Leasehold Reform (Ground Rent) Bill [ Lords ] (Third sitting)

Lilian Greenwood Excerpts

Committee stage
Thursday 9th December 2021 Public Bill Committees

[Eddie Hughes]

I thank the hon. Gentleman for his intervention. It seems perceptive, given that the paragraph that I was about to move on to says: hon. Members will know that further leasehold reform will follow later in the Parliament, so the efficacy of an impact assessment of this kind, during a period of wider reform, would be questionable. It is difficult to carry out an impact assessment when many moving parts are changing simultaneously; this is not a laboratory experiment in which we can control just one element. As the hon. Gentleman is a member of the Select Committee on Levelling Up, Housing and Communities, I can say that I look forward to working with him in the future. Should any concerns arise, my door is always open.

[Lilian Greenwood (Nottingham South) (Lab)]

I listened carefully to what the Minister said about the definition of rent in the legislation, and the way that it could be used to cover other ways in which some freeholders may act. How confident is he that leaseholders will be aware of that provision? If freeholders seek to increase other costs and charges, will leaseholders be sufficiently aware that they can exercise the rights set out in this Bill?

[Eddie Hughes]

I thank the hon. Lady for that intervention. There are two sides to that story. The fact that this legislation is being enacted, and the attention that will be drawn to that, will hopefully inform a good number of leaseholders. Also, the possible financial penalty—up to £30,000—should act as a significant deterrent for the freeholders, who are much more likely to be well informed and will hopefully be severely deterred by that. As the description of rent is so wide-ranging—it includes anything in the nature of rent—they will well understand that, should they be challenged at tribunal, they would likely be found out.

Given the two sides of that equation, there is good reason for us to be confident that nobody will try to introduce rents through the back door. On that note, I once again ask the hon. Member for Weaver Vale to withdraw the new clause.