Leasehold Reform (Ground Rent) Bill [HL]

Baroness Ritchie of Downpatrick Excerpts

Monday 24th May 2021 Lords Chamber

[Baroness Ritchie of Downpatrick (Non-Afl) [V]]

My Lords, it is a pleasure to follow the noble Lord, Lord Best, who has a wide knowledge of housing—especially housing policy matters. I remember meeting him some years ago when I was the then Minister for housing in Northern Ireland.

This Second Reading of this small piece of housing finance legislation provides an opportunity for the Government to set out how they intend to fully reform the leasehold provisions within the legislation in England and Wales. Instead, in this instance the Government have chosen to deal with the reform of ground rent. Although this is welcome, it represents only part of the change that is required and is a missed opportunity for the Government to fully address and embrace the needs of communities within the wider housing field.

Last week your Lordships’ House debated the Queen’s Speech; there was much reference to the need for building better for the communities and societies of the future in the post-pandemic phase. A better way to do that is through greater accessibility to social and affordable housing; the sustaining and provision of new jobs; investment in skills and training; the provision of decent homes and a reformed welfare/social security system; regeneration of our towns and cities, and investment in the rural economy. All those sectors are interlinked, and central to them all is the provision of affordable and social housing so that communities have a kick-start as we rebuild out of the marginalisation and disadvantage created by the pandemic. Housing provision offers communities and people a safe basis on which to rebuild their lives following the pandemic, and homes provide that necessary foundation and security to individuals and families.

However, and as a matter of regret, the Government in many ways are still ensuring that the housing market is geared towards the developer and have offered reform only of ground rent, which is referred to by this leasehold Bill. I ask the Minister: where are the other components required in leasehold reform that were promised? In July 2017, the then Conservative Government under Prime Minister May ran a consultation seeking views on measures to

“tackle unfair and unreasonable abuses of leasehold”;

in particular, the sale of

“new leasehold houses and onerous ground rents.”

In December 2017 the Government published their response to the consultation and stated that they would seek to bring forward legislation

“as soon as Parliamentary time allows, prohibiting new residential long leases from being granted on houses.”

The Government also stated that ground rents allow developers to maximise their profits, despite consumers seeing no clear benefit from them. Consequently, they also reaffirmed that they would introduce legislation so that ground rents on newly established leases of houses and flats were set at a peppercorn rate. I recognise what other noble Lords have said—that such a provision could not be retrospective—but could a time limit not have been placed on that to ensure that, in many cases, exorbitant ground rents are truly tackled?

Furthermore, the Government asked the Law Commission to review leasehold enfranchisement to make it easier, quicker and more cost effective for leaseholders to buy their freehold or extend their leasehold enfranchisement. The consultation ran until January 2019 and in July 2020 the Law Commission published its findings. It identified problems with leaseholds and made several recommendations, and in January this year the Secretary of State, Robert Jenrick, stated that the Government would bring forward legislation to set future ground rents to zero in the next parliamentary Session—hence the Bill under discussion today. He stated that it would

“be the first part of major two-part legislation to implement leasehold and commonhold reforms in this Parliament.”—[Official Report, Commons, 11/1/21; col. 11WS.]

The Minister has today referred to the commonhold forum that has been established, which I understand he may chair. In that respect, can he indicate the timeframe for this legislation, which would involve enfranchisement and the whole area of commonhold?

I note that this legislation has been welcomed by the property associations and the Conveyancing Association. Notwithstanding this fact, the property associations have called on the Government to extend the provisions of the Bill to those who would be exempt from it as drafted. Why was the legislation to extend the provisions on ground rents not extended to those who own a leasehold property? Maybe the Minister could provide answers to those questions, which have already been referred to by previous noble Lords in the debate.

I am reminded of the words of the noble Baroness, Lady Andrews, in last Monday’s Queen’s Speech debate:

“There was nothing on the scale of leasehold reform that we were anticipating. Yes, ground rent reform is important, but it is the low-hanging fruit of leasehold reform.”—[Official Report, 17/5/21; col. 408.]


This percipient statement clearly highlights what is not in the ambit of leasehold reform but needs to be, thus highlighting the importance of a more all-encompassing reform of leaseholds. The noble Baroness, Lady Andrews, referred to those issues today in her speech.

