Oral Answers to Questions

Steve Reed Excerpts

Monday 23rd February 2026 Commons Chamber

[Mr Lee Dillon (Newbury) (LD)]

22. What steps he is taking to support leaseholders.

[The Secretary of State for Housing, Communities and Local Government (Steve Reed)]

On 27 January, we published the draft Commonhold and Leasehold Reform Bill, marking the beginning of the end for the feudal leasehold system and supporting millions of families with the cost of living. We are reinvigorating commonhold and capping ground rent. We are analysing the responses to our wide-ranging consultation to drive up transparency of service charges and make it easier for leaseholders to challenge unreasonable costs. We will implement these measures as soon as possible.

[Mohammad Yasin]

With service charge inflation rising by 50% and leaseholders, freeholders and tenants even facing 80% increases, this is a growing scandal. Too many of my constituents are trapped under charges they cannot afford, paying for defects caused by poor construction and stuck with properties they cannot sell. Will the Secretary of State strengthen the draft Commonhold and Leasehold Reform Bill to require fully itemised transparency, to penalise landlords who refuse disclosure and to create a faster, cheaper way to challenge excessive charges without a tribunal?

[Steve Reed]

The Government recognise the considerable financial strain that rising service charges place on leaseholders and tenants. On 4 July last year, the Government published a consultation on strengthening leaseholder protections over charges and services, which included proposals to increase transparency of service charges and to scrap the presumption that leaseholders pay their landlord’s legal costs, thereby removing a significant barrier to challenging poor practice. The consultation closed on 26 September; we are analysing the responses and will publish our response shortly.

[Mary Glindon]

Leaseholders in Newcastle upon Tyne East and Wallsend contact me regularly about extortionate service charges, saying that tribunals are slow and stressful and that, ultimately, they feel powerless. The Minister for Housing and Planning has previously set out that retaining variable charges is important, so that necessary funds can be raised for legitimate purposes. Is the Secretary of State confident that, without directly limiting their rate of increase, the Government’s reforms will address the issue of unreasonable charges making properties unsellable?

[Steve Reed]

We are determined to take action to address unfair and unjustified charges, and we are committed to implementing the measures in the Leasehold and Freehold Reform Act 2024 as quickly as possible.

[Sadik Al-Hassan]

I commend the Government and my right hon. Friend’s reforms to the leasehold sector, particularly capping ground rents, which will make a real difference to leaseholders across North Somerset. I have been contacted by numerous constituents in Portishead and across my constituency living in leasehold properties managed by FirstPort. They report persistent failures, poor communication, and opaque and unjustified service charges. Will the Secretary of State confirm that the Government’s leasehold reforms will go further by introducing robust, enforceable regulation of service charges and professionalising property management companies such as FirstPort so that they can genuinely be held accountable for poor management practices?

[Steve Reed]

I recognise, of course, the situation my hon. Friend is describing and how unacceptable it is. The Government are committed to ensuring that those living in leasehold properties are protected from abuse and poor service at the hands of unscrupulous managing agents. On 4 July last year, we consulted on the introduction of mandatory qualifications for managing agents, and we are analysing responses right now. We are clear that this consultation is not the final step in the regulation of agents, and we will set out our full position shortly.

[Apsana Begum]

I have been working with leasehold groups in my constituency such as the aptly named Friends in High Places group. They inform me that the combined costs of the Building Safety Regulator’s fees, the purchasing of reports and various surveys, and the remediation works needed are giving rise to potentially enormous bills, which could lead to leaseholders becoming bankrupt and homeless, as the bills are not picked up by developers or freeholders for older buildings, or resident management companies. Will the Minister outline how upcoming legislation will clarify what counts as proportionate and/or reasonable costs that fall on to leaseholders in relation to the BSR’s work?

[Steve Reed]

I commend the work of the Friends in High Places group, which my hon. Friend has been working with. We are now seeing improvements in the performance of the Building Safety Regulator, but she is right that unfair costs should not fall on leaseholders. If it would be helpful, I will happily arrange a meeting between her and the relevant Minister.

[Paul Waugh]

Far too many homeowners in Rochdale are subject to fleecehold, whereby they are fleeced for estate management company fees in return for little or no service or accountability. The Government are taking action to prevent future homeowners from falling into that trap, but will the Secretary of State set out how he plans to help current homeowners to avoid this rip-off charge?

[Steve Reed]

I know the Housing Minister is looking forward to meeting my hon. Friend and his constituents next week. HorNets have been strong and vocal campaigners for homeowners’ rights, and I welcome their engagement. The Government are committed to ending the injustice of fleecehold. Leaseholders should not be subject to the kind of legalised extortion that they have experienced in recent years, and the Government remain committed to bringing these practices to an end.

