To ask the Secretary of State for Housing, Communities and Local Government, what assessment he has made of the potential merits of introducing a cap on increases in service charges for leaseholders.

To ask the Secretary of State for Housing, Communities and Local Government, what assessment he has made of the potential merits of introducing a cap on increases in service charges for leaseholders.

To ask the Secretary of State for Housing, Communities and Local Government, with reference to the Government's press release of 10 February 2021, Government to bring an end to unsafe cladding with multi-billion pound intervention, when he plans to publish guidance on the 5-point plan to assist leaseholders living in...

To ask the Secretary of State for Housing, Communities and Local Government, with reference to the Government's press release of 10 February 2021, Government to bring an end to unsafe cladding with multi-billion pound intervention, when he plans to publish guidance on the 5-point plan to assist leaseholders living in...

To ask the Secretary of State for Housing, Communities and Local Government, whether he plans to take steps to make Leaseholder Tribunal services more accessible.

To ask the Secretary of State for Housing, Communities and Local Government, whether he plans to take steps to make Leaseholder Tribunal services more accessible.

My Lords, I beg leave to ask the Question standing in my name on the Order Paper and, in doing so, I want to say that I am so proud to be able to ask a Question on your last day, Lord Speaker. You have been an exceptional Lord Speaker;...

My Lords, I beg leave to ask the Question standing in my name on the Order Paper and, in doing so, I want to say that I am so proud to be able to ask a Question on your last day, Lord Speaker. You have been an exceptional Lord Speaker;...

The Government are committed to promoting fairness and transparency for homeowners and ensuring that leaseholders are protected from abuse and poor service. Following Law Commission reports on enfranchisement, right to manage and commonhold, the Government are taking forward a comprehensive programme of reform to end unfair practices in the leasehold market. We are also considering the recommendation from the independent working group on property agents, chaired by the noble Lord, Lord Best.

The Government are committed to promoting fairness and transparency for homeowners and ensuring that leaseholders are protected from abuse and poor service. Following Law Commission reports on enfranchisement, right to manage and commonhold, the Government are taking forward a comprehensive programme of reform to end unfair practices in the leasehold market. We are also considering the recommendation from the independent working group on property agents, chaired by the noble Lord, Lord Best.

My Lords, I refer the House to my relevant interests as set out in the register. Does the noble Lord accept that, in many cases, leaseholders are trapped, paying expensive fees to management companies for the care and upkeep of communal areas or the property that they live in, and that the provisions that enable fees to be challenged and management companies to be replaced are not fit for purpose and need to be radically updated to place real control and choice in the hands of the leaseholders?

My Lords, I refer the House to my relevant interests as set out in the register. Does the noble Lord accept that, in many cases, leaseholders are trapped, paying expensive fees to management companies for the care and upkeep of communal areas or the property that they live in, and that the provisions that enable fees to be challenged and management companies to be replaced are not fit for purpose and need to be radically updated to place real control and choice in the hands of the leaseholders?

My Lords, we believe very strongly that any fees and charges should be justifiable, transparent and communicated effectively and that there should be a clear route to challenge or address things if they go wrong. That is why we commissioned the noble Lord, Lord Best, to do his report.

My Lords, we believe very strongly that any fees and charges should be justifiable, transparent and communicated effectively and that there should be a clear route to challenge or address things if they go wrong. That is why we commissioned the noble Lord, Lord Best, to do his report.

My Lords, on 5 January, when I described leaseholders as

“a relic from a feudal age”,

my noble friend replied:

“There is no doubt that in this country we are unique in having leasehold. We need to focus on reform, which will take this forward to a position similar to that in Scotland or on the continent, where people are co-owners of their property.”—[Official Report, 5/1/21; col. 9.]

Is legislation on its way so that everyone can benefit from my noble friend’s ambition?

My Lords, on 5 January, when I described leaseholders as

“a relic from a feudal age”,

my noble friend replied:

“There is no doubt that in this country we are unique in having leasehold. We need to focus on reform, which will take this forward to a position similar to that in Scotland or on the continent, where people are co-owners of their property.”—[Official Report, 5/1/21; col. 9.]

Is legislation on its way so that everyone can benefit from my noble friend’s ambition?

My Lords, my noble friend knows that the Government wish to extend the benefits of freehold ownership to more homeowners; that is why we are establishing a commonhold council to prepare homeowners and the market for the widespread take-up of commonhold. We share that same drive and ambition to change things.

My Lords, my noble friend knows that the Government wish to extend the benefits of freehold ownership to more homeowners; that is why we are establishing a commonhold council to prepare homeowners and the market for the widespread take-up of commonhold. We share that same drive and ambition to change things.

My Lords, too many property managers and owners have taken advantage of tenants by imposing unreasonable service charges, and often trading with linked companies, so I appreciate the Government’s commitment to finding a clear route to challenge for leaseholders. But what about people who live in sheltered housing—the vulnerable people who really are not able to look after themselves when confronted with an unreasonable agent making outrageous demands?

My Lords, too many property managers and owners have taken advantage of tenants by imposing unreasonable service charges, and often trading with linked companies, so I appreciate the Government’s commitment to finding a clear route to challenge for leaseholders. But what about people who live in sheltered housing—the vulnerable people who really are not able to look after themselves when confronted with an unreasonable agent making outrageous demands?

