Housing (Built Environment Committee Report)

Lord Best Excerpts

Tuesday 8th November 2022 Lords Chamber

[Lord Best (CB)]

My Lords, I am speaking in the gap, with my apologies for failing to get my name down for this excellent debate last Friday. As a proud member of the committee—and with sincere thanks to our wonderful chair, the noble Baroness, Lady Neville- Rolfe, and our brilliant team, led by Dee Goddard—I will cut to the chase and pull out just one key ingredient from this valuable report: namely, meeting the demand and need for housing for older people.

The need for new homes that reflect the UK’s demographic shift is a prominent theme of our report, with one in four people being over 65 in the near future. Retirement accommodation addresses health and well-being, combats loneliness, reduces fuel poverty and prevents the need for and crippling cost of residential care. An older person right-sizing will so often achieve “two for one” by also bringing an underoccupied family home on to the market. Catering for those requiring more accessible, manageable and energy-efficient accommodation also benefits the overstretched NHS and local care services. Some 16,000 older people in hospital on any given day cannot be discharged because their home simply cannot take them back. While they continue to occupy a hospital bed, others keep waiting.

In a report published last week, Professor Mayhew of the ILC argues for a programme of 50,000 new homes for older people each year—one-sixth of the Government’s overall homes target—but the committee’s report notes that little progress is being made. The current pipeline is for less than 8,000 homes. The volume housebuilders are not interested. Stimulus from planning requirements, and stamp duty incentives—as for first time buyers—are needed. All those involved in this field welcomed the announcement in May 2021 of a governmental older people’s housing task force, with confirmation last February but with little news since then. Can the Minister update us on progress with this key initiative, involving the Ministers for both housing and care?

Housing: Manifesto Commitment

Lord Best Excerpts

Wednesday 26th October 2022 Lords Chamber

[Baroness Scott of Bybrook (Con)]

Yes, my Lords, from 2025, the future homes standard will ensure that new homes produce at least 75% fewer CO₂ emissions than those built to the 2013 standard. These homes will be future-proofed with low-carbon heating and high energy efficiency. In December 2021, the Government introduced an uplift in energy efficiency standards which delivers a meaningful reduction in carbon emissions and acts as a stepping stone to the future homes standard. New homes will be expected to deliver around 30% fewer CO₂ emissions.

[Lord Best (CB)]

My Lords, I am sure the Minister will agree that housebuilding is in for a very rocky time in the months ahead, with interest rates rising, building and material costs going up, fewer people able to buy, and housebuilders sitting on their hands. Therefore, is this the moment to invest rather more in social housing, which can compensate those losses, and get some affordable homes built?

[Baroness Scott of Bybrook (Con)]

My Lords, we have announced £10 billion of investment in housing supplies since the start of this Parliament, with our housing supply interventions due ultimately to unlock over 1 million homes over the 2020-21 spending review period. This includes an additional £1.8 billion investment announced in the 2020-21 spending review. Of course we want to invest in affordable homes, so we are also investing £11.5 billion in 2021 to 2026 on the affordable homes programme, which we hope will deliver 180,000 more affordable homes.

Social Housing (Regulation) Bill [HL]

Lord Best Excerpts

Report stage
Tuesday 18th October 2022 Lords Chamber

Moved by

[Lord Best]

17: After Clause 22, insert the following new Clause—
“Inspections(1) The Housing and Regeneration Act 2008 is amended as follows. (2) For sections 201 (inspections) and 202 (inspections: supplemental) substitute—“201 Inspections(1) It is the duty of the regulator to carry out inspections, at such intervals as may be prescribed, of—(a) every registered provider’s performance of its functions in relation to the provision of social housing, and(b) the financial or other affairs of every registered provider.(2) Following each such inspection under subsection (1), the regulator must—(a) assess the performance of the providers, and(b) publish a report of its assessment.(3) Regulations may provide that this section does not apply to specified providers or categories of providers in prescribed circumstances.(4) The assessment of a registered provider’s performance is to be by reference to such indicators of quality as the Secretary of State may devise or approve.(5) The Secretary of State may direct the regulator to devise indicators for the purposes of subsection (4) and submit them to the Secretary of State for approval.(6) The regulator must prepare a statement describing the method that it proposes to use in assessing and evaluating the performance of a registered provider under this section, and submit the statement to the Secretary of State for approval.(7) Regulations must provide that in conducting an inspection of a registered provider under this section, the regulator must have regard to any views expressed to him or her by certain persons or classes of person which must include tenants of the provider.202 Special inspections and investigations(1) The regulator may at any time, where he or she considers it appropriate, conduct a special review or investigation, and must do so if the Secretary of State so requests.(2) A special inspection or investigation is an inspection (other than a periodic inspection) of or an investigation into—(a) the exercise of its functions by a registered provider;(b) the financial or other affairs of a registered provider;(c) the standard of accommodation provided by a registered provider;(d) other matters relating to the governance or performance of a registered provider.””

