Neighbourhood Planning Bill

Baroness Gardner of Parkes Excerpts

Committee: 2nd sitting (Hansard): House of Lords
Thursday 2nd February 2017 Grand Committee

Moved by

[Baroness Gardner of Parkes]

27: After Clause 11, insert the following new Clause—
“Public consultations
A local planning authority must extend accordingly the length of any public consultations regarding a planning application if any public or bank holidays fall within the consultation period.”

[Baroness Gardner of Parkes (Con)]

My Lords, this is a simple amendment. As I understand it, the position at the moment is that local authorities can decide to extend a consultation period but they are not obliged to do so. I believe that they should be obliged to do so because Christmas and August bank holidays are sacrosanct for families. It is a bit of a “slickie” if someone can slip in their application around such times —perhaps even by arrangement in less desirable cases—and it goes through, and then people come back from their few days away with their family to find that, suddenly, something they would have very much opposed has been passed. That is the reason for the amendment.

It is important that consultation should be carried out properly on every aspect of planning. It is not just a matter of time but also of the area where the application is for. In my experience, many planning authorities do not understand that in some streets in urban areas the houses are numbered 1, 3 and 5 on one side, and in other streets they are numbered 1, 2, 3, 4 and 5. Sometimes, they do not seem quite sure which houses they should serve the notice on. It is important that local people understand that something is being considered, so that they can decide whether it is good or bad for their area.

It is very useful in urban areas to put the notice on a local lamp-post or telegraph pole. However, it is not so useful when the next council officer who comes along sticks up a removal notice for someone who is moving house and obscures the previous notice. It is important that councils should be aware of what they need to do to enable people to understand local planning.

I went to a meeting in your Lordships’ House with Nick Boles, who had responsibility for this. One of the big discussions was about just who your neighbours are. If your house is on a corner, you can have four or five neighbours in different streets all around you. It really is important that the right people are notified. Even if it is not 100% right, at least a neighbour will say to you, “Have you seen the notice?”. However, if there is nothing there, you are at a terrible disadvantage. The first thing you know about it is when it has all gone through and it is too late. That is the reason for the amendment. I beg to move.

[Lord Judd (Lab)]

I would like to say what a sensible amendment this is. It is impossible to overestimate the amount of cynicism that there is around the whole issue of consultation. There is too widespread a view that it does not make any difference because the planners will do what they want to do anyway, and that switches people off coming forward and participating. A lot of work has to be done to build public confidence in the consultation process. The very specific matter raised in this amendment is important because it is a real issue. I have come across it myself when people have said, “For God’s sake, it’s Christmas. We didn’t know that it was not exempt from the consultation period”. I hope that the Government and my noble friends on this side of the House will take the amendment seriously as a very practical and human suggestion.

--- Later in debate ---

[Lord Bourne of Aberystwyth]

The noble Lord makes a very fair point. However, we do not want to flex the legislation and extend the period for the very small minority that fail to meet the deadline when, as I said, the vast majority perform very well. That would send out the wrong message.

I turn to Amendment 27A, spoken to very ably by the noble Lord, Lord Taylor of Goss Moor. He was at pains to tell us that, like all the other amendments in this group, this is a very good one. We tend to agree: this is a sensible amendment. It seeks to move responsibility for any town development corporation established under the New Towns Act 1981 from the Secretary of State to the relevant local authority.

I say at the outset that I support the broad thrust of the amendment. This Government are supporting 10 locally led garden cities and towns and 14 locally led garden villages—high-quality new settlements of between 1,500 and tens of thousands of new homes. The noble Lord, Lord Taylor, has been an influential and important voice in the creation of our garden villages programme, and I thank him for his engagement.

We have seen a strong response locally to our offer of support for locally led garden cities, towns and villages, and we want to do more to help the places that are currently in our programme, and others which may become part of it in future, deliver. The Government recognise that a statutory delivery vehicle, such as a new town development corporation, may in some circumstances be a helpful means of co-ordinating and driving forward the creation of a new garden city, town or village.

