Oral Answers to Questions

Matthew Pennycook Excerpts

Monday 9th June 2025 Commons Chamber

[Ms Julie Minns (Carlisle) (Lab)]

24. What steps she plans to take to reform the leasehold system.

[The Minister for Housing and Planning (Matthew Pennycook)]

The Government continue to progress the implementation of the reforms to the leasehold system that are already in statute, while at the same time undertaking the work required to bring forward the wider set of reforms necessary to end the feudal leasehold system for good. We remain on track to deliver our ambitious leasehold and commonhold reform agenda, as set out in the written ministerial statement that I made on 21 November last year.

[Chris McDonald]

I thank the Minister for his positive engagement with me on the issue of a safe crossing at roads on the Wynyard and Queensgate estates in my constituency, but can I also bring to his attention the issue of service charges at the Willow Sage Court estate? Does he agree that our leasehold reforms must ensure fair service charges? I can send him further information about this case if he wishes.

[Matthew Pennycook]

I thank my hon. Friend for raising that point, and I would like further information on that case. The Government recognise the considerable financial strain that rising service charges place on leaseholders and tenants. Overcharging through service charges is completely unacceptable. We intend to consult in the very near future on the measures in the Leasehold and Freehold Reform Act 2024 designed to drive up the transparency of service charges to make them more easily challengeable if leaseholders consider them to be unreasonable.

[David Pinto-Duschinsky]

I congratulate the Government on the bold action they are taking to end the feudal leasehold system for good, which will ensure that future flat owners will never again be treated as second-class homeowners. But as the Minister is well aware, there are millions of existing leaseholders, including thousands in my constituency of Hendon. Will he update the House on the work the Department is doing, building on the path forward outlined in the commonhold White Paper, to strengthen protections for existing leaseholders, including on the conversion of leaseholds, ground rents and right to manage?

[Matthew Pennycook]

The Government remain committed to providing existing leaseholders with greater rights, powers and protections over their homes. We commenced the right-to-manage measures contained in the Leasehold and Freehold Reform Act 2024 on 3 March. We remain firmly committed to tackling unregulated and unaffordable ground rents, and we will deliver that in legislation. We will set out further detail on our proposed approach to enabling the conversion of existing leaseholds to commonhold in our draft leasehold and commonhold reform Bill later this year.

[Ms Minns]

Inflation-busting estate management fees for little or no service plague residents across the country, including those of the Brackenleigh, Greymoor Meadows and Denton Mill estates in my Carlisle constituency. What assurances can the Minister give my constituents and those of other hon. Members that the Government’s actions will curb those atrocious practices by estate management companies?

[Matthew Pennycook]

I thank my hon. Friend for raising that point; I recognise that many hon. Members across the House are affected by this issue. The Government remain committed to protecting residential freeholders on private and mixed tenure housing estates from unfair charges. We will consult this year on implementing the Leasehold and Freehold Reform Act’s new consumer protection provisions for the millions of homes subject to the charges affecting my hon. Friend’s constituents, and we will bring measures into force as quickly as possible thereafter.

[Mr Richard Holden (Basildon and Billericay) (Con)]

I am glad to see the Government starting to tackle some of these issues. Will the Minister assure me that people on freehold housing estates with covenant issues in places like Basildon and Billericay will also be included in any legislation? They often face service charge increases of tens of per cent every single year, and they need that same assurance being provided to leaseholders that the Government will think about that and take action.

[Matthew Pennycook]

I assure the right hon. Gentleman that the Government are thinking about the plight of residential freeholders alongside leaseholders. As I just said, we will consult this year on implementing the provisions in the 2024 Act, which provides those residential freeholders with new consumer protection provisions. They will have that immediate safety to come in, as we look at how we reduce the prevalence of such arrangements in the longer term.

[Josh Babarinde (Eastbourne) (LD)]

Leaseholders at South View on Upperton Road in Eastbourne face an extortionate bill of up to £40,000 each to repair unsafe balconies. The communication from Morgans and Stredder Pearce, who are both responsible for fixing that, has been woeful, and delays are leading to costs spiralling further. Will the Minister urge those organisations to improve the speed and responsiveness of their communications to protect South View’s leaseholders from further costs?

[Matthew Pennycook]

I thank the hon. Gentleman for raising that case. I recognise the problem that he alludes to. We want to bring in as soon as possible measures to standardise service charges in particular and make them more transparent. I wonder if he might write to me and the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for Nottingham North and Kimberley (Alex Norris), who is responsible for building safety, with details of that case so that we can look into it further.

