The Compton Group, which owns the freeholds of many properties in Pendle, has provoked outrage by ordering leaseholders to insure their homes with the Zurich Insurance Co – even if they already have perfectly good cover from elsewhere.

Speaking from Nelson earlier today, the MP said: “I have had a stream of people contact me so there is clearly an issue here. Many are upset about it all.”

The MP explained: “There is a distinction to be made between leaseholders of houses and flats. In the case of the former, it is possible for a leaseholder to use Section 164 of the Commonhold and Leasehold Reform Act 2002 and stay with his or her current insurer provided that insurer is authorised to carry on business in the UK and providing other conditions are met.”

“It is more complicated for leaseholders living in a block of flats – but even here it is possible to challenge a demand to switch insurance companies if the freeholder is insisting on cover which is not competitive or if the leaseholder has comparable or better insurance.”

“The remedy is through the Leasehold Valuation Tribunal whose details can be accessed on the internet.”

“I am in touch with the Burnley and Pendle Law Society to find out what their members are saying about the current position.”

“I also want the Swansea based Compton Group to make it clear to leaseholders that they, the leaseholders, can go to the Leasehold Valuation Tribunal to settle any dispute between the parties.”

The MP added: “I want to hear from people who feel pressured or anxious after getting letters from the Compton Group.”

Note to Editors: Provided certain conditions are met, it is open to leaseholders to apply to buy the freehold of their property. The Compton Group says in its literature that many estate owners are reluctant to sell, “preferring to derive an income from the management of their ground rent portfolio”. Comptons says their policy is to sell ground rents, believing it is “to the mutual advantage of the householder and ourselves to sell.