Localism Bill
Debate between Lord Whitty and Lord Kennedy of Southwark
Lord Whitty
My Lords, I hope that I and my colleagues will keep to that.
In moving Amendment 1, I declare an interest as chair of a recently formed campaign group, Housing Voice. Amendment 1 is very similar to an amendment which was debated in Committee and it sets the provisions on social housing under the Bill in a wider context. This reconfigured amendment takes account of the response given by the Minister to that amendment. Like everyone else, I want to get on to the amendments that deal with the detailed issues which were not debated or replied to in Committee, so I shall not go over all the arguments again.
Simply, there are three reasons why we need an overarching commitment to the role of local authorities within housing as a whole. First, under localism, and as a result of other things, including the abolition of regional housing targets, local authorities have now become the major driver for achieving housing policy across the country. This follows more than two decades when the housing responsibilities of local authorities under both Governments have been somewhat reduced and their direct control as landlords has substantially reduced. This Bill and its consequences will put local authorities and a lot of the strategy relating to housing back on to local authority shoulders.
Secondly, I think we all recognise that housing is in crisis in terms of its provision, availability and affordability, and I shall just repeat one statistic. Household formation in this country is now running at twice the rate of the provision of new housing. Thirdly, that crisis affects all forms of tenure—owner occupation, the private rented sector and social housing—as well as mortgage markets. Therefore, it needs to be tackled holistically and there is a key role for local authorities in that. That should be put clearly at the beginning of this section on housing and the strategic responsibilities spelled out up front.
In reply to me in Committee, the Minister referred to other legislation where a strategic responsibility was already imposed on local authorities. As a result of her remarks, I have looked at those pieces of legislation and cross-referred to them in this new amendment. They are either rather specific or rather general. The Minister also referred to guidance in this area. Of course, the guidance is in the process of being changed to become somewhat more general, so the existing statutory references and the guidance are rather too vague. It is therefore in the context of localism and of the effective devolution of strategic responsibility to local authorities that we need a strategic responsibility in this House, rather than further ghettoising social housing, as there is a slight tendency to do in the Bill. The Bill would make significant changes to the way in which social housing operates without cross-reference to the effect of the changes on other forms of tenure, or indeed vice versa.
We will come to debate the provisions, on which there will be strongly differing views, but my central point is that almost none of them can be confined to social housing. They will have effects on the private rented market. That is referred to in part in the homelessness provisions but nowhere else. They will also have effects on the demand for affordable mortgages, on planning, on development, on homelessness and on how local authorities deal with empty properties. The consequences of some of the provisions will be that social housing is seen as a residual housing responsibility rather than part of this whole. Whatever one thinks of those policies and the parallel policies dealing with the benefit side in the Welfare Reform Bill that we will debate next week, one cannot deny that the present housing crisis means that the pressures on social housing by restrictions on access to tenancies, or by raising rents, will cause further pressures on the private rented sector and the mortgage market. Nor can one deny that the effects of moving relatively high income groups of current social tenants out of the social tenancy market will also have those effects.
This Bill will make radical changes to social housing. It removes security of tenure for future tenants, abolishes most rights of inheritance and abolishes the financial framework under the HRA. It makes the availability of social housing effectively means-tested and the Welfare Reform Bill caps housing benefit. One can query whether that is consistent with the Government’s overall strategy to move people from benefit to work, but nevertheless it will have those effects. There are also changes, which we will debate shortly, to the obligation of local authorities on homelessness. It will therefore push working families into the private rented or affordable mortgage market and may well drive the working poor in many parts of the country out of social housing and to change their location from the inner cities, putting pressure on areas where perhaps it is not currently so great. Except in relation to homelessness, there is no cross reference to those pressures.
