2026-04-21

I move: That leave be granted to introduce a Bill entitled an Act to provide for the establishment and regulation of Life Annuity agreements for homeowners, to provide for consumer protections, and to provide for related matters. This Private Members' Bill comes from a very practical place. It comes from my work as a public representative and a solicitor dealing with people who are trying to navigate their financial situation later in life at a time when they are arguably vulnerable and should be able to enjoy those years and not have to worry about financial challenges and risks. Time and again, I have seen people who own their homes and have worked hard all their lives to do so but find themselves with very limited options when it comes to accessing the value of their assets when they need it. They are in many cases asset rich but cash poor. When they look for solutions, the options available to them are not always suitable. In reality, the main option currently available on the table is the traditional equity relief scheme. Many people will know of seniors' money products, which often have very high compounding interest rates and complex terms and which can over time significantly reduce the value of the person's home or wipe it out completely. Crucially, those products do not provide people with a steady income to support their day-to-day lives so this Bill is about offering an alternative to those who need it. It is not about encouraging people to release equity from their homes and it is not about replacing existing products. It is about creating an additional regulated option that will be suitable for many. This regulation introduces a framework for what is known as a life annuity model. Similar systems have been operated successfully in other countries, including France. Many people would be familiar with a viager scheme. Under this model, a homeowner can receive a lump sum and an ongoing income in exchange for transferring an interest in their property while retaining a legally protected right to remain living in their home for the rest of their life. The financial terms are determined in a structured way with actuarial input ensuring that arrangements are fair and reflective of individual circumstances. It is important to say that arrangements like this are already happening. They are happening informally and privately and without any real regulatory oversight and this is where the risk lies. People are entering into agreements without clear protections, without standardisation and without safeguards we would expect in any modern financial system. What this Bill seeks to do is bring those arrangements into the open to regulate them and to ensure they are fair, transparent and properly overseen. At its core, it is about giving people certainty - certainty that they can remain in their home, certainty that the terms they are entering into are fair and certainty that proper protections are in place. The Bill includes a number of safeguards. It requires independent financial legal advice, provides for a cooling-off period and clear disclosure requirements and ensures that these agreements are subject to proper regulatory oversight. Most importantly, it protects the homeowner's rights to remain in their home for life. This is a central principle of this legislation. This Bill also recognises the broader reality that people are living longer, that the costs of living are increasing and that many people are looking for practical ways to support themselves financially while remaining in their own homes. For some, this type of arrangement may be the suitable option, while for others it will not be. This is entirely as it should be. The Bill does not prescribe a solution. It merely creates a framework. It provides a choice and I hope that regardless of political perspectives, Members of this House can engage with that principle because, ultimately, this is about dignity, independence and giving people financial options later in life. I commend this Bill to the House.

Is the Bill opposed?

It is not being opposed.

Since this is a Private Members' Bill, Second Stage must, under Standing Orders, be taken in Private Members' time.

I move: "That Second Stage be taken in Private Members' time."