BACKBENCH BUSINESS

The debate is overdue due to the impact on millions of homeowners. Issues discussed include the length of leases, service charges, insurance fees, refurbishment costs, recognition rights, ground rents, and dispute resolution procedures. The speaker provides examples from his constituency where leaseholders face problems such as poor management and overcharging for services.

Congratulates the hon. Gentleman on securing a debate on leasehold issues, highlighting that many people entering these agreements are unaware of potential ground rent increases. Suggests tenants should have clear information about their rights and how to challenge landlords.

Acknowledges the importance of the debate and notes that many people, including lawyers, do not recognise the implications of leasehold agreements. Mentions that some developers have changed their policies in response to public outcry but emphasises the need for protecting tenants from rogue landlords. Outlines aims of the all-party group such as reducing exploitation opportunities and alleviating distress among leaseholders. Acknowledges media interest and support from Ministers, advocating for better regulation and legislation.

Emphasises the absurdity of high ground rents and provides a calculation to illustrate the financial burden on leaseholders over time. Supports the efforts of the all-party group and highlights the need for legislative action.

Advocates for the Ministry of Justice to abandon the opportunity of winning a forfeiture order on residential homes over small debts. Critiques current practices that allow freeholders to gain unfairly from leasehold disputes and calls for better regulation to prevent exploitation by unscrupulous landlords, such as Martin Paine. Suggests measures like banning certain clauses in leases and requiring auctioneers to review leases thoroughly before sales.

Questions whether the dispute resolution procedure was originally intended for informal arrangements but has been distorted by unscrupulous freeholders using high-powered legal representation, which unfairly burdens leaseholders with costs regardless of the outcome.

Agrees with the review of LEASE but criticises its decision to try and sustain itself in four years. Discusses issues surrounding leasehold property, including manipulation by managing agents, fundraising conferences for surplus funds, and examples of excessive insurance commissions. He also emphasises the need for legal action against abuses and suggests a system where leaseholders have an interest in block maintenance. He provides historical context on leasehold reform and calls for a statutory regulation of managing agents.

Compliments Peter Bottomley's work on the issue, questioning whether the current pattern of leasehold tenure is fit for purpose. Suggests moving to either freehold vested in resident-controlled management companies or a properly functioning commonhold system.

Thanks Peter Bottomley for mentioning Charter Quay in his constituency and acknowledges the residents' association's efforts. Emphasises that older people, who often downsize into leasehold properties, struggle with inflated costs and expenses.

My hon. Friend is absolutely right. If a leaseholder wants to exercise their rights under the law or to stop being abused because someone is trying to assert rights that they do not have, they have to know 22 Acts of Parliament, regulations and codes...I give strong commendation to Philip Rainey QC, who addressed our meeting last week and gave various proposals for what could work and could do so quite fast. That does not solve all problems easily, but it makes most difficult problems become easier and makes easy ones go away.

I am about to take the chairmanship of the all-party parliamentary group on park homes, so my hon. Friend’s comments immediately interest me. The problem is not just the rent that unscrupulous people charge. It is usually elderly people who live in park homes and they are charged a fortune for utilities.

I am grateful to my hon. Friend. If he will sign me up as a member, I would be happy to join the group...Given that there are 5 million to 6 million leaseholders in the country, far more than public estimates, the Office for National Statistics should be able to work out the trends and numbers as national statistics.

What we are discussing today is nothing short of a national scandal. It is the PPI of the house building industry...I echo the tribute paid to the Leasehold Knowledge Partnership for the excellent professional assistance that it has provided to us and to the many homeowners affected by the issues discussed today.

Does the hon. Gentleman agree that when ground rent or other charges double, it would be usual to expect double the service? As this is not the case, it goes against natural justice.

I thank the hon. Gentleman for his intervention...Obviously, leasehold flats are a slightly different matter.

A service charge or maintenance charge is one thing; the ground produces nothing...It seems to me that if he can say that openly, others should as well.

Mr. Bottomley questioned whether solicitors provided adequate advice to both initial buyers and subsequent purchasers, noting the inconsistency in such guidance which could be a critical factor in how leasehold issues are perceived and addressed.

Mr. Madders responded by acknowledging the role of solicitors but also pointed out that developers should bear primary responsibility for including onerous clauses in lease agreements, noting a streamlined process within legal practices which may have contributed to such issues going unnoticed.