There is a need to correct the injustices faced by leaseholders locked in unfair contracts and faced with rip-off costs. The leasehold model needs to be totally reformed to include some of the following provisions: to impose a cap on ground rents for existing leaseholders at 0.1% of the property value up to a maximum of £250 a year; to set a simple formula for leaseholders to buy the freehold to their home, or commonhold in the case of a flat, capped at 1% of the property value—I ask the Minister whether that will be included in future legislation on commonhold; to crack down on unfair fees and contract terms by publishing a reference list of reasonable charges, requiring transparency on service charges and giving leaseholders a right to challenge rip-off fees and conditions of poor performance from service companies; and to ensure that residents are given greater powers over the management of their homes, with new rights for flat owners to form residents’ associations and by simplifying the right to manage. Can the Minister indicate when the Government will be prepared to bring forward supplementary legislation to reflect the foregoing points, which would encompass a total reform of the leasehold system?

I suppose I am a little envious, from a Northern Ireland perspective, because there is not much set out here in terms of leasehold. Rules on leaseholds are set out in individual contracts and there is no regulation of service charges in Northern Ireland. I will be pursuing this legislation—and, I hope, subsequent legislation—with the Minister for housing in Northern Ireland. But, in the meantime, can the Minister indicate whether discussions have taken place with the devolved Administrations—notwithstanding the fact that all matters to do with housing are devolved—about the content of this legislation and future reforms of the leasehold sector?

I have posed several questions to the Minister and look forward to his response.

Inclusive Society

Baroness Ritchie of Downpatrick Excerpts

Wednesday 14th April 2021 Grand Committee

[Baroness Ritchie of Downpatrick (Non-Afl) [V]]

My Lords, I congratulate the noble Baroness, Lady Lister, on securing this important debate on how government, both central and local, and the community and voluntary sector should work with the public to achieve a more inclusive society in this pandemic world. I agree with the noble Baroness, Lady Lister, that now is the time to go back to Beveridge and update it and create that “better place for all” as we learn the lessons from the pandemic.

The noble Lords, Lord Brooke and Lord McKenzie, referred to the British Academy policy document published in March, which is instructive because it provides all of us with a structural framework for how that rebuilding should take place and how the reshaping of our society should take place.

However, to be clear, prior to the pandemic we did not have an inclusive society, with a growing percentage of people with a dependency on food banks, piercing levels of austerity, poverty, marginalisation and a social security system that seems fixated with penalising those least able to pay. The Government talk about levelling up—surely this should mean the development of greater levels of equality through the location of services, and addressing unemployment and investment issues, outside London and working with the devolved Administrations to bring about better levels of social inclusion and cohesion.

It is worth noting that attendees at a United Nations summit more than 25 years ago defined an inclusive society as a “society for all”. Policy responses have been introduced in the years since, although questions remain about how progress can be measured. The Covid-19 pandemic has represented a setback towards realising that goal in many areas, but there is now a compelling need to address the further development of a more inclusive, cohesive and fairer society as we move out of the pandemic, with the implementation of the vaccination programme, intensive testing and tracing programmes, and the government’s policy objectives for the levelling-up agenda.

UN Secretary-General António Guterres has noted that the Covid-19 pandemic is

“affecting every aspect of our societies”.

It is also revealing the extent of exclusion that the most marginalised members of society experience. In that March report, the British Academy looked at the long-term societal impacts of Covid. It covered several areas: increased importance of local communities; low and unstable levels of trust; widening geographical inequalities; exacerbated structural inequalities; worsened health outcomes; and growing health inequalities. More importantly, the report stated:

“The pandemic offers an opportunity to adapt and improve the resilience and responsiveness of our economic structures. A different economic structure could be more inclusive, sustainable and green.”


In view of the challenges set down today by many noble Lords, including the noble Baroness, Lady Lister, can the Minister indicate what the Government’s real policy and operational objectives are in terms of the levelling-up agenda for the location of resources and investment to bring about social inclusion and cohesion?

Housing Strategy

Baroness Ritchie of Downpatrick Excerpts

Wednesday 24th March 2021 Grand Committee

[Baroness Ritchie of Downpatrick (Non-Afl) [V]]

My Lords, I would like to take this opportunity to congratulate the most reverend Primate the Archbishop of Canterbury and the Church of England’s commission on producing such a seminal report and policy document on the need for a long-term housing strategy for England. I also commend the most reverend Primate for securing this debate on this important and timely issue, particularly given the pandemic situation, which has pointed up the fragility of human relationships and our interdependence on one another and our communities.

This housing report is set very much in social justice terms. I agree with the most reverend Primate the Archbishop of Canterbury that the central tenet or thesis of the document is the need for good, affordable housing for all and to help people, particularly in the post-Covid scenario. Therefore, I look forward to the Minister’s response to this debate.

