Housing: Private Renters

Debate between Lord Greenhalgh and Baroness Watkins of Tavistock

Wednesday 22nd June 2022 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, I suppose I should always be very careful about giving data. In response in the other place, the Minister—who was driving forward with the 12-point plan—made it clear that we are seeing as many landlords leaving the sector as we are seeing entering the sector. I will go back and find the data that underpinned my remarks in the debate we had earlier this week.

[Baroness Watkins of Tavistock (CB)]

My Lords, does the Minister agree that part of the problem with the private rental sector is that many people in it would rather be in social housing at a fair rent, and that, because of a shortage in that housing, private landlords are often able to exploit some of the most vulnerable in our society? What could we do about that in the future, to increase social rented?

[Lord Greenhalgh (Con)]

My Lords, it is important to recognise the balance of having more tenants who cannot afford renting in the private sector having social or affordable homes. That is why we have an £11.5 billion Affordable Homes Programme, and we are seeking to double the amount of social rented homes that we build to 32,000, because clearly, the housing benefit bill has been growing astronomically and we need to contain that over time.

Social Homes for Rent

Debate between Lord Greenhalgh and Baroness Watkins of Tavistock

Thursday 26th May 2022 Lords Chamber

[Lord Greenhalgh (Con)]

We do recognise that we have an ageing society, which is why a chunk of the £11.5 billion affordable homes programme will go towards subsidising housing for the elderly. We recognise in our planning policies that areas need to do their bit to house people, and also to enable people to remain in their homes if that is what they choose to do.

[Baroness Watkins of Tavistock (CB)]

My Lords, the promotion of shared ownership homes has helped some people get on to the housing ladder. However, the terms of resale are onerous, particularly for those who wish to move swiftly for new work. Some families default on the mortgage element of their shared ownership, which is likely to increase as a result of increased mortgage costs. Does the Minister agree that, if housing associations are expected to buy back such flats and houses in these circumstances, they could be put back into the social home rental market quickly?

[Lord Greenhalgh (Con)]

I recognise that there are issues with shared ownership tenure. One of the problems has been that many shared owners own only a small amount of the equity and are often faced with heavy remediation costs. I certainly take that point on board, and we should allow flexibility, where it makes sense, to shift from shared ownership into social housing. I shall take that point away and discuss it with my officials.

Building Safety Bill

Debate between Lord Greenhalgh and Baroness Watkins of Tavistock

Committee stage
Monday 28th February 2022 Grand Committee

[The Deputy Chairman of Committees (Baroness Watkins of Tavistock) (CB)]

The question is that Amendments 79 to 81 be agreed to.

[Lord Greenhalgh (Con)]

I am sorry. Those amendments are not government amendments. Will they go in Hansard?

[The Deputy Chairman of Committees (Baroness Watkins of Tavistock)]

Do not worry. They will not because Hansard will cover your back and my back. I have been told that this is the most complicated thing that has been done in Grand Committee for years, so I think we have to accept it if I have made a mistake. I thought they were government amendments.

Building Safety Defects: Costs

Debate between Lord Greenhalgh and Baroness Watkins of Tavistock

Monday 18th October 2021 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, we have a new Secretary of State who is putting his fresh eyes on this. We recognise that the developers that put up these shoddy buildings need to pay. Indeed, we may need to look at other people—the cladding manufacturers may also need to contribute to this—because we want to do whatever it takes to ensure that leaseholders are protected as far as is practicable.

[Baroness Watkins of Tavistock (CB)]

My Lords, I declare my interests as outlined in the register. It is intended that there will be a new regime for shared ownership in terms of liability for new leaseholders. However, currently, many leaseholders who own only a quarter of their properties are being expected to recompense the costs for 100%. Can the Minister tell me what the Government intend to do about this? If he cannot, will he write to me, because there is considerable mental anguish among many shared owners—the majority of whom are essential public sector workers such as paramedics, teachers and nurses?

[Lord Greenhalgh (Con)]

My Lords, I recognise the plight that leaseholders in social housing face, particularly those who are shared owners and have only a proportion of the equity. We made it part of our approach to funding for unsafe cladding beyond aluminium composite material that those costs are borne by the registered social landlords if they are not able to recoup the money from developers. We will continue to urge that these people are protected wherever possible.

Homeowners: Cladding-related Costs

Debate between Lord Greenhalgh and Baroness Watkins of Tavistock

Thursday 24th June 2021 Lords Chamber

[Lord Greenhalgh (Con)]

Although the registration closed for the initial tranche of £1 billion, we have announced a further £3.5 billion. There is a process of registration for further amounts of money available. If the noble Lord’s building qualifies, he would be eligible for government funding and would be able to register. Further details will be announced in due course.

[Baroness Watkins of Tavistock (CB)]

My Lords, this Government and previous Governments have encouraged essential workers to buy into shared ownership schemes. In the last week, various newspapers have reported that some shared owners who own as little as a quarter of the flat in which they live are receiving demands for up to £100,000. This includes teachers, nurses and laboratory technicians. Will the Minister please outline how the Government intend to work with housing associations to resolve this issue swiftly?

