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Tabled by
Lord Kennedy of Southwark
To ask His Majesty’s Government what plans they have to abolish residential leasehold for flats.
Tabled by
Lord Kennedy of Southwark
To ask His Majesty’s Government what plans they have to abolish residential leasehold for flats.
My Lords, I declare my interest as a leaseholder.
The Government are extending the benefits of freehold ownership to more home owners. Reforms in the Leasehold and Freehold Reform Bill will help leaseholders to buy their freeholds and will end the sale of new leasehold houses so that, other than in exceptional circumstances, all new houses will be freehold from the outset. For flats, the Government remain committed to reinvigorating commonhold to give developers and home owners a viable alternative to leasehold should they choose it.
My Lords, I refer the House to my relevant interests as set out in the register. Does the noble Lord accept that, in many cases, leaseholders are trapped, paying expensive fees to management companies for the care and upkeep of communal areas or the property that they live in, and that the provisions that enable fees to be challenged and management companies to be replaced are not fit for purpose and need to be radically updated to place real control and choice in the hands of the leaseholders?
My Lords, I refer the House to my relevant interests as set out in the register. Does the noble Lord accept that, in many cases, leaseholders are trapped, paying expensive fees to management companies for the care and upkeep of communal areas or the property that they live in, and that the provisions that enable fees to be challenged and management companies to be replaced are not fit for purpose and need to be radically updated to place real control and choice in the hands of the leaseholders?
My Lords, we believe very strongly that any fees and charges should be justifiable, transparent and communicated effectively and that there should be a clear route to challenge or address things if they go wrong. That is why we commissioned the noble Lord, Lord Best, to do his report.
The Government are committed to promoting fairness and transparency for homeowners and ensuring that leaseholders are protected from abuse and poor service. Following Law Commission reports on enfranchisement, right to manage and commonhold, the Government are taking forward a comprehensive programme of reform to end unfair practices in the leasehold market. We are also considering the recommendation from the independent working group on property agents, chaired by the noble Lord, Lord Best.