Leasehold Reform

Part of the debate – in the House of Commons at 12:00 am on 28 February 1966.

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Photo of Mr Leo Abse Mr Leo Abse , Pontypool 12:00, 28 February 1966

I will come to that in a moment.

I hope that it is fully appreciated in Wales and Smethwick what the differences in cost would be if the Tory Party came to power—an unlikely probability, but let us test this extraordinary hypothesis—in money terms to the leaseholder if he lived in Cardiff or in Smethwick and if the Tories fulfilled their five-minutes-to-twelve promise of tonight that they would give a right of enfranchisement on their terms. I realise that there are some dangers in trying to make an assessment, because, as the Minister rightly said, there are so many variables, but perhaps I can presume to be a little bolder than he could be in this context.

I put precisely the same question to valuers in South Wales: what would be the difference in the so-called market price of typical houses in South Wales if the principle belatedly adopted by the Tory Party were applied and if that adopted by our party were applied? I am sure that the attention of Wales is focused on this debate. The are 400,000 leaseholders in Wales who are waiting to hear the views expressed in this Chamber. Therefore, it should go out to them how substantial are the differences in payment which they would be called upon to make if they wished to acquire their freehold if Labour is returned to power or if the Tories come back.

Let me take a typical small terrace house in one of the valleys, in a back street of Swansea or in some of the more modest areas of Cardiff with a value, with vacant possession, of £1,000. If the lease had 25 years to run and there were a small ground rent of 30s. per annum, on the Tory Party's scheme it would cost £180 to acquire the freehold, and on the Labour Party's scheme £31. I hope that it will be realised throughout Wales and, indeed, the Midlands that the differences can be as large as that between the scheme presented by the Tories and the one which we believe to be moral and equitable.

Let me take a small house as would be in a typical area in the Cardiff, North constituency, Plasnewydd, with a lease which has 19 years to run and a ground rent of £2 10s. per annum which today would bring £1,600 vacant. There are many such houses in Barry. The indolent Tories did nothing to prevent large sections of the town of Barry from being utterly immobilised because of the refusal of some of the ground landlords to sell the freehold in any circumstances. Under the Tory principle, the freehold of such a house would cost £450. Under the principle expounded by the Labour Party, it would cost £54.

Let it be know that the differences between the two parties are not marginal, as the hon. Member for Smethwick (Mr. Peter Griffiths), in his attempt to blur the differences, tried to indicate. The differences of principle are wide and they are reflected in the figure which we regard as just and which should be paid by a leaseholder in Cardiff and the figure which, perhaps would be paid under the Tory principle.