Residential Estate Management Companies

Gideon Amos Excerpts

Tuesday 22nd April 2025 Westminster Hall

[Gideon Amos (Taunton and Wellington) (LD)]

It is a pleasure to serve with you in the Chair, Mr Stuart. I congratulate my hon. Friend the Member for South Devon (Caroline Voaden) on securing a debate on residential estate management companies—an important issue for many of us up and down the country, and many of our constituents.

My hon. Friend has done a service both to her constituents and to people across the country by exposing, and placing on the record, the scandal of poor management companies. I do not want to denigrate companies that do a good job for the common areas and spaces that they are contracted to look after, but, as we have heard today, Members of Parliament too often hear how far too many companies are fleecing residents, charging rip-off prices and failing to respond to reasonable requests for repairs, information or accounts of how residents’ money is being spent.

[Martin Wrigley (Newton Abbot) (LD)]

In the town of Teignmouth in my constituency of Newton Abbot, FirstPort has been buying up other management companies, and the sinking funds—the contingency paid by residents—appear to have disappeared: they have been sunk. Does my hon. Friend agree that that should be looked into?

[Gideon Amos]

I completely agree with my hon. Friend, who is doing a great service to his constituents by exposing that problem.

In too many constituencies, residents are plagued by rogue developers who provide housing under a freehold tenure, but force residents to accept the estate managers or shared owners of public spaces within the developments. We have heard shocking examples from all over the country, which surely demonstrate the scale of the problem and the need to act. In one block of flats in my constituency of Taunton and Wellington, people have been unable to get repairs for a leaking roof from the owner of a building in Corporation Street—it has been leaking for nine years without being attended to.

[Dr Roz Savage (South Cotswolds) (LD)]

In my constituency of South Cotswolds, there are tragic stories, including about disabled residents being trapped in their flats due to a lift being out of order. Another constituent was informed that their charges had risen from £1,500 to £2,100 per six months. Does my hon. Friend agree that we need urgent action from the Government to end this daylight robbery?

[Gideon Amos]

“Daylight robbery” is a good way of putting it. Those staggering increases in charges, with very little notice or warning to residents, are experienced in many of our constituencies, including my own.

In my constituency, I am receiving complaints about FirstPort from residents of Parsonage Court in Wellington, and from those of Quantock House, Pavilion Gardens, St George’s Square and Firepool in Taunton. I am also receiving complaints about Cognatum Estates from residents of Cedar Gardens and Fullands Court. These issues are arising in a whole range of properties.

[Helen Maguire (Epsom and Ewell) (LD)]

One of my constituents, Mr Vivian Lythgoe, is here today because of FirstPort. Unfortunately, he has had to make the painful decision to sell his home because he is fed up with dealing with management companies that are not interested in leaseholders. He has been fighting FirstPort to try to make it carry out basic maintenance, which residents have already paid for. Residents are not cash cows for management companies or footnotes in company accounts; they are people. It is time that they were treated as such. Does my hon. Friend agree?

[Gideon Amos]

My hon. Friend is absolutely right. It is time for this shocking behaviour to be rectified and for legislation to be introduced. I will continue to work for the residents of the properties in my constituency that I have mentioned, and to get the legislation that we need.

Those who suffer from poor management can, of course, be leaseholders or freeholders. There are 4.8 million residential leasehold properties in England, which is equivalent to a fifth of the housing stock. That system is a relic of the feudal period. Its abolition has long been sought by Liberals and Liberal Democrats. The abolition of residential leasehold could be one of the most important carried-forward pieces of business from the last Liberal Government of about 100 years ago, which goes to show how long overdue it is.

[John Milne (Horsham) (LD)]

In my constituency of Horsham, we have many similar examples. Would my hon. Friend agree that although we certainly need legislation, the industry could act right now by introducing a voluntary code of practice? The industry does not have to wait for legislation; it should hear the call from across this Chamber.

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[Gideon Amos]

My hon. Friend is absolutely right and is championing the issue in his constituency. The companies watching or reading the debate would do well to listen to his words, because they could easily improve their practices right now by introducing a code of practice, as he suggests.

