Commonhold and Leasehold Reform

Debate between Matthew Pennycook and Josh Babarinde

Tuesday 27th January 2026 Commons Chamber

[Matthew Pennycook]

I say to my hon. Friend that we are on his constituent’s side. It is because so many leaseholders across the country are suffering from unjust and discriminatory practices that we have to overhaul and ultimately end this feudal system.

[Josh Babarinde (Eastbourne) (LD)]

Eastbourne’s leaseholders are being ripped off. The current leaseholder landscape has bred an industry of property management companies, such as FirstPort and Eagerstates, that prey on powerless leaseholders by charging eye-watering service charges, making opaque calculations of those charges and bullying residents into submission. In failing to cap service charges, and without the 2024 transparency rules in place, today’s reforms still leave thousands of local leaseholders unprotected. When will the Minister finally crack down on exploitative property management companies?

[Matthew Pennycook]

I have made it clear to the House that we have already set out proposals to strengthen the regulation of managing agents. Those proposals are not the summit of our ambitions; there is more to come. I say to the hon. Gentleman and generally to the House that managing agents will play an even more important role as we progress towards a commonhold future. We must therefore end the abuse and poor service from unscrupulous managing agents that so many leaseholders face.

Oral Answers to Questions

Debate between Matthew Pennycook and Josh Babarinde

Monday 9th June 2025 Commons Chamber

[Matthew Pennycook]

I assure the right hon. Gentleman that the Government are thinking about the plight of residential freeholders alongside leaseholders. As I just said, we will consult this year on implementing the provisions in the 2024 Act, which provides those residential freeholders with new consumer protection provisions. They will have that immediate safety to come in, as we look at how we reduce the prevalence of such arrangements in the longer term.

[Josh Babarinde (Eastbourne) (LD)]

Leaseholders at South View on Upperton Road in Eastbourne face an extortionate bill of up to £40,000 each to repair unsafe balconies. The communication from Morgans and Stredder Pearce, who are both responsible for fixing that, has been woeful, and delays are leading to costs spiralling further. Will the Minister urge those organisations to improve the speed and responsiveness of their communications to protect South View’s leaseholders from further costs?

[Matthew Pennycook]

I thank the hon. Gentleman for raising that case. I recognise the problem that he alludes to. We want to bring in as soon as possible measures to standardise service charges in particular and make them more transparent. I wonder if he might write to me and the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for Nottingham North and Kimberley (Alex Norris), who is responsible for building safety, with details of that case so that we can look into it further.