Peter Lamb

“I very much welcome, as I am sure do most of colleagues on the Labour Benches, the Government’s actions so far on commonhold and leasehold, and I look forward to their further steps. Today, I would like to speak to the issue of property management agents, particularly in the context of unadopted estates. As with so many issues, the fundamental problem here is a lack of housing. Despite the enormous actions taken by this Government to get the housing market moving, the reality is that housing delivery collapsed in the wake of the 1984 housing legislation. Anyone who looks at a graph of housing delivery since that point can see that the mass exit of the state from the direct delivery of housing has never come close to being replaced by the private sector. That is one reason why I was very excited this week to see the Secretary of State’s comments on the potential mass re-entry of this Government into housing delivery. It is one of the very few things that could resolve the issue, because we have a broken market. People are forced to accept unreasonable housing conditions because they have no choice. Until we resolve the broken market, we will continue to have various forms of exploitation. The reality is that developers—there are good developers and bad developers—will, overwhelmingly, seek to minimise their costs as far as possible, whatever the impact on the communities they are creating. If we allow poor practices to be possible within the law, we will see poor practices being delivered by these people. We need to be mindful, of course, that regulation has an impact. As someone who has delivered local plans, I can tell hon. Members that I was always very mindful of the requirements I was putting on developers, because I knew that every single requirement was an affordable house being taken out of the system. As legislators, I think we have sometimes been a bit careless with unnecessary additional requirements. We must ensure that regulation is proportionate, but in this case it very much is. I have been dealing with the issue of unadopted estates for the better part of two decades now, and no worse example exists in my experience than that of Forge Wood. It is part of a new town that has all the services that the neighbourhood principal should deliver for a neighbourhood, but unlike in my other neighbourhoods the residents of Forge Wood are all having to pay for them a second time: once through their council tax and a second time through their management agency, with a fee that rivals the level of district authority council tax. They are paying more for fewer services. There are questions over the nature of the contracts and the contractors that are brought in. If we look at any of those property management agencies, the company secretaries are registered to hundreds, if not thousands, of such companies. How effective can someone be when they are registered as secretary for thousands of companies? It is frankly little more than fee farming from residents for no benefit. I have gone through the articles of association to try and find ways for residents to wrest back control, but the complexities mean that these people are completely unaccountable. It masquerades as ownership by those communities, while delivering an unaccountable system. What should we do? The Government’s existing proposals are an improvement, and I welcome the Committee’s recommendation of the independent regulator, which should come into effect. On the issue of unadopted estates, ultimately, we now have to turn off the tap. We need to establish fixed conditions and fees, so that they are all adopted at the point they are completed and handed over to local authorities. We also need to establish a pathway for existing unadopted estates to be taken on by the state, with a need for local authorities to plan how they bring them in. I believe it is possible to adopt them within the existing system and within financial constraints. However, we cannot do that while running up a flag to tell every developer in the country to ditch their responsibility to get the estates adopted. I am pleased by the recommendations before us, but further action is needed on an independent regulator and on turning off the tap on unadopted estates.”