Access to suitable housing, whether in the social or private sphere, is a fundamental human right. Coming from Northern Ireland, I can cast my mind back to the civil rights movement there in the late 1960s, where access to housing was a major issue and was caught up in sectarian constitutional politics. One of the slogans of that campaign was “A house based on need and not on creed”. It is interesting to note that the Northern Ireland Housing Executive was formed out of that campaign in the early 1970s. It established an allocation system for social, or public authority, houses based on the principle of need. In fact, the housing associations allocate houses according to where people appear on the Housing Executive’s list. That principle has lasted to this very day. There is absolutely no doubt that housing provision and housing allocation should be based on need.

Access to suitable housing is particularly important during the pandemic and post-pandemic phases. People have to feel safe and secure. As we consider those from the BAME communities, many of whom feel marginalised and isolated, it is important that they have secure shelter within thriving, healthy communities with plenty of open space for recreation.

Therefore, this report from the most reverend Primates the Archbishops of Canterbury and York is very timely. It estimates that so many people are living in overcrowded, unaffordable or unsuitable homes. Responding to these issues, it makes a number of recommendations, all of which I support, aimed at those involved in the housing sector, including the Government. The report sets out a number of recommendations to address the issues, based on five core values: sustainable, safe, stable, sociable and satisfying for all. They should be central to any housing strategy or policy.

The report’s recommendations include actions for the Church of England, the Government and others involved in the housing sector. It recommends that the Church of England commits to using its land assets to promote truly affordable homes and calls on the Government to produce a 20-year housing strategy backed by an increase in public capital investment and a phased reduction in the price of land. It argues that, in the short term, the Government should review the social security system as it fails to provide adequate housing support for a large number of low-income households. I have argued for some time in your Lordships’ House for the need for a root and branch review of the social security system to focus on the income needs of individuals, which will obviously become more acute as a result of the pandemic.

Other recommendations aimed at a variety of those involved in the housing sector include ensuring longer-term security of tenure, introducing an explicit duty of care on landlords, improving the quality of temporary accommodation, and removing unsafe cladding from all buildings. I note the Government have stated that they welcome the leadership of the Church of England and that taking action to tackle our growing housing emergency and looking at how church land can be used to fight homelessness is welcome.

I have some questions for the Minister. What positive, concrete steps will the Government take, working with all sectors within the affordable and social housing regime, to increase the supply of houses and ensure that planning policy and strategy involve the healthy development of communities with recreational space? Will the Government bring forward a composite housing strategy encompassing homelessness, the affordable and social housing sectors, overcrowding, increasing the supply of houses, the rights of renters, unsafe cladding, energy efficiency of homes, and fuel poverty? What legislative provisions will be introduced to address standards in the private rented sector, houses in multiple occupation, and overcrowding to protect the health and well-being of occupants?

What further measures will the Government bring forward to ensure that all houses, apartments and flats in the public and private rented sectors are safe from fires and that all external cladding will be removed and replaced with fire-resistant materials to avoid another Grenfell, with such unwarranted loss of life? Will a comprehensive scheme to deal with external cladding issues be developed?

I have some experience in the housing field as a former Minister with responsibility for the provision of social housing in the mid-2000s in Northern Ireland. We did some significant work with the noble Lord, Lord Best, and the noble Baroness, Lady Ford. We concentrated on increasing the supply of housing, implementing funding models to bring in private finance for the provision of housing, working with the corporate banking sector and housing associations to increase the supply of housing, using government land for the construction of houses, thereby reducing the cost of housing units, and deploying the use of developer contributions. All this added the distinct multiplier effect that housing construction has on the economy and job creation. There was also a concentration on the redevelopment of housing and green open spaces in inner-city Belfast. Parts of these areas had been subject to sectarian violence. The houses were derelict and in urgent need of repair. Another aspect of housing renewal was the use of former military sites for housing provision. All this provided regeneration and added to the supply of housing.

I therefore think that there may be similarities to what we did in the Church of England’s report, which is focused on social justice, fairness, equality and accessibility in housing provision and recreational spaces, chiming with the fact that homes and communities should be created to be sustainable, safe, stable, sociable and satisfying for all.

In commending the work of the most reverend Primates, I wish them well in their endeavours in the housing field, and I hope that the Minister pays attention to the contents of the report and works with the Church of England and others in the housing field to implement many of the recommendations. I look forward to the Minister’s answers to the questions that I have asked today.

