Oral Answers to Questions

Lord Hanson of Flint Excerpts

Monday 5th November 2018 Commons Chamber

[Mr Speaker]

I hope that the hon. Gentleman will have the tribute framed. It would be very disappointing if he did not.

[David Hanson (Delyn) (Lab)]

What assessment has the Minister made of the number of people who have used Help to Buy who are now in negative equity because of leasehold reform? They cannot sell the properties and the price has fallen, so the taxpayer and the individual are hit.

[Kit Malthouse]

At this stage, there is no indication from the early returns on Help to Buy that the situation that the right hon. Gentleman raises is occurring. Indeed, early numbers show a higher level of successful redemption than we expected and we hope that that will continue.

Oral Answers to Questions

Lord Hanson of Flint Excerpts

Monday 18th June 2018 Commons Chamber

[Jake Berry]

We are seeing peace and harmony across the House on Yorkshire.

I have been having discussions with the Secretary of State on Yorkshire devolution and with the recently elected Mayor of South Yorkshire. The Government have been absolutely clear that, before “One Yorkshire” can proceed, the South Yorkshire devolution deal must be fully implemented. It is up to the Labour party councils in South Yorkshire to get on with that. Nearly £1 billion in Government funding could flow to South Yorkshire. Why do they not seem to want it?

[David Hanson (Delyn) (Lab)]

While the Minister is on his feet, could he tell me when he expects a spade to be in the ground for the North Wales growth deal—any project, any spade, anywhere?

[Jake Berry]

As the right hon. Gentleman is aware—because he, like me, attended a meeting at the Wales Office just before Christmas—the North Wales growth deal is proceeding well, but it can only go as fast as the slowest actors, so I say to him that he has power and influence over the North Wales local authorities. This Government have been clear: we would like to see concrete proposals come forward for the autumn Budget, but we cannot do this without the support of the North Wales authorities.

Oral Answers to Questions

Lord Hanson of Flint Excerpts

Monday 30th April 2018 Commons Chamber

[James Brokenshire]

I am grateful to my right hon. Friend for raising this significant and important issue. I pay tribute to the Community Security Trust for its work in providing safety and security in this area. I will certainly engage further not just with my right hon. Friend but with local government to ensure that we continue to make progress.

[David Hanson (Delyn) (Lab)]

May I ask the Northern Powerhouse Minister when he expects to make a further announcement about the northern powerhouse commitment in relation to the growth deal in north Wales?

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Jake Berry)]

The north Wales growth deal is primarily the responsibility of the Secretary of State for Wales. I am happy to update the right hon. Gentleman by saying that we are making good progress in looking at the proposals from local authorities. Once we have completed that work, we will make an announcement shortly about the next steps for all local authorities involved.

Houses in Multiple Occupation: Combined Planning Applications

Lord Hanson of Flint Excerpts

Wednesday 21st March 2018 Westminster Hall

[Stephen Pound]

I seem to have struck a nerve. This issue is not unique to Perivale. Perivale may be unique, but in this matter it is not, quite clearly. The point is that at the moment local residents are profoundly disturbed because they see the character of their area changing and there is nothing that the planning officers can do. Last Sunday week, Councillor Tariq Mahmood, a local councillor, and I met the residents in the street, in Wyresdale Crescent, and to my horror I discovered that three local residents—families I have known for years—were selling up and moving out because they could not stand the character of their street changing from a quiet residential backwater into a row of houses in multiple occupation, and of course that then accelerates the process. Those three sell up, and before we know where we are we have a constant row of them.

I am not implying for a moment that the people who live in HMOs have riotous parties all night. This is about the number of people. There are issues of parking and refuse collection, as well as the drain and demand on local services. When Councillor Mahmood and I and the other two Perivale ward councillors, Councillors Charan Sharma and Munir Ahmed, went to see the chief planning officer at Ealing, David Scourfield, he said in effect, “My hands are tied; there is very little I can do,” and he referred to an article 4 direction, which I will come on to in a moment. Despite the fact that it is a total and utter waste of time and a complete irrelevance, it happens to be statute law and therefore I shall refer to it.

In the situation that I have described, what recourse is left for local residents? One of the residents has done an enormous amount of investigation and discovered that five of the properties, each one registered with a different company, are in fact all related to the same company. They all come back to the same addresses, in two cases outside the United Kingdom, and even outside the continent of Europe. Why could it not be a legal requirement for people to say that when making these multiple applications? If one company—David Hanson plc of north Wales, for example—decided to build 50 HMOs in Perivale, it would have to declare it. You would also have to declare it to the House authorities, Mr Hanson, but that is neither here nor there. However, at the moment companies do not have to declare that, because each application is considered individually.

The draft London plan, to which I referred earlier, does recognise the importance. It says in “(H12) 4.12.7”:

“Houses in multiple occupation (HMOs) are an important part of London’s housing offer, reducing pressure on other elements of the housing stock. Their quality can, however, give rise to concern.”

Here is the issue: quality. Quality is not an issue, because building enforcement can apply in these cases, but more importantly, the fire brigade has to certify. Therefore, there is the certification process and the licensing process, but that does not solve the problem. Why does it not solve the problem? It is partly because planning permission is not required in order to be a licensed HMO. Even worse, in London there is actually a numerical limit on the number of HMO licences that a local authority can give—I cannot speak for Reading, Stoke or Northampton. That means that once that ceiling is reached, the pressure of withholding a licence cannot be used by a council to make a difference. That seems to be an anomalous situation. I can understand why and how it has come about, but it is not helping the people of Perivale, and I do not think it is helping the people of Stoke, Northampton or Reading either.

The article 4 directions are what are normally flagged up. They are normally considered to be

“backstop powers to require developers to apply for planning permission for HMO conversions”.

