Leasehold and Freehold Reform Bill

Lyn Brown Excerpts

Report stage
Tuesday 27th February 2024 Commons Chamber

[Ms Lyn Brown (West Ham) (Lab)]

I rise to speak to new clause 3 and amendments 12 to 14. A huge number of new builds have been built within my constituency boundaries over the last months, the vast majority of which have been flatted. There have been numerous difficulties over the years, many of which I will not be able to cover today due to the time limit and your exhortation, Mr Deputy Speaker, to stay within seven to eight minutes; as the first woman to speak, I intend to do so.

I will start with Legacy Wharf in Stratford, where leaseholders have been stuck with a succession of management companies that fail them time after time. Under the former management company, shoddy—and probably overpriced—repairs were made by favoured companies at leaseholders’ expense over and over again, rather than any investment in long-term, high-quality maintenance. Residents were hugely suspicious about possible kickbacks from service firms to the management company and the use of companies under the management company’s ownership, rather than it seeking the best price and the best quality of service.

Thankfully, that management company has changed, but many problems remain. Residents have just been handed bills for 18 months of energy use all at once due to the management company’s mistakes. Service charges and insurance bills rocket year after year, with residents wondering what on earth has been done with their money: they have poor landscaping, broken lifts and inadequate fire doors; the security of communal areas is rubbish; residents have lost access to hot water and the boilers have not been serviced for as long as four years. Those are all serious concerns raised about just one building. Ultimately, when accountability is sought, there is absolutely no way to get a prompt response. When there is such as constant deficit of transparency, it inevitably looks like a way to cover up wrongdoing, mismanagement or incompetence.

I strongly welcome the provisions in this Bill on service charge transparency, and I add my support for the amendments tabled in the name of my hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook). Amendments 12 and 13 would surely provide additional support to my constituents, because they would mean that leaseholders would not have to pay service charges unless basic transparency and accountability were in place. Amendment 14 would enable a maximum cost to be set for the provision of information to leaseholders, preventing the abuse of such costs to effectively obstruct accountability—it ain’t on.

Leaseholders in every part of West Ham have faced massive difficulties getting accountability. I am reminded of events in the Hallsville Quarter development in Canning Town, where residents in several buildings had to leave their homes after a sewage ingress and power cuts. The two management companies responded in totally different ways: Grainger offered £50 a day in subsistence payments, while FirstPort initially offered just £15 a day and only raised it to £25 after enormous pressure. FirstPort had to be chased by me for multiple basic actions, and responded so poorly to residents whose lives had been turned upside down by problems that were absolutely not of their making.

Next, I would like to raise the continuing concerns of the residents of Chobham Manor about their estate charge, which has increased rapidly over recent years. The charge is supposed to help pay for the upkeep of the Queen Elizabeth Olympic Park, but many Chobham residents believe that it bears no relation at all to the amenities available to residents near the park. Despite my support, they have found it almost impossible to scrutinise the budgets they are paying for and to make sure that they ain’t paying through the nose for poor value for money. Chobham Manor residents frankly do not see what they are getting from the park in exchange for this charge, given that they are the only local residents who pay for it. I know that they will be grateful for an explanation of how they might benefit from the changes that the Bill will make.

I also want to mention, yet again, the continuing limbo of many residents of East Village in Stratford. Leaseholders there have lived under serious financial threat for well over four years now. The remediation needed to make their homes safe is still being held up because this Government’s previous legislation left the issue open to litigation. How can my constituents be reassured that this Bill goes further? The Secretary of State himself committed to using his planning powers to call in proposals submitted by irresponsible developers. I have to ask: will he make good on that promise and target those who are continually refusing to act on fire safety and leaving leaseholders on the hook?

In a final case from West Ham, diligent and determined leaseholders have successfully taken managing agents or freeholders to the tribunal for their dire failings. I am sorry to tell the House that these failings were across the board, including rat infestations, lack of insulation causing skyrocketing energy bills, no transparency on the huge service charges, building safety problems and a complete lack of accountability. Surely it should not have come to this.

We should not be depending on individual leaseholders to battle their way through obscure systems for their plight to get the attention it needs. MPs should not have to make dozens of detailed representations over and over again. It could not be clearer who has the power in these disputes, and in so many cases leaseholders are still paying the price for a system that is absolutely broken. Sadly, the legacy of years of failure to act creates understandable scepticism that change will come now, so I want to hear from the Minister today that he believes that the Bill will finally end this injustice.

[Andrew Rosindell (Romford) (Con)]

It is a pleasure to follow the hon. Member for West Ham (Ms Brown). We share a similar part of the world: Essex and the east of London. In Romford, just as in West Ham and the London boroughs to the east of the capital, we have seen a huge increase in the number of flats and high-rise blocks being built over the last 20 years. Havering is a town and country borough and we have not had many flats in the past, but suddenly we are seeing huge numbers of that kind of accommodation being built. This brings huge numbers of problems with it, including what we are debating today.

I thank the Minister for bringing this Bill forward. I hope that it will deal with many of the issues that colleagues across the House have raised today, because they are very real. I sense that there is consensus on both sides of the House that serious action needs to be taken, because this can really destroy people’s lives and ruin them; they have saved to buy a property and they have a leasehold, yet they are fleeced by sharks and managing agents who pile on the costs, and by armies of lawyers who make their lives miserable and threaten them with losing their property all together. This is not right for the people we all represent.

I am now dealing with these cases in Romford on a daily basis. The hon. Lady mentioned many of the problems in West Ham, and I have examples in the Steelway apartments in the centre of Romford. I visited those apartments only a few weeks ago and saw the problems that people there are facing. They are failing to get responses from the management agents and those responsible, they are paying money for no service, and they are being ripped off by management agents who are not doing the job they are paid to do. I went to Rubicon Court, a fairly new development built only a few years ago, and was shocked—absolutely flabbergasted —to see how badly the residents are being looked after. The service they are paying for has completely failed. I saw mould, rats, rubbish and CCTV cameras that do not work. That is not acceptable and, when the Bill is passed into law, I hope the Minister will ensure that it is effective. It is no good passing legislation unless it is effective and comes into force quickly.