[Lord Best (CB)]

My Lords, Amendment 17 is in my name and those of the noble Baronesses, Lady Hayman of Ullock and Lady Thornhill, whose support is much appreciated.

This amendment, first tabled in Committee, would oblige the Regulator of Social Housing to carry out regular inspections into the affairs of all social landlords. The objective of such inspections would be to ensure that the new regime introduced by the Bill, with its emphasis on consumer protection for residents—the missing element in the current regulatory regime—was actually achieved. By visiting social landlords and talking with residents, inspections would enable the regulator to see whether its set of standards was being properly met and to take action if not.

The Government have previously mentioned Ofsted-style inspections, perhaps every four years and maybe covering providers with 1,000 or more homes. Such statements in press releases are all very well but are not a substitute for a requirement on the regulator set out in the Bill.

We have all been deeply affected by the efforts of the Grenfell survivors, represented by Grenfell United supported by Shelter, to secure real change as a lasting legacy for the 72 lives lost. They have made the case tenaciously. Without a requirement in the Bill for regular inspections, this key component in support of the Bill’s intentions could evaporate. Without a basis in law, the regulator could not be challenged in the courts if it failed to inspect an organisation large or small. The Grenfell families want to ensure that their efforts have made a difference, and this needs to be evidenced by a legal duty for the regulator to conduct regular, routine inspections.

Meetings have been held with the Minister and the Bill team. As a result, the Government devised Amendments 22 and 38, which come close to fulfilling the ambitions of Grenfell United and its supporters at Shelter. They require the regulator to make a plan for regular inspections, spelling out the basis for them, their frequency and their variations for different cases and circumstances, and they ensure proper consultation with tenants and their representatives.

The Minister has been involved with Grenfell families for many years and is clearly deeply committed to meeting their wishes in so far as she is able. The new government amendments on inspections are intended to secure the outcome sought by Grenfell United and I am extremely grateful to the Minister for bringing them forward. It may be that, on reflection, further tweaks would be helpful when the Bill moves through its Commons stages—Shelter’s excellent briefing on this theme illustrates possible additional refinements— but at this moment I am delighted to support the Government’s amendments and will not take my Amendment 17 to a vote.

In conclusion, I hope that all those who have suffered so much as a result of the disgracefully poor management of those Grenfell homes will recognise that it is their efforts that have improved the Bill in this regard. More than this, it is their perseverance, eloquence and sincerity that have led to this whole legislative change. Because of their courage and perseverance, hundreds of thousands of those living in social housing will now benefit from the significant extra dimensions to their protection from poor landlords that this Bill will accomplish.

[Baroness Pinnock (LD)]

My Lords, my noble friend Lady Thornhill is not well and is unable to be here today. She put her name to the amendment to which the noble Lord, Lord Best, has just spoken, so I am speaking on her behalf as much as anything.

These amendments are really important, because at the heart of the debate is the safety of social housing tenants. It is a similar debate to the one we have just had about whether there should be more professional qualifications for housing managers. Like that one, it is based on the social housing White Paper, in which the Government have suggested introducing Ofsted-style inspections for social landlords. This is, in essence, what the amendment in the name of the noble Lord, Lord Best, proposes. In mandating inspections but leaving their frequency to the Secretary of State, and allowing them to exempt certain providers, Amendment 17 is robust but workable.

There was widespread support across the House for the same amendment in Committee, with organisations such as the National Housing Federation and the Chartered Institute of Housing welcoming stronger and more proactive regulation of the consumer standards. As the CIH stated in its briefing, it is vital that the regulator has the resources to undertake these inspections. Ultimately, these inspections will help not only to avoid the catastrophic lapses in safety that led to the Grenfell tragedy—among others, but obviously Grenfell is by far the worst—but to strengthen the ability of the social housing sector to provide warm, secure and affordable housing.

The Government have tabled Amendments 22 and 38, and the Minister has again shown that she is listening and seeking to respond to what was said in Committee. But in the opinion of these Benches, the government amendments do not appear as robust as the one tabled by the noble Lord, Lord Best. Inspections are not mandated; rather, the plan must outline whether they “should” take place and at what frequency. The regulator

“must take appropriate steps to implement the plan.”

Perhaps the Minister can outline what the steps could be. What are these “appropriate steps”? What teeth does the regulator have to implement inspections? Will the Government review these provisions to determine whether they have been successful or whether further steps will need to be taken to make sure that inspections are happening? What timeframe will we see for the plan? When will it be published and how often should it be reviewed? There are lots of questions, and lots of answers are needed if we are to be able to judge whether the proposals from the Government are sufficiently robust.

Given that tenants, providers and the Government all seem to agree on the need for more proactive regulation, we on these Benches hope that the government amendments will be all that is necessary for inspections to be frequent and effective. We just hope that we will not look back and wish we had used this opportunity to further strengthen the law on this issue, as the amendment from the noble Lord, Lord Best, would allow us to do.

