“(1) In the LTA 1985, after section 30J (as inserted by section 35) insert—

30K Sales information requests

(1) A tenant of a dwelling under a long lease may give a sales information request to the landlord.

(2) A “sales information request” is a document in a specified form, and given in a specified manner, setting out—

(a) that the tenant is contemplating selling a long lease of the dwelling,

(b) information that the tenant requests from the landlord for the purpose of the contemplated sale, and

(c) any other specified information.

(3) A tenant may request information in a sales information request only if the information is specified in regulations made by the appropriate authority.

(4)The appropriate authority may specify information for the purposes of subsection (3) only if the information could reasonably be expected to assist a prospective purchaser in deciding whether to purchase a long lease of a dwelling.

(5) The appropriate authority may by regulations provide that a sales information request may not be given until the end of a particular period, or until another condition is met.

(6) Regulations under this section—

(a) are to be made by statutory instrument;

(b) may make provision generally or only in relation to specific cases;

(c) may make different provision for different purposes;

(d) may include supplementary, incidental, transitional or saving provision.

(7) A statutory instrument containing regulations under this section is subject to the negative procedure.

30L Effect of sales information request

(1) A landlord who has been given a sales information request must provide the tenant with any of the information requested that is within the landlord’s possession.

(2) The landlord must request information from another person if—

(a) the information has been requested from the landlord in a sales information request,

(b) the landlord does not possess the information when the request is made, and

(c) the landlord believes that the other person possesses the information.

(3) That person must provide the landlord with any of the information requested that is within that person’s possession.

(4) A person (“A”) must request information from another person (“B”) if—

(a) the information has been requested from A in a request under subsection (2) or this subsection (an “onward request”),

(b) A does not possess the information when the request is made, and(c)A believes that B possesses the information.

(5) B must provide A with any of the information requested that is within B’s possession.

(6) A person who is required to provide information under this section must do so before the end of a specified period beginning with the day on which the request for the information is made.

(7) A person who—

(a) has been given a sales information request or an onward request, and

(b) as a result of not possessing the information requested, does not provide the information before the end of a specified period beginning with the day on which the request is made, must give the person making the request a negative response confirmation.

(8) A “negative response confirmation” is a document in a specified form, and given in a specified manner, setting out—

(a) that the person is unable to provide the information requested because it is not in the person’s possession;

(b) a description of what action the person has taken to determine whether the information is in the person’s possession;

(c) any onward requests the person has made and the persons to whom they were made;

(d) an explanation of why the person was unable to obtain the information, including details of any negative response confirmation received by the person;

(e) any other specified information.

(9) A person who is required to give a negative response confirmation must do so before the end of a specified period beginning with the day after the day on which the period referred to in subsection (7)(b) ends.

(10) The appropriate authority may by regulations—

(a) provide that an onward request may not be made until the end of a particular period, or until another condition is met;

(b) provide for how an onward request is to be made;

(c) make provision as to the period within which an onward request must be made;

(d) provide for circumstances in which a duty to comply with a sales information request or an onward request does not apply;

(e) make provision as to how information requested in a sales information request or an onward request is to be provided;

(f) make provision for circumstances in which a period specified for the purposes of subsection (6), (7) or (9) is to be extended.

(11) Regulations under this section—

(a) are to be made by statutory instrument;

(b) may make provision generally or only in relation to specific cases;

(c) may make different provision for different purposes;

(d) may include supplementary, incidental, transitional or saving provision.

(12) A statutory instrument containing regulations under this section is subject to the negative procedure.

30M Charges for provision of information

(1) Subject to any regulations under subsection (2), a person (“P”) may charge another person for—

(a) determining whether information requested in a sales information request or an onward request is in P’s possession;

(b) providing or obtaining information under section 30L.

(2) The appropriate authority may by regulations—

(a) limit the amount that may be charged under subsection (1);

(b) prohibit a charge under subsection (1) in specified circumstances or unless specified requirements are met.

(3) If a landlord charges a tenant under subsection (1), the charge—

(a) is an administration charge for the purposes of Schedule 11 to the Commonhold and Leasehold Reform Act 2002 (see paragraph 1(1)(b) of that Schedule), and

(b) is not to be treated as a service charge for the purposes of this Act.

