Oral Answers to Questions
Debate between Matthew Pennycook and Joshua Reynolds(1 month ago)
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Matthew Pennycook
Let me explain, as simply as I can, what we want to do. As the White Paper makes clear, we will ban the sale of new leasehold flats so that commonhold becomes the default tenure, and we will ensure that the process of conversion is as simple as possible so that those leaseholders in existing leasehold blocks who want to make that change can do so as simply as possible. But we have to ensure that those who do not want to make that change have the powers, rights and protections in relation to their homes that will give them the immediate relief that my hon. Friend talks about.
Mr Joshua Reynolds (Maidenhead) (LD)
What steps are the Government taking to help those leaseholders with doubling ground rents who now feel trapped and unable to remortgage or sell their properties without meeting the massive costs of changing their leases, which, as I know from personal experience, can amount to five-figure sums?
Matthew Pennycook
I well recognise the problem. As the hon. Gentleman will probably know, historically ground rents were nominal sums—often peppercorn sums—but over the past 20 years we have seen a very different system develop. We have made a commitment, which we will honour, to take action on unregulated and unaffordable ground rents through legislation, and we will provide further details in due course.
Oral Answers to Questions
Debate between Matthew Pennycook and Joshua Reynolds(2 months, 2 weeks ago)
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Matthew Pennycook
We are very much aware that some managing agents provide a very poor quality of service to people like Tom and leaseholders across the country. Managing agents play a key role in the maintenance of multi-occupancy buildings and freehold estates, and their importance will only grow as we transition towards a commonhold future. As such, we have made it clear that we will strengthen the regulation of managing agents to drive up the standard of their service, and we are considering carefully the recommendations made in Lord Best’s 2019 report on regulating the property agent sector.
Mr Joshua Reynolds
Residents of a housing development in Maidenhead bought their properties 10 years ago on 99-year leases. Now they are coming to sell their flats, they are faced with a charge of £15,000 to £25,000 each to extend their lease so that the new owners can get a mortgage. What will the Minister do directly to help those residents?
Matthew Pennycook
In terms of lease extensions, there are provisions in the 2024 Act that will provide some assistance to the hon. Gentleman’s constituents. As with other parts of that Act, those provisions, in many cases, require a detailed programme of secondary legislation. In some specific circumstances, we cannot switch on the provisions until we have made the fixes through primary legislation that I referred to in answer to a previous question, but we are working at pace. I am more than happy to have a conversation with him about what we are doing in this area.