Private Rented Sector
Debate between Clive Betts and Jeremy Corbyn
Mr Betts
Precisely, and the Committee’s view was very simple. These arrangements are—or at least should be—for local authorities to determine. Local authorities know their own areas and there is a big difference between one local authority and another. Even within London and within local authorities themselves there are big differences, so we hope the Government will recognise the value of giving a local authority a range of powers to tailor requirements to the needs of a particular area.
Jeremy Corbyn
My hon. Friend must be aware that in areas of high housing demand such as London, the six-month shorthold tenancy means that any tenant who has the temerity to complain about conditions to the environmental health service, or anybody else, rapidly finds their tenancy terminated. They then become homeless or have to move some distance away. There must be proper protection for people who legitimately exercise their right to complain.
Mr Betts
Yes, and the Government are consulting on retaliatory evictions as part of their consultation document, which is to be welcomed. One other issue that the Committee report dealt with that we must consider is how to encourage longer term tenancies. Families in particular want greater security. They may not want to be in the private rented sector, but if they are there and have a property they like, they probably want to be there for five years rather than six months. Considering how we can change the culture—that is what it is, as much as anything else—to get landlords and tenants to understand that there are possibilities within the framework of the existing assured shorthold tenancy for a tenancy longer than six months or a year, is a step forward. We must also consider how to get letting agents to recognise that they should be advising on that—letting agents often have a vested interest in regular reviews of tenants and tenancies because they make a profit and receive a fee every time they do it.
We must also deal with the fact that many lenders prevent landlords from having a tenancy of more than a year. Nationwide is now, I think, prepared to accept a three-year tenancy, which is a good step forward, and the Government are trying to bring lenders together to try to make that change happen. I entirely accept the point made by my hon. Friend the Member for Islington North about retaliatory evictions when tenants complain. However, if landlords are to accept a tenancy period of three or even five years, they must have a way of getting the tenant out, rather than waiting until the end of the tenancy period. Shelter has accepted this and the Government have established a working party on it. That is being looked at as a quid pro quo. Shelter accepts that; it is not only landlords associations that have been pressing for it.
Localism Bill
Debate between Clive Betts and Jeremy Corbyn
Mr Betts
May I begin by congratulating my hon. Friend the Member for Plymouth, Moor View (Alison Seabeck) on her effective criticism of the Government’s proposals on security of tenure? Her comments were excellent and I thoroughly support them.
I also give credit to the hon. Member for Brigg and Goole (Andrew Percy), who made some very perceptive comments. The reality is that people will be dragged out of their homes at the end of a flexible tenancy and told, “That is no longer your home.” If people resist, they will be dragged in front of the courts and evicted. That is what is going to happen; there is no getting away from that. He was absolutely right to say that it changes the status of the offer that is made to someone at the beginning of a tenancy from offering them a home that will be theirs for as long as they want it, as long as they abide by the tenancy rules, to offering them a temporary residence. With that temporary residence comes the risk of temporary schooling, temporary communities and all the problems that the hon. Gentleman rightly identified, such as lack of community stability and the possibility of simply creating estates of people on benefits who are moved out as soon as they get off benefits and get a job because their tenancy is then brought to an end. That is not the sort of arrangement that I want to see.
Jeremy Corbyn
I absolutely endorse what my hon. Friend is saying. Is there not a strange contrast here in that Parliament is apparently about to vote to take away permanent tenancies for new council tenants but the Government would not dream of doing the same thing for owner-occupiers or others in our society? Why should we demote council tenants to this level of insecurity?
Mr Betts
My hon. Friend makes a very good point. These measures are changing the status of council tenants, downgrading them almost to second-class citizens. That is what this effectively means, and it is creating a form of welfare housing. There will be people who are so desperate for security that they will over-extend themselves in trying to become owner-occupiers, which could lead to real problems. I say to the Liberal Democrats that they should not hide behind the idea that the measures are all right because existing tenants will not be affected or because local authorities will have to choose whether to go for these forms of tenancies. The reality is that, currently, as long as people abide by the rules, they cannot be evicted from council or housing association properties—they cannot have their tenancy ended by their landlord—but under the Bill that will be possible, and if Liberal Democrats vote for the provisions, they will be allowing that to happen.
Let me say one thing about the homelessness provisions. It might surprise some to hear that I am not, in principle, against local authorities being able to discharge their homelessness responsibilities by making an offer in the private rented sector, but I do want to see clear safeguards. If a house becomes available in my constituency, where some areas have very limited social housing, it is by no means apparent to me that someone who has just become homeless should get that property as opposed to someone who has been in the private rented sector waiting on a housing list for six years. However, if an offer is made, it has to be made with the standards of the private rented property being approved by the local authority, with the landlord or their agent being part of an accredited scheme—probably with regular inspections to make sure that the property is kept to a reasonable standard—and with a minimum tenancy length. I would certainly want those conditions to be included.
