I very much welcome the Bill, which addresses the frustrations expressed by a great many leaseholders in my constituency. I thank Suzy Killip from the Pembroke Park Residents Association and Jo Tapper at The Sigers, both of whom have faced significant challenges while representing their communities and taking forward issues arising from the management and lack of services often provided to them under their lease arrangements.
I would particularly like to thank Ministers, because this legislation takes into account the way that the market has changed. Many years ago I started my career as a financial adviser, dealing with people taking out mortgages. One stark change is the extent to which leaseholds are seen as an opportunity to extract money from people as investments to be traded by freeholders, on the basis of extracting the maximum possible amount rather than ensuring good quality of services. I was involved in cases as a local authority councillor, where part of the planning agreement was that roads, parks and open spaces would be brought up to an appropriate standard to be adopted by the local authority. Once the development was completed, an opportunity was spotted by the developer and, therefore, people who had moved in on the understanding that the local authority would take over—because the roads were built to adoptable standard, for example—found that it did not happen because it was seen as an investment opportunity. That is very much in line with the rip-offs referred to by Members across the House.
I commend Ministers on taking a balanced approach on the need to recognise a link between the arrangements in the Bill and our housing supply. The UK has the oldest housing stock in Europe. The ability of freeholders of larger developments to regenerate sites where properties that have been rented are falling vacant over a period of time could be inhibited if there is a proliferation of small freeholds on those types of sites. If we are to ensure that
the quality of our housing, in particular energy efficiency, is brought up to a good standard, it must still be possible for larger sites to be regenerated. We must not inhibit that completely while addressing a different concern about the rights and freedoms of leaseholders.
I mentioned some constituents earlier; the situation in particular at Pembroke Park is a good example of why the reforms in this legislation are so important. The development was constructed on a former military site by Taylor Wimpey, and handed over to be managed by A2Dominion housing association, with a mix of social housing tenants and private leaseholders. There are umpteen issues still more than a decade after the completion of that site, and issues simply getting A2Dominion to respond to problems including insulation that was never installed in buildings to the building regulations standard, a complete failure to ensure that proper ventilation was installed in the buildings, and drains that are completely inadequate. There has been progress, but I would add A2Dominion to the list of companies raised by other Members.
I commend A2Dominion’s relatively new chief executive, Ian Wardle, on the progress that he is making, but it remains a huge challenge to my constituents, and a huge frustration, that as opaque charges rise and rise, the actions of that organisation make it incredibly difficult even to understand whether the basic legal protections that they enjoy under existing legislation are being observed, including how insurance costs are apportioned across a very large property portfolio.
I strongly support the points made around forfeiture provisions. A number of constituents have come to me with significant challenges and justifiable concerns about the rising service charges on their properties. It is completely unacceptable that they would forfeit a significant amount of value that they have paid for and earned—potentially to fall to the developer. That is another opportunity for the shamelessly greedy to rip off our constituents. I am very glad that this legislation and the comments made by Members across the House today will represent a significant step towards ending that practice.