Deregulation Bill
Debate between Lord Ahmad of Wimbledon and Baroness Gardner of Parkes(9 years, 8 months ago)
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Lord Ahmad of Wimbledon
My noble friend makes a totally valid point and I apologise—there should have been some closure with regard to Amendment 47. Perhaps I may suggest that I respond specifically to the issues around Amendment 47 and then we can move on. I understand that the amendment, having been called, will need to be withdrawn. Therefore, if my noble friend Lady Gardner is minded to speak to Amendment 48, perhaps she can, first, withdraw Amendment 47, as that will be a useful way of moving on to the more substantive debate.
Lord Ahmad of Wimbledon
Unless other noble Lords suggest anything else, what I propose may be the most practical way forward. If my noble friend is minded to withdraw her amendment, we can move on to the substantive debate. Because of the confusion, I suggest that that is what she does. If she wishes to speak to Amendment 48, that is her choice, although I think that many of her points have been covered. However, this is a self-governing House and it is for the House to agree to that. I ask her to withdraw Amendment 47 to allow us to move on to the substantive debate, but of course I succumb to the will of the House on that.
Lord Ahmad of Wimbledon
The noble Baroness is always well placed to clear up muddles, as she has done so again. I fully accept that she spoke specifically to the issue of the 30 days.
Amendment 49, which would restrict the deregulation only to those properties which are the principal and permanent residence of the owner, and Amendment 49ZA, which would restrict the deregulation to the principal London residence of their owner, are unnecessary and overbearing. They would unreasonably prevent tenants carrying out short-term letting, which may be permitted within the terms of their lease. It would also prevent people short-term letting who may have another residence outside London, even though the London property would be viewed very much as their home.
Amendments 49A and 49B would remove the ability of the Secretary of State to direct that specified areas should be exempt from the changes. The Government want to be able to grant exemptions but only in exceptional circumstances and where a strong case has been made by the local authority. Otherwise, we want to be clear that our aim is to provide the same rights for all Londoners in all local authority areas.
The amendments would create different regulatory approaches across the capital, potentially resulting in differences between local authority areas. Residents would find that their near neighbours had either greater or lesser freedoms to short-term let their property, without any apparent justification.
Amendment 49C would remove the deregulation measures where a relevant enforcement process had taken place. It would also require the Secretary of State to make regulations for local exemptions where there were strong amenity grounds. I can assure noble Lords that we intend to provide that the new flexibility can be withdrawn following a successful enforcement action and that, in exceptional circumstances, local authorities will be able to request that the Secretary of State agree to small localised exemptions from the new flexibility where there is a strong case to do so.
Amendment 50 is also unnecessary in the Government’s view. It is already the case that anyone carrying out illegal short-term letting risks a planning enforcement fine of up to £20,000. It is already possible for local authorities to apply for costs in the event of unreasonable behaviour during an appeal against enforcement action.
I assure noble Lords that the Government’s intention is only to deregulate Section 25 to allow residents occasionally to let out their property on a short-term basis; for example, when they are away on holiday. We are not seeking to create new opportunities for short-term letting on a permanent basis. Our policy document shows how we intend to achieve this in a way which balances the reasonable aspirations of residents to let out their homes temporarily with safeguards to prevent abuse of our reforms.
For these reasons, it is the Government’s belief that Clause 33 should remain part of the Bill. I fully acknowledge that differing views have been expressed by noble Lords, but I think that it is the shared intention of the Government and your Lordships to allow letting of property for residents but not on a commercial basis. I hope that some reassurance has been provided by what I have said and I urge noble Lords not to press their amendments.
Baroness Gardner of Parkes
My Lords, I thank the Minister for his reply. He said that he doubted that his previous replies were negative or non-existent, but he should just check his Written Answer dated 7 January in response to my Question referring back to his earlier Answer—my original Question was for oral answer. There was simply no reply at all to Written Question HL3615, which was then repeated. I have gone back on it yet again and there is still no answer.
Lord Ahmad of Wimbledon
I will review those Answers with officials and get back to my noble friend specifically on them. If there are other points that she wishes to make, perhaps we could move on.
Property: London Lettings
Debate between Lord Ahmad of Wimbledon and Baroness Gardner of Parkes(9 years, 10 months ago)
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Baroness Gardner of Parkes (Con)
My Lords, I declare my interests as recorded in the register.
The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Lord Ahmad of Wimbledon) (Con)
My Lords, the Government published the discussion document Review of Property Conditions in the Private Rented Sector on 12 February 2014. The document sought views from the general public on whether the relevant provisions of the Greater London Council (General Powers) Act 1973 should be reviewed or updated. The Government are carefully considering the representations we received, and a formal response to the consultation will be published shortly.
