Leaseholders

Lord McKenzie of Luton Excerpts

Monday 10th November 2014 Lords Chamber

[Lord Ahmad of Wimbledon]

My Lords, first, I draw the attention of the House to my entry in the Lords register as a leaseholder and pay tribute to my noble friend’s consistent efforts in ensuring that the subject of leasehold remains on the Government’s agenda. In terms of the ombudsman, the chamber of the First-tier Tribunal stays, will continue to determine a wide range of residential leasehold disputes and will not be affected by the new requirement for managing agents to belong to redress schemes. For example, leaseholders and freeholders will still be able to ask the tribunal to decide whether a service charge demand is reasonable. Where the lease requires the freeholder to recover administration charges, the tribunal will still be able to issue orders to redress this.

[Lord McKenzie of Luton (Lab)]

My Lords, I draw attention to my entry in the register of interests. As well as the redress and complaints schemes arising under the 2013 Act, the Minister will be familiar with the EU alternative dispute resolution directive. The Government have 24 months after the directive enters into force to transpose it into national legislation. That will be in mid-2015, so the clock is ticking. Can the Minister confirm the Government’s continued support for that measure and say what progress has been made to date? In particular, can he say which pieces of domestic legislation have been identified for the transposition?

[Lord Ahmad of Wimbledon]

The noble Lord raises the issue of reform of leasehold legislation. The Government are aware of a number of concerns in the leasehold sector and have welcomed suggestions of how resolutions on leasehold can be improved, but at the moment they are not persuaded of the need for wholesale reform. The Government want to ensure that all leaseholders have appropriate avenues for resolving disputes. I will write to the noble Lord on the specific issue of the EU directive.