Leasehold and Freehold Reform Bill

Lord Stunell Excerpts

2nd reading
Wednesday 27th March 2024 Lords Chamber

[Lord Stunell (LD)]

My Lords, it is a pleasure to follow the noble Lord, and I am sorry that his speech was somewhat interrupted by technological problems.

I declare an interest as a vice-president of the LGA simply because it is one of many organisations which have contributed evidence and views on the Bill. I also want to declare that I am the joint leaseholder of just one residential flat, which I occupy during my parliamentary work, and I am in the same block of construction that the noble Baroness, Lady Andrews, referred to, with exactly the same issues; I shall certainly work alongside her at later stages of the Bill. However, that will not be the central point of what I want to say. There have been some powerful contributions so far, and many of the things I want to highlight have already been properly drawn into the debate by people who have created the policies I want the Government to advocate, never mind persuading them to join with me.

Unfortunately, the Bill comes from the same stable as the levelling up Act. With that Act, all the promise was in the title; the delivery part was the problem. We have exactly the same tendency here. With the leasehold reform Bill, the promise is in the title but the delivery is not in the Bill. The Bills have other things in common. Both suffered—in this Bill’s case, it is still suffering—from a headlong rush by the Government to introduce new material into the Bill as it goes along. In many cases, as we see in the report from the Commons, it was not controversial enough for the Commons to think that it should be divided on. However, it came at such short notice that the Commons did not have the opportunity to examine whether the stuff brought in front of it was going to work. We have heard enough evidence so far today that the Government are spending an increasing amount of time chasing their tail, trying to make their legislation work. We saw that with the levelling up Act, and some of us think that, however hard they chased, they did not succeed in catching their tail on that one.

During the passage of the Building Safety Act, which I and other noble Lords spent a good deal of our time trying to steer through and improve, on all sides there was a broad level of consensus as to what should be in it. However, in many cases the Government were somewhat resistant to the sensible improvements suggested by Members on all sides of the House, including their own Back-Benchers. Some of those things have had to be put right through further amendments, both to the levelling up Bill and now to this Bill, where loopholes and omissions have come to light.

We had a hint in what the Minister said that we will have some more tail-chasing in subsequent stages of this Bill. Capping ground rents and forfeiture may be coming back to us—I hope they do. However, I hope also that they will come sufficiently soon for us to spend a reasonable amount of time examining the material the Government bring forward, so that we do not have to have follow-up Bills chasing the Government’s legislative tail.

Having said all that, I welcome the Bill before us, despite the fact that it suffers from some major flaws. They have already been spelled out by others, so I will not rehearse them. Some of the worst were set out by my noble friend Lady Thornhill earlier. Can the Minister give us some positive information about the Government’s consultation on capping ground rents and on service charges? The noble Lord, Lord Young of Cookham, rightly brought both matters into play earlier on.

There are also some missed opportunities for real reform. The regulation of property agencies is clearly right up there near the top, and the omission of flats from the creation of new leases is just absurd. Some 70% of leaseholds are flats. The biggest growing market is flat-building in inner urban areas, and all such flats are leaseholds. The problem is getting bigger; it is becoming a larger fraction of the housing market as we speak. The idea that it is not appropriate, timely or sensible to tackle that seems strange in the extreme and difficult to justify, and it certainly needs to be challenged.

I will not say that the failure to make more progress on commonhold is a mystery; the problem with commonhold is that it is broadly seen as a neat solution, but nobody has quite grappled with how you bring it into force. It is a pity that the Government are still struggling when there is so much good information available from the Law Commission and others about what needs to be done to make that happen.

The barriers to the right to manage are being tackled in the Bill. However, as the noble Baroness, Lady Andrews, pointed out, there are some serious tripwires for potential enfranchisers to get to grips with, and I am sure we will want to discuss that in more detail.

However, I want to pick up a point that my noble friend Lady Thornhill raised about the right to manage. The right to manage works well if you have managers who are tenants or leaseholders in those blocks. Therefore, if you like, it is an upper middle-class project enfranchisement. If your leaseholders are solicitors and accountants and so on, you are well made—you can do it, but surely the right to manage needs to go much further through the socioeconomic pyramid than that. This means that, to be workable, there will be not just right-to-manage projects but residential management agents who can do that work effectively on behalf of leaseholders. Surely they then have to be of good quality and integrity—in other words, regulated. I hope that the Government, in responding to the noble Lord, Lord Best, on his point about property agents, will also pick up the residential management agents question as well.

There is a deeper philosophical debate to be had about who in a mature democratic society should have the right to monopoly exploitation of the scarcity value of land. The balance of that debate has moved over the last 250 years substantially in the direction of providing better protection for the weak and minimising harm to the common good. Both are at the expense of the monopoly holders of the scarcity of land. The Government are fond of saying that Britain is world leading but in this area of policy we are world trailing. Only England and Wales, which this Parliament is responsible for, and Australia, have anything like our anachronistic leasehold system tainting the whole property market. It is time that we caught up with the rest of the pack, even if it is too much to hope that the Bill will get us somewhere near the front of it.

The Bill is just a skirmish in a much bigger battle for fair property rights and access to decent housing for all. I very much welcome that when introducing it today the Minister said that she will be ready and willing to engage with us on improving the Bill because, my goodness, it does need improving.

Private Rented Sector Ombudsman

Lord Stunell Excerpts

Thursday 18th January 2024 Lords Chamber

[Baroness Scott of Bybrook (Con)]

My Lords, of course we will, but what is important is the tenants, who sometimes do not know where to go. In my opinion and that of the department, it is important that they have one front door and that they get the services they require.

[Lord Stunell (LD)]

My Lords, can the Minister give us some idea of the timetable by which these things will come into force? In the meantime, Section 21 evictions are continuing, private tenants are at a major disadvantage and landlords are, it appears, accelerating their use of Section 21 to pre-empt the incoming legislation, so the settlement of these issues is really important. Can she give us some help on when we will actually see an ombudsman in post working and dealing with the complaints that private tenants very legitimately have?

[Baroness Scott of Bybrook (Con)]

That is a really important question with a very simple answer: we intend to have the redress available as soon as we can after the Bill receives Royal Assent. We are working on that strongly at the moment, because it is an important service for tenants.

