Residential Estate Management Companies Debate
Full Debate: Read Full DebateDepartment: Ministry of Housing, Communities and Local Government
Monica Harding
Main Page: Monica Harding (Liberal Democrat - Esher and Walton)Department Debates - View all Monica Harding's debates with the Ministry of Housing, Communities and Local Government
(1 week, 6 days ago)
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Monica Harding (Esher and Walton) (LD)
It is a pleasure to serve under your chairmanship, Mr Stuart. I thank my hon. Friend the Member for South Devon (Caroline Voaden) for securing this debate. I have been supporting residents of both freehold and leasehold properties in Esher and Walton who are confronting a system that allows management companies to oversell seemingly attractive properties, but makes it extremely challenging to hold them accountable for overpriced services and service failures, or to get rid of them. I hope that the Government will look closely at the business model of such companies and the tactics that they employ.
In my constituency, I have supported residents of an estate composed of later-living leasehold flats spread across five blocks, who have secured the right to manage away from FirstPort. However, because the blocks are separate buildings, the residents of the 38 flats were required to establish five different right-to-manage companies, even though communal areas remain under the management of FirstPort. I urge the Government first to ensure that separate buildings on a single development can pursue the right to manage together, and secondly, to expand that right so that it covers communal areas. What consideration have the Government given to creating a statutory right to manage for freeholders that encompasses communal areas?
Many leasehold developments are principally intended for the elderly. Elderly residents often live in them for a comparatively short time and selling such leasehold properties is extremely challenging, so families often subsequently look to let them. FirstPort imposes a charge of 1% of a property’s market value as a condition of letting it, and frequently overvalues properties in order to charge more. That one-off payment recurs each subsequent time the property is let. What is the Minister doing to protect elderly people from exploitative leasehold conditions in elderly living accommodation?
Several hon. Members rose—