Building Safety Defects

Lord Bishop of St Albans Excerpts

Wednesday 5th January 2022 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, it is for my right honourable friend to set out this approach. It is entirely proper that he should do that, and he has undertaken to do so. He has set out the principles around greater proportionality, protecting leaseholders and getting the polluter to pay, as I have said previously at the Dispatch Box. We must wait for that detailed announcement, but I am taking a personal interest. I have called in registered social landlords who seem to be passing on costs to shared owners and leaseholders, and held them to account. The chief executive of Optivo has indicated to me that it is now not proceeding with costly remediation for Oyster Court or Mill Court. I am also calling in another RSL—Shepherds Bush Housing Group—which seems to be considering passing on costs on a medium rise to shared owners who do not have the bandwidth to be able to pay it. Actually, Shepherds Bush Housing Group was the original developer and was subsidised to do the development; I think it wrong that these registered social landlords are in some cases seeking to pass the costs on to people whose shoulders are not broad enough to bear them.

[The Lord Bishop of St Albans]

My Lords, one of the very serious results of this problem is that many people are desperate to move, but simply cannot sell their properties any longer. This is causing huge difficulties for people trying to get jobs in other parts of the country. What assessment have the Government made of the Welsh Government’s proposal to start buying some of the properties that cannot be sold for the moment and turn them into affordable housing and social housing and so on, as a way of trying to break the deadlock?

[Lord Greenhalgh (Con)]

My Lords, I have always loved a magic bullet, but the reality is that the scale of the cladding and building sector crisis in Wales is a fraction of that in England. That is just a fact: I could give the right reverend Prelate the statistics if he is interested, but we are not going to solve it that way. We need to have a greater sense of proportion. We have made this a bigger scandal than it needs to be because too many buildings have been declared unsafe that are perfectly safe. Frankly, there is an industry profiteering on the back of this, and we need to do something about that. There needs to be a call for innovation to encourage mitigation, more often than not, rather than full-scale costly remediation; we need to make sure that there is an adequate, sensible, proportionate approach to this crisis.

Rural Poverty

Lord Bishop of St Albans Excerpts

Monday 25th October 2021 Lords Chamber

Asked by

[The Lord Bishop of St Albans]

To ask Her Majesty’s Government, further to the report by the Rural Services Network Towards the UK Shared Prosperity Fund, published in June, what plans they have accurately to reflect in-work rural poverty in future funding allocation mechanisms.

[The Minister of State, Home Office and Department for Levelling Up, Housing & Communities (Lord Greenhalgh) (Con)]

The UK shared prosperity fund will help us to level up and create opportunity across the United Kingdom in the places most in need and for people who face labour market barriers. The Government are working closely with local areas, including rural communities, to assess how the UK shared prosperity fund can best target places in need.

[The Lord Bishop of St Albans]

I thank the Minister for his reply. Recent research by CPRE suggested that just 40% of young people living in rural areas expected to remain there in the next five years. They cited affordable housing, connectivity, rural transport and rural employment as the factors driving them out. If Her Majesty’s Government are to deliver on the levelling-up agenda between urban, rural and suburban, is it not time for them to deliver on the rural strategy promised in the response to the Select Committee report Time for a Strategy for the Rural Economy?

[Lord Greenhalgh (Con)]

My Lords, the Government are committed to addressing the issues that the right reverend Prelate raises. For instance, the levelling-up fund of some £4.8 billion will focus specifically on the issues around transport connectivity, regeneration and ensuring that we see economic recovery, whereas the shared prosperity fund will deal with the issues around unemployment, skills, productivity and other labour market barriers.

Leasehold: Building and Fire Safety

Lord Bishop of St Albans Excerpts

Thursday 16th September 2021 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, I am very happy to join the noble Lord in visiting the people who will be demonstrating today at 1 pm. This is continually a moving feast. I am happy to announce that we are increasing the amount of money we are putting in the waking watch relief fund, which has been a crippling cost for many leaseholders, by a further £5 million to the initial £30 million. That has helped around 20,000 leasehold dwellings and 264 buildings to date. We continue to ensure that we find ways to make sure that the original developer pays wherever possible.