Levelling Up

Lord Stunell Excerpts

Wednesday 22nd November 2023 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

My Lords, there are 51 cities, 935 towns and 6,000 villages in the UK, hundreds of which suffer from considerable inequalities. Although we were delighted for 55 of those places that were successful in this announcement made on Monday, they have been singled out, as before, from many other areas that have equal or more need of funding to support their economic growth, and which will be wondering whether the Government’s approach to them is more like giving up than levelling up.

However, we welcome that the Government have recognised that the Hunger Games approach they were taking to funding has failed. We believe this approach resulted in millions of pounds being spent on consultants to put bids together, and that it was actually perpetuating inequalities between areas by further lining the pockets of those who spent the most on their bids. What discussions took place with the sector about the new methodology of the allocations this time, and what account has been taken of the inflationary factors that may have impacted on their viability in the time since the bids were submitted? What does the funding simplification doctrine, quoted by the Minister in the other place on Monday, actually mean? Does this new doctrine apply across government, or just to DLUHC? If the latter, how has the sector been engaged in its creation? How quickly does the Minister expect that the pilots taking place in relation to this will be evaluated?

Compared with the devastating cuts that local authorities have suffered, these grants to just 55 local authorities feel to the rest of the sector like crumbs from the table. With authorities facing the burden of £1.6 billion of increased housing and homelessness spend and £1.125 billion just for special educational needs, and with £15 billion of cuts from their funding already and the LGA estimating that there will be a £3.5 billion shortfall this year—that may have changed slightly today, but I have not had a chance to look yet—surely, as we asked during our discussions on the now Levelling-up and Regeneration Act, it is time for a radical overhaul of local government funding.

Can the Minister comment on the National Audit Office’s report last week, which found, as did the Public Accounts Committee, that no impact assessment had been carried out on levelling-up funding and that just 7% of the first two rounds had been spent so far, with 89% still held in Whitehall? Why has DLUHC not been able to agree the necessary funding arrangements with local authorities? Can we be assured that this process will be simplified so that the money gets to where it needs to go and projects are not held up by departmental delays? What will happen next for the hundreds of projects that have been submitted and not yet funded? We believe that this is the last round of this funding.

I am sure that my noble friend Lady Ritchie will come in on this, but why have councils and people in Northern Ireland been left out of this process? Whatever is happening in Stormont, councils will want their communities held in at least an equal process with the rest of the UK.

The projects funded through this round of levelling-up funding will have been thought through, fought for and, I am sure, welcomed by the successful authorities. However, in the context of cuts to local government funding of 60p in the pound between 2010 and 2020 and a fall in real-term spending power of 27% up to this year, they are a drop in the ocean compared with assessed need. Councillors and their communities watch as their high streets decline and their budgets are torn away from universal services that touch everyone, everywhere, all the time, to the specialist demand-led services that are there only for those with the most complex needs. Our residents are still reeling from the cost of living crisis. Surely it is time for a radical devolution of powers and resources and the flexibility to take the decisions that they know will be in the best interest of their areas. Surely it is time for Labour’s plan, which will genuinely enable that and truly let people take back control.

[Lord Stunell (LD)]

My Lords, this is a sad and disappointing Statement. It is another signal that levelling up, which was the flagship policy of the last Prime Minister but one, is on its dying breath. The Statement was delivered by a junior Minister in the other place. It rehashes announcements that have already been made. It glosses over failures of process and delivery, and it trumpets success when it is in full retreat. It starts with a boast about the £13 billion allocated to the levelling-up task, which is the same £13 billion that had already been announced five times before. But it overlooks what the National Audit Office said in its report published this week: much of the money will never be spent because of the overweening departmental bureaucracy and long ministerial delays in signing off projects with sponsors.

In fairness, the Statement does contain a sort of “sorry, not sorry” section about changing the process in the future, establishing a long-overdue but non-specific “funding simplification doctrine”, of which the noble Baroness just spoke. I am sure it will be a belter when it comes, but the benefit of the new doctrine will be lost by what is perhaps the most gobsmacking piece of double-speak in the Statement. Apparently rounds 1 and 2 have gone so well that, after learning from their successes, round 3 has been cancelled. Usually, back in the real world, if a project goes really well in its first two stages, everyone is eager to get on and do the third stage—but not this time. Instead, the approval threshold for projects is to be lowered and schemes previously rejected in rounds 1 and 2 will be reconsidered. There will be no round 3 and no chance for further bids to be submitted.

The National Audit Office reports that rounds 1 and 2 generated 834 bids, but three-quarters of them were rejected. I have no doubt that there will be some very good schemes among those rejected before that fully justify their approval now. Like the noble Baroness, I welcome the announcements made, but that has been done by pumping money originally intended for round 3 bidders back into the original pool for round 1 and round 2 bidders. This clearly demonstrates that the contention of these Benches was exactly right that the overall size of the pot was always minuscule compared to the need.

That leaves some of the most deprived councils, and the smaller and less well-resourced ones, stranded. They are the ones who did not bid in earlier rounds because they could not afford to take the risk of investing time and money in a bid that had only a 1:4 chance of success. Encouraged by the July announcement that a new and simpler process was ready to come into play, they have been ready to step forward and do so, but their chance has now gone. There will be no round 3, no new bids, and no levelling up for them.

I have two questions for the Minister. Will she publish the list of local authority areas that did bid in rounds 1 and 2 but will still not benefit from any funds from any of their bids, despite the clawback of round 3 money to help? I will call that list A. It would give a good map of where the Minister thinks that levelling up is not really needed. Secondly, will she publish a list of those local authority areas from which no levelling-up bids at all have yet been received? I will call that list B. That, I fear, would give a good map of small, under- resourced local authorities that have been left stranded by the cancellation of round 3 and are left out of the picture altogether. Publishing lists A and B would be a long-overdue first step to restoring transparency and trust to what, up to now, has been an opaque and desperately underfunded bureaucratic disaster. I look forward to the Minister’s answers.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Penn) (Con)]

My Lords, I thank the noble Baroness, Lady Taylor, and the noble Lord, Lord Stunell, for their questions. I start by challenging a few of the assertions made in their responses to the Statement, particularly about underfunding and the minuscule amounts of money that have gone into this project.