(4) For the purposes of the provisions of this Act relating to service charges, the costs of—

(a) determining whether information requested in a sales information request or an onward request is in a person’s possession, or

(b) providing or obtaining information under section 30L,are not to be regarded as relevant costs to be taken into account in determining the amount of any variable service charge payable by any tenant.

(5) Regulations under this section—

(a) are to be made by statutory instrument;

(b) may make provision generally or only in relation to specific cases;

(c) may make different provision for different purposes;

(d) may include supplementary, incidental, transitional or saving provision.

(6) A statutory instrument containing regulations under this section is subject to the negative procedure.

30N Enforcement of sections 30L and 30M

(1) A person who makes a sales information request or an onward request (“C”) may make an application to the appropriate tribunal on the ground that another person (“D”) failed to comply with a requirement under section 30L or 30M in relation to the request.

(2) The tribunal may make one or more of the following orders—

(a) an order that D comply with the requirement before the end of a period specified by the tribunal;

(b) an order that D pay damages to C for the failure;

(c) if D charged C in excess of a limit specified in regulations under section 30M(2)(a), an order that D repay the amount charged in excess of the limit to C;

(d) if D charged C in breach of regulations under section 30M(2)(b), an order that D repay the amount charged to C.

(3) Damages under subsection (2)(b) may not exceed £5,000.

(4) The appropriate authority may by regulations amend the amount in subsection (3) if the appropriate authority considers it expedient to do so to reflect changes in the value of money.

(5) Regulations under this section—

(a) are to be made by statutory instrument;

(b) may make provision generally or only in relation to specific cases;

(c) may make different provision for different purposes;

(d) may include supplementary, incidental, transitional or saving provision.

(6) A statutory instrument containing regulations under this section is subject to the negative procedure.

30P Interpretation of sections 30K to 30N

(1) In sections 30K to 30N—

“information” includes a document containing information, and a copy of such a document;

“landlord” includes—

(a) any person who has a right to enforce payment of a service charge;

(b) a RTM company within the meaning of Chapter 1 of Part 2 of the Commonhold and Leasehold Reform Act 2002 (see section 73 of that Act);

“long lease” has the same meaning as in Chapter 1 of Part 2 of the Commonhold and Leasehold Reform Act 2002 (see sections 76 and 77 of that Act);

“onward request” has the meaning given in section 30L(4)(a);

“sales information request” has the meaning given in section 30K(2);

“specified” means specified in, or determined in accordance with, regulations made by the appropriate authority.

(2)A reference in sections 30K to 30N to purchasing a long lease is a reference to becoming a tenant under the lease for consideration, whether by grant, assignment or otherwise, and references to selling a long lease are to be read accordingly.

(2) In section 172(1) of the CLRA 2002 (application to Crown of provisions of the LTA 1985), after paragraph (ac) (as inserted by section 35) insert—

“(ad) sections 30K to 30P of the 1985 Act (sales information requests),”.’”—

This new clause, to be inserted after NC9, would require a landlord to provide specified information to a tenant, in anticipation of the tenant selling their property, within a specified time and at a specified cost, and request that information from other parties.

Brought up, and read the First time.

I beg to move, That the clause be read a Second time.

With this it will be convenient to discuss the following:

Government new clause 43—Estate management: sales information requests.

Government new clause 44—Effect of sales information request.

Government new clause 45—Charges for provision of information.

Government new clause 46—Enforcement of sections (Effect of sales information request) and (Charges for provision of information).

New clause 42 will introduce a requirement for a landlord to provide specific information requested by a leaseholder. That information is vital for a leaseholder to enable the sale of their property; it also provides the detail that a prospective purchaser needs to make an informed decision. Regulations will set out what information is to be provided, as well as a maximum timeframe and a maximum cost for providing that information. Regulations will further specify how a request must be made, how the requested information must be provided, in what circumstances a request can be refused and when the time period for its provision may be extended. The clause also sets out enforcement mechanisms, including the various orders that a tribunal may make such as requiring compliance, awarding damages and requiring the repayment of excessive fees.

Under the current system, there is no consistency for leaseholders, some of whom are left paying thousands of pounds and waiting months for this information. Some of them never receive the information at all. The clause will reduce the time that leaseholders have to wait to receive the information that they need, which should reduce delays in selling their properties. It will also make the selling process cheaper and less uncertain. I commend new clause 42 to the Committee.