[Mr Dillon]

I thank the Secretary of State for his response and welcome the support being given to leaseholders; however, many of the problems they face could be addressed through stronger regulation of managing agents. Persistent failings by companies such as FirstPort continue to fill my inbox. In Newbury, we have a block of flats where a lift has been out of order for two years, and one constituent told me that, because it was broken, her son had to carry her husband down the stairs when he moved into a care home. No family should ever have to face that. Will the Secretary of State outline what steps the Government have taken to strengthen the regulation of managing agents and ensure that they are properly accountable to residents, who pay for their services?

[Steve Reed]

I recognise what the hon. Member says about FirstPort because Members across the whole House have been raising similar concerns for a very long time. He will be aware that we launched a consultation last summer that will include looking at how we can better and more tightly regulate managing agents so that leaseholders are not subject to the kind of abuses that he describes.

[Manuela Perteghella (Stratford-on-Avon) (LD)]

Many of my constituents live on new build estates where the roads and open spaces have never been adopted. Years after moving in, they are still paying private management charges on top of their council tax for basic infrastructure that homeowners should expect the council to maintain. Does the Secretary of State recognise that this gap between planning approval and adoption is fuelling the fleecehold scandal, and will the Government act to ensure that developers complete roads to adoptable standards and local authorities are supported to adopt them promptly?

[Steve Reed]

The hon. Member is right to point out the abuses of fleecehold and how disturbing and worrying this can be for the people living on these estates. The Government launched two consultations in December precisely so that we can properly understand and take action to prevent the kind of abuses that she describes.

[Alex Easton (North Down) (Ind)]

Have the Government made an assessment of the potential merits of introducing a mandatory standard service charge statement for leaseholders to ensure a clearer breakdown of costs and improve transparency in the administration of service charges?

[Steve Reed]

I recognise the situation that the hon. Member describes. We have launched the consultations to cover the circumstances he describes, precisely so that we can end that kind of practice.

[Wera Hobhouse (Bath) (LD)]

These sharp practices are not down to just one management company—a lot of companies are at it. A leaseholder constituent wrote to me to say he feels “abandoned and angry”. His property is leaking, but the freeholder is not interested in helping, and his ground rent will double in 2030. Can the Secretary of State reassure me that my leaseholder constituent will be protected from these unreasonable charges in the future?

[Steve Reed]

I hope the hon. Lady’s constituent will be pleased to learn that the reforms we have announced as part of the draft Commonhold and Leasehold Reform Bill, launched recently by the Minister for Housing and Planning, will include capping ground rents so that that kind of abuse cannot happen in future.

[Shockat Adam (Leicester South) (Ind)]

I refer Members to my entry on the Register of Members’ Financial Interests. An acute increase in service charges of 78% has knocked the residents of Phoenix House in my constituency. The council is the freeholder, and it has overseen a complex arrangement with a private head leaseholder and various commercial managing agents below it. Due to the complexities of these arrangements, the residents have no idea where this 78% increase has come from. Will the Minister commit to introducing a duty of candour so that leaseholders know exactly what they are paying for, and will he further consider a threshold for acute service charge increases?

[Steve Reed]

The hon. Gentleman will have been able to make those points through the consultation, which we launched in order to get to a position where we can simplify the system so that leaseholders know what charges they are being asked to pay and what services they are receiving for them, and to give them greater powers to challenge unfair practices of the kind he has just described.

[Mr Speaker]

I call the shadow Minister.

[David Simmonds (Ruislip, Northwood and Pinner) (Con)]

According to the Government’s own statistics, 84% of respondents to their consultation said they felt that the system for challenging unfair charges for managing agents and other lease arrangements was not fit for purpose. The Conservatives agree—that is why we legislated to address this in the Leasehold and Freehold Reform Act 2024. I appreciate that the Secretary of State has had a few distractions recently, but he has told the House that he is committed to addressing this matter. Can he tell all our leaseholder constituents by when the Government will enact that legislation, which we passed with his party’s support?

[Steve Reed]

Of course, nothing is going to distract me from focusing on the needs of leaseholders, and we remain fully committed to ensuring that the provisions and powers outlined in the Leasehold and Freehold Reform Act are brought into force as soon as possible. It is important for us to go through the technical detail that is covered by the consultation, but we will bring forward those proposals in due course and as quickly as possible.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Gideon Amos (Taunton and Wellington) (LD)]

Many of the 5 million leaseholders were looking forward to being freed from the feudal leasehold system until they read the draft Bill, which left many disappointed. There is no restriction on the development value that leaseholders are going to be charged and no broadening of the mixed-use blocks that will be eligible for enfranchisement, while leaseholders will continue to pay the legal fees of landlords, and service charges are still not being capped. Given the commitments in the Labour manifesto and the King’s Speech to enact these recommendations from the Law Commission, should the Government not be more courageous, take on the landlords and give leaseholders proper rights to enfranchise, as they promised?

[Steve Reed]

I agree with the sentiment of the hon. Gentleman’s question, but unfortunately he has a number of his facts wrong; if he would like to put those details in a letter, I would be happy to respond and bring him up to speed. We are, for instance, seeking to end the practice of leaseholders being required to pay their landlords’ legal fees. This is the biggest reform of leasehold in a thousand years. I hope that the hon. Gentleman writes to me and, after I respond, that he will be able to give the reforms his full support.