Levelling up is at the heart of this Government’s mission: it has been backed with significant financing through the levelling-up funds and a number of other initiatives, and we have seen more in the Autumn Statement today. For those areas that have bid into the levelling-up fund and have been unsuccessful, it is not the end of the story: we have an agenda across government, whether through devolution, investing in skills, investment zones, freeports, or a whole number of areas where opportunities continue for areas to receive funding for projects that are important to them. On Monday, 55 projects were announced, but the total is 271, which is not an insignificant number of bids. These were across the country, representing areas that are diverse but also in need of this funding.

I also address the point around smaller, less well-resourced councils that felt unable to bid in earlier rounds. Some funding was made available for those who would struggle to put together bids to be able to participate in that process, so that is not the full picture. Also, the feedback that we received on the competitive process for rounds 1 and 2 informed the approach that we took for round 3 and informs our approach to the funding simplification doctrine, which acknowledges the valuable contribution of competitions for driving value for money and identifying the best projects for certain programmes. We will continue to deploy them where they make the most sense, but we encourage the use of allocative approaches where they can best achieve specific outcomes while minimising demands on local authorities. At the heart of that doctrine is our commitment to value for money, which will drive decision- making on the most appropriate choice of funding mechanism.

The Government have responded to the feedback they had in earlier rounds of the levelling up fund in their approach to round 3. I reject the Liberal Democrats’ proposition that the 55 projects that received funding in this round are somehow of lesser quality than projects that received funding in previous rounds. In fact, we found that a very high number of very high-quality projects had bid into this system, which allowed us to return to those projects for round 3 and make great allocations for very well-deserving projects. To reassure the noble Baroness, we touched base with local areas to ensure that those projects continue to be priorities for them and deliverable. However, having made the formal announcement, we will also recontact every single one of those successful local authorities to reconfirm that they are projects that they would like to pursue and, on the delivery point, meet a delivery timetable that is achievable given the changing circumstances.

Those changing circumstances were a factor acknowledged in the National Audit Office report. We have faced a time of high inflation, particularly for capital projects, and labour shortages. We also acknowledge some challenges in the way we ran the process in government too, so we welcome the work that the NAO has done and have taken significant action to address the points it made. I point out that the data that the NAO used in its report was cut off in March 2023 to allow it to analyse consistently across three different projects that the Government have been running. Since then, we have released a further £1.5 billion of levelling-up funding through the programme, so significant progress has been made.

We have also made changes to how the projects are run—for example, allowing greater decision-making for local authorities to flex their delivery programmes to meet the new circumstances they find themselves in. We have also made £65 million available to ensure that local authorities have the capacity to deliver the levelling up fund projects that they have successfully bid for. The Government acknowledge some of the challenges in the National Audit Office report. We have already taken steps to address some of those points and seen a significant increase in the amount of money disbursed.

Finally, on the funding simplification doctrine and what it will mean, it is a doctrine that will apply from central government to local government in its approach to levelling up. That is primarily from the Department for Levelling Up, Housing and Communities, but it applies across other departments’ delivery of and commitment to our levelling-up agenda with local authorities. We will evaluate the simplification pathfinders as quickly as possible. In all the work we are doing on these new projects and programmes, we seek to learn the lessons from them as we go along, ensuring that we have robust evaluation processes in place that allow us to continue to make these modifications and improvements as we deliver our levelling-up agenda across the whole of the United Kingdom.

Levelling-up and Regeneration Bill

Lord Stunell Excerpts

Report stage
Wednesday 13th September 2023 Lords Chamber

[The Earl of Lytton (CB)]

My Lords, I support the noble Lord, Lord Carrington, and am a signatory to this amendment. I commend him for his succinct explanation. I also have land interests and some professional familiarity with compulsory purchase.

I have very little to add, but I simply say that the use of CPO powers, and the number of bodies exercising them directly or indirectly, is expanding. It risks subsuming the interests of the individual owner from whom rights are being compulsorily wrested. Some acquiring bodies have overriding commercial objectives, possibly only indirectly aimed at the promotion of public best interest, and I think we should be aware of that. Moreover, many of the safeguards built into the processes when they were used by what I will call the traditional acquiring authorities—for instance, government agencies, local government and so on—seem no longer to be entirely honoured in spirit. That is very important, particularly as we have an expanded use of CPO powers.

The amendment is thus a natural, logical and necessary safeguard for owners who are subject to these powers. They would, inter alia, deal with the evils of entry and taking of land without concurrent payment of compensation. That arrangement leaves a claimant on the back foot in negotiations, prejudiced financially and reorganising their affairs. Failure to adhere to the principles behind this amendment suggests a material erosion of the protocols that are familiar to us under the Human Rights Act—for the reasonable enjoyment of a citizen’s property not to be deprived without due process and for the rules-based system. That is why I support this amendment.

[Lord Stunell (LD)]

My Lords, on this side we are sympathetic to the intent of the amendment from the noble Lord, Lord Carrington, although somewhat doubtful about the mechanism he has proposed. I think we all want people who are subject to compulsory purchase orders to be treated in a humane and certainly human rights-compliant way. We do not want to return to the days of Crichel Down and everything that emerged from that.

Nevertheless, I think the noble Lord, Lord Carrington, made it clear that he saw the fundamental problem being one of resources and a search for a less mechanistic way of enforcing compulsory purchase regulations. I would be interested to hear the Minister respond and, I hope, confirm that purchasing authorities will be given support to make sure that they take that process through speedily, particularly the payment of compensation, and in a timely fashion.

[Lord Thurlow (CB)]

My Lords, I declare my interests as a former chartered surveyor. The current CPO guidance attempts to deal fairly with owners who are caught up in the process of having land acquired under compulsory purchase, but it remains a blunt instrument. This amendment requires the Government to provide a duty of care, which is an excellent proposal. It is also appropriate, as we heard from the noble Earl, Lord Lytton, that compensation under CPO is paid on transfer, as it is when any citizen in this country buys or sells any of their private property. I see no reason at all why it should not also be the case under compulsory purchase. I support the amendment.

Levelling-up and Regeneration Bill

Lord Stunell Excerpts

Report stage
Wednesday 6th September 2023 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

My Lords, Amendments 193 and 194 from the noble Lord, Lord Lansley, introduce sensible additions to Schedule 7 on the content of plans. As the noble Lord, Lord Deben, reminded us on Monday, just because Ministers assume that something will happen, that is no reason for leaving it out of the Bill. One would assume that any local planning authority would include such vital matters as meeting housing need and the economic, social and environmental needs of its area in its plan, as well as identifying appropriate sites. I agree with the sentiment expressed by the noble Baroness, Lady Thornhill, in that regard. Putting this in the Bill makes sure that it happens.

