HC Deb 12 June 1991 vol 192 cc904-5
15. Mr. Sumberg

To ask the Secretary of State for the Environment whether he has any plans to introduce legislation to reform the law relating to leasehold property; and if he will make a statement.

Mr. Yeo

The commonhold proposals will have implications for the law in respect of leasehold flats, but we have no present plans for changes in respect of leasehold houses.

Mr. Sumberg

Is my hon. Friend aware that some of my constituents face appalling treatment from a company called Munny Ltd. in the Prestwich part of my constituency? They recently formed themselves into a residents' association, but the law needs to be strengthened. We need to move forward urgently on the commonhold front and I ask my hon. Friend to consider including it in the Queen's Speech later this year.

Mr. Yeo

I appreciate my hon. Friend's concern and join him in condemning the antics of certain bad freeholders in his constituency. My hon. Friend's constituents are extremely fortunate to have such a vigorous champion of their interests in the House. The ultimate protection in such cases is to be found in the right of all leaseholders of houses to purchase their freehold, subject, of course, to the value of the property. Through the Landlord and Tenant Act 1988 we have greatly strengthened the rights of leaseholders in houses.

Mr. Flynn

I draw the Minister's attention to the case of some of my constituents, whose leasehold was sold by one company for £800 and then offered by another for £3,500, three months later. They had no help from the law. Is not it time that leasehold, which has been the scourge of south Wales housing for 150 years, was done away with, because it serves no useful purpose, except to allow speculators to make money out of people's homes?

Mr. Yeo

As I said, the ultimate sanction lies in the right of leaseholders to purchase the freeholds of their houses if they fall within the right limits. Nothing in law prevents the freeholder from selling the freehold to another purchaser if he so wishes. That right is exercised by a large number of people under satisfactory circumstances and we have no plans to change the law.