Housing: New Homes Bonus

Debate between Baroness Royall of Blaisdon and Baroness Hanham

Tuesday 29th January 2013 Lords Chamber

[Baroness Hanham]

My Lords, I am always grateful to my noble friend, because he knows the figures, and he has given them on several occasions. They show that the north-east is in fact working very hard to produce new housing. Of course, he is right: the new homes bonus is not specifically given for housing; it is given as a contribution to areas where new housing has been built. Refurbishing a new library to help with the increased population seems to me to be a perfectly acceptable use of that money.

[Baroness Royall of Blaisdon]

My Lords, the noble Baroness said that the Government hold no national statistics on the impact of the new homes bonus. I wonder whether they have any statistics that show the impact on housing associations, region by region, of the bedroom tax. I speak as someone who lives in the Forest of Dean, and my own housing association, Two Rivers Housing, is being severely impacted by the bedroom tax.

[Baroness Hanham]

My Lords, I have said that we do not keep regional statistics. We do not have regions any more; we have local areas. The regions are not recognised. We work on local areas now, which is far more exact and precise. I do not know the exact answer to the noble Baroness’s question about bedroom tax, but I am very happy to write to her.

Housing: Rented Sector

Debate between Baroness Royall of Blaisdon and Baroness Hanham

Thursday 12th July 2012 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Hanham)]

My Lords, I, too, thank the noble Baroness, Lady Rendell, very much for having initiated this debate. I am sure that she did not sound like somebody from the angry brigade, but she spoke very forcefully and with her usual cogence. I thank her for that and I thank other noble Lords who have taken part. As one might have expected with this debate, it has wandered widely around the subject of housing but, as noble Lords have said, you cannot really think about a house without people or about those people without their conditions. It is perfectly understandable that that is how it should have developed.

We have had some particularly moving examples of bad practice and things going wrong. I do not think any of us would sit here and pretend that everything in the private rented sector was glorious. It is not possible to believe that. I have read the recent report by Shelter with great interest. The key points in it are about the difficulties that some families have in managing within the private rented sector—the insecurity of short tenancies and a general feeling of difficulty over the renewals of rent—have been touched on by noble Lords today.

For a number of reasons that have been raised, many more people are now accessing the private rented sector. There is increased pressure on affordable housing. There are those who could possibly afford a mortgage, but who cannot raise enough for a deposit on a house. That slows down home ownership. Those people enter the private rented market as well and are increasing the need for it.

Many people can not only afford private renting but find it a useful short-term or long-term way of living because of its flexibility. I recognise that those are probably not the people we are talking about this afternoon. We are talking about those on low or medium incomes, many of whom access housing through assured shorthold tenancies. These give initial terms of six months and in general these terms are renewable after the six months expire. At the outset, tenants and landlords can offer initial fixed periods. Shorthold tenancies play an important role in the housing market. There is sufficient flexibility in them, but I would not say that everything was perfect.

The constraints of renting are understood and some of them have been mentioned. However, only 8.2% of tenancies are stopped by tenants by mutual agreement. While it is true that families with children are having to rent, this has not in most cases meant constant upheaval and disruption. However, I accept that there are times when it does, and the 8.2% refers to the people who are giving up tenancies.

We have not heard a lot about the English Housing Survey report today, though the noble Lord, Lord Morris, did mention it. We can all extrapolate and take out the little bits which interest us most, but that is what surveys are about and is one of the advantages of having them. The report shows that most tenants are reasonably satisfied with their accommodation. Where they are not there are regulatory ways by which problems can be dealt with. I will briefly go through some of these.

For example, where there are concerns about the level of rent, people have access even in affordable short-term tenancies to rent assessment committees. People should not therefore feel pressured about increases in rent as there is a perfectly reasonable route to have the rent reassessed. Once it is fixed by the committee, that is the legal maximum that people can be charged. A number of noble Lords referred to the standard of property. If a tenant feels that the landlord is not maintaining it and is failing to carry out repairs, the local authority has powers to deal with that. It can deal with it not only under its own enforcement powers but under the health and safety rating system which could result in the landlord being required to carry out repairs if he will not do them voluntarily.

