UK Parliament / Open data

Leasehold Reform (Amendment) Bill

I am grateful to my hon. Friend for his submission to the Government as it might well be that such a problem exists in other aspects of our body of legislation. I agree that passing a catch-all provision would make corrective legislation such as this private Member’s Bill unnecessary.

The High Court judgment continued:

“A signature by an attorney is still a signature on behalf of the tenant rather than one by the tenant, in the terms of s 99(5), and would therefore be valid for the purposes of s 99(5)(b), but not valid for the purposes of s 99(5)(a).”

The judge went on to say:

“I would only add that another respect in which a distinction was drawn in the legislation between a personal act and an act by an agent is to be found in the provision that I have mentioned, s 42(3)(e), under which the tenant’s notice may state the name of a person appointed by the tenant to act for him in connection with his claim.

One might think it curious that the notice has to be given by the tenant, personally, in a situation in which the tenant has already decided that dealings in connection with the claim are to be with some other person, whether an attorney, a solicitor, valuer or whoever it may be, but the distinction is clear and it is, of course, even clearer in the context of s 99(5) itself. I mention s 42(3)(e) because it shows that in the wider context of the legislation there is other provision, which draws the same distinction.

For those reasons, which are much the same as Judge Cowell in Viscount Chelsea v. Hirshorn…I hold that a notice under s 42 can only be signed by the tenant, personally. A signature by an attorney is invalid, and I therefore dismiss this appeal.”

I think that that case clearly and vividly demonstrates not only why the Bill is such an important measure, but why it is important that legislation passed by the House is carefully scrutinised and that every effort is made to consider all possible unintended consequences of new laws.

I submit to the House that there are five simple reasons why it is right that the Bill should be passed. First, the problem does not apply to leaseholders seeking to exercise their rights under the Leasehold Reform Act 1967. Someone living in a house does not have a problem; it is only leaseholders of flats who are affected by the provision in the 1993 Act. Secondly, in respect of flats, the requirement for personal execution does not apply to landlords, so why on earth should tenants be disadvantaged in such a way when landlords are not?

Thirdly, the Bill does not apply to other notices required to be served under the 1993 Act. It is purely the initial trigger notices that have been found to need a personal signature. Fourthly, the Bill will remove the disadvantage faced by tenants who, perhaps because of mental incapacity or physical disability, are unable to sign. Fifthly, the Bill removes the problems faced by tenants who are temporarily absent from the country, be that on business or on holiday. Bizarrely, if a tenant dies having occupied a qualifying property for two years prior to their death, it is possible for the executors or administrators of their estate to serve a valid notice on the landlord, provided that they do so within two years of the issue of a grant of representation, so someone cannot sign a notice validly if they are alive, but their executors can if they are dead.

The House will be aware that the Bill was amended in Committee. I place on record my thanks to all those who agreed to serve on the Committee. The Committee’s sitting will always live in my memory and was particularly poignant because it was the very last time that I spoke to Paul Goggins, the late Member for Wythenshawe and Sale East, who graciously agreed to serve on the Committee. I remember that, as I left the room, he spoke to me for the last time to thank me for my work on this matter.

The amendments agreed to in Committee essentially made two changes to the Bill. First, they provided that the Bill would not apply to Wales. Since the 1993 Act was enacted, housing matters have been devolved to the Welsh Assembly. Consequently, even if the Bill reaches the statute book, the requirement for tenants to sign notices personally under sections 13 and 42 of the 1993 Act will remain in Wales, unless the Assembly chooses

to pass a similar measure. The second small change made in Committee provides for the Bill to come into force two months after the date on which it receives Royal Assent, rather than the one month stated when the Bill was first published.

Tenants who are interested in taking advantage of their rights under the 1993 Act but who may be put off by the complexity of it all will be relieved to know that help is available from a range of sources, including the Leasehold Advisory Service, which published a guide to collective enfranchisement called “Getting Started.” I apologise to that body because, if this Bill is enacted, it will have to amend that document. As page 13 of the guide, which details what is required in the initial notice, correctly states:

“The Notice must be signed by all the participating tenants; no one can sign on their behalf.”

If we are successful in getting the Bill on to the statute book, the wording will need to be revised. I suggest: “The notice must be signed by, or on behalf of, all the participating tenants.”

A private Member’s Bill will generally not make any progress unless it has at least the tacit support of the Government of the day. I am grateful to officials in the Department for Communities and Local Government for recognising the strength of the arguments in support of this small legislative change. I thank them for their help and advice on drafting, and on the technical aspects of the Bill. I also thank the Government and Her Majesty’s Opposition for supporting the Bill. I thank the staff of the Public Bill Office for helping me to navigate the legislative pathway that a Bill of this nature has to follow.

Finally, to aid the understanding of Members and the wider public, explanatory notes were prepared and published with the Bill, but following the minor changes made in Committee and in order to bring the explanatory notes in line with the usual format, it is intended that the notes will be slightly amended and reissued before the Bill is considered in the other place, if it is read a Third time this morning. The Bill is a small but important measure, and I commend it to the House.

10.15 am

About this proceeding contribution

Reference

574 cc559-563 

Session

2013-14

Chamber / Committee

House of Commons chamber
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