Mr. Stewart emphasised the professional obligation of solicitors to inform clients about potentially onerous terms in lease agreements, questioning why such information is often not provided adequately during the purchasing process.

My constituents believe they have been 'comprehensively stitched up' by the current leasehold system. A constituent attempting to purchase her lease was quoted £32,000, far more than what she had originally been offered, reflecting a profit motive from new owners. She faces significant financial barriers and struggles to get meaningful responses or assistance. Developers like Bellway and Taylor Wimpey are increasingly selling new builds on a leasehold basis, often leading to excessive costs for residents due to ground rent hikes and prohibitive purchase prices after resale by the original developer. This practice should be prohibited and measures taken to ensure transparency and fair treatment of purchasers.

I represent constituents in Elim Court and Regent Court who have been battling for the right to manage their properties under the Commonhold and Leasehold Reform Act 2002. The RTM process has proven overly complex with numerous technicalities that make it difficult without legal advice, hindering elderly residents' efforts to take control of poorly managed buildings. High costs associated with tribunals and appeals are prohibitive for many residents. Additionally, the case at Regent Court highlights issues where insurance companies and landlords fail to act in the best interests of leaseholders, leaving them liable for costly repairs without proper coverage or support.

I advise that Justice Ministers should consider taking over cases like Elim Court and Regent Court at public expense to ensure justice. The House follows these cases closely, questioning the responsibilities of freeholders in maintaining buildings and handling insurance claims properly. There is a need for clarity and intervention by law officers to address the systemic issues faced by leaseholders.

He highlighted the ombudsman’s decision regarding millions of leaseholders facing similar issues across the country. He pointed out conflicts of interest where landlords own insurance brokers and high commissions being paid on insurance up to 40%. He called for a more flexible, transparent system for RTM, insurance issues, service charges, and suggested revisiting leasehold and commonhold reform.

She congratulated the hon. Members who secured the debate and thanked them along with the all-party parliamentary group on leasehold reform for their work. She noted that leasehold property often suits needs better than a freehold house when it works well, but highlighted numerous issues including lack of transparency in service charges, unexplained increases year-on-year, difficulties exercising right to manage or enfranchise, and the scandal of lease forfeiture. She emphasised the need for urgent action to stop exploitation of homeowners.

He offered Ruth Cadbury an example from his constituency where residents are struggling to secure their right to manage against delays by owners, highlighting the need for reform in leasehold system.

He mentioned a CBRE report that highlighted some developers selling freeholds in advance to escape responsibility of offering it to leaseholders after two years, illustrating poor practices in the leasehold market.

Reform of leasehold law is 'unfinished business' with too many loopholes. Labour would give security against rip-off ground rents, end the routine use in new developments, cap charges, and set out a plan to address these issues.

Congratulates the Members for securing the debate; acknowledges the importance of leasehold reform. Highlights that there are over 4 million leasehold homes in England, with a growing proportion of new builds being leaseholds. Acknowledges that existing legislation has not fully solved the problem.

Reminds Minister of his party's campaigning efforts to raise awareness about the number of leasehold homes, suggesting it may be higher than 4.1 million.

Acknowledges that there is a widespread problem in leasehold practices; seeks to explore greater transparency and fairness for leaseholders. Mentions that the Law Commission's consultation on leasehold reform will be used as part of their discussions.

Asks what can be done to deal with existing onerous conditions in leases, highlighting concerns for homeowners who may find themselves unable to sell their homes due to high ground rents.

Suggests consulting officials and others on whether there is scope for declaring certain lease conditions unfair terms that could be written out.

The hon. Member inquired about the rights provided under the Housing and Planning Act 2016, specifically whether it includes a right to veto for residents associations.

Responding to Ruth Cadbury's inquiry, the Minister explained that while the Housing and Planning Act 2016 enhances rights for resident associations, it does not provide a right to veto. However, section 130 of the act aims to assist residents associations by providing them with information on contacting absent leaseholders to increase membership needed for statutory recognition.

The hon. Member noted agreement with the Minister's explanation regarding the legal proceedings costs recovery as administrative charges, highlighting the unfairness in current practices which discourage leaseholders from challenging service charge amounts.

The Minister acknowledged Jim Fitzpatrick's concerns and noted that section 131 of the Housing and Planning Act aims to address this issue by allowing tribunals or courts to consider whether it is reasonable for landlords to recover all or part of these costs from leaseholders.