The noble Lord, Lord Lansley, was right to draw attention to the distinction between strategic and non-strategic priorities, which will become ever more important as these strategic policies are considered by a potential combined authority for the joint strategic development strategies. If they are not set out clearly in plans, how will the combined authorities identify them and make sure that they take account of them in the wider plan?

Amendment 193A in the name of the noble Lord, Lord Best, goes to the heart of a huge lost opportunity in the Bill, as currently structured, to make a real difference in addressing the housing emergency we face in this country. The figures have been much debated in this Chamber, in Committee on the Bill and in many other debates on housing, but it is a scandal that over a million families are still on social rented housing registers around the UK. With the current rate of building—just 6,000 a year according to Shelter—few of those families stand a chance of ever having the secure, affordable and sustainable tenancy they need.

This problem is now exacerbated by rising mortgage interest rates resulting in many private landlords deciding to sell the properties they were renting out and their tenants coming to local authorities to seek rehoming. Commentators in the sector say that this could affect as many as one in three privately rented properties. The figures are stark. Worked examples show that rents may have to increase by at least £300 a month. For landlords and tenants also facing other elements of the cost of living crisis, this kind of increase in costs is untenable.

The amendment from the noble Lord, Lord Best, proposes that local plans should link the provision of social housing to the provision of adequate housing for those registered with the local authority. This should be a minimum. I think the noble Lord described it as a duty to be clear about the scale of the housing problem and I totally agree. As we all know only too well, the unmet need for social housing also includes many families not on those registers. We will have a later debate about the definition of “affordable housing”, but social housing in particular merits special treatment in how it is addressed by local plans. For some families, it is the only form of tenure that will ever meet their needs. We agree with the noble Lord, Lord Best, about the importance of putting social housing priorities into the planning process, so if he chooses to test the opinion of the House on this matter, he will have our support.

Government Amendment 197 is a helpful clarification that neighbourhood plans cannot supersede the local development plan in relation to either housing development or environmental outcome reports. I was very pleased to see Amendment 199 from my noble friend Lord Berkeley and the noble Lord, Lord Young. As a fortunate resident of a new town designed with the great foresight to incorporate 45 kilometres of cycleways, thanks to the vision of Eric Claxton and our other early designers, I can clearly see the importance of incorporating this infrastructure at the local plan stage.

The experience of Stevenage is that, unless the infrastructure makes it easier to cycle and walk than to jump in a car, the latter will prevail. Our cycleways are only now coming into their own and being thought of as the precious resource that they are, so the vision to include them was very much ahead of its time. It is important that careful thought is given, in all development, to the relative priorities of motor vehicles and cycling and walking.

As my noble friend Lord Berkeley outlined, this amendment is well supported by the Better Planning Coalition and the Walking and Cycling Alliance, which says that embedding cycling and walking in development plans would

“help safeguard land … that could form useful walking and cycling routes, while ensuring that new developments are well-connected to such routes, and securing developer contributions for new or improved walking and cycling provision”.

It cites examples—they were adequately quoted by my noble friend Lord Berkeley, so I will not repeat them—of how this has not been the case in the past. I agree with my noble friend that the consultation on the NPPF makes no mention of, never mind giving priority to, local cycling and walking infrastructure plans. It makes no mention at all of rights of way improvement plans.

On Monday, the noble Earl, Lord Howe, mentioned the new role for Active Travel England as a statutory consultee in planning matters, but surely this amendment would strengthen its role by ensuring that cycling and walking are considered for every development, so that it can focus on the detail of those plans.

Government Amendments 201B, 201C and 201D are very concerning. They represent sweeping powers for combined county authorities to take over the powers of local councils in relation to making and/or revising local plans. Alongside the government proposals that the representatives of local councils will have no voting rights on combined county authorities, this represents yet another huge undermining of the role of local democratically elected institutions in favour of combined county authorities, which are indirectly elected, which may have voting representatives who have no democratic mandate at all and which operate at a considerable distance from the front line of the communities that will be affected by the decisions they are making.

In the debate on Monday, the Minister said that these new powers will be used only in extremis, but one can envisage situations where they could be used for political purposes. I raise the importance of this issue from a background of long experience of plan-making in two-tier areas and the complexities that that brings. On Monday, I mentioned that it was our local MP who held up our local plan for over a year by calling it in to the Secretary of State. Would this, for example, give a CCA grounds to initiate its power grab for the planning powers? If that were the case, you could see this being a very slippery slope indeed. What discussions has the Secretary of State undertaken with the sector on these proposed powers? These powers, like so much else in the Bill, seem to move us ever further away from the devolution and agency for local people that were espoused at the introduction of the White Paper.

[Lord Stunell (LD)]

My Lords, the noble Lord, Lord Lansley, has done a tremendously good forensic job of disclosing the fact that there is an omission—possibly accidental—connecting the whole planning process as far as non-domestic strategic direction is concerned. I look forward to the Minister’s explanation for that and perhaps to her coming back with a correction at a later stage.

The Liberal Democrats will certainly support the noble Lord, Lord Best, if he puts his proposition to the House. There is no doubt at all that it is absolutely necessary to tackle the severe problem of the lack of affordability in the rented sector. It is understood clearly by all that developing the social rented sector is the way to go—this surely must be taken into account in all plan-making. The noble Lord made a valid point about those who are homeless. This is a rising number of people and there is a reluctance among many local authorities to undertake the formidable task of dealing with the circumstances that they face.

Certainly, the points made by the noble Lord, Lord Berkeley, and my noble friends Lady Randerson and Lady Pinnock about active travel are important. I await the Minister agreeing that the connection on this between policy and the NPPF, and between policy and plan-making, needs to be corrected in the direction that this amendment sets out.

--- Later in debate ---

The noble Lord, Lord Lansley, said that if the Government have a target, they must have a mechanism for delivering it. I completely agree with that. Without a clear plan for each area to meet its assessed housing need, there is little likelihood that it will happen at all.