Liberal Democrats believe that leasehold tenure should be abolished for all properties, including flats. For too long, homeowners have been exploited by what is ultimately a feudal system. Existing residential leasehold should be converted either to freehold or commonhold, as appropriate, and we urge the Government to introduce legislation to make that happen. On commonhold properties and commercial leaseholds, ground rent should be capped to a nominal fee, so that everyone has a degree of control over their property.

Of course, the Conservative Government introduced to Parliament the Leasehold and Freehold Reform Act, which received Royal Assent in 2024. However, the secondary legislation, which would give leaseholders rights over their freeholder landlords when it comes to accounts and accountability in general, has failed to be enacted. Crucially, the Act fails to regulate property management agents. As my hon. Friend the Member for Honiton and Sidmouth (Richard Foord) pointed out, there has been widespread agreement about that since the 2019 report chaired by the Cross Bencher Lord Best, supported by the Liberal Democrats in this House and in the other place. We need to see vital improvements to the 2024 Act. I hope the Minister will today confirm when secondary legislation will be introduced, or indeed other legislation on the regulation of property agents.

Liberal Democrats want the management of buildings to be professionalised. Building maintenance and safety need to be guaranteed, not dependent on whoever happens to be the freeholder. Nowhere has that been more important in terms of safety than in the entirely avoidable but tragic disaster of Grenfell Tower. Putting profit before safety, as Sir Martin Moore-Bick’s report has found, was one of the chief causes of that fire. Just as profit-driven sign-off in the testing of building materials and in the inspection of buildings needs to be reversed with the ending of both the privatised Building Research Establishment and privatised building inspectors, so too there is surely now a need to regulate property agents—for safety reasons, as much as anything else.

Today is also Stephen Lawrence Day. As Stephen was a budding young architect, it is fitting that we are debating regulating building management agents; it would be even more fitting if there was a commitment today to bring legislation forward. Just as leaseholders are charged extortionate amounts while being poorly served by the landlords and estate management companies they employ, too many freeholders of their own homes find themselves beholden to others over whom they have no control in relation to the open spaces and common areas, as my hon. Friend the Member for Glastonbury and Somerton (Sarah Dyke) mentioned.

[Claire Young (Thornbury and Yate) (LD)]

My own local council is attempting to address the issue of fleecehold through its new local plan, which I commend. Would my hon. Friend urge the Government to bring forward the legislation quickly in order to strengthen the council’s position?

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[Gideon Amos]

My hon. Friend must surely have read the next words of my speech, which urge the Government to make urgent progress on strengthening leaseholders’ rights and on their draft leasehold and commonhold reform Bill.

We should, for example, make sure that legislation strengthens leaseholders’ rights to extend their leases, to buy their freeholds, to take over the management of their buildings and to make commonhold the default tenure. We should also regulate ground rents for existing leaseholders, and freeholders too: it is surely time for legislation to enable freeholders to recover ownership and control over public spaces that surround and adjoin their homes, which are held by others for no reason other than to extract maximum payment. A single freeholder among many who exercises control over common areas, such as access roads and green spaces, should no longer be allowed to hold all other homeowners to ransom with ever increasing charges and unreasonable management practices.

Back in December last year, my hon. Friends on the Liberal Democrat Benches, led by my hon. Friend for South Devon, were the first to bring the directors of FirstPort to the House to account to MPs for their management. My hon. Friend has blazed a trail for those affected by the appalling management of common areas and public spaces.

I return to the issues in my constituency. One resident in Wellington has been unable for over a year to get reasonable adjustments for disabled access to her parking space, even though she is also a cancer sufferer. We have seen now that persuasion on its own is not enough. Just as it is high time for residential leasehold to be brought to an end, it is also time for legislation to enable freeholders of common areas to acquire open spaces and common areas from those who would hold ransom over them. As Liberal Prime Minister Lloyd George pointed out, these practices are not business but blackmail.