Oral Answers to Questions

Lucy Powell Excerpts

Monday 22nd July 2019 Commons Chamber

[James Brokenshire]

I absolutely do. Unfair practices in the leasehold market have no place in modern housing, and neither do, for example, excessive ground rents that exploit consumers who get nothing in return. I called on the Competition and Markets Authority to look into this issue, and I am pleased it has now responded, also reflecting the calls from the Housing, Communities and Local Government Committee—I note that the Chair of the Committee, the hon. Member for Sheffield South East (Mr Betts), is in his place this afternoon.

It is right that we get to the bottom of this, that we challenge it and that we respond to these unfair practices firmly and effectively.

[Lucy Powell (Manchester Central) (Lab/Co-op)]

When will the Secretary of State introduce regulation to give leaseholders redress? The leasehold valuation tribunal is toothless and, frankly, worthless. Whether it comes to erroneous charges, mis-selling, dangerous cladding or expensive charges, leaseholders have nowhere to go. There needs to be urgent regulation.

[James Brokenshire]

I recognise the hon. Lady’s call, which is why we have taken a number of steps and will be bringing forward legislation to ban new leases on houses and to reduce future ground rents to zero monetary value. The Select Committee obviously highlighted the issue of existing leases as well, and we therefore now have a pledge in place and a number of people are coming forward to provide that direct response. I keep this issue under continual review as to what further steps are needed to change the situation for the future, as well as providing support for those already in this situation.