[The Deputy Chairman of Committees (Lord Faulkner of Worcester) (Lab)]

My Lords, I have been asked to try calling the noble Lord, Lord Griffiths of Fforestfach, for a third time. Is Lord Griffiths of Fforestfach there and able to take part? I am afraid we are getting silence. I call the right reverend Prelate the Bishop of Newcastle.

Non-Domestic Rating (Lists) (No. 2) Bill

Baroness Ritchie of Downpatrick Excerpts

2nd reading & 2nd reading (Hansard) & 2nd reading (Hansard): House of Lords
Monday 18th January 2021 Lords Chamber

[Baroness Ritchie of Downpatrick (Non-Afl) [V]]

My Lords, it is a pleasure to follow the noble Baroness, Lady Thornhill. I will address the Non-Domestic Rating (Lists) (No. 2) Bill. I happen to agree with the noble Lords, Lord Hain and Lord Cormack, that there is a fundamental direct correlation between business rates and the prosperity of our towns and cities, and there is a clear need for business rate reform. In his opening address, the Minister referred to a report on this being forthcoming in early spring. I have to say that that will be challenging, because this fundamental review will have to reflect what has happened as a result of the pandemic, that existing evaluations or revaluations have taken a considerable time and that there are about 50,000 appeals with the VOA. So what will be the constituent parts of that review, when will it be published and when will it be implemented? Will it mean further legislation?

Initially, I referred to the fact that there is a direct correlation between the prosperity of our towns and cities—as already referred to by the noble Lord, Lord Cormack—and business rates and revaluations. There is a need to protect, boost and regenerate high streets. An opportunity must be given during this pandemic to rebuild businesses and their revenue-creating potential. Many of them have been forced to close because they are considered non-essential. Some were never able to open following the first lockdown, including many in the hospitality and retail sector, and they have lost a lot of important revenue. That must be reflected in the Government’s root-and-branch review of business rates. They have also had to compete with large out-of-town supermarkets and the online trade from companies such as Amazon. Therefore, those retail businesses and general businesses have found themselves undermined in every sector. This must be addressed.

Will the Minister have a conversation with ministerial colleagues in BEIS and in the Treasury about a revamp of our towns and cities, putting the heart back into our towns and cities with a freeze on commercial rents for at least one year, a business rate and business taxation reform—which has already been referred to by myself and other noble Lords—a possible rethink or lifting of Sunday trading restrictions, a rethink on the extension of permitted development rights, extension of the towns fund beyond the 101 locations, the expansion of business improvement districts and the expansion of city deals, working with local government, and for all those to happen and be constituent parts of any plan?

This requires a total regeneration plan for our high streets, coupled with that root-and-branch review of the business rates system that reflects what has happened to our businesses as a result of the pandemic. Measures need to be put in place to protect the independent retailers that are having to compete with the large supermarkets which are busy trading when many of them are closed. So can the Minister indicate what action will be taken to address those areas and ensure that a fairer, more equitable business rating system is implemented that reflects the challenges, difficulties and problems faced by all businesses as a result of the pandemic? I have talked to the Booksellers Association, which has no particular issue with 2021 as a base year for 2023 but would like to see some form of transitional relief.

Town and Country Planning (Permitted Development and Miscellaneous Amendments) (England) (Coronavirus) Regulations 2020

Baroness Ritchie of Downpatrick Excerpts

Thursday 10th September 2020 Lords Chamber

[Baroness Ritchie of Downpatrick (Non-Afl) [V]]

My Lords, I am delighted to take part in this debate, and I welcome the opening speeches by the noble Lord, Lord German, and the noble Baroness, Lady Wilcox of Newport. For me, this statutory instrument represents an infringement of the rights of communities to their natural environmental space. It is a major change in planning policy, which really belongs in primary legislation. In that respect, I have several questions for the Minister.

The noble Lord, Lord German, has already elaborated on his committee’s report. What consideration did the Government, and the Minister, give to the requirement for possible financial assistance for the provision of affordable housing, and the whole area of developer contributions? I recognise the need to uplift the economy, but why is there a need to underpin developers at the expense of communities and their housing needs? Why allow relaxed planning regulations in the guise of permitted development rights?

What consideration was given to other environmental matters, including landscape issues, and to the resilience of existing buildings in accommodating such top-floor extensions? How will the technical resilience of buildings be assessed and measured, particularly if the existing buildings are in low-lying areas? What consideration was given to the impact on the local environmental amenity and the needs of existing dwellers? Sometimes existing dwellers do not like this densification, or gentrification, as it is sometimes called. What consideration was given to prevailing public planning policy on development matters? Having had a cursory look at the measures, I would say, very little. I regret that the Government have not given that greater emphasis. Given the history of the Grenfell Tower fire in 2017, was any consideration given to the need to impose the requirement that materials in such extensions should put safety first, and be resistant to fire damage?

