(3 years, 3 months ago)
Lords ChamberMy 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.
(3 years, 3 months ago)
Lords ChamberMy 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.
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?
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.
(3 years, 4 months ago)
Lords ChamberWell, 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.
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.
(3 years, 4 months ago)
Lords ChamberMy 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.
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.
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.
(3 years, 5 months ago)
Lords ChamberI note the points around that consultation, but 66% of local authorities that responded to the 2019 consultation were in favour of introducing a new criminal offence for those who reside on unauthorised encampments, and 94% supported one or more of the proposed amendments in the Bill under consideration.
Research published by the FFT in January 2021 found that there were only 59 permanent and 42 transit pitches available across England. In response to the new police and crime Bill and proposals to allow for greater enforcement against unauthorised encampments, what provisions are being made to provide authorised sites for the GRT community? I am happy for the Minister to write to me if he does not have the figures to hand.
My Lords, Part 4 of the Bill essentially seeks to make something that is a civil offence into a criminal offence. It is based on a similar change in law undertaken in the Republic of Ireland some years ago. I will write to the right reverend Prelate with the specific figures, but looking at transit site provision in addition to the 356 transit pitches that exist will be part of the upcoming cross-Whitehall GRT strategy.
(3 years, 5 months ago)
Lords ChamberMy Lords, I draw the attention of the House to my relevant registered interest as a vice-president of the Local Government Association, the chair of the Heart of Medway Housing Association and a non-executive director of MHS Homes Ltd. In moving Motion A1, I will address all the Motions before the House today.
It is disappointing that the Government have over- turned the amendment passed by this House. The intent of our amendment was to make progress in implementing the recommendations made in the first phase of the Grenfell Tower inquiry. Our frustration, along with the frustration felt by many, has been that since the recommendations made in the first phase were published, progress has been extremely and annoyingly slow. Being told by the Government that in most cases we do not need legislation to make progress is in some ways even more frustrating because nothing has happened, which is again very odd. This is the first piece of legislation we have seen that will bring anything into force. Frankly, the victims and their families deserve better. People living in properties that are unsafe or blighted deserve better than that.
This led me to propose Motion A1, which proposes to insert a new clause into the Bill. What my amendment seeks to do is accept the Government intention to take action but to add some rigour and rigidity to the proposals with clear timescales for action. As I have said previously, this has all been too slow with no clarity about what the timescales are for action through primary legislation and through secondary legislation and guidance.
This morning I received a letter from the noble Lord, Lord Greenhalgh, which seeks to add some clarity to the timescales for action, and that is welcome. We also have the Government’s response to the consultation, which is helpful. It looks as if we are finally making some progress and I welcome that. It would be good to hear him, when he responds to the debate, set out the timescales for the actions the Government are proposing, and I look forward to that. That will be part of the official record of the House and the Government will be held accountable for the pledges that they make today.
In respect of Motion B, while I accept that the Commons can assert financial privilege and the need not to give any other reason, we must consider the subject of the amendment that was rejected and the circumstances that have led to this Bill, as well as the intention behind the amendment that the other place has rejected. We would have hoped to have got a little more than the assertion of financial privilege. This is about fire safety and reassurance for residents that the register is up to date, that it can be relied on and that it is publicly available and transparent so that sunlight on fire risk assessments will provide more reassurance. I hope that when the noble Lord responds to Motion A, he will provide a bit more clarity than just relying on financial privilege as expressed by the other place.
Motion C1, tabled by the right reverend Prelate the Bishop of St Albans, seeks to add to the Bill Amendments 4B, 4C, 4D and 4E. They would prohibit the owner of a building from passing on the costs of annual remedial works attributable to the requirements of the Act to leaseholders or tenants, except where the leaseholder is also the owner of the building. The amendments under the Motion tabled by the right reverend Prelate have my full support, and the Labour Benches will support him if he decides to divide the House. I hope very much that he will do so.
Leaseholders are victims and have done nothing wrong. They deserve to be treated much better than they have been by the Government. They have done everything right. They have bought their properties and are paying their mortgages. Now they are being penalised for the failure of others. Surely that cannot be right. The fact that their buildings have been covered in dangerous cladding has made their flats worthless. They cannot sell their properties, but they are still expected to pay their mortgages and other charges. They cannot get work done; they may be paying for a waking watch and in some cases the properties will have guarantees on them which need to be drawn down. There will be warranties for work done which need to be used. They have been paid for, otherwise they are literally not worth the paper they are written on.
We should all stand up to support leaseholders and tenants and get those who have done the work to accept their responsibility and put this right. The Government are failing leaseholders and tenants. Their actions are just not good enough and fall far short of what they promised.
I want to be clear. For the individual builder, contractor, company, warranty provider or insurance company, it cannot be right for people to wriggle out of their responsibilities. The Government need to take firm action. Supporting the Motions and amendments before the House today will be an opportunity to ask the Government to think again, and I hope we take it. I beg to move.
My Lords, I speak to Motion C1 and Amendments 4B to 4E. I give notice of my intention to seek the opinion of the House when the time comes. I declare my interest in the register in that I, too, am a vice-president of the Local Government Association.
I first thank the honourable Members for Stevenage and for Southampton, Itchen, who originally prepared these amendments, as well as the signatories from all parties when they were tabled in the Commons. I also thank the right reverend Prelate the Bishop of London, who joins me in supporting it, and pay tribute to one of our colleagues, the Bishop of Kensington, who has worked very closely on the ground with victims of Grenfell and leaseholders.
Grenfell was an unmitigated tragedy brought about, it would seem, by institutional failings on multiple levels. The recent revelation that the cladding provider knew that it could result in tragedy and death is nothing short of a disgrace. It has been a tragedy for many lives: ordinary families have been ripped apart by this terrible event.