Finally, let me address new clause 3, which is in my name. I heard the Minister’s comments but I still feel that a ballot is the best way of ensuring that the views of ALMO tenants are really taken into account and that we do not simply have consultations in which the tenants say one thing and the local authority does another, which are already happening. A ballot is the best way forward, but if the Minister is saying that the same process that was used to set up an ALMO should be used to dismantle it, he must firm up the guidance and make it a statutory obligation for local authorities to comply with that. I see him nodding, and that is very good.
Decent Homes
Debate between Clive Betts and Jeremy Corbyn(13 years, 10 months ago)
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Mr Clive Betts (Sheffield South East) (Lab)
It is a pleasure to serve under your chairmanship for what I think is the first time, Mr Bone. I will address my comments, as the title of the debate suggests, to the report by the Select Committee on Communities and Local Government in the previous Parliament called “Beyond Decent Homes”. The report built on a previous report by the Committee—its proper title at the time was the Select Committee on the Office of the Deputy Prime Minister—back in 2004. That report examined the decent homes programme, which was then in the fairly early stages of development.
Obviously, the report was written at a certain time, but its analysis of what had happened and its conclusions are relevant today. That said, I do accept—it is a pretty obvious fact—that the political and governmental climate has changed since then, and I shall refer at one or two points to circumstances that have changed since then to bring matters up to date.
It will be appropriate to begin by quoting one or two extracts from the conclusion, because it was a Committee report and I want to reflect fairly what the Committee as a whole believed to be important, rather than what I as a member at the time and now Chair believed to be important. The conclusion began by saying:
“By any standards, the Decent Homes programme can be counted as a very significant public policy success. A substantial backlog of repairs and maintenance in social housing existed thirteen years ago and a significant percentage of council rented properties were of unacceptably poor quality: whilst it has yet to be completely eliminated, huge progress has been made, improving the lives of millions of tenants…The main means by which Government can ensure that standards of decency in social housing are maintained in future will be the regulatory framework designed and implemented by the Tenant Services Authority. That framework sets some important national standards but is not over-prescriptive”.
That sets the context of a very successful programme. It has not been fully implemented—it is not absolutely complete—but it has improved the lives of millions of people.
The report went on to make comments about future regulation, which are probably redundant now, in the light of changes that the present Government have made with regard to the Tenant Services Authority. However, the report also said:
“We have recommended another important extension to the existing decent homes criteria: the addition of a specific minimum standard for energy efficiency…Setting standards is of course no good, however, unless the means are available to achieve them.”
I will try to refer to those issues as I go through my speech. Finally, the report said:
“The decent homes programme in the private sector, meanwhile, has been much less effective.”
Again, I will make comments about that.
Let us consider the overall situation. Back in 2001, there was the challenge of a £17 billion backlog of disrepair and neglect in social housing in this country. That is a salient lesson that we must always hold at the forefront of our minds. It is a stark reminder of what can happen if we put off dealing with maintenance projects and maintenance necessities for too long. A backlog of disrepair builds up and must at some point be addressed. The longer we leave it, the worse the problems are and the more money we have to spend on them.
The reality in 2001 was that, of the just over 4 million homes in the social rented sector, nearly half were not up to the decent standard. By 2010, that figure—there are slight variations on it, depending on the calculations that are done—was down to about 10% of the total. It is probably slightly more—perhaps 12%—but it is somewhere in that region. As the Committee’s report identified, there were problems with counting. To some extent, counting was done by individual authorities, and they had slightly different methods. Sometimes the definition of a decent home varied from authority to authority. For example, authorities sometimes counted as decent those properties whose tenants had refused to have the work done. The programme passed them by and the property was then counted as decent because no work was immediately able to be done on it. That was clearly nonsense, and I hope that it was eventually corrected.
Another issue that comes up is that the standard may be fixed, but homes can fall in and out of decency. They can come into decency through improvement works, but fall out of decency over time. The age requirements of the decency standard come into effect as a property gets older, and then work is required that was not required a year before. As the programme is postponed and work is put off further, more houses can fall within its scope.
About £40 billion of public money—about £12 billion from Government and about £28 billion from local authorities’ own resources—has been spent bringing properties up to a decent standard. If we look at the standards, we can see a number of key factors. Incidentally, I still get great delight from going into the homes of tenants, because in the end these are people’s homes. We can talk about thousands of houses and billions of pounds, but to the individual, it is their new bathroom or new kitchen. They have a sense of pride when they open the door and say, “Mr Betts, come and see my new home. Isn’t it wonderful?” We get that sense of pride and a dream fulfilled with many people as a result of the works being carried out.