Finally, can the Minister outline why the Government have deviated, or want to deviate, from the developer contribution that has been central to affordable and social housing public policy for many years? As a former Minister for housing in Northern Ireland, I encouraged it, because it provided much-needed affordable housing and, as the noble Baroness, Lady Wilcox, said, much-needed community development in local areas.

Business and Planning Bill

Baroness Ritchie of Downpatrick Excerpts

Committee stage & Committee: 2nd sitting (Hansard) & Committee: 2nd sitting (Hansard): House of Lords
Tuesday 14th July 2020 Lords Chamber

[Lord Hendy (Lab) [V]]

My Lords, I thank my noble friend Lord Hain for moving this amendment and I agree with everything that he said in support of it. I shall add just one point—the essential modesty of the amendment.

Last month, 30 June marked the 70th anniversary of the ratification by the United Kingdom of Convention No. 98 of the International Labour Organization, one of the two most fundamental conventions in international labour law. It has not merely been expressly ratified by no fewer than 167 nations but is also considered to be part of customary international law. Article 4 of the convention calls on ratifying states to take measures

“to encourage and promote the full development and utilisation of machinery for voluntary negotiation between employers or employers’ organisations and workers’ organisations, with a view to the regulation of terms and conditions of employment by means of collective agreements.”

Article 6 of the 1961 European Social Charter—of the Council of Europe, not the EU—was ratified by the UK 48 years ago and makes similar provision.

In addition to compliance with domestic law, the rule of law requires states to comply with such ratified provisions of international law. As the late Lord Bingham put it in his well-known public lecture on the rule of law in 2006, the existing principle of the rule of law

“requires compliance by the state with its obligations”

in international law—the law that, whether deriving from treaty or international custom and practice, governs the conduct of nations. I do not think that that proposition is contentious.

This modest amendment does not ask, as the UK’s binding international legal obligations do, for machinery for collective bargaining to be established in the present context. It merely asks for the Government to provide a strategy for collective co-operation. It is a point of principle shared by me and noble friends that workers should be involved in important decisions of the businesses that employ them, as that is to the mutual benefit of both, as my noble friend has just pointed out. Many such decisions will arise in relation to this Bill. For myself, I am unable to discern any rational objection to the amendment and I look forward to hearing the Minister on the subject.

[Baroness Ritchie of Downpatrick (Non-Afl) [V]]

My Lords, I support the amendment in the name of my noble friend Lord Hain. It underscores the principles of the machinery for voluntary negotiation, partnership and co-operation. Surely the Minister will see fit to support it. It would encourage good work between employers and employees to ensure better productivity, better performance and better output levels, bringing benefit not only to the business and the employer but to the employees, because they would be directly involved in the decision-making.

You have only to look at the work that Unite has been doing in the whole coronavirus operation with test, track and trace. I looked at the German model of work councils, which are very much about voluntary negotiation between the employee and the employer, giving due recognition to the work of both but underscoring the principle of better output and better performance. They boost profitability, lift living standards and enhance the job prospects of all the employees directly involved.

I am very content to support this amendment in the name of my noble friend Lord Hain because it would bring about better working relationships and better co-operation, which, particularly at a time of a pandemic, are urgently required.

Covid-19: Housing

Baroness Ritchie of Downpatrick Excerpts

Monday 18th May 2020 Lords Chamber

[Lord Greenhalgh]

The noble Baroness is right. It is time to return to normality as quickly as we can but we need to ensure that it is safe to do so. We need to recognise, as the Secretary of State said in his Written Ministerial Statement, that over 450 sales have been stuck in the system, unable to be addressed, and a substantial number of rentals have not gone ahead. Every month some 300,000 tenancies come up for renewal. At the same time, we know the contribution that the construction sector makes to our economy and the need to get new homes built. That needs to happen safely but it needs to happen as soon as possible.

[Baroness Ritchie of Downpatrick (Non-Afl)]

My Lords, what discussions have taken place with the devolved institutions about the need to increase the provision of social and affordable housing to address the housing need and homelessness that will ensue following the coronavirus pandemic?

[Lord Greenhalgh]

I do not have the answers to hand with regard to specific discussions. Housing is a devolved matter, as the noble Baroness knows, but I am sure that discussions between officials will happen.