Leaseholders' champion calls for fair deal on insurance

Brighton Pavilion Labour and Co-operative MP David Lepper is backing a call in the House of Commons to force landlords of leasehold property to make leaseholders more aware of their rights.

David, who was one of the MPs who led the campaign in Parliament for the Commonhold and Leasehold Reform Act 2002 which gave more rights to leaseholders, says:

“One of the new rights given in the Act was to allow leaseholders to insure the flats they live in with an insurer of their own choice rather than one chosen by the landlord.

“There had been cases which showed the old system was open to abuse with dodgy financial relationships between landlords and insurance companies - and leaseholders getting a poor deal in insurance cover.

“However, many leaseholders are still not aware of their rights and there is some evidence across the country that leaseholders continue to be harassed, bullied and misled into using an insurer who pays commission to the landlord.

“That’s why a group of us are saying in an Early Day Motion that the Government should force landlords and insurers to make leaseholders aware of their statutory rights to choose.”

David adds:
“There are thought to be about 25,000 leasehold tenancies in Brighton and Hove – one of the highest levels outside London. I often hear from local leaseholders who have benefited from the 2003 Act by taking over the management of their blocks, and some who have bought the freeholds as well .

“But unfortunately from time to time at my surgery I still hear of cases where landlords try to bully their tenants out of exercising all their new rights.”