[The Lord Bishop of St Albans]

My Lords, many people do not seem to realise that this is having a devastating effect on people of every social class. I was 10 minutes late coming in because I was hearing about a lawyer living in St Albans, where I live, who now faces bankruptcy and may no longer be able to practise if she is made bankrupt. If you buy a defective car it gets recalled and has to be sorted out. What attention and consideration are Her Majesty’s Government giving to the polluter pays principle, which we need to build into this issue if we are to address this devastating problem unfolding before our very eyes?

[Lord Greenhalgh (Con)]

My Lords, we recognise that if you buy a defective dwelling you expect the person responsible for the building of it to do something about it. That is precisely why the Government, as part of the Building Safety Bill, are proposing to increase the Defective Premises Act redress period from six years to 15 years retrospectively, which will bring in a great number of buildings to be able to seek redress from developers. That is why we continue to work on measures that will ensure that the polluter does pay wherever possible, and we are looking very closely at proposals from Steve Day and his team around the polluter pays amendments.

Council Tax

Lord Bishop of St Albans Excerpts

Thursday 22nd July 2021 Lords Chamber

[Lord Greenhalgh (Con)]

My noble friend’s suggestion has some merit. Even a limited revaluation would be costly and would yield significant extra revenue only in those parts of the country where house prices are the highest, given that council tax income is not redistributed. It would also leave council tax payers in a rather odd, and arguably less fair, situation where some were paying their tax based on 1991 values while others were doing so based on prices in the present day.

[The Lord Bishop of St Albans [V]]

According to the citizens advice bureau, council tax is the most common debt problem faced by families in Britain, with 86,000 people in England struggling to keep up with payments. The current system heavily favours the south-east and disproportionately disadvantages the poor. As part of the levelling up agenda, what consideration have Her Majesty’s Government given to a land value tax to address these inequalities?

[Lord Greenhalgh (Con)]

My Lords, the Government do not have any plans to introduce such a land value tax, but they are committed to supporting those on low incomes, including by increasing the living wage and by spending £111 billion on welfare support for people of working age in 2020-21.

Housing: New Developments

Lord Bishop of St Albans Excerpts

Thursday 17th June 2021 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, we need to recognise the existing frailties of the current planning system, which has not been reformed for over seven decades and has a very poor record on public engagement. Data shows that less than 1% engage on local planning consultations and only 3% engage on applications. That is something that we intend to improve with the reforms that we have outlined in the White Paper.

[The Lord Bishop of St Albans [V]]

My Lords, there is a real risk that the proposed changes to the planning process could mean that fewer accessible homes are built for older and disabled people. Research from the housing association Habinteg reveals that more than half of all local plans make no requirements for new homes to meet any accessible housing standard. Fewer accessible houses are being planned now compared with 2019. What plans do Her Majesty’s Government have to ensure that more homes are built to accessible and adaptable standards?

[Lord Greenhalgh (Con)]

My Lords, we continue to set standards around accessibility and recognise that it plays an important part in getting the right number of new homes. We have set out an approach that allows more public engagement, so that local communities can shape the places that they live in.

Fire Safety: Leaseholder Bankruptcies

Lord Bishop of St Albans Excerpts

Monday 24th May 2021 Lords Chamber

Tabled by

[The Lord Bishop of St Albans]

To ask Her Majesty’s Government what assessment they have made of the (1) current, and (2) future, incidence of leaseholder bankruptcies attributable to remedial fire safety works and interim fire safety costs.

Queen’s Speech

Lord Bishop of St Albans Excerpts

Monday 17th May 2021 Lords Chamber

[The Lord Bishop of St Albans [V]]

My Lords, I too look forward to hearing the maiden speeches of the noble Lords, Lord Coaker and Lord Morse, but I want to start by congratulating the Minister on introducing the leasehold reform Bill.

Ending ground rents—or, as one person called it recently, the serfdom charge—in new developments is an important and positive reform, and I will welcome this opportunity to be mostly congruent with the Minister, after been being on opposing sides of the Fire Safety Bill. While this is a great victory for future leaseholders, existing leaseholders, particularly those in developments affected by the building and fire safety scandal, nervously await their fate.

During the previous parliamentary Session, those Members, including myself, who sought to amend the Fire Safety Bill to protect leaseholders were told that Her Majesty’s Government would address our concerns in the building safety Bill, which I was pleased to hear announced in the Queen’s Speech. There is an urgency to this crisis. Bills of debilitating proportion are already being handed to leaseholders, bankruptcies have occurred, and, tragically, so have related suicides. This is a financial and a mental health crisis that is growing worse every passing day that it is left unaddressed. I therefore urge Her Majesty’s Government to move with haste to bring forward their building safety Bill, so that we can finally provide leaseholders with peace of mind.