The Bill will deal with the problem of dangerous cladding by creating a quick and easy mechanism to force freeholders to remove dangerous cladding and other fire safety defects. That is undoubtedly a good thing and will, hopefully, protect against future tragedies, but I share the disappointment of the noble Lord, Lord Kennedy, that Her Majesty’s Government have not sought to address the severe adverse financial consequences that the Bill will create for leaseholders. In the Bill’s current form, whenever the fire service serves notice to the freeholder requiring remedial work to be undertaken, the freeholder will be able to force leaseholders to reimburse all the costs incurred. These costs are staggering.
At this point, I say that our hearts go out—I am sure we all share this—to all the people who are struggling. I have been inundated with emails, tweets and people contacting me who are at their wit’s end looking at what is likely to unfold in the next few weeks. Far from the Government’s estimated remedial costs of around £9,000 per leaseholder, depending on the terms of the lease and the work involved, a leaseholder could very easily be handed a bill of £50,000, payable within weeks.
Inside Housing conducted its own private survey of 1,342 leaseholders. Its findings reveal a very different picture to that of Her Majesty’s Government. Among those surveyed, 63% of respondents faced a total bill above £30,000 for remedial costs and 15% faced a bill of more than £100,000. Of course, a few of these lease- holders may be well off, some will have disposable income, but most will not: 60% had a household income of less than £50,000, with only 8.7% reporting a household income of more than £100,000. In other words, this will primarily affect ordinary middle to working-class people.
In addition, 56.4% of those surveyed were first-time buyers. They have followed that life trajectory that many Conservative Governments have sought to promote by working hard, saving and purchasing a property. These are people with aspirations—something I totally support—yet nearly everything they have worked hard towards, over many years, could be taken away from them, as shown by the alarming 17.2% of respondents who say that they are already exploring bankruptcy options. I must remind the House that the costs mentioned above include only the remedial costs; they say nothing about the interim fire safety costs that leaseholders already incur.
At end insert “and do propose Amendments 4B, 4C, 4D and 4E in lieu—
My Lords, the rules are such that I am not allowed to make a speech. However, so that the other place can consider the very full reasons that the Minister gave, it is right and our duty to test the mind of the House. I beg to move.
(3 years, 9 months ago)
Lords ChamberMy Lords, there is no greater champion of the role of sport, leisure and recreation in place-making. I point out that the towns fund guidance provides the envelope upon which towns can prioritise leisure facilities. As a department, we hope to see many towns come forward, building in leisure facilities, parks and green spaces, cycle lanes and a myriad of sports activities within their bids.
My Lords, I am also delighted that the Government have set up the towns fund, which will make a significant contribution to many poorer communities. Nevertheless, it still remains that the Public Accounts Committee has expressed concerns about why some towns were chosen and some were not. In future, will Her Majesty’s Government undertake to publish the objective criteria and evidence that will be used for selection so that everyone can be assured that there is no political influence in making these selections and choices?
In my answer to the previous question, I made it clear that this is a combination of using an evidence-based methodology and Ministers using their local knowledge. That benefited 101 towns in the first instance. There is more money to be spent on regeneration, but the foundation stone of the allocation of funds was using a clear methodology with multiple criteria, including productivity and exposure to economic shocks.
(3 years, 9 months ago)
Lords ChamberMy Lords, I made clear in response to the noble Lord, Lord Best, that we can raise standards while continuing the drive for the numbers of homes, of all types and tenures, that this country so badly needs. However, we have to wait to have time to respond to the ongoing consultation.
My Lords, with regions such as the north-west, the north-east and Yorkshire hosting less than one disabled-access home for every 100 homes, and regions such as the West Midlands hosting just over one disabled-access home for every 300 homes, given that 15.2% of the population is elderly and 18% of the population is disabled, is it now time that the Government mandated targets for disabled-access homes rather than simply relying on local authorities?
My Lords, I am afraid I am the wrong person to answer that. I spent 20 years in local government and have every confidence that local councils know the needs of their communities, and can respond to them in a way that ensures we see the drive for standards and improved accessibility needed in our homes.
(3 years, 10 months ago)
Lords ChamberMy Lords, another fellow former council leader raises a very important point. It is reliant on the market and developers to step forward and build the homes that this country needs, and that is taken on board by this Government.
My Lords, the ambition of the White Paper Planning for the Future, to streamline planning permission and impose building targets on local authorities fails to address the existing slow build-out rate that occurs once planning permission has been granted. Will the Government add provisions to ensure that local authorities have adequate scope to alter centralised algorithmic targets in accordance with local supply capabilities and build-out rates?
My Lords, we had a far stricter central approach under the old unitary development plan in the first decade of this year. We then had the era of local plans without any central holding to account. This is a balanced approach to ensure that the country gets the homes it needs.
(3 years, 11 months ago)
Lords ChamberMy Lords, there is a strong case for reform of a system that was first put into place some seven decades ago with the Town and Country Planning Act 1947. The focus is on ensuring a much more map-based system towards local plans and engaging with communities to work out whether those developments should take place. In that sense, the development community will follow.
My Lords, the latest English housing survey reveals that only 9% of our housing stock has key disability accessibility features. Disability in old age is frequent, and with the ONS estimating that one in four people will be aged 65 or over by 2050 it is vital that we cater for what we are going to need. Although the recently announced government consultation into this issue is welcome, can the Minister confirm that prior to any changes in planning law, the recommendations of this consultation will be fully implemented to ensure that the vulnerable are not left behind?
My Lords, I can assure the House that we will consider the needs of all residents, including the vulnerable and the disabled, in ensuring that we have the high-quality design and the beautiful and healthy places that they need.