Oral Answers to Questions

Mark Logan Excerpts

Monday 19th July 2021 Commons Chamber

[Luke Hall]

I know that the hon. Lady is hugely passionate about this project in her constituency and has raised it with the Prime Minister directly. We certainly welcome her enthusiasm for the fund and the bid, which is exactly why we are providing councils such as hers with the £125,000 of capacity funding that I have mentioned previously. I am sure she will appreciate that I cannot comment on the specific nature of the bid, but we are supporting projects throughout the country, through mechanisms such as the towns fund, to support positive health and wellbeing implications. I will keep the hon. Lady updated as we move through the process. We expect to announce the outcome of the competition in the autumn this year.

[Mark Logan (Bolton North East) (Con)]

What steps his Department is taking to help protect leaseholders from unfair practices.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Eddie Hughes)]

Unfair practices have no place in our housing market and the Government are committed to ending them. In January, we announced a package of reforms that will result in substantial savings to leaseholders, and we are currently legislating to restrict ground rents to zero for future leases. The legislation is currently with their lordships and will come to this House in the autumn.

We have asked the Competition and Markets Authority to investigate potential mis-selling in the leaseholder sector. In September last year, the CMA began enforcement action against a number of developers and investors. I was particularly pleased to hear that both Persimmon and Aviva have already agreed to amend their practices as a result.

[Mark Logan [V]]

This is my first time shooting the breeze with the Minister in his new role—I offer him big congratulations. Will he clarify whether the Building Safety Bill will protect leaseholders in cases in which the property developer has failed to complete its work diligently, even if the company in question becomes insolvent because of its own malpractice?

[Eddie Hughes]

It is a pleasure to shoot the breeze with my hon. Friend. It is fundamental that industry contributes for having compromised public safety, which is why the Building Safety Bill introduces a new levy on high-rise residential buildings. Clause 124 of the Bill also provides legal requirements for building owners to explore alternative ways to meet remediation costs and provide evidence. If that does not happen, leaseholders will be able to challenge costs in court. In addition, we have announced more than £5 billion towards remediation work on buildings of 18 metres and above and a generous finance scheme for remediation work on buildings of 11 to 18 metres.