Housing: Flats
Debate between Lord Faulkner of Worcester and Baroness Hanham
Baroness Hanham
May I get back to the noble Baroness in due course? I will have to find out whether that has been undertaken.
Managing agents, as I say, are put forward by the freeholder. The leaseholders have some rights if they consider that they property is not being properly managed, and can go to the leasehold valuation tribunal about that or begin to think about taking over the right to manage the property for themselves, which would mean that they were then fully in charge.
Service charges are an issue. All sorts of issues have been raised today about the protection of money and service charges, how much they are and what is involved with them. Again, I am afraid that that is a matter for the leaseholders to watch carefully. It is important that what the managing agents do and the costs that they put forward are transparent, and that the leaseholders have a number of rights. They can and must ask for a summary of service charges, and those charges should be consulted upon. They must be able to see the supporting documentation. They have a right to see insurance documents and the right to have a management audit carried out, albeit at their own expense. So they have some control over the service charges, although I think my noble friend Lady Miller mentioned capital charges and the fact that some people had not understood that they were going to come in.
There are two codes of practice, one from the Association of Retirement Housing Managers, mentioned by the noble Baroness, Lady Greengross, and one from the Royal Institute of Chartered Surveyors, which I think the noble Lord, Lord McKenzie, mentioned. These pay particular attention to the disclosure of commissions. Although the issue has not been entirely raised today, there have been concerns about the commissions taken on insurance. There are good codes of practice that ought to be adhered to. The Association of Retirement Housing Managers code is in the process of being reviewed—we expect that to come off quite soon—and we hope that RICS will also look at that issue and revise what it says.
The noble Baroness, Lady Gardner, and other noble Lords raised two or three other points. I shall comment briefly on commonhold, something that I remember debating with the noble Baroness, Lady Maddock, in 2002 when we were, it is fair to say, vigorously opposed and saw all sorts of pitfalls coming up. Those pitfalls are still there but we could make it easier for a leasehold property to be changed to commonhold. This would now be a matter for the Lord Chancellor, which slips it away from me, and the Secretary of State for Justice. They will be required to have a look at it, and I am sure that we will refer them to this debate so that they will know what has been said about it.
The noble Lord, Lord Best, and the noble Baroness, Lady Greengross, raised the question of exit fees. We could not possibly comment on the practice of any particular company, but we are well aware that these are causing practical issues and great distress. The Office of Fair Trading, as the noble Lord, Lord Best, said, has been considering whether the exit fees might breach the unfair terms in consumer contracts, and if they do indeed constitute a breach, the OFT can take action and can take such companies to court.
I have been advised by the Whip at my right hand that I have truly run out of time. The only point that I have not covered is that on the ombudsman, which the noble Lord, Lord Best, raised. May I write to him about that, since I do not now have time? I have a note of it. I shall also write regarding the red-tape challenge.
There has been too much in this debate for me to go into as much detail in my response as I would have liked. We will scour Hansard and, if we have missed anything, I will write to noble Lords who have taken part. I thank everyone for their contribution on this extremely important subject, and I assure noble Lords that I will draw the Housing Minister’s attention to this debate and the concerns that have been raised.
The Deputy Chairman of Committees (Lord Faulkner of Worcester)
The Grand Committee will adjourn during pleasure until 6.30 pm.
Localism Bill
Debate between Lord Faulkner of Worcester and Baroness Hanham
Baroness Hanham
My Lords, I will start with the points made by the noble Lord, Lord Lucas. Certainly, neighbourhood development orders will be effective within the terms of local development plans. These plans will designate areas for development. Although a neighbourhood development order will be able to point to where the community feels it would be appropriate to have development, it can do that only if it coincides with the local development plan. Therefore, it can grant planning permission only where it is doing that in accordance with what has already been agreed. There are also safeguards in place to ensure that proposals contribute to the delivery of sustainable development. We do not expect communities to plan for an unsustainable future. As my noble friend said, with mega-developments the money will not go directly to the community but will go through CIL, as we have discussed. That will be the charge on the development. The community then will get a proportion of that to help with whatever it is deemed to require.
Neighbourhood development orders have to be in general conformity with the strategic policies of the development plan and with national planning policies. We discussed that earlier. We want to make it clear in the Bill that neighbourhood development orders are very flexible. They can permit different types and classes of development. For example—I was asked a question on this—a community could decide that it wants to use neighbourhood development orders to give full or outline planning permission for a specific development scheme, for several types of development schemes across a wider area or to extend permitted development rights more generally across the neighbourhood area. However, that has to be done within the plans that it has already put forward and agreed with the council and the community through the referendum. Legally, a neighbourhood development order can grant planning permission under the terms. A development order can only grant planning permission for development specified in the order and could still permit a whole class of development, for example a change of use.
The Bill’s provisions seek to ensure that a neighbourhood development order cannot grant planning permission for a development that already has planning permission. I think that that makes sense. If a planning authority has already given permission for a development on a site, for example, that planning is already in place and it cannot consequently be changed unless the applicant makes changes to the plans, which then would need to be dealt with in the neighbourhood order.
I have already said that the community will decide whether it wants to use neighbourhood development orders to give full or outline planning permission.
The test of general conformity with strategic policies in the local development plan currently in place in the area covers what I said. I was asked whether the local development plan has to be conformed with, and we have said yes several times.
The noble Lord, Lord Berkeley, made a short contribution about developers buying off the community. There are crucial safeguards in place to ensure that proposals contribute and are kept within the confines of regulations.
I think that that more or less addresses the questions that I was asked. I will also have to move two government amendments: Amendments 148ZA and 148ZB. I wrote to noble Lords with an explanation of what the amendments do. Therefore, with the leave of the Committee, I do not propose to go into much further detail. However, I am happy to write to noble Lords on any detailed questions that they may have subsequently. I therefore beg leave to move my amendments, which I do formally.
The Deputy Chairman of Committees (Lord Faulkner of Worcester)
Would the noble Baroness allow us to dispose of the existing amendment first? She can move her amendments when this one has been withdrawn.
Baroness Hanham
I ask noble Lords to withdraw the amendments that they have put forward on the basis of my responses.
Localism Bill
Debate between Lord Faulkner of Worcester and Baroness Hanham
The Deputy Chairman of Committees (Lord Faulkner of Worcester)
The Minister has not yet moved the amendment.
Baroness Hanham
My Lords, I have nearly finished. I apologise that I have been rather long. In fact, I have only another two lines to read.
The proposed amendment to Clause 85, Amendment 147E, would enable the regulations to include an appeal against compensation decisions under the community right-to-buy scheme. The amendment will strengthen the protection for property owners affected by the scheme. I beg to move.