Building Safety Bill - New Clause 35

This amendment is crucial to prevent the financial collapse of building management companies from undermining essential safety measures. It would require developers and building owners to notify relevant authorities in cases of insolvency, thereby ensuring that residents' lives are not put at risk due to a lack of funding for necessary repairs or improvements.

Ms. Patel supported the amendments introduced by Mrs. Winterton, emphasising the need for accountability and transparency in estate management practices and expressing concern over rising service charges affecting first-time buyers in her constituency.

Intervened to question the term 'punitive to leaseholders', highlighting that changes could affect those who entered contracts as freeholders expecting certain values. He argued that it is a public policy decision involving the transfer of value from freeholders to leaseholders.

It is five years since we produced the Select Committee report on leasehold reform. I have an amendment—new clause 39—that I want to push to a vote, which says that before the sale of a freehold, the right of first refusal has to go to the existing leaseholder. It would give leaseholders that right and stop freeholders from evading legislation by passing properties around different organisations.

My hon. Friend is making an excellent speech. Does he agree that part of the problem is that some of the freeholders are based overseas, and it is extremely difficult for leaseholders to track them down?

Mr. Eustice argued that new clause 68 addresses a gap in the Bill concerning defective shared ownership agreements, which are neither true leasehold nor shared ownership arrangements. He provided examples of defects such as the lack of right to enfranchise and prohibitive ground rents, leading to residents being trapped in unmortgageable properties.

Supports new clause 5 to address landlord practices that extract money from homeowners, such as the scandal of leasehold houses and repeated doublings of ground rents. Highlights the importance of ensuring moneys are held in trust and the need for a tribunal discretion to waive minor procedural mistakes by leaseholders where it is reasonable.

Mr. O'Brien argues that the fleecehold model is inefficient, economically unjustified and causes significant distress to homeowners who face unexpected and unmanageable bills. He provides examples from his constituency where residents have been forced to spend excessive time and money fighting against unfair practices by management companies. He also mentions the need for a right-to-manage reform to empower residents to take control of their estates.

A huge number of new builds have been built within my constituency boundaries over the last months, leading to numerous difficulties for leaseholders. Issues such as shoddy repairs, skyrocketing service charges and insurance bills, poor landscaping, broken lifts, inadequate fire doors, lack of transparency, substandard living conditions, and financial threats are common... Amendment 14 would enable a maximum cost to be set for the provision of information to leaseholders.

In Romford, we have seen a huge increase in the number of flats and high-rise blocks being built over the last 20 years. This brings many problems with it, including those discussed today... I went to Rubicon Court, a fairly new development built only a few years ago, and was shocked—absolutely flabbergasted—to see how badly the residents are being looked after.

Argues for new clause 67 which seeks an independent evaluation on holding freeholders financially liable for long-lasting central communal heating failures. She emphasises the need to look at how to rectify situations where residents are left without essential services for months despite raising concerns with managing agents and freeholders.

Supports the Bill but believes it could go further. She introduces new clauses 13, 23 and 41 which aim to prohibit new leasehold homes within three months of Act passage, assess disadvantage suffered by existing leaseholders, and report on marriage value issues respectively.

Proposes new clause 24 to ensure that there is a duty holder responsible for managing asbestos risks in communal areas after property transfers. Highlights the current regime's effectiveness and the potential risks if responsibilities are not clearly defined post-transfer.

Supports the Government’s wish to overhaul the leasehold system but tables several amendments to improve the Bill. Discusses issues such as reducing the participation threshold for claiming the right to manage and addressing mixed-use buildings' eligibility criteria.

New clause 1 would give residents the power to take over estate management companies if they fail to respond or provide necessary services. This is essential for preventing fraudulent practices and ensuring that residents can benefit from shared assets like ground source heat pumps without additional costs.

Suggests that Opposition Members should not make these reforms a political issue and encourages engagement with the seriousness of the proposed changes. Supports new clause 42, which bans leasehold houses, though she is concerned about potential legal challenges. She raises concerns over retirement properties being excluded from the amendment and calls for a commonhold system to replace leasehold. Emphasises the need to address complex issues such as ground rents and forfeiture.

Expresses support for abolishing leasehold altogether, citing numerous examples of residents facing problems due to the system. Supports new clauses proposed by her colleague and wishes to see changes in local plans to make commonhold the default. Raises issues with service charges under consumer legislation and highlights a specific case at Essex Brewery where residents have been without hot water and heating for months. Proposes amendments to match consumer rights with leasehold legislation.

Supports measures to cap ground rent and improve fire safety remediation. Argues that current leasehold provisions trap constituents in unaffordable and unsellable properties, preventing them from progressing their lives. Emphasises impact of excessive service charges on affordability and security for leaseholders.

Supports Government amendments for quicker means of redress for leaseholder issues. Raises concerns over defective properties, poor maintenance, and lack of transparency from management companies like FirstPort. Calls for increased accountability and transparency in developer-management company contracts.

Welcomes the Bill for addressing frustrations expressed by leaseholders in his constituency. Highlights changes in the market where leaseholds are seen as opportunities to extract money from residents through poor management practices and excessive charges. Commends the legislation for balancing housing supply needs with protecting leaseholder rights, noting cases such as Pembroke Park where A2Dominion has failed to meet expectations despite improvements under a new CEO.

Gratefully acknowledges the inclusion of estate management charges in the Bill, which he sees as timely given recent findings by the Competition and Markets Authority. Proposes an amendment to prevent the proliferation of private management arrangements for new housing estates by prohibiting homeowners from being charged for services usually provided by local authorities. Expresses concern over the economic effects of transferring marriage value, advocating for a safer passage through his proposed amendment that would continue marriage value for leases below 80 years at the time of Act's passing but not for those established afterwards.

The speaker acknowledges contributions from various Members, highlighting the need for progress on leasehold reform. He emphasises that the Government has introduced measures to address the issue and is committed to further reforms. The speaker also discusses the importance of freehold estates getting clearer transparency.

Tabled new clause 25, which deals with an important issue regarding leasehold reform. The speaker encourages contributions to the consultation on this matter.

Spoke passionately about his new clauses 39 and 40, which aim to make the acquisition of freeholds easier. He emphasised the need for disincentives for freeholders not to respond or go slow.

Mentioned specific problems experienced by his constituents regarding leasehold issues, urging the speaker to meet him to discuss these matters in more detail.

Made useful points about Daejan Holdings and building safety. The speaker is keen to continue the discussion with the Government to understand any issues better.

Highlighted the huge inequity affecting individuals in individual blocks within their constituencies, emphasising the need for reform.