Housing: Modern Methods of Construction

Baroness Wheatcroft Excerpts

Thursday 5th September 2024 Lords Chamber

[Baroness Wheatcroft (CB)]

My Lords, I thank the noble Lord, Lord Carrington, for his introduction to the debate, and the Committee on the Built Environment for its hard work on this important issue. Clearly, MMC is the way ahead for building, and it has been for a long time. Given the climate in this country, apart from anything else, getting as much done as possible under the cover of a factory makes sense. But, as we have heard today, there are many obstacles to making this the way in which so much building should be done.

The noble Lord, Lord Best, outlined three areas where the Government could move quite quickly to make a difference. I would add another area, and that is public confidence. There was always a potential problem over the image of prefabricated housing, but gradually that has changed. Not everybody had quite the romantic view of the noble Lord, Lord Carrington, but now prefab houses—HUF HAUS, in particular—have become much sought after. Now the biggest problem will be public confidence in modern methods of building, which will be at an all-time low after the publication of the latest Grenfell inquiry report.

I second the noble Lord, Lord Rooker, in looking for a replacement for the Building Research Establishment. The Grenfell report dismissed the BRE as

“marred by unprofessional conduct, inadequate practices, a lack of effective oversight, poor reporting and a lack of scientific rigour”.

Who is going to feel comfortable being asked to buy, or live in, a property that has been overseen by such an organisation? Can the Minister assure us today that the Building Research Establishment will no longer have a role in establishing what materials are safe and what properties are okay for people to live in?

Families with Children: Accommodation

Baroness Wheatcroft Excerpts

Monday 19th June 2023 Lords Chamber

[Baroness Scott of Bybrook (Con)]

The noble Baroness brings up a really interesting point, because we often talk much more about urban and city-based homelessness. From my own experience, I know a lot about rural homelessness. It is hidden; the noble Baroness is absolutely right. The way to deal with this is to make sure that the responsibility, as it is in legislation, and the funding go to local authorities, which know their issues much better than anybody else.

[Baroness Wheatcroft (CB)]

My Lords, houses that were affordable to buy when mortgage rates were at rock bottom will not be affordable now that those rates are rocketing. Can the Minister tell the House what forecast the Government have made of how many families may be rendered homeless by rising mortgage rates?

[Baroness Scott of Bybrook (Con)]

The noble Baroness brings forward a very interesting point, but I am not aware of any work that has been done on that issue. I will certainly go back to the department and ask whether any has been done by either the department or the Treasury; I will write to the noble Baroness.

Redcar Steelworks

Baroness Wheatcroft Excerpts

Wednesday 17th May 2023 Lords Chamber

[Baroness Scott of Bybrook (Con)]

I have to ask those opposite who is creating this uncertainty. It is certainly not the Government, who have invested in this area. Once more, the mayor is very happy for any type of review.

[Baroness Wheatcroft (CB)]

My Lords, can the Minister confirm that it was always part of the plan that public sector investment on a massive scale should be used to hugely enrich two private sector developers?

[Baroness Scott of Bybrook (Con)]

Let me give a little background. Three Thai banks had a hold on the former SSI steelworks land. As negotiations to secure that land broke down, a compulsory purchase order was launched. JC Musgrave Capital and Northern Land Management already had back options on parcels of land within the Teesworks site that were key to those negotiations with the three banks over land owned by SSI, which was already in receivership. The STDC was advised by a top KC that, without this private sector involvement, it would very likely lose that compulsory purchase order. The public/private partnership was agreed by the TVCA, the Cabinet and the STDC board, and it was envisaged in the original business case approved by the Department for Business, Energy and Industrial Strategy, MHCLG and the Treasury that that should be the partnership to take this site forward.

Levelling-up and Regeneration Bill

Baroness Wheatcroft Excerpts

2nd reading
Tuesday 17th January 2023 Lords Chamber

[Baroness Wheatcroft (CB)]

My Lords, this evening, the noble Lord, Lord Heseltine, spoke persuasively of the need for more devolution, but in the Bill, as in so many others, the Government seem intent on grabbing more power for the centre. As I ploughed through it, one character came to mind: the version of Humpty Dumpty created by Lewis Carroll. In “Through the Looking-Glass”, Humpty Dumpty observes:

“When I use a word … it means just what I choose it to mean—neither more nor less.”


