Commons Sense

House of Commons · Ministers' Questions

Leaseholders: Protection from Unfair Practices

Monday 19 July 2021 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 2 Partly answered 1 Not answered 0

Key points

  • Ministerial Department is taking steps to protect leaseholders from unfair practices through announced reforms.
  • Legislation restricting ground rents to zero for future leases is currently with the House of Lords and will be reviewed in the autumn.
  • Building Safety Bill includes a new levy on high-rise residential buildings to explore alternative ways to meet remediation costs if a developer becomes insolvent.

Topics (select to filter)

Questions & Answers

Q1 Mark Logan
Housing
Context

Unfair practices in the housing market have led to substantial savings being needed by leaseholders, prompting legislative action.

Question

What steps his Department is taking to help protect leaseholders from unfair practices. Unfair practices have no place and need to be ended. Are there specific reforms announced and what is their status?

Answer from Eddie Hughes

Unfair practices have no place and we are committed to ending them. We announced reforms in January resulting in substantial savings for leaseholders, and legislation restricting ground rents to zero for future leases is currently with their lordships and will come to this House in the autumn.

Answered
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Q2 Mark Logan
Housing
Context

Leaseholders need protection under the Building Safety Bill if property developers fail in their obligations, especially if the company becomes insolvent.

Question

Will the Building Safety Bill protect leaseholders if a developer fails to complete its work diligently and becomes insolvent due to malpractice? What protections are included for leaseholders?

Answer from Eddie Hughes

The new levy on high-rise residential buildings, Clause 124 of the Bill provides legal requirements for exploring alternative ways to meet remediation costs. If that does not happen, leaseholders can challenge costs in court. Over £5 billion has been announced towards remediation work.

Answered
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Q3 Mike Amesbury Lab
Housing
Context

Tracy and many others in Mike Amesbury's constituency face unjust feudal charges, prompting a Labour amendment to extend the bill's ban to all existing leaseholders.

Question

Will the Minister commit to supporting Labour's amendment to extend the ground rent ban to existing leaseholders as well? What protections are being offered now?

Answer from Eddie Hughes

96% of high-rise buildings with unsafe cladding have remediated or work under way. The Government are taking action for those in a difficult position through the Building Safety Bill which provides legal requirements for building owners to explore alternative ways to meet future remediation costs.

Partly answered

Not addressed: The Minister did not commit to supporting Labour's amendment to extend ground rent ban to existing leaseholders

How: Proportionate Response, Already Taking Action

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