would be required to act in the best interests of the missing person. In that respect, there would be fiduciary-style duties. Secondly, guardians would be supervised by the Office of the Public Guardian and required to file accounts in much the same way as a deputy appointed under the Mental Capacity Act 2005.

Thirdly, guardians would be appointed by a court on application by a person with a sufficient interest. That is important, because the appointment may be general, in which case the guardian would be able to do what the missing person could have done—they would effectively have a free hand, for want of a better technical term—or it could be limited in certain respects. It is right to have those options on the table.

Fourthly, anyone should be able to apply for appointment as a guardian, provided that he or she has a sufficient interest, which obviously would need to be carefully defined. We are looking carefully at that. We would also need to make sure that their interests did not conflict with those of the missing person. I suspect that we would envisage close family members, or professionals such as a solicitor or an accountant with the requisite familial support, being able to apply.

Fifthly, we envisage that a person should have been missing for a period of, say, at least 90 days before such an application could be made. I am interested in other thoughts on that, but we think 90 days is probably a broadly reasonable period. Finally, the appointment of a guardian should be for a period of up to four years, with the possibility of applying for an extension of another four years. That is a significant period but, ultimately, it would be a temporary provision.

There is obviously a lot of technical detail buttressing the bones of the proposals, and we will need to define in further detail the scope of the guardian’s responsibility, the imposition of appropriate duties on him or her, and the appropriate court procedures for the appointment of the guardian and for redress if the guardian’s conduct falls short of the required standards. There will need to be an adequate supervisory regime over the whole structure, capable of commanding public confidence as well as the confidence and buy-in of the families affected.

As has already been mentioned, there are precedents for such a status and model in legislation in other countries, including in Canada and Australia. Ireland is also currently considering legislation in this field, and we are carefully considering the different models on offer. Obviously, we want to tailor the proposals to ensure that we have the right regime for the legal system, the particular nature of the problems and the administrative aspects in this country. Our development and drafting work is not yet complete, but we are working to complete it as soon as practicable. Given the details that I have talked about, it is important to get it right. We are consulting parliamentary counsel, and we would not go down to that level of detail unless we were serious. I hope that gives some reassurance to hon. Members on both sides of the House, and particularly to the campaigners and the Lawrence family.

We understand the importance of completing the legislation and getting it right, and it is worth saying that guardianship status is not the only measure that we are proposing to help those affected by the disappearance of an individual who is close to them. The Government are also reviewing the missing children and adults strategy, which was originally published in 2011. We are engaging with stakeholders, including Missing People, to update the guidance on cases of children and adults who go missing. That updated strategy will be published later this year and will include measures to help prevent people from going missing in the first place and to improve the response of all the relevant agencies.

Although I am sorry to disappoint anyone here today, I cannot give a specific date that is firmly etched in stone for introducing the legislation. I hope my hon. Friend the Member for York Outer and the whole House will recognise that the Government are committed to delivering the reform and are actively working to that end. It is vital to get the reform right, given that it creates a legal power over another’s assets. We are committed to proceeding as swiftly as we can, never forgetting for a moment the scope that it offers to ease, if only by a modest degree, the pain and suffering endured by the families who have lost loved ones.

Question put and agreed to.

Oral Answers to Questions

Kevin Hollinrake Excerpts

Tuesday 8th March 2016 Commons Chamber

[Michael Gove]

I have discussed this issue with the Lord Chief Justice, the Master of the Rolls and other members of the senior judiciary. It is a complex matter. One of the key things that is problematic is the level of costs in the justice system, and we need to bring about reform, particularly to the civil justice system. That is why the report by Michael Briggs, which lays out particular reforms, including more justice being transacted online, is a powerful way forward, but much remains to be done.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

The Government have given strong support to the idea of creating a new legal form of guardian, to help with the property and affairs of the 3,000 people who go missing every year in the UK. Will the Minister confirm when that might be brought into effect?

[Mr Raab]

I know that my hon. Friend has a family in his constituency who have been through the ordeal he mentions. We are absolutely committed to helping families of missing people to deal with the administrative problems they face over and above the heartache that is involved. We are working on creating the new legal status of guardian of the property and affairs of a missing person, and we will introduce measures to the House as soon as parliamentary time permits.