Leasehold System 2025-10-13
2025-10-13
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Questions & Answers
Q1
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Leaseholders in Wolverhampton North East face unfair practices such as management fees tripling over a few years, stretching families financially. The constituency includes responsible agents like L&A Lettings.
Leaseholders in my constituency face unfair practices such as management fees tripling in as many years, stretching families beyond their means. Yet there are also a great number of responsible agents, including L&A Lettings, based in Ashmore Park. Can the Minister set out how the Government’s leasehold reform will strike the right balance, protecting leaseholders from poor practice without overburdening responsible agents, who already provide a transparent and fair service?
We know that there are good managing agents who work hard to ensure that the residents they are responsible for are safe and secure and that homes are properly looked after, but we also know that far too many leaseholders suffer from poor service at the hands of unscrupulous managing agents. In our recent consultation on strengthening leaseholder protections over charges and services, we consulted on powers to appoint a manager or replace a managing agent as well as on mandatory professional qualifications for managing agents in England. We think that those proposals strike the right balance, but we are analysing all the feedback we receive to that consultation.
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Q2
Partial Answer
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In Bury St Edmunds and Stowmarket, leaseholders are facing soaring service charges and falling standards. Some have considered withholding payment due to these issues.
I thank the Minister for his answer to the previous question. In my constituency of Bury St Edmunds and Stowmarket, leaseholders are facing soaring service charges and falling standards. Some have told me that they are considering withholding payment. Does my hon. Friend agree that much greater regulation of property managers is urgently needed to ensure accountability and standards?
My hon. Friend highlights that, as many of us know, the reality of home ownership for so many leaseholders falls far short of the dream. We absolutely agree that we need to strengthen the regulation of managing agents, to drive up the standard of their service. We are looking again at Lord Best’s 2019 report on regulating the property agent sector, particularly in the light of the recommendations in the final Grenfell inquiry report. We have set out a number of specific proposals in the consultation that I referred to in my previous answer.
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Q3
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Some freeholders find themselves in a leasehold-like situation with unfair charges and poor infrastructure management on private housing estates.
As the Minister will be aware, some freeholders find themselves trapped in a leasehold-like situation: the wider estate that they live on is managed by a management company and not adopted by the local authority. They are fleeced in exactly the same way by exorbitant management charges, and there are often unadopted roads and poor sewerage. Will the Minister meet me to discuss how we can provide protections for freeholders who find themselves in that leasehold situation?
We remain committed to protecting residential freeholders on private and mixed-tenure housing estates from unfair charges of the type that the hon. Lady described. We will consult this year on implementing the 2024 Act’s new consumer protection provisions for the 1.75 million homes that are subject to those charges. We are committed to bringing those measures into force as quickly as possible.
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Q4
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In Stratford-on-Avon, thousands of residents live in so-called fleecehold developments with issues such as lack of transparency and poor maintenance of public spaces.
Thousands of my constituents in Stratford-on-Avon now live in so-called fleecehold developments, often with a lack of transparency in how service charges are set and a lack of maintenance of public open spaces, including drainage infrastructure. Will the Minister reassure my constituents that any leasehold reform will include tackling fleecehold and that the reforms will be applied retrospectively?
I can assure the hon. Lady that we will tackle the injustice of fleecehold as part of the ambitious changes that we intend to make to the leasehold system, with a view to bringing it to an end in this Parliament. The consumer protection provisions in the 2024 Act, which I have already mentioned, will ensure that homeowners who pay an estate management charge will have better access to the information that they need to challenge the reasonableness of charges at the first-tier tribunal.
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