Baroness Gardner of Parkes
My Lords, I thank the noble Lord for that Answer, but I do not know why—and so I ask him why—the Government intend to take away London’s powers to have at least some control over this rapid subletting of short-term holiday accommodation. Under the new terrorism regulations, how are the obligations dealt with to ensure that people coming into such blocks of flats are not in any way unsafe for other local residents? Their behaviour when they are in the blocks certainly causes great danger, just on the local level of leaving doors open. Westminster Council has six officers working full-time on this, and they have never yet lost an appeal when they wished to enforce action.
Lord Ahmad of Wimbledon
My Lords, I note my noble friend’s concerns. I also wish to draw noble Lords’ attention to my interests in the register regarding leasehold properties. In response to her question, the Government’s intention is clear. We wish to use the Deregulation Bill to help reform what we believe to be the outdated provisions of Section 25 of the Greater London Council (General Powers) Act 1973. Londoners who want to rent out their homes for less than 90 consecutive days currently have to apply for planning permission. We believe that this does not apply anywhere else in the country, and this brings London in line with other parts of the country. As to her concerns about terrorism and other such acts, of course the provisions and the ability of the police, the local authority and local residents to intervene will still be very much available. We have introduced new safeguards under the Anti-social Behaviour, Crime and Policing Act 2014, which came into force in November last year.
Short-Term Holiday Lets
Debate between Lord Ahmad of Wimbledon and Baroness Gardner of Parkes
The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Lord Ahmad of Wimbledon) (Con)
My Lords, the Government have not issued guidance to local authorities on short-term holiday lets. However, through the Deregulation Bill, we are reforming legislation on short-term letting in London to allow residents to let their property on a short-term temporary basis without applying for planning permission. In order to provide greater certainty before new legislation comes into force, we will issue guidance shortly that will clarify the Government’s view on planning and short-term letting in London.
Baroness Gardner of Parkes (Con)
My Lords, I thank the noble Lord but I do not agree at all with the proposed new clause. My interest in property is on the register and I speak as a flat owner. My concern is the effect of illegal lets in blocks with long-term residents. There are 15 flats and three or more of these are being let through an agency specialising in short lets. People arrive, 10 at a time, to overoccupy a small flat, acting in a way they would not in a hotel, and even destroying the safety and security of the block by leaving the street front door open. What action can the legal residents or the head lessee take to deal with this problem at present?
Lord Ahmad of Wimbledon
My Lords, I first point to my own property interest in leasehold in the House of Lords register. Having done so, I will take up the point of my noble friend. There are specific requirements in terms of the residential leasehold properties themselves and the rights available deriving from the long lease in the first instance and whether the property can be sublet. There are also conditions under any short-term letting agreements. The other factor I draw to my noble friend’s attention is the new powers under the Anti-social Behaviour, Crime and Policing Act 2014, which came into force on 20 October, which provide particular rights under both possession and eviction.
Leaseholders
Debate between Lord Ahmad of Wimbledon and Baroness Gardner of Parkes
Baroness Gardner of Parkes (Con)
My Lords, I beg leave to ask the Question standing in my name on the Order Paper and declare my interest as a leaseholder.
The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Lord Ahmad of Wimbledon) (Con)
My Lords, the schemes themselves are primarily responsible for publicising their service to leaseholders. My department has issued a number of press releases on the government and LEASE websites, and included information about the redress schemes in the recently published How to Rent guide. Additionally, we will be sending information to 30,000 leaseholders via the LEASE mailing list.
Baroness Gardner of Parkes
I thank the Minister for that reply. Can he tell me whether the ombudsman, to whom one will now have the right to apply for redress, will have the powers under that scheme to rule that if the head lessee or freeholder is found to be at fault, they cannot charge the costs back to the very people who made the complaint and were justified in doing so? This has now become a most unfortunate practice.
Lord Ahmad of Wimbledon
My Lords, first, I draw the attention of the House to my entry in the Lords register as a leaseholder and pay tribute to my noble friend’s consistent efforts in ensuring that the subject of leasehold remains on the Government’s agenda. In terms of the ombudsman, the chamber of the First-tier Tribunal stays, will continue to determine a wide range of residential leasehold disputes and will not be affected by the new requirement for managing agents to belong to redress schemes. For example, leaseholders and freeholders will still be able to ask the tribunal to decide whether a service charge demand is reasonable. Where the lease requires the freeholder to recover administration charges, the tribunal will still be able to issue orders to redress this.
Landlord and Tenant Acts
Debate between Lord Ahmad of Wimbledon and Baroness Gardner of Parkes
The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Lord Ahmad of Wimbledon) (Con)
My Lords, information about service charges and insurance is already available to tenants should they wish to exercise their rights to obtain it. The codes of practice approved by the Secretary of State also require that tenants are consulted about service charge budgets for the coming year, and the redress schemes coming into force this year must have regard to the breaches of the code. The Government have no current plans to amend landlord and tenant legislation.
