Oral Answers to Questions
Debate between Lord Foster of Bath and Graham P Jones
Mr Foster
My hon. Friend is right. Notwithstanding the excellent work of communities in Ripon and Bentham and their Portas town teams, it is a frustrating and challenging issue. In some cases, the right to reclaim land will help, but local councils are best placed to compile a public register of high street landlords. Spurred on by him, I will now consider how we can give still further assistance.
Graham Jones (Hyndburn) (Lab)
My local Labour council is working exceedingly hard to tackle some of the 2,500 empty properties in Hyndburn and also those in Rossendale. Does the Minister think that the introduction of a decent housing standard would make those properties more attractive to people to rent, rather than the dilapidated state that some are in at the moment?
Selective Licensing of Landlords
Debate between Lord Foster of Bath and Graham P Jones(11 years, 4 months ago)
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The Parliamentary Under-Secretary of State for Communities and Local Government (Mr Don Foster)
It is a pleasure to serve under your chairmanship, Mr Hollobone. I congratulate the hon. Member for Hyndburn (Graham Jones). He is a passionate advocate for this important issue and I am genuinely grateful to him for raising it. As I will say in a moment, this is our second time discussing these issues in a relatively short time.
As the hon. Gentleman knows, the private rented sector is an important part of our housing market. Some 3.8 million households live in the sector, which has seen a huge increase from including 9% of all households in 1988 to about 17% now. The Government actively support that growth. Our “build to rent” fund will support new high-quality, large-scale development for private rent. Notwithstanding the problems he raises, most private sector tenants are happy with their home and the services they receive: the English housing survey found that 84% were satisfied with their accommodation, compared with 77% of local authority tenants. The average tenancy has extended, and now lasts for about two years; nearly 20% of tenants have lived in the same property for more than five years. Importantly, the same survey found that 91% of tenancies were ended by the tenant, rather than the landlord. It is pleasing to note that rents are stable. The latest figures from the Office for National Statistics show that over the past year rental increases were below inflation: in England, they rose by 1.3%, while in London, the figure was higher at 2.2%, but still below inflation.
I know the hon. Gentleman and many members of his party have been keen to push for a national register of landlords. The Government have rejected that proposal, not least because it would cost some £330 million over 10 years—costs that would be passed on to tenants. He rightly raised concerns about some landlords, and I am aware that a minority of landlords fail to meet their basic responsibilities: they neglect their properties and exploit their tenants by placing them in unsafe and unsuitable living conditions. We should focus our attention on them; a point he rightly raised today. Frankly, those landlords have no place in the sector and we are determined to take firm action to crack down on them, which is why earlier today we announced that £3 million of funding would be made available to support local authorities dealing with particularly acute and intractable problems caused by rogue landlords. I am sure that we will discuss access to that funding with the hon. Gentleman.
We have been concerned in particular about beds in sheds—the extreme manifestation of rogue landlord problems. Backed by £2.6 million of Government funding, more than 500 illegally rented outbuildings and overcrowded homes have been discovered. Just this morning, a successful raid was carried out in Hillingdon, where two sheds were found to be being used as illegal accommodation, two of the occupants of which were found to be illegal immigrants and were detained by the police.
I know that many properties in the hon. Gentleman’s constituency are old, frequently in poor condition and, as he said, expensive to heat. Such homes can be less desirable than more modern buildings, and therefore more difficult to rent out, so the properties stand empty for long periods, blighting the local area. Of course, where a property is in a dangerous state of disrepair and there is a risk of harm to the occupants, the local authority should make use of the powers under the 2004 Act to take enforcement action. I discussed that with the hon. Gentleman when we met last month. In some areas, where demand is low, landlords need support to improve empty homes and bring them up to modern standards, which is why my Department gave a grant of £9.4 million to the Pennine partnership, which includes his constituency, to help refurbish and bring empty properties back into use. Hyndburn borough council received a £3.8 million share of that grant to develop the Woodnook neighbourhood, which will be complemented by a loan of £2.5 million from round 1 of the Get Britain Building fund.
