Housing and Planning Bill
Debate between Earl of Listowel and Lord Kerslake
Lord Kerslake (CB)
My Lords, I shall speak to Amendments 8 and 9 and in doing so declare my interests as president of the Local Government Association and chair of Peabody.
The amendments form part of a series of amendments intended to make the Bill fairer, more localist and more workable, while respecting the manifesto commitments made by the Conservative Party during the general election last May. The specific purpose of Amendment 8 and the consequential Amendment 9—I would argue that it is consequential—is to place the responsibility for determining the proportion of starter homes in any particular development where it should properly lie: with the local planning authority.
We discussed at length during the Committee stage of this Bill, and indeed today, how starter homes as an initiative has moved from being an interesting and positive new way to provide additional supply of new housing to effectively replacing affordable rented housing in new developments, despite the fact that starter homes will serve a very different group of people, being available only to those on middle or higher incomes in those areas where housing is in high demand. Shelter has calculated, for example, that 98% of families who are on the Chancellor’s national living wage would not be able to afford a starter home.
In Committee, we also learned that there is not one housing market in this country but many, each with their own different needs and issues. It is for this very reason that we require each local authority to consider carefully its local housing needs and draw up a local plan to meet them. The Bill, however, gives the Secretary of State the power to prevent the approval of individual planning applications unless they have met the specified requirement for starter homes. It is hard to think of a more overbearing and centralising action that the Government could have taken on something that should so clearly be a matter for local decision. So far as I am aware, it is also completely without precedent. I cannot establish any previous Government who have sought to specify the types and tenures of housing in individual planning applications in this way.
On 23 March, just prior to the Easter Recess, the department issued a technical consultation document on starter homes. It proposed a single starter homes percentage of 20%, with exceptions only for very small sites and where the viability of the scheme was in question. The Government’s consultation document does not give an estimate of how many affordable rented houses this would displace but both the Local Government Association and Shelter believe this to be significant. Indeed, the department’s own numbers estimate that, in cash terms, 91% of affordable housing contributions on an average site will be redirected to starter homes.
I have no doubt that a figure of 20% starter homes will be right for some parts of the country, but I am equally clear that for many others it will not. There is a risk that further delays will be added to the planning process as local authorities struggle in individual applications to reconcile this top-down requirement with what they know is right for their own area. Amendment 8 leaves the choice with individual local authorities but makes clear that the local authority must have regard to the provision of starter homes when it comes to make its decision. This, taken with the general duty to promote starter homes that is already in Clause 3(1), will provide more than sufficient onus on local authorities to take forward the Government’s intentions. There is enough leverage already in the Bill. We must surely be able to trust local authorities to make the right decisions based on their own local needs and circumstances.
In other parts of the debate in Committee—for example, on the appropriate size of new housing—Ministers were clear in their view that local authorities are best placed to understand and decide what is required locally. This must surely be the case for type and tenure; otherwise, we are effectively in this Bill going for “pick and mix” localism.
Today the four leaders of the Conservative, Labour, Liberal Democrat and independent groups of the Local Government Association took the unusual step of writing a joint letter to the Guardian about the Bill. In it they say the following:
“Current proposals for starter homes carry a risk that a crucial supply of new affordable rented homes will be displaced, and despite 20% discounts they will still be out of reach for the majority of people in need of an affordable home. Councils support measures to boost home ownership, and starter homes are one of the ways this can be achieved, but we are also urging peers to back amendments allowing councils to decide how many starter homes, alongside affordable rented homes, are on each development to ensure they meet the needs identified by councils with their communities”.
The letter ends:
“New homes are badly needed and councils are keen to build them. The Local Government Association believes we will only see a genuine end to our housing crisis if we are able to get on with the job”.
Quite so.
I hope, even at this late stage, that the Government will see fit to accept this amendment.
The Earl of Listowel (CB)
My Lords, I declare my interests in the register as a landowner, a vice-president of the Local Government Association and a trustee of several child welfare charities, including the Brent Centre for Young People in north London, which provides mental health support for adolescents. I shall make clear why that is a relevant declaration later.
I rise to speak to my Amendment 7A and to support the other amendments in the group. I was grateful for the Minister’s response to this same amendment in Committee and for the opportunity to discuss its concerns with her and the Minister in the other place this morning. I have retabled the amendment because I would like further reassurance from the Minister that the Bill will not direct resources away from more secure accommodation for low-income families, a concern that the noble Baroness, Lady Bakewell, and others have raised in relation to this grouping and elsewhere. My amendment would place a duty on local authorities to provide an adequate supply of affordable homes for families in temporary accommodation. For many years, low-income families have become increasingly dependent on private housing. Tenure there tends to be more insecure than the alternatives and we have seen the rate of family homelessness rising again as a consequence.
Recently I spoke to two early-years teachers and the head teacher of a primary school in west London. Those early-years professionals were acting as family support workers and described a sea change in local housing provision as homes have become more and more overcrowded and families are more and more transient. They work hard to build relationships with troubled families, but often those families move on within a few months. All their work comes to naught because of instability of tenure. We are learning more and more about the importance of a secure start for children in stable families where the parents make a strong attachment to their children even before birth, but especially in the early years. Such children are much more likely to grow up without the mental health issues that arise particularly in adolescence. So I would be grateful if the Minister could provide a further assurance that the Government are giving priority to working with local authorities—my noble friend Lord Kerslake talked about the importance of working in partnership with them—and others to provide low-income families with the secure housing they so urgently need. I look forward to her response.