We have heard quite a bit today about rogue landlords. We recognise that in some places they are a significant problem. Rogue landlords include those who are doing the beds-in-sheds renting that we believe to be completely unacceptable. The Government have been working with local authorities, Shelter and other organisations to deal with the problem, which we recognise. As I think was mentioned, we are shortly going to publish guidance for all local authorities to provide them with advice on how to take action against these rogue landlords, including prosecuting them. Local authorities can deal with rogue landlords, and we have to be really clear about that. They have legal powers to do so, and that will be in the guidance. My department has provided more than £1 million to nine local authorities where beds in sheds is a particular problem to help increase their enforcement activities. Action can therefore be taken.

The private rented sector is a major source of housing and will continue to be so and to have an essential role in the housing market as this Government continue to work to increase the supply of affordable housing, which I confirm we are doing, and to find ways of making land available for development of all kinds. Making land available includes getting every government department to identify its surplus land and make it available for the housing initiatives that are coming up and are in the housing strategy to ensure that there is extra housing. We will not take lessons from the previous Government about the amount of housing that has been provided. One of the reasons why we have less housing than we should have is because there was not quite enough built previously. Of course, houses finished in 2010 were started previously. We are working very hard indeed on increasing the amount of property, and at the moment there is provision for more than 170,000 homes between now and 2015.

I shall develop what the Government are doing at the moment because it has been suggested that we are not doing very much. There is the new homes bonus, which will encourage and help pay for affordable housing and more private housing. We are also marketing new build-to-rent pilot sites through the Homes and Communities Agency. There are the First Buy and NewBuy policies to help with mortgages, and there are mortgage incentives with the banks to help with deposits. We are also putting in place an independent review of barriers to investment in private homes to rent. There is a lot going on. The housing strategy that was published last year goes into much more detail than I can, but if noble Lords go through it, they will realise that the Government expect that with either the public sector, the New Homes Bonus, the private sector or with institutions, we will provide or start to provide the housing that is necessary.

We are working with the industry to build up standards and, as I have already said, we are encouraging local authorities to make full use of the robust powers they already have to tackle dangerous and poorly maintained homes. I was asked about the decent homes standard. We continue to support it to ensure that those properties that fall outside the decent homes bracket are brought up to standard.

It was also mentioned that we have commissioned a report by Sir Adrian Montague on encouraging institutional investment. It is due to be published very shortly and either will or will not include the points raised by the noble Baroness, Lady Royall. However, it will be an influential report that will help us to get institutional investment into housing.

With the limited availability of mortgage finance, there must be an important role for new homes that are built to rent. More homes mean better conditions and less pressure on people to have to live in unsatisfactory and overpriced housing. The point was made today that one of the reasons we have high rents and inadequate housing is the shortage of housing in terms of the size of the population. There are several reasons why demand for housing is increasing, not least of which is the larger number of single-occupant homes while the population is increasing. We also need better homes for older people. There is a lot of demand on housing supply but, along with everybody else here, I accept that that housing supply must be of a decent standard.

I am very sympathetic to the issues that have been raised today. A number of points were made. The noble Baroness, Lady Rendell, mentioned tenants’ deposits and of course they are protected. There is now a requirement for all landlords to ensure that deposits are put into two schemes and that they are returned at the end of a tenancy.

Those on housing benefit account for around 30% of rented housing. While I understand the concern about the cap having come down, housing benefit will be available to most of that 30%. It is mostly in London, if at all, that that has to be reassessed. The right reverend Prelate the Bishop of Chester raised the point that most people on housing benefit are in work. I cannot dispute that but, again, housing benefit is available up to the cap.

I thank the right reverend Prelate for acknowledging that the housing strategy is in place. I should add that the housing associations that he mentioned access money and have their own ways of doing so. However, we are also trying to open up institutional investment again to try to increase the number of properties.

The noble Lord, Lord Morris, referred to the difficulties of young people, particularly those aged 18 to 20. Yes, I absolutely accept that many young people now have to live with their parents for a lot longer than they might like to have done. I had my children living with me for quite a long time, and I am glad to say that they have now moved on. In most families, children do not now find it easy to move out. I hope that I have covered most of the points that have been raised.

