Leasehold and Freehold Reform Bill

Stephen Doughty Excerpts

2nd reading
Monday 11th December 2023 Commons Chamber

[Michael Gove]

My hon. Friend is absolutely right. The miners’ families and their descendants, whom he represents so well, were originally in homes that the NCB established to ensure that those in the pit villages he represents would have a proper landlord, providing stewardship, care and support, but as he rightly points out, the freehold ownership has subsequently been used not as an obligation towards the leaseholder but as a commodity to be traded. More and more freeholds are in the hands of entities, often based offshore, that regard them as a licence to extort from the leaseholder, rather than as an obligation to be discharged.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I have raised concerns on behalf of leaseholders in my constituency on many occasions in this House—particularly on the issue of service charges, which the Secretary of State referred to a moment ago, and the lack of transparency around them. I have seen again and again cases where certain information is not provided to leaseholders, where they are not sure that the moneys are being spent on what they have provided funding for, or where it is not clear whether, for example, there has been an adequate tendering process for works, insurance and so on. Can he explain what will be done on that, and whether it will fully extend to England and Wales? What co-operation has he had with the Welsh Government about those provisions?

[Michael Gove]

It is the case that this Bill covers England and Wales. Obviously the hon. Gentleman is aware that there are slightly different tribunals that operate in each jurisdiction, but it will precisely address the situation he mentioned: it will ensure there is transparency over service charges and, through the appropriate tribunal in each jurisdiction it will become easier on the part of the leaseholder to contest any unfairness.

--- Later in debate ---

[Angela Rayner]

I thank the Secretary of State, but he has just used the word “excessive”. If he wants to let me deal with this problem, I am happy to take over and show that I am not just about theatrical performances at the Dispatch Box; I will actually deal with it. He has been given 13 years on the Government Benches and has failed to do that. This Bill still fails to do that, so I would like to see where he will deal with this issue.

Regulation of freeholders has fallen behind that of landlords, leaving leaseholders stripped of the rights enjoyed even by tenants in the private rented sector. Perhaps the Secretary of State can tell us what measures exist that prevent the worst actors in the market from repeatedly ripping off leaseholders in one place after another.

[Stephen Doughty]

My right hon. Friend is making a strong speech, and she accurately describes the mental and financial anguish that has been felt by many leaseholders in my constituency. She is absolutely right. In my constituency, this issue predominantly affects those in flats, not in leasehold houses, and what they have gone through with service charges and fire and building safety remediation has taken a toll on many of them. They have found themselves in despair. Does she agree that much more needs to be done to deal with managing agents on the transparency of service fees? It was good to hear the Secretary of State mention FirstPort, and I hope to meet it soon, but does she agree that this is a much wider problem that needs to be addressed?

[Angela Rayner]

I absolutely agree. As I said before, and as I think the Secretary of State acknowledged, there is a lot of work to be done in Committee on these issues. Hopefully, we will be able to help the Secretary of State improve his own Bill, which needs significant improvements.