I turn to new clause 43. There is currently no obligation for an estate manager to respond to a sales information request from a homeowner who wishes to sell their property. Although many estate managers do provide information in a timely manner, failures by some managers mean that it can take weeks or months for homeowners on freehold estates to receive the information that they need, if they receive it at all.

The new clause, along with new clauses 44, 45 and 46, will provide for a fairer, more streamlined system in which homeowners can get the information they need when they need it. It will introduce a requirement for an estate manager to provide specific information requested by a homeowner who intends to sell their property. Subsection (2) will require the request to be set out in a specified form and given in a specified manner. This will ensure that the estate manager can confirm that it is indeed a request for sales information, rather than a general request for information. The information will be specified in regulations but must relate to estate management, estate managers, estate management charges or relevant obligations, and must be reasonably expected to help a prospective purchaser to decide whether to purchase a property. We intend to work with estate managers, homeowners and other stakeholders when preparing the regulations, to ensure that we capture the right level of detail. I commend new clause 43 to the Committee.

New clause 44 will introduce a requirement for an estate manager to provide sales information requested by a homeowner on a freehold estate, within a timeframe set out in regulations. Subsections (2) and (3) will require estate managers to request from another party information that they do not hold, if they consider that the other party holds it; the other party must provide the information that they possess. Subsections (4) and (5) will place an additional obligation on the other party to forward on the request if it does not hold the information; the further party must provide the information that it possesses.

Subsection (6) requires that the information must be requested within a specified period. Subsection (7) states that if a person receives a request but does not hold the required information, they must confirm to the person who made the request that they do not hold that information. This is called a negative response confirmation. The negative response confirmation should detail that the individual does not hold the information and the actions taken by the individual to determine that. Subsection (10) allows regulations to set out the detail of how the process for making onward requests for information should work.

New clause 44 will create the framework for ensuring that relevant sales information is provided in a timely manner, and will cut the time that it takes for a homeowner to receive sales information. I commend it to the Committee.

I turn to new clause 45. Estate managers have considerable discretion as to what they can charge for collating and providing sales information. This means that homeowners can often be left paying an excessive amount. The new clause will allow for a maximum fee to be set out in regulations and will introduce a maximum fee for onward requests for information. The new clause also sets out that any cost incurred by the homeowner for the provision of sales information by the estate manager is to be an administration charge and should not be treated as an estate management charge. I commend it to the Committee.

I turn to new clause 46. Under the current arrangements, homeowners often feel powerless when information is not forthcoming or if they are charged what they consider an extortionate fee for obtaining it. New clause 46 will introduce an enforcement mechanism where sales information has not been provided or where the cost charged has exceeded the maximum permitted cost. Subsection (2) will allow a homeowner who has made a sales information request or an individual who has made an onward request to make an application to the relevant tribunal. The tribunal, in turn, may make one or more orders. This includes an order that the estate manager or other party provide the sales information within a specified time frame.

New clause 46 will also allow the tribunal to award damages of up to £5,000 to the homeowner or person making the onward request. In cases of overcharging, the tribunal may require the excess amount to be repaid or, where there has been a charge in breach of regulations, may require the full amount to be repaid. I commend the new clause to the Committee.

I rise to say simply that the Opposition welcome this group of Government new clauses.

I, too, welcome the new clauses, but I do so in the knowledge that they do not provide a perfect solution. My concern, and the question I put to the Minister, relates to situations such as the one that I outlined the other day. Where information is held by a series of Russian dolls, as it were, the ultimate one of which is located in the Cayman Islands—as is the case with Wembley Central Apartments in my constituency—what ultimate redress do the leaseholders have? Damages does not get to the nub of the problem.

As the hon. Member has outlined, we spoke about this issue on Thursday. I have a lot of sympathy for the point that he makes, and I think we agreed that we would explore it further; I was going to write to the hon. Gentleman and the Committee, if I recall correctly. He is right to raise and highlight that point. Where we can make further progress, we should try to do so. As I know he will appreciate, there is ultimately a challenge when entities move out of jurisdictions, but that should not mean that we should not have a look at whether we can make things better, if not perfect.

Question put and agreed to.

New clause 42 accordingly read a Second time, and added to the Bill.