Latest news with #LordCarter
Telegraph
3 days ago
- Business
- Telegraph
Rayner's ‘jobs police' could intimidate political enemies, Lords warn
Angela Rayner's workers' rights overhaul risks creating an employment police force capable of intimidating political enemies, peers have warned. Lord Carter of Haslemere, a former general counsel to the Prime Minister, has claimed that new powers designed to give ministers the ability to search and arrest people for labour market offences could be abused. He said: 'Effectively, the Secretary of State will, through his or her enforcement officers, have his or her own employment rights police force to direct operationally in whatever way he or she chooses. 'This is in contrast, for example, to our regular police forces and the National Crime Agency, which are both operationally independent of the Home Secretary.' He is demanding that the so-called 'jobs police', which will be introduced as part of the Employment Rights Bill, 'enjoy complete operational independence from ministers and their advisers' to avoid politicians abusing their new powers. Lord Carter said: 'It is not impossible to imagine an unscrupulous Secretary of State requiring them to operate in a way that is not in the public interest and might even constitute an abuse of power, to target an unfriendly media organisation for political purposes or for some other wholly inappropriate purpose.' 'Real teeth' The former government lawyer is among a growing number of peers to have raised concerns about the planned strengthening of workers' rights in recent months as the House of Lords examines individual parts of Ms Rayner's Bill. The latest focus has been on the Fair Work Agency, which is set to become a new super regulator that will fold in several existing units. Current plans will see the new body have 'real teeth' to punish companies that treat staff badly or fall foul of the new rules. This means the agency will have the ability to inspect workplaces, levy fines or bring proceedings in the employment tribunal on a worker's behalf. While supporters argue that it will make the system less fragmented by combining several units into one, critics have raised fears that the new body could spook small business owners who don't have large legal teams. The package of reforms, spearheaded by Ms Rayner, includes handing staff full employment rights from the first day in a job and strengthening the power of unions in the workplace. Businesses could, for example, face thousands of pounds in penalties if they fail to tell staff in writing that they have a right to join a union. Addressing fears about the new enforcement body, Baroness Jones of Whitchurch, the business minister, argued that 'while the Secretary of State will set the overarching direction and priorities of the fair work agency through its enforcement strategies, they will not direct the day-to-day operation of staff'.
Telegraph
25-03-2025
- Business
- Telegraph
‘Labour peer left us trapped and unable to sell our homes'
Homeowners in a London residential block have been left 'trapped' in unsellable flats because of 'punitive' ground rent clauses imposed by their freeholder, a Labour peer. Leaseholders in the 122-flat development in Illford, east London, are subject to ground rent charges that increase every five years by the retail price index (RPI). The charge, which is in breach of most banks' lending terms, means the homeowners can no longer sell or remortgage. The freeholder, Lord Carter of Coles, was the only Labour peer to vote against new legislation to reduce existing long lease ground rents to peppercorn in 2021. The Freehold Corporation, of which Lord Carter is a director, collects the payment through its operating company Emerald Ground Rent. One resident said the landlord's decision to oppose reform was 'morally corrupt'. Lord Carter declined to comment. Ground rent is an annual fee paid by leaseholders to the freeholder for the right to occupy the land their property is built on. Last year, Labour vowed to ban the practice under leasehold reforms, but stopped short of banning it on existing properties. For residents of the East London Development, there is little sign of change in the near future. The charges, which have risen from £400 in 2018 to £519.64 from 2023 mean just three banks are now willing to lend against the flats. Others will take the risk, but only with a 20pc deposit. Most lenders' terms state that in order to qualify for a mortgage, the maximum ground rent must be no more than the greater of £500 or 0.1pc of the property value, and that the ground rent review period cannot be less than 10 years. In some cases, the East London properties have been valued at 'zero' while others have had to sell to cash buyers at a £125,000 loss. 'Conveyancers valued our property at zero' Gary Dalton, 48, rents out his property in the building, but had hoped to sell it and put the money towards a larger property for him and family who are currently renting. 'When we came back from being overseas, our plan was to sell it and buy something bigger. I have a wife and two young kids, but we haven't been able to,' Mr Dalton said. Mr Dalton said some property owners in the building have had their properties valued at zero. 'Some others have managed to sell to cash buyers or with specialist mortgage lenders but at a 30pc loss,' he said. Mr Dalton and his family are currently living in rented accommodation, as they cannot afford to buy without releasing the equity from the flat. An estate agent who has sold properties in the building, but declined to be named, said one flat was bought for £425,000, but as a result of ground rent had sold for around £300,000. Chris Sykes, of brokerage Private Finance said: 'There are lenders that will touch them [properties with higher ground rent], but not every lender will and it will put off buyers. 'It is definitely a complexity the buyer needs to take into account when they are trying to sell, and when they bought the property it probably wasn't considered. 'I have seen this situation where mortgage lenders' opinions have changed and the lease clause is the same as before, but they aren't happy with it now.' Lord Carter was in 2021 the only Labour peer to vote against an amendment to the Leasehold Reform (Ground Rent) Act 2022 that would have reduced all existing long lease ground rents to zero. 'I am sure he is within his rights, but it feels morally corrupt for him to be voting against legislation that will help literally millions of leaseholders,' said Mr Dalton. Harry Scoffin, the founder of the campaign group Free Leaseholders, said: 'Enslaving people to ground rent is not consistent with human values, let alone Labour Party ones. How does Lord Carter sleep at night? 'Ahead of the election, Labour said the Conservative government 'must act to protect leaseholders from ground rent exploitation'. Now they're in power, Labour is refusing to publish the results of the ground rent reform consultation which closed over a year ago. Why?' The Leasehold and Freehold Reform Act 2024, passed under the previous government, but not yet fully in force, is expected to be expanded to include ground rent reform although there is no guarantee of full abolition. In the meantime, flat owners are considering paying thousands of pounds to extend their leases, a move that, under the Leasehold Reform (Ground Rent) Act 2022, will reset their ground rent to 'a peppercorn' effectively zero. One resident in the building, who spoke to The Telegraph on the condition of anonymity, is considering this step. She and her husband want to sell their flat they bought in 2018 in order to buy a house and start a family. They are now worried they won't be able to remortgage with a high street lender. 'I am from a really working-class background and grew up in a family on benefits. Most people work towards homeownership as a dream, but now so many people are completely stuck for no good reason except for that British homeowners are turned into financial assets,' she said. 'Some lenders are okay with the five -year review period but it dramatically reduces the number of lenders who are willing to lend.' In recent years, the Competition and Markets Authority (CMA) has taken action against freeholders imposing 'unfair' ground rent terms, leading to over 21,000 households being freed from issues such as doubling grounds rents. The watchdog's 2024 report added that while it did not take action against ground rent clauses that increase by RPI, it still has 'concerns about them'. Paula Higgins, chief executive of the Homeowners Alliance campaign group, said: ' The CMA rightly stamped out doubling ground rents, but now some lenders are refusing mortgages on properties with RPI-linked increases or rent reviews every 10 years or less. 'What once seemed reasonable has become toxic under high inflation, trapping hard-working homeowners in unsellable properties. 'A two-tiered housing market is already operating, with ground rents banned on new flats since 2022 while existing leaseholders are stuck, unable to sell or remortgage without a lease extension to get rid of the ground rent provisions entirely. The Government must act now before even more leaseholders are locked into financial limbo.' Lord Carter of Coles and the Labour party declined to comment.