[Lord Stunell (LD)]

As far as I understand these amendments, they are an intention to return the planning system to the time before 2022 happened—the golden age when the system worked. I must say that I was looking for some fairy dust. I will explain by going back to 2010, when an incoming coalition Government discovered that only 15%—I think it was 15%—of local authorities had an up-to-date local plan. That is when the Department for Communities and Local Government, in which I was then a junior Minister, came up with a way to encourage local planning authorities to speed-up their local plan process.

That was after a 30-year statutory requirement—it is 30 years old—that they should have such a local plan. This was essentially to let developers loose in areas where there was no up-to-date local plan. I have scars from an Adjournment debate in that place, which is a bit like a QSD at this end. As a junior Minister, I drew the always available short straw, and I was faced—or rather I was backed, because they were behind me— by 20, 30, 40, although it seemed like a thousand, angry MPs complaining that the Government were blackmailing their district council by setting developers loose. It was like Dunkirk, only there were no boats.

The coalition Government kept their nerve, and so that system endured until 22 December, I think—the dispatch date given by the noble Lord, Lord Young of Cookham. However, whether the coalition Government held their nerve, or whether, like the Conservative Government, they did not hold their nerve, the outcome was still not 300,000 homes a year. The missing ingredient for us was fairy dust. That system does not deliver 300,000 homes a year. I wish the noble Lords good luck with their amendments, and I shall be interested to see what the Government have to say, but even if passed, it will not deliver 300,000 homes a year. That seems to me to be the fundamental point. I absolutely take the analysis delivered so powerfully by the proponents of this. Unfortunately, the lever that they intend us to use for it is already deficient, and we have seen it. So, please, where is the fairy dust?

[Lord Deben (Con)]

My Lords, I refer to my registered interests, particularly that I chair a company that advises people on sustainable planning. I must say to my noble friends, with whom I very often agree, that I find this debate extremely difficult. First, this Bill should never have been in this form at all. No previous Government would have provided a long title for a Bill that means that it takes this long to go through Parliament and that, every time they think of something, they can add it to the Bill. We must be very clear about this Bill. Historically, we used to have the tightness of a title which enabled you to keep responsibly and respectably within the subject. So I start with this difficulty.

Secondly, this concentration on the numbers misses the point. Since the Government got rid of the net-zero requirement for houses, we have built over a million and a half homes that are not fit for the future. Every one of them has meant that the housebuilders have taken the profit, while the cost of putting those homes right has been left with the purchaser of the home. That is a scandal which is shared between the Government, who were foolish enough to get rid of the net-zero requirement, and the housebuilders, who knew precisely what they were doing. One of them made so much money that it offered its chief executive £140 million as a bonus. He did not get all that in the end, but that was the situation.

My problem is that in the absence of a proper policy, we are talking about the wrong thing. We should not be talking about the numbers, except to say that we need significantly more homes. We should be talking about the quality of the homes and the places where they should be. I go back to my own experience as Housing Minister. We were very interested in ensuring that we built homes on already used land. We thought it important to recreate our cities. We thought that was just as important a part of this as the numbers. At the moment, I can drive back from my local railway station and see every little village, every little town, spreading out into the countryside, homes being built on good agricultural land and homes being built which are, by their nature, the creators of commuters, as there is nowhere else for people to work.

If I may say so to my noble friend, it is no good ignoring that many district councils have a real problem with the number of places in which they can build the homes that they were asked to build. A lot are NIMBYs, and some I quite agree you would not like, but if you are faced with building homes in a council where most of the area is green belt, areas of outstanding natural beauty or historic areas, you find yourself in a huge difficulty. I agree that many of them do not try as hard as they ought to, but let us not kid ourselves as to what the local issue is—not just wanting to win that particular ward but a matter of real difficulty.

For that reason, I say to my noble friend that I am sad that in this elongated, extended, overblown Bill, we have not had time to do four things: put in the future homes requirements to raise the standards of housebuilding so that they are fit for the future; create a system whereby housebuilders should provide the resources for rebuilding the insides of many of the homes that they built over the last five or 10 years; and understand that we should reuse land and think about place-making where people are within a quarter of an hour of the resources they need. Then, we can talk about how we can have a relationship with local authorities that can build the number of houses that we need.

I intend to support the Government on this amendment because I am not prepared to be put into a position where the answer to our problems is numbers. That is not the answer. The answer is a housing policy which looks at sustainability, the ability to buy and the future, not a collection of odd clauses stuck together and added when it happens to be convenient.

Levelling-up and Regeneration Bill

Lord Stunell Excerpts

Report stage
Monday 4th September 2023 Lords Chamber

On 6 July this year, the noble Lord, Lord Cameron of Dillington, who I am sorry to say is not in his seat, led an excellent debate on geothermal heat and power. For the sake of time, I will limit my remarks and refer noble Lords to my contribution to that debate, particularly with reference to the successful Heat the Streets pilot carried out by the Kensa Group in Stithians, Cornwall. The technology of providing domestic heating and cooling—all you have to do is turn the switch and you can start to cool a building as well as heat it—via shallow geothermal ground source heat pump grids in the form of an easily accessible utility service analogous to piped gas is proven and shown to be popular with participants. What is needed now is a trial to deploy it on a much larger scale in a realistic UK town or city scenario, which is what my amendment seeks to do.

[Lord Stunell (LD)]

My Lords, I rise because every one of these amendments merits serious consideration by the Government. I hope very much that the Minister, the noble Earl, Lord Howe, will be able to stretch his brief somewhat in responding to them.

It is a particular pleasure to support the noble Lord, Lord Crisp, in his advocacy for healthy homes in Amendment 191A. He has rightly argued that having healthy homes in this country is a vital step in promoting and enhancing well-being. Well-being was at the heart of 19th-century reforms of housing. It was also at the heart of 20th-century reforms of housing, where the underlying and clearly expressed purpose was to make sure that people’s homes enabled them to live lives which were productive, meaningful and, for them, a success. As the noble Lord, Lord Crisp, argued cogently, a healthy home is a gateway to life; it is a prerequisite of educational attainment as well as gainful employment. It has to be at the core of any genuine attempt to level up.

I want to take the noble Earl, Lord Howe, back a little way to what is almost a historic document now. A White Paper was produced on levelling up, and in it were missions which the Government committed to and set targets to achieve. Mission 10 said that, by 2030, which is now just six years away,

“the government’s ambition is for the number of non-decent rented homes to have fallen by 50%”.

