Retirement Property Management Companies: Regulation

Tom Gordon Excerpts

Tuesday 8th September 2026 Commons Chamber

[Simon Hoare]

I will not, if the hon. Gentleman will forgive me, because we want to hear from the Minister.

I am told that Cognatum and its subsidiaries claim small companies exemptions, meaning that there are no independent audits and the directors control the financial disclosures. Inconsistent and exceptional accounting items suggest financial irregularities. The company operates on a “going concern” basis, despite significant inter-company debts, and the auditors do not sign the reported financial statements, raising accountability concerns. That suggests, as the hon. Member for Wells and Mendip Hills (Tessa Munt) and others have suggested, the need for regulation.

I have two asks of the Minister. The first is to have a thorough assessment of the effectiveness and independence—or rather, the lack thereof—of the Association of Retirement Housing Managers. They are populated in the main by current operators. Effectively, colleagues are being asked to mark other colleagues’ homework. I do not think that is sustainable or desirable, and it needs looking at.

A number of my constituents believe that there is a rather lackadaisical approach to following the requirements of section 20 of the Landlord and Tenant Act 1985. I know that the Government have been doing some work on that, so it would be interesting to hear what the Minister has to say.

In closing, I am grateful to colleagues from across the House who have supported me in this endeavour. I pay tribute again to the hon. Members for Surrey Heath and for Honiton and Sidmouth for the work that the three of us have been doing with regard to Cognatum. We did say that there would be an Adjournment debate if Cognatum was not prepared to engage and try to pull up its socks and improve the operation and service that they give to their residents, so this is a debate literally of their own making.

This sector has grown up quite quickly; it is still quite novel in this country. People are still finding their way, and I think we are probably only on the first or second generation of residents experiencing the pitfalls of both resale and clawback issues and the lack of accountability that exists in the management and maintenance of many of these places where people live.

These people have chosen to live there. They have invested a significant sum of their money so that they can live a retired life in dignity.

[Tom Gordon (Harrogate and Knaresborough) (LD)]

The situation that the hon. Gentleman describes is somewhat analogous to what we see with park homes, for which there is a requirement for a fit and proper person test, with regulation from the local authority. Might that suit the situation he outlines?

[Simon Hoare]

That is a good suggestion. Anything has to be better than the status quo, which is neither defensible nor indeed desirable.

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[Florence Eshalomi]

I hope the Select Committee is going very well. The hon. Gentleman will know that this is an issue that we championed on the Committee to the point that, if he recalls, in many senses I harassed the former Prime Minister and the Minister for Housing, saying “When will we see the Bill? The Bill has to come before the House. It is an issue that comes into many parliamentarians’ inboxes, it is a cross-party issue and we want to see the Government act on that and make good on that commitment.”

I want to highlight that there are many good managing agents out there. This is not about saying that the issue of managing agents is all bad. There are good ones who are responsible, who respond on time and who are responsible for providing safe and secure homes for their residents. However, we know that far too often, the poor and unscrupulous managing agents let the sector down.

Managing agents play an important role in the maintenance of a wide range of multi-occupancy buildings and freehold estates. Their importance will only increase as we transition towards a commonhold future, so it is essential that we take action to drive up the standards within the sector. As the hon. Member for North Dorset and other hon. Members will know, the previous Government committed to regulating managing agents in 2018 and asked a working group chaired by Lord Best to advise them on how to do that. Yet, they failed to respond to the group’s final report, which was published in July 2019. We have moved on from that. It is about how we now take those recommendations and bring an outcome for so many people, and the Government are ready to take forward a number of those recommendations.

The retirement sector has some specific arrangements in place. Many retirement housing managing agents already operate under the Association of Retirement Housing Managers’ code of practice, which sets the standards on transparency and complaints handling, but as we have heard this evening that does not seem to be working and it is about how we ensure that we are enforcing some of those key areas. Elsewhere in the sector, similar consumer protection standards are promoted through the Associated Retirement Community Operators’ consumer code for its members. I stress again: we recognise the concerns that remain in parts of the sector and are considering how we can protect consumers and residents to strengthen that and have a consistent approach.

In the recent consultation on strengthening leaseholder protections over charges and services, we consulted on powers to appoint a manager or to replace a managing agent, as well as on mandatory professional qualifications for managing agents in England. The Government will consult on the introduction of qualifications for estate and letting agents next year. We have also made it clear that we plan to introduce a code of practice this year setting out the minimum standards expected of all residential property agents. This includes estate, letting and managing agents. The Government are considering Lord Best’s report in full, and we will set out our overarching position on the regulation of estate, letting and managing agents in due course, but this has to come at a timely pace.

[Tom Gordon]

I mentioned earlier in response to the hon. Member for North Dorset (Simon Hoare) that this was in some sense analogous to the issues that park home residents face. While there is a fit and proper person test in that instance, it is often lacking and not the tightening regulation that people had hoped for. What measures will the Minister bring forward, having learned from those experiences, to ensure that we get proper regulation that has teeth and that will work?

[Florence Eshalomi]

I thank the hon. Member for Didcot and Wantage—

--- Later in debate ---

[Tom Gordon]

Harrogate and Knaresborough.

[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.