My Lords, this amendment is self-explanatory, and people in this House have heard me speak before on the issue of sinking funds. It was drawn to my attention particularly by people who bought their council flats in the days of Margaret Thatcher. No sinking funds were set aside at all and, if you are a tenant in a local authority block, you do not have to pay for sudden repairs. However, the case I quote to the House is of a woman who has an income of £10,000 a year and received a bill, this year, for £12,000 for her part of the roof repairs. When I followed this up with the housing association that owns the property, it said the problem is that there are 26 people in exactly the same position. To avoid this, from the day that you own a leasehold, you should really be part of a sinking fund so that you do not suddenly find yourself threatened with losing your home altogether because you cannot find the money. What happens if she does lose her home? The local authority has to pick it up again, so it seems that the fund is necessary.
It is also very necessary and important that a sinking fund exists in private blocks. We do not have one in the block that I own a flat in and, some years ago, someone suggested that we have a voluntary scheme. The scheme came into force and we all put our money in, and it was great because it paid for all the repairs for the year—some minor and some less minor. Then, a new tenant bought a leasehold in the block and said, “I don’t want to pay a sinking fund; there is nothing in the lease about it”. They had to give us all back our money, whereupon, years later, we will be faced with another giant bill for a new boiler system or new central heating or something.
It really is so much better if people have a sinking fund for repairs, and it is important that this should be a possibility for people in local authority housing and people who have a right to manage, even if their lease does not have provision for a sinking fund. My aim is
to put in a clause that would enable people to decide that by a majority. If a majority want it, it should come into force, and it should not be the case that it can be withdrawn at a later date, which was what threw our system into complete chaos, it having been done on a voluntary basis. I beg to move.