I want to end the debate in this House on this very important Bill by recognising, as others have done, the powerful commitment that Grenfell United has made to making the Government and the rest of us understand the importance of social housing being of the highest quality and safe and secure, with managers who know what they are doing and with a regulator who has teeth. None of us ever again wants to be party to a terrible tragedy like that which occurred in June 2017.

--- Later in debate ---

I support everything that noble Lords have said today about the importance of this Bill and, particularly, its importance to the people of north Kensington—especially those affected by the fire. Our thoughts and our prayers are with them as we move the Bill forward. On the basis of what I have said, and in the hope that my amendment will satisfy the noble Lord, I ask him to withdraw this amendment.

[Lord Best (CB)]

Everything that should be said has been said, and I am very glad that we have finished on the note of thanking those in Grenfell United. Over so many years such persistence has been shown in getting us to the point we are at today, and we are all very grateful to them. I beg leave to withdraw the amendment.

Amendment 17 withdrawn.

Housing: Leasehold Properties

Lord Best Excerpts

Monday 17th October 2022 Lords Chamber

[Baroness Scott of Bybrook (Con)]

The noble Lord is right: I answered a Question from him not many weeks ago. I have spoken to myself a great deal since that time, as I promised. Noble Lords have to understand that these are very complex and technical issues. The reform will be felt for generations to come, so we need to take time and care. We have made very clear—it is in our manifesto—that we will bring further leasehold reforms in this Parliament. To move things on, I hope the noble Lord opposite will agree that we should meet and talk about what are the important parts of leasehold. I am happy to open that meeting to others in the House, because I know how important it is for noble Lords.

[Lord Best (CB)]

Can the Minister confirm that the recommendations from the Government’s own working group on regulation of managing agents will see the light of day in these new reforms? Managing agents look after nearly all the 5 million or so leasehold properties, and their quality and performance vary from the excellent to the dreadful. Will we see these regulatory measures, as recommended by that working group, in the new legislation?

[Baroness Scott of Bybrook (Con)]

I thank the noble Lord for the work that he did on that group. The Government are making sure that tenants and homeowners are protected from abuse and poor service; it is happening—we know that. This includes raising professionalisation and standards among property agents, protecting consumers and defending the reputation of good agents. There are many good agents out there and they have to be protected from the actions of rogue operatives. The Government welcome what the industry itself is doing; it has set up a code of practice for property agents. We will work continually, keeping our eye on the working group on the regulation of property agents, chaired by the noble Lord, Lord Best, but also working with the industry to ensure that it continually improves best practice.

New Homes Commitment

Lord Best Excerpts

Tuesday 21st June 2022 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, £550 million has been allocated to seven mayoral combined authorities. However, we recognise that we need to announce the availability of funding for smaller brownfield sites, which will happen very shortly.

[Lord Best (CB)]

My Lords, the Minister will know that half of all the affordable housing that is produced annually within the 300,000 target comes from the planning obligations on housebuilders. Can he reassure the House that the planning reforms in the levelling-up Bill will not diminish the amount of affordable housing that housebuilders have to produce, since we need to double the output of affordable housing and not halve it?

[Lord Greenhalgh (Con)]

I can give an assurance that the Levelling-up and Regeneration Bill recognises the role of building more housing, including more affordable housing. We are trying to ensure that there is a more transparent approach to the levy. There is reform around the current community infrastructure levy to get that right and to make sure we get a proper contribution to affordable housing in the coming years.

Social Homes for Rent

Lord Best Excerpts

Thursday 26th May 2022 Lords Chamber

[Lord Greenhalgh (Con)]

We try to set specific, measurable and achievable targets. I do not want to trade statistics, but I point out that in the last decade, we have seen local authorities once again building homes for social rent—18,300 homes for social rent. In the 13 years from 1997 to 2010, local authorities built merely 2,994 affordable homes. So, with councils able to build more social rented homes, we will have a very good chance of meeting those targets.

[Lord Best (CB)]

My Lords, does the Minister agree that the Government get incredible value for money investing in the acquisition and modernisation of existing rundown privately rented properties? This converts them into affordable, safe, secure socially rented homes, but it also addresses fuel poverty, hits the decarbonisation and climate change agenda and tackles health inequalities, because people are in cold, damp and hazardous conditions. It serves the levelling-up agenda as well, because it produces jobs, employment, training and apprenticeships. It does all these things at once, and the Government get most of their money back in lower housing benefit costs.

[Lord Greenhalgh (Con)]

The noble Lord is right that we have seen a spiralling increase in housing benefit costs—staggering increases over the past decade or so. Of course, taking poor-quality private rented accommodation and turning it into high-quality affordable housing is a good thing and provides value for money for the taxpayer.

