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Housing and Regeneration Bill

Never mind. On new clause 29, I agree with the hon. Gentleman that sinking funds are a sensible idea to help leaseholders spread contributions over the longer term and to help to avoid high, one-off costs for capital works. I have worked with my hon. Friends the Member for Regent's Park and Kensington, North (Ms Buck) and the Member for Islington, South and Finsbury (Emily Thornberry) on this matter, and I am keen to make sure that we can help as much as possible. I suggest to the hon. Gentleman, however, that the provision is unnecessary because councils already have the ability in question, where leases allow. We are aware of the practical obstacles that prevent that process from happening in practice, and it is currently difficult for a local authority to contribute to the sinking fund the precise amount that would represent the sums payable by non-leaseholders—the so-called tenant's proportion. The local authority's contribution on behalf of the tenants would be needed to ensure that the fund was adequately resourced to meet the full cost of any such works and to provide the necessary clarity and transparency with regard to its real value. Earlier sinking funds lapsed largely because leaseholders were reluctant to make contributions when works were not carried out—often because of a lack of resources. It has also been difficult to set contributions that balanced the need for affordability and the need to be realistic in meeting the costs of works.