Leasehold Reform — House of Commons, 2019-07-11
Topic: Housing
Chinyelu Susan Onwurah (Labour, Centre-left): I congratulate the Select Committee on its report. The fact that in 2019 so many British people owe their homes to a feudal property relationship is absolutely astonishing. I am proud that the Labour party has announced that it will end this ancient and anachronistic practice and ensure justice for leaseholders I want to use the brief time that I have to highlight the ongoing misery of constituents whose case I raised in my Adjournment debate of 1 November 2017; one is watching here today. As you know, Mr Speaker, the St Thomas area of Newcastle is one of the most beautiful parts of what is a very beautiful city. It has a large number of fine houses that anyone would be proud to call home, but for some they have become a prison—the families with children uncertain whether they can afford to pay mortgages that they cannot change; a refugee whose family have outgrown their home but who cannot sell it; a pensioner who wants to move to be near her grandchildren but cannot do so; and a couple in their 70s faced with six flights of stairs and rising maintenance costs. The charity that owns the freehold, the St Mary Magdalene and Holy Jesus Trust, refuses to extend their leases or sell the freehold. The trust was formed to support the Freemen of Newcastle, who also date from feudal times and the ancient guilds of our city. Today they are not generally considered to be among the poorer members of our society. Section 172 of the Housing Act 1985 restricts the 1967 legislation to exempt charities from selling or extending the lease of houses on their land. The National Trust is in a similar position and, in response to the Committee’s consultation, offered to buy back properties whose freehold it did not want to sell. In the past, the Mary Magdalene Trust has offered to sell the freehold, but more recently it has changed its position, apparently to maximise its land assets. In so doing, it is causing misery The Minister is familiar with the situation and in the past has reassured me that a solution was in the works. My constituents had their hopes raised when it was reported that the trust was willing to sell the freehold, but in fact it was willing to charge residents thousands of pounds just to consider the option of perhaps allowing them to extend their leases for tens of thousands of pounds more. I hope the Minister will condemn that behaviour by the trust I also hope that the Minister will condemn the Charity Commission, which, in some disgraceful correspondence with me, said that it would be wrong for the trust to forgo the income that it could receive—presumably when the leases expire and my constituents are dead or on the streets. This is an organisation whose chair, Baroness Stowell, recently said: "Charitable aims cannot justify uncharitable means", and: "All charities, not just the big ones, have to recognise that they have to demonstrate charitable behaviour and charitable attitude." Does the Minister view what I have described as charitable behaviour? Will she ensure that the trust follows the example of the National Trust and offers to buy back leases at market value? Will she press the charity to allow the option of enfranchisement, as committed to the Minister previously? Or will she leave the residents with no option but to await a Labour Government and justice for leaseholders?