[Baroness Royall of Blaisdon]

May I make one comment? I am sure that the noble Baroness is delighted that her children have now flown the nest but I am equally sure that, when her children lived at home, they had a bedroom each. The problem for so many families is that those of their children who have to live with them are probably sofa-surfing because they have their other children living in the house. The tensions that are placed on these families can be immense. That is why we on this side of the House are extremely concerned about the proposals to cap housing benefit for those aged under 25. The tensions that could be exacerbated in those families could break them.

[Baroness Hanham]

I thank the noble Baroness for that contribution. Before I finish, I want to state that the Government are investing £4.5 billion in funding new affordable homes over the next spending review period—not an insignificant sum—and that the private sector funding contributed by providers to deliver these properties is some £15 billion. So there is huge monetary investment in housing, which I am sure noble Lords will recognise.

Again, I thank the noble Baroness for her debate and I thank all those who have taken part. If there are any points that I have not answered satisfactorily, I will write to noble Lords.

Housing: First-time Buyers

Debate between Baroness Royall of Blaisdon and Baroness Hanham

Tuesday 3rd July 2012 Lords Chamber

[Baroness Hanham]

My Lords, I thank my noble friend for her question. With regard to the north-east, I can give her only the figures for FirstBuy, because the NewBuy scheme, which is the latest scheme, cannot identify figures yet as it has not been going for long enough. There were 129 purchase completions by first-time buyers in the north-east recently. Of course, the north-east is really important. As we heard earlier, there are different schemes and different worries. There are also other schemes that help with mortgages. A number of authorities and banks are helping to support mortgages, and the NewBuy scheme will come into that as well. Not only in the north-east but across the country we are beginning to see a solution to what has been a very difficult problem.

[Baroness Royall of Blaisdon]

My Lords, what is the noble Baroness’s response to the construction industry figures that were released this morning, which demonstrate that the industry is desperately in need of a boost? Does she agree that the Prime Minister should focus on alleviating the current housing crisis rather than on future Conservative policies that might include a housing benefit cut for the under-25s? That would have a detrimental effect on many young people, including those on low wages.

[Baroness Hanham]

My Lords, the construction industry is dependent on land that is available to buy. As I am sure noble Lords know, the Government are releasing their own land as fast as they can. There is a very big programme of land release, most of which is to be designated for housing, both private and public sector, along with the infrastructure to support it. Many schemes across the country have already been identified for these initiatives, and the construction industry itself is all ready to go. We know that builders are ready to take up the land that is available, so I am sure there will be a boost to housing in the near future.

Allotments

Debate between Baroness Royall of Blaisdon and Baroness Hanham

Monday 16th January 2012 Lords Chamber

[Baroness Hanham]

My Lords, I cannot give an exact reply to the noble Baroness about numbers. There is, however, strong encouragement for schools not only to work allotments but to have their own facilities in their schools to encourage children to grow food, and many schools do that. Defra is already encouraging that. There is a strong element of enthusiasm and encouragement to make sure that schoolchildren understand where food comes from, and that it does not just come out of a plastic packet.

[Baroness Royall of Blaisdon]

My Lords, clearly this is principally a matter for local authorities, but there is a great deal of best practice to be spread, and I am sure that both the Government, the Opposition and all members of this Chamber can assist in spreading best practice. I am very proud to be a patron of Thrive, a charity which works with disabled people and gardening, and encourages them to have healthy lifestyles and gardens. I would encourage not only the Minister but all Members of this House to get out and spread best practice, because in these straitened economic times, eating healthily and health and well-being are of the utmost importance.

[Baroness Hanham]

My Lords, we can certainly agree with all that the noble Baroness has said, and I congratulate her on giving so much support to this particular aspect.

Localism Bill

Debate between Baroness Royall of Blaisdon and Baroness Hanham

Monday 10th October 2011 Lords Chamber

[Baroness Hanham]

My Lords, I think I hear what my noble friend has to say. I will note that what he says is recorded. It is not a matter for my department, unfortunately, but I am sure that his views will be well received.

Regarding petitions, it is not right to make young people a special case in the way that has been proposed. If young people, then why not retired people, people from ethnic minorities or those with disabilities? It is difficult to group people and say that they can apply for a referendum. Young people and youth councils will, rightly, have every right to campaign and get involved in local democracy, as any other individual or group does.