The Government also recognise that, in line with our locally led approach, this statutory delivery vehicle, while enjoying significant independence to get on with the business of delivering, should be accountable not to central but to local government. I stress that. That is an argument that has been made not only by the noble Lord but by the Local Government Association and the Town and Country Planning Association.

If there is sufficient local appetite, we will consider legislating to amend the New Towns Act to enable the creation of development corporations, for which responsibility rests locally, not with central government. I reassure noble Lords that the Government recognise and support a locally-led approach to the creation of new garden towns and villages. This fits also with our devolution agenda more generally. As I have indicated, the statutory delivery vehicle of the new town development corporation already enjoys significant independence. However, I believe it should be accountable to local government, not central government.

To that end, should there be sufficient appetite we will look into making local bodies accountable for the new town development corporations, with new legislation should local areas show that they would use it. Discussions stemming from the White Paper would be the first step in exploring local appetite. I hope that with this reassurance and the statement of policy going forward, the noble Lord feels able not to press his amendment. Following the indications I have given, I also ask my noble friend Lady Gardner to withdraw her amendment.

[Baroness Gardner of Parkes]

I thank all those who supported what I had to say. I do not think it is at all onerous for the good authorities that are already doing what the amendment suggests, and it is important to help those who are living somewhere where they are not getting the benefit of this. However, I beg leave to withdraw my amendment.

Amendment 27 withdrawn.

Housing: Lettings Fees

Baroness Gardner of Parkes Excerpts

Thursday 19th January 2017 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, the noble Lord addresses wider issues. He will probably know that the DCLG working party on affordability and security has reported and we are now considering our response to it, which will cover many of the issues that he just raised.

[Baroness Gardner of Parkes (Con)]

Are we any closer to having the draft or final regulations under the Housing and Planning Act 2016, which we wanted in the pretty early days even before we started discussing it when it was a Bill? We kept being told that we would get them and, as far as I know, we still have not.

[Lord Bourne of Aberystwyth]

My noble friend is perhaps aware that I have written to noble Lords, partly in response to her previous Question, giving a detailed timetable in so far as I have it on when the regulations will be brought into force, but I will circulate it to her again in case it has gone missing.

Housing and Planning Act 2016

Baroness Gardner of Parkes Excerpts

Thursday 24th November 2016 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, as I say, the announcement made yesterday will add to housing supply. The noble Lord will know that pay to stay remains a voluntary policy—indeed, there are occasions where I think it appropriate that people on high incomes should pay—but I take his comments to indicate support for the move that we have taken.

[Baroness Gardner of Parkes (Con)]

My Lords, can the Minister tell us when we will see the regulations? We are still waiting for them. During the whole of last year’s debates on the Bill, we asked for the draft regulations and were assured that they would be coming shortly. This year, I have asked about them again many times. I do not know whether I have just missed them, and they have come and gone. When are we going to see them?

[Lord Bourne of Aberystwyth]

My Lords, many parts of the Housing and Planning Act are in force already—for example, on brownfield registers, speeding up the local and neighbourhood planning system, raising the performance of local planning authorities and so on. As my noble friend will know, we are looking at regulations on rogue landlords and so on that will come into force next year, partly in April and partly in October. If she wishes me to look at specific areas, I am certainly willing to meet her so perhaps she could get in touch about them.

Renters’ Rights Bill [HL]

Baroness Gardner of Parkes Excerpts

Committee: 1st sitting (Hansard): House of Lords
Friday 18th November 2016 Lords Chamber

[Baroness Gardner of Parkes (Con)]

My Lords, I declare an interest as someone who has rented out property for a long time. I believe I raised this point at Second Reading, and I certainly did on the Housing and Planning Bill last year. What concerns me about all this is where the money is going to come from. If the noble Baroness, Lady Grender, believes that people will simply reduce their rents, it is unrealistic. When she talks about how much rents have gone up, that is nothing compared to how much property has gone up.