Housebuilding: Target

Lord Best Excerpts

Wednesday 30th March 2022 Lords Chamber

[Lord Greenhalgh (Con)]

I look at whatever it takes to support councils in being able to build and shape their areas. An increasing number of councils are doing precisely that. This Government have enabled councils to borrow more liberally against the housing revenue account, but we will look at whatever measures we can to encourage local authorities to take a leadership role.

[Lord Best (CB)]

My Lords, the skills shortage in the construction industry is set to be a major problem for years to come. A solution is to attract more women into this industry, since, as your Lordships’ Built Environment Committee points out, only 4% of the construction trade’s roles are held by women. Does the Minister agree that, when rejuvenating the failed apprenticeships scheme, it would be particularly helpful if a special effort was made to recruit apprentices who are women?

[Lord Greenhalgh (Con)]

My Lords, of course we want to ensure that we get both men and women, and particularly women, involved in construction, but, as the Building Safety Minister, what I want to see above all is an increase in the quality and competence of the people who build our homes.

Building Safety Bill

Lord Best Excerpts

Lords Hansard - Part 1 & Report stage
Tuesday 29th March 2022 Lords Chamber

[Baroness Bennett of Manor Castle (GP)]

My Lords, I offer Green support for all these amendments, which have been so powerfully and comprehensively introduced. I am not going to go over any of the same ground but shall focus particularly on Amendment 2 in the name of the noble Lord, Lord Crisp, with full cross-party backing, particularly the wording,

“‘safety’ means the risk of harm arising from the location … of buildings”.

In some ways that might be seen to deliver the aims of two amendments that I tabled in Committee but have not brought back on Report, Amendments 132A and 132B, which would have delivered what has been called Zane’s law, targeting the issue of contaminated land and the risks that such land may represent to residents and others in nearby buildings. For those who do not know, Zane’s law refers to the tragic child Zane Gbangbola, who died and whose father was disabled when flooding carried contaminants from nearby land into their home.

If we had a safe location for every building, that would seem to deal with the issue. However, looking at our debate in Committee, I note that the noble Baroness, Lady Hayman of Ullock, kindly offered support for amendments in this direction. What she said then clearly sets out the problem:

“If we can identify the size and scale in every part of the country where contamination is, that would be a very logical starting point to prevent future risk to life and support local authorities in tackling the whole issue of contamination”.


In responding, the Minister suggested that the Building Safety Bill was not the right place to bring in Zane’s law because it would take the focus away from the environment and put it only on buildings. I think that she was right in that supposition, which is why I have not brought the amendments back now; the planning Bill, if indeed we see one, may well be the place to do that. However, where I disagree with the Minister—she was responding to my noble friend Lady Jones of Moulsecoomb, who kindly introduced these amendments as I could not be present—is where she noted that Section 143 of the Environmental Protection Act 1990

“was repealed, but it was replaced by Part IIA of the Environmental Protection Act 1990”.—[Official Report, 2/3/22; cols. GC 333-34.]

However, that was a significant downgrading of the protection and the powers offered by local authorities. It is worth looking at what was known as, perhaps rather unfortunately, the Red Tape Challenge: Environment Theme Proposals from March 2012, which effectively downgraded three-quarters of environmental regulation. Those changes to the guidelines said that they were

“anticipated to save business £140 million a year by reducing uncertainty about when land needs to be remediated”.

“Reducing uncertainty” is a phrase that needs to be re-examined and reconsidered.

I commend all the amendments, particularly Amendment 2, which focuses on the issue of the safe location of buildings. A great deal of regulatory work would have to be done to deliver that, which would include Zane’s law. If this becomes part of the Bill, the Government would have to look at that, but it would be a big step forward if we focused adequately on ensuring that—in this age of the Anthropocene and the climate emergency, in which new risks are emerging that were not present before—no one has a home or building in a place that is dangerous.

[Lord Best (CB)]

My Lords, I will briefly speak to support the amendment tabled by the noble Lord, Lord Crisp, and declare an interest as chair of Oxford University’s Commission on Creating Healthy Cities. I also declare my interest as a vice-president of the Town and Country Planning Association.

An obvious case of building safety impacting on health and well-being is surely the permitted development rights regime. Submissions to the Oxford Commission on Creating Healthy Cities have revealed widespread condemnation of the appalling building standards allowed via permitted development rights, which permit conversions of commercial and industrial buildings into accommodation without the need for normal planning consents. This has led to the creation of some ghastly, substandard new slums often on non-residential business parks full of safety hazards, with no facilities, no play areas for children and danger from traffic. Research at University College London reveals that a very large proportion of the well over 100,000 homes delivered through these permitted development rights have been substandard.

I am pleased that there has now been some regulatory change and requirements for at least some natural light and minimum space standards. However, this controversy has highlighted the importance of adequate space, sufficient daylight, protection from noise and a surrounding environment that is not hostile and unhealthy. That underlines the need for bringing together housing and health issues under the banner of minimum standards that recognise the broader definition of safety in the amendment in the name of the noble Lord, Lord Crisp. This would engage the new regulator in the process and require attention to be paid to health and well-being as essential aspects of the homes that we build and the places that we make. I support Amendment 2.