In the Bill, the Government reserve the right to determine what their words mean long after our scrutiny has been completed. In her eloquent introduction to this debate, the Minister was gracious enough to acknowledge the widespread concern in the House about the extensive reliance, again, on delegated legislation. She was optimistic that she would be able to justify each of these delegations —I wish her luck with that.

It being late, we have heard many excellent speeches, and I will limit my observations on this dismissal of Parliament to two examples. First, I echo the sentiments of the noble and learned Lord, Lord Thomas: there should be more in the Bill. I take issue with the noble Lord, Lord Walney, on this: there is perhaps a need for flexibility, but one can give a Government too much flexibility. There is reference in the Bill to the 12 levelling-up missions unveiled in February, a list that few could take issue with. As with “motherhood and apple pie”, warm words do not produce results. This is all about delivery.

The Bill makes provision for the Government to report on their achievements in attaining these missions. Clause 2(4) tells us that, should the Government decide that a particular mission is no longer appropriate, that is all their report is required to say. Clause 4 gives Ministers the right to change the metrics and timescale by which progress on any mission is measured. Humpty Dumpty could hardly have done better. Can the Minister give us any assurance that, several years down the line, some missions might not simply be abandoned and others have their targets watered down beyond comprehension?

The Humpty Dumpty approach also runs through the planning legislation which is at the core of the Bill. Let me take the issue of housing, which many noble Lords have cited as crucial to improving the lives and life chances of so many millions in this country. The new infrastructure levy could go towards funding some of the social housing we desperately need. With 1.2 million households on council waiting lists, according to Shelter, this would only make a small dent; more government commitment is required. The proposed infrastructure levy is a potential benefit, yet the Bill says that it could be directed towards “affordable housing”. This is social housing within the meaning of the Housing and Regeneration Act 2008, or—wait for it—

“any other description of housing that CIL regulations may specify.”

Affordable housing is a dubious term at the best of times. Homes that are sold as “affordable” when interest rates are at historic lows become absolutely unaffordable when they rise. I shall be supporting amendments aimed at restricting the definition of affordable housing to what we need it to mean—social rented housing.

Finally, there is a positive; I like to be positive. I am delighted that the Bill acknowledges the importance of heritage in this country. I declare my interest as chairman of the Association of Leading Visitor Attractions. The heritage sector has had a very difficult time. It took a huge hit because of Covid and now, energy prices are having a disproportionate effect on buildings that cannot put in double glazing or solar panels. Will the Minister consider special help, perhaps restoring the cut in VAT? The attractions that are so important in luring tourists and their money to this country would really benefit from this, as would their localities.

Housing: Private Renters

Baroness Wheatcroft Excerpts

Wednesday 22nd June 2022 Lords Chamber

[Lord Greenhalgh (Con)]

That is a very reasonable point. In a sense, we have to recognise that the world is changing and that there are opportunities to build more homes. We see that in the urban setting, where retail will diminish; people are buying online far more than before. Equally, I talk to my friends who live in the country—I am a city guy—who say that there are also agricultural areas that could easily be rezoned to provide opportunities for growth. We need to look at that, and that is why we are bringing forward the Levelling-up and Regeneration Bill to look at how we reform the planning system so that we get the right use of the right places and grow in the right way.

[Baroness Wheatcroft (CB)]

My Lords, many local authorities borrowed money to invest in commercial property; they were not allowed to borrow money to invest in social housing. I wonder whether the Minister can tell the House how much money those local authorities that invested in commercial property have now lost, and how much they might have bettered themselves and the country had they been able to invest in social housing.

[Lord Greenhalgh (Con)]

My Lords, as someone who was a local authority leader for six years and in local government for 20 years, I know that not all councils invested in commercial property. We have some examples, such as Croydon, that got into that sort of game, but I do not think it was something that most councils did. Most councils have been seeking to get back into the council house building business. In 2018 we removed the cap on the housing revenue account, and I think it is great that this generation of council leaders are building more council homes for their residents. Proper oversight will ensure that the sorts of practices that the noble Baroness mentions are kept to the absolute minimum. If necessary, we will move in to take over control if it gets really bad.

Levelling-up Report

Baroness Wheatcroft Excerpts

Thursday 19th May 2022 Lords Chamber

[Lord Greenhalgh (Con)]

I thought this Question might go in all directions, including Stoke. We actually have a department in Wolverhampton and are going to conduct a ministerial board meeting there—but personally, I will be joining remotely.