Having said that, I want to get this Bill right. The pre-legislative scrutiny committee for the building safety Bill crucially raised the absence of any measures in the Bill to pursue developers for inadequate historic works. While ACM cladding was legal prior to 2019, there are now numerous documented cases where this was fitted not to regulations, without requisite firebreaks or adequate compartmentalisation measures. During this injustice, the six-year limitation preventing legal action is conspiring to force leaseholders into bankruptcy, rather than what the Government have always claimed that they want to do: to get those responsible to pay for remediation. I was grateful for the Minister’s assurances during debate on the Fire Safety Bill that Her Majesty’s Government were

“committed to developing stronger avenues for redress”,—[Official Report, 28/4/21; col. 2369.]

and I hope to see this in the revised Bill. The £2 billion levy on developers is, frankly, derisory, particularly when they are essentially receiving £5 billion in subsidy to fix their own defective developments—a net taxpayer subsidy of £3 billion.

I would like to see some strong action from this Government. Now that we are out of the EU, perhaps they could look at excluding developers who fail to remediate their own buildings from applying for public contracts. The Government should also look seriously at extending the forced loan scheme to include other historic, non-cladding related, fire safety defects, given that they were estimated by the Institute of Residential Property Management at between £26,000 and £38,000 per lease. These bills alone still have the propensity to bankrupt leaseholders.

Finally, I turn to the proposed changes to planning laws. Too often, those with disabilities and their families struggle to find suitable homes and are forced into inaccessible and unsuitable homes. The latest figures from the housing association Habinteg found that, outside London, only 1.5% of homes planned over the next decade will be suitable for wheelchair users, despite the ageing demographic shift. Many leading housing associations have called for the mandatory baseline for all new homes to be raised to category 2—broadly the same as the lifetime home standard. I hope that the Government will move forward and publish their responses to the accessible homes consultation, so that parliamentarians know that they intend to make our housing stock more inclusive and prepare it for the challenges of the future.

Tower Blocks: Cladding

Lord Bishop of St Albans Excerpts

Wednesday 12th May 2021 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, I have mentioned the unprecedented level of funding that has been put forward towards the remediation of cladding, but the risks inherent in a medium-rise building are far lower than in high-rise buildings, some of which go well over 30 metres—the higher the building, the greater the risk. However, it is a significant commitment to ensure that leaseholders in these medium-rise buildings do not have to pay more than £50 per month to enable the remediation of unsafe cladding.

[The Lord Bishop of St Albans [V]]

My Lords, the Government have said that it is not right for the taxpayer to bail out leaseholders, but taxpayers’ money through the building safety fund could be bailing out developers for building substandard developments. What plan do the Government have to investigate whether developments met fire safety regulations at the time of construction and, in those cases where regulations were not met, to apportion remedial liability to the developers, so that those responsible actually pay?

[Lord Greenhalgh (Con)]

My Lords, we made it a condition of accessing any form of government funding that building owners should go through all the routes of redress, in terms of looking at warranties and taking on areas where there has been poor construction practice, to ensure that remediation costs are not passed on to leaseholders.

Fire Safety Bill

Lord Bishop of St Albans Excerpts

Consideration of Commons amendments
Tuesday 27th April 2021 Lords Chamber

I urge the Government, even at this late stage, to listen to those who are on the brink of losing their home and everything they have worked and saved for. They have done everything right and nothing wrong. I give notice that if the noble Lord, Lord Kennedy, seeks to divide the House, he has the support of these Benches. If, however, he chooses not to do so, I will move my amendment and seek the opinion of the House.

[The Lord Bishop of St Albans]

Well, my Lords, here we are again. I do not want to detain your Lordships’ House for too long, because everything has been said several times already, but I want to make a few comments, if I may.

I, too, want the Bill to pass. I pay tribute to Her Majesty’s Government and the money they have already found and put on the table, which is very significant. But since we last gathered here, the sheer scale of the crisis, which is in its very early stages, is slowly beginning to unfold before us and become ever clearer. I believe that is why the majority in the other place declines each time an amendment goes back, because those long-serving, seasoned campaigners in the other place realise what is going on. The stories are coming out absolutely relentlessly, and new research is being published.