Baroness Gardner of Parkes (Con)
I thank the Minister for that reply. I declare a direct, personal interest in respect of my own insurance for the block of flats that I am in, which has always had an excess charge of £250. When I had cause to make a claim recently, I was told that it had gone up to £2,500, which is a tenfold increase, and I was also told that that had happened three years before, although no one in the block had received any word of it. How many other people does the Minister think might be in similar positions, with important decisions being made without tenants or leaseholders having any idea that this is going on?
Lord Ahmad of Wimbledon
My Lords, first, I draw attention to my leasehold interests in the register. In terms of information being shared with leaseholders, the Government agree that leaseholders should be made aware of any changes to service charge costs and the costs of insurance that they are required to contribute to. Moreover, they should be consulted about qualifying works and long-term agreements that exist.
My noble friend points to the issue of transparency, which of course is key. The statutory consultation requirements in Section 20 require that landlords disclose any connections when entering into long-term agreements over 12 months.
Finally, it is important for all leaseholders to make sure that their existing rights are protected. They can get free initial advice from the Leasehold Advisory Service.
Stephen Ward
Debate between Lord Ahmad of Wimbledon and Baroness Gardner of Parkes(10 years, 9 months ago)
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Lord Ahmad of Wimbledon
Unfortunately, I cannot. As I said, it is not available publicly. People may speculate but I think that I have been clear.
Baroness Gardner of Parkes (Con)
My Lords, is the Minister aware that we have original copies of the Times here, going back to the 18th century? I looked them up for the founding of Sydney University, and they are all available. Perhaps the Minister can suggest that the noble Lord, Lord Dubs, looks at those copies of the Times to which my noble friend has just referred?
Lord Ahmad of Wimbledon
I am sure that the noble Lord has heard that advice. I am also advised that my noble friend Lord Lloyd-Webber has a musical, as noble Lords will know, which has also been recommended as being well worth going to see.
Housing: Leasehold Valuation Tribunal System
Debate between Lord Ahmad of Wimbledon and Baroness Gardner of Parkes
Baroness Gardner of Parkes (Con)
My Lords, I beg leave to ask the Question standing in my name on the Order Paper. In doing so, I declare my interest as listed in the register.
Lord Ahmad of Wimbledon (Con)
My Lords, in October 2013, a revised fee remissions scheme was introduced across the courts and tribunals system. The impact of the revised remissions scheme will be reviewed after October this year.
Baroness Gardner of Parkes
I thank the Minister for that. Can he confirm that people will not be charged management costs unless their lease specifies that they must be and that they will not be obliged to pay—win or lose—the head lessee’s or freeholder’s slice of the action?
Lord Ahmad of Wimbledon
My noble friend comes to this issue with great experience and has been a long-standing campaigner in this regard. She raises the issue of administration charges on leases. Some leases contain covenants for the recovery of legal costs, which is a slightly different issue from the recovery of costs as service charges. I understand there have been calls for the Government to consider the feasibility of creating a provision to prevent the recovery of administration charges, similar to the protection over service charges already provided under Section 20C of the Landlord and Tenant Act 1985. We understand the concern that this topic provokes but, as I am sure my noble friend will agree, we need to look at this very carefully and consult quite widely before deciding on any action that can be taken in this regard.
Lord Ahmad of Wimbledon
My Lords, as the noble Lord will know, the Government have already taken forward the issue of legal costs in relation to service charges. I have already alluded to the Section 20C order, as provided for in the Landlord and Tenant Act 1985, which allows a leaseholder to seek for those service charges—if the landlord is claiming that—to be voided. He also raised the point about the £500 fee. Normally in tribunal cases, we have found that parties pay their own costs, and it is rare for costs to be awarded in the property chamber itself. Only where the tribunal considers that a party has behaved unreasonably could it make a costs order against them.
Baroness Gardner of Parkes
My Lords, I remember debating the Bill very carefully here in 1996, because it was stated that the total costs would be recovered from the applicants, down to,
“the milk for the office cat”.—[Official Report, 10/7/96; col. 348.]
These charges, under the previous system, were limited to a maximum of £500 and the only abuse was when the other side charged it back to all the leaseholders in the block, even if only one had brought the case. Now, it is a different matter. You have to put up the £500 even to take your case to the tribunal and you have to pay further costs all the way. Can we at least be assured that if, as the noble Lord says, it is not possible to limit it in some cases, the costs will not be charged to all the tenants, as is now the case, instead of just to the one person who brought the case? Will the court, or the First-tier Tribunal as it is now called, have the power to determine where these costs are actually justified?