Welfare Reform and Work Bill
Debate between Earl of Listowel and Lord Kerslake(8 years, 10 months ago)
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The Earl of Listowel (CB)
My Lords, having six weeks ago spoken to a mother who had just moved into a refuge with her daughter and granddaughter, and heard from her about the years of abuse she had experienced in her family home, I am very grateful to my noble friends, noble Lords and the Minister for the announcement that he has made today.
Lord Kerslake (CB)
My Lords, I declare my interest as chair of Peabody and president of the Local Government Association. I support Amendment 50 and wish to speak specifically to Amendments 53, 61 and 63. I will keep my comments brief as I am conscious of the hour.
I add my welcome to the movement and the moratorium referred to by other noble Lords. This is a demonstration of the Government listening and acting, which I welcome. I reinforce the importance of taking early decisions and not using the whole year for the review process, not just because of the uncertainty for existing schemes but for investment in new schemes that are so desperately needed.
Amendment 53 follows on from the debate we had in Committee, when we debated the very abrupt move from the 10-year plan of CPI plus 1% for rent increases to a four-year period when there would be a 1% reduction per annum. We had a considerable debate on what the impact of that change of policy would be. In tabling an amendment in Committee, I was ever hopeful that after the four-year period the Government might return to the original 10-year plan. However, the noble Baroness, Lady Williams, made it clear that that was not the Government’s intention and that they would take a decision on future rent movements in four years’ time. Given the difference of view on this issue, with the Institute for Fiscal Studies clearly saying that there will be a loss of housing association new build as a result of this policy and the Government’s view that the figure will be absorbed through efficiencies and reductions in surpluses, it seems to me imperative that an evaluation is undertaken before policy is set in four years’ time. I emphasise that it should be an evaluation, not simply monitoring the existing policies, and that that evaluation should be independently commissioned.
There is plenty of precedent in government for doing this—for example, with the new homes bonus, where such an independent evaluation was produced and published, and, indeed, influenced government policy on the bonus going forward. It is good practice for government when they introduce such a significant change to not just monitor the impact of that change but to evaluate its impact in the widest sense. That is why I think this amendment is so important. I would like to hear from the Minister what the Government’s view of this is but also how they expect to assess this impact.
Amendments 61 and 63 come together because they relate to social rents and affordable rent. I take very seriously the debate we had yesterday on the Housing and Planning Bill, and particularly the Minister’s view that we should do everything possible to maximise new housebuilding in this country. I endorse that view, whatever that new housing happens to be. This issue is specifically about new build schemes and the flexibility there has hitherto been for setting rents at the commencement of those schemes. This relates not to the viability of the housing association but to the individual schemes. It is why I have tabled the amendments which perhaps require a bit of elaboration.
When a housing association considers its investment programme in new supply, it looks at two things. First, it looks at its wider viability as a housing association and the risks attached to the scale of the programme it is undertaking. The second thing is to look at the viability of the individual scheme before it commits to it. In some cases the scheme will be highly viable and profitable and would go ahead regardless of this rent reduction. In other cases there will be schemes that were not viable before and with the rent reduction would most certainly not be viable now.
However, there is a small but important group of schemes which are on the margin of viability, with risks that are evenly balanced. Having the flexibility to start the rent at a slightly different point at the time the scheme starts will crucially influence whether those schemes go ahead and whether they do so now. This is the particular issue that I am focused on. It will not be a big cost but the numbers could be important. Given the crisis that we face on housing, “every little helps”. I hope that Ministers will hear this point and retain that flexibility. The small cost that is involved will be far outweighed by the confidence it gives to housing associations to go ahead with their schemes. I urge the Government to consider this carefully.
Welfare Reform and Work Bill
Debate between Earl of Listowel and Lord Kerslake(8 years, 11 months ago)
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The Earl of Listowel
My Lords, I am concerned that the Government’s proposal may reduce the supply of housing or cause what housing is available to be of poorer quality. I go back to my earlier concerns about the poorest families. In her response, will the Minister give an assurance that this will not have the effect that I am concerned about, will not make more families homeless and will not lead to poor families living in poorer conditions and less well-maintained homes? I look forward to her response.
Lord Kerslake
My Lords, I shall speak to my Amendments 110A and 110B. I am conscious that we are reaching the end of a long process, so I shall keep my remarks short. These amendments go to a specific issue that needs addressing. They focus on giving flexibility and excepting social rent reductions for two types of new supplier: affordable rent suppliers and social tenancies. That does not address the whole of the issue that I spoke about earlier because the social housing model involves cross-subsidy. When housing associations look at new supply, they look at two things: their investment plan’s overall viability and the viability of individual schemes. For schemes that are less profitable and more marginal, rent is crucial.
There is shared recognition in this House about the need for new supply of all types, including social housing. By giving flexibility by excepting new supply from the rent reduction policy and giving flexibility in the starting rates for these properties, it is very likely that some schemes that would have been put on the back-burner because of viability will go ahead. These amendments will cost very little because new supply is less than 2% of existing stock and therefore the cost in terms of benefits is very small, and the gain, in terms of new supply at the margin, will be considerable. These are two small amendments that will address the issue of new supply, give flexibility at local level to make decisions on rents and tip schemes that would otherwise not have been viable into viability and enable them to be built.