Leasehold Reform (Ground Rent) Bill [Lords]

Peter Bottomley Excerpts

Report stage & 3rd reading
Monday 24th January 2022 Commons Chamber

[Eddie Hughes]

I think it is too early for me to be able to predict exactly what will be in the Bill, and what its reach and remit might be, but I am sure I will be open to conversations with the hon. Member to discuss his thoughts on what could go into it.

It would be remiss of me to not mention that in fact only two weeks ago we launched a public consultation to seek views on proposals to allow more leaseholders in mixed-use buildings to take control and ownership of their building. That consultation will play an important role in shaping the next stage of our reforms to create a fairer leasehold system in England and Wales.

I thank the Competition and Markets Authority for the vital role it is playing in improving the sector for existing leaseholders. The CMA has already helped thousands of leaseholders to gain access to justice since opening its investigation, and I welcome its dedication in the ongoing fight against abuse in the sector. Let me repeat that the CMA’s action against industry players serves as a warning to others, and we expect those who continue to permit such poor practices to heed the example set by the investigation.

[Sir Peter Bottomley (Worthing West) (Con)]

To save the Minister time, may I, on his behalf and that of the whole House, thank the Leasehold Knowledge Partnership, the campaigning charity, especially Sebastian O’Kelly and Martin Boyd, together with their compatriots in the campaigning groups without whom we would still be saying that there was a major problem that had not yet been recognised?

[Eddie Hughes]

I thank the Father of the House for saving me the trouble of having to offer those thanks.

I thank Welsh Ministers and their officials for their engagement on the relevant amendments, both here and in the other place. My thanks also go to the Local Government Association, National Trading Standards and the relevant tribunals, all of which have provided support with the progress of this legislation. I again thank all Members for their contributions. This legislation will make a real difference to thousands of future leaseholders across England and Wales, and I commend the Bill to the House.

--- Later in debate ---

[Sir Peter Bottomley (Worthing West) (Con)]

I thank the hon. Member for Weaver Vale (Mike Amesbury) for his kind words. It has been right and proper and a pleasure to work in collaboration with him and the hon. Member for Ellesmere Port and Neston (Justin Madders), as it was to work with Jim Fitzpatrick when he was co-chair of the all-party group on leasehold and commonhold reform.

It is 20 years since the House of Commons and the Government thought that we had brought some sense to the leasehold system. We failed and successive Governments did not pay attention to what had gone wrong, partly because the responsibility for the leasehold and commonhold sectors were split between Departments. The Ministry of Justice, as it was at some stages, did not have any resources and it did not collaborate with the Ministry of Housing, so effective action has been delayed.

The Minister has referred to the narrowness of the Bill. We have to accept that. I am glad that my hon. Friend the Member for Runnymede and Weybridge (Dr Spencer) raised the issue of park home residents, who have been treated even worse than some leaseholders. I hope that the Government will give some serious attention not just to the inflation rate that they are charged, but to some of the criminal and near-criminal and exploitative actions of many of the people who run those sites. It is completely appalling, and I direct investigative journalists to look at that matter.

On the question of leasehold itself, I welcome the progress made by the Bill. I am sorry that I got back in time to vote on new clause 1—I probably voted in the wrong way and I apologise for that. The sooner that we can deal with existing leaseholders and the cost to them of ground rents and of extending their leases the better. We must get to the stage where owning somebody else’s leasehold becomes a diminishing asset. The faster the freeholders sell the freehold to the leaseholders together and create, in effect, a commonhold the better. We are making progress. I am glad to have contributed in part, and I am glad that the Minister and his colleagues are taking the action that I wish had been taken many, many years ago.

[Justin Madders]

It is a pleasure, as always, to follow the Father of the House. As we have already mentioned this evening, we are now four years on from the promises that were made about reforming leasehold, and the Bill, as we have all accepted, is a step in the right direction. However, as we have all acknowledged as well, it is little comfort to those who are still trapped in homes that they cannot sell because of the onerous leases with which they have been left, and we must do something about that. I tried to get the Minister to give us a year when that might happen, but we could not get anything out of him. None the less, I can assure him and the House that we will keep pushing on the issue, because justice demands that it is resolved.

It is also worth commenting on the fact that one in three houses sold in the north-west in the past 10 years is leasehold. There has been much talk about levelling up. Who can doubt that a person’s home is the biggest investment they will make? So it is simply unacceptable for so many homes in my part of the world to have been built off the back of an exploitative and unjust business model. Surely, if levelling up is to mean anything, it should at the very least mean that people’s homes are owned on the same basis wherever they live in the country.

The ending of ground rents for new homes is a positive, but it will create a strange situation. There will be houses within a stone’s throw of one another that have a different form of ownership. That will just add more weight to the sense of injustice that existing leaseholders feel, which is why I am so keen for us to push on and deal with that issue.

As many Members have said, a lot more needs to be done. A whole range of issues have been mentioned tonight. We have, for example, barely touched on park homes. There are so many scandalous things going on there, and we really should be paying them more attention. For homeowners, we see the following: management fees, which are a rip-off; non-transparent service charges; the cost of enfranchisement; insurance scams; obscure penalty clauses; and other costs that appear everywhere we turn in a lease. They are all baked into the business models of those avaricious companies which, let us not forget, are still out there building houses.

I am a little concerned that the companies on which we rely to build the houses that we need are responsible for many of the injustices that we have discussed tonight. We need to keep a close eye on their practices in future. I still think that we need an inquiry into the whole industry. We have previously discussed some of the things that we touched on tonight, and the question of how close lawyers were to developers and whether they were acting in the best interests of their clients needs further examination. We need to look at the lenders and surveyors and what the developers were saying to people, often first-time buyers, who were misled about what they were buying. We need to make sure that the system is examined thoroughly so that there is no repeat of the scandal that we have seen over the past five years.

People who buy a home should have a right not to expect it to become an ongoing income stream for a third party. If we have that as our guiding principle we will not go far wrong, so let us crack on with legislating so that that can become a reality for everyone. As many Members have done, I want to acknowledge the fantastic work of the many campaigners who have been active in bringing this issue to the fore including, as we have heard, the Leasehold Knowledge Partnership, Martin Boyd, Sebastian O’Kelly, the late Louie Burns, the National Leasehold Campaign, Catherine Williams, Katie Kendrick, Jo Darbyshire and many others, with the Father of the House being one of the biggest cheerleaders. There are many people who have contributed to bringing the issue to the attention of the House, but there is much more that we need to do. It feels at times as if progress is painfully slow, but that should not dim our determination finally to consign leasehold to the dustbin.

[Sir Peter Bottomley]

We know about some of the abuses, because people who were working in firms that I would respectfully declare to be dodgy provided information anonymously. Will the hon. Gentleman join me in saying to Richard Davidoff, who might take defamation action against people who have blown the whistle on practices that we would condemn, that the courts should not be used to stop people blowing the whistle on practices that are questionable, if not completely wrong?

[Justin Madders]

As always, I find myself in agreement with the Father of the House. Whistleblowers should be able to speak up freely. With my other hat on, it is probably time that we had a review of whistleblowing legislation to make sure that people are adequately protected. We owe a debt to people who are prepared to speak up and put their head above the parapet, possibly at great personal expense. The scams have to be stopped, and people need to be supported.

On that note, we have made a little progress tonight, and I want to keep making progress. I am sure that the majority of the House will want leasehold finally to enter the history books, rather than being something that we deal with on a day-to-day basis.