Danny Beales

“I thank my hon. Friend the Member for Vauxhall and Camberwell Green (Florence Eshalomi) and the members of her Committee for their excellent pre-legislative scrutiny work, which we have heard about today. Since becoming an MP, one of the most common issues I hear from my constituents is the poor quality of service provided by managing agents to local leaseholders. When the boilers broke at Walsham Court and Hinds Court last November, residents tried to contact Anthem, but to no avail, and they were left without water for four weeks. Middlesex House residents were left without water for days, without extra support and supplies, until my office intervened. At Armstrong House, FirstPort has let the quality of communal areas deteriorate to a shockingly poor extent. I could go on for hours, but I have only three minutes to go. As Members have said, there are countless examples of service failure from managing agents. I welcome the Minister’s actions to date, and the proposals in the draft Bill to cap exploitative ground rents, which will save thousands of pounds over the lifetime of leases, pushing for service charge reform and transparency, and pushing for commonhold as the default form of tenure. These are long overdue changes. However, having seen these cases at first hand, I know that more is needed. My ten-minute rule Bill in the last Session proposed the establishment of an independent regulator of managing agents, modelled on the excellent recommendations of Lord Best’s 2019 report. I understand that the Government are willing to move on mandatory qualifications for managing agents—again, that is welcome —but I am concerned that, without an independent regulator to enforce codes of conduct and ensure we can reap the benefits of those qualifications, that will be of little benefit to many leaseholders. Furthermore, without a dedicated regulator, the burden of enforcement will continue to fall on individual leaseholders—and, in future, commonholders—to take up lengthy and expensive legal action to hold their managing agents to account. Three key benefits show why a managing agent regulator is desirable. First, good regulation is good for markets, and I think this will help growth, not hinder it. There are significant costs and financial waste in the current system, and the leasehold brand has been exceptionally damaged by the poor behaviour of managing agents. A regulator has the chance to restore confidence in leasehold and commonhold in the future. Secondly, introducing a regulator for managing agents would help ensure the success of the commonhold tenure. The need for managing agents will not go away with the introduction of commonhold. Thirdly, introducing a regulator for managing agents is strongly supported by those in the system, the customer—the leaseholder—and also the provider of services themselves. As the Chair of the Select Committee has mentioned, leaseholders overwhelmingly responded to the survey that they want to see this change, and the Property Institute, RICS and even the managing directors of FirstPort and Rendall & Rittner are all supportive of the need for more effective regulation and a regulator of managing agents. Those in the industry understand that there is nothing to gain from the poor behaviour of some undermining the good behaviour of many more. Yes, we need to take forward the existing important proposals in the draft Bill, but the time for the regulation of managing agents is now—in this Bill. It is vital that something is done and is clearly seen to be done before the next election for existing leaseholders struggling day in and day out with rogue managing agents. The establishment of a regulator would be a clear signal to existing leaseholders that we are serious about protecting them, as well as a signal to the property and construction sectors that this Government are focused on restoring stability to the housing market and, crucially, calling time on the poor practice of rogue managing agents, which are far too common in our system, finally fulfilling the promise of ending fleecehold for good.”