Residential Estate Management Companies

Kevin Hollinrake Excerpts

Tuesday 22nd April 2025 Westminster Hall

[Kevin Hollinrake (Thirsk and Malton) (Con)]

It is a pleasure to speak with you in the Chair, Mr Stuart. I congratulate the hon. Member for South Devon (Caroline Voaden) on securing this important debate; the strength of feeling from the people speaking has been strong. Companies such as FirstPort should take note of that when it comes to the services they offer.

I draw the House’s attention to my entry in the Register of Members’ Financial Interests. I will keep my remarks brief to give the Minister plenty of time to respond—the ball is very much in his court, as he knows—but I also might give time for interventions from Members who have not been able to make speeches in the main debate. It is safe to say that I will not mention every speech by name, as that would take too long, but I very much agree with the essence of all the contributions today.

I have come across these issues in my constituency, in estates in Malton and Easingwold. FirstPort was invariably the managing agent causing many of these difficulties. The best regulator is always competition. We need to make sure that it is easier for people to manage their own freehold estates and to swap between different managing agents. The speeches today have had in common references to high and sometimes spurious charges, as well as poor and obscure service. That is something I certainly recognise.

I also recognise, and am frustrated by the fact, that local authorities have moved to the model of granting consent for what have become known as fleecehold estates. It seems that residents on these estates do not understand why they have a two-tier system, paying council tax and for the management of the freehold estate, when other people in their locality do not. It is time look at this in more detail and to act. I am happy to have a cross-party conversation with the Minister on how we might work together to make sure this situation does not become worse. We should all note the excellent work of the Competition and Markets Authority on making sure that the default position is to have adoptable standards.

I thank my hon. Friend the Member for Broxbourne (Lewis Cocking) for highlighting a point I do not believe anyone else did: the work of conveyancers. Conveyancers have moved towards a shed-based service. It used to be there was a local, friendly solicitor who would give good advice on a buy and the implications of it, but much of that has gone. We need to make sure our conveyancers are doing the right thing in terms of pointing out to someone buying a fleecehold property the potential problems for which they might have to take responsibility.

As has been mentioned, we legislated in this area in the Leasehold and Freehold Reform Act 2024. This gives the potential to challenge charges, makes the right to manage easier, and opens the door to first-tier tribunals on charges and to an ombudsman scheme. This is where I would like to ask the Minister some questions. He has a role in implementing the provisions of the Act, which will require secondary legislation. As I think was stated in his White Paper, consultation may also be required, both on right to manage and on potential access to ombudsman oversight of the companies managing these estates. He needs to approve an ombudsman scheme and publish guidance. To what timescales does he expect implementation to take place? For the residents Members across the House have discussed, there is clearly a pressing need.

Regarding the White Paper and the potential of the leasehold and commonhold reform Bill, I am interested in which specific further steps the Minister intends to take on oversight of these fleecehold situations. We also need to be clear on exactly where he is going with leasehold reform. The manifesto the Minister stood upon said very clearly that Labour would

“finally bring the feudal leasehold system to an end”.

If that is his intention, is he talking purely about new leases or about existing leases? Clearly there are difficulties around those.

Finally, there is talk about a cap on ground rents. We have previously talked about a peppercorn charge. Where exactly is the Minister going with that? People need to know exactly what his intentions are.