At a few minutes to four this afternoon, I received an email from someone who works in Parliament. I will call her Claire; that is not her real name, but she will know who she is, because she emailed me at 3.56 pm and asked if I will speak up. She said, “Will you speak up for the leaseholders again and table an amendment? I bought a flat under the shared ownership scheme. I own a 25% share, yet I am liable for 100% of the costs. I am already paying an additional amount each month, and I know this amount will soon increase as further remediation work takes place. I simply cannot afford to pay for the remediation works, nor should I have to. The stress of this situation is becoming intolerable. My mental and physical health are approaching a state of collapse”. “Will you speak up?”, she said. I have not met her yet—I hope she will say hello to me one day, perhaps when she guesses who I am or sees me around the place. This is someone who we bump into, who works in this place and who serves us.

It is not just the many individuals. Since we last came to this provision, research by the Prudential Regulation Authority, which is assessing the building scandal, has said that it poses a systemic risk to the UK financial sector. Some of the work done since then is finding a huge number of flats and homes which are simply unsellable. For example, it has been reported that

“a one-bedroom flat at Leftbank, in Manchester, failed to sell despite being listed for half the £330,000 its owner had paid in 2017”.

What Members in the other place are realising is that, slowly, this will roll out, and it will mean that many people on whom this Bill relies to be able somehow to stump up the money to repair the buildings will not have that money. The buildings will not be repaired, because some of these people will have to walk away, probably very unwillingly.

We have not only those individual stories but some really worrying assessments coming out of the housing and financial market in our country. Some 3 million people, as we heard from the noble Baroness, Lady Pinnock, are affected. As we are paying tribute to fire and rescue officers, I have three emails from fire and rescue officers who were personally affected by this cladding. These are the people involved, along with nurses, police, teachers, care workers and many others—the House knows the sort of people we are talking about.

I believe that the intent of these amendments is the same: to accept that we have a very difficult problem and really want to see some sort of brokered agreement, whereby developers, cladding manufacturers, freeholders and leaseholders make their fair contribution. We realise that everybody will have to do that, but feel that there need to be protections for leaseholders and tenants over these coming months, before the government scheme comes in. I am minded to support this Motion if the noble Lord, Lord Kennedy, brings it to a Division, but I continue to hope and plead that Her Majesty’s Government will be able either to come up with a compromise or make some sort of formal undertaking on what the building safety Bill will offer, so that we can all get behind it and get this really important Bill through.

[The Earl of Lytton (CB) [V]]

My Lords, I declare my professional involvement with construction and property matters and that I am a vice-president of the LGA. We should be in no doubt that the Government have triggered an issue that is destined to cause significant damage, loss and distress to many leaseholders and tenants. My comments will be aimed at Motions A1 and A2 in the names, respectively, of the noble Lord, Lord Kennedy, and the noble Baroness, Lady Pinnock. I commend them on their persistence and diligence.

I also commend the Government on committing their £5.1 billion to this matter, but the reality is that money alone is not the answer. It requires a plan that is co-ordinated, structured and comprehensive; to be honest, it was needed the day before yesterday and certainly not at some unspecified time in the future. The Government cannot, in all conscience, have been unaware that a situation would likely arise where a significant sector of property might be affected by the expansion of the fire safety regime, nor deaf to the observations of just about every informed observer, from, I believe, the Bank of England downwards, warning of the need for action.

Fire Safety Bill

Lord Bishop of St Albans Excerpts

Tuesday 20th April 2021 Lords Chamber

Moved by

[The Lord Bishop of St Albans]

At end insert “but do propose Amendment 4J in lieu—

4J: After Clause 2, insert the following new Clause—
“Prohibition on passing remediation costs on to leaseholders and tenants pending operation of a statutory scheme
(1) The owner of a building may not pass the costs of any remedial work attributable to the provisions of this Act on to leaseholders or tenants of that building.
(2) This section has effect only until a statutory scheme is in operation which ensures that leaseholders and tenants of dwellings do not have to pay for remedial work attributable to the provisions of this Act.
(3) Subsections (1) and (2) do not apply to a leaseholder who is also the owner or part owner of the freehold of the building.””

[The Lord Bishop of St Albans]

My Lords, I give notice of my intention to seek the opinion of the House when the time comes, and declare my interest as a vice-president of the LGA.

