The House of Lords was told today that key clauses in the legislation that would help protect leaseholders’ funds that are controlled by managing agents won’t come into force because this was the Labour government’s policy.
This was the explanation from Baroness Hanham, Under-Secretary of State, Department for Communities and Local Government, why the key Section 156 of the Commonhold and Leasehold Reform Act 2002 would not be introduced.
As soon as Grant Shapps came into office with the coalition government this vital piece of pending legislation was dumped.
Baroness Gardner of Parkes, a Conservative, had demanded to know whether the government would introduce protections after the conviction last month of managing agent Simon van Houten, 31, for stealing £122,000, who faces a jail sentence at the Old Bailey on Thursday.
“Does [Baroness Hanham] not think that the nearly three million leaseholders are entitled to the protection called for by the voluntary accreditation bodies, Leasehold Knowledge Partnership and the Association of Residential Managing Agents, and supported by the British Property Federation?” asked Baroness Parkes, who had provided Baroness Hanham with LKP’s report of Van Houten’s conviction.
The government minister replied that the law provides sufficient protection for leaseholders.