Pressures are likely to increase and we will see a spiral increase in demand. A low rate of new build is continuing and the level of rents and access to mortgages and deposits on mortgages are all still going up. The latest reports suggest no let-up in that tendency. We need a clause of this nature in the housing provisions of a Localism Bill. We also need local authorities to co-operate with each other, which will be discussed in the planning provisions of this Bill. Whatever we decide on the provision for social housing, and assuming that the rest of the Bill more or less stands—especially if it stands as it is—we need social housing measures now clearly devolved to local government level to be placed within this wider context. We therefore need a clause such as this.
The existing provisions are not adequate. I appreciate that the Government may not like the wording of this proposed new clause, so if they want to take it away and come up with a better version in time for Third Reading, I am not proud and would be very happy if they were to give that commitment. Such a provision is absolutely needed. I beg to move.
Lord Kennedy of Southwark
My Lords, my noble friend Lord Whitty put forward a similar amendment in Committee on the last day before the Summer Recess. The Opposition did then, and do now, give this amendment our full support and hope that there will be a positive response from the Government today.
There is a crisis in housing across all sectors. We have huge numbers of people on the waiting lists for social housing. The private rented sector cannot meet the demand as the cost of renting in this sector is often out of the reach of many people. You have only to look in the windows of your local estate agents, nearly all of which have a section devoted to private renting, to see what rents are being demanded per month. I grew up in social housing and was lucky enough to buy my first property in my twenties, but the picture is very different now, with people often having to wait until their thirties or forties to get on the property ladder, as they save up the money required for the deposit needed to get on the first rung.
In her response to the debate in Committee the noble Baroness, Lady Hanham, said that the amendment was unnecessary as local housing authorities were already under statutory obligations. She quoted both Section 13 of the Planning and Compulsory Purchase Act 2004 and Section 87 of the Local Government Act 2003. That is fine as far as it goes, and noble Lords will see that my noble friend Lord Whitty draws on those two provisions in proposed subsection (1) of his amendment in relation to social housing and homelessness. It goes on to require all housing authorities to draw up an analysis of housing supply and demand across all forms of tenure in their areas and neighbouring areas as far as is relevant. They must look at housing trends across all sectors, take stock of house prices and rents, understand what has been built and provided locally, and know the number and type of empty properties: for example, is this an area where there are a number of second homes, and what are the demographic and employment trends in the area? All this must be brought together to enable an authority to plan, make informed decisions and act to build communities and to enable areas to grow and prosper.
This is a sensible proposal and I hope that the Government have reflected on it over the summer. If they are not prepared to accept the amendment, that is regrettable, and I hope that the Minister will be able to tell the House in detail why not. If my noble friend is not satisfied, he may wish to test the opinion of the House.
Lord Whitty
My Lords, my name is down for two amendments in this group. I strongly agree with most of what the noble Lord, Lord Shipley, said. I also agree with the noble Lord, Lord Taylor, that this is the point where we are asking the Government to set out their long-term strategy. I am afraid that once they do, I think I will deeply disagree with it.
I appreciate and understand that existing tenants in their lifetime tenancies are by and large protected from this change. Therefore, any change and ultimate destination is pretty long term. It also seems to me that the Government’s long-term ambition is to abolish long-term and lifetime tenures. I can understand the temptation for them to do so when there is a shortage of affordable housing and great pressures on the existing stock but it is the wrong temptation, largely for the reasons given by the noble Lord, Lord Shipley. The role of council housing, not in its absolute origins but for most of its existence, has been to provide for people who cannot get on the housing ladder a degree of security and stability and to live in and work for a community in which to bring up their children.
I appreciate that there are some failures in that but there are also some significant successes. It has also meant that in some areas both rented and owner-occupied private sector properties can put the market price well out of the reach of most people. It has also allowed us to have mixed neighbourhoods in areas that would otherwise become ghettos for the rich. Just to take a random example, I mention the Royal Borough of Kensington and Chelsea. Because of the legacy of Victorian philanthropists and some of their predecessors in what were two boroughs, there is a significant amount of social housing in an otherwise extremely rich area. Is that to be gradually phased out for people who are not regarded as exceptions but as part of the community? The stability of community has existed in many of the estates there, in other London boroughs, and in places such as Bristol, Newcastle, and so on because we have had long-term and lifetime tenancies. To abandon that prospect and effectively in the long term to turn the whole of social housing into safety net and emergency provision is to run the risk of destabilising communities which have hitherto been relatively stable and to ensure that only the very, very poor and those falling within the kind of exemptions specified in Amendment 22 can live in a lot of areas in our country, particularly our inner cities.
