Mortgages: EWS1 Form

Lord Kennedy of Southwark Excerpts

Tuesday 29th June 2021 Lords Chamber

Asked by

[Lord Kennedy of Southwark]

To ask Her Majesty’s Government what steps they intend to take to help leaseholders who are unable to sell their flats due to mortgage providers insisting on an EWS1 form despite the guidance from the Royal Institution of Chartered Surveyors.

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper. In doing so, I refer the House to my relevant interests as set out in the register.

[The Minister of State, Home Office and Ministry of Housing, Communities and Local Government (Lord Greenhalgh) (Con)]

We will continue to challenge industry on inappropriate use of EWS1 forms. We have asked lenders to publish data, so that home owners can see how the guidance is being applied, as well as the impact of the process on mortgage applications. Data from one major lender suggests that an EWS1 form already exists for 50% of mortgage applications where one is requested. We are working with industry to ensure this picture improves.

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, the problem is that mortgage providers are insisting on a form that is not necessary, against the guidance from the Royal Institution of Chartered Surveyors. People cannot sell their homes because of the actions of overzealous financial institutions, and buyers cannot get mortgages. Can the Minister say more? Has he spoken to UK Finance to sort this issue out? Sadly, for me, this is another example of woeful failure by the Government—all promise and no delivery. Again and again, home buyers have been let down. Issues of fire safety, building safety, poor construction and financial failure are not going away. The Minister will be brought back here, again and again, until the Government finally take some action.

[Lord Greenhalgh (Con)]

My Lords, we have had repeated engagement with both UK Finance and also the Building Societies Association on this matter. We are seeing a picture that is troublesome but is continuing to improve, bit by bit. We have taken a number of measures to ensure that we encourage lenders to take a more proportionate approach.