[Baroness Grender]

To clarify the question, is the noble Baroness asking where the money that the lettings agencies currently charge would come from?

[Baroness Gardner of Parkes]

I am raising the point because, as I have discussed in the past—not during the last Bill, but previously—the inventory cost has to be borne by someone. If the inventory cost is paid only once, by the person who has the benefit of it, it is not then built into the rent in the way it would be if the landlord paid it, when it would be included in the rent, and every time there was a rent increase, there would be an increase in the inventory cost. It would already have been paid and would be a one-off and out of the way. I am very half-hearted about these suggested changes here.

People are overlooking the situation where, particularly in London, landlords are giving up ordinary residential lettings. There is quite a desperate shortage of lettings for ordinary people wishing to rent, because landlords can make so much more money out of Airbnb, which is totally uncontrolled. I opposed the practice when it came up last year during passage of the Deregulation Act, but no one else did. Now, sure enough, Berlin is bringing in controls. New York, Vancouver—all these places—are finding themselves in the same position. The Mayor of London has acknowledged the problem. It is only capital cities that have ever had that limitation on short lets. Whether it is in the tenancy agreement or not, people are totally ignoring that and simply letting them, because they can earn as much in four months as an ordinary landlord would in the whole year. It is much more complicated

Again, we have talked about references. The Government expect you now to know that your tenant, whoever they are, is entitled to be in the country. As for the days when people could employ someone who was not legitimately here, all that changed, if your Lordships remember, with the situation that came up with the noble Baroness, Lady Scotland. This is much more complicated than people appreciate. This amendment sounds very good and sweeping but the whole thing has not been thought through in enough detail. There might be limits on what you could charge, but as I have said before, I remember letting a property in the days when the Wilson Government just froze rents. They were frozen for about two years, and then they absolutely escalated when the freeze was lifted.

You cannot really find a very easy answer to this, but I am very much in favour of an answer. I thoroughly approve of the idea that you should have access to a register of rogue landlords and all that, but it is unrealistic to imagine that this list of things which the noble Baroness has set out in detail will suddenly become inexpensive or vanish or something. Where is it going to vanish to? This is what I would like to know. I am convinced it will just be built into rents. The noble Viscount, Lord Hailsham, spoke about this recently, as a landlord or someone who had been one way back in history. He said that people had to realise that people who were landlords were doing it as a business, which is true. It is most unfortunate that the supply of housing, both social and ordinary commercial, has vanished, because people need homes and they need them desperately. We all hope that that housing Act will produce more homes for people at affordable prices but the press on it has not been very encouraging. I wait to hear what is said about it.

[Lord Thurlow (CB)]

My Lords, I thank the noble Baroness, Lady Grender, for tabling the Bill. I declare my property holdings as set out in the register of interests. As personal background, I have spent over 35 years working in the property market as a chartered surveyor, most of it on the commercial side, specifically in development letting, investment and funding. There is a close relationship between commercial and residential when dealt with in bulk.

Who is principally affected by the clauses of the Bill? It is the lowest earners—the most vulnerable, in that sense. It is no coincidence that Shelter has briefed on this, and I think it is tragic that that was necessary. It is students in higher education who have to go to their place of education. It is students who become jobseekers and have to move again. It is a transient group. It is immigrant labour that goes to wherever the work is; there is no shortage of that, apparently. And it is my daughter; in fact, this week both my daughters have applied to rent residential accommodation, and they are learning all about the bumps in the road that we are discussing.

This is the era of social mobility. The world has moved on and the working population is much more mobile. People may move several times, particularly in the early steps of their working lives. They are unlikely to buy, we know that; they rent, and the housing provision must respond. I am afraid the evidence suggests that dishonest or at the very least questionable practices are rife. I thoroughly endorse the list of the noble Baroness, Lady Grender, and in fact I think the list is considerably longer than we were given. Only regulation would prevent this.

