Protection for New Home Buyers — House of Commons, 2020-01-16
Topic: Housing
Luke Anthony Hall (Conservative, Centre-right): I will not if that is okay, because of time The independent working group reported last year, and we are considering its recommendations. We will announce our next steps in due course. It can be expensive to take legal action against a landlord when that is necessary, and we are deeply concerned that leaseholders sometimes have to pay their landlord’s legal costs, even if they win the case. That can lead to leaseholders facing bills that are higher than the charges they were seeking to challenge in the first place, and it can also deter leaseholders from taking their concerns to a tribunal at all. The Government believe that leaseholders should not be subject to unjustified legal costs, and we will close the legal loopholes that allow that to happen. Again, I am grateful for the hon. Lady’s contribution on that matter, and perhaps we can take the issue forward in the weeks ahead Our plans to reform the housing sector will be a collaborative effort with colleagues across Government. We are also closing a gap in redress for leaseholders by extending mandatory membership of a redress scheme to freeholders who do not use a managing agent. Managing agents are already required to belong to a redress scheme, but there is no such requirement for freeholders who do not use an agent. This change will give more leaseholders access to redress in the future There is much reform still to come, but we have taken action already. We have worked with industry to secure commitments to help existing leaseholders through our industry pledge. The leasehold sector is clearly ripe for reform, and I assure the House that the Government are fully committed to ensuring that such reform can happen Let me turn to the new homes ombudsman. Problems in the current redress system threaten the quality of the experience and product for new homebuyers. The Government are dedicated to ensuring that homebuyers are treated fairly when things go wrong, and for developers to up their game and get things right from the beginning. The hon. Lady raised important points about warranties, including warranty exclusions, the provision of clear information to consumers, and the resolution services of warranty providers. It is the responsibility of the Financial Conduct Authority to regulate new build warranties and protect consumers. If a consumer is unhappy with the warranty provider’s action, they can contact the Financial Ombudsman Service for free. I agree that consumers must be provided with clearer information on warranty cover, and we are considering how that is best achieved The hon. Lady made a valid point about potential conflicts of interest where approved inspectors have dual roles. Dame Judith Hackitt recommended that where they are involved in regulatory oversight, an approved inspector must be completely independent of the duty holder. The Government accept that recommendation and are working with the Joint Regulators Group, representatives of approved inspectors, and local authorities, to identify ways of minimising conflicts of interest and ensure sufficient regulatory capability and capacity under the new system. The industry has acknowledged many of those problems and is working to improve consumer confidence and trust In conclusion—time is short—the Government are committed to ensuring that the housing market works for everyone. That means building more of the right homes in the right places, and ensuring that when consumers purchase a new home, they have the protection they deserve and need. I assure hon. Members that as we work towards our ambition of building 300,000 new homes a year, residents in all tenures are safe. They must be treated fairly and be able to live in sustainable, high-quality homes Once again I am hugely grateful to the hon. Lady for her contribution, and we will make sure it is taken into account. I hope that we can organise those meetings in the week ahead and see what we can incorporate. I look forward to the Government driving forward that vital reform Question put and agreed to.