The hon. Member expressed gratitude towards the Leasehold Advisory Service, or LEASE, for providing crucial advice and support to constituents facing complex leasehold issues.

This has been an important debate despite fewer contributions than expected. Colleagues listened to the Minister's winding-up speech, recognising the issue's importance. The hon. Member for Worthing West exposed abuses naming names, while my hon. Friend the Member for Ellesmere Port and Neston compared it to the PPI scandal. Colleagues from various constituencies highlighted issues in their areas.

I wish everyone a very happy Christmas and a good new year, returning the compliment of wishing colleagues a decent break.

Rising to speak on behalf of the Backbench Business Committee about matters before the adjournment. Expressing horror at Berlin Christmas market events and sympathy for Aleppo's condition under a brutal dictator, looking forward to conflict resolution in the new year. Mentioned Jo Cox's murder and suggested downloading her single as a tribute.

Praised Harrow Council for beginning to build council houses again after 28 years, a key part of tackling the housing crisis affecting both constituencies.

Thanked the hon. Member for his point about Harrow Council and its importance in providing affordable housing. Raised concern over Equitable Life policyholders, with more than 216 MPs supporting compensation efforts.

Concerned that Equitable Life policyholders are getting older and urged action on the matter to help those affected.

The right hon. Gentleman paid tribute to the work of the hon. Member for Harrow East on behalf of the Hindu community and agreed that it is important to have a proper debate involving the diaspora before the document is rushed through the House.

The Speaker advised Members to take up to eight minutes for their speeches in order to accommodate everyone within the limited time available, emphasising equality and a Christmas spirit among colleagues.

The hon. Member highlighted the need for an updated drugs strategy with adequate resources, expressed concern over drug deaths in her area, and urged reconsideration of school sprinkler guidance to ensure safety. She also criticised a contract awarded by Scottish Power that created fewer UK jobs than expected.

Mrs Theresa Villiers expressed concerns about the Making Tax Digital programme, highlighting issues such as proposed quarterly reports and real-time transaction reporting. She noted that these new requirements could impose significant financial burdens on small businesses and landlords. The MP suggested aligning thresholds with VAT requirements or making them voluntary below a certain turnover level to mitigate costs.

Discussed the World Health Organisation Protocol to Eliminate Illicit Trade in Tobacco Products, noting that it was signed by the UK Government three years ago but has not yet been ratified. Emphasised the public health concerns and financial losses due to illicit tobacco trade, which cost HMRC £2.4 billion in 2015-16. Called for the protocol to be laid before Parliament as a Command Paper.

Addressed rail travel disruption affecting his constituents commuting from Chelmsford to Liverpool Street. Highlighted recent disruptions due to track cracks and train breakdowns, despite improvements in infrastructure investment. Advocated for immediate solutions such as better communication during disruptions and fewer freight trains during rush hour. Suggested the Department for Transport trial digital signalling on the Liverpool Street-Chelmsford-Colchester-Ipswich-Norwich line.

McDonagh discussed the negative impact of pay cuts on workers due to higher statutory minimum wage, mentioning specific companies like B&Q, Marks & Spencer, 2 Sisters Food Group, Waitrose, Caffè Nero, and EAT. She noted that about half a million people in retail, restaurant, and food manufacturing industries would receive pay cuts, with some losing more than £1,000 or £2,000 per year. McDonagh also criticised John Lewis for reviewing their 'legacy payments' and expressed concern about the Ahmadiyya Muslim community facing persecution.

Ferrier, as vice-chair of the all-party group on the Ahmadiyya Muslim community, agreed with McDonagh's stance and emphasised the importance of standing up against religious persecution.

Liddell-Grainger discussed a merger plan between West Somerset Council and Taunton Deane, expressing concerns over gerrymandering, sharp practices, and suspicions of corruption. He highlighted the financial struggles of West Somerset Council and alleged that Taunton Deane sought to merge for financial gain from Hinkley C nuclear power station business rates.

Critiques the proposed merger between West Somerset and Taunton Deane councils, highlighting issues such as lack of proper consultation, financial concerns, inadequate broadband infrastructure, conflict of interest among councillors, and negative public sentiment towards the merger. Calls for a fair referendum to test public opinion.

Chris Matheson argued for a qualified approach to free movement, advocating that job offers should be advertised in the UK at agreed rates. He criticised the 'post-truth' politics evident during the EU referendum campaign and expressed concern over its impact on political discourse and public trust in institutions. He called for respect for those who voted to remain and warned against ignoring their views.