[Lord Stunell (LD)]

My Lords, it has been an interesting debate so far and I hope that I will not let the standard drop. Three excellent amendments have been proposed. I have added my name to Amendment 2 tabled by the noble Lord, Lord Crisp, but I could equally well have done so to the others as well. I look forward to hearing what the Minister has to say.

In different ways, the amendments all look at the strategic vision for what building safety should be and how it should perform. The noble Lord, Lord Foster, made a strong argument for widening the purposes of building regulations from the simple protection of life to the protection of property.

The noble Lord, Lord Aberdare, has renewed his persistent and well-justified point that there is a terrible shortage of performance from the construction industry, driven by its dysfunctional character—in particular, as he highlighted, the use of retentions in building contracts, which makes a collaborative process difficult to achieve in the industry. He referenced the Construction Playbook and what BEIS is doing. If the Minister is just going to say kind words to the noble Lord, will he also undertake to get the Department for Education to follow the Construction Playbook and get rid of retentions in the contracts that it signs? All the questions that I have asked of the Department for Education have been answered in a rather injured tone. It says that it is doing its best for the public purse—not while it continues to insist on retentions, which undermine the collaborative way the construction industry has to go.

--- Later in debate ---

[Baroness Fox of Buckley (Non-Afl)]

My Lords, I will speak to Amendments 36 and 46. I was pleased to hear the noble Lord, Lord Blencathra, be so kind about my previous comments, but then I remembered that it was not him speaking. I thank whoever said something nice about the points that I was making.

I feel slightly awkward because, in some ways, I should be saying that I had a win in Committee, but here I am again. Amendment 36 seeks to insert a clause that would mean that

“an accountable person must take … steps to achieve best financial value”

for leaseholders. It would require the Secretary of State to issue guidance to ensure that this duty is taken seriously. This is to focus the mind on the danger that we have seen throughout this Bill where, in the name of safety in a Bill taking on the grave injustice suffered by leaseholders of having to pay for building safety remediations, sometimes the solution inadvertently creates even more layers of disproportionate, overly cautious and risk-averse regulation and bureaucracy, which result in spiralling and never-ending sets of additional costs for leaseholders.

After Committee, when announcing the changes that the Government were making to the Bill, the Secretary of State, Michael Gove, said that they had listened to leaseholders’ concerns and were

“removing the requirement for a separate building safety charge and scrapping compulsory building safety managers, to help avoid unnecessary costs.”

Brilliant, I thought. When the Minister then told me that there would now be no building safety managers, I must confess that I was delighted. My amendment to abolish the building safety manager role was the first amendment that I had ever tabled and I had had a win. However, before I got the bunting out and allowed myself to indulge in any backslapping, I was brought to a pause by leaseholders, who noted:

“Small gains towards fairness, decency & common sense do not equal an overall ‘win’, the battle is v much ongoing!”


It is important that the Government have listened. A little like the noble Lord, Lord Blencathra, I should say that any caveats that I raise now are not intended to be churlish. However, it is precisely because I accept the assurances of the Minister and Michael Gove that they want to ensure that there are no unintended outcomes from the Bill in terms of avoidable unnecessary costs that I have tabled this amendment, which gives guidance a chance to push home the point that value for money for leaseholders is a very important thing.

This is not just about my fears around what might happen or leaseholders being paranoid. At a sector conference—Leasehold London 2022—Shaun Lundy, a chartered health and safety practitioner and a supporter of building safety managers, reflected on what removing that role would mean. He said that what worries him a bit is that some of the onerous duties are still there so, even if you get rid of the role, it still leaves a void over who will do the work. He worried out loud about the danger of creating “a disproportionate industry” and “another layer of bureaucracy”, especially in relation to the new duty to create safety case reports. He noted that, although some reports he had seen were sensible, others were completely over the top; he gave the example of a 50-page report costing £50,000 but with no tangible benefit. The building safety manager may therefore be dead but, for some, it is “Long live the building safety manager and their duties”. Dame Judith Hackitt’s call soon after Grenfell that it was not good enough to wait for a change in the law and that freeholders had to act has led to something of a panic reaction and has often been taken literally.

Just to give you an example, I will tell you the story of Aviva leaseholder Sarah from the Quadrant in Salford. With no law passed, her managing agent, Contour Property Services, has charged her and her fellow leaseholders for a building safety manager. What is more, it has appointed an additional building safety co-ordinator. In correspondence with the lease-holders, Contour writes of balancing “value for money” against taking

“appropriate measures to meet new safety requirements”.

Then the killer line tells them, almost casually as an afterthought:

“As a result of these appointments, there will be an increase in your service charges.”