[Robin Swann (South Antrim) (UUP)]

Developers are now creating facility and management companies, with new homeowners and tenants finding themselves as shareholders without their consent. Will the Minister look at that issue across the country to protect those homeowners?

[Matthew Pennycook]

If I have understood the hon. Gentleman correctly, he pointed to how a variety of arrangements can be put in place under freehold estates; we need to capture that variety across the country. That is one of the challenges in looking at what measures we might bring forward to reduce the prevalence of such arrangements, and we certainly intend to do that.

[Mr Speaker]

I call the shadow Minister.

[Matthew Pennycook]

I must say that the shadow Minister is developing a bit of a habit here; he seems to have conflated a number of separate issues. The Government have a very clear commitment to ending the feudal leasehold system within this Parliament. That requires a wider set of reforms than switching on the powers that are already on the statute book via the 2024 Act, though we are going to do that and are doing so at pace. If he cared to look at the written ministerial statement where I set all this out in a lot of detail, he would see that we remain on track with implementing our reform agenda.

[Will Stone (Swindon North) (Lab)]

3. If she will make an assessment of the adequacy of the funding model for the repair of council housing stock.

[The Minister for Housing and Planning (Matthew Pennycook)]

The Government recognise the strain placed on housing revenue accounts as a result of changes in rent policy, inflationary pressures and increased costs associated with investing in existing stock. The principle of self-financing remains the right one, but we are committed to working with councils to overcome the pressures on their HRAs so that they can invest in new and existing stock.

[Will Stone]

Will the Minister join me in praising Swindon borough council for its fantastic vision in investing in fixing our council stock—something the previous Conservative administration failed to do for 20 years?

[Matthew Pennycook]

I certainly will. My hon. Friend is a fantastic champion for council housing and highlights that Swindon borough council is putting significant investment into its housing stock over the next five years. The Government recognise that councils, like other registered providers, need support to build their capacity. That is why we consulted last year on a new five-year social housing rent settlement and have allowed councils to keep 100% of the receipts generated by right-to-buy sales. We will set out details of further investment in the forthcoming spending review.

[Tim Farron (Westmorland and Lonsdale) (LD)]

In Kendal on Friday afternoon, I came across a constituent in a Home Housing property who had been the victim of a house fire several months ago. Although they were still living in the property, it had not been fully restored or fixed. I am on the matter personally and dealing with the casework issues; if I share the details of this case with the Minister, will he take a personal interest in it, and does he agree that it is outrageous for someone to have to live in a fire-damaged property for five months without it being properly restored?

[Matthew Pennycook]

I thank the hon. Gentleman for raising that case. It does sound outrageous; if he writes to me, I will certainly look into the matter further.

[Matthew Patrick (Wirral West) (Lab)]

4. What steps she is taking to support high streets. 

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[Charlotte Cane (Ely and East Cambridgeshire) (LD)]

5. What steps she is taking to ensure that new homes meet the minimum standard of EPC C rating.

[The Minister for Housing and Planning (Matthew Pennycook)]

The December 2021 uplift to energy-efficiency standards means that most new build homes already achieve EPC ratings of A or B. As recently announced, the Government intend to introduce future standards in the autumn that will set more ambitious energy-efficiency and carbon emissions requirements for new homes to ensure that they are net zero-ready.

[Charlotte Cane]

As well as energy, water is an important utility. In Ely and East Cambridgeshire, we suffer drought and floods. What is the Minister doing to encourage new builds to have proper rainwater harvesting and dual piping, so that we can use rainwater to flush our toilets and for other non-drinking water uses?

[Matthew Pennycook]

We are looking at how we might make household water use more efficient, as well as a range of other interventions in my hon. Friend’s part of the country to ensure that we make the best use of water and that the necessary infrastructure is put in place to accommodate housing growth.

[Mr Jonathan Brash (Hartlepool) (Lab)]

In Hartlepool, 24,000 existing homes have an energy performance certificate rating of D or below. That means too many homes are too cold and have bills that are too high. What can the Minister do to accelerate the improvement of those homes to ensure warm homes for Hartlepool constituents?

[Matthew Pennycook]

My hon. Friend tempts me into the responsibilities of another Department, but I will get the relevant Minister from the Department for Energy Security and Net Zero to write to him to set out what measures are being put in place as part of the warm homes plan.

[Graham Stuart (Beverley and Holderness) (Con)]

In 2010, just 12% of homes had an EPC C rating or above, so those homes were too cold and had bills that were too high. It was 60% by 2024 when we left power. Will the Minister share with the House the ambition and give us a number for the percentage of homes that we should expect to have that basic EPC C rating by the end of this term, which I hope will be the only one the Minister has, so he should make a difference while he can? [Laughter.]

