Oral Answers to Questions

Debate between Matthew Pennycook and Alistair Strathern
Monday 9th June 2025

(1 week, 4 days ago)

Commons Chamber
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Matthew Pennycook Portrait Matthew Pennycook
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The right hon. Gentleman is certainly not charitable. As I made clear, I recognise the December 2021 uplift in energy efficiency standards means that most new builds that come through achieve an EPC rating of A or B. Off the top of my head, though I stand to be corrected, I think about 84% of new homes meet those standards. But as I said, we have announced that we want to introduce future standards this autumn, which will drive even more ambitious energy efficiency and carbon emission requirements for new homes.

Alistair Strathern Portrait Alistair Strathern (Hitchin) (Lab)
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Having long campaigned on the need for much tougher regulations for solar panels on new homes, I was delighted to hear the Government announce last Friday that we will bring forward requirements to do exactly that. That will not just boost EPC ratings, but save new homeowners thousands of pounds in bills, all while reducing energy usage. How can we ensure that we move at speed so that as many of the new homes we build over the course of this Parliament as possible will benefit from our ambition here?

Matthew Pennycook Portrait Matthew Pennycook
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My hon. Friend has been a champion of ensuring that we get more solar panels on to new build homes and other types of building. As I said in answer to a previous question, we want to move at pace to put future standards in place. We are looking at this autumn, and that will ensure more of the new homes coming forward meet those more ambitious standards. It will mean, as he is aware, that the vast majority of new build homes have solar panels on them as standard.

Leasehold and Freehold Reform Bill (Ninth sitting)

Debate between Matthew Pennycook and Alistair Strathern
Matthew Pennycook Portrait Matthew Pennycook
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I thank the hon. Gentleman for that intervention; it is a habit that I hope he continues because I think there is common ground here. When it comes to common adoptable standards, Ministers have often put it to me—the Minister no doubt will; previous Ministers have done—that local authorities have the tools they need to drive up the standards of public amenities that are constructed, but there is clearly something going wrong in that they are not ensuring that those standards are in place. As a consequence—not in every instance, but in many—local authorities have good reason to be reluctant to take them on.

We have tabled amendment 150 in an attempt to challenge the Government to consider how they might utilise the regulatory framework introduced by part 4 to drive up the standards of public amenities on the estates in question—that is the other half of the equation that I think we are all agreed we need. Our amendment would ensure that services or works on private or mixed-tenure estates that are required as a result of defects in construction are not relevant costs for the purposes of estate management. I think that, rather than the amendment of the hon. Member for North East Bedfordshire, would be the incentive that developers need to ensure that high standards are in place at the point that they hand the estate over. Ours is consciously a probing amendment and I hope the Minister will understand and appreciate the problem that it attempts to address, as does the hon. Member’s amendment. I look forward to hearing the Minister’s thoughts on it.

Alistair Strathern Portrait Alistair Strathern (Mid Bedfordshire) (Lab)
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I rise briefly to add my weight to the comments of the shadow Minister, my hon. Friend the Member for Greenwich and Woolwich. I wholeheartedly share the concerns on this issue expressed by my Bedfordshire neighbour, the hon. Member for North East Bedfordshire. I know that, like me, he has received a lot of correspondence from constituents who find themselves with a variety of challenges and exposed by a situation whereby regulation simply has not kept pace with best practice.

As the CMA outlined last year, we have gone from a situation in which it was simply the norm that estates were adopted by the local authority to one in which that is far from the norm. In the last week, I have spoken to residents right across my constituency who have faced incredibly high service charges. Estate management companies are looking for the next frontier for their rent-seeking behaviour, often by charging fees for services that would normally be covered by council tax. Such is the fragmentation on estates, as the shadow Minister set out, that they sometimes even duplicate the fees charged by other management companies on the same estate.

Leasehold and Freehold Reform Bill (Seventh sitting)

Debate between Matthew Pennycook and Alistair Strathern
Alistair Strathern Portrait Alistair Strathern (Mid Bedfordshire) (Lab)
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I rise briefly to support the comments from my hon. Friend the Member for Greenwich and Woolwich. Although I welcome much of the Minister’s message about removing some of the deterrents to taking on the right to manage on estates, having spoken to a number of residents and campaigners in my constituency, I know that if the clause is not removed it will continue to be a real deterrent and to expose them to a risk of significant financial liability that they would be poorly placed to take on. I know the Minister has already set out that he is unwilling to support the amendment today, but I hope that the Government will reflect on whether they might be willing to come back to the point to ensure there is no unnecessary deterrent to leaseholders in obtaining the right to manage effectively.

Matthew Pennycook Portrait Matthew Pennycook
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I thank the Minister for his response. There are two differences of opinion, the first of which is on the principled point of whether it is right that leaseholders should be charged for exercising their statutory right. We lean quite strongly towards the argument that they should not be, in principle.

The more pertinent argument for me is the second point I made, which, in all fairness, I do not think the Minister addressed. Let us be clear: in many respects, the Bill forces the Government to judge the right balance to strike between the interests of leaseholders and landlords. In coming to that view, the Bill has to account for the possibility that it creates quite perverse incentives, and I do not think it does that here or in a number of other places. This is one example of where that might happen. If a landlord wants to frustrate, disrupt or stop an RTM claim, the way in which the Government have implemented the exception to the general rule will incentivise them to fight the claim on the basis that they can try and convince the adjudicating party that the claim is defective, in the hope of recovering costs. A leaseholder exploring whether to take forward a claim is then faced with the risk of significant liabilities, as mentioned by my hon. Friend the Member for Mid Bedfordshire.

That will deter a huge number of leaseholders from exercising the right. Landlords will know it and fight more claims because they know that the deterrent effect of the exception to the general rule will be quite powerful in a number of cases. We argue quite strongly that we should just end the process costs for leaseholders as a matter of principle. That will incentivise many more groups of leaseholders to seek to acquire the right to manage. For that reason, we are minded to press the amendment to a Division.

Question put, That the amendment be made.