Leasehold Reform
Debate between Stephen Doughty and Matt Western(11 months, 2 weeks ago)
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Matt Western
The Father of the House is absolutely right. In one of the properties in which I was a leaseholder, we set up as directors and took control of the property. We appointed our own management company, at significantly lower cost, to address some of the massive overcharges we faced.
In 2014, the Competition and Markets Authority estimated that the average service charge amounted to just over £1,100 a year, suggesting that service charges could total between £2.4 billion and £3.5 billion a year. My hon. Friend the Member for Sheffield South East (Mr Betts) highlighted the 2019 Select Committee report—I was privileged to sit on that Select Committee—which identified that, too often, leaseholders, particularly in new-build properties, have been treated by developers, freeholders and management agents not as homeowners or customers but as a source of steady profit. We concluded by urging the Government to ensure that commonhold became the primary ownership model for flats in England and Wales, as it is in many other countries. Of course, that has not been adopted.
Stephen Doughty
Does my hon. Friend share the frustration that many of my constituents face? When they try to set up “right to manage” companies, and to move towards taking over their freehold, the process and the disputes about which buildings and outhouses constitute part of their property make it extraordinarily complex, and often expensive, to take control of management accounts.
Matt Western
My hon. Friend is absolutely right. It is incredibly complex and extremely expensive to go through that process.
The last Labour Government’s Commonhold and Leasehold Reform Act 2002 introduced commonhold as a new tenure, which this Government should have pursued over the past 13 years. Progress was not made for two reasons: the conversion from leasehold to commonhold requires consent from everyone with an interest in the property, as my hon. Friend just said; and developers do not want to build new commonhold developments because there is no incentive and no financial upside, as my hon. Friend the Member for Ellesmere Port and Neston (Justin Madders) highlighted. This Government have ignored these exploitative practices, and the ever-louder calls from the public to end them, for 13 years. They launched the Commonhold Council two years ago, so will the Minister update us on what has happened with that? It appears to be nothing.
The public are aware of the Conservative Government’s broken promises. Their 2019 manifesto promised to address this issue by implementing a
“ban on the sale of new leasehold homes”.
That has not happened. Even the Housing Secretary admitted that they should end this “absurd, feudal” system, but we are 13 years on from the last Labour Government and nothing has happened. This Government have let down the public. I appreciate that there is a high incidence of these cases in the north-west England, but there are also some in my constituency. Groups of residents across my local towns are keen to take control of the development of their blocks, but it is too expensive and complicated to do so, as many Members have been saying. In one block of 70 flats, the residents have managed to take that on, but the previous managing agent took £76,000 from the residents’ account and they have not been able to recover the money. The residents are keen to ensure that managing agents are better regulated in any proposed legislation.
As my right hon. Friend the Member for North Durham (Mr Jones) said, there is so much sharp practice out there. That is why Labour would implement the three Law Commission 2020 reports in full. They included measures designed to make it easier for leaseholders to convert to commonhold; to allow shared ownership leases to be included within commonhold; to give owners a greater say over how the costs of running their commonhold are met; and to ensure that they have sufficient funds for future repairs and emergency works.
Leaving the EU: Customs
Debate between Stephen Doughty and Matt Western(5 years, 11 months ago)
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Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
The Minister for Cabinet Office gave all sorts of procedural reasons for why these papers should not be released. He spoke a lot about the relationship between Parliament and the Executive, but he did not mention the people who matter in all this: the British public, our businesses and the trade unions that represent workers who will lose jobs if we crash out of the EU with the reckless hard Brexit that the Government are currently pursuing.
It is no wonder that the Government do not want to release such papers and information because, after weeks of trying to prevent papers from being released, we saw Treasury documents that made it clear that, under all the options being pursued by the Government, we will see job losses, a loss of revenue, a lowering of growth and an increase in public sector borrowing—all the kinds of things that will have an impact on communities up and down the country. Indeed, documents about nuclear safeguards were released today, and the Government marked each one as red. This information should be in the public domain for the public and our businesses to see.
Matt Western (Warwick and Leamington) (Lab)
My hon. Friend is making an important point. Does he accept that we are already seeing the loss of many hundreds of jobs, particularly in our manufacturing sector and particularly in the west midlands, by virtue of these policies and the uncertainty surrounding them?
Stephen Doughty
My hon. Friend makes a crucial point. I have the same worries about businesses in Wales, in south Wales and in my constituency.
This is our biggest decision since the second world war, and as my hon. Friend the Member for Streatham (Chuka Umunna) pointed out, we have a total shambles from the Government. Rows are largely being conducted in public, but without the public knowing what the Government know about the real impacts on businesses and on Northern Ireland and the huge inconsistencies in what is being put forward, let alone the risks to our place in the world.
We have heard about the risks of leaving the customs union. We have heard about the £466 billion-worth of current goods trade with the EU. The Brexit Secretary’s special adviser said that there would be a cost of £25 billion a year up until 2030. Her Majesty’s Revenue and Customs has pointed out the issues with customs checks on imported goods. The Home Affairs Committee revealed the lack of preparation at the Home Office, including the lack of recruitment of people to carry out customs checks, and the cost of all that. We have not even left yet, but the Home Office has already had to request up to half a billion pounds that could have been spent on policing. Instead, it is going on preparing for a hard Brexit. We have also heard about the impact on the Northern Ireland-Republic of Ireland border, including some excellent points, as ever, from the hon. Member for North Down (Lady Hermon), but the Northern Ireland Secretary has not even been to Brussels to discuss the issues and the Brexit Secretary went over to Northern Ireland only relatively recently.
My hon. Friend the Member for Warwick and Leamington (Matt Western) pointed out the risk to jobs, and we repeatedly hear that directly from businesses. Many businesses have come to see me in private to tell me how disastrous the Government’s approach is. The truth is that the Government know that, but they are just not willing to admit it in public. Many businesses are activating major Brexit contingency plans. We have heard about the automotive sector, but the National Farmers Union has also described the scenario as disastrous. The pharmaceutical industry has warned about the impacts, and the Chemical Industries Association has made it clear that the best thing for us is to retain our membership of the single market and the customs union.
I have spoken extensively with the UK Chamber of Shipping about the impact on Welsh ports, including in my constituency, and it warns that the UK is facing an absolutely catastrophe. The same goes for steel, manufacturing, high-tech industries and, of course, the creative industries. We should not forget about the ability of our musicians and creative people to travel across Europe, making incredible products and selling them to the world.
As my hon. Friend the Member for Penistone and Stocksbridge (Angela Smith) said, we cannot fundamentally divorce all that from the arguments about the single market. I favour our staying in the EEA and in the customs union, and the Social Democratic and Labour party—Labour’s partner in Northern Ireland—has said the same. At the moment, however, the Government are riven in two in public and in private. They are unprepared, irresponsible and incompetent, and, what is worse, they know it.