Leasehold Reform 2026-02-23

2026-02-23

TAGS
Response quality

Questions & Answers

Q1 Partial Answer
Lee Dillon Lib Dem
Newbury
Context
Leaseholders face significant financial challenges, including rising service charges and difficulties in challenging excessive costs.
What steps he is taking to support leaseholders. My constituents are struggling with escalating service charges and unfair costs, making their properties unsellable. They need clear transparency, penalties for non-disclosure, and a faster way to challenge excessive charges without tribunals.
We published the draft Commonhold and Leasehold Reform Bill on 27 January, marking the beginning of the end for the feudal leasehold system. We are analysing responses to our consultation on strengthening protections over service charges and services. The Government recognise the financial strain rising service charges place on leaseholders.
Assessment & feedback
Did not specify measures to require itemised transparency, penalise non-disclosure, or create a faster challenge method without tribunals.
Response accuracy
Q2 Partial Answer
Mohammad Yasin Lab
Bedford
Context
Rising service charges are putting financial pressure on many leaseholders, with some facing increases of up to 80%. This is causing distress as properties become unsellable due to high costs.
With service charge inflation rising by 50% and leaseholders paying for defects caused by poor construction, will the Secretary of State strengthen the draft Commonhold and Leasehold Reform Bill to require fully itemised transparency in service charges, penalise landlords refusing disclosure, and create a faster, cheaper way to challenge excessive charges without a tribunal?
The Government recognise the financial strain rising service charges place on leaseholders. We published a consultation on 4 July last year proposing increased transparency of service charges and scrapping the presumption that leaseholders pay their landlord's legal costs, thereby removing a significant barrier to challenging poor practice. The consultation closed on 26 September; we are analysing responses.
Assessment & feedback
Did not specify measures for full transparency in service charges or penalties for non-disclosure by landlords.
Response accuracy
Q3 Partial Answer
Mary Glindon Lab
Newcastle upon Tyne East and Wallsend
Context
Leaseholders in Newcastle are facing high service charges, leading to financial strain and difficulty selling properties.
Leaseholders contact me regularly about extortionate service charges that make their properties unsellable. Is the Secretary of State confident that without directly limiting their rate of increase, the Government's reforms will address unreasonable charges making properties unsellable?
We are determined to take action to address unfair and unjustified charges. We are committed to implementing the measures in the Leasehold and Freehold Reform Act 2024 as quickly as possible.
Assessment & feedback
Did not provide specifics on addressing unreasonable leasehold charges without limiting their rate of increase.
Response accuracy
Q4 Partial Answer
Sadik Al-Hassan Lab
North Somerset
Context
Residents living in leasehold properties managed by FirstPort report persistent failures, poor communication, and high service charges.
Will the Secretary of State confirm that the Government's leasehold reforms will go further by introducing robust, enforceable regulation of service charges and professionalising property management companies such as FirstPort so they can be held accountable for poor practices?
The Government are committed to protecting leaseholders from abuse and poor service at the hands of unscrupulous managing agents. We consulted on mandatory qualifications for managing agents last year, and we are analysing responses right now.
Assessment & feedback
Did not confirm whether robust regulation will be introduced to hold property management companies accountable.
Response accuracy
Q5 Partial Answer
Apsana Begum Lab
Poplar and Limehouse
Context
Leaseholders in Poplar and Limehouse are facing significant bills from the Building Safety Regulator, making them financially vulnerable.
Will the Minister outline how upcoming legislation will clarify what counts as proportionate and/or reasonable costs that fall on to leaseholders in relation to the BSR's work?
We are seeing improvements in the performance of the Building Safety Regulator, but unfair costs should not fall on leaseholders. If helpful, I will arrange a meeting between her and the relevant Minister.
Assessment & feedback
Changed subject to offer a meeting rather than addressing the issue of clarifying responsibilities for costs related to BSR's work.
Response accuracy
Q6 Partial Answer
Paul Waugh Lab Co-op
Rochdale
Context
Homeowners in Rochdale are subject to high management company fees with little or no service, making them financially vulnerable.