The standards for kitchens and bathrooms have been widely welcomed and well implemented. The repair standards, too, seem to have been well implemented. In the middle of the programme, there was a change from the old fitness standards to the new housing health and safety rating system. That is a bit more complicated and perhaps a bit more difficult to understand. I think that there are problems for private landlords in understanding it. It is not as simple as the old system. For social landlords, it should not be as difficult, and I do not think that there has been a real problem with implementing it in the social housing sector. It has been pretty well integrated into the decent homes programme.
When the Select Committee examined the standards in 2004, quite a lot of suggestions were made—such suggestions were made again in our more recent report—about what additional things might be included in the decent homes programme. Noise insulation, particularly in flats, was one. That has never been included, although we can see reasons why it might be. There is always a temptation to go on and on trying to add things to programmes. To have a pretty certain standard from the beginning, in 2001, and continue with it was probably the right thing to do.
Jeremy Corbyn (Islington North) (Lab)
Lack of noise insulation is an enormous problem, particularly in London, where there are large numbers of council properties in converted Victorian houses. Often, the conversions were done to a less than acceptable standard, with a total lack of insulation between the properties, and it is very expensive to put in noise insulation at a later stage. Is there any way in which we can ensure that future conversions include a very high standard of noise and energy insulation from the beginning?
Mr Betts
I am sure that there are ways to do that. The Committee concluded that, given that the decent homes programme was running to a certain standard from 2001, it was probably not the right thing to do to try to add things halfway through the process. As the Government said at the time, they were basic standards but there was no reason why authorities should not add to them. Indeed, for kitchens and bathrooms, my city had the Sheffield standard, which went beyond the national standard. Perhaps the other way in which the problem can be tackled—I may be corrected—is through building regulations. Perhaps there could be a legal requirement to deal with the issue, rather than adding something to the decent homes programme at this stage, rather late in the day.
Other issues that we considered were the environment, the appearance of an estate as opposed to an individual home, and communal areas, which have caused difficulties under the programme. By and large, where stock transfers took place, housing associations could raise more private finance and were able to cope with those issues. Where work was done within the authority, through the arm’s length management organisations, often, on the environment, they were limited to 5% additional funding in the programme, so all the environmental works and communal area works that were needed were not necessarily tackled. That perhaps needs to be addressed in the future, although in this case it is very difficult to be prescriptive about national standards.
An issue that we considered in some detail in both reports was energy standards. This is not merely a question of comfort for the individual living in their home. It is a question of a national requirement, a public need requirement, because of the need for the country as a whole to meet the climate change challenges of which we are all acutely aware. I shall say a few words about the issue of energy. From the beginning, there was a feeling that the standards in the decent homes programme were set rather low. All right, they are minimum standards and could be added to, but we really need to move on and address those minimum standards.
The previous Government promised, through the household energy management strategy, to deal with that. They promised that, by 2020, 7 million homes that did not have adequate loft or cavity wall insulation would get it. Effectively, there would be a warm homes standard in the social sector that would almost be a decent homes-plus standard. We understand from the current Government’s response—it would be helpful if the Minister could say a bit more about this—that those various initiatives have now been subsumed in the idea of the green deal. It is not quite clear at this stage what that will mean for social housing and private sector tenants and owner-occupiers in terms of bringing their homes up to a standard where they can feel comfortable in them and can afford to heat them—bearing in mind the current and future increase in energy costs—and for us as a nation in meeting the challenge of climate change.
When the National Housing Federation did an estimate of what it would need to do to get the emissions in its homes down to 20% of their current levels and to meet the challenge of bringing down emissions by 80% by 2050, it said that it would need to spend £25,000 on average on each housing association property in the country. It is a long-term challenge, and we need some indication from the Government that they have a strategy for national standards and for targets to be hit. I know that the Government do not like targets very much, but we have overall climate change targets. Perhaps we should find a way forward by improving our energy efficiency standards.
When the Committee considered that, we felt that energy efficiency standards were the right way to go. Certainly, fuel poverty is a real problem, but once we try to link the issue of fuel poverty with the standards in a building, real complications emerge. For example, we could get properties moving in and out of an appropriate standard depending on the incomes of the people who live in the property, and that is an issue of which we must be aware.
As for the methods of achievement so far in the decent homes programme, stock transfer clearly dealt with a lot of properties. Tenants voted to move to housing associations because the associations could raise the money on the private markets and deliver the decent homes programmes that were required. Many other tenants resisted the idea of their homes moving out of council ownership. The Government at the time refused to give funding directly to councils for the decent homes programme; that was a matter of contention and I personally did not agree with that policy at the time. None the less, many tenants agreed to go with a transfer of management, but not ownership, to an arm’s length management organisation.
