Leasehold and Commonhold Reform
Debate between Ruth George and Mary GlindonWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
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Mary Glindon
I am grateful for the hon. Gentleman’s straightforward statement.
It cannot be right that sales reps quote prices for the freehold but do not deliver, or that a freehold can be sold to a third party without telling residents. Nor can it be right that solicitors do not inform home buyers of the pitfalls, or that residents find themselves with charges and restrictions far beyond the original agreement.
The list goes on, but in the end, like my constituents, current home buyers are left worrying about what that means for reselling their houses. Although the Government’s announcement is welcome for future home buyers, I hope they take note of one of the country’s leading building societies, Nationwide—of which I must declare that I am a customer—which has changed its lending policy to protect people who buy new build leaseholds. It wants the Government to take action by preventing the Help to Buy equity loan being available for sites where new houses are being sold on a leasehold basis.
Ruth George (High Peak) (Lab)
Is my hon. Friend surprised to hear that Nationwide’s pension scheme has purchased the freeholds of an estate of properties in my constituency, which will be managed by a company that charges similar rates and fees to those mentioned by my neighbour, the hon. Member for Hazel Grove (Mr Wragg) —around £100—to get any sort of pet? Should a company take that sort of action with one hand while asking for action with the other?
Mary Glindon
I hope that Nationwide is duly embarrassed by what my hon. Friend has said.
Unscrupulous developers and agents are profiteering on the backs of thousands of ordinary people, who struggled and worked hard to buy their homes. The Government have to go beyond what they announced and act now to end what nearly amounts to extortion.