Will the Secretary of State set out how he plans to help current homeowners avoid rip-off charges from estate management companies?
The Housing Minister is looking forward to meeting my hon. Friend and his constituents next week. HorNets have been strong campaigners for homeowners' rights, and I welcome their engagement.
Assessment & feedback
Changed subject to discuss an upcoming meeting with the Minister rather than providing a plan to assist existing homeowners in avoiding fleecehold practices.
Response accuracy
Q7 Partial Answer
Lee Dillon Lib Dem
Newbury
Context
The question arises from persistent issues faced by leaseholders due to inadequate management agent regulation.
I thank the Secretary of State for his response and welcome the support being given to leaseholders; however, many of the problems they face could be addressed through stronger regulation of managing agents. Persistent failings by companies such as FirstPort continue to fill my inbox. In Newbury, we have a block of flats where a lift has been out of order for two years, and one constituent told me that, because it was broken, her son had to carry her husband down the stairs when he moved into a care home. No family should ever have to face that. Will the Secretary of State outline what steps the Government have taken to strengthen the regulation of managing agents and ensure that they are properly accountable to residents, who pay for their services?
I recognise what the hon. Member says about FirstPort because Members across the whole House have been raising similar concerns for a very long time. He will be aware that we launched a consultation last summer that will include looking at how we can better and more tightly regulate managing agents so that leaseholders are not subject to the kind of abuses that he describes.
Assessment & feedback
The answer did not outline specific steps taken to strengthen regulation, only mentioned a consultation is ongoing.
Under Review
Response accuracy
Q8 Partial Answer
Manuela Perteghella Lib Dem
Stratford-on-Avon
Context
The question addresses the issue of new build estates where roads and open spaces are not promptly adopted, leading to additional management charges for residents.
Many of my constituents live on new build estates where the roads and open spaces have never been adopted. Years after moving in, they are still paying private management charges on top of their council tax for basic infrastructure that homeowners should expect the council to maintain. Does the Secretary of State recognise that this gap between planning approval and adoption is fuelling the fleecehold scandal, and will the Government act to ensure that developers complete roads to adoptable standards and local authorities are supported to adopt them promptly?
The hon. Member is right to point out the abuses of fleecehold and how disturbing and worrying this can be for the people living on these estates. The Government launched two consultations in December precisely so that we can properly understand and take action to prevent the kind of abuses that she describes.
Assessment & feedback
The answer did not specify any concrete actions or timelines, only referenced ongoing consultations.
Under Review
Response accuracy
Q9 Partial Answer
Alex Easton Ind
North Down
Context
The question pertains to the potential introduction of a mandatory standard service charge statement for leaseholders to enhance transparency.
Have the Government made an assessment of the potential merits of introducing a mandatory standard service charge statement for leaseholders to ensure a clearer breakdown of costs and improve transparency in the administration of service charges?
I recognise the situation that the hon. Member describes. We have launched the consultations to cover the circumstances he describes, precisely so that we can end that kind of practice.
Assessment & feedback
The answer did not provide a specific assessment or commitment, only referenced ongoing consultations.
Under Review
Response accuracy
Q10 Direct Answer
Wera Hobhouse Lib Dem
Bath
Context
The question is about protecting leaseholders from unreasonable ground rent increases.
These sharp practices are not down to just one management company—a lot of companies are at it. A leaseholder constituent wrote to me to say he feels “abandoned and angry”. His property is leaking, but the freeholder is not interested in helping, and his ground rent will double in 2030. Can the Secretary of State reassure me that my leaseholder constituent will be protected from these unreasonable charges in the future?
I hope the hon. Lady's constituent will be pleased to learn that the reforms we have announced as part of the draft Commonhold and Leasehold Reform Bill, launched recently by the Minister for Housing and Planning, will include capping ground rents so that that kind of abuse cannot happen in future.
Assessment & feedback
Response accuracy
Q11 Partial Answer
Shockat Adam Ind
Leicester South
Context
The question concerns a sharp increase in service charges and the need for greater transparency.