[Baroness Wheatcroft (CB)]

My Lords, can the Minister simplify things a little and tell the House how much the Government plan to spend on levelling up?

Business and Planning Act 2020 (Pavement Licences) (Coronavirus) (Amendment) Regulations 2021

Baroness Wheatcroft Excerpts

Thursday 8th July 2021 Grand Committee

[Baroness Wheatcroft (CB)]

My Lords, the café society that Covid has generated is to be welcomed. It brings colour and life to our streets, and will continue to do so, providing useful spaces for those who are not ready to ditch all Covid precautions come 19 July and would prefer to do their wining and dining outside and away from terribly crowded areas in future. Therefore, I welcome the idea of extending the speeded-up process for securing a licence that is incumbent in these regulations. However, I agree with the noble Lord, Lord Faulkner, on his regrets at the failure to insist that such eating and drinking areas be made smoke free. Why that should be the case is completely beyond me, since we all know that passive smoking causes great dangers. If we want these areas to be family friendly—or, indeed, friendly at all—having them filled with smoke is simply not sensible, and the Government have the power to stop it.

We know the difficulties that hospitality businesses have faced during the pandemic, and anything that can be done to enable them to do more business and build back their finances is to be welcomed, but that should not entail bringing in unnecessary smoking. However, there are specifics related to the licences which I wonder whether the Minister would look at. Several aspects of pavement licences concern me. First, while we are allowing smoking, there continues to be a ban on fire pits and gas heaters, which seems illogical to say the least. One can wander along the streets in skiing resorts, for instance, where fire pits are perfectly common, and they do not seem to cause any great trouble. I also wonder whether it is right that the Metropolitan Police should continue to insist that management teams in restaurants and pubs with outside seating undergo counterterrorism training. Is that really necessary? The risks seem very slender.

Finally, can the Minister reassure me that local authorities are not using pavement licences, which are reasonably priced at £100, as a means of generating other income by unreasonably charging for excess refuse, street cleaning and other things that they judge to be a nuisance? There have been suggestions of restaurants and pubs being charged excessively for that sort of thing.

Leasehold Reform (Ground Rent) Bill [HL]

Baroness Wheatcroft Excerpts

Monday 24th May 2021 Lords Chamber

[Baroness Wheatcroft (CB)]

My Lords, I must start by declaring an interest as somebody who pays a ground rent. It is not a peppercorn—it would probably buy a few kilos of peppercorns—but I cannot claim to find it too onerous.

The Minister began his remarks by saying that the Bill is intentionally limited in scope, but I can only echo the words of the noble Lord, Lord Blencathra: why is it so limited? It is clearly ludicrous at this stage to be talking about a peppercorn rent. Clause 4(3) states:

“In this Act a ‘peppercorn rent’ means an annual rent of one peppercorn.”


That may explain why weights and measures will be policing this, presumably to check whether the peppercorn is of a certain size and weight. Otherwise, the whole thing is so outdated.

For new properties, the Bill is of course a good move, but existing ground rents need to be addressed. The Competition and Markets Authority estimates, as others have cited, that 18,000 leases have a doubling ground rent clause that applies between every 10 and 15 years. The Minister acknowledges that this is a serious issue. Simple mathematics shows why. If the ground rent is just £200 a year in year one but doubles every 10 years, by year 41 it will be £3,200. By year 71 it will have reached £25,000 a year. No wonder, then, that ground rents are now marketed as profitable investments. According to one of the organisations promoting such an investment, it is possible to generate a return of 5% to 10% a year on a ground rent. Where else can one find such a return without risk and without delivering any service? This is clearly too antiquated.

Of course, one can argue that those who buy leasehold properties with onerous ground rents are subject to the rule of caveat emptor. The noble Lord, Lord Hammond of Runnymede, was eloquent on this subject, and hoped that conveyancers who failed to point this out to their clients would be brought to book. Certainly, there are lawyers out there who are trying to bring such cases and trying to get potential clients interested in such a move. But caveat emptor does not have to apply in every case. Just as the Government moved to protect consumers from onerous interest rates on payday loans, for instance, ground rents now could and should come into the category where people need to be protected by the state.