The problem is that, as we have just heard, it is difficult to identify what might be fair and what is spurious. The list is growing. In fact, I have with me the small print from one of my daughters’ contracts with a national firm of estate agents. The small print, which is smaller than I can read with these new glasses of mine, identifies seven different specific items, several of which I as a practitioner in the marketplace think are spurious. It is shocking, with non-refundable payments and refundable payments that, as we know, are sometimes not refunded. The people affected by this have very little recourse—they do not have the wherewithal or the experience, and they are dealing with an institution. Every time they move, we have heard, they pay again: £1,500, a month’s gross salary for many people. For the dishonest agents, if I may be so bold, it is low-hanging fruit. It is an important revenue source. I am sorry to say that, but I am afraid it is probably true. Rents are not going to rise because these costs are transferred to landlords; that is not how economics works. Rent rises because of supply and demand. If there are not enough flats to go around, the rent goes up, and if there is a surplus, the rent comes down.

I am not one-sided on this. The list of fees is not all bad, as we have also heard. Landlords need deposits and references. However, the clever instrument in the Bill is that the Secretary of State is given the right to approve those fees that are considered fair. An adequate supply of housing would stifle spiralling costs, and competition for tenants would trim the fees. However, the shortage of government support for new rental development, particularly in the social housing sector, means that the private sector fills the gap. There is a new product in the parlance of property, the private rented sector. It does not sound very new but it is new in that context, and it refers specifically to the bulk development of residential property that is exclusively built to rent. It is designed to rent, not for sale. It is not for sale after two or three rental periods; it is designed for long-term renting. Services are engineered into the architecture.

This is a new product which some other countries already enjoy and have done for a long time, but our market has never embraced it in the private sector. There are tens of billions of pounds now looking at this market in the UK. It is happening. Sites have been acquired, developments are being processed and planning is being obtained. They are being built in bulk and they will deliver tens of thousands, at least, of new residential units.

I have spoken to Legal & General, a well-known and respected investment manager. It has allocated more than £100 million for this sector. It will finance and own it itself and wants to completely re-engineer the whole rental model. It wants it to be tenant-friendly, and thinks it can be done to provide it with a worthwhile return. It is possible, and the Government should applaud it.

Existing legislation is just not fit for purpose. It is creaking and, with the scale of new development on the horizon, must be updated. There is design of the highest standards, with the quality services I referred to and everything there for the tenant, but who will find the tenants? The letting agent, unless the organisation owning the property is big enough to run that in-house. It is tragic that this product, for want of a better description, could be brought to its knees in reputational terms by spurious fees and up-front costs frustrating the mobility of labour. The scale of this new prospect deserves our attention, and the Bill is a vital step in preparing for it.

To conclude, the Government have a choice: ignore it and play to the unscrupulous—I fear it is as simple as that—or support this initiative, update the law, give it teeth, stamp out unacceptable practices and protect the most vulnerable. Any Bill improving the lot of those in need is to be welcomed; this is one.

Living Home Standard

Baroness Gardner of Parkes Excerpts

Thursday 17th November 2016 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, the noble Baroness is right to re-emphasise the importance of housing standards. The social sector is subject to a slightly different regime, in which standards apply. As I have indicated, we have provided more money for raids and inspections, and the measures in the Housing and Planning Act that will be brought into force next year will tighten up the position in relation to rogue landlords.

[Baroness Gardner of Parkes (Con)]

My Lords, is not it necessary for councils to make some sort of charge in order to inspect a property? All councils are very hard pushed for money and find it extremely difficult to carry out the necessary inspections.

Short-Term Letting: Deregulation

Baroness Gardner of Parkes Excerpts

Wednesday 19th October 2016 Lords Chamber

Asked by

[Baroness Gardner of Parkes]

To ask Her Majesty’s Government what steps they are taking to address the impact on long-term residential rental properties in London of the deregulation of short-term letting last year.

