Housing and Planning Bill

Baroness Bakewell of Hardington Mandeville Excerpts

Wednesday 13th April 2016 Lords Chamber

[Lord Teverson (LD)]

My Lords, I keenly support Amendment 52, in the name of the right reverend Prelate the Bishop of St Albans, and emphasise some of the points he made about replacing properties within the same parish or within one parish. Some housing associations in the south-west cover the whole of Cornwall. The distance from Sennen to Bude is some 83 miles. That is the sort of distance covered by housing associations in Cornwall. Some cover Cornwall and Devon. Indeed, the distance between Land’s End and the Dorset border just the other side of Honiton is some 150 miles and involves more than four hours’ travel time. There are great differences even between local communities in rural areas. Each has specific characteristics and great local pride. This amendment is incredibly important to maintain the fabric of rural communities. The way that it is drafted provides an important assurance that housing associations would be able to replace properties on a like-for-like basis in terms of not just tenure in other areas but the ability of people who live in these communities to continue their work, education and hobbies in the same area.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, I speak to Amendment 52, in the names of the right reverend Prelate the Bishop of St Albans and the noble Baroness, Lady Royall of Blaisdon. In so doing, I declare my interest as the chair of the National Community Land Trust Network.

I spoke on this subject at length in Committee and have no need to rehearse the arguments again, as the right reverend Prelate the Bishop of St Albans has once more laid out the case very clearly and the noble Duke, the Duke of Somerset, and my noble friend Lord Teverson have added to those arguments.

We have heard that the Minister and the Secretary of State will bring forward amendments at Third Reading which will satisfy those of us in this House who are very concerned at the Bill’s impact on rural settlements. Like others in this House, I wait to be convinced at Third Reading but for now am content to support the arguments already made.

[Baroness Evans of Bowes Park]

I thank all noble Lords who have contributed to this debate. I fully understand the desire of the noble Lords, Lord Kennedy and Lord Beecham, and others to ensure that affordable housing is not lost to an area, and the concerns raised by the right reverend Prelate and others relating to rural issues.

Extending right-to-buy discounts to housing association tenants was a manifesto commitment taken forward through a voluntary agreement with the sector. This is about opportunity—social tenants having equal access to the opportunities for home ownership. I am sure that noble Lords agree with that. The other place was supportive of the agreement. The National Housing Federation and the housing association sector came to government with this offer. It is entirely voluntary and represents 96% of stock.

Under the terms of the agreement, housing associations will deliver an additional home through new supply nationally for every home sold under the voluntary right to buy. This will increase overall supply and housing associations will have discretion not to sell particular properties, including where those properties would be difficult to replace. As a number of noble Lords said in Committee, to legislate would go against the voluntary nature of the agreement and introducing controls would present a classification risk.

While I appreciate the strength of feeling on this issue, the Government cannot accept Amendment 51. Placing restrictions on housing associations in implementing the voluntary right-to-buy agreement by requiring replacements to be of the same tenure and in the same area would, we believe, fetter their ability to deliver housing in accordance with local need. Under the terms of the voluntary agreement, housing associations will have the flexibility to build replacement properties where they are needed. Governments should not instruct them where to build replacement homes, nor specify what tenure the replacement should be. I pay tribute to housing associations, which have a history of delivering new housing supply that this country needs. Setting arbitrary rules without any reference to local conditions is likely to hinder not help them in delivering new affordable homes. They are best placed to determine what type of housing is best suited to a community and it is only right that decisions on tenure be taken locally.

The noble Lord, Lord Beecham, raised the issue of Section 106 properties. We are engaging with the sector on the implementation of the voluntary right to buy, including what is provided under Section 106 agreements. He also asked about monitoring. Regular statistics are published about property sales by councils under the existing right-to-buy scheme. Clause 64 allows for the monitoring of housing association sales under the voluntary agreement and I can confirm that replacements will also be monitored.

The noble Lord, Lord Wallace, asked about engagement with charities. I can confirm that officials and the National Housing Federation have held working groups with charities to work through the issues that he raised. My noble friend the Minister and I would be very happy to meet further on this matter. I can also confirm that almshouses are exempt from the right to buy.

Amendment 52 relates specifically to rural areas and would require at least one replacement property in the same or an adjoining parish as the property sold. I completely agree that we should support strong and sustainable rural communities. As my noble friend Lord Young rightly said, the voluntary agreement, as well as giving housing associations the flexibility to build replacement properties where they are needed, already gives them discretion over sales of properties in rural locations. My noble friend Lady Williams will shortly talk in more detail about rural needs. It is clear from our engagement with the sector that associations are intending to exercise their discretion not to sell properties in rural areas where they would be difficult to replace. These are organisations that have well established and supportive relationships with the local communities that they serve and, as the noble Lord said, often have charitable status that ensures that they will deliver housing that the community needs. However, they also have to operate within the confines of what is practicable—for instance, in terms of land assembly and planning permission. They need the freedom to find the best opportunity available for delivering for local housing needs.