[The Secretary of State for Housing, Communities and Local Government (Angela Rayner)]

That’s a bit harsh.

[Matthew Pennycook]

The right hon. Gentleman is certainly not charitable. As I made clear, I recognise the December 2021 uplift in energy efficiency standards means that most new builds that come through achieve an EPC rating of A or B. Off the top of my head, though I stand to be corrected, I think about 84% of new homes meet those standards. But as I said, we have announced that we want to introduce future standards this autumn, which will drive even more ambitious energy efficiency and carbon emission requirements for new homes.

[Alistair Strathern (Hitchin) (Lab)]

Having long campaigned on the need for much tougher regulations for solar panels on new homes, I was delighted to hear the Government announce last Friday that we will bring forward requirements to do exactly that. That will not just boost EPC ratings, but save new homeowners thousands of pounds in bills, all while reducing energy usage. How can we ensure that we move at speed so that as many of the new homes we build over the course of this Parliament as possible will benefit from our ambition here?

[Matthew Pennycook]

My hon. Friend has been a champion of ensuring that we get more solar panels on to new build homes and other types of building. As I said in answer to a previous question, we want to move at pace to put future standards in place. We are looking at this autumn, and that will ensure more of the new homes coming forward meet those more ambitious standards. It will mean, as he is aware, that the vast majority of new build homes have solar panels on them as standard.

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[Alison Hume (Scarborough and Whitby) (Lab)]

8. Whether her Department is taking steps with independent training colleges to train construction sector specialist apprentices to support house building targets.

[The Minister for Housing and Planning (Matthew Pennycook)]

The Government recognise the need to expand and upskill the construction workforce to meet our ambitious plan-for-change milestone of delivering 1.5 million safe and decent homes in this Parliament. We are working closely with industry to provide high-quality house building training opportunities, and we welcome the £140 million industry investment late last year in 32 pioneering new home building skills hubs, which will create up to 5,000 more construction apprenticeships per year.

[Alison Hume]

The construction skills village in Scarborough is an innovative real-world training environment for the specialist trades that we desperately need to build homes. Does the Minister acknowledge the importance of independent training providers in our plans to build 1.5 million new homes, and will he meet me to discuss how we can ensure that ITPs, which deliver the specialist skills that the construction industry is asking for, are included in our plans to train 60,000 new construction workers?

[Matthew Pennycook]

The Government are investing significant amounts of money to train more construction workers. We appreciate fully the importance of independent training providers in training the workforce needed to deliver more homes across England. I suggest that my hon. Friend and I find time to meet Baroness Smith from the Department for Education to discuss matters relating to ITPs, including the CSV in my hon. Friend’s constituency.

[Ellie Chowns (North Herefordshire) (Green)]

I welcome the Minister’s commitment to supporting skills training in the construction sector. Does he agree that skills training needs to be particularly focused on the sustainable skills, and will he join me in congratulating the low-carbon technology training centre in my constituency, as well as the new university in Hereford—its first cohort of engineers graduated just last month? Does he welcome such initiatives, and will the Government put more funding into supporting the construction and engineering skills that our building sector will need?

[Matthew Pennycook]

I hope that the hon. Lady recognises that we are putting significant amounts of investment into construction skills. In the spring statement, the Government announced a £600 million investment that will recruit an additional 60,000 construction workers by 2029. I am more than happy to recognise the contributions made by initiatives of the sort that she mentions in her constituency. We absolutely need skills across the built environment to meet our targets.

[Rebecca Long Bailey (Salford) (Lab)]

9. If she will take steps through the spending review to increase social housing supply.

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[Ben Goldsborough (South Norfolk) (Lab)]

T2. We are very good at growing things in South Norfolk, including food, businesses and thriving communities. However, if we want our young people to share in that success, we need to plant a new town in my constituency. Will the Minister meet me to discuss how we will achieve that?

[The Minister for Housing and Planning (Matthew Pennycook)]

I do not blame my hon. Friend for trying, but for good reason we established an independent expert advisory panel—the new towns taskforce—to make recommendations to Ministers on the location and delivery of new towns. The taskforce will submit its final report to Ministers in the coming months.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

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[Claire Young (Thornbury and Yate) (LD)]

T3. In the light of some worrying small-site applications on previously undeveloped green-belt land in my constituency, and of concerns from the Campaign to Protect Rural England, will the Minister undertake to monitor and assess the initial impact of the new grey-belt provisions and look at refining the wording, to avoid salami-slicing of the green belt?