Social housing in this country has undergone a revolution. There has been an improvement not only in the management of council housing and the delivery of major programmes, but in the management and delivery performance of housing associations. I know that this is sometimes an uncomfortable point for housing associations to address, but the report, on page 45, sets out clearly that, when an assessment was done of the overall performance of ALMOs, 75% had a good or excellent rating. For housing associations, the figure was around 35%. As for major works contributions and oversight, 70% of ALMOs got a good or excellent rating and just over 50% of housing associations did so. ALMOs did very well indeed and some of the best ALMOs are clearly some of the best performing housing organisations in the country.
Mr Betts
To my mind, it makes no sense at all, and it means asking people to remain in non-decent properties for a long time. My right hon. Friend is absolutely right. In many ways it is the tenants who have been waiting the longest for the work who will now have to wait even longer: people at the back of the queue will find the head of the queue disappearing, and that is very worrying. At the rate of spending currently proposed by the Government, it could be 2020 before the backlog is cleared, remembering, of course, that the backlog will be added to because in the meantime more homes will fall into the non-decent category, through age or increasing disrepair. Unless we get increased public spending, the problem will be compounded rather than improved.
Another issue that we need to consider is the very worrying decline in construction activity in the last quarter of last year—the weather might have had a bit to do with it. Cutting back on the decent homes programme, which is more labour intensive than building new homes is, because pro rata more labour than materials goes into refurbishment than into construction, means even more job losses for every £1 million that is cut from the programme.
Jeremy Corbyn
On the private sector, 30% of my constituents live in private rented accommodation. I cannot give the figure for properties that do not meet decent homes standards, but I suspect that it is a considerable number. I expect that many landlords are loth to do necessary repairs and maintenance, so the condition of the properties rapidly deteriorates. They know that there will be a market out there in the future. Does the Select Committee see any way in which we can bring in better regulation to ensure both fair rents and decent standards in the private sector?
Mr Betts
There are ways, and some of them have been rejected by the Government, but I do not think that the decent homes standard is necessarily one of them because it was not enforceable. That is probably one reason why it did not really succeed. The new fitness standards are an improvement, and are tougher, but the problem is that many authorities do not put the resources into the private sector to ensure that the standards are implemented in a co-ordinated way. There should be a strategy for private housing in every local authority area, but many local authorities do not have one, and co-ordinated enforcement action is rarely taken in many parts of the country.
The Rugg report into the private sector proposed that we should have a register of all private sector landlords, but the Government have said that they are not going to go ahead with that. There were also proposals to have licensing of managing and letting agents, but the Government have said that they are not going to go ahead with that either. The possibility of regulation is, therefore, probably disappearing. The previous Government’s proposal for the household energy management strategy, which was going to cover all sectors, has been taken away and replaced by the green deal.
The Government have said that there will be proposals that reasonable tenant requests for energy efficiency improvements should not be refused, and proposals for minimum benchmarks for energy efficiency in properties, but there were caveats about them being subject to the availability of funding. I do not know how far the Government are prepared to go on that but, along with the repair requirements, it is a starting point for putting some basic energy efficiency requirements into private sector homes, which could be done separately.
By and large, we concluded in our report that it would be difficult simply to take decent homes from the social sector and transfer them to the private sector, but under the new homelessness provisions, landlords will be able to discharge their obligations to homeless families by allocating not social housing but a property in the private rented sector. If homeless families can be allocated such properties by local authorities, are the Government prepared to do something about the standards of those properties? They should not allow any council to put a family in a private rented property unless it meets very high standards indeed. Some form of regulation would be another way we could seek to drive up standards.
I have spoken for a while and taken interventions. As I have explained, the report was generally congratulatory as regards the success of the decent homes programme, but we recognised that this is also about individual tenants. For the many thousands who are satisfied, a substantial number are still waiting for work to be carried out, as my hon. Friends have indicated, and they are now likely to have to wait even longer.
There are challenges, and we need to ensure that standards are maintained—it is a question not just of achieving standards, but of maintaining them. In terms of energy efficiency, it is also about doing something to improve standards. There is still a long way to go in the private sector, because the decent homes programme really has not had a major impact there.
To conclude, the Committee said, “We congratulate the Government”—the last Government, I should add—
“on its achievements so far in the decent homes programme. Notwithstanding the difficulties of the current public sector spending climate and the importance of continuing to make progress towards eliminating the remaining backlog, however, now is the time to build on those achievements, not to sit back on them. The Government needs to look beyond the existing decent homes programme and plan for a future in which social tenants, private tenants and owner-occupiers all have the opportunity of living in a warm, well-maintained and reasonably well-equipped home.”
I think that is a reasonable point on which to finish.