My Lords, I beg leave to ask the Question standing in my name on the Order Paper. I declare my interests as set out in the register and the fact that I am a leaseholder.
My Lords, we are committed to making enfranchisement simpler and cheaper for leaseholders. We will abolish marriage value, cap the treatment of ground rents in the enfranchisement calculation and prescribe rates to be used, saving some leaseholders thousands of pounds. An online calculator will also be introduced to make it simpler for leaseholders to find out how much it will cost them to enfranchise. We are due to bring forward further leaseholder reforms later in this Parliament.
My Lords, there is a specific problem with any lease extension granted in blocks of flats after 14 February 2022, as they are not protected by the Building Safety Act 2022. When will that be put right? Secondly, the Minister will have seen the interview her predecessor—the noble Lord, Lord Greenhalgh—gave to the Leasehold Knowledge Partnership on 14 April, which raised grave doubts about the promised leasehold reform Bill being in the King’s Speech. Does she understand the concern and worry that has caused leaseholders, and will she bring those worries and concerns to the attention of the Secretary of State?
My noble friend—or, rather, the noble Lord opposite; the number of times he brings this Question means I think of him as a friend —is quite right that, if you are a qualifying leaseholder and extend or vary your lease, you may surrender your existing lease and be granted a new lease. As the new lease will not have been granted before 14 February 2022, the statutory leaseholder protections in the Building Safety Act will not apply. We are looking to legislate to resolve this issue as soon as parliamentary time allows. In the meantime, before seeking a new extended or varied lease, leaseholders should seek legal advice and seek to come to agreements with landlords to apply the same protections as contractual terms.
I am very sorry, but I did not answer the second question. He asked whether I would bring the letter to leaseholders from the noble Lord, Lord Greenhalgh, to the attention of the Secretary of State. I have already done so.
My Lords, further to the Answer which my noble friend has just given to the noble Lord, Lord Kennedy, will the protection to which my noble friend has just referred be retrospective so those leaseholders who extended their leases after February last year will get the protection she referred to?
I thank my noble friend for that question. As I say, we are looking at how we can protect it. On whether it is retrospective or not, I will have to write to my noble friend.
Is my noble friend aware that the general tenor of the Answer she has given this afternoon is enormously welcome and a demonstration of the statements made in the last 12 months that our Government believe in not only modernising leasehold but the whole structure of the housing market in the United Kingdom?
I thank my noble friend for that question—or statement, I think. Yes, we have made it very clear all along, in answering every question that I have been asked at this Dispatch Box, that we are going to bring forward further leasehold reform and it will be in this Parliament.
My Lords, my recent experience of helping leaseholders in a retirement block near me leads me to ask: does the Minister accept that going to the final arbiter of leasehold disputes, which is the First- tier Tribunal, is a long, off-putting, expensive, complex process? Can she reassure us that, when the renters reform Bill finally arrives, it will address this unsatisfactory service which, I can bear testimony to, really is a serious detriment to leaseholders seeking fair treatment?
Certainly, we will be looking at the First-tier Tribunal issue, as we will be looking at all issues, when we get to the leaseholders Bill and the private renters reform Bill.
My Lords, when this new legislation gets published, can the Minister ensure that the exemptions on certain pretty ordinary houses on the Isles of Scilly, which the Duchy of Cornwall has opposed for so many years, will be included and they will be able to buy their leases like everybody else? I would have mentioned it to His Majesty this morning, but my train was late.
I thank the noble Lord for that question. I am afraid I cannot tell him whether the few cottages on the Isles of Scilly that he refers to will be covered, but I am sure he will ask further questions during the passage of that Bill.
My Lords, over 20 years ago we introduced the law of commonhold, and I think I contributed to a textbook on the subject as a junior barrister. In the years since, I think only about 20 commonholds have been established. I know the Law Commission looked at this a couple of years ago, and commonhold is designed to be a better alternative to leasehold without the complications. Can the Minister explain what is happening to update commonhold and to encourage the adoption of it?
The noble Earl brings up a very interesting point. Commonhold, as he knows, allows home owners to own the freehold of a unit, such as a flat, within buildings and it is commonplace in places such as Australia, New Zealand, the US and Canada. Unlike leasehold, commonhold does not run out, there is no third-party landlord and owners are in control of the costs and decisions affecting the management of their buildings. Commonhold was introduced in this country in 2002, but for some reason it has not taken off and, as the noble Earl says, there are currently fewer than 20 commonhold developments. In 2020, the Law Commission recommended reforms to reinvigorate commonhold as an alternative to leasehold ownership, and the Government are looking at this and will respond in due course.
Would my noble friend agree that, with the shortage of leasehold properties and the extensive number of good landlords that there are across the country, it is important, when we have the new legislation, to ensure that not only are tenants protected—because of course, rightly, they must have protection in their own homes—but we are careful about the balance around putting too much burden on landlords to the extent that we may drive good ones out of the market? I declare my interests as set in the register.