There they are, in the small print, for the forthcoming year from April 2022 to March 2023. If you look at the small print in the bill, as I have, the building safety manager is there at £21,249.50. The cost of the part-time safety co-ordinator is £11,702.56 and this is charged to the leaseholders.

This might be blatant but, even if there is no direct mention of the building safety manager, it seems that they are lurking in the shadows, rebadged or slightly in disguise, but ever present none the less. The heavily administrative substance of the duties that they were meant to take part in remains in the Bill. Many of these duties are based on the precautionary principle, sadly interpreted through the prism of zero risk and often disproportionately focused on myriad possible risks rather than clearly defined dangers. In Sarah’s case, one of the listed duties is writing and maintaining the building safety case for the building, which shows that all the potential risks have been considered and mitigated. Never mind the cost of the building safety case itself, who will pay to resolve all the potential risks?

The question is whether the removal of the legal requirement to appoint building safety managers is strong enough to, in effect, stop them being imposed. This amendment asks the Government to note that the genie is out of the bottle, but the Secretary of State has the opportunity to ensure, in guidance, that the sector should not just rush to risk-averse costly solutions because they have once been suggested, but should instead focus on whether costs are proportionate to real risks and ensure that value for money is a barrier to costs just being dumped on leaseholders via service charges or other nefarious routes.

Of course, it is not all about money. We have to consider human costs, too. There is no point in knowing the cost of everything but ignoring the non-monetary value of homes for people, discussed so eloquently in the group beginning with Amendment 1.

Amendment 46 focuses on tightening the ability of freeholders, landlords and managing agents to force entry into leaseholders’ homes. When I raised this in Committee, there was understandable concern. People wanted to say, “What if there is an emergency? You need to be able to enter.” We can all think of such instances. I know that that happened with a burst pipe in a flat above mine, with water pouring into the flat below. You need to be able to get in to turn the water off, but this should be a last resort. This modest amendment simply aims to reinforce that point and to give leaseholders some power in that decision.

At present, despite limited rights for leaseholders, which have become increasingly clear since building safety issues came into the public realm, landlords have been under an implied obligation—as the ideal—to give the tenant or leaseholder “quiet enjoyment” of the property and they should not interfere with that. If you read the literature around building safety, you will discover an increasing clamour to challenge the idea that leaseholders have any rights to stop entry into their homes, presenting leaseholders as obstacles to safety.

For example, in the Safer People, Safer Homes: Building Safety Management report of a couple of years ago, there are complaints of

“Leasehold … units … purchased by their owners, who are not culturally accustomed to the notion that the owner … has any jurisdiction over their home.”

The landlords complain that access for owners and their agents is just too difficult. Extraordinarily and insultingly, the assumption is that, behind leaseholders’ front doors, they all behaving as fire hazards, irresponsibly ignorant of risks. Leaseholders are painted as ill-informed problems:

“Most will have no comprehension as to fire (or other safety) principles and their place in the matter.”


The report demands:

“Timely intervention on a statutory basis is needed to enable prompt access”


in order to

“monitor or assess risk and condition.”

My concern is that all these checks, monitoring and assessment will mean demands for entry beyond any reasonable bounds of common sense. Leaseholders themselves are anxious that the Government press home that this is not encouraged, and that the Government ask key questions of landlords.

Amendments 46 and 47 would restrict the power to enter people’s homes unless it was essential and would make it clear that the court must be satisfied that it was necessary to grant entry only in extreme circumstances, not just because an accountable person had sent a notice demanding entry for building safety purposes so vaguely defined that they could include anything from the overuse of scented candles to fridge inspections. I am just waiting for smoking in one’s home to become a listed fire risk, although I do not want to give that idea to the Government.

I make a final plea that leaseholders’ property rights are not just to be shooed away and a final reminder—one that I will return to later—that we should avoid pushing a narrative that assumes that all blocks of flats are inherently dangerous and at high risk of fires, creating a climate of fear that then justifies the surveillance and monitoring of leaseholders in their homes and the reorganisation of everyone’s lives around hypersafety and zero risk at great cost, both financially and in the human sense of civil liberties and privacy rights, to those homeowners who are unfortunate enough to be leaseholders as well.

[Lord Best (CB)]

My Lords, I shall say a few words on behalf of my noble friend Lady Grey-Thompson in respect of Amendments 13, 20 and 35, to which her name is attached. As the noble Baroness, Lady Brinton, explained, my noble friend sends her apologies; she is attending the thanksgiving service for His Royal Highness the Duke of Edinburgh in her capacity as chair of the wonderful Duke of Edinburgh’s Award scheme. I think we all agree that that event should take priority.

She wanted her thanks to the Minister and his officials to be recorded for the new amendment, which will require the regulator to report regularly on engagement with residents who are disabled. She has greatly welcomed constructive talks outside the Chamber and is keen to keep working with the Minister on personal emergency evacuation plans to meet the needs of people with disabilities so that they have correct and useful information and can feel safe where they live.

