Stephen Morgan MP has welcomed the announcement that leaseholders in Portsmouth will be given better protection from punitive hidden costs and rogue property agents.
Within her speech at this year’s Labour Party Conference, Housing Secretary Angela Rayner MP announced new Government measures set to benefit over 5 million existing leaseholders and future homeowners across the UK.
These leaseholders will benefit from stronger control, powers and protections as a result of the introduction of a cap on permission fees and administration charges for standard requests.
Under the current system, leaseholders can be forced to pay fees to get their landlord’s permission for simple requests like keeping a pet, with no certainty of costs and no clear oversight of the process.
Previous research has shown freeholders charged homeowners an average of £1,422 to enquire about installing double glazing, £887 to change the kitchen units, and £689 to replace the flooring. Some even faced charges for the pleasure of changing the blinds (£526) and installing a new front door (£410).
Other leaseholders have faced paying as much as £2,500 to build a conservatory, £252 to own a pet, £60 to replace a doorbell and £300 to erect a fence.
A cap on permission fees will also enable a clampdown on administrative fees, where landlords can charge for providing documents on request, such as building safety certificates, or for notifying them of a change in mortgage provider.
A public consultation will be launched on the scope of what should be capped and the amount for each item.
Alongside these measures, the Housing Secretary also Rayner announced that the Government would crack down on rogue property agents through the establishment of an independent regulator that would ensure better rights and protections for leaseholders, other homeowners and renters.
For the first time, agents will be required to get a license and qualifications to operate, and if they fall foul, their licenses will be removed.
The permission fee cap will be brought forward through the introduction of the landmark Commonhold and Leasehold Reform Bill later this year.
Through the Bill, the Labour Government is already legislating to end the sale of new leasehold flats, abolishing bitterly unfair forfeiture threats which currently allow freeholders to take properties from leaseholders, and capping ground rents at £250.
Commenting, Stephen Morgan, MP for Portsmouth South, said:
“Through these measures, Labour is ending the injustices within the current leasehold system, supporting Portsmouth’s leaseholders and demonstrating clearly whose side this party is on.
“As I have heard from local people, leaseholders in our city have found their dream of homeownership turning into a nightmare in recent years as a result of inaction from the Conservatives on this issue.
“This Government is calling time on this situation and will continue to take further measures to ensure that households across the UK have the stability that they need, putting power and money back in people’s hands.”
