Commonhold and Leasehold Reform

Gagan Mohindra Excerpts

Tuesday 27th January 2026 Commons Chamber

[Matthew Pennycook]

We did see a considerable amount of deregulation under the coalition Government and their successors. I will give the previous Government credit, as I have done before, for bringing forward the 2024 Act; it does include some limited relief for leaseholders and some new rights and protections. However, we need to take it forward and finish the job, as I made clear in opposition that Labour would. As I said, we are consulting on changes to increase protections over service charges—incidentally, that same consultation included a number of proposals recommended by Lord Best in his 2019 report, “Regulation of Property Agents”, including the introduction of mandatory qualifications for managing agents. We are clear, though, that that consultation and the measures within it are not the final step in the regulation of managing agents, and we will continue to reflect on the various other recommendations made in Lord Best’s report.

[Mr Gagan Mohindra (South West Hertfordshire) (Con)]

Unlike the Chair of our Select Committee, the hon. Member for Vauxhall and Camberwell Green (Florence Eshalomi), I have not read the full draft legislation published at 7 o’clock this morning. I can confirm that she did indeed feel a bit unloved whenever she saw the Minister running away from her. On the statement, I think the Minister referred, in a previous answer, to ground rents and the transition from £250 to a peppercorn being effective in 2028. At the point that it becomes effective, will he look to backdate it or will tenants have to continue to pay their bills up until the legislation becomes effective?

[Matthew Pennycook]

The House can, of course, help us to speed up the progress of the Bill; 2028 is only a rough estimate based on the time it will take for the Bill, once it has passed its draft phase and scrutiny from the Select Committee, to be introduced in its final form and to get through both Houses. We will then also have to switch on the necessary secondary legislation. Up until that point, people will continue to pay their existing ground rents, but, as I say, the cap will apply once we bring those measures into force. For lots and lots of leaseholders around the country—I am sure the hon. Gentleman has many in his constituency—who are paying onerous, high ground rent terms way above £250, that will be an immediate financial relief that will be hugely beneficial to them.