Commons Sense

House of Commons · Ministers' Questions

Leasehold and Freehold Reform

Monday 9 January 2023 · 7 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 4 Not answered 0

Key points

  • Government committed to delivering a second phase of leasehold reform within this Parliament, making it easier for freeholders to challenge costs and appoint managers.
  • Measures brought forward will affect both new purchasers and existing leaseholders, ensuring reforms include residents of recently completed housing developments.
  • Estate management companies must be more accountable, and freeholders will be given rights to challenge costs and appoint managers, requiring private estate management companies to join a redress scheme.

Topics (select to filter)

Questions & Answers

Q1 Richard Fuller Con North Bedfordshire
Context

The question pertains to the rights of freeholders in comparison to leaseholders.

Question

I am concerned about the disparity between freeholders and leaseholders regarding management challenges. Will the government bring forward legislative proposals to give freeholders similar rights to challenge excessive fees and poor service by estate management companies?

Answer from Lucy Frazer

The Government are committed to building on the Leasehold Reform (Ground Rent) Act 2022 and delivering a second phase of leasehold reform within this Parliament, making it easier for freeholders to challenge costs and appoint a manager.

Partly answered

Not addressed: Specifically asked about reviewing property ombudsman terms but only addressed general improvements without confirming review.

How: Building On The Leasehold Reform Act, Making It Easier For Freeholders

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Q2 Mark Menzies Con
Housing
Context

Focus is on leaseholder issues in recent housing developments.

Question

While welcoming the steps taken, I ask about ensuring reforms include residents of recently completed housing developments. What specific actions will be taken to ensure these new occupants are covered?

Answer from Lucy Frazer

The measures we bring forward will affect both new purchasers and existing leaseholders, ensuring the reforms include those living on recently completed housing developments.

Answered
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Q3 Richard Fuller Con North Bedfordshire
Housing Local Government
Context

Local Councillors in North Bedfordshire are addressing unfair practices by estate management companies.

Question

My constituents, represented by local councillors, face excessive fees from estate management firms. Will the Minister review property ombudsman terms to make it easier for freeholders to challenge these unfair practices?

Answer from Lucy Frazer

Estate management companies must be more accountable and we will give freeholders rights to challenge costs and appoint managers, requiring private estate management companies to join a redress scheme.

Partly answered

Not addressed: Specifically asked about reviewing property ombudsman terms but only addressed general improvements without confirming review.

How: More Accountable, Challenging Costs

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Q4 Andrew Gwynne Ind Gorton and Denton
Housing Business Compliance
Context

Residents in some areas face scams related to chief rents, where property companies use questionnaires for home improvements to con residents into paying extra fees.

Question

Sharp practices are used by some property companies to scam residents with chief rent-related questionnaires. What specific actions is the Minister taking to tighten regulations on these scams?

Answer from Lucy Frazer

We are looking at the issue of freeholders paying charges for maintaining communal areas, known as 'fleecehold', but a precise update has not been provided.

Not addressed: Specifically asked about tightening up on scams and sharp practices but only mentioned looking into the issues without providing specifics.

How: Looking At

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Q5 Hilary Benn Lab Leeds South
Context

A constituent received a service charge bill for fire-stopping works, which they believe is not lawful under the Building Safety Act 2022.

Question

Under what circumstances can it be lawful to charge leaseholders for fixing fire safety defects? Given that residents think the Building Safety Act protects them from such charges, can this issue be clarified?

Answer from Lucy Frazer

We are taking steps under the Building Safety Act 2022 and will write to the right hon. Gentleman with specific details on his question.

Not addressed: Asked for clarification but referred to a written response instead of providing substantive information now.

How: Writing

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Q6 Peter Bottomley Con
Housing
Context

A proposal suggests making leaseholders parties to building insurance despite not having an interest in it.

Question

Will the Minister consider changing legislation to make leaseholders parties to the building insurance for which they pay premiums, as this is not currently thought of as their interest?

Answer from Lucy Frazer

We are bringing in legislation that will make it much easier for leaseholders to enfranchise their leases and I am already looking at the area mentioned regarding interest in building insurance.

Partly answered

Not addressed: Specifically asked about making leaseholders parties to building insurance but only stated looking into related areas without confirming consideration of the specific proposal.

How: Already Looking

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Q7 Justin Madders Lab Ellesmere Port and Bromborough
Housing
Context

Five years since a previous Secretary of State promised to liberate leaseholders from feudal practices.

Question

While acknowledging the Minister's warm words, can she confirm that legislation will be brought forward this year to address all existing problems faced by leaseholders?

Answer from Lucy Frazer

We will bring forward legislation in this Parliament for easier valuations, cheaper and quicker lease extensions, right to manage, and other measures.

Partly answered

Not addressed: Specifically asked about legislative timing but only addressed general intentions without confirming a timeline.

How: Bringing Forward Legislation

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