WARRINGTON South Tory MP Andy Carter has been accused of ‘failing to stand up for’ victims of the leasehold scandal by a Labour MP.

Runcorn east MP Mike Amesbury slammed Mr Carter following the third reading of the Government’s Leasehold Reform (Ground Rent) Bill.

Both spoke in a debate where Mr Amesbury moved an amendment that would have extended zero ground rents to existing leaseholders of flats and houses – not just new leaseholders as covered in the bill.

The Weaver Vale MP says he was disappointed that Mr Carter and his Tory colleagues voted it down.

He said: “Lots of fine words from the Member for Warrington South on behalf of his constituents about mis-selling and the interesting relationship between developers and certain solicitors.

“But when push came to shove, he didn’t vote for the amendment which was about kicking into touch these ground rents and dodgy practices affecting his and my constituents, removing the very thing he claimed to be concerned about.

“It’s deeds that count not words. I’m afraid last night in the division lobby Mr Carter was found wanting in terms of his deeds despite his warm words.”

Historically, leaseholders took out a mortgage on their property in the usual way and were also subject to a nominal ‘peppercorn’ ground rent.

But Mr Amesbury says, in recent years, this element has been exploited as a source of profit by developers, with some leaseholders experiencing a doubling of ground rent every 10 years.

Mr Amesbury says leaseholders were often unaware of hidden costs at point of purchase in a ‘mis-selling swindle’ which he has dubbed the ‘new PPI scandal’.

He said sometimes this was because the vendor recommended the use of a licensed conveyancer to ‘seal the deal’, and unlike a traditional conveyancing solicitor, they are not truly independent as they work for both seller and buyer.

The Labour MP added: “I together with residents from the National Leasehold Campaign called for an intervention and investigation from the Competition and Markets Authority.

“The CMA has since shone a light on the scandal forcing a number of developers to end the practice of doubling ground rents every 10 years. This investigation continues examining the role of recommended solicitors when selling leasehold properties.”

Mr Carter said the Leasehold Reform Bill needs to go further, accounting for leaseholders such as those on Steinbeck Grange who are in historical contracts.

Speaking in the House of Commons, he said: “I welcome many of the proposals set out in the Bill and recognise the important role that they will have in protecting leaseholders moving forward.

“I am however concerned that they will offer little comfort for the thousands of homeowners who have become trapped in historical leases, which I am afraid many were even unaware they were purchasing when they signed for their new home.”

Mr Carter went on to ask the minister what the Government is doing to tackle this problem faced by Warrington residents and thousands more across the country.

He said: “I ask the minister what actions his department can take to tackle the problem faced by residents on Steinbeck Grange in Warrington and elsewhere who are locked into leaseholds and did not expect to be in this situation.

“I know that he has been working with the Competition and Markets Authority to try to find solutions, and I hope that he will continue to do that, so that a satisfactory outcome can be found.

“Having met residents and constituents recently, I know that the impact that this has had on their lives cannot be overestimated. They have been living through a genuine nightmare, having bought what they thought was their dream home.

“It is time not only for us to protect those who will be looking to buy a new home in the future, but to secure justice for those who have been mis-sold properties in the past and are still paying a heavy price through unreasonable management fees and escalating ground rents. I am pleased to support the Government’s efforts, but I urge them to go further.”

Mr Carter says, following the debate, the Government agreed to meet with constituents in Warrington South impacted by alleged miss-selling and indicated further legislation will follow.