Retirement Property Management Companies: Regulation

Warinder Juss Excerpts

Tuesday 8th September 2026 Commons Chamber

[Simon Hoare]

I think it manifests itself in all quarters of the United Kingdom, but not all companies are culpable. My other campaign is on the regulation of the funeral sector; it is the rotten apples in the barrel that give the whole sector a bad name. It is on them that attention should be focused.

[Warinder Juss (Wolverhampton West) (Lab)]

Will the right hon. Gentleman give way?

[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.

--- Later in debate ---

[Warinder Juss]

rose—

[Simon Hoare]

The hon. Gentleman has been frightfully patient. I will give way to him.

[Warinder Juss]

I thank the hon. Member for giving way. I have a 92-year-old constituent, Freda Quinton, who has been unable to live in her retirement property since April because persistent and unresolved leaks have not been repaired, despite repeated assurances that they would be. She therefore cannot live independently. She now has health concerns, emotional distress and financial pressures. Does the hon. Member agree that that is no way to treat older residents and that a problem exists not only with the management company that he has referred to, but with others?

[Simon Hoare]

I agree. There is a common theme coming through, which is the age, the vulnerability, the “anything for the quiet life,” the “We’re not empowered to ask questions,” and maybe not being digitally alert. Some bigwig from a company comes along and attends a meeting. In the case of Cognatum, they tell us, “Don’t worry, Mr Hoare, Dr Pinkerton and Mr Foord, because we have a tenant representative on the board.” How is that tenant representative chosen? They are chosen by the board of Cognatum—they are not elected by fellow residents at all—so a poacher chooses potentially another poacher to mark their own homework.

There is this vulnerability: this “anything for a quiet life”; this “are we empowered to ask questions?” Indeed, the tipping point for me was when one of my constituents, who was asking perfectly legitimate questions in a perfectly civil way, found on his doormat a letter from Cognatum’s solicitors saying, “We think you are being vexatious and we are considering your lease arrangements.” Effectively, they were saying, “Ask any more questions, sunshine, and you’re out on your ear.” That gentleman is over 80. I do not think that is the right and proper way to treat anybody.

The hon. Member for Wolverhampton West (Warinder Juss) raised a distressing case, obviously causing concern to him, to his constituents and to their friends and family. I hope that the comments and observations made in the debate have convinced the Minister that the status quo cannot continue. While we all call for a lighter regulatory approach and so on, this is a particular area of operation that has grown swiftly and autonomously, and is now crying out for reform. Reform of the association and rigorous enforcement of the section of the Act that I quoted would be a good starting point.