Leasehold: Property Management Companies

Lord Hunt of Kings Heath Excerpts

Monday 19th February 2024 Lords Chamber

[Baroness Penn (Con)]

The Bill contains both a time limit and cost limit for the provision of information from freeholders to leaseholders when they are seeking to sell their properties. I do not know the exact circumstances of the case the noble and learned Baroness refers to, but action is being taken in this area.

[Lord Hunt of Kings Heath (Lab)]

My Lords, the Minister will be aware that legislation in 2000 and 2004 abolished leasehold in Scotland. Given noble Lords’ concerns about the current Bill, why on earth can we not be more radical and abolish leasehold in England and Wales?

[Baroness Penn (Con)]

Following previous Questions I looked at the example of Scotland, which we do seek to learn from, but the circumstances there are significantly different. At the time, there were only some 9,000 long leasehold properties in Scotland, compared with around 5 million leasehold properties in England and Wales. The majority of Scottish leases had ground rents of only £2.50 per year, whereas the average ground rent in England is £300 per year. It is more complicated to take reform forward in England, but the Government are committed to doing this. The Leasehold and Freehold Reform Bill will take important steps toward delivering commonhold as an alternative in future.