Clause 2(5) states that statutory extensions will not be subject to these provisions. Why should that be the case? A long lease, many will tell you, is as good as a freehold. Would not this legislation have been the opportunity to demonstrate that, by dealing with the anomaly of escalating ground rents in leases that are being extended under statutory provision? Perhaps reform could go further. Given the existing rights to extend leases, would it not make sense to insist that new properties sold with leases of 99 years or more should be sold with a share of freehold?

Ground rents come on top of service charges. When will the Government move to deal with the malpractice of many landlords in imposing greedy service charges? Far too often, contracts are given to related companies at prices which are really robbing the tenants. These problems often affect new-build properties as much as existing ones—another reason why insisting that a share of freehold should be included in the selling price makes sense. Then the people living in the properties can get themselves together and organise the management of the block.

It is notable that developers of retirement homes have been particularly averse to this legislation. Could that be because they are some of the worst offenders on service charges, yet they argued that they need ground rents as well. They claimed that the ground rents went towards looking after the communal areas—but surely service charges can provide that, and clarity over service charges is what is required in all these situations. So, finally, when will the Government move to make service charges an area that they monitor very carefully and take action on?

Leaseholders and Property Management Companies

Baroness Wheatcroft Excerpts

Thursday 29th April 2021 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, my noble friend knows that the Government wish to extend the benefits of freehold ownership to more homeowners; that is why we are establishing a commonhold council to prepare homeowners and the market for the widespread take-up of commonhold. We share that same drive and ambition to change things.

[Baroness Wheatcroft (CB) [V]]

My Lords, too many property managers and owners have taken advantage of tenants by imposing unreasonable service charges, and often trading with linked companies, so I appreciate the Government’s commitment to finding a clear route to challenge for leaseholders. But what about people who live in sheltered housing—the vulnerable people who really are not able to look after themselves when confronted with an unreasonable agent making outrageous demands?

[Lord Greenhalgh (Con)]

My Lords, the Government are considering under what circumstances fees and charges for leaseholders and for people in sheltered housing are justified and whether they should be capped or banned. That will form part of our response to the review by the noble Lord, Lord Best.

Non-Domestic Rating (Designated Area) Regulations 2021

Baroness Wheatcroft Excerpts

Wednesday 24th February 2021 Lords Chamber

[Baroness Wheatcroft (CB) [V]]

My Lords, I thank the Minister for introducing this statutory instrument in his normal straightforward way. I take the opportunity to pay tribute to my noble friend Lord Heseltine for his tireless efforts on behalf of this country. His farsightedness brought new life to Liverpool, and it is great to see that it will now do the same for the Teesside area, where it is certainly much needed.

As the Minister said in introducing the statutory instrument, the complexity of this scheme can sometimes seem daunting. I certainly felt that way on reading this legislation and the related documents. Therefore, would it be possible to simplify the legislation? One would imagine so. If so, can the Minister undertake to ensure that his department will do so?

I have two more general observations to make on the business rating system. The noble Lord, Lord Hain, spoke very eloquently about the problems that our town centres now face. They were bad before Covid; they are infinitely worse now. What will revive those town centres? Back in 2011, Mary Portas, an authority on retailing, was commissioned to write a report. She came up with a very detailed document that made specific proposals running into the teens, but, as far as I can make out, very few of them have been followed up in any detail at all.

Will the Minister revisit the Portas report and some of the very interesting ideas put forward in it? For instance, she suggested that there should be super-business improvement districts, with new powers to change an area and the planning that goes on within it. She suggested that it should be made much easier for individuals to set themselves up as market traders. Currently, there are so many regulations governing how our markets work that people face almost daunting obstacles in what should be a very simple business and which has, in the past, been a way of producing very successful retail businesses that have brought new rates into an area. Is there a central register of what works in a local authority area to enable it to generate more business rate income?

It is clearly beneficial to an area to have thriving businesses that will generate the income that they will then be able to use, as the Minister said, to improve infrastructure and the area generally. Would it be possible, if it is not done already, for central government to investigate what initiatives work? Does a town centre management scheme, for instance, bring new life into an area? Can educational initiatives be introduced locally that will, before very long, bring new business rates into an area? I would like to see government be proactive on this and would be grateful if the Minister would say whether he thinks that that sort of initiative is possible.

Finally, I echo the words of others in this debate. It is absolutely imperative that the business rates holiday, which was very speedily granted in the wake of Covid and the devastating effect that it had on our high streets, is extended in the Budget. Can the Minister give us any assurance on that?