That is a long way to go in a short period of time, but it shows that the Government understood that a healthy home was a prerequisite for a healthy society.

Mission 5 was about education. Again, by 2030, in six years’ time,

“the percentage of children meeting the expected standard in the worst performing areas will have increased by over a third”.

Those children in the worst performing areas, funnily enough, all live in the worst housing and accommodation.

Mission 7 talks about healthy life expectancy, something on which the noble Lord, Lord Hunt of Kings Heath, spoke very eloquently. Again, by 2030, the gap between the highest and lowest areas is to have narrowed and, by 2035, the healthy life expectancy of the whole country is to rise by five years.

The amendment from the noble Lord, Lord Crisp, as well as the other amendments in this group, are all keystone decisions on policy that the Government need to take if they are to close the gap as set out in those mission statements—and as they are supposed, and claim, to be doing through this Bill.

The reality is that nothing else in this Bill will or could move the dial on any of those mission objectives, yet they are supposedly central to all the time and effort that noble Lords in this House and Members at the other end of the building have put into this so far. I hope that the Minister will be able to engage with all these amendments and, specifically, the amendment in the name of the noble Lord, Lord Crisp, and not simply read the brief as he did in Committee.

All the other amendments are worthy of merit, but I want particularly to mention in this group Amendment 282L, which I have put my name to, relating to low-carbon heat, energy-efficient homes and so on. That has been a lifelong goal—half a lifetime of my political and professional activity has been in trying to make sure that these things happened.

I recall—as, I am sure, does the Minister—that we would have proceeded to have zero-carbon new homes at least in 2016 had the proposed plan not been discontinued by the incoming Conservatives. I hope that at the very least he can reassure us that in 2025 the new homes standard will really come in and move things in the right direction. In the meantime, giving his assent to Amendment 282H would be a clear signal to the industry and developers that that is the direction in which we are to go.

Also in this group is Amendment 198 in the name of the noble Baroness, Lady Willis of Summertown, which was introduced by the noble Lord, Lord Hunt, and signed by my noble friend Lord Foster of Bath, who unfortunately is unable to be here today. It is on the same track exactly, asserting the importance of good quality and affordable housing to our health and welfare. I am indebted to the Better Planning Coalition for its briefing on this.

We are still building housing that fails to meet basic standards for health and safety. Our existing housing stock is poor. The Resolution Foundation reports that there are 6.5 million people living in poor-quality housing, including homes that are cold, damp and in poor repair—that is one in 10 people. Once again, the Government’s mission 10 sets out an aim to halve the number of non-decent homes in the private rented sector by 2023. Living in poor-quality homes makes people twice as likely to have poor general health as those who do not, and they face increased stress and anxiety. The links between health and housing go beyond quality. Professor Sir Michael Marmot found that affordability as well as quality affects health, and living in overcrowded and unaffordable housing is linked with depression and anxiety. We shall return to that in the debate on a further group later tonight.

If we want to enable people to live healthier lives, we also need to examine how our homes and environment can be adapted as our life stories alter, whether through illness, injury or ageing. I hope that I can persuade the Minister to restate the Government’s commitment to ensuring that new homes are built to higher accessibility standards, as well as to better insulation and efficiency standards, from 2025. The statutory duty in Amendment 198 would provide local authorities with the flexibility to meet local health needs while giving them the mandate to take action that has been sorely lacking when we have had to rely purely on the vague language within the National Planning Policy Framework.

The amendments from both the noble Lord, Lord Crisp, and the noble Baroness, Lady Willis, would make sure that the planning space paid special regard to creating local places where homes are affordable to local residents, where they are developed to good conditions and adaptable standards, and where they are connected to facilities and services that maximise the opportunity to be active in a safe and pleasant environment.

There is a dreadful alternative—in fact, it is the alternative world that we actually live in—of increasing health inequalities, with additional problems for individuals and families and increasing demands on public health and care services. I hope the Minister agrees that the moment has come to move from this alternative world that we are in to one that could be delivered with these amendments. I and my colleagues look forward to supporting those that are taken to a vote if the Minister does not agree.

[Baroness Hayman of Ullock (Lab)]

My Lords, I thank the noble Lord, Lord Crisp, for speaking to his amendment, introducing the debate on this group and bringing forward clear arguments for why the Government should consider accepting his amendments. For two years or so the noble Lord, supported by the Town and Country Planning Association, has led a campaign to put people’s health and housing at the centre of how we regulate our built environment. I pay tribute to him, and I am pleased to offer our support for his amendment.

During the time that he has been pushing on this, medical evidence surrounding the relationship between the condition of someone’s home and their life chances has become even stronger. We have heard evidence of the shockingly poor standards even of some new homes that are being created through our deregulated planning system. The amendments could prevent the development of poor-quality housing, which continues to undermine people’s health and well-being. While the Government have acknowledged that housing and health are key to the levelling-up agenda, the Bill currently contains no clear provisions for how we are to achieve that objective. So we support the noble Lord, Lord Crisp, in his efforts to put new obligations on the Secretary of State.

We hope that the Government will change their approach and accept these amendments as a sensible starting point on a journey to transform the quality of people’s homes, with benefits to them and to the national health and social care budgets. But if this does not happen and the noble Lord is not satisfied by the Minister’s response, we will be happy to support him in a vote.

Levelling-up and Regeneration Bill

Lord Stunell Excerpts

Report stage
Thursday 20th July 2023 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, we have reflected on the debate in Committee and the report from the Delegated Powers and Regulatory Reform Committee, and I reiterate my thanks to the committee for its work in relation to this Bill. We want to ensure that the designation of locally led development corporations by local authorities is appropriately scrutinised, and therefore these amendments, in line with the DPRRC’s recommendation, apply the affirmative procedure to the orders establishing locally led urban and new town development corporations. I beg to move.

[Lord Stunell (LD)]

My Lords, I welcome the government amendments which, as the Minister has said, bring decisions made by the Secretary of State on urban development areas back to Parliament in the form of affirmative resolutions rather than negative resolutions. In my view, which I have expressed frequently, far too much in this enormous Bill is set out in the form of decisions left entirely to the Secretary of State to fill in by way of statutory instruments. Far too often, the only restraint is the wholly inadequate procedure of negative resolutions. I am pleased that the Minister has recognised the overreach in the original drafting and has brought forward amendments to correct that.