Lord Ahmad of Wimbledon
Bearing in mind the series of questions that my noble friend has asked, perhaps writing to her in this regard would be more appropriate and beneficial.
Probation Services: Outsourcing
Debate between Lord Ahmad of Wimbledon and Baroness Gardner of Parkes
Lord Ahmad of Wimbledon
The noble Baroness raises an important point. We need to ensure that when there are breaches of sentences, they are looked at effectively and in a structured way if recalls are issued. I have already alluded to two facts: circa 16,000 recalls are issued annually and, once they are assessed, the prison population currently represent only 5,000 of that figure. I believe that we have robust procedures in place to ensure that any recalls issued are reviewed and that the people who then are sent back to prison are sent back because they have reoffended. I am sure that all noble Lords will agree about the reoffending rates we see across the country. I was startled, in my own experience in local government, to see the level of youth offending, which was in excess of 70%. If you bear in mind that close to 50% of people go on to reoffend, we really need to take some drastic action to address this issue.
Baroness Gardner of Parkes
Is the Minister aware of the very low reoffending rate in cases such as the scheme operated by National Grid, where young offenders are trained to become very useful people? Does he know whether that scheme, or any similar schemes, operate with people who are on licence or is it only when people are completely finished?
Lord Ahmad of Wimbledon
Again, my noble friend raises a very important issue. I am aware of the scheme with National Grid, which addresses prisons and reoffending. To put this into context, when I visited Peterborough, I saw something very effective for prisoners coming in. If prisoners have committed the crime they have to serve that time, but it is not about leaving them at the prison gate. It is about identifying what skills and needs they have and then, by the time they leave prison, ensuring that they become productive, constructive members of society. That is what Transforming Rehabilitation is all about.
Housing: Social Housing
Debate between Lord Ahmad of Wimbledon and Baroness Gardner of Parkes(11 years, 8 months ago)
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Lord Ahmad of Wimbledon
First, perhaps I may correct something that is misunderstood. The bedroom tax is not a tax; it is a benefit. My right honourable friend the Prime Minister made that clear, and it needs to be reiterated. On the point about decent homes and Tower Hamlets specifically, I will share the figures with the House. The decent home benefits grant in 2011-12 was £12.5 million; in 2014-15 it is projected to be £45 million. That, to me, is an increase in any terms.
Baroness Gardner of Parkes
My Lords, will the Minister tell me whether he is aware of the fact that there is quite a supply of housing in London, and that it is simply unusable because people have bought their flats in social high rise housing and now wish to move for various reasons, but no one will give a mortgage on those properties? They are completely locked into them because they are high rise and have a stigma attached to them because they were social housing. Doing something about that would release housing that people could obtain mortgages on, and they could feel confident that in due course they could move on.
Lord Ahmad of Wimbledon
My noble friend is correct; London has a disproportionate amount of non-decent homes, primarily due to the high numbers of homes of non-standard construction that she has highlighted. It is important for the Government to work with the private sector to decide how these homes can best be released for greater housing requirements in London. That said, we are providing a greater number of funds available to London, and, of course, are working closely with the Mayor of London’s office to ensure that we meet the decent homes standard in London.
Allotments
Debate between Lord Ahmad of Wimbledon and Baroness Gardner of Parkes
Lord Ahmad of Wimbledon
My noble friend is correct. A number of councils, including Bristol, Brighton and Kent County Council, have developed some very innovative schemes. As I have already said in my previous answer, we are here to encourage local councils. After all, the Localism Act encourages local councils and communities to take action and take charge. I quote my right honourable friend the Secretary of State in the other place, who said that people should “spot a plot”, grab it and then go to their local authority and cultivate it.
Baroness Gardner of Parkes
That last reply leads on to my question. If you happen to have a few acres that you are doing nothing with, what permissions do you have to get to set up private enterprise allotments? Do you have to have planning permission? Do you have to be willing to supply water or electricity? We have just heard about the problems of light. What exactly would you have to do, or how would your land have to be zoned, to offer it as allotments?
Lord Ahmad of Wimbledon
I thank my noble friend for her question. I point your Lordships’ House to the Localism Act and the provisions provided within, such as the new neighbourhood planning provisions that provide communities with the powers not just to protect but to identify new plots for allotments. The Community Right to Challenge, which commenced earlier this year in June, meant that voluntary and community bodies which had good ideas and felt they could run the services or allotments better could get more involved. Finally, there are the community right-to-bid provisions in the Act, which commenced in England on 21 September and which allows community groups to get a fairer chance to buy up assets, and facilities are important to them. Allotments are an important element of the Government’s thinking within local government but, as I said, local authorities provide the provisions and this Government take their job very seriously. The Localism Act activates local councils, but most importantly—dare I say it?—it activates the big society to act locally.