Councils may use them

“in cases where they have concerns about the impact of a concentration of HMOs on local objectives in an area.”

Marvellous! That is music to my ears—absolutely delightful. This is where the council has backstop powers where there is a concern about the impact of a concentration of HMOs. Sadly, all is not well. It might appear good, but this is the curate’s egg. There might be a good bit, but most of it is completely rotten.

The plan continues:

“A council has to give 12 months’ notice before it can use an Article 4 Direction”—

meaning that the powers have no use whatsoever

“for reacting swiftly or efficiently”.

It goes on:

“If a council cannot wait 12 months to use an Article 4 Direction because it would risk the best interests of their residents…they must pay compensation costs.”

I need hardly say that local authorities are under unprecedented financial pressure and simply to take the risk of having to pay in these particular cases would be untenable.

Equally:

“If a council uses an Article 4 direction, it will not necessarily prohibit the development or change of use.”

What use is it? That is ridiculous. It is as much use as a chocolate teapot. I see no more purpose in it whatsoever. It simply means that local people may have an opportunity to make representations and the elected representatives can decide on the development’s merits, but after the horse has bolted.

Article 4 directions must be reduced to get rid of the 12-month notice period and the compensation provisions. These are handcuffs. These are a ball and chain on local councils. It is impossible for a serious, sensible and concerned local council to actually act in the ambit of the article 4 direction, if 12 months’ notice must be given, plus the concentration provision. It simply makes no sense whatsoever. I believe that the Local Government Association has made representations to the Minister and her Secretary of State on this matter.

Planning law has to balance the two priorities. In the case of HMOs, I think we tended to look at it through the prism of student accommodation, or accommodation in some rundown, old areas, where it seemed to be a regeneration and gentrifying tool—in some cases it was; in some cases it was not. In the case of Perivale, it seems to me that someone has constructed a financial algorithm that says, “Because house prices here are lower than in the rest of west London, for the moment, where you can buy a three-bedroom suburban house for under £700,000”—that might raise eyebrows in Stoke but, believe me, it is pretty good value for money in west London—“if that is split into six units, you will get about £1,000 a month in rent.” Do the maths, as they say. It will work out as a very profitable arrangement. One of the people behind these companies is based in Brooklyn, New York, which is not normally closely linked with the London borough of Ealing, let alone Perivale. That suggests to me that this is a straightforward financial consideration that someone has made.

I am in no way opposed to people making a few honest bob. Good luck to them. I am quite new Labour about this. I think that people should be able to make money, but not at the expense of suffering constituents and residents, who wake up in the morning to find that what was their home—their parent’s home, in many cases—their neighbourhood and their area have changed utterly beyond recognition. What about the people moving in there? The young professionals or students moving into an HMO in Perivale are not going to be welcomed, wanted, liked or loved; it is going to be damn difficult for them.

What worries me most of all, however, is the fact that people look to their local authority, just as they look to us as Members of Parliament, to protect and defend their rights and interests. We must do that. The law should work for people, not against them. In this case, by tightening up an article 4 direction and maybe having a look at some of the other regulations within the use classes order, we can solve this problem. Now is the right time to solve this problem, because the national planning policy framework is subject to consultation at the moment.

I want my hon. Friend the Member for Reading East (Matt Rodda) to make a brief speech. Mr Hanson. I hope that I have not been overly emotional, but I cannot stress too strongly the impact of this sort of development on quiet, decent, ordinary suburban people, who have not asked for this, do not want it and cannot endure it much longer. I look to the Government to come to their rescue.

[David Hanson (in the Chair)]

I will call Mr Rodda to speak, but we must remember that the debate finishes at 4.30 pm and the Minister has to respond.

Oral Answers to Questions

Lord Hanson of Flint Excerpts

Monday 12th March 2018 Commons Chamber

[Sajid Javid]

The hon. Lady rightly emphasises the point about learning from each other. Where Scotland has had success on homelessness and rough sleeping, we shall certainly look into that, and we will seek other examples in the UK. My hon. Friend the Housing Minister is visiting Scotland later this week and will be looking at that particular issue.

[David Hanson (Delyn) (Lab)]

3. What recent discussions he has had with Cabinet colleagues on support for homeowners in meeting mortgage costs.

[The Secretary of State for Housing, Communities and Local Government (Sajid Javid)]

One of the best ways in which the Government can support homeowners with their mortgage costs is by ensuring that the economy remains strong and competitive so that employment is high and interest rates are as low as possible.

[David Hanson]

At the end of this month, the Government are taking away mortgage support from 110,000 people, and only 7,000 so far have applied for the loan that replaces that scheme. What do the Government think that the other 103,000 people are going to do on 2 April?

[Sajid Javid]

I think that the right hon. Gentleman is referring to the support for mortgage interest policy, on which the DWP leads. The Government are right to strike the right balance between the needs of hard-pressed homeowners and the taxpayer. If he is really interested in helping homeowners, perhaps he can explain to his constituents why he voted against the stamp duty cut that this Government implemented.

Oral Answers to Questions

Lord Hanson of Flint Excerpts

Monday 22nd January 2018 Commons Chamber

[Jake Berry]

I had the pleasure and privilege of visiting my hon. Friend’s constituency last year, and I saw those world-class skills in action, particularly in the nuclear supply chain. I am delighted that, through our industrial strategy and the northern powerhouse, we are supporting people throughout the country, so that they can grow the economy, wherever they may reside.

[David Hanson (Delyn) (Lab)]

The Minister is leading on this issue, so he will know that the northern powerhouse growth deal, which will affect north Wales and its coastal communities, is about connectivity with Liverpool and Manchester and the improvement of infrastructure. Will he give an indication of when he will reach some conclusions on the budget for that growth deal?