Graham Jones
I want to put it on record that the meeting we had a month ago was very constructive. I acknowledge that £3.8 million has come to the Hyndburn area for some 200 properties. My wider point is that we have 3,000 empties and 4,000 to 4,500 rental properties; the empties are largely part of the rental market. There is a much bigger problem, for which selective licensing would have a broader reach with a broader brush, but I appreciate that we are dealing with 200 properties through the scheme that the Minister mentioned.
Mr Foster
I know what the hon. Gentleman is going to say.
We have also given local authorities the power to increase council tax for such properties by 150% after two years. Let me just say to the hon. Gentleman—[Interruption.] I will let him intervene, and I will then answer the question I know he is going to ask.
Graham Jones
I think the Minister knows what I will say—he is correct in saying that. I hope that I represent the hon. Member for Pendle in saying this, because it affects us both. We are in a unique position in that our areas are not in a unitary authority, so the rise in council tax cannot be put back into dealing with empty properties because it all goes to the shire authority, to be spent on other services. That is a problem that we face in local government structures, so although the measure is welcome, it is not helpful on the ground.
Mr Foster
May I just say—as I was going to, because I knew that that was the matter that the hon. Gentleman would raise—that the measure puts pressure on landlords to take action to get properties back into use, even if the extra money from the council tax does not go directly into the local council? It is, therefore, an important measure, in that it puts additional pressure on landlords.
The hon. Gentleman has rightly acknowledged that local authorities have a range of powers with which to tackle problems with poor housing, of which selective licensing is just one. He also rightly said that, at the moment, selective licensing can be introduced only when a local authority is able to demonstrate that a particular area suffers from low housing demand or has a significant and persistent problem with antisocial behaviour. Selective licensing is not, of course, the only solution. It is important to remember that local authorities have other options open to them. One such option, which we strongly support, is to introduce a voluntary licensing scheme for landlords, which can, and does, help to raise standards across the board. My hon. Friend the Member for Pendle (Andrew Stephenson) referred to one such successful scheme in his constituency.
The hon. Gentleman suggested that the criteria for selective licensing should be made more flexible, by way of an additional criterion enabling it to be introduced when a local authority has general concerns about the quality of housing. Given that other enforcement powers are available, I am not yet—and the hon. Gentleman should note that I stress that word—convinced that that is necessary, but I am aware that there is little information about the use or impact of landlord licensing, whether selective or voluntary.
Graham Jones
Although the Minister and I have always had a constructive dialogue and share a similar thought process on the matter, we diverge slightly on this point because I believe that there is a role for selective licensing.
Regarding the two schemes, the housing health and safety rating system is run from within the revenue grant of a local authority—I have stated Hyndburn’s position—and the inspectors involved in landlord licensing cannot inspect for that scheme because it is a separate stand-alone one. There is a bilateral system, with two schemes being run in parallel, and there is a case for arguing that they come together.
Mr Foster
I note the hon. Gentleman’s point. I remind him that because the Government have removed much of the ring-fencing from local government funding, it is for local government itself to decide how to make use of the funding.
May I now be positive? I recognise that perhaps we do not have enough information about the impact of licensing schemes, and I have, therefore, asked my officials to gather information over the summer on how the schemes are used and on the impact they have locally, and I hope that the hon. Gentleman will be willing to contribute information that will help us in our consideration. Although there are no immediate plans to review the legislation, we are keen to ensure that local authorities are able to use it proportionately and effectively. The information gathered on how existing licensing schemes work in practice will be used to inform an update of the current guidance for local authorities on selective licensing.
I am grateful to the hon. Gentleman for raising this issue. It is important that local authorities have the right tools to manage housing in their area as effectively as possible, while not putting undue burdens on landlords who already provide a good service. I hope that the hon. Gentleman will recognise that I seek to be as helpful as possible. We need more information before any further decisions can be taken, and I hope that he will participate by providing information that will help us.