Amendment 86 in this group is in my name and that of the noble Baroness, Lady Neville-Rolfe. I will also comment on government Amendments 73, 85 and 263. In Committee, I raised the issue of leaseholders managing their own blocks of flats who would be given onerous new responsibilities for safety issues by this Bill. These new duties and liabilities could deter many from acting as the voluntary unpaid directors of their resident management companies and right-to-manage companies. These self-managed blocks depend on their volunteer directors to give up their time—and, indeed, risk falling out with their neighbours since not all their decisions will be popular with everyone—but who wants to risk a criminal prosecution and a criminal record for failing to carry out all the correct safety actions required of an accountable person by the Bill? Recruiting and retaining volunteers to be directors of resident-run companies is already difficult yet there is widespread agreement that more, not less, leaseholder control should be strongly encouraged.

The Minister has recognised the issue and brought forward government Amendment 73 to enable lease-holder-controlled companies to take on board a paid expert building safety director to provide this service to the company if, and only if, the leaseholders wish to delegate the job. Amendment 85 means that the cost of engaging that professional as the person responsible for building safety can be included in the service charges for all residents. These government amendments are very welcome; I thank the Minister very much for listening to the arguments and acting accordingly.

However, the Institute of Residential Property Management and the Association of Residential Managing Agents—they are now becoming a single entity, to be known as the Property Institute—noticed one obstacle to the Government’s otherwise excellent solution: quite a few resident-controlled companies prohibit the appointment of any director who is not themselves a leaseholder in the block. My amendment would address that point and enable an external expert safety director to be appointed in such circumstances, with necessary protections on costs and the ability to get rid of the building safety director if the arrangement does not work out.

Building Safety Bill

Lord Best Excerpts

Lords Hansard - Part 2 & Report stage
Tuesday 29th March 2022 Lords Chamber

Moved by

[Lord Best]

86: Clause 115, in subsection (2) before paragraph (a) insert—
“(za) as if it contained provision authorising the appointment of a person (whether or not a leaseholder or a resident of the building) as a director of the landlord for a building safety purpose,”Member’s explanatory statement
The new clause “Building safety directors of resident management companies” which stands in the name of the Minister ensures that any restrictions in the Articles of Association of a residents management company are disapplied insofar as they conflict with the new power to appoint a professional director to discharge building safety duties. This amendment supplements that amendment by ensuring that any similar restriction imposed by a lease is also disapplied.

Building Safety Bill

Lord Best Excerpts

Committee stage
Monday 28th February 2022 Grand Committee

Moved by

[Lord Best]

45: After Clause 72, insert the following new Clause—
“Appointment of third parties
(1) This section applies where—(a) a RTM company within the meaning of section 113, Commonhold and Leasehold Reform Act 2002,(b) a body corporate of whatever description where the majority of the shares are held by leaseholders of dwellings, or(c) a body corporate of whatever description which is limited by guarantee and the members of that company are also leaseholders of dwellings,is either the accountable person or principal accountable person.(2) Where this section applies, notwithstanding any provisions of the Memorandum or Articles of Association or any rule of law to the contrary, the company may appoint a third party to discharge all the functions of the accountable person or the principal accountable person who will assume all duties, powers, liabilities and penalties under this Act in place of the company, and this Act is to have effect as though references to the accountable person or principal accountable person were references to the third party appointed under this section.(3) If such a person is appointed then the company is empowered to re-charge and apportion the costs charged by such a person as if they were a service charge under the leases of the dwellings.(4) Such charges will, for all purposes, be deemed to be service charges within the meaning of section 18 of the Landlord and Tenant Act 1985, save that the provisions of sections 20 and 20ZA of the Landlord and Tenant Act 1985 do not apply.(5) The Secretary of State may by regulations impose conditions which must be satisfied before an appointment can be made under subsection (2).(6) Without prejudice to the generality of subsection (5), those regulations may include—(a) provision for a minimum level of professional qualification to be held by the third party,(b) provision for minimum levels of professional indemnity provision.”Member’s explanatory statement
This provision would enable leaseholder-owned or controlled companies to appoint an external professional to discharge the functions of the Accountable Person or Principal Accountable Person and for the costs of the same to be recoverable (and regulated) as if they were a service charge under the lease.

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[Lord Best (CB)]

My Lords, this group should not detain us too long, for three reasons. First, the group has only one amendment, this one. Secondly, the issue here is not of the same complexity or magnitude as the all-important matters that the Committee discussed last Thursday. Thirdly, I think that the Minister will not take too long to accept it. Amendment 45, in my name and the name of the noble Baroness, Lady Neville-Rolfe, concerns the impact of the Bill on the management of leasehold property, in particular the management by the leaseholders who live there.

