Commonhold and Leasehold Reform: Managing Agents

Debate between Sarah Smith and Leigh Ingham

Thursday 2nd July 2026 Commons Chamber

[Leigh Ingham (Stafford) (Lab)]

I congratulate my hon. Friend the Member for Vauxhall and Camberwell Green (Florence Eshalomi) on securing this incredibly important debate.

This issue is the reason I got into politics in the first place. My first community activism was with my fellow neighbours against an unscrupulous developer up in Newcastle. What I learnt from that is that when people are trapped in their own homes by systems which have been designed to extract money from them rather than serve them, they need a Government who are on their side. For too long leaseholders have not had that at all. I am so glad that this Government have taken strong steps already on commonhold and leasehold. There is so much that does need to change.

In the past, as many hon. Members have spoken about today, leasehold has been used as a system that has allowed developers to treat homeowners as a revenue stream: escalating service charges with no breakdown; poor maintenance resulting in unsafe parks; problems with footpaths and dying trees; and to make matters even worse and more insulting, really poor communication from managing agents, which makes it difficult to get your voice heard or your complaint addressed.

On local estates such as Marston Grange, Sancerre Grange and Sheridan Grange, I have worked to help residents register and build residents’ associations, and to raise their cases with managing agents so that they get better maintenance. Working together, we have had some genuinely great results, but for residents on new build estates it should not depend on how active or vocal their local MP is; it should be written into law. I urge the Government to ensure that property managing agents are sufficiently regulated.

I will give the House a couple of examples from my constituency. At my coffee morning last week, a case from Gateway Avenue in Baldwin’s Gate was raised. At their AGM, the residents wanted to form a management company, but they were blocked, and one is being imposed on them against their wishes. On St George’s Estate in Stafford, residents have reported that

“it genuinely feels like the managing agent is stealing money from us”

to the tune of £600 to £1,000 per leaseholder. Their charges have trebled. They now have to pay £2,500 to change the rent review period on their lease to be able to remortgage or sell. As a system, that is deeply unfair. At Deanspark Court, a retirement complex—other hon. Members have spoken about this—residents who own their own flats describe management charges as “extortionate”. The company refuses to engage meaningfully. At Adlington Brooklands House in Stafford, a constituent’s ground rent has risen year on year and now stands at almost £2,000, which is nearly six times the national average. I could go on—and on, and on, Madam Deputy Speaker—but I think I have made my point clear.

The Government have taken bold and decisive steps already in capping ground rents, abolishing forfeiture and making commonhold the default for new flats. Those are really significant reforms, but the Housing, Communities and Local Government Committee has called the absence of independent regulation of property managing agents a “significant shortcoming”. Every one of my constituents would agree with that.

As far back as 2019, Lord Best recommended an independent regulator with the powers to fine agents and revoke licences. It is now 2026. The case for that has been made consistently, and delivering it would be a tremendous contribution by this Labour Government.

[Sarah Smith (Hyndburn) (Lab)]

Does my hon. Friend agree that it would also give some comfort to my poor residents on both Ribblesdale Avenue in Accrington and Lyndon Park estate in Great Harwood, who are currently faced with the impending truth that FirstPort will shortly be their managing agent? They are rightly terrified about what that might mean for them and what expense it might add, as well as the failure of such organisations to manage local parks and so on. Taking the steps that she mentions will help give my residents confidence that they will have the protections they deserve.

[Leigh Ingham]

I wholeheartedly agree with my hon. Friend. Given FirstPort’s record and the number of times that FirstPort has been called to Parliament—it has been called to speak before the Housing, Communities and Local Government Committee and the “Labour for Leaseholders” group, which has worked really hard—it is an abomination that it is still getting contracts, to be honest. As someone who used to award contracts in my previous career, I think it is mad when previous behaviour is not taken into account when giving out contracts, and FirstPort is a case in point—absolutely atrocious behaviour.

Learning from my own experiences, I am helping constituents on estates across the constituency, as I am sure many hon. Members are, to form residents associations to fight back, but I think we are beyond that. We should not need to be fighting back any more; we should have the regulation in place to protect us.