Key Facts

• Paula Higgins is the founder and CEO of HomeOwners Alliance.
• Sue Phillips is a leaseholder and founder of Shared Ownership Resources.
• Bob Smytherman is chairman of the Federation of Private Residents’ Associations.
• Shared owners face issues such as less security of tenure compared to private leaseholders.
• Shared owners are liable for possession with no reimbursement of invested equity if they fall behind on payments.
• Housing associations should ensure transparency in marketing practices regarding shared ownership liabilities.
• The Government's programme has failed to recognize the impact on financially vulnerable households.
• Shared owners often believe they have rights similar to other leaseholders, which is not always true due to short leases.
• There is a moral argument for statutory right to lease extension for those sold short leases.
• The Government committed to requiring freeholders and managing agents to provide leasehold information at the point of sale within a defined time limit and maximum cost, but this is not included in the current Bill.
• Estate agents are supposed to provide basic up-front information about whether a property is leasehold or freehold, but only half comply with this obligation according to Paula Higgins' report on leasehold.
• There is a need for better regulation of managing agents and housing associations promoting shared ownership to ensure they provide accurate upfront information.
• The current lack of regulation leads to disputes due to hidden information by managing agents.
• The Property Institute represents about 50% of property managers of leasehold property.
• There is a need for redress mechanisms when there are disputes with property managers or landlords.
• The witnesses are Professor Andrew Steven from the University of Edinburgh.
• Professor Christopher Hodges is an emeritus professor at the Centre for Socio-Legal Studies at the University of Oxford.
• The session will continue until 12:40 pm.
• Professor Hodges supports the Law Commission's recommendations on commonhold implementation.
• Property law moves slowly, and there is a need for change management to transition effectively.
• Non-litigation costs under clause 12 may deter leaseholders from extending their leases or acquiring freeholds.
• The Tenements (Scotland) Act 2004 addresses tenement structure.
• In Scotland, there are issues regarding money for repairs to flatted properties and owner engagement.
• Professor Hodges suggests modernizing and simplifying the system comprehensively.
• Clive Efford is discussing the Leasehold and Freehold Reform Bill.
• Professor Hodges supports the regulation of property agents working group reforms as outlined by Lord Best's RoPA.
• Efford suggests cutting and pasting relevant regulatory bits from the Building Safety Act 2022 to regulate private managing agents.
• Professor Hodges chaired the Post Office Horizon compensation board advising Ministers in the past few weeks.
• The Law Commission concluded that any financial gain for landlords will be at the expense of leaseholders, with their interests being diametrically opposed.
• In Scotland, since 2011 there has been legislation regulating managing agents handling insurance of blocks.
• The organisation's report “Leaseholds—Time for a change?” was published in 1984.
• There are over 4 million leasehold properties in the UK.
• Property prices being too high affects affordability irrespective of tenure.
• Managing agents should be regulated.
• Fees and service charges need to be made clear to borrowers.
• Properties below 11 metres are excluded from remediation provisions.
• The session is concluded due to time constraints.
• The committee will reconvene at 2 pm in the Boothroyd Room.
• Witnesses are thanked on behalf of the Committee.