Leasehold and Freehold Reform Bill

Baroness Winterton of Doncaster Excerpts

2nd reading
Monday 11th December 2023 Commons Chamber

[Angela Rayner]

I thank my hon. Friend for that. Just as the Secretary of State earlier brought enthusiasm to the Dispatch Box on cladding and some issues we faced there, I hope that, in Committee, we can explore that and the effect on people who have been affected more and more by flooding.

The Secretary of State may not have the support of his Prime Minister, or his Back Benchers—[Interruption.] Many of them are not here at the moment—watch this space!

On the Labour Benches, we are united behind the decisive action that leaseholders need. If the Government cannot deliver it, we are ready to do so. A Labour Government will make commonhold the default tenure for all new properties as part of our commitment to fundamentally and comprehensively reform the leasehold system. We will also enact the Law Commission’s recommendations on enfranchisement, commonhold and the right to manage in full.

The fact is, unless and until leaseholders of houses and flats get a renewed commitment from Ministers on all the Law Commission’s recommendations, leaseholders will reasonably conclude that the Government have scaled down their ambition with the scaled-back Bill before us. Leaseholders deserve to know the real reason why they are being fobbed off with such limited steps. Unfortunately, the answer, as ever, lies in the chaos of this Government. The Secretary of State has talked a good game, but he might be the only functional cog in a dysfunctional Government—there is a compliment in there; I am trying. [Laughter.] I hope that he will face down his Prime Minister and his own Back Benchers and accept Labour’s proposals to make the Bill meet the challenges of the moment. But if he does not, a Labour Government will.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the Father of the House.

--- Later in debate ---

[Sir Peter Bottomley]

I agree with my hon. Friend and pay tribute to him for his work in this field. It is worth noting that building standards were set not by those who sign buildings off—the building control people—but by the Government or quasi-Government agencies, so the Government bear some responsibility as well, as I think they recognise.

In my thanks. I want to include Katherine O’Riordan, who has helped the secretariat of the all-party group and worked remarkably well. Given that my involvement as an active campaigner on this matter came through a constituency case, I pay tribute to my senior caseworker, Colette Hanson, who for many years—over a decade—has helped to support constituents facing awful problems, whether on this matter or others.

The Secretary of State referred to James Brokenshire, who carried forward many leasehold reforms. I also thank Sir Nigel Shadbolt and Sir Tim Berners-Lee and their Open Data Institute for providing help to LKP, the campaigning charity, in getting information that is publicly available and putting it together so that we could know the scale of the problem that we are facing. I pay tribute to the law commissioner Professor Nick Hopkins and his team for their 13th programme of law reform. I also pay tribute to Wendy Wilson at the House of Commons Library, who has since left, and Hannah Cromarty, who have produced briefings for Members of Parliament, which I commend to those outside this building. If they look at the House of Commons research and the LKP site, they will be as knowledgeable as me and will put across these points as effectively or more so.

Over and again I want to emphasise that people must respond to the Government’s very good consultation on ground rent. It is well-written and brings out the issues properly. I would be surprised if the dominant view were anything other than that ground rents should be reduced to peppercorns. At one stage, the Government suggested bringing it down to £10, but that still leaves most of the superstructure and the problems with leaseholders. It should be brought down to a peppercorn to eliminate those. When the consultation is analysed, I ask the Secretary of State to look with favour on reducing ground rents to zero. If I get any benefit, I will give it to a good cause, but I am not saying this for me.

I could go on at length, and at some stage I probably will. Having made my preliminary remarks, I want to say to the House that this is the opportunity, before a general election—whoever wins—to get legislation through that may be complicated in law but not in politics. Are we on the side of the people who have been at risk or exploited by interests who have owned freeholds? I have given my list of past shame, and I will not trouble the House with it now. If people have problems with their landlords or freeholders, they should tell their Member of Parliament so that they can bring it up in Committee or on Report.

I suggest that those who have used expensive lawyers to screw residential leaseholders use their money on something else. When a notable charity uses expensive lawyers to raise the cost of enfranchisement or lease extension by a third—an issue that should have come to Parliament rather than be done in the privacy of an upper property tribunal—we know that those running charities can get it wrong, too. We have left this too long. Let us now get on with it.

[Madam Deputy Speaker]

I call the Chair of the Levelling Up, Housing and Communities Committee.