Residential Estate Management Companies

Sadik Al-Hassan Excerpts

Tuesday 22nd April 2025 Westminster Hall

[Sadik Al-Hassan (North Somerset) (Lab)]

It is a pleasure to serve under your chairship, Mr Stuart. I declare an interest in that I own a flat in Liverpool that is currently managed by FirstPort, and I have personally been affected by many of the issues that my constituents have written to me about in recent months. Like many in leasehold flats in Portishead in my constituency, I purchased my first ever dream home off-plan. I am sad to say that that dream has become a nightmare, as it has for so many.

Since coming into office nine months ago, I have been in contact with hundreds of constituents throughout North Somerset who have seen the realisation of long-held aspirations of home ownership turn into a slog to defend their rights against encroaching mega-corporations intent on squeezing every penny possible from ordinary, hard-working people. From those conversations, it has become clear to me that estate management companies are rip-offs; they utilise every legal means at their disposal to squeeze leaseholders out of every last penny they can. By using a complex web of separate legal entities, they can facilitate an intricate trickery, designed to pull the wool over honest homeowners’ eyes to ruin their quiet enjoyment.

To give credit where it is due, the Building Safety Act 2022 was most certainly a step in the right direction, making it clear when and where financial obligations would be laid at the door of freeholders. I am sad to report that in the years since, we have seen freeholders, aided by estate management companies, do everything in their power to delay and resist. It is nothing short of scandalous. I look forward to the inevitable ITV drama that we will one day see, and which will finally prompt sufficient action to bring this sad chapter in our nation’s history to an end.

I could easily stand here and recount for hours the innumerable injustices suffered from estate management companies by constituents throughout North Somerset, but I recognise that my time is limited, so I wish to focus on the pair of buildings only a few minutes’ walk from my constituency office in Portishead, Ninety4 on the Estuary and 110 @ The Quay. After years of dragging their heels, it finally took the residents’ plight reaching regional news to shame the freeholder and developer into agreeing to shoulder the cost. However, since then residents have been subject to an unending stream of additional costs and excessive service fee increases, seemingly as the aforementioned entities try to recoup losses.

With another delay always around the corner, understandably so many of our constituents feel that the system is no longer capable of serving their interests and needs to end. Leaseholders in these buildings feel stuck in this battle, which has been raging for years now, and have felt powerless and trapped, unable to find buyers despite offering significantly under market value. Similarly, potential buyers have struggled to obtain mortgages due to uncertainty over cladding issues, with a deep sense descending on residents of the twin buildings that they may never truly escape the nightmare that they have found themselves in.

Hundreds of constituents, not just in those buildings but in dozens of similar situations across North Somerset, have asked me for help in finally bringing this shameful situation to an end. That is why I am thankful to the hon. Member for South Devon (Caroline Voaden) for securing this important debate. I look forward to seeing what remedies the Minister has in store in the upcoming leasehold and commonhold reform Bill, which I understand will be introduced to Parliament later this year.