I refer Members to my entry on the Register of Members' Financial Interests. An acute increase in service charges of 78% has knocked the residents of Phoenix House in my constituency. The council is the freeholder, and it has overseen a complex arrangement with a private head leaseholder and various commercial managing agents below it. Due to the complexities of these arrangements, the residents have no idea where this 78% increase has come from. Will the Minister commit to introducing a duty of candour so that leaseholders know exactly what they are paying for, and will he further consider a threshold for acute service charge increases?
The hon. Gentleman will have been able to make those points through the consultation, which we launched in order to get to a position where we can simplify the system so that leaseholders know what charges they are being asked to pay and what services they are receiving for them, and to give them greater powers to challenge unfair practices of the kind he has just described.
Assessment & feedback
The answer did not commit to introducing a duty of candour or setting thresholds, only referenced ongoing consultations.
Under Review
Response accuracy
Q12 Partial Answer
David Simmonds Con
Ruislip, Northwood and Pinner
Context
The question is about the timeline for enacting legislation to address issues in leasehold and freehold systems.
According to the Government's own statistics, 84% of respondents to their consultation said they felt that the system for challenging unfair charges for managing agents and other lease arrangements was not fit for purpose. The Conservatives agree—that is why we legislated to address this in the Leasehold and Freehold Reform Act 2024. I appreciate that the Secretary of State has had a few distractions recently, but he has told the House that he is committed to addressing this matter. Can he tell all our leaseholder constituents by when the Government will enact that legislation, which we passed with his party's support?
Of course, nothing is going to distract me from focusing on the needs of leaseholders, and we remain fully committed to ensuring that the provisions and powers outlined in the Leasehold and Freehold Reform Act are brought into force as soon as possible. It is important for us to go through the technical detail that is covered by the consultation, but we will bring forward those proposals in due course and as quickly as possible.
Assessment & feedback
Under Review
Response accuracy
Q13 Partial Answer
Gideon Amos Lib Dem
Taunton and Wellington
Context
The question addresses the disappointment of leaseholders regarding draft legislation that does not meet their expectations.
Many of the 5 million leaseholders were looking forward to being freed from the feudal leasehold system until they read the draft Bill, which left many disappointed. There is no restriction on the development value that leaseholders are going to be charged and no broadening of the mixed-use blocks that will be eligible for enfranchisement, while leaseholders will continue to pay the legal fees of landlords, and service charges are still not being capped. Given the commitments in the Labour manifesto and the King's Speech to enact these recommendations from the Law Commission, should the Government not be more courageous, take on the landlords and give leaseholders proper rights to enfranchise, as they promised?
I agree with the sentiment of the hon. Gentleman's question, but unfortunately he has a number of his facts wrong; if he would like to put those details in a letter, I would be happy to respond and bring him up to speed. We are, for instance, seeking to end the practice of leaseholders being required to pay their landlords' legal fees. This is the biggest reform of leasehold in a thousand years. I hope that the hon. Gentleman writes to me and, after I respond, that he will be able to give the reforms his full support.
Assessment & feedback
Dispute Facts
Response accuracy
Q14 Partial Answer
Gideon Amos Lib Dem
Taunton and Wellington
Context
The Law Commission reforms are being enacted without a specified date for the Bill. Additionally, hundreds of thousands of leaseholders in buildings under 11 metres tall with unsafe cladding are not eligible for the Building Safety Fund.
The Law Commission reforms are being enacted and there is no date yet for a Bill to be brought forward. I hope that the Secretary of State will provide one. Moving on to leaseholders who are still living with unsafe cladding and building defects, hundreds of thousands of people in buildings under 11 metres tall are living with cladding that is recognised as highly flammable, but are not eligible for the Building Safety Fund. Is it not time that they were given the peace of mind and the safety they thought their home was providing them?
We are supporting these situations on a case-by-case basis, but I would be more than happy to arrange a meeting for the hon. Gentleman with the Minister for Building Safety, if that would be helpful to him.
Assessment & feedback
The answer did not provide a specific date for the Bill and did not commit to providing assistance from the Building Safety Fund to leaseholders in buildings under 11 metres tall.
Response accuracy