(2 days, 7 hours ago)
Lords ChamberTo ask His Majesty’s Government what progress they have made towards their target of building 1.5 million new homes.
My Lords, our Government remain committed to delivering 1.5 million homes over this Parliament. Through major planning reform and investment, we are breaking through the barriers to development and will build the homes this country needs. Our bold planning reforms alone will drive housebuilding in the UK to its highest rate in 40 years. The spending review confirmed the biggest boost to social and affordable housing investment in a generation, alongside significant investment through the national housing bank, reforms to the building safety regulator, a new mortgage guarantee scheme, a support package for SME builders and work on a comprehensive construction skills package. We are laying the strong foundations for a generational rocket boost to housebuilding.
My Lords, 1.5 million is exactly what the country needs, but few outside government believe that this target is achievable. One in four of those homes would have to be built in London. London’s target for this year is 88,000 homes; by June, 4,000 had been completed. One reason that developers give for this slow progress is the target for affordable homes of up to 35%. Sites that were viable until recently are no longer. Can the Minister confirm that discussions are now taking place in Birmingham and London with a view to watering down the Government’s affordable homes programme in order to drive up completions? As one developer said, 35% of nothing is not a sensible policy.
I know the paper to which the noble Lord refers. With his ministerial experience, he will know that I cannot comment on leaked documents. However, let us make no mistake that London and the mayor are extremely ambitious about delivering the housing that London needs. The Government recognise its unique challenges, including higher build and labour costs, which have contributed to falls in starts and completions in the capital. We are working in partnership with the mayor and the GLA to accelerate housing delivery and are supporting the development of an ambitious next London Plan. We are already taking action to accelerate housebuilding through planning reform and unlocking large-scale developments such as at Euston. We are also supporting stalled sites in the capital via the new homes accelerator. London will be allocated up to 30% of the £39 billion social and affordable homes programme, granting approximately £11.7 billion to the GLA to support housing delivery in London.
(1 week, 1 day ago)
Grand CommitteeMy Lords, these regulations were laid before the House on 10 July 2025. The Government are committed to the remediation of residential buildings with unsafe cladding in England. Our remediation acceleration plan sets out how we will remove barriers so that buildings are fixed faster. Crucially, this will allow residents to be and feel safe in their homes.
The Government have already committed £5.1 billion of taxpayers’ money to the cost of remediation. We want to protect leaseholders and residents from further costs that are not of their making. The building safety levy is an essential step in achieving this. The purpose of the levy is to fund the Government’s building safety remediation programme. We estimate that we need to raise around £3.4 billion over 10 years. The draft regulations enable the levy to be imposed. The levy will be charged on certain building control applications for new residential floorspace in England. Subject to the approval of the Committee, it will start being charged from 1 October 2026.
Local authorities will collect the levy on behalf of central government. They are well placed to carry out this role as custodians of local building control, with tax collection expertise. I thank local authorities for the vital role they will play and for the steps they are already taking to prepare. My officials are supporting local authorities to ensure that they are ready for the levy launch. We will provide collecting authorities with grant funding for set-up costs. All ongoing costs will be recoverable from the levy revenue received.
The levy provides essential funding to deliver a safe built environment that meets residents’ needs. It complements our broader housing goals, including the delivery of 1.5 million high-quality homes over this Parliament. The levy is designed to minimise detrimental impact on housing supply while securing the required revenue. To achieve this, there are different levy rates for each local authority, which reflect local house prices. This protects viability in areas where house prices are lower. The differential rates are set out in the instrument. Development on previously developed land will benefit from a 50% discount rate. This discount compensates for the often higher cost of developing this type of land, ensuring that more sites remain viable.
The Government are committed to getting Britain building again. Small and medium-sized builders play a crucial role in driving up housebuilding rates but have faced significant challenges in recent years. In fact, just before I came here, I had a very interesting meeting with a round table of SME builders, so I know the immediate challenges they are facing. We are therefore helping SME developers by exempting developments of fewer than 10 dwellings from the levy charge.
Earlier this year, we announced the biggest boost to social and affordable housing investment in a generation. The building of more good-quality, affordable housing must be accelerated. With this in mind, all affordable housing is exempt from the levy charge. However, we have gone further, and any housing built by a non-profit registered provider of social housing is also exempt. Profits from sales of such homes are often reinvested into the provision of further much-needed affordable housing. Supported housing and other types of important community facilities, such as hