Freehold and Leasehold Reform — [Mr Virendra Sharma in the Chair]

Derek Thomas highlighted the widespread issue of leasehold property management, emphasizing the need for reform to prevent further distress among homeowners. He cited a constituent named Stephen who is unsure whether to extend his lease due to uncertainty about marriage value being abolished. Another constituent, Amy, faces difficulties selling her leasehold property because of safety defects and guidance from the Royal Institution of Chartered Surveyors that makes it unmortgageable. Derek Thomas urged the Government to push forward with reforms, address developer responsibilities under the Building Safety Act 2022, and ensure timely remediation work.

Ms Fiona Bruce expressed deep injustice on behalf of constituents affected by property reform issues. She highlighted the lack of statutory rights for freeholders to challenge unreasonable service charges and maintenance standards, as contrasted with leaseholders' rights. She mentioned specific instances of residents in Bath Vale facing unreasonable charges such as £1,500 for insurance administration and water supply charges without actual usage. Requested the Minister to discuss with the residents mentioned in her debates.

Mr Corbyn expressed concern about the stress and financial burden faced by leaseholders due to excessive service charges, lack of control over management decisions, and threats of legal action for late payments. He provided examples of residents being charged excessively for minor works and electricity usage, highlighting a need for substantial investigation and reform in the leasehold system. Noted a challenge in legal processes or costs preventing residents from making justified challenges, despite government intentions.

Jim Shannon highlighted the importance of leasehold reform in Northern Ireland, emphasizing that over 4,000 homeowners bought property under right-to-buy legislation but struggle to resell due to short leases. He pointed out that people are less likely to purchase homes with shorter leaseholds because of high ground rent and difficulty obtaining mortgages. Shannon also mentioned a Government survey finding that 70% of leaseholders regret buying leasehold properties, advocating for fair fees for services and urging the Minister to engage with Northern Ireland's Department for Communities.

Mr Madders expressed concerns about the exploitation of homeowners through estate management fees, arguing that these fees are unjustified and should be abolished. He cited examples of estates where residents pay for services that others who do not reside there benefit from without contributing financially. Mr Madders also highlighted issues with ground rent increases and called for comprehensive reforms to protect leaseholders.

Matthew Pennycook highlighted the poor service and abuses faced by leaseholders at the hands of managing agents. He called for action to protect leaseholders from exploitation, noting that relying on industry self-regulation is inadequate. Pennycook urged the Government to implement recommendations from a 2019 working group report on regulating property agents. He also expressed concern over the potential scaling back of commitments made by the government regarding comprehensive reform of the leasehold system.