[Lord Greenhalgh (Con)]

My Lords, there was media coverage of a medium-rise building where leaseholders and shared owners were facing demands of around £100,000. I was struck by that, not least because the building in question did not have unsafe cladding. There we have a medium-rise building without unsafe cladding, but with some building safety defects that refer to compartmentation. Talk about levying bills of £100,000 seems to be disproportionate, so I have met in that case with the housing association and talked it through with my officials, to encourage them to find a more proportionate approach to keep people safe in these sorts of buildings.

Non-Domestic Rating (Lists) (No. 2) Bill

Debate between Lord Greenhalgh and Baroness Watkins of Tavistock

Committee stage & Committee: 1st sitting (Hansard) & Committee: 1st sitting (Hansard): House of Lords
Thursday 4th February 2021 Grand Committee

[The Minister of State, Home Office and Ministry of Housing, Communities and Local Government (Lord Greenhalgh) (Con)]

My Lords, I first point out my residential and commercial property interests as set out in the register.

I am grateful to the noble Lord, Lord Kennedy, for raising the points highlighted by his proposed new clause. The business rates system is unusual among taxes because its implementation is split between the Valuation Office Agency, which is an agency of HMRC, and local authorities. Many noble Lords have, like myself, experience of working in local government and know and understand how important the relationship is between the VOA, local authorities and my department in running the business rates system.

As the Committee would expect, one of the issues raised in our discussions with local government has been how revaluations impact on local government funding, so I am grateful to the noble Baronesses, Lady Pinnock and Lady Thornhill, for tabling their amendment on that subject.

In relation to the provisions of this Bill, we have worked closely with the VOA to ensure that a revaluation in 2023 can be delivered on time. The antecedent valuation date of 1 April 2021 was set by a statutory instrument laid on 6 August last year, since when the VOA has been preparing for the revaluation. It has already started to collect the information it needs to value 2 million properties and is on target to complete the exercise to plan.

As I discussed at Second Reading, Clause 1 also moves back the latest date by when the draft rating list must be published before the revaluation to no later than the preceding 31 December. In practice, we expect this to be around the time of the autumn fiscal event, when the multiplier and the transitional relief scheme are also announced. That will mean that rating lists will come to local government a little later than previous revaluations, but we do not expect this to mean any delays in the process of billing or estimating business rates income.

Local government of course needs the multipliers and details of relief schemes before it can calculate liabilities, and it is only once that full package is confirmed that bills can be issued. That is the case whether we are in the year of a revaluation or not. Nevertheless, I can assure my noble friend Lord Bourne and the Committee that my officials meet representatives of local government regularly and will continue to discuss these matters with them to ensure the smooth delivery of business rates bills.

More generally, my department and the VOA are continuously looking at how we can improve consultation and closer working with local government. In recent years the VOA has introduced a data gateway under which it is able to share information about ratepayers with local authorities in order to support the billing process, and last year we made regulations empowering local authorities to provide the VOA with information on a quarterly basis about the properties that ratepayers occupy. This was introduced with the support of local government and will ensure that the VOA has up-to-date information ahead of 1 April 2021, which is the intended valuation date for the 2023 revaluation.

One specific matter we have discussed with local government is how to reflect in the local government finance system the changes in business rates income at revaluation—and I recognise that this is the matter on which the noble Baronesses, Lady Pinnock and Lady Thornhill, seek reassurance through their amendment. The purpose of the revaluation is to ensure that business rates bills reflect the up-to-date rental value of properties.

This of course means that some ratepayers will see increases and some will see reductions as a result of the revaluation, and it follows that the business rates income for individual local authorities will fluctuate in the same way. Some local authorities will see their business rates income rise at the revaluation and others will see it fall. Between revaluations, local authorities can increase their business rates income by supporting growth and investing in their area. Their share of this type of growth is retained by them through the rates retention scheme.

In contrast, the changes we see in local authority income levels at the revaluation come mainly from the trends and variations in the wider national economy and the commercial property market. These factors are largely outside the control of individual local authorities and the Government’s view is that such changes in business rates income levels at the revaluation should not feed through into local government budgets.

Therefore, our intention—as it was at the previous revaluation in 2017—is that we will, as far as is practicable, ensure that retained rates income for individual local authorities under the business rates retention scheme is unaffected by the 2023 revaluation. For the 2017 revaluation we achieved this by adjusting the tariffs and top-ups in the scheme to reflect the change in income at the revaluation. We consulted local government on the mechanics of these adjustments from as early as the preceding summer. This was a collaborative process and one which we intend to repeat for the 2023 revaluation. This process will give local authorities the budget assurances they need regarding revaluation. As such, the timing of the revaluation and how it affects the distribution of business rates income should not impact directly on local government finances.

I hope, therefore, that I have reassured the Committee on the degree to which my department and the VOA work closely together and in partnership with local government on business rates matters, and on the steps we will take to protect local government finances at the time of the revaluation. These working relationships are important, and we are indebted to those in local government who offer their time and expertise to support us in running and improving the rating system.

I hope that, with these assurances, the noble Lord, Lord Kennedy, and the noble Baronesses, Lady Pinnock and Lady Thornhill, will agree not to press their amendments.

[The Deputy Chairman of Committees (Baroness Watkins of Tavistock) (CB)]

I have received no requests to speak after the Minister, so I call the noble Lord, Lord Kennedy of Southwark.