[Baroness Gardner of Parkes (Con)]

My Lords, while reminding the House of my interests as declared in the register, I beg leave to ask the Question standing in my name on the Order Paper.

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

The Government support the shared economy and monitor trends in private rented housing through the English housing survey. It is right that Londoners should have similar rights as elsewhere in England and be free to sublet their homes where their tenancy, contract or mortgage allows. We do not support the abuse of planning laws, and those in breach face a fine of up to £20,000.

[Baroness Gardner of Parkes]

I thank the Minister for that Answer but, in view of the report in today’s press that Gavin Barwell has just announced a clampdown on rogue landlords and a return of powers to local councils to enable them to deal with crowding in residential lettings, will the Minister confirm that the licensing powers for local councils will also cover Airbnb lettings, which I have reported to the House on a number of occasions, whereby 10 people are routinely occupying one-bedroom flats in some residential blocks for a series of short lets that are not allowed under those leases?

[Lord Bourne of Aberystwyth]

My Lords, I think that to a degree my noble friend has covered the issue with her last point. Powers already exist for landlords to enforce provisions if they are in breach of leases. There are also planning regulations. The mandatory listing changes in relation to HMOs announced yesterday in another place by Gavin Barwell relate to residences where there are shared facilities. That would not cover tower blocks, which I think is the area on which my noble friend is focusing her attention.

Homelessness

Baroness Gardner of Parkes Excerpts

Monday 17th October 2016 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, I share the noble Lord’s feeling that homelessness is something that we need to take action about. He will know that it is a very high priority for the Prime Minister and the Government. I agree with him that the Bob Blackman Bill is worth serious consideration. He will know that it has gone through pre-legislative scrutiny by the Communities and Local Government Select Committee, and the Government are considering it closely.

[Baroness Gardner of Parkes (Con)]

My Lords, will the noble Lord tell us what he defines as homelessness, and particularly hidden homelessness? Does he include all these young people who are forced to remain in the family home who would dearly love to move on and have property, or at least a small dwelling, for themselves?

Housing: Vulnerable People

Baroness Gardner of Parkes Excerpts

Thursday 13th October 2016 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, the noble Baroness is right to address the protection of people with vulnerabilities. Eight thousand of the new supported homes are for people who are vulnerable, elderly and with disabilities, so that will be at the forefront of our mind. More than 6,000 specialised homes are being provided by the Department of Health’s care and support specialised housing programme. I am sure that the noble Baroness’s message will be heard very loudly and taken care of.

[Baroness Gardner of Parkes (Con)]

My Lords, while it is good news to hear that we are encouraging more of this, can the Minister assure us that everything is being done to ensure that where a property that has been adapted with special aids is no longer required because the person has died or moved on to long-term care, someone else with special needs gets it and it does not just get lost to this sector?

[Lord Bourne of Aberystwyth]

My Lords, noble Lords will appreciate that a lot of these issues are dealt with at a local level, so this is not prescribed centrally. It is for local areas to ensure that their particular needs are taken care of. What my noble friend has referred to appears to be common sense. I will seek to assure her by letter that this is common practice. I am sure it is, but there is diversity and it is a matter for local authorities.

Housing

Baroness Gardner of Parkes Excerpts

Tuesday 11th October 2016 Lords Chamber

[Baroness Gardner of Parkes (Con)]

My Lords, I am delighted that the time has been extended and that I am able to speak in the gap. I congratulate the noble Baroness, Lady Bakewell, on getting this interesting debate, which is so relevant at present. I remind the House that my interest is in the register and on record. I agree with the noble Baroness that quality and affordability are very important issues, and I was also interested that my noble friend Lord Patten used the word “accessibility”, whereas I would use the word “availability”. The little difference between the two is quite interesting, but I bring that word forward because I am very concerned about the dramatic reduction in the number of properties to let in London. Capital cities throughout the world are being badly affected by this craze for holiday lettings, usually carried out illegally, as court decisions have made clear. If your lease says you cannot do a short let, then why should you be able to do it?