When there is a crisis, we look to Her Majesty’s Government for radical and rapid action. Ministers are good at calling stakeholders to gather around the table. Just yesterday, in the other place, Minister Oliver Dowden said he was appalled by a situation. He promised Members that they should

“be no doubt that if they cannot act, we will … We will put everything on the table to prevent this from happening … Put simply, we will review everything the Government do to support”

this. He went on:

“We will do whatever it takes.”—[Official Report, Commons, 19/4/21; col. 676.]


Indeed, this situation is so important that it is said that the Prime Minister has decided to rearrange his busy diary and intervene personally to hold a round table to resolve the problem. The trouble is that the radical action being talked about concerns the European Super League, not the hundreds of thousands of people who, at this very moment, are facing desperate dilemmas.

I deeply regret having to come back; I know that it is a nuisance and that people are fed up. But this is the first time in my ministry that I have been stopped on the street in St Albans three times in a week by people saying, “Thank you for what you are doing”. So, I come back hugely reluctantly. I want to see this Bill get on to the statute book, I really do. I hope that we will do all we can, if necessary sitting late, to make sure that when it comes back, if it has to do so, it will get on to the statute book; I do not want to hold it up. This is a good Bill, which seeks to implement a recommendation from the Grenfell inquiry. It is of the utmost importance that our dwellings are safe and people can sleep at night.

However, the consequences of this legislation have a huge impact on leaseholders. The Government, whom I thank very much, have committed £5 billion. I accept that this is unprecedented and a wonderful thing; I want to affirm what the Government have done. However, as things stand, the promised grant and loan schemes are not even operational. I am grateful to the Minister—we have had two meetings in the last week—and I know that they are working as hard and as fast as they can, but the schemes are not operational, there are no dates and no assurance has been given on, for example, whether it will be possible to apply retrospectively.

The moment that the Bill passes, those who would ordinarily be excluded from paying for replacement cladding under the government scheme could, within months, be handed very large bills. Likewise, these bills will be handed to those who should have replacement cladding costs capped at £50 per month under the government scheme. The result, I fear, will be bankruptcies, enormous mental health strains, and possibly worse. Part—though only part—of the problem is that there have been no assurances to prevent the remediation costs being passed on to leaseholders until the Government’s own scheme is operational. This shows the complexity of what we are facing. I do not pretend that this is easy, or that my proposal will solve everything but, for example, other historical fire safety defects not covered by this scheme still have the potential to bankrupt leaseholders. I remind the House again of the additional financial issues crippling leaseholders: interim fire safety costs and high insurance policy premiums. Just today I received an email about a building where the insurance last year was £11,963 but, in one year, has gone up to £242,400 because the insurers believe that the building is not safe.

--- Later in debate ---

[Lord Greenhalgh (Con)]

I am very new to this place but, as I have tried to highlight, I do not believe that the solution in large part involves statute. The noble Lord is asking for a further commitment that is really about putting more government money up front to pay for the significant costs faced by leaseholders. It would not be helpful to amend the amendment by removing that word, because I do not think we could accept the amendment in any way whatever. We have set out that we want to focus on the remediation of unsafe cladding because cladding on the outside of buildings is the major fire accelerant. That is what we will focus on and we are putting forward over £5 billion to do precisely that—a significant, globally unprecedented amount. I do not think amending that one word moves us any further forward.

[The Lord Bishop of St Albans]

My Lords, I am hugely grateful for the extraordinary range of speeches made today. I acknowledge what Her Majesty’s Government have done; I take the point that this is unprecedented and a major contribution towards trying to sort out this very difficult problem. The Minister knows that I have said on many occasions that I am terribly naive about all this. I was hoping Her Majesty’s Government would help solve it because I am just an amateur paddling around in the shallows. I am hugely grateful to people such as the noble Earl, Lord Lytton, who is a real expert in this area.

I still believe that my amendment is a practical, helpful and just way forward which is in the spirit of what Her Majesty’s Government want and have committed to. I was hugely grateful to the noble Lord, Lord Adonis, for quoting the Minister in the other place. I am still sufficiently positive—noble Lords will probably say naive—about our political system to believe that this amendment could well commend itself to people in the other place when they see that it is within the spirit of what the Government want to do. I hope that it will be taken back to the other place and considered there, or that the Government will wish to introduce something like it, to help us move this forward. I would like us to get this on to the statute book as quickly as possible but, in the light of what I have heard, with reluctance I feel I have no other choice but to divide the House on this Motion.