Residential Estate Management Companies

Lewis Cocking Excerpts

Tuesday 22nd April 2025 Westminster Hall

[Lewis Cocking (Broxbourne) (Con)]

It is a pleasure to serve under your chairmanship, Mr Stuart. I draw hon. Members’ attention to my entry in the Register of Members’ Financial Interests, because I am a local councillor. I also understand this issue more than most, because I live in a leasehold property.

I have a number of cases across my constituency of Broxbourne of leaseholders being ripped off by management companies, including High Leigh in Hoddesdon; Academia Avenue, Robinia Road and Watery Lane in Turnford; Aldermere Avenue and Magnolia Way in Flamstead End; and Eleanor House in Waltham Cross. These companies are completely unaccountable. There is a lack of transparency, and they simply do not care. If they deem that residents have underpaid by £10, or even £1, they are straight round to their door. However, when my residents—or constituents across the country—write or email asking for answers to their questions, these companies are absolutely nowhere to be seen. That is absolutely shocking, and it cannot be allowed to continue. As we have heard from Members across the House, our postbags are full with issue after issue. Sadly, I am yet to come across a company that is good in this area.

In the limited time available, I want to touch on the issue of solicitors and what people are being told when they buy these properties. Solicitors are not doing enough to point out all the red flags, including everything that residents are accountable for, what money they may have to pay and the previous accounts of the different estates. We really need to shine a light on the issue of solicitors; we cannot let them off the hook. I will be interested to hear the Minister’s view on that.

--- Later in debate ---

[Matthew Pennycook]

To be clear, the protections we are talking about, which we intend to switch on as soon as is feasible and were provided for by powers under the Leasehold and Freehold Reform Act passed by the previous Government, will benefit existing residential freeholders on existing estates. I will come to the prevalence of those arrangements in due course, but I can reassure hon. Members that we intend to carry out that consultation this year, as promised, and that I am doing everything I can to expedite it.

Beyond the short-term need to protect residential freeholders better, we have to take steps to reduce the prevalence of private estate management arrangements, which are the root cause of the problems we are considering today. In my written ministerial statement, I committed the Government to consulting on legislative and policy options to achieve that objective. I hope that hon. Members appreciate that this is not a simple and straightforward area of policy and that the implications of policy choices are potentially far-reaching.

[Lewis Cocking]

Will the Minister give way?

[Matthew Pennycook]

Yes. I will try to give way to as many hon. Members as I can.

[Lewis Cocking]

I want to make a point about solicitors’ practices and what information people get when they buy their properties. I think that a number of people go into these contracts under false pretences and do not fully understand what they are responsible for and what they may end up paying for.

[Matthew Pennycook]

There are undoubtedly issues around the purchase of homes on these estates. For example, it appears to be fairly common for residential freeholders not to be notified of their future liability for charges early in the conveyancing process. We are giving due consideration to those issues as well.

On the prevalence of future arrangements, the Government intend to seek views from a wide range of interested parties, including local authorities, management companies, developers and residential freeholders themselves. Our consultation will need to consider a wide range of trade-offs, including costs to homeowners, costs to local authorities, potential impacts on housing supply and the links with the planning system. As promised, we will consult on that matter this year.