In Committee, I expressed general support for the proposition of locally led development corporations, and that was helped on by the Minister’s reassuring words to the effect that the wide discretion given to the Secretary of State in Clause 162 to designate a development corporation is, in practice, entirely conditional on there first being a positive initiative from that locality. That is all the more important in view of the strange reluctance to include town and parish councils in the formal consultation process.

In responding to this debate, I would be very grateful if the Minister could make assurance doubly sure on that point of local initiation and leadership of the new generation of development corporations. I look forward to hearing her reassurance on that point.

[Lord Lansley (Con)]

My Lords, my intervention on this subject will be brief. I did not speak on development corporations in Committee, but I have been following the subject very carefully. In response to this very short debate, or perhaps more appropriately in a subsequent letter, might my noble friend explain to us a little more about how the various forms of development corporations are intended to be deployed?

As far as I can see, in addition to the mayoral development corporations—which are not much affected by this Bill—we will continue to have scope for urban development corporations initiated by the Secretary of State, we will continue to have scope for new town development corporations initiated by the Secretary and we will have locally led urban development corporations and locally led new town development corporations that may be established at the initiative of local authorities under this Bill. By my count, we have five different forms of development corporations.

There is a certain amount of speculation about under what circumstances, in what areas and for what purposes these development corporations may be deployed, and about the Government’s intentions. It would be reassuring to many to hear from the Government about that, and in particular about their presumption that they would proceed, particularly for new towns and new development corporations, by reference to those that are locally led and arise from local authority proposals, as distinct from continuing to use the powers for the Secretary of State to designate an area and introduce a development corporation at his or her own initiative. It would be jolly helpful to have more flesh on the bones of what these various development corporations look like and how they will be deployed by government.

Building Safety (Leaseholder Protections etc.) (England) (Amendment) Regulations 2023

Lord Stunell Excerpts

Thursday 20th July 2023 Lords Chamber

This is not a static situation. I have seen suggestions that perhaps things will settle down in due course. How many years do noble Lords or the Government think it will take for this matter to settle down? How much grief do noble Lords think it is reasonable to visit on an often quite impecunious but entirely innocent part of the home-owing sector? I apologise for the length of my explanation, but those are the reasons why I think these regulations are a significant missed opportunity, which is why I tabled my amendment. I beg to move.

[Lord Stunell (LD)]

My Lords, I remind the House that my noble friend Lady Pinnock moved a regret Motion on 21 March on a previous version of this statutory instrument. She pointed out that the Government’s poor drafting had led to scores, perhaps hundreds, of innocent leaseholders having to foot a bill for remediation of fire safety defects that should have been paid by landlords. Your Lordships supported my noble friend, and the regret Motion was passed by 185 to 138. Today, the Government are having their third go at getting this particular set of statutory instruments right. They have been challenged in court, have had stern criticism from the Secondary Legislation Scrutiny Committee, and now have reluctantly come back with some amendments and clarifications, which the noble Baroness set out from the Front Bench very clearly a few minutes ago.

The Government’s statutory instrument that we are amending had four cases of defective drafting and one of ultra vires, and generated two judicial review cases, which is quite a hefty charge list. I think the Minister, in presenting to your Lordships in this debate, has been skating over some pretty thin ice, because she did not exactly acknowledge the pedigree, if that is the right word, of the document that the noble Earl, Lord Lytton, has brought to our attention today. She did say that she was leaving the door open to a fourth or fifth iteration of the document, and possibly primary regulation, if it turned out that it was even worse than she thought. That seems not a very satisfactory way to proceed with legislation in this Parliament. Sadly, it is not an unusual circumstance; a very high proportion of statutory instruments have to be corrected after the event—not necessarily corrected twice more, with a promise of more to follow.

In the debate in March, the Minister was not able to tell noble Lords how many innocent leaseholders had fallen foul of the first version of the defective statutory instrument. She did say, by way of mitigation of her offence, so to speak, that the liability of those leaseholders was limited and capped, and that it could not get any worse than them having to pay £15,000, which I am sure they found a great consolation.

The Government will, of course, eventually find out about those who have wrongly been charged more than £15,000 because, the cap having been exceeded, the cost falls back on to the Treasury. Is the Minister in a position to improve on the complete lack of information she had about the impact of the defects in the original version when she spoke last time? How many cases of charges exceeding the leaseholder cap have come to the attention of the department? What help and advice have been given to those who have found themselves in that position? It will be a pity if she says that she is disinclined to help rectify the errors exposed at that time.

I hope that we will get a bit more of an apology than the Minister was able to offer when moving the regulations at the beginning of this debate. I hope she can do a little better than the repetitive circumlocutions in the Explanatory Memorandum. I am pleased to hear that more explanatory notes are being issued, although I note that announcing it from the Front Bench in the debate on whether these are good regulations is rather late in the day for noble Lords to have absorbed what the new information contains. It may be that the Minister would like to say a little more about that.

Levelling-up and Regeneration Bill

Lord Stunell Excerpts

Report stage
Tuesday 18th July 2023 Lords Chamber

[Baroness Pinnock (LD)]

My Lords, before I start, I repeat my relevant interests as a councillor and as a vice-president of the Local Government Association.

This group of amendments concerns the Government’s proposal to introduce the infrastructure levy as a replacement for the existing community infrastructure levy—CIL—and Section 106. My Amendment 68 seeks to leave out Clause 129, which establishes the infrastructure levy, and Amendment 90 would delete the relevant Schedule 12.

My reasons for this dramatic action are these. The infrastructure levy as currently proposed is contrary to the purpose of the Bill, which is to enable the levelling up of areas that are defined in the White Paper. The IL fails to contribute to that levelling-up mission because the amount that it will be possible to set as an infrastructure levy rate will be dependent on land values. Land values are much lower in the very areas that are the focus in the White Paper of levelling up. Using the existing community infrastructure levy as an example, land is zoned according to land values. At the independent examination of CIL in Kirklees, where I am a councillor, the planning inspector reduced the CIL charge to nil pounds—nothing—per square metre for a zone which includes the allocated site for 2,000 houses. This is not levelling up.

