Levelling Up, Housing and Communities
Debate between Lee Rowley and Liam Fox(3 months, 2 weeks ago)
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Sir Liam Fox
The issue of rent charges also applies to freeholders; it is not just leaseholders who are the victims. An amendment to the Rentcharges Act 1977 would deal with the problem once and for all, so I encourage my hon. Friend to look at amendments to that Act when we bring forward legislation on this subject. If the Government do not want to bring forward such an amendment to the 1977 Act, I would be more than happy to table one.
Lee Rowley
My right hon. Friend is absolutely right: there are impacts on both freeholders and leaseholders. Different types of property and tenure are impacted in different ways. Elements of the rent charges regime will be extinguished by the 1977 Act, which he rightly referenced, in 2033; that has been in law since before I was born.
[Official Report, 15 May 2024; Vol. 750, c. 400.]
Written correction submitted by the Minister for Housing, Planning and Building Safety, the hon. Member for North East Derbyshire (Lee Rowley):
Leaseholders and Freeholders
Debate between Lee Rowley and Liam Fox(3 months, 2 weeks ago)
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The Minister for Housing, Planning and Building Safety (Lee Rowley)
It is a great pleasure to respond in this short debate, and to talk about an issue of huge importance to so many colleagues around the House. Over the past few months, as we have talked about leasehold, more and more colleagues have come up to me to highlight the iniquities, problems and challenges that they see in their constituency. I am grateful to my right hon. Friend the Member for North Somerset (Sir Liam Fox) for highlighting the issues that he has experienced, and I am very sorry to hear about Port Marine and the challenges that its residents face. I obviously cannot comment too much on individual cases, but it is absolutely vital that we hear individual examples. I have heard examples from around the country of particularly egregious extortion, and problems with the framework of leasehold. That is one of the reasons why we are bringing forward leasehold reform—because we recognise that there needs to be change.
Leasehold can work in some places, and some elements of it can be successful, but as my right hon. Friend has outlined, the problem is that there is too much bad practice in the sector. There are too many distortions within that tenure, too many inefficiencies that can be exploited, and frankly too many rent-seekers in the sector who are trying to exploit those distortions and inefficiencies. I know that Opposition colleagues also feel strongly about this issue, but we Conservatives are nothing if we do not seek to smash monopolies, stop rent-seeking, make markets more perfect and stand up for the little guy. Stories such as the one that my right hon. Friend recounted today highlight the reason why we are reforming leasehold. There is a way to go in making that market more perfect, but that is exactly what we are trying to do.
The Leasehold and Freehold Reform Bill will bring into law many reforms to better protect and empower leaseholders. Existing leaseholders will find it easier and cheaper to extend their lease or buy their freehold. Reforms to the cost regime for enfranchisement and right-to-manage claims will make them more accessible, enabling leaseholders to take control of their building and, therefore, their future.
Sir Liam Fox
The issue of rent charges also applies to freeholders; it is not just leaseholders who are the victims. An amendment to the Rentcharges Act 1977 would deal with the problem once and for all, so I encourage my hon. Friend to look at amendments to that Act when we bring forward legislation on this subject. If the Government do not want to bring forward such an amendment to the 1977 Act, I would be more than happy to table one.