Leasehold Reform

Tom Hayes Excerpts

Tuesday 3rd June 2025 Westminster Hall

[Alex Norris]

I absolutely can. My hon. Friend is a doughty campaigner for buildings in Southampton. We are meeting later to discuss one of them. I assure him, and those residents, that we know that they need change and relief now. That is why we have made the changes that we have been able to make so far. We want to get the changes right so that when the relief comes, it sticks, does not get mired and has the right impact. However, we appreciate the urgency with which my hon. Friend speaks.

Several hon. Members have mentioned service charges and managing agents. Service charges have become a particular pinch point, highlighted by the cost of living pressures in recent years. The LAFRA gives us measures to increase transparency and to remove barriers that prevent leaseholders from challenging them, including more standardised information. However, this year, we will consult on the Act’s provisions on service charges and litigation costs so that we can bring them into force as quickly as possible.

We will also consult on reforms to the section 20 major works procedure, which landlords must follow when leaseholders receive big bills for large works, as has been mentioned in the debate. There is much more to do in that area.

On the subject of managing agents, I reassure my hon. Friend the Member for Brentford and Isleworth that we have heard her call about minimum standards.

[Tom Hayes (Bournemouth East) (Lab)]

My constituents have been defrauded by Initiative Property Management, are suffering at the hands of Scanlans Limited, and have had to deal with the Residential Management Group, representatives of which I am meeting later today. I welcome this Labour Government’s action to hold companies such as those accountable, to challenge unfair charges and hidden fees, and to end leasehold. What is the Government’s message to rogue management companies? I ask so that when I meet the Residential Management Group, I can convey the will of the Government.

[Alex Norris]

I am keen to say clearly from the Front Bench that we will legislate in this area to close the dark corners that unscrupulous managing agents use to maximise profits. However, they do not have to wait for that in order to do the right thing. They have a duty to residents. There are many great examples of managing agents and landlords doing the right things by their residents. That is good for them, their building and the individuals who live there. They can do that today. I know that my hon. Friend will continue his work until they do so.

That brings me to an important point that was raised both by my hon. Friend the Member for Bournemouth East and by my hon. Friend the Member for Brentford and Isleworth when she opened the debate, about the regulation of managing agents. They play an important role, particularly in multi-occupancy buildings, and that role is likely to increase in importance as commonhold becomes the default tenure. Many provide a good service, but there are too many examples like those mentioned by my hon. Friend the Member for Bournemouth East. I know that all hon. Members here could tell me about similar examples. In 2018, the previous Government committed to regulating the sector. The report came back from Lord Best and they did not respond to it. We are looking at it closely and we will set out our position in due course. However, we have said that as a minimum, we will include mandatory professional qualifications for managing agents, to ensure that they have the skills that they need to carry out their role to a high standard.

Finally, my hon. Friend the Member for Brentford and Isleworth mentioned building safety and fire, which are part of my brief. As a Government, we understand that as part of our remediation acceleration plan, we need to give clarity about what a remediated standard is. I have talked to insurers about it, including about what they are asking for. The cladding safety scandal is being addressed through remediation. That cannot lead to a half a dozen other issues for leaseholders. We are pushing industry in that area, but we have been asked for certainty and we will deliver it.

There has been a lot to consider in this debate, and it could easily go on for another hour, which I think would be important. However, I know that colleagues will not let the matter lie. The subject is frequently on Parliament’s agenda, and rightly so. There are people living under intolerable strain. We are committed, as a Government, to giving them relief as quickly as possible, and in a way that sticks. I will be working on it with my hon. Friend the Member for Brentford and Isleworth and colleagues over the coming weeks and months.

Question put and agreed to.