The noble Baroness, Lady Hollis, asked what happens when a housing association has not signed up to the agreement and all its properties are in a rural area. As I have said, the deal is voluntary; housing associations, whether signed up to the agreement or not, do not have to sell any home, whether rural or not, where this is not in the interests of the area. She also asked about exercising discretion and the portable discount. Where a housing association exercises its discretion not to sell a home, the housing association will provide an alternative from its own stock or that of another housing association. Housing associations would work together to develop joint arrangements to enable this to happen.

--- Later in debate ---

Moved by

[Baroness Bakewell of Hardington Mandeville]

55: Clause 67, page 30, line 11, at end insert “, such deductions to include the cost of replacing the high value properties in the same area with affordable homes (as defined in the National Planning Policy Framework up until May 2015) on a one-for-one basis”

[Baroness Bakewell of Hardington Mandeville]

My Lords, I shall also support Amendment 64A in the name of the noble Lord, Lord Kerslake. I realise I am in the way of having the debate about Amendment 64A, on which I hope the Minister wishes to make a statement. However, I will continue.

For the Secretary of State to require local authorities to hand over money on the basis of the number of high or higher-value properties that may become vacant in any given year is, to me, iniquitous. However, I accept that a formula has been agreed with local authorities, which will be based on the assumed number of high or higher-value properties that will become vacant in any given year. In whichever way the formula is calculated, local authorities will be required to pay to the Secretary of State a sum of money that will cover the cost of the 20% discount on the starter homes and the right-to-buy scheme. In the current economic climate, local authorities do not have spare capital at their disposal and have never done so. They are particularly good at making every pound count for the benefit of their residents. The vast majority will therefore have to sell assets of some sort to fund the Government’s levy. The sale of capital assets involves costs and it is only logical for local authorities not to be out of pocket as a result of this measure.

Amendment 55 would allow local authorities to replace on a one-for-one basis with affordable homes in the same area. I refer your Lordships to the Conservatives’ press release of 14 April 2015, which gave details of how the right to buy will be funded. We have had discussions about this. The sale of high-value council homes is referred to in the last paragraph and I will bore your Lordships by reading it. It said:

“A Conservative government will legislate to require local authorities to manage their housing assets more efficiently, by selling off expensive properties—only when they become vacant—which will then be replaced with normal affordable housing. Local authority properties that rank among the most expensive third of all properties of that type in their area—including private housing—will be sold off and replaced with new affordable housing on a one for one basis. But this will only happen as they fall vacant. Nobody will be forced to move”.

I thank the Minister for her amendments so far and look forward to what she has to say further on this issue. In the mean time, I beg to move.

[Lord Kerslake]

My Lords, I first declare my interests as chair of Peabody and president of the Local Government Association. The purpose of Amendment 64A, which I have tabled, is to do two things. First, it is to put one-for-one replacements in the Bill so this issue is beyond doubt. Given that this was quite clearly in the manifesto, it seemed right and proper that it should be in the Bill. The second part of the amendment was to give the opportunity for a local authority, where it could demonstrate the need, to put the case to government and seek their agreement for a like-for-like policy—that is, the replacement of a social rented property with a social rented property. So there are two parts to this, which I would call one-for-one and like-for-like. They are drafted very differently to allow for local flexibility and initiative.

As has already been made clear today, the Minister has signalled a willingness to compromise on the issues involved in my amendment. She will say more about this in a minute and I do not wish to steal her thunder but, having had a chance to have an informal conversation with her, I am very grateful to her and the Secretary of State for their willingness to listen genuinely to the concerns of this House and those affected outside, and to respond to these concerns. It reflects well on them both and I am grateful for it.

It is worth rehearsing briefly why this part of the Bill has caused such concern. The first and most significant concern has been that of basic fairness. Local government is being expected to foot the bill for a central government policy: to extend the right to buy to housing associations. This is a central government policy funded by local government. To do this authorities are having to sell off, as we now know, higher-value properties as they become vacant, thus reducing the opportunities for those who are in most need. As the letter to the Guardian from the four LGA leaders put it,

“selling council homes will hamper councils’ ability to invest in new affordable council housing”,

and it is,

“likely to have the unintended consequence of increasing homelessness and pushing more families into the more expensive private rented sector”.

That is the view of all the parties in the Local Government Association. In short, those who are better off and have the means to purchase their housing association property will gain a large cash discount. Those on the lowest incomes who are in most need of housing will lose out. That is a basic issue of fairness that cannot be avoided in this proposal.

