Leasehold Reform 2026-01-12
2026-01-12
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Response quality
Questions & Answers
Q1
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The Hillcrest estate in Highgate, with 84 years remaining on leases, seeks clarity on Government reforms to avoid the costs of extending leases under current law.
Leaseholders on the Hillcrest estate in my constituency have written to me because they have 84 years left on their leases. They are unsure whether they should wait for the government reforms—which they welcome—or proceed with lease extension now to avoid the costs of incurring marriage value. Their fear is that they will extend under the current law and then better terms will be brought in by new legislation. May I ask him urgently to provide further clarity on the timings of the proposed reforms?
I appreciate fully that leaseholders with leases approaching 80 years remaining want clarity on when the enfranchisement provisions in the 2024 Act will be brought into force. To bring those provisions into force, we need to not only consult on valuation rates but rectify through primary legislation the small number of serious flaws in the 2024 Act that the previous Government bequeathed to us. The latter is obviously a more challenging proposition than the former, but we intend to make the necessary fixes as soon as possible so that leaseholders can begin to benefit from the new valuation process.
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Assessment & feedback
Specific timing of implementation was not provided
Rectify Through Primary Legislation
Consult On Valuation Rates
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Q2
Partial Answer
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Over 700 constituents have written to Yuan Yang about high fees and unfair behavior from property management agents, specifically citing the case of Sunil.
More than 700 of my constituents living in new builds in and around Reading have written to me about high fees and unfair behaviour from property management agents. One constituent, called Sunil, said: “We are throwing our money down the drain to these crooks, and they know they can take advantage.” Will the Housing Minister meet me and my fellow Labour MPs working on this issue to discuss what more can be done to crack down on such awful behaviour from rogue agents such as FirstPort?
I am very glad to hear that my hon. Friend has engaged with those consultations, and I encourage all hon. Members from across the House to do the same. I am more than happy to meet a group of Labour colleagues to discuss the consultations and our proposals in more detail.
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Assessment & feedback
Specific actions against rogue agents were not detailed
Engage With Consultations
Discuss Proposals
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Q3
Partial Answer
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Residents of the Aykley Woods development are charged £15,000 annually for management company services on top of a scandalous £31,000 in running costs.
Residents of the Aykley Woods development in my constituency have recently been informed that collectively they will be charged £15,000 this year for the management company to run their estate of just over 270 homes, on top of a scandalous £31,000 just to cover the running costs of the management company itself. Does the Minister agree that it is long past time that we end the scandal of freeholders being locked into agreements with management companies and make local authority adoption the default for new builds?
The case that my hon. Friend draws the House’s attention to highlights the unfair charges that so many residential freeholders are subject to. As well as acting to reduce the prevalence of privately managed estates, which are the root cause of the problems experienced by residential freeholders, we are committed to implementing new consumer protections for homeowners on freehold estates.
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Assessment & feedback
Specific measures for local authority adoption were not provided
Reduce Prevalence Of Privately Managed Estates
Implement New Consumer Protections
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Q4
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Service charges are rising and quality of service is falling for many leaseholders, with the Act designed to put an end to such practices.
So many of my Gosport constituents are locked into lousy leaseholds, and are so tired of seeing service charges rise while the quality of service falls. Bills are often eye-watering, and are quite often completely opaque. As the Minister said, the Conservatives passed the Leasehold and Freehold Reform Act, which gave leaseholders more powers to better scrutinise and challenge those costs. However, on the Minister’s watch, implementation is painfully slow. Why the delay? When will leaseholders begin to see the benefits of legislation that was designed to put an end to a practice that he himself has described as “unfair and unreasonable”?
I fully appreciate the wish of leaseholders in the hon. Lady’s constituency and those across the country to see these reforms introduced. She is absolutely right that the 2024 Act included measures to enhance transparency around service charges, to make it easier for leaseholders to challenge unreasonable service charge increases. Last July, we consulted on how to introduce those measures.
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Assessment & feedback
Specific timeline for implementation was not provided
Consultation On Introducing Measures
Rectify Through Primary Legislation
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Q5
Partial Answer
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The Select Committee on Housing, Communities and Local Government is concerned about the feudal leasehold system and its impact on home ownership. The Minister has been discussing reforms to address this issue.
I thank the Minister for his answer. I know that he has been taking a lot of time to debate and look at the issue of leasehold, and he can see the cross-party concern on behalf of many constituents up and down the country on this big issue, as well as the support for tackling it. We on the Select Committee are ready to help him by making sure that the legislation is right, fit and proper. I just want to tease out a further answer from the Minister. Can he confirm for the House that he is still on track to ensure that we end the issue of leasehold and commonhold by the end of this Parliament?
I thank my hon. Friend, the Chair of the Select Committee for that question. We remain steadfast in our commitment to the promises in our manifesto to bring the feudal leasehold system to an end. Despite the noises off from the usual naysayers, the imminent publication of our ambitious draft commonhold and leasehold reform Bill will be the beginning of the end for that system, which has tainted the dream of home ownership for so many households across the country.
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Q6
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Residents of a retirement community called Mytchett Heath are experiencing high service charges and are concerned about the delay in leasehold reforms. Dr Pinkerton has previously written to the Minister regarding this issue.
May I take the Minister back to the circumstances of constituents who are living in retirement communities? I have a community of constituents who live at Mytchett Heath, owned by Cognatum Estates. They are experiencing very high service charges, and I have written to the Minister about that before. They are made nervous by talk of delay. They are often on a fixed income with fixed-income pensions. They are getting older, and they want to enjoy their retirement in peace. Can the Minister offer them any reassurance today?
The hon. Gentleman has written to me about that issue and he has, if I may politely say, generated a huge number of questions on it. We have met about it on one occasion, I think, and I am more than happy to have another conversation with him to try to get to the root of his concerns.
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Q7
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Leaseholders are concerned about the delay in publishing the draft commonhold and leasehold reform Bill. The Minister is asked to explain the reasons behind this delay.
Fully 5 million leaseholders were plunged into the dark before Christmas and thousands report feeling angry and abandoned. Why, then, are the Government choosing to delay their ending of the feudal leasehold system? Will they go further and follow the calls from Lib Dems and others to regulate property agents and to cap extortionate service charges?
I will answer the hon. Gentleman directly: the unforeseen delays in question, which meant that we could not publish the draft Bill before Christmas, relate to nothing more than the fact that some elements of policy and drafting are still being finalised. As I have said, this is a large, incredibly complex and technical Bill. The House would support getting it right in the first instance, if that means a delay of a few weeks.
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Q8
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Residents are concerned about the weakening of rules preventing development in areas at high flood risk. Gideon Amos asks how many homes will be affected by future flooding.
Leaseholders are being hit increasingly with flood risk and difficulty in getting insurance. Rockwell Green in my constituency has flooded twice in the last seven years. Why are the Government proposing to weaken the rules preventing development in areas of high flood risk, and how many homes will be affected in future by more flooding as a result?
We have not weakened protections against flooding. The draft of the national planning policy framework that is out for consultation remains clear that inappropriate development in areas at risk of flooding should be avoided by directing development away from areas at the highest risk. The consultation currently under way into the statutory consultee system retains the requirement for local authorities to notify the Secretary of State before approving developments that the Environment Agency has objected to. We are not weakening the protections in the way the hon. Member claims.
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