Leasehold Reform: Integrated Retirement Communities

7. What assessment he has made of the potential impact of planned reforms to leasehold on integrated retirement communities.

On 19 March, we published a full impact assessment for the draft Commonhold and Leasehold Reform Bill. The hon. Gentleman will be aware that we are also consulting on precisely how to introduce a ban on the use of leasehold for new flats, including in respect of issues such as scope, transitional arrangements and exemptions.

Wixams retirement village in Mid Bedfordshire is a wonderful, integrated retirement community, but I understand from the sector and the industry that that business model is under threat from the Government’s leasehold reforms. Given the important role that these communities can play in reducing social care costs for our local authorities, and the fantastic option they represent for older constituents, will the Minister commit to look again at the specific impacts of leasehold reform on the integrated retirement sector, particularly to give stability and predictability to investors so that they can invest in future schemes?

I thank the hon. Gentleman for his well-judged question. Let me reassure him that the Government understand the distinct operational and financial models that underpin specialist retirement housing, and that we recognise the important role that integrated retirement community operators play in providing high-quality housing for older people. As he is hopefully aware, the way in which the retirement housing sector functions in a world in which commonhold is the default tenure, and whether some kind of exemption is required, are among the many questions we are seeking feedback on in our consultation on moving to commonhold and banning leasehold for new flats. I encourage him and any operators in his constituency to engage with that consultation.

I thank the Minister for his work on this issue. I am working to make sure that the managing agent Freshwater will meet me to talk about its service charges. Does he agree that it is important that managing agents meet representatives in order to tackle these high levels, and to ensure that they are prepared for this Government’s reforms? I also have a real concern about the impact of high service charges on the long-term sustainability of the leasehold model for people who are choosing to retire into leasehold properties.

I absolutely agree with my hon. Friend. High and rising service charges are putting unprecedented financial pressure on leaseholders. They are also causing more and more issues with mortgages and remortgaging processes. On her point about managing agents: yes, managing agents absolutely should meet with residents who have concerns, either collectively or individually.