The noble Lord, Lord Beecham, mentioned last year and the time we spent on the Housing and Planning Bill. Sadly, we are still waiting for the draft regulations. We were assured they would be coming promptly, but nothing has happened. That has been very disappointing, but I was even more disappointed by the Deregulation Act, which threw out council controls of any sort of short-term letting or checks on who is in a property that is meant to be available for long-term letting to residents. Instead, such lets are being converted into full-time holiday and tourist lets, often very much to the detriment of other long-term residents in the blocks. It is more that people are out to make more money, and they can make much more money out of doing short lets. Although we were told that 90 days a year would be restrictive enough, it turns out that if you plan your 90 days around January, you can have 180 continuous days—I think my maths is correct. But people are not even bothering with that: they are letting places the whole year on short-term lets, which are registered mostly with Airbnb or similar organisations. At a time when Paris and New York—it is capital cities that are the worst affected—were proposing regulation, we were deregulating. That was a very unfortunate move, and I am hoping that some control will be brought back and that councils will have a minor role, but at least a role and a right to check on what is happening.

Westminster Council used to have six officers constantly checking who was doing an illegal or legal short let. People used to come to your door and say, “Who are you?”. You were meant to have applied for it—I cannot remember whether it was 10 days before, but it was a fair time. As times have moved on, and people are used to being able to fly somewhere at 24 hours’ notice, that was really not very relevant any more. Instead, the council said it would be willing to introduce a 24-hour registration, but at least it could have gone to someone’s door and said, “Who are you, how many of you are living in this property and how long are you here for?”. The whole concept of this originally was that you should be able to come and live in a room with your host and get a feeling of how people really lived in a country—see life locally, as it was. Instead, that has turned into large and lucrative full-time holiday letting which is affecting hotels adversely and is really quite worrying.

I have a Question next week on this subject, on Wednesday 19 October, and I hope the people who have taken part in the debate today will join in then on aspects that they think are relevant, because it is a serious matter. We cannot afford to lose long-term residential houses. The loss has been very great, and it is definitely to the disadvantage of people wishing to live in London to suddenly find a great shrinkage in the number of properties available. It was very interesting to hear the noble Lord, Lord Best; I can listen to him on the subject for ever because he knows so much about it. He said that under the build-to-rent scheme, which I had high hopes for, no more than 2% or 3% of the properties that are needed will be produced, and that is a cause for concern as well.

Time is running away now, and although we have plenty of time available for this debate I do not want to take too much of it. However, I will mention in passing that the leader of Camden Council appeared on television a week or so ago deploring the complete loss of residential accommodation to let in that area, and I think that is largely due to these tourist lettings and people out to make a killing.

Home Ownership

Baroness Gardner of Parkes Excerpts

Thursday 15th September 2016 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, perhaps the most significant feature of the housebuilding situation is the budget commitment. We have increased the budget for housing for this Parliament. In fact, we have doubled it to £20 billion, £8 billion of which will help to deliver 400,000 affordable housing starts.

[Baroness Gardner of Parkes (Con)]

My Lords, I must remind the House of my interests in the register, and a tenant of mine has just notified me that he has been able to be helped to buy his first home. Can the Minister assure me that these homes will be freehold and not part of an antiquated leasehold system which really means that people have only a very limited time in ownership of the property?

[Lord Bourne of Aberystwyth]

My Lords, as I indicated, we are looking at various tenures. I am pleased that my noble friend found through her acquaintance that we are getting on with this policy. We are committed to 200,000 starter homes in this Parliament. As I indicated, that is with a range of tenures. Some leaseholds, such as 999-year leases, should be long enough for most people in this House.