The amendment has the backing of leaseholders and of bodies representing those managing leasehold flats, the Institute of Residential Property Managers and the Association of Residential Managing Agents. I declare an interest as chair of the Government’s regulation of property agents—RoPA—working group, whose 2019 report provides insights into the arrangements for managing blocks of residential apartments. Amendment 45 seeks to prevent the Bill from creating a major problem where residents of blocks of flats have responsibility themselves for the collective management of their homes. It covers the residents management companies, where the developer has handed over ongoing management to the leaseholders, and the right to manage companies, where residents have exercised their right to take control under the Commonhold and Leasehold Reform Act 2002, on which, incidentally, I gave my maiden speech 20 years ago.

These resident-controlled companies will have a board of unpaid volunteer directors. The directors will sometimes decide to employ managing agents to carry out the usual management and maintenance tasks, but the legal responsibilities for their company’s actions will remain with the directors. The Bill as it stands places a new layer of responsibility on these resident directors: they must, together, assume the role of the accountable person or principal accountable person responsible for building safety. This makes each individual director personally liable if things go wrong. They may engage expert help, but they cannot shed their accountable person status and the full liability remains with them.

The directors will now have to identify safety hazards, decide on the remedies and procure the necessary works. There are plenty of opportunities for mistakes and the new building safety regulator could discipline them, fire them or fine them, ruining their personal reputations. Fellow residents could sue them for mismanagement or misjudgment. Indeed, under Clause 131, if residents do not feel that the residents management company has done enough to recover money from third parties, they can take them to court.

The entirely predictable but unintended consequence of placing this serious new burden on resident directors is surely that no one will volunteer for the role. Already it is often a hard job to recruit and retain willing volunteers, who must not only give up their time but risk falling out with neighbours when taking decisions that cannot please everyone. It is commonplace for directors looking for a new volunteer to be economical with the truth: “It won’t be very time-consuming or onerous”, they say. How much more difficult will the recruitment of new and the retention of existing directors become if this Bill adds considerably to the obligations placed on anyone who dares to volunteer?

Amendment 45 seeks to resolve the problem. It has two parts. First, it would allow the residents management companies and right to manage company directors, if they wish, to pass on the functions and liabilities of the accountable person or principal accountable person to an external, competent, qualified third party with proper professional indemnity insurance, which the directors could never obtain. Secondly, it would enable the directors to pass on the costs of so doing to the residents via the service charges. With this amendment in place, a significant barrier to leaseholders managing their own affairs will be avoided.

Successive Governments have consistently encouraged residents to assume mutual responsibility for managing their blocks of flats. Indeed, moves are in the pipeline to relaunch the so far unsuccessful commonhold arrangements, whereby the occupiers own the freehold as well as handling the management. So I am sure that there is no intention to impose a huge disincentive for leaseholders to participate in residents management companies and right to manage companies. By enabling the duties imposed by this Bill to be transferred from the volunteer residents to professional experts, a potential exodus of volunteers can be avoided and the encouragement for more resident control can be sustained. I hope, therefore, that the amendment is helpful in correcting an unintended oversight and that it will appeal to the Minister. I look forward to the contribution of the noble Baroness, Lady Neville-Rolfe, and I beg to move.

[Baroness Neville-Rolfe (Con)]

I support the noble Lord in his Amendment 45. He has described the issue very well—and given his huge contribution to the House, I shall look up his maiden speech.

I worry that unless we can find a way out for leaseholders who are also owners, no leaseholder in their right mind would contribute to the management of a building jointly owned by leaseholders. This has been a direction of travel in recent years, which I support. I believe it to be particularly valuable for smaller housing developments, of which we need more. As my noble friend Lord Young of Cookham said in Committee on 24 February, successive Governments have encouraged leaseholders to buy their freeholds. Indeed, he himself played an important part in that process. As I understand it, the leaseholders who have enfranchised and bought their freeholds are excluded from support under the Bill. That seems very unfair.

I know from direct experience in my own family that it is already very difficult to secure volunteers to run leaseholder-owned buildings, given the onerous duties involved and the time requirement. The Bill, with its additional duties and tensions, will, I fear, make it impossible. Here we have yet another perverse effect. I agree with the noble Lord, Lord Best, that a solution must be found by Report, either by accepting his amendment or, if need be, in some other way. This is an unintended consequence that nobody wants.

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[Baroness Scott of Bybrook (Con)]

We absolutely understand the issue We are working on it. As I said, if we have a meeting, maybe we would have some ideas. I do not know about guidance yet, but we will make sure that we can have that discussion. I hope that we will get something better in place before Report.

[Lord Best (CB)]

Those final comments were the ones that I hoped to hear: that, with a bit of discussion, we may be able to find a way around this. The test for me is a real one. My son in a block of flats says, “Dad, should I think about being one of these directors?” My answer at the moment is, “Steer well clear. It is not a good idea to volunteer for this at the moment.” I look forward to those discussions and hope that we can come to an agreement. I beg leave to withdraw the amendment.

Amendment 45 withdrawn.