Retirement Property Management Companies: Regulation

Tessa Munt Excerpts

Tuesday 8th September 2026 Commons Chamber

[Simon Hoare]

I agree with my hon. Friend and with his constituent, Alex Roll, who has been in contact with me via Facebook. I take the point that my hon. Friend makes on her behalf, and that she makes on behalf of countless others, which is that these companies are inclined to effectively hunt with the hounds and run with the hare at the same time. When somebody dies and the property then goes up for sale—sometimes, because of the restrictive covenants, the resale can be a slow and difficult business—not only do these companies receive a fairly significant clawback at the point of sale, but they demand service charges to be paid while the property is vacant or while probate is awaited. They really are trying to milk it from both ends, and I just do not think that stacks up in the court of public opinion as being fair or justifiable. One should be able to say, “This property is vacant. We will not levy the service charge, as that will effectively be included in the clawback that we get at the point of sale,” because there is clearly no resident in that property using those services.

[Tessa Munt (Wells and Mendip Hills) (LD)]

I thank the hon. Gentleman for giving way. I just wanted to highlight a case of exactly that. I have a constituent whose property has been on the market since 2022. The landlord chooses who the new owner will be. The adult members of the family, who are struggling to get on to the property ladder, cannot move in because they are not over 55, and the landlord will not allow the property to be rented out, even though it rents its properties out on the same site. They are absolutely banjaxed. There is an exit fee as well. It is catastrophic. I wonder whether the hon. Gentleman agrees that this is just opportunistic profiteering at the expense of people who are vulnerable, and actually, when people have died, the families really are catastrophically affected.

[Simon Hoare]

The hon. Lady expresses it very well, and I agree with her assessment entirely. It is the age and vulnerability of many—the “anything for the quiet life” factor—that is being exploited to the max.

I want to mention specifically the hon. Member for Surrey Heath—although in this campaign he is very much my hon. Friend. We have been working together very closely on issues relating to Cognatum. He has Mytchett Heath in his constituency, and the issues being raised by his residents mirror those being raised by mine, and it is not a pretty picture.

--- Later in debate ---

[Florence Eshalomi]

Nearly right! My apologies. That is an issue that I will definitely be forwarding. I have taken a note of it and I will forward it to the Housing Minister so that the hon. Gentleman can get a proper response.

[Tessa Munt]

When the Minister says managing agents, does she mean management companies, a bit like FirstPort, which provide a lamentable service? One of the retirement buildings in my patch has just been offered the repainting of its windows for £240,000. I think that works out at over £5,000 per flat. This is just for the birds. It is absolutely bonkers. I want to be sure that they will be captured within the legislation that she is proposing.

[Florence Eshalomi]

I can reassure the hon. Lady that FirstPort continues to come up regularly. I had the pleasure, in my former role as Chair of the Select Committee, of scrutinising and questioning the managing director and chief exec of FirstPort, and the hon. Lady will be aware that the Housing Minister has also held important meetings with FirstPort. There are other managing agents that we should not let off the hook, but FirstPort has a large share of properties across the country.

The hon. Member for North Dorset mentioned the consultation on section 20, and this is a key issue that the Government have been looking at. The Government consulted on that last year, and my understanding is that they will be setting out the response in due course. Again, this is something that I will push the Housing Minister on, on the hon. Gentleman’s behalf, to ensure we come back to this in a timely manner.

I also want to highlight the experiences that other hon. Members have raised on behalf of their constituents. It is important that we continue to share these really valid examples to show why we need to move at pace in regulating this important area. We recognise that the pre-legislative scrutiny report into the Commonhold and Leasehold Reform Bill recommended that a number of measures should be extended to retirement providers, and we will consider that as part of our work. I am happy to say that it was a good Member of Parliament who led on that pre-legislative scrutiny.

I am grateful to the many hon. Members who have come to the House this evening to debate this important issue. I thank them for sharing their insights and, most importantly, sharing the lived examples and concerns that many residents continue to face. We continue to see people who are worried, when another bill or letter comes through the door, about what will be demanded from them. We see them worry that, when they do not respond to those letters, they could be issued with court and threatening letters. It is really important that we address this emotional, physical and mental impact; it is not just about the financial impact it is having on vulnerable residents. I want to thank all Members for engaging with this, and I look forward to working with them. I know that the Minister for Housing and Planning will also be engaging further with Members.

Question put and agreed to.