[Matthew Pennycook]

No. We are confident that the protections in place for the green belt—the tests that have to be met for grey-belt release—are robust. It is ultimately for local planning authorities to conduct green-belt reviews and to bring forward those sites as part of local plans.

[Helen Hayes (Dulwich and West Norwood) (Lab)]

T8. Across London, 90,000 children are living in temporary accommodation, denied the essentials of a stable home, which has terrible consequences for their physical and mental health and education. This is a scandalous inheritance from the previous Conservative Government. When does the Secretary of State believe that we will begin to see those numbers drop substantially?

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[Rebecca Paul (Reigate) (Con)]

T5. It has been estimated, and reported, that billions-worth of unspent community infrastructure levy may be available at local authority level for investment in critical infrastructure. Will the Minister ensure that the money is invested in roads and drainage, so it can deliver the improvements that our residents deserve?

[Matthew Pennycook]

There are legitimate reasons why developer contributions can be held by local authorities—for example, so that they can complete phased development, or bring forward other sites over a period of time—but we are aware that certain local authorities hold, in some cases, significant sums, and we are giving the matter some attention.

[Matt Turmaine (Watford) (Lab)]

The Shared Health Foundation recently published a vital report on children living in temporary accommodation, which revealed the scandalous fact that all too often, children living in such accommodation are not safe, secure or able to thrive. Does the Minister agree that it falls to this Labour Government to fix that wrong, on which there has been silence for too long?

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[Emma Foody (Cramlington and Killingworth) (Lab/Co-op)]

People have lived in Earsdon View in my constituency for more than 15 years, but the estate remains unadopted due to an ongoing issue between the landowner, Northumberland Estates, and the developer, Bellway, involving the securing of sewer adoption. I continue to press all parties to resolve the problem, but how can we ensure that people are not left in this situation for decades, often paying management fees on top of council tax, and that developers deliver?

[Matthew Pennycook]

My hon. Friend has been a doughty champion of leaseholders and residential freeholders in her constituency. We must start to provide the consumer protections that are already on the statute book, but as I have made clear, we are determined to end the injustice of fleecehold entirely, and will consult later this year on legislative and policy options to reduce the prevalence of private estate management arrangements.

[Jack Rankin (Windsor) (Con)]

I broadly support unitarisation on a strategic scale, but I am concerned about how historic debts will be treated in Surrey, especially those of Woking and Spelthorne councils. How will those debts be handled as our councils come together, and will the Minister assure my constituents in Virginia Water and Englefield Green, in the well-run borough of Runnymede, that they will not foot the bill for this as part of the reorganisation?

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[Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)]

I welcome the enhanced protections for tenants in the Renters’ Rights Bill, but data from The Londoner shows that for London tenants, there is only one enforcement officer per 7,500 private rented homes. Given the new enforcement burdens that the Bill places on councils, will the Minister please ensure that they have the resources to protect private tenants?

[Matthew Pennycook]

My hon. Friend will know that in the Bill we have taken a “polluter pays” approach. Local authorities will be able to levy fines on landlords to raise revenue, but—my hon. Friend can check the transcript on this point—we did commit ourselves to “new burdens” funding as appropriate.

[Simon Hoare (North Dorset) (Con)]

Given the environmental importance and scarcity of chalk streams, may I urge the Deputy Prime Minister and her team to support amendments to this afternoon’s legislation that would protect those streams? They are vital, and they need as much protection as we can give them.

[Matthew Pennycook]

As the hon. Gentleman will know, chalk streams already have protections in national planning policy, but I am sure that we will continue this discussion on Report of the Planning and Infrastructure Bill later today.

[Anneliese Midgley (Knowsley) (Lab)]

Will the Minister meet me and residents of Beech and Willow Rise in Kirby, where a combination of failed leasehold law, previous corporate entities and inadequate regulation risks leaving residents facing unaffordable costs and eviction?

[Matthew Pennycook]

I am always happy to meet my hon. Friend. I know she has had constructive conversations with the Minister with responsibility for building safety, my hon. Friend the Member for Nottingham North and Kimberley (Alex Norris), but I am happy to meet her.

[Jess Brown-Fuller (Chichester) (LD)]

Three hundred social homes are at risk in my Chichester constituency, despite having outline planning permission, because developers are rejecting offers from registered providers. Will the Minister commit to action to stop developers evading their obligation, and will he meet me to help me protect the delivery of these social homes?

[Matthew Pennycook]

We recognise the challenges around uncontracted section 106 units. A complex array of factors has led us to this point, but we are giving serious consideration to how we unblock the problem, and how we get those section 106 homes allocated and people living in them.