The second major concern, which we have debated a lot this afternoon, is that the proposal as previously drafted was highly centralised and “one size fits all” in its effect. As we have already heard, we do not have the proposed formula for top-slicing local authority receipts, which will come later. However, as the Minister expressed very well, in some areas there was the prospect under the previous construction that the social housing in those areas would, over time, be effectively wiped out, utterly changing their character and working completely against locally assessed need.

--- Later in debate ---

[Baroness Williams of Trafford]

In the spirit of the discussion that we are having, I am very happy to seek clarification on the issue raised by the noble Lord. In fact, we will be working through many issues for Third Reading. I am sure that noble Lords will tell me if I have got it wrong—I am sure that the noble Lord, Lord Kerslake, will.

[Baroness Bakewell of Hardington Mandeville]

My Lords, I thank the Minister for bringing forward the amendment that we have all been asking for—that there should be one new affordable home for each one that is sold, and that that will be in the Bill—and for responding to the debate in Committee and on Report. I urge her to let us see the detail of it before we get to Third Reading, which I understand will be a fortnight today. I am really pleased that local authorities will be able to make the case for the type of housing that is needed in their area. On that basis, I beg leave to withdraw my amendment.

Amendment 55 withdrawn.

--- Later in debate ---

[Lord Beecham]

I endorse the noble Lord’s last plea, and I think that it is one that the Minister will feel able to agree—or I hope that she will, because it would certainly make a great deal of sense. I very much welcome the Government’s more flexible approach to these matters, and congratulate the noble Lord, Lord Cameron, who is doing rather better than his namesake in many respects at the moment, on achieving two substantial concessions from the Government. They are not perfect, perhaps, but go a long way towards meeting the particular requirements of communities that are in many ways very hard-pressed and would undoubtedly have suffered significant difficulties if the Government had stuck to their original proposals. In that spirit of collaboration, I look forward to the Minister dotting the last “i” and crossing the last “t” in relation to the transfer from one property to another not requiring a sale.

[Baroness Bakewell of Hardington Mandeville]

My Lords, I support the amendment in the names of the noble Lords, Lord Cameron of Dillington, Lord Best and Lord Beecham, to which I have added my name. We debated rural housing at length in Committee and I remain concerned that we will see a radical change in housing in rural areas as a result of the implementation of this Bill, if it remains unamended. I welcome the comments from the noble Lord, Lord Cameron, with which I completely agree, as well as those of the noble Lords, Lord Best and Lord Beecham.

I have seen and read the Minister’s letter—not the one that came today—on this subject, and I am afraid that I do not believe that tenants in rural areas will be disadvantaged in the way that she indicates, or be treated differently from other tenants in more urban areas. I regret to say that it often appears that the Government do not always understand the countryside and rural areas. I have found from personal experience, when working in the Palace of Westminster in the past, that it was often extremely difficult to get people to understand the impact of their policies on residents in Greater London, outside Westminster, and completely hopeless to get any understanding of the impact on those further afield. That is especially true if one lived in an area that was considered as somewhere where one went for a holiday and did not actually live your life there. I therefore fully support the amendment and welcome the assurances from the Minister so far on safeguards and exclusions from rural communities, and I wait to hear what she has to say.

[Baroness Hollis of Heigham]

I would press the Minister for some help on this. We have not yet had the details of what seems to be proposed in the Minister’s reply—and we are on Report, which is very difficult, because we cannot behave as though we were in Committee and press her further for elucidations. So we have difficulties, although obviously we welcome the concessions that she might propose to bring forward. However, as I understand it, local authorities, which know their areas, will have to persuade the DCLG, presumably on a case-by-case basis, not that there should be a one-for-one but there should be a like-for-like. I have no doubt at all that the Minister and her Secretary of State have good intentions and will not seek to use this inappropriately, but why should civil servants recommend to a Minister, who has possibly not even visited a particular county, to tell a local authority that they know better than the local authority whether it is appropriate to have not just a one-for-one but a like-for-like replacement? In the name of localism, are we really going to see local authorities argue with the Secretary of State’s officials on a particular property or five properties in a village in some deeper part of the country, whether it be Somerset, Norfolk, Cumbria or wherever? That seems an extraordinary amount of Whitehall power over local government decision-making. I hope that it will be operated in good faith, but what happens when there is a disagreement? The Secretary of State is presumably always not only judge but jury and has the last word in this.

I would have liked to see more confidence expressed in local authorities, perhaps because it is monitored through the local plan—or, alternatively, perhaps the Minister will respond with the proposal that we will have a report back to Parliament two years after the Bill takes effect to see what exactly has been the response of local authorities and to what extent central government has been able to respond positively to local authorities’ description and assertion of their local need.