Discussed two important constituency issues: the Metrobus scheme for transport infrastructure improvement, which aims to carry 600,000 passengers per year but has caused significant disruption; and Winterbourne International Academy's management issues. The MP emphasised that while he supports the Metrobus project, its current execution must be improved. He also raised concerns about the lack of communication during the school re-organisation process and stressed the need for better future transparency in such matters.

Ms Lyn Brown raised three issues from community casework in her constituency: the unacceptably painful hysteroscopy procedure conducted without anaesthesia, arthritis awareness to highlight its significant impact on individuals' lives and employment, and the safety concerns for British nationals visiting Pakistan. She emphasised that one quarter of UK hysteroscopy patients reported severe pain and highlighted the need for better systems and proper anaesthesia provision for these procedures.

Agreed with Bob Stewart's concerns, calling for a swift resolution to remove the 'black cloud' over soldiers who served in Northern Ireland. Highlighted the need for justice and closure for those affected by terrorist attacks.

Supported the comments made regarding the investigations into fatal shooting incidents involving soldiers in Northern Ireland, expressing his support for making a difference during Christmas time. Emphasised the importance of faith, family and community during the festive period.

Emphasised the importance of community involvement, highlighted personal experiences in assisting constituents with various issues, and encouraged others to follow suit. Quoted Edward Everett Hale’s message about doing what one can despite limitations.

Complimented Jim Shannon on his heart and dedication, acknowledging the difficulties but praising his commitment.

Expressed gratitude to colleagues for understanding and support, wished everyone a merry Christmas and a happy new year.

Acknowledged Jim Shannon’s contributions, discussed concerns about Department for Work and Pensions (DWP) assessments. Highlighted the impact of Ken Loach's film 'I, Daniel Blake' on public perception. Advocated for recording DWP assessments to ensure dignity and respect during evaluations.

Mr. Amess praised bereavement counselling services provided by Fair Havens Hospice in his constituency, expressed concern over management changes at Southend hospital not materialising as expected, highlighted the upcoming year of celebrations for Southend's cultural events and its 125th anniversary, raised concerns about adult social care funding cuts, criticised the Chilcot report outcome, welcomed refugees from Camp Liberty to Albania, criticised a school inspection that judged Our Lady of Lourdes school as failing, protested against the arrest of a constituent under counter-terrorism laws for humanitarian work in Kurdistan, called for reassessment of property disputes due to minor boundary issues, supported marine protection zones and Anglia Ruskin University's plans for specialist medical degrees, commended local businesses and community initiatives.

Mr Vickers highlighted the economic potential of his constituency, including the port complex at Immingham and the resort town of Cleethorpes. He discussed regeneration efforts, local government funding cuts, housing development on greenfield sites, transport infrastructure improvements such as road and rail services, and educational performance in coastal areas. He also emphasised the importance of not forgetting the fishing industry post-Brexit.

Berry emphasised that hate speech and extremist content online pose serious threats to societal well-being, including racism, anti-Semitism, Islamophobia, homophobia, and other forms of discrimination. He cited the Home Affairs Committee's report on anti-Semitism where a Jewish colleague received 2,500 abusive tweets using the hashtag #filthyjewbitch. The MP argued that social media companies should be held accountable for harmful content and suggested three options: legislative action, encouraging users to vote with their feet, or supporting self-regulation through funding not-for-profit organisations to manage online content.

He raised issues such as cyber-bullying, particularly focusing on the tragic case of Brandon Singh Rayat. He also discussed the lack of clarity around police funding formula and called for structured education in diabetes care to prevent long-term costs. Additionally, he mentioned the issue of Indian currency notes being recalled by the Indian Government, suggesting that these could be banked in India through UK banks as a solution. Vaz also addressed the humanitarian crisis in Yemen and celebrated Leicester City’s historic football victory.

Asked about Arsenal's performance, indicating interest in football but not specific to the debate topic.

Welcomed economic developments in Stafford, including investments by General Electric and Chinese institutions. Highlighted the expansion of the Ministry of Defence site in Stafford and the importance of small and medium-sized businesses. Raised concerns about the sustainability and transformation programme for Stoke-on-Trent and Staffordshire, particularly regarding the potential closure of accident and emergency departments. Discussed issues with social care funding and the impact of the living wage on care homes. Mentioned transport issues, including HS2 phase 2a construction and M6 road improvements. Advocated for hoists in hotel rooms to accommodate disabled people. Raised concerns about local authority regulation of facilities containing fireworks. Called for a ban on ivory trade and support for employment and support allowance recipients.

