Leaseholders and Property Management Companies

Lord Kennedy of Southwark Excerpts

Thursday 29th April 2021 Lords Chamber

Asked by

[Lord Kennedy of Southwark]

To ask Her Majesty’s Government what assessment they have made of the effectiveness of the law in respect of the responsibilities of (1) leaseholders, and (2) property management companies, for the upkeep of communal areas in blocks of flats.

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper and, in doing so, I want to say that I am so proud to be able to ask a Question on your last day, Lord Speaker. You have been an exceptional Lord Speaker; thank you so much.

[The Minister of State, Home Office and Ministry of Housing, Communities and Local Government (Lord Greenhalgh) (Con)]

The Government are committed to promoting fairness and transparency for homeowners and ensuring that leaseholders are protected from abuse and poor service. Following Law Commission reports on enfranchisement, right to manage and commonhold, the Government are taking forward a comprehensive programme of reform to end unfair practices in the leasehold market. We are also considering the recommendation from the independent working group on property agents, chaired by the noble Lord, Lord Best.

--- Later in debate ---

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, I refer the House to my relevant interests as set out in the register. Does the noble Lord accept that, in many cases, leaseholders are trapped, paying expensive fees to management companies for the care and upkeep of communal areas or the property that they live in, and that the provisions that enable fees to be challenged and management companies to be replaced are not fit for purpose and need to be radically updated to place real control and choice in the hands of the leaseholders?

[Lord Greenhalgh (Con)]

My Lords, we believe very strongly that any fees and charges should be justifiable, transparent and communicated effectively and that there should be a clear route to challenge or address things if they go wrong. That is why we commissioned the noble Lord, Lord Best, to do his report.