Commonhold and Leasehold Reform

Debate between Matthew Pennycook and Lee Dillon

Tuesday 27th January 2026 Commons Chamber

[Matthew Pennycook]

I am more than happy to have a separate conversation with my hon. Friend about the specific conditions pertaining to leasehold houses. She will know, of course, that the Leasehold Reform (Ground Rent) Act 2022 made a number of changes in that area. In general, we want to arrive at a situation, once our reform agenda is enacted, where existing leaseholders can choose to remain in leasehold ownership but can take advantage of the new rights and protections made available to them, including a cheaper and easier enfranchisement process if they want to extend their lease or buy their freehold, or convert to commonhold. That is why it is so important that the Bill contains an easier mechanism to convert to commonhold, which, as I said in the statement, we are clear is not only an alternative to leasehold ownership but a radical improvement on it.

[Mr Lee Dillon (Newbury) (LD)]

I welcome the introduction of this draft Bill and, as a member of the Housing, Communities and Local Government Committee, I look forward to scrutinising it. I wonder whether the Minister will make available to the Committee evidence around the peppercorn rent and the 40-year requirement. I suspect is to do with investor confidence, but could that time period be brought forward? My overarching feeling, which I know will be reflected in my inbox when I get back to my office, is that people across the country would have expected to see within the draft Bill action on service charges; we are consistently contacted about managing agents not performing their duties and charging too much for it. The Bill was meant to be presented at the back end of last year and I know that the Government concluded a consultation in September. We want service charges to be addressed as soon as possible. Will we be able to get an additional clause on this issue into this legislation?

Oral Answers to Questions

Debate between Matthew Pennycook and Lee Dillon

Monday 3rd March 2025 Commons Chamber

[Matthew Pennycook]

The Government have no plans to cap service charges for tenants and leaseholders, given that would prevent necessary funds from being raised for legitimate purposes, but we do plan to tackle unregulated unaffordable ground rent provisions through legislation. As the White Paper published today makes clear, we want to make the process of converting to commonhold as easy as possible, and we will set out proposals in the draft leasehold and commonhold reform Bill, which is to be published later this year.

[Mr Lee Dillon (Newbury) (LD)]

I welcome the Government’s announcement today of changes to leasehold and the introduction of commonhold, but thousands of leaseholders across the country are still crippled by both high service charges and failing delivery. I am sure that the inboxes of Members across the House are full of complaints from constituents, particularly in relation to FirstPort management company. What can the Government do to hold individual management companies accountable for the services they deliver to our residents?

[Matthew Pennycook]

As the hon. Gentleman will know, we intend to bring into force this year the provisions of the Leasehold and Freehold Reform Act 2024, which is designed to drive up the transparency of service charges so that leaseholders can challenge them more easily if they consider them to be unreasonable. We intend to strengthen the regulation of managing agents, imposing minimum standards in relation to, for example, qualifications. I would say to any managing agent—and I know that Members across the House have been holding them to account—that they should improve their performance in the light of the changes coming forward in the near future.

Oral Answers to Questions

Debate between Matthew Pennycook and Lee Dillon

Monday 20th January 2025 Commons Chamber

[Mr Lee Dillon (Newbury) (LD)]

Will the Government look at redefining affordable housing in national policy so that it is pegged to average local income rather than at the whim of an overheated housing market?

[Matthew Pennycook]

We did make changes to some of the definitions around affordable housing in the recently revised national planning policy framework, by separating out the definition of social rent, but I hear the hon. Gentleman’s concerns. I will certainly bear them in mind as we develop policy.

Council Tax

Debate between Matthew Pennycook and Lee Dillon

Thursday 14th November 2024 Commons Chamber

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Mr Lee Dillon (Newbury) (LD)]

The Liberal Democrats are deeply concerned that people are simply paying more council tax for fewer services. That is quite clearly the result of Conservative tax cuts and their failure to tackle social care. As a former council leader, I know that the burden on councils has increased to such an extent that they are forced to make impossible choices. The burden and the costs that councils of all colours have to shoulder as a result of the Conservative Government’s policies must be reviewed. Will the Minister ensure that councils do not have to close libraries, cut bus routes and reduce road repairs in order to meet the growing demands of the most vulnerable members of our community? Despite the announcement in the Budget, will the Minister recognise the LGA analysis that councils face a £6.9 billion shortfall because of inflation, increased wage demands and demand pressures on local services?

[Matthew Pennycook]

The Government certainly recognise the pressures on local authorities and the burdens placed on households as a result of 14 years in which local government was run down. We are determined to turn that situation around, as I have said, by providing the headroom that local authorities need to get ahead of some of the challenges that they have faced for many years. That is why the more than £4 billion in new local government funding announced at the Budget, including an additional £1.3 million in the local government finance settlement, has been so warmly welcomed. That brings the total real-terms increase in core spending to around 3.2%. We remain committed to the 5% referendum cap—we believe that is the right threshold. To protect the most vulnerable, we are also committed to the single-person discount and local council tax support schemes, under which, as I am sure the hon. Gentleman is aware, more than 8 million households do not pay a full council tax bill.