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You are here: Home / Latest News / Government action on leasehold scandal has been ‘too weak and too slow’, says John Healey

Government action on leasehold scandal has been ‘too weak and too slow’, says John Healey

November 7, 2018 //  by Sebastian O'Kelly

… And demands inquiry into mis-selling of leasehold homes

Labour shadow communities secretary John Healey attacked government inaction over the leasehold scandal this week.

He told the Commons that government action had been:

“too weak and too slow and, critically, largely overlooks the plight of existing leaseholders. An industry survey shows that six in 10 leaseholders did not even know what being a leaseholder meant until after they had bought, and that nine in 10 regret having bought a leasehold at all.

“Those are classic signs of mis-selling—it is a national scandal. I will give the Secretary of State another chance: when will he stand up for leaseholders and launch an inquiry into mis-selling?”

James Brokenshire replied:

“Nobody is ignoring the issue. That is not only why we are legislating to address the inappropriate use of leasehold for new homes, but why I have underlined today the requests that I have made of the Solicitors Regulation Authority and the Competition and Markets Authority. We recognise that there are serious issues, which is why we are taking action. We want to ensure that leaseholders’ concerns are heard and fully understood, and that redress can be provided.

Mr Healey had told the House: “Many of us have constituents who bought their home but then found that they do not own it and feel ripped off by unfair leasehold contracts.

“When we hear, repeatedly, that leasehold buyers did not choose their own solicitor, were wrongly told that they could buy their freehold cheaply at any time, or found out later that they had to ask and pay freeholders for permission to own a pet, change their carpets or build a conservatory, the individual cases add up to something bigger.

“The Government must act, just as with other mis-selling scandals, such as on pensions, mortgages or payment protection insurance.”

Related posts:

John HealeyJohn Healey blasts the government over lack of support for existing leaseholders as Tory backbench unease grows Labour to cap ‘legalised extortion’ of ground rents and end leasehold houses … Opposition and government now compete to reform leasehold John Healey says it’s ‘wrong’ for leaseholders to have to pay to remove Grenfell cladding If government co-operated we could fix the leasehold scandal, says Labour MP Justin Madders Park home owners: government action better than expected (well, that’s sort-of positive)

Category: Latest News, News, ParliamentTag: James Brokenshire MP, John Healey MP

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Reader Interactions

Comments

  1. Nikki

    November 7, 2018 at 3:03 pm

    What government action on leasehold are we talking about. Words yes but no action.

    What happened to Sajid Javid’s promise to millions of leaseholders for new and existing ground rents to be set at zero. Consumers are being lied to by the revolving Housing Ministers.

    • stephen

      November 7, 2018 at 6:04 pm

      Sajid Javid promised that ground rent in new leasehold terms would be set to zero.

      They have always been quite clear that existing ground rents will not be effected

      • Nikki

        November 8, 2018 at 9:11 am

        Javid said he would end ‘feudal practices’ but did nothing. Brokenshire is doing his best to bury bad news and pretending that Grenfell cladding is not really a problem because the freeholders are putting it right. Talk about fake news.

        Every day developers and housing associations are selling new builds on Help to Buy with high ground rents that increase by RPI every 10 years. No change just words.

        Don’t know why this government does not support the leasehold consumer. More Labour MPs should be supporting the APPG and the consumer.

    • June A. Van Orman

      November 9, 2018 at 11:34 am

      There has been little or no support from the Government to stop this corruption of Leasehold. Why is Government not cancelling all leasehold instead of pretending to curtail only new ones? Why are some of our Politicians and wealthy foreign nationals, shareholders of this Leasehold Scam? Why is only decent land and very expensive houses, many detached, being offered for leasehold with government help? Why is this charade being, not only allowed, but increasing?Why are not the fair minded and decent Politicians speaking out?

  2. Nicholas

    November 7, 2018 at 7:34 pm

    John Healey came across really strong in that. He should own this issue and start to develop a bold offering to leaseholders.

    There is no way this government will really do what is required on leasehold and commonhold reform unless the Labour Party starts an arms race.

  3. S McDonald

    November 7, 2018 at 8:43 pm

    All members of the Labour Party need to be members of the APPG on leasehold reform and keep the leasehold scandal in the spotlight.

    Government has the authority to introduce retrospective legislation to abolish leasehold, why hasn’t it done this ?

    We have had enough consultations, we need legislation.

    • Fiona

      November 7, 2018 at 8:59 pm

      I completely agree.

  4. Alec

    November 8, 2018 at 12:27 pm

    EXISTING leaseholders possess the independent statutory right to extend their leases by 90 years with Ground Rent reducing to zero.

    And it is welcome news that reduction of Ground Rent to zero is also envisaged for new properties.

    Any suggestion that a handful of individuals/freeholders can unilaterally manipulate existing law and structure an arrangement whereby gullible and vulnerable existing leaseholders are lured into a Deed of Variation of their existing leases so as to create a lucrative income stream for the unscrupulous from continuing Ground Rent.

    And the suggestion from James Brokenshire that a nominal ground rent of £10 pa be considered is seriously misplaced (as noted by Private Eye) as it would simply allow for continuance of the disgraceful and criminal practices that, due to lack of proper regulation, are endemic in this muddy, murky, and unscrupulous industry.

  5. Alec

    November 8, 2018 at 12:32 pm

    correction:

    3rd para…

    Should end, “…from continuing Ground Rent, must be dismissed forthwith. “

  6. Valerie Parnell

    November 8, 2018 at 5:15 pm

    Our Government should be looking into this as a matter of urgency. Leaseholders and there are hundreds of thousands of us deserve to be protected. We did not ask for this and it is insanity to think those of us who have worked so hard to own our own homes are yet again being punished for it. We were encouraged years ago to buy and invest in our homes and yet again find ourselves in a position of worry and stress as to where we will end up. It is a
    National scandal and needs to be addressed as such

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