§ 2.50 p.m.
§ Baroness Gardner of Parkes asked Her Majesty's Government:
§ Whether they are satisfied with the working of the Leasehold Valuation Tribunal and the basis of the appeals from that tribunal to the Lands Tribunal.
§ Baroness Farrington of RibbletonMy Lords, the leasehold valuation tribunals have provided an effective means of resolving a variety of disputes relating to leasehold property without the risks of high and uncertain costs associated with court proceedings. We shall be monitoring the operation of their recently introduced role in hearing service charge disputes and applications for the appointment of a manager. There has been some concern about appeals to the Lands Tribunal, which has the power to award costs. The procedures at the Lands Tribunal are kept under review, and, if it is decided that there is scope for change, interested organisations will be consulted. We are generally satisfied with the basis of appeals from the Leasehold Valuation Tribunal to the Lands Tribunal.
§ Baroness Gardner of ParkesMy Lords, I thank the Minister for that reply. Is she aware that there is an 956 anomaly as regards the right of appeal? Under the Housing Act 1996, leave to appeal from any decision must be obtained from the Leasehold Valuation Tribunal, whereas under the Leasehold Reform, Housing and Urban Development Act 1993, an appeal can be !edged on any ground? Does she know that the Leasehold Advisory Service is extremely concerned that unscrupulous landlords are using that right of appeal as an intimidatory tactic to worry tenants into agreeing higher prices than those determined by the tribunal? Will the Government consider rectifying that anomaly?
§ Baroness Farrington of RibbletonMy Lords, we are aware of concerns that different rules apply to appeals relating to service charge disputes and applications for the appointment of manager under the Housing Act 1996. In those cases, there is a requirement to seek leave to appeal from either the Leasehold Valuation Tribunal or the Lands Tribunal. In other cases, there is an unqualified right of appeal. The Government are committed to leasehold reform and plan to issue a consultation paper later this year. That will provide an opportunity to consider the working of the leasehold valuation tribunals and the arrangements for appeals against their decisions.
§ Lord AcknerMy Lords, is the Minister aware that the problem to which attention has been drawn arises quite simply from the situation that the opportunity to act with oppression is given to a landlord where an appeal is of right? Where an appeal requires the leave of either the tribunal or the Lands Tribunal, that opportunity does not occur because of the conditions that can be appended to leave to appeal. Will not the Government consider urgently making leave to appeal to the Lands Tribunal a requirement in every case?
§ Baroness Farrington of RibbletonMy Lords, as I tried to explain to the noble Baroness, Lady Gardner of Parkes, we are aware of the concerns which have been raised in this field. We have a manifesto commitment to introduce commonhold reform and we appreciate that the two areas of leasehold and commonhold reform need to be considered together because they are closely connected. Therefore, we shall consider those matters in due course.
§ Baroness Gardner of ParkesMy Lords, will the Minister tell the House whether she is aware of the fact that Judge Marder, who is president of the Lands Tribunal, has issued guidance for those seeking to appeal under the 1996 Act, which is the one which requires leave to appeal. In that guidance he says:
It may be appropriate to refuse leave to appeal where there is no substantive point at issue between the parties and the application appears to be oppressive, eg, where the application appears to be exploiting deeper pockets in order to deter other parties from asserting their rights".Does not the Minister think that fear of the enormous cost which could be involved for ordinary people in being forced to answer an appeal at the Lands Tribunal is a very real deterrent for many people?
§ Baroness Farrington of RibbletonMy Lords, we are aware of those concerns and are aware also of the 957 points which are being raised. We are monitoring the situation closely and we shall seek to act in the appropriate way, as necessary.