MP Raises Suffering of Local Leaseholders in the Commons

Criticises government for failure to reform the system

Ruth Cadbury says 'rip-off' system is hitting thousands of her constituents

December 13, 2023

Brentford & Isleworth MP Ruth Cadbury has detailed problems experienced by leaseholders in her constituency in a debate in the House of Commons this week.

She was speaking on Monday (11 December) in a debate on the Government’s Leasehold and Freehold Reform Bill and took the Secretary of State Michael Gove to task for a failure to reform a system which she described as being outdated.

She spoke about a number of local examples of the flaws in the leasehold system including where building managers such as First Port and Randall & Ritner had provided a poor service to their leaseholders, and had failed to fix or address issues around service charge bills and building safety work. She also spoke about the particular set of challenges facing those in shared ownership properties including L&Q and Peabody.

She told the House, “For years and years, leaseholders, campaigners and groups such as the Leasehold Knowledge Partnership have been warning the Government about the huge harm being done by our outdated, feudal and antique leasehold system. Many of us have raised it in this House. Problems with leaseholds is one of the biggest issues brought to me by constituents, and I am sure if the Minister joined me in meeting residents of just one or two blocks in my constituency, whether it was Great West Quarter in Brentford, Grove House in Isleworth or Wheatstone House in Chiswick, he would see the wide array of problems caused by the leasehold system.”

While home-owners locally own the freehold to their property, many of those in flats only own the lease, meaning that they are expected to pay a service charge, insurance costs and face a number of hurdles and barriers around managing, and selling their property. This has caused a range of problems for leaseholders.

Ms Cadbury said that this ‘rip-off’ system was leaving residents facing huge financial costs, while being unable to sell their flats due to the ongoing building safety crisis.

She continued, “Let me move on to repairs. The residents of Wheatstone House in Chiswick, which is managed by L&Q, face an example of poor repairs services. Leaseholders and tenants in that block have known their hot water and heating not to work for days on end. That started last winter and is back again this winter. Each time, residents get a lacklustre and slow response from L&Q. We saw a repeat of such poor service when Peabody-Catalyst dragged its feet for months in fixing the lift at Aplin Way in Isleworth, trapping some residents upstairs. The developer then tried to leave leaseholders with a huge bill. Others have district heating systems that run at 35% efficiency but cost a lot of money. What does the legislation do to address those issues?”

Speaking in full after her speech she said, ‘‘I know from listening to constituents from Chiswick to Hounslow, that they are frankly being ripped off by our outdated, antique and unfair leasehold system.

“I’ve heard about so many different issues from local residents, whether it’s the failure to repair lifts, to tackle anti-social behaviour or crime or the spiralling insurance costs. So many residents locally have seen huge hikes in their service charges, while the ‘services’ provided only ever get worse.

“I know that those living in so-called ‘shared ownership’, who are generally on fixed salary levels, are facing an extremely hard time with their rent, mortgage payments and service charge all increasing, while many are unable to sell their properties when they want to move on. This increase in costs during a cost of living crisis is having a huge impact on so many people locally, including many working for the NHS, police and local schools.

“While the Governments new legislation introduces some much-needed changes it fails to go far enough and fails to end the injustice facing leaseholders in flats. That’s why I’ll continue to be a strong voice in Parliament for leaseholders locally and ensure the Government listen and address their concerns. ’’

Responding to criticism of the Bill from Ms Cadbury and other MPs, including Conservatives, Lee Rowley, the Minister for Housing, Planning and Building Safety said, “Our focus in the Bill is on being able to make practical progress—to make the Bill as practically useful as it can be—and then to have the greatest impact that it can have. Some, including hon. Members tonight, have said that it does not go far enough; others have said that we should return to first principles and seek to build the whole system again. I am sure that those hon. Members will make their case in Committee if they are part of it, and on Report and in subsequent stages. The Government seek to have a proposition on which can be built; one that is practical, achievable and makes a difference. The art of politics is about being able to make progress, and we think that the Bill will make a significant difference to people’s lives.”