My Lords, the Government are considering under what circumstances fees and charges for leaseholders and for people in sheltered housing are justified and whether they should be capped or banned. That will form part of our response to the review by the noble Lord, Lord Best.

My Lords, the Government are considering under what circumstances fees and charges for leaseholders and for people in sheltered housing are justified and whether they should be capped or banned. That will form part of our response to the review by the noble Lord, Lord Best.

My Lords, can the Minister give the House any indication of progress on the leasehold reform issue? The recent White Paper was welcomed by many people, including my friends on the Isles of Scilly who feel that they are very badly treated. How many of the recommendations in that White Paper might appear in legislation soon?

My Lords, can the Minister give the House any indication of progress on the leasehold reform issue? The recent White Paper was welcomed by many people, including my friends on the Isles of Scilly who feel that they are very badly treated. How many of the recommendations in that White Paper might appear in legislation soon?

My Lords, we are starting off with a two-step approach to reform. A ground rents Bill will be announced in the Queen’s Speech. It will take approximately a year to prepare the wider reform proposals around enfranchisement, right to manage and other matters covered by the Law Commission.

My Lords, we are starting off with a two-step approach to reform. A ground rents Bill will be announced in the Queen’s Speech. It will take approximately a year to prepare the wider reform proposals around enfranchisement, right to manage and other matters covered by the Law Commission.

Last night, the Government refused yet again to amend the Fire Safety Bill to protect leaseholders from charges levied for the replacement of defective fire-resistant cladding. I repeat my noble friend Lady Pinnock’s concluding question:

“if it is not the right Bill, where is the Government’s Bill … that will keep the Government’s pledge that leaseholders would not have to face the unaffordable consequences of fire safety defects?”—[Official Report, 28/4/21; col. 2371.]

That seems already to be a broken promise. How will the Government now stop bankruptcy proceedings and loss of homes?

Last night, the Government refused yet again to amend the Fire Safety Bill to protect leaseholders from charges levied for the replacement of defective fire-resistant cladding. I repeat my noble friend Lady Pinnock’s concluding question:

“if it is not the right Bill, where is the Government’s Bill … that will keep the Government’s pledge that leaseholders would not have to face the unaffordable consequences of fire safety defects?”—[Official Report, 28/4/21; col. 2371.]

That seems already to be a broken promise. How will the Government now stop bankruptcy proceedings and loss of homes?

My Lords, the Government have already put an unprecedented sum of money—over £5 billion—on the table to support the remediation of unsafe cladding. We made it very clear that the steps that we are taking can be covered without statutory intervention.

My Lords, the Government have already put an unprecedented sum of money—over £5 billion—on the table to support the remediation of unsafe cladding. We made it very clear that the steps that we are taking can be covered without statutory intervention.

My Lords, I declare my interests as in the register. If a company knowingly supplies substandard goods and dozens of people die because of it, but the company walks away with billions of pounds of profit without renovating or replacing all the other substandard products that they have already put in place, is that just good business practice?

My Lords, I declare my interests as in the register. If a company knowingly supplies substandard goods and dozens of people die because of it, but the company walks away with billions of pounds of profit without renovating or replacing all the other substandard products that they have already put in place, is that just good business practice?

Clearly not, my Lords.

Clearly not, my Lords.

My Lords, is there evidence that property management companies are more effective than leaseholders in managing the upkeep of communal areas? Does there need to be the same redress route if the freeholder also acts as the property manager? Can the Minister advise whether the Government intend to bring forward legislation to extend the requirement of membership of redress schemes to freeholders where no managing agent is employed?

My Lords, is there evidence that property management companies are more effective than leaseholders in managing the upkeep of communal areas? Does there need to be the same redress route if the freeholder also acts as the property manager? Can the Minister advise whether the Government intend to bring forward legislation to extend the requirement of membership of redress schemes to freeholders where no managing agent is employed?

My noble friend will know that there are various reasons leaseholders may exercise the right to manage, and the Government are committed to simplifying the process. I point out that many right-to-manage companies choose to employ a managing agent. In response to his second point, the Government intend to require freeholders of leasehold properties who do not employ a managing agent to join a redress scheme, and we will bring forward legislation when parliamentary time allows.

My noble friend will know that there are various reasons leaseholders may exercise the right to manage, and the Government are committed to simplifying the process. I point out that many right-to-manage companies choose to employ a managing agent. In response to his second point, the Government intend to require freeholders of leasehold properties who do not employ a managing agent to join a redress scheme, and we will bring forward legislation when parliamentary time allows.

My Lords, I declare my interest as listed in the register. Is the Minister aware that, in order to get the necessary certification for electricity, gas or water, for example, landlords are required to get services tested? I have

heard many examples of deficiencies being exaggerated, and then quotes being given to remedy the situation that are vastly disproportionate—engineers have proved this later. I worry that many innocent people may not realise this is happening.

My Lords, I declare my interest as listed in the register. Is the Minister aware that, in order to get the necessary certification for electricity, gas or water, for example, landlords are required to get services tested? I have

heard many examples of deficiencies being exaggerated, and then quotes being given to remedy the situation that are vastly disproportionate—engineers have proved this later. I worry that many innocent people may not realise this is happening.