[Gideon Amos]

The Law Commission reforms are being enacted and there is no date yet for a Bill to be brought forward. I hope that the Secretary of State will provide one.

Moving on to leaseholders who are still living with unsafe cladding and building defects, hundreds of thousands of people in buildings under 11 metres tall are living with cladding that is recognised as highly flammable, but are not eligible for the building safety fund. Is it not time that they were given the peace of mind and the safety they thought their home was providing them?

[Steve Reed]

We are supporting these situations on a case-by-case basis, but I would be more than happy to arrange a meeting for the hon. Gentleman with the Minister for Building Safety, if that would be helpful to him.

[Joani Reid (East Kilbride and Strathaven) (Lab)]

3. What assessment he has made of the potential implications for his policies of recent trends in levels of antisemitism.

--- Later in debate ---

[Anna Dixon (Shipley) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Housing, Communities and Local Government (Steve Reed)]

Earlier this month, the Prime Minister confirmed that 40 more places will join the Pride in Place programme. That means that nearly 300 communities—those most held back by the previous Government—will benefit from that transformational programme. They will receive up to £20 million each over 10 years—a transformational level of funding—and, importantly, local people will decide how that money is spent. This Government recognise that local people know best what needs to change to bring pride back to the heart of the place they call home.

[Anna Dixon]

Our politics are increasingly fragmented. There is a real threat that an extreme minority party could win a majority of seats with just a fraction of the popular vote at the next general election—the situation is urgent. Some 60% of the public now support proportional representation. Will the Minister meet me and other members of the all-party parliamentary group for fair elections to discuss the case for a national commission on electoral reform?

[Steve Reed]

My hon. Friend will be disappointed to hear that the Government have no plans to change the electoral system for UK parliamentary or council elections in England. Indeed, the last time a Government called a referendum on proportional representation, the public rejected it. The Government believe that although first past the post is not always perfect, it provides an important direct relationship between Members of this Chamber and their local constituents. I will of course ensure that she gets an appropriate meeting.

[Mr Speaker]

I call the shadow Secretary of State.

[Sir James Cleverly (Braintree) (Con)]

An estimated 48,000 new entrants to the construction sector are needed every year to meet the Government’s target of 1.5 million new homes. Apprenticeship starts come to about half that figure, and apprenticeship completions come to less than a quarter. Does the Secretary of State now accept that his target will not be met, that there is a growing crisis in construction skills under Labour, and that the Government have no credible plan to deliver the workforce needed to build those homes?

[Steve Reed]

The Government remain fully committed to meeting the target of 1.5 million new homes, and we are working with the sector to ensure that that happens. Local authorities now have housing targets again—they were sadly scrapped under the right hon. Gentleman’s Government—and we are investing £600 million to increase vocational skills and training to ensure that we have the supply of workers that the sector needs. We are working closely with developers, which are themselves helping to fund the pipeline of talent to build the homes that the country needs.

[Sir James Cleverly]

As my hon. Friends have highlighted, under a Labour mayor and a Labour Government, house building in London has collapsed to less than 60% of the target. In October, the Secretary of State said:

“My job should be on the line if I fail to meet my target”.

As the 1.5 million homes will not be built, will he keep his promise and resign, or will he wait to be fired by whoever replaces the Prime Minister after the May elections?

[Steve Reed]

The right hon. Gentleman will be aware, since he was a member of the previous Government, that house building across the country collapsed in 2023-24, and they chose to do nothing. This month the social and affordable homes programme opens for bids. London will get 30% of that, worth more than £11 billion, and that will help to provide the biggest increase in social and affordable homes in London and across the country that this country has seen.

[David Williams (Stoke-on-Trent North) (Lab)]

T5. I support the Government’s plans to build 1.5 million homes, and families and first-time buyers in Stoke-on-Trent and Kidsgrove really need them. Residents from Packmoor, Ball Green, Norton Green and Talke understand that too, but does the Minister agree that development should be brownfield first, protecting green space wherever possible, and backed by the investment in infrastructure that our communities need and deserve?

--- Later in debate ---

[Wendy Morton (Aldridge-Brownhills) (Con)]

I have another request from Walsall borough residents. Earlier today, the Secretary of State said that local people know best. I have sent him an invitation to a peaceful protest in Aldridge on Saturday; residents from right across the constituency are coming together to protect their precious green belt. Will he come and meet with them?

[Steve Reed]

I apologise, but my diary is already full up—I will be in another part of the country on Saturday. I am sure that the right hon. Lady’s constituents will also want to see the homes built that they and their children will need now and in the future.

[Amanda Hack (North West Leicestershire) (Lab)]

We need to improve the infrastructure surrounding new developments and existing developments while ensuring that highways in local government, which felt the full impact of austerity, have the resources to deliver. What conversations has the Minister had about expanding capacity in local government to ensure that highways have the appropriate resources to deliver the infrastructure that we need?