Commons Sense

House of Commons · Ministers' Questions

Leasehold Reform

Monday 5 June 2023 · 5 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 5 Not answered 0

Key points

  • Minister states there has been no dither and delay, highlighting actions taken to cap ground rents and introduce more protections for leaseholders.
  • Minister acknowledges concerns raised by Nickie Aiken about transparency and cost issues, noting complexity of the system and Labour's inaction during their time in government.
  • Minister commits to bringing forward further legislation for leasehold reform, noting a significant decrease in newbuild leasehold houses since the 2017 ban.

Topics (select to filter)

Questions & Answers

Q1 Meg Hillier Labour (Co-op) Hackney South and Shoreditch
Housing
Context

Residents in Hackney are frustrated by their freeholders' actions, demanding commonhold. The government has made repeated promises but no action.

Question

I met some residents who are leaseholders facing frustration due to their freeholder's actions and want commonhold. Despite manifesto commitments since 2019 and yearly promises from Secretaries of State, we have seen nothing from this Government. Why is there dither and delay?

Answer from Rachel Maclean

I do not agree that there has been dither and delay. We have capped ground rents for many leaseholders, committed to better protecting leaseholders from unreasonable costs, extending freehold benefits to more homeowners, and introducing more legislation within this Parliament.

Partly answered

Not addressed: The specific ask about the reason for delay was not addressed with a concrete timeline or action plan.

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Q2 Nickie Aiken
Housing Energy
Context

Residents in Rathbone Square are experiencing high costs and lack of transparency with their freeholders, WestInvest and Deka. The situation is affecting affordable housing residents disproportionately.

Question

The leaseholders from Rathbone Square and their affordable housing neighbours at 14 Newman Street face issues with their co-owners, WestInvest and Deka, and managing agents, CBRE. There is no transparency and the affordable housing residents are charged five times more for energy. Does my right hon. Friend agree that a complete shake-up of leasehold reform and property management is needed?

Answer from Rachel Maclean

Yes, I thank my hon. Friend for bringing these concerns to the House. We are determined to reform this system. It is complex but we note that Labour had 13 years in government without action on leasehold reforms.

Partly answered

Not addressed: The specific ask about full shake-up was not directly answered with a commitment or timeline.

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Q3 Rachael Maskell Labour (Co-op) York Central
Housing
Context

Most countries have banned leaseholds but York sees new developments with leasehold arrangements, charging residents thousands of pounds annually. The commonhold system has been long awaited.

Question

Every country except the UK bans leaseholds; in York, almost every development uses leasehold, extracting significant fees from residents making them trapped. When will the Government bring forward commonhold reforms?

Answer from Rachel Maclean

Since banning sale of newbuild leasehold houses in 2017, the number of such houses has decreased significantly. In 2020, only 1.2% were registered as leasehold compared to 17%. We need further legislation and will bring it forward.

Partly answered

Not addressed: The specific ask about legislating commonhold was not addressed with a concrete timeline or bill name.

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Q4 Duncan Baker
Parliamentary Procedure
Context

After 21 years of no reform, there is a demand for the leasehold reform bill to be introduced in the next King's Speech.

Question

Can the Minister clarify if this is a priority and whether the leasehold reform Bill will come forward in the next King's Speech?

Answer from Rachel Maclean

I cannot pre-empt what is in the King's Speech. However, I stand at this Dispatch Box and strongly commit to bringing forward comprehensive reforms as previously stated.

Partly answered

Not addressed: The specific ask about introduction in the next King's Speech was not confirmed with a direct yes or no.

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Q5 Matthew Pennycook Lab Greenwich and Woolwich
Parliamentary Procedure
Context

The government claims there has been no U-turn on leasehold reform, refusing to commit to a fundamental reform package expected by leaseholders.

Question

Before the recess, the Minister claimed no Government U-turn on leasehold reform and refused to commit to comprehensive reform. Will the Government legislate for all Law Commission's recommendations before this Parliament—yes or no?

Answer from Rachel Maclean

We will bring forward comprehensive reforms as promised. We have started and will continue to do so, unlike the Labour Government which did nothing in 13 years.

Partly answered

Not addressed: The specific ask about legislating all Law Commission recommendations was not directly answered with a commitment or timeline.

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