Question to the Department for Business, Innovation, Science and Trade:

To ask the Secretary of State for Business, Innovation, Science and Trade, whether he is considering the potential merits of changes to insolvency or consumer-protection legislation to provide greater protection to purchasers of off-plan residential property, including greater protection for deposits.

The Government keeps insolvency legislation under regular review to ensure that it continues to provide appropriate protection for businesses and consumers. There are existing safeguards when a developer becomes subject to insolvency proceedings, including powers to investigate directors’ conduct with particular attention paid to deposits accepted when developers are unable to fulfil their obligations. Where misconduct is identified, and it is in the public interest to do so, enforcement action may follow to disqualify the directors from acting in the management of a company for a period of between 2 and 15 years.