Commons Sense

House of Commons · Ministers' Questions

Leasehold Reform

Monday 20 January 2025 · 6 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 6 Not answered 0

Key points

  • Minister acknowledges constituents face issues like excessive service charges and unfair ground rent.
  • Government plans to introduce primary legislation to fix flaws in the 2024 Act, particularly regarding enfranchisement.
  • Minister intends to strengthen regulation of managing agents based on Lord Best's 2019 report recommendations.

Topics (select to filter)

Questions & Answers

Q1 Neil Duncan-Jordan Lab Poole
Housing
Context

Constituents in Poole are facing issues with leasehold properties, including excessive service charges and unfair ground rent.

Question

Every week my constituents contact me with concerns about their leasehold properties. They face problems such as excessive service charges, unfair ground rent, and exit fees. Can the Minister reassure them that these issues will be addressed urgently?

Answer from The Minister for Housing and Planning (Matthew Pennycook)

I sympathise with my hon. Friend’s constituents who face issues such as excessive service charges, putting them under immense strain. We will consult on improving service charge transparency and making it easier to challenge unreasonable increases, aiming to implement these measures quickly.

Partly answered

Not addressed: Did not provide a specific timeline or commitment beyond consulting and implementing measures soon.

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Q2 Sarah Hall Labour (Co-op) Warrington South
Context

Many constituents cannot afford to buy their freeholds under current legislation, making it difficult for them to enfranchise.

Question

My constituents struggle to afford buying their freeholds. When will the Government introduce legislation to make it cheaper and easier for leaseholders to enfranchise?

Answer from The Minister for Housing and Planning (Matthew Pennycook)

We discovered flaws in the 2024 Act preventing certain provisions, including enfranchisement valuations, from operating as intended. We need to fix these flaws through primary legislation at the earliest opportunity.

Partly answered

Not addressed: Did not provide a specific timeline for when the necessary amendments will be made.

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Q3 Anna Dixon Lab Shipley
Housing
Context

Residents in a retirement complex face high service charges that have risen above inflation, making it difficult for them to afford housing costs.

Question

I met with the managing director of FirstPort and raised concerns about residents facing extortionate service charges. Does the Minister agree that stronger regulation is needed to protect leaseholders from these unaffordable costs?

Answer from The Minister for Housing and Planning (Matthew Pennycook)

We are aware of the poor quality service provided by some managing agents and intend to strengthen their regulation, driving up standards based on Lord Best’s 2019 report recommendations.

Partly answered

Not addressed: Did not provide a specific timeline or commitment for implementing stronger regulations.

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Q4 Joshua Reynolds Lib Dem Maidenhead
Housing
Context

Residents in a housing development with 99-year leases are facing high charges to extend their lease, making it difficult for them to sell their flats.

Question

Residents of a housing development face £15,000 to £25,000 fees to extend their leases. What will the Minister do directly to help these residents?

Answer from The Minister for Housing and Planning (Matthew Pennycook)

Provisions in the 2024 Act can assist, but detailed secondary legislation is required. We are working at pace to implement these provisions and would be happy to discuss further with the hon. Gentleman.

Partly answered

Not addressed: Did not provide a specific measure or timeline for assistance to residents facing lease extension issues.

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Q5 Al Pinkerton Lib Dem Surrey Heath
Housing
Context

Residents in a retirement community face high service charges, withheld invoices, and excessive insurance charges.

Question

Residents of Mytchett Heath report regular withholding of invoices, excessive insurance charges, and significant maintenance costs without rationale. What is the Minister doing to hold not-for-profit companies accountable for these issues?

Answer from The Minister for Housing and Planning (Matthew Pennycook)

We intend to implement service charge transparency provisions of the 2024 Act, enabling easier challenges to unreasonable increases. Complaints can be made to the housing ombudsman, and I am willing to hear more about this case.

Partly answered

Not addressed: Did not provide a specific commitment or timeline for meeting with residents and addressing their concerns.

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Q6 Charlie Dewhirst Con Bridlington and The Wolds
Housing
Context

Freeholders in the Wolds View development are trapped at the mercy of an unaccountable management company.

Question

Residents of the Wolds View development feel trapped by unaccountable management companies. Will the Minister legislate to protect freeholders from unfair charges and provide assistance?

Answer from The Minister for Housing and Planning (Matthew Pennycook)

We are committed to ending fleecehold injustice and will consult next year on legislative options. We aim to implement consumer protection provisions quickly as part of the 2024 Act’s new measures.

Partly answered

Not addressed: Did not provide a specific timeline or commitment for introducing legislation protecting freeholders.

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