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Leasehold Reform
03 June 2025
Lead MP
Ruth Cadbury
Brentford and Isleworth
Lab
Responding Minister
Alex Norris
Tags
EconomyTaxation
Word Count: 4764
Other Contributors: 10
At a Glance
Ruth Cadbury raised concerns about leasehold reform in Westminster Hall. A government minister responded.
Key Requests to Government:
The Government needs to address the complex legalistic maze that many leaseholders are trapped in and work on fixing the current situation which allows for excessive service charges without clear value or transparency.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Many constituents have faced issues such as high service charges, rising building insurance, safety problems, unclear management contracts, and a lack of communication from management companies and freeholders. The common theme is a lack of control over these issues.
Alex Norris
Lab
Norris agrees with Paffey's concerns and assures him of ongoing discussions and the need for transparency in service charges. He also mentions plans to consult on reforms related to managing agents.
Hitchin
Welcomes the pace shown by the Government but urges for more substantive solutions at pace, including relief measures for existing leaseholders.
Chris McDonald
Lab
Stockton North
Updates the Minister on progress in Stockton North and highlights a lack of consumer choice due to market failure, leading people to enter into agreements with long-term negative consequences.
Jim Shannon
DUP
Strangford
Highlighted issues with developers, management companies, estate agents, and solicitors not informing new homebuyers about leasehold agreements and additional costs.
Richard Holden
Con
Basildon and Billericay
Asked about covering covenant issues under the freehold system, emphasizing the need for addressing unintended consequences of leasehold reforms.
Noah Law
Lab
St Austell and Newquay
Suggests that allowing residents greater control over their estates can ensure better value for services they need.
Peter Prinsley
Lab
Bury St Edmunds and Stowmarket
Agreed that service charges are an outrage and there should be a guarantee for provided services, indicating the need for transparency in billing.
Sarah Dyke
LD
Glastonbury and Somerton
Discussed the lack of transparency in leasehold management companies with a specific case in Wincanton where residents faced a 500% increase in charges without clear service delivery.
Tom Hayes
Lab
Bournemouth East
Hayes discusses defrauded constituents suffering from unfair management companies and welcomes the Labour Government’s actions against rogue managing agents, asking for a clear message to these entities.
Will Stone
Lab
Swindon North
Highlighted the issue of fleecehold, where residents pay astronomical fees without receiving corresponding services.
Government Response
Alex Norris
The Parliamentary Under-Secretary of State for Housing, Communities and Local Government
Government Response
Acknowledges the urgency of leasehold reform and outlines actions taken, including commencement of provisions in the Leasehold and Freehold Reform Act 2024. Plans further consultations on insurance commissions, service charges, litigation costs, valuation rates for enfranchisement premiums, and private estate management. A new era of commonhold as default tenure for new flats is committed to with a leasehold and commonhold reform Bill expected in the second half of the year.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.