More than 60 Labour MPs join group to scrutinise leasehold managing agents

News13.01.2511.00 AM by James Riding

More than 60 Labour MPs have joined a group to scrutinise poor conduct by leasehold managing agents.

L-R: Alistair Strathern, Anna Dixon, Jayne Kirkham, Sarah Russell, Jim Dixon, Abtisam Mohamed, Callum Anderson, David Pinto-Duschinsky, Louise Jones, Rachel Blake, Torsten Bell, Joseph Powell, Danny Beales, Heidi Alexander, Rachael Maskell, Ruth Cadbury, Andrew Pakes, Jenny Riddell-Carpenter

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More than 60 Labour MPs join group to scrutinise leasehold managing agents #UKhousing

More than 60 Labour MPs have joined a group to scrutinise poor conduct by leasehold managing agents #UKhousing

The group, co-chaired by London MPs David Pinto-Duschinsky and Rachel Blake, held its first formal meeting on 9 January to question the country’s largest manager of leasehold properties.

Martin King, managing director of FirstPort, which manages more than 300,000 properties in the UK, was asked to “explain his company’s inadequate performance”, including service charge hikes and poor standards of service.

Mr King heard MPs deliver testimonials from their constituents who described three common complaints: excessive service charge rises, failure to complete vital building maintenance work, and a lack of responsiveness from FirstPort when they raised concerns.

The managing agent is contracted by freeholders to carry out building maintenance work in properties inhabited by leaseholders, who own their own flats. According to the MPs, FirstPort’s rates have risen by more than 50% on last year in some cases, with “no demonstrable improvement” in service provided to leaseholders.

In parliament last week, the MPs demanded that FirstPort’s senior management meet with their constituents and asked the firm to provide a hotline so MPs can raise complaints directly.

The MPs also urged the firm to offer full transparency to all residents about their service charges. A follow-up meeting has been agreed in principle for MPs to monitor progress.

The group of Labour MPs, who support leasehold reform, intends to continue meeting with other managing agents and relevant organisations in the weeks and months to come.

Mr Pinto-Duschinsky, MP for Hendon, said: “I’ve had dozens and dozens of complaints about FirstPort’s unacceptable service charge hikes, poor service and lack of responsiveness and transparency.

“All too often they are using leaseholders as little more than cash cows to be milked for every penny. People are paying more and more, and getting less and less.

“Enough is enough. This group of Labour MPs has come together to do everything we can to hold these unscrupulous managing agents to account. We strongly support everything the government plans to do to end the feudal leasehold system for good, and are determined to do all we can alongside that to hold failing managing agents to account. Today’s meeting is just the start of that.”

Ms Blake, MP for Cities of London and Westminster, said: “Residents are sick of rip-off service charges, substandard maintenance and a complete lack of communication from poor managing agents like FirstPort.

“National changes are needed to enable managing agents to be accountable to residents and for services to be transparent, and I support the government’s actions in doing this.

“In the meantime, I and other Labour MPs will continue to hold individual managing agents to account, and encourage constituents to come forward with any cases which may be of interest.”

A spokesperson for FirstPort said: “The meeting with MPs allowed for meaningful discussions about the changes and challenges affecting our industry. It also provided an opportunity to highlight the improvements we are making to better serve our customers.

“We listened to the concerns raised by MPs, and we are committed to responding to the requests raised in the meeting, as well as working with the MPs on a longer-term basis to demonstrate how the changes we are making at FirstPort will improve services. We would like to thank all the MPs who attended for their time and valuable contributions.”

The government has said it will consult this year on banning new leasehold flats, and will publish a white paper on reforms to commonhold in the next few months.

In November, housing minister Matthew Pennycook said that reinvigorating commonhold tenure through a new legal framework will be a central focus of the draft Leasehold and Commonhold Reform Bill, which is to be published during the second half of 2025.

He said the white paper on commonhold reform would be issued “early” next year as part of “decisive first steps” to making commonhold the default tenure over leasehold by the end of this parliament.