Emphasised the importance of community organisations, highlighting specific examples such as Age UK, Black Country Food Bank, and local parks. He expressed concern over unauthorised Traveller camps causing disruption and criminal damage. Proposed practical solutions for managing these camps while respecting human rights. Called for progress on an enterprise zone in his constituency and the extension of the metro network. Highlighted educational challenges in the Black Country and advocated for innovative school partnerships to improve performance.

Expressed deep concern over the negative impact of the proposed national funding formula on schools in Cheshire East. She highlighted that despite previous meetings and petitions, the announcement last week worsened their situation with reductions rather than increases. The headteachers have warned about significant staff cuts, reduced curriculum offerings, and potential closure of sixth forms to cope with financial pressures.

Responded to the Christmas Adjournment debate by thanking Crisis for their work, acknowledging the Labour Government's efforts on rough sleeping, praising Mary Glindon for her advocacy in North Tyneside, expressing concerns about ageing rail infrastructure between Barrow and Preston, highlighting retail workers' challenges during Christmas, condemning fracking in Lancashire, endorsing Christian Matheson’s call against post-truth politics, urging road improvements including the A585 for Fleetwood, supporting Lyn Brown's efforts on hysteroscopies, addressing issues faced by ex-service personnel, reflecting on persecuted Christians worldwide and referencing 1 John 4:4 as a message of comfort, discussing the impact of DWP assessments and Ken Loach’s film 'I, Daniel Blake', remembering bereaved constituents through local hospice work, acknowledging Sea View Street in Cleethorpes while praising Fleetwood's success at British high street awards, condemning hate speech on social media including a reported death threat on Facebook, raising issues such as cyber-bullying, police funding formula, diabetes, Yemen, and celebrating diverse cultural backgrounds.

Commends contributions from various MPs including those on homelessness, drug deaths, fire safety in schools, digitisation of the tax system, illicit tobacco, train infrastructure issues, business support, Ahmadiyya community support, local difficulties, European Union concerns, MetroBus scheme, health issues, UK soldiers' legal support, religious freedom, Department for Work and Pensions assessments, Prince's Trust, pier investment in Cleethorpes, social media abuse, anti-Semitism, cyberbullying, Yemen crisis, small businesses, ivory trade, volunteer work encouragement, school funding.

Praised for his work on the Homelessness Reduction Bill and collaboration with faith groups.

Highlighted drug deaths reaching record levels and emphasised importance of treatment for illegal narcotics addiction. Also discussed fire safety in schools.

Discussed digitisation of the tax system, costs to entrepreneurs, and proposed a pilot scheme with Federation of Small Businesses' estimation as input.

Addressed dangers of illicit tobacco, its impact on health and youth access.

Talked about train infrastructure issues in his area, ongoing major investment plans, and proposed his constituency as a digital signalling trial area.

Acknowledged her music video and highlighted importance of businesses in the economy. Mentioned John Lewis company and Ahmadiyya community support.

Discussed local difficulties in his area, being a strong voice for constituents.

Expressed concerns about the European Union's future and assured faith in UK’s outward-looking approach.

Discussed MetroBus scheme, its congestion impact, and meetings with officials. Praised his son joining armed forces.

Spoke about health issues, patient pain during procedures, and arthritis research.

Discussed legal support for UK soldiers involved in investigations related to Northern Ireland.

Expressed love for Christmas, religious invocation, and work on freedom of religion and persecuted Christians.

Addressed Department for Work and Pensions assessments.

Mentioned losing his mother at 104, Prince's Trust work, and various issues in his constituency.

Spoke about pier investment in Cleethorpes and requested government support for the area.

Discussed social media abuse, Home Affairs Committee report on anti-Semitism, and Chief Superintendent Tunstall’s retirement.

Talked about cyberbullying campaign, loss of Brandon Singh Rayat, Yemen crisis, Leicester football club, and mince pies.

Spoke about small businesses in his constituency, ivory trade issues in Africa.

Highlighted volunteer work encouragement by companies and visited every school in his constituency.

Discussed importance of school funding for education.