Oral Answers to Questions

Liz Twist Excerpts

Monday 5th November 2018 Commons Chamber

[Liz McInnes (Heywood and Middleton) (Lab)]

1. What recent steps he has taken to protect existing leaseholders from high leasehold charges.

[Liz Twist (Blaydon) (Lab)]

4. What recent steps he has taken to protect existing leaseholders from high leasehold charges.

[The Secretary of State for Housing, Communities and Local Government (James Brokenshire)]

Before I answer these questions, I am sure that the whole House will wish to join me in offering our condolences to the family and friends of Sir Jeremy Heywood, who passed away at the weekend. He demonstrated all that is precious in our civil service through the way in which he supported Governments of all colours, and the manner in which he supported four Prime Ministers. He showed leadership, real focus and ingenuity in dealing with challenging issues, as well as calmness and a real sense of humour. I know that he will be missed by everyone on both sides of the House.

Unfair leasehold practices have no place in a modern housing market, and neither do excessive ground rents that exploit consumers. I will be making clear to developers at a roundtable meeting later this week the need for the industry to provide greater support to existing leaseholders.

[James Brokenshire]

I am conscious of some of the bad practices in the leasehold market, which is why I will be meeting the industry later this week to underline the need for redress and for solutions to be offered to people who have in some cases been mis-sold. I certainly take this seriously. I have also written to the Competition and Markets Authority and to the Solicitors Regulatory Authority, in the knowledge that there are serious questions about some of the practices involved, in order to ensure that we are taking action on a number of fronts in response to the challenges that the hon. Lady rightly highlights.

[Liz Twist]

Three weeks ago, members of the Housing, Communities and Local Government Committee held a roundtable for leaseholders at the start of our inquiry. They told us about the problem of escalating ground rents that trap them in homes that they can no longer sell. They made it clear that they wanted existing leaseholds to be ended; does the Secretary of State agree with them?

[James Brokenshire]

We are working with the Law Commission around greater enfranchisement in order to bring leaseholds to an end. I am also conscious that at least one provider in the market has offered some means of redress and of dealing with some of the issues, but the point is that we need to go further, and that is what I shall be challenging representatives of the industry on when I meet them later this week.