--- Later in debate ---

[Lord Kennedy of Southwark]

My Lords, I rise to speak to Amendment 71C in my name and that of my noble friend Lord Beecham. I think we can all agree, no matter what position you take on this Bill—whether you think it is right, positive and a great Bill or think it is wrong, negative and not a good Bill—that the proposals are controversial and not universally welcomed. That is because of the lack of regulation—I am not going to start a regulation speech, I promise—and the fact that it is a skeleton Bill with, it has been suggested, not all the bits of the skeleton in place. So I have begun to think that the Bill is just not right. There must be a mechanism in it to enable the Government and Parliament to understand fully the effects of the provisions that have been brought into law.

When we discussed the right-to-buy provisions in Committee, there were many contributions from across the House. I recall the contribution from my noble friend Lord Campbell-Savours, who told us about a council estate quite close to this House that had almost entirely been sold under the right to buy but, now, almost entirely entered the private rented sector. In fact, many rooms in many of the council flats are now being rented out. He said that there are door numbers on the rooms within flats, and people are paying hundreds of pounds a week to live there. I am confident that when the original right-to-buy proposals were introduced by the first Conservative Government after the 1979 election victory, that was never their intention. The intention was to increase home ownership—a perfectly understandable intention. Of course, its effects today can be seen in the situation up the road.

My amendment provides for a report to be compiled in three years’ time. Three years seems to me a sensible length of time. We will see what has happened with the proposals in the Bill and it will enable the Government—unless there is some unforeseen event, this Government will still be in office when we get the report, with one more year to go—to look at them and understand their effects. That is a sensible thing to do and on that basis, I beg to move the amendment.

[Baroness Bakewell of Hardington Mandeville]

My Lords, I rise to support Amendment 71C. As has been said many times during the passage of this Bill, its implications will have very wide ranging consequences. It is therefore necessary to monitor those consequences adequately and consistently, and not leave it to hearsay and conjecture. The Secretary of State should conduct a proper review of the composition of the housing stock of local authorities and housing associations after three years. By then, it should be possible to ascertain exactly how many new homes have been produced, the state of the affordable rented sector, and what measures will be needed to redress any gaps in the market or enhancements needed to fulfil the Government’s aim of addressing the current housing crisis.

[Baroness Hollis of Heigham]

My Lords, I also would like to support this amendment. I do not mean to be impertinent to the Minister, but I think that she owes us this—and I will say why, if I may. There have been considerable worries around the House as to just how “skeleton” this Bill is. We have been promised regulations which, although they may now be affirmative thanks to the good efforts of our colleagues on the Cross Benches, will none the less come in after the Bill has become law because the consultation exercises on which they are based started two-thirds of the way through the parliamentary process. We all know that they should have been concluded before the parliamentary process, so that they could have shaped the form of the Bill and thus been amended in an appropriate way.

In area after area we do not know what is going to happen. We do not know what is going to happen with starter homes, with the potential take-up or with the priority order of the money from local authority sales. We do not know what number of properties will have to be sold and levied to meet that, or how the sums are going to add up. We could make a shopping list of the things we should know and the Government should know, but that we have not been told. I think that that is because the Government do not know. All this work should have been done, in my view, long before this Bill took shape. This is the result of having, in the first year of a Government, a Bill that should have been delayed, as a Member of the Benches opposite said, for at least a year while some of this evidence was collected. We could then have had a more informed and sensible debate in the long hours of Committee and now at Report.

At Report, the Minister and the Secretary of State are beginning to respond to a lot of the arguments raised in Committee, and we are very appreciative of that. However, the Government could and should have foreseen those arguments at the Commons stages; they could and should have foreseen them at Second Reading; and they could and should have had answers in Committee. What we are now getting are promises at Report. We will come to Third Reading and, if those responses are not adequate, we will have to go into questions and the consideration of ping-pong, which will then put a question mark over the whole timetable of the Bill.

Through no fault of the Minister, the department has failed to put in the preliminary work on this Bill. There are many people in this House who have been Ministers and taken Bills through it who know how much preparation is needed to have a Bill that is informed with the proposed regulations in draft. The LegCo committee, as was, would not have allowed this Bill to go forward in my day with the regulations as vague as they now appear to be because we are still awaiting the results of the consultation exercise.

At the very least, therefore, we need a proper, evidence-based, data-collected report three years down the line on whether all these offerings, suggestions, proposals and possibilities that we all see and argue for in this Bill actually come to pass or whether, as a result of skeletal scrutiny of a very skeletal Bill, we have missed out major issues which then bear heavily on people who can ill afford to see their housing need pushed ever further back in the queue. I therefore suggest to the Minister in all gentleness that she owes us this amendment.