That is not a recipe for a stable and coherent society. The Government should hesitate before going completely down that road. There are some brakes on that provision in this group of amendments. On the amendment suggesting that flexible tenancies should be a minimum of five rather than two years, I cannot understand the Government’s position. They are telling us that in practice five years probably will be the minimum except in exceptional circumstances, so why cannot we write the provision that way round in the Bill? It could say that there would normally be a minimum of five years except in exceptional circumstances which could then be defined in secondary legislation, and which would be subject to a degree of quality control by council decisions. If we move into flexible tenancies throughout, that would at least put a brake on the destabilising effect of potentially having only two-year tenancies, which does not give a couple, a family or even an individual a lot of security.
I would like to be more radical than that. My final amendment in this group suggests that there should be a limit, at least at this stage, on the degree of movement towards flexible tenancies, thus preserving, for the most part, that the default position for those who are entitled to new tenancies under these provisions are limited. I agree with the noble Lord, Lord Shipley, on his exemptions. The most vulnerable people should certainly be exempt from this provision, but I would make the exemption wider or put a limit on the degree of progress towards destroying the stability that social housing has provided for many in our population.
As I said in the earlier debate, other sectors of housing provision are in crisis and overstretched, and likely to be so for a considerable time. That leads to instability and to a change in relations between the generations. If people cannot get on the housing ladder until they are 40, they will not be in a position to help their sons and daughters until they are well past retirement age—or at least the current retirement age. Therefore, there will be a need for more family accommodation, because people in many parts of the country will not able to get on to the housing ladder, or in many cases meet the rent for decent accommodation in the private rented sector.
Social housing should continue to provide that asset. The terms on which it does so may vary, but the comprehensive move away from life tenancies to flexible tenancies that may have a length of as little as two years would destroy a significant element of housing provision and opportunities in this country. I appreciate that it will take time to get to that position, but it should not be the final position. Therefore, my amendment in this group suggests that only 25 per cent of households should be moved to flexible tenancies. One could argue about the percentage, and obviously individual councils will take different percentages. However, there needs to be a maximum, otherwise we are laying down significant problems for the future at a time when other sectors of the housing market are in such a dire state and when the pressure on housing as a whole will increase for at least the next 20 or 30 years.
Lord Kennedy of Southwark
My Lords, the amendment moved by the noble Lord, Lord Shipley, has the full support of the Opposition. I concur in particular with the remarks of my noble friend Lord Whitty. This amendment was moved by the noble Lord, Lord Best, in the curtailed Committee stage on the last day before the Summer Recess. As the noble Lord explained, the amendment concerns the flexible tenancy regime proposed in the Bill. It is supported by both Crisis and Shelter and seeks to provide protections for certain vulnerable groups by excluding them from the proposals. The groups to be exempt are of people for whom, through a variety of circumstances, flexible tenancies are not appropriate. The groups include older people aged 60 or more, households where one or more member has a long-term illness, and tenants who need more secure forms of accommodation.
What worries me most about this section of the Bill is the reliance that the Government have placed on words such as “in most cases” or “of course, the social landlord will take into account the needs of the vulnerable”. This is all too risky for the people most in need of additional help and protection. I hope that the Minister has had time over the summer to reflect on the proposals, and will be able to give us some welcome news today, and assurances that at least things will be tightened up. If that is not the case, I hope very much that the noble Lord, Lord Shipley, will press his amendment and test the opinion of the House.