Graham Jones
I want to place it on record that the Minister is trying to be as helpful as he possibly can, but I would like to see the Government go further and faster, and a visit to some of the worst areas might accelerate their thinking on the issue.
Mr Foster
I am grateful for the invitation to visit the hon. Gentleman’s constituency, and if the opportunity arises I will certainly do so. I should say, however, that I have recently made visits around the country, not least to look at empty homes—we are determined to do as much as we can to help bring them back into use—and I have had the opportunity to see areas that are very similar to the one I suspect I would find if I visited the hon. Gentleman’s constituency. Nevertheless, if I get the opportunity I will pay such a visit.
I am grateful for the hon. Gentleman’s generous remarks. We are trying to be as helpful as we can. I know that he would like us to go further, but I cannot commit to that without having more information. However, we will certainly look at the information we gather over the summer and see where it takes us.
Oral Answers to Questions
Debate between Lord Foster of Bath and Graham P Jones
Mr Foster
I am delighted to be able to tell my hon. Friend that the Department is having discussions with the National Farmers Union and with local authorities on ways of developing the scheme further. A number of neighbourhood plans have already produced some exciting ways of addressing the problem, and he can look forward to hearing further announcements on the issue in the near future.
Graham Jones (Hyndburn) (Lab)
T7. The Government talk about localism, but they still set the caps for the licensing of various shops in town centres, including bookmakers and sex shops. Will they consider abolishing those caps and allowing local people and local authorities to set the levels?
Oral Answers to Questions
Debate between Lord Foster of Bath and Graham P Jones
Graham Jones (Hyndburn) (Lab)
In a recent survey, one in four tenants reported that they had been ripped off by letting agents. Do the Government recognise that and, if so, what are they going to do about it?
The Parliamentary Under-Secretary of State for Communities and Local Government (Mr Don Foster)
I understand the hon. Gentleman’s concern. He will be aware, however, that a number of letting agents have come together to form the safe agent scheme. We urge all people using such agencies to look out for that scheme, which gives an absolute guarantee that the funds are available to provide the necessary support.
Empty Properties (Newcastle)
Debate between Lord Foster of Bath and Graham P Jones
Mr Foster
I know that the hon. Lady is listening carefully to what I am saying, and I said that we will be making an announcement in the very near future. She will therefore not have to wait long for the details that will answer her question.
As well as direct funding, we have put in place powerful incentives for all local authorities to tackle empty homes, such as the new homes bonus. Local authorities earn the same financial reward for bringing an empty home back into use as building a new one—over £8,500 for a band D property. As I said, the Newcastle area has already benefited from that and other forms of direct funding. For example, I am sure that the hon. Lady is well aware that Leazes Homes, a subsidiary of Your Homes Newcastle and a registered provider, was awarded £160,000 to bring 10 empty homes back into use. Working with the Cyrenians, a leading local charity, it will aim to help some of the most vulnerable and disadvantaged people living in Newcastle by providing opportunities for them to gain new skills and qualifications. The Cyrenians have separately been awarded £500,000 from the empty homes community fund to bring up to 25 empty homes back into use across the north-east. That is part of their Homes Life project, which aims to refurbish properties working in partnership with local authorities and estate agents.
Newcastle city council itself has been awarded £491,000 over the next two years from the clusters of empty homes fund to bring 124 empty homes back into use. The funding will be used to offer financial help to empty home owners through grants and loans towards renovation works to the empty properties. Where incentives do not work, our funding will also help to gap fund enforcement action. The local authority has committed to match the Government’s funding, taking total funding committed up to £1 million by March 2014.
However, as the hon. Lady knows, sometimes offering advice and support of the sort that I have described is not enough. Where empty properties have become dangerous or are causing a nuisance to neighbours, and the owners will not co-operate in sorting the problems out, local authorities can make use of a range of powerful enforcement tools. As she will be aware, several of the measures in the Housing Act 2004 provide such tools. For example, part 1 enables the inspection of an empty home that is falling into disrepair, and if it is found to contain serious category 1 hazards, the local authority has a duty to take action to address them. If the property owner does not comply with an improvement notice, they will be guilty of a criminal offence that carries a fine of up to £5,000. Where there is an immediate risk, the authority can take emergency remedial action and recoup the costs.
