Leasehold and Freehold Reform Bill – in a Public Bill Committee am 3:00 pm ar 30 Ionawr 2024.
“(1) The Secretary of State may by regulations make such amendments and modifications of the Acts specified by subsection (2) as in the Secretary of State’s opinion facilitate, or are otherwise desirable in connection with, the consolidation of the whole or a substantial part of the Acts relating to—
(a) the relationship between landlords and tenants of residential properties;
(b) the relationship between estate managers and the freeholders and leaseholders of properties in relation to which they carry out estate management.
(2) The Acts specified by this subsection are—
(a) the Leasehold Reform Act 1967;
(b) the Rentcharges Act 1977;
(c) the Landlord and Tenant Act 1985;
(d) the Leasehold Reform, Housing and Urban Development Act 1993;
(e) the Commonhold and Leasehold Reform Act 2002;
(f) the Building Safety Act 2022;
(g) the Leasehold Reform (Ground Rent) Act 2022;
(h) this Act;
(i) any other provision of an Act relating to—
(i) the relationship between landlords and tenants of residential properties;
(ii) the relationship between estate managers and the freeholders and leaseholders of properties in relation to which they carry out estate management.
(3) For the purposes of this section, ‘amend’ includes repeal (and similar terms are to be read accordingly).
(4) Regulations made under this section do not come into force unless an Act is passed consolidating the whole or a substantial part of the Acts relating to—
(a) the relationship between landlords and tenants of residential properties;
(b) the relationship between estate managers and the freeholders and leaseholders of properties in relation to which they carry out estate management.
(5) If such an Act is passed, any regulations made under this section come into force immediately before the Act comes into force.
(6) Regulations under this section are subject to the affirmative procedure.”—
This new clause would make provision for the Secretary of State to amend certain Acts (insofar as they relate to the relationship between landlords and tenants of residential properties and the relationship between estate managers and the freeholders and leaseholders of properties in relation to which they carry out estate management) if the amendments would facilitate consolidation of those Acts.
I beg to move, That the clause be read a Second time.
I do not intend to press new clause 26 to a vote, because it is very much a probing amendment. My remarks on it will be brief because it is extremely simple and straightforward.
Leasehold enfranchisement and the right to manage are extremely complex areas of law. There are at least eight Acts relevant to the rights of residential leaseholders, namely the Leasehold Reform Act 1967, the Landlord and Tenant Acts 1985 and 1987, the Housing Act 1988, the Local Government and Housing Act 1989, the Leasehold Reform, Housing and Urban Development Act 1993, the Commonhold and Leasehold Reform Act 2002 and the Building Safety Act 2022. There are also two Acts relevant to residential freeholders on private and mixed-tenure estates, namely the Rentcharges Act 1977 and the Law of Property Act 1925, both of which we have debated extensively.
This limited Bill has made significant changes to almost all of those Acts. If and when it receives Royal Assent, it will add a further layer of complexity and interpretation to a legislative landscape that is perplexing even to those with legal training. The law as it relates to residential and freehold leaseholders is crying out for consolidation. The statute law must be made clearer, shorter and more accessible so that those who work with the law, are concerned with making it or need to access or use it can do so more easily.
This is not a consolidation Bill, but the Opposition believe that it would be useful to give the Secretary of State the power to amend a number of the Acts to which I referred, so as to facilitate their consolidation. I trust that the Minister will see the benefit of incorporating such a power into the Bill, and I hope that he will accept it.
I am grateful to the hon. Member for Greenwich and Woolwich for moving new clause 26. He is right that this is an extremely complicated area of law and that there is a significant amount of interaction and overlap between the relevant legislation, which has built up over many decades. He is also right that there is a legitimate question to be asked about whether consolidation or spring cleaning of the relevant Acts is reasonable and proportionate. I am grateful to him and his party for seeking to provide the Government with additional powers to do so. The challenge is in whether that would be proportionate and whether the broad powers are necessary, even given the points that he made.
While I understand the points that the hon. Gentleman highlighted, the Government are taking a self-denying ordinance. We believe that such broad powers should be used only when absolutely necessary and that the test is not met in the case, so we will resist the new clause if the hon. Gentleman chooses to press it, although I hope that, as he indicated, he will not do so.
I commend the Minister for continuing to deny himself additional powers to do very sensible things. Notwithstanding that self-denying ordinance, I hope that he will at least take on board the point and give some further consideration to how we might tidy up the statute law in this area. It has been complex for all members of the Committee to understand. As I said, it is complex even for those with legal training, let alone those who need to access or use the law, whether or not it is through one of the means of redress we have been debating.
I hope that the Government will give some further thought to what might be done on the issue, but I beg to ask leave to withdraw the motion.