Sir Mike Penning, MP for Hemel Hempstead, spoke in a debate in support of an amendment to the Leasehold Reform (Ground Rent) Bill yesterday.

The Leasehold Reform (Ground Rent) Bill is a Government Bill to restrict ground rents on newly created long leases of houses and flats to an annual rent of one peppercorn – a nominal value. The amendment which Sir Mike supported would extend this to all existing leasehold properties.

 He also used the opportunity to call for further leasehold reform to tackle the unfair treatment of leaseholders by the insurance system.

 The current situation is unfair as leaseholders, who pay the buildings insurance premiums to the freeholder, are not the owner of the policy and therefore cannot make a claim and have no legal rights.

 Sir Mike said:

“The whole leasehold system is a mess, and I am pleased that the Government is taking the issue of leasehold reform seriously.

 “I welcome the Government’s commitment to tackle ground rent on new builds, but I am disappointed it is dragging its feet on extending the legislation to existing leaseholders many of whom are facing ever increasing ground rents. I support the amendment to make all ground rents a peppercorn level.

 “I am also calling on the Government to look at the unfair treatment of leaseholders who pay buildings insurance premiums but are not listed on the policy and the problem of astronomic service charges.

 “Leaseholders often have little or no say on how these service charges are managed and what work is carried out. They are just stuck with a bill they can’t afford yet have to pay.

 “I welcome the Minister’s commitment to work with myself and other MPs on this and his commitment to bring in further legislation in the near future.”