Leasehold: Property Management Companies
Debate between Baroness Penn and Lord Best(2 months, 1 week ago)
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Baroness Penn (Con)
Following previous Questions I looked at the example of Scotland, which we do seek to learn from, but the circumstances there are significantly different. At the time, there were only some 9,000 long leasehold properties in Scotland, compared with around 5 million leasehold properties in England and Wales. The majority of Scottish leases had ground rents of only £2.50 per year, whereas the average ground rent in England is £300 per year. It is more complicated to take reform forward in England, but the Government are committed to doing this. The Leasehold and Freehold Reform Bill will take important steps toward delivering commonhold as an alternative in future.
Lord Best (CB)
My Lords, there are some very good things in the Leasehold and Freehold Reform Bill, but the Government have stopped short of instituting a proper regulator of managing agents, which would solve many of these problems and difficulties. Why stop short? Why not do the job properly and have a regulator of property agents?
Baroness Penn (Con)
I welcome the work of the noble Lord on this issue, and I know that your Lordships will be looking at it further in Committee. It is already a legal requirement for property agents to belong to one of two government-approved redress schemes. We also welcome ongoing work undertaken by the industry itself to raise professionalism and standards across the sector, which will make property managing agents more accountable to leaseholders. We will keep that and the question of further regulation for the sector under review.
Housing: Accessibility Standards
Debate between Baroness Penn and Lord Best(2 months, 3 weeks ago)
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The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Penn) (Con)
My Lords, we have proposed to mandate the M4(2) requirement in building regulations as a minimum standard, leaving the current M4(1) standard to apply by exception only when M4(2) is impractical and unachievable. There will need to be a further technical consultation that the building safety regulator will need to take forward as part of its future work plan.
Lord Best (CB)
My Lords, I am grateful to the Minister for her reply, and to the Government for announcing that these higher standards for lifetime homes will be implemented and mandated through the building regulations. I say that on behalf of the many charities that have been campaigning for years to have these higher standards brought into practice. But that announcement was 18 months ago, and we have seen very little progress in getting on with the consultation that should have followed. Since that time, 220,000 properties have been built that do not accord with the new standards, and every further month we leave the consultation, another 13,000 homes are built that do not accord with the standards. When will we see some results from the Government on this?
Baroness Penn (Con)
I am afraid I will have to disappoint the noble Lord, as I cannot give a specific timeframe for that further work. The building safety regulator is responsible for introducing updates to the building regulations and it is a new organisation with a busy programme of work. However, his points are well made. To reassure him, we are taking these considerations into account in a number of ways. For example, last December we published an updated NPPF which included a specific expectation that, when planning housing for older people, particular regard is given to retirement housing, housing with care and care homes. This reflects the Government’s understanding that we need to take into account accessibility and the changing needs of our population as we build new homes.
Long-term Plan for Housing
Debate between Baroness Penn and Lord Best(3 months, 3 weeks ago)
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Baroness Penn (Con)
My Lords, we announced a number of different changes at the end of last year. However, as I said to both the noble Baronesses, the standard method for assessing housing need remains the starting point for local authorities. It is only in exceptional circumstances that we would expect them to move away from that, and that must be well evidenced. In such circumstances, where it is not appropriate for that area, there is a way and method for those local authorities to put forward a well-considered and well-thought-out local plan, which would have a much better chance of being delivered than something that does not command local support and does not suit the needs of the local area.
We have made other changes that may result in the changes that my noble friend talked about—for example, by removing the buffers needed on land supply set out in local plans. They go over and above the amount of land needed to deliver against the assessed housing need for an area. Where local authorities have done the right thing, put a plan in place and identified the land they need to deliver against the local housing need in their area, it is not the right way forward to require those local authorities to hold a 5% or 10% buffer on top.
Lord Best (CB)
My Lords, I pick up on a point made by the noble Baroness, Lady Pinnock. If we could see the production of decent, accessible, energy-efficient, companionable, new retirement housing for older people needing and wanting to rightsize, we could free up tens of thousands of family homes, which are so badly needed. The planning system can allocate sites, not least urban sites that regenerate town centres, and those absolutely essential local plans can stipulate requirements for a proportion of such housing in all major developments. I add that at the same time removing stamp duty for purchases by those over pension age would stimulate the market, increasing revenue to HM Treasury through the chain that follows, and that housing for older people saves massive sums for the NHS and adult care services. Will the Minister get behind all those trying to boost the output of well-designed homes for the estimated 3 million older people who are interested in downsizing and rightsizing?
Baroness Penn (Con)
I absolutely support the remarks by the noble Lord on needing the right housing to meet the needs of people at all stages in their lives. There are changes within this update to the NPPF that will encourage the delivery of older people’s housing, including retirement housing, housing with care and care homes. In addition, the Government have the Older People’s Housing Taskforce, which is exploring broader changes that we might wish to see to encourage housing for older people to be built in the areas where it is most suitable and most needed. Also, there is the point that the noble Lord made: ensuring that we have the right solution for older people has a knock-on effect throughout our housing supply on the availability for those who may be trying to get on the housing ladder in the first place.
Home-ownership Rates
Debate between Baroness Penn and Lord Best(4 months, 3 weeks ago)
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Lord Best (CB)
My Lords, in the longer term it would clearly make homes more affordable for first-time buyers if there were enough homes to go round and current acute shortages were eased. In the short term, does the noble Baroness agree that it is ridiculous that so many young people pay more in rent to private landlords than they would pay for a mortgage to secure a home of their own if only they could persuade the banks and building societies to lend more sensibly? If she agrees, will the Government look at extending the new and useful mortgage guarantee scheme to reassure lenders and at the DWP’s support for mortgage interest scheme, which needs to be a benefit and not a loan, to pick up those rare cases where there are serious arrears?
Baroness Penn (Con)
My Lords, I have good news for the noble Lord on the first point. The mortgage guarantee scheme has been extended to June 2025 to allow more 95% mortgages to be available to first-time buyers. We have also made changes on support for mortgage interest. Since April, we have allowed those on universal credit to apply for a support for mortgage interest loan after three months rather than nine. However, it is right that it remains a loan rather than a grant in these circumstances.