The noble Lord, Lord Lucas, rightly drew attention to the fact that, while they would not be able to vote in a referendum on a neighbourhood plan, young people will be encouraged to be involved in the formation of what will affect their lives from what is happening round about.

I hope that, with that, the noble Baroness will be content to withdraw her amendment, on the understanding that there is a real commitment to understanding and engaging young people not only at national level but across the local authorities.

[Baroness Royall of Blaisdon]

My Lords, I am grateful to the Minister for her response and to all noble Lords who have participated in this short but important debate.

I have two or three responses. With regard to petitions, there is a specific reason why I tabled the amendment. I understand that the Minister would not wish to have separate sets of rules for elderly people, disabled people or whoever. The rules pertaining to petitions are for electors—therefore, people over 18. I am suggesting that there should be some means for people younger than 18 to be able to petition.

On youth councils, I was delighted to hear what the noble Lord, Lord Tope, said about what is happening in his council, and clearly there are things happening up and down the land. The fact is, though, that this is good practice but it is not everywhere. The Minister on behalf of the Government, we as the Opposition and indeed society should be doing more to ensure that young people are aware of what is happening. So often it is the same young people who participate in youth parliaments as participate in youth councils. I do not denigrate what they are doing—it is fantastic—but there are many other young people who we need to draw into this magic circle. We need to look together at innovative ways to do that. I trust that the Minister might go away and ask her officials to think about how we can ensure that there is a wider store of people whom we can enthuse about democratic engagement and engagement in our society.

The noble Lord, Lord Tope, was right that so often we claim that we are going to listen to what people say, especially young people, but do not act upon it. We have to exhort decision-makers at every level, including at local council level, to take into account what young people are saying.

I am afraid that I have to return to a political point. I realise that the Government want to do their utmost to consult young people about the services that they want in their local areas, but the fact is that the cuts are such that there is no longer any money for this to be carried out by local authorities. Young people have needs that they can and do identify, but the answer that comes from local councils is, “We’re afraid we can’t do this because the money simply isn’t there”. As I said earlier, quite often local councils turn to charities and volunteers. I salute the fantastic work done by charities and volunteers, but we cannot rely on them alone. We have to have a proper youth service, properly financed up and down the country.

I plead with the Minister to go back to her officials and try to ensure that local authorities take youth services into account when they are looking at their budgets for next year. Youth services are too easily cut. At the moment, young people in our society are often not heard when they are making their arguments to people in authority, and I plead with the Minister to try to ensure that local authorities listen both to the arguments put by young people and to their needs in our society. With that, I beg leave to withdraw the amendment.

Planning

Debate between Baroness Royall of Blaisdon and Baroness Hanham

Wednesday 14th September 2011 Lords Chamber

[Baroness Royall of Blaisdon]

To ask Her Majesty’s Government on what basis they consider that the current planning system needs substantial change.

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Hanham)]

My Lords, the planning system that we inherited is very bureaucratic and does too little to encourage sustainable development or community involvement. Rather than imposing targets or blueprints from above, this Government are changing things so that local people and their councils can decide what they need and how they accommodate it. Our reforms will create sustainable growth by working with people, not against them, and not at the expense of the environment.

[Baroness Royall of Blaisdon]

My Lords, I thank the noble Baroness the Minister for her reply. Of course we need more affordable homes, but I am not interested so much in the arguments as in the basis, or evidence, on which the Government are putting forward their proposals. Can she give the House the evidence for their proposals or perhaps put them in the Library? Can she for example confirm that 80 per cent of all planning applications are approved and that there are extant planning permissions, right now, for 330,000 houses, which have just not been built?

[Baroness Hanham]

My Lords, I think it is probably correct to say that 80 per cent of planning applications are approved. It depends how long it takes for them to be approved. I believe that over 3,000 applications have been outstanding for well over a year. It is also true to say, I think, that as far as democracy is concerned, over 80 per cent of planning applications are considered by officers, something that was dictated by the previous Government. They do not have the democratic input that one would like. Somewhere along the line the local community is getting left out on this, and we need to put that right. It has been said that the land for those houses—I think the number is 240,000 rather than 300,000—amounts to about one year’s need in this country at the moment.