One of the criticisms of the infrastructure levy is that it will not be site specific. That means that communities that have large housing developments will not necessarily benefit from improved facilities, such as open green space, play areas, and funding to support school places as well as affordable housing on site. Any infrastructure levy can be spent anywhere in the council district.

Another of the major criticisms is that the charge will be paid by the developer only towards the end of the construction period, which may be a number of years. Meanwhile, it is expected that local authorities will have to borrow to build the new facilities needed in the expectation of funding at a sometimes much later stage.

It has also been argued that developers avoid funding infrastructure because of claims about the financial viability of a development. My noble friend Lord Stunell’s Amendment 94 aims to shine a strong light of transparency on viability. I agree with him.

The main contention during the debate on the infrastructure levy was on the provision of so-called affordable housing. There are amendments in the name of the noble Lord, Lord Best, and of the noble Baroness, Lady Taylor of Stevenage, that have the worthy aim of linking the income from the infrastructure levy to the building of houses for affordable sale or rent. We support those aims, but one of the downsides of this approach is that the infrastructure levy is designed to fund affordable housing and local facilities. There is a risk that, in some areas, it would all be spent on housing, which is positive but to the detriment of important local facilities.

Such is the level of concern about the infrastructure levy proposals that representations have been made by more than 30 organisations, including the County Councils Network, the Royal Town Planning Institute, Shelter, the Local Government Association and the National Housing Federation. The concerns expressed are about complexity, upheaval and uncertainty.

Finally, the Government have stated that the infra- structure levy will be in a test and learn state. This creates further uncertainty. Further, because the infrastructure levy is to be phased in, developers will be dealing with different charging regimes in different parts of the country for many years to come. That clearly adds to uncertainty and complexity for developers. Perhaps the Government have lost confidence in the scheme as proposed.

The difficulty with the infrastructure levy is that this is not the right time to change developer charging systems, nor will it provide sufficient funding at the appropriate time to fund affordable housing and local facilities for developments. It is time for a total rethink. I will listen very carefully and closely to the Minister’s response. If I am not entirely satisfied with the response she provides, I will be minded to test the opinion of the House. I beg to move.

[Lord Stunell (LD)]

My Lords, I rise to speak to Amendments 70 and 94 in my name in this group. I want to add my strong support to Amendment 68, moved by my noble friend Lady Pinnock, which aims to get rid of the IL altogether. She has spoken very powerfully to that point, saying not least that it is contrary to the central purpose of the levelling up White Paper and to the whole substance of the mission statements, which are set out—or rather, the skeletons of which have been laid—at the front end of the Bill.

The complexities and the unintended consequences of the infrastructure levy were explored in depth in Committee. The Government are now reduced to saying that it will be piloted first on a “test and learn” basis, and that it may be introduced piecemeal over the next decade rather than as a big bang, which I suppose is the beginning of some sort of reality check. The Government’s own amendments, which are in this group and which we shall hear about shortly, are an attempt to water it down a bit further. As my noble friend said, the Government seem to have rather lost confidence in the infrastructure levy providing the solutions that they originally imagined.

Well, we are a little bit ahead of the Government. We have completely lost confidence in the infrastructure levy as a vehicle for positive change on the delivery of affordable homes or indeed decent infrastructure associated with new development. The infrastructure levy is beyond repair. This duck is dead. I certainly hope that, if my noble friend Lady Pinnock does not get the assurances that she is looking for and a vote is called, noble Lords will go into the Content Lobby with her.

I wait to hear what the noble Baroness, Lady Taylor of Stevenage, has to say about Amendment 69 and what the noble Lord, Lord Best, has to say about Amendment 71. I would say that what they are offering is palliative care rather than resuscitation of the levy. Either or both of those amendments would be definite improvements on anything the Government have tabled, so I will wait to see what is said about that.

The noble Lord, Lord Lansley, has tabled Amendment 311, which is an admirable setting out of preconditions—preconditions which are so obvious and sensible that I fear the Government will reject them out of hand. Instead of seeing this for what it is—an attempt to introduce sound legislative principles into the Government’s Bill management, which I would have thought they would welcome—I suspect they will just see it as some kind of amendment to kick the whole project into the long grass. But in default of anything else, will the Minister please give the noble Lord, Lord Lansley, some help with getting those preconditions written into this model?

I turn to my Amendment 70. This returns to the vexed issue of what is affordable when we talk about affordable homes. Affordability is used in legislation at present based on the idea that, provided that there is a discount on the going market rate, a home in the private sector is thereby affordable. It is currently a standard discount, which takes no account at all of incomes in the locality, nor does it pay any attention to price differentials between similar homes. For instance, similar homes in an outer London borough such as Sutton, where I was born, are a factor of two more expensive than those in the metropolitan borough of Stockport, where I live. So for “affordability” to mean the same in the two boroughs, incomes in Sutton would need to be double those in Stockport to match the ratio of incomes to the discounted sale prices in the two boroughs.

Small and Medium-sized Housebuilders

Lord Stunell Excerpts

Wednesday 12th July 2023 Lords Chamber

[Baroness Scott of Bybrook (Con)]

My noble friend is right. That is why the NPPF includes policies to support SMEs; for example, it sets out that local planning authorities should identify land to accommodate at least 10% of their housing requirements on sites no larger than one hectare. That might seem large, but we also make it clear in the framework that local planning authorities should work with developers to look at subdivisions in those areas where we could help speed up the delivery of homes, particularly by SMEs delivering those homes.

[Lord Stunell (LD)]

My Lords, the brickmaker Forterra has shut its Howley Park brickmaking plant because of a 31% decline in demand for bricks in the past 12 months. That coincides with news that, in this last financial year, the Minister’s department has sent back to the Treasury £225 million unspent on affordable housing. Is it not time that there was some connection inside the department to make sure that the available money is spent on affordable housing, possibly affordable social housing as a countercyclical measure at a time when the private sector is under such pressure?

[Baroness Scott of Bybrook (Con)]

I do not know whether the noble Lord is aware, but we have been through quite a lot of economic volatility, which has obviously led to developers’ slowdown. Therefore, the amount of money mentioned in the Guardian article that I believe the noble Lord is referring to, about money going back to the Treasury, is not quite correct. It is actually being put into projects of more than one year, so it will be forward spent. As the economy strengthens, as it is doing now in the housing sector, that money will be available to build affordable and other housing.