Graham Jones
The Minister will be aware that local authorities do not have a duty to inspect properties, and do so only when there is a complaint, for instance, which in practice makes it an ineffective tool. What is the Minister going to do about that? Should there be a duty on local authorities to inspect houses for category 1 and category 2 hazards, or will we remain with the current system that does not achieve what it promises?
Mr Foster
The hon. Gentleman raises an interesting point to which—let me be honest—I have not previously given any thought. Now that the point has been raised, I assure him that I will consider it and write to him subsequently.
As the hon. Member for Newcastle upon Tyne Central has said, there are a number of other measures, including empty dwellings management orders. I do not want to go into great deal about those because I think that she and I might sit down and have a lengthier dialogue about some of the issues she has raised. However, since the introduction of those orders several years ago, only 69 have been issued. She will be aware that, in her local authority area in Newcastle, not one EDMO was issued until last month when the first one was proposed.
Graham Jones
Again, I ask the Minister to look into this issue, but I think few orders were issued because the properties involved often required £30,000 or £40,000 to be spent. Under the old legislation, that had to be recovered in the seven years of the EDMO. Councils could not afford to lay out capital investment upfront, and they had no expectation of recovery, especially in cluster areas where there was no market demand for the properties involved.
Mr Foster
On this occasion I do not need to go away and think about the hon. Gentleman’s point, and if he was listening to my earlier comments he will have heard me mention a number of funding streams that we have made available to ensure opportunities for the provision of support to bring properties back into use more quickly. One reason we changed the arrangements from six months to two years, as the hon. Lady said, is that we believe that provides the right balance between enforcement and the opportunity to work with owners and the available funding to bring properties back into use, without ultimately using the serious sanction of the order.
Time is short and I want to pick up on a couple of points raised by the hon. Lady. She raised the issue of houses in multiple occupation, and suggested that, in certain circumstances, people have received planning permission to convert a property—largely such properties have three or more storeys and five or more people—into an HMO. At times, however, that property is no longer used for multiple occupation and could be used for a family, but that does not happen because people are afraid of losing the planning permission if they subsequently wish to convert the house back into an HMO. I have had a very brief conversation with officials about that situation, but I clearly need to have more detailed conversations. That might not be the problem that the hon. Lady describes, but I give her an undertaking to look at the issue. If necessary, we will have further dialogue, but I certainly commit to writing to her.
We believe that article 4 directions and licensing are a powerful tool. The hon. Gentleman will be aware that article 4 directions and licensing can be used either for an area or for parts of it. The important point is that local councils have the opportunity to make the decisions that best suit their circumstances.
Graham Jones
I am grateful to the Minister for giving me the opportunity to make the point. The Minister’s assessment is right but, putting aside many other problems with licensing, there are no qualitative standards in licensing. It is about low demand and antisocial behaviour. It is not about individual properties, but about a neighbourhood. It therefore does not tackle the problem that my hon. Friend the Member for Newcastle upon Tyne Central (Chi Onwurah) has described.
Mr Foster
Another point to which it is worth drawing the House’s attention is on the valuable work of a number of housing associations that work to address a wide range of problems—they do not just let and manage properties.
The behaviour of letting agents was touched on. There are procedures to bring concerns about the behaviour of letting agents to the attention of relevant bodies within local authorities, but I recommend that people ensure they go with an agency that is in a safe letting scheme.
I thank the hon. Lady for introducing this important debate. As I said, I will continue to work with her. I share her passion for getting empty properties back into use. That will provide much needed additional houses, but it can also remove the blight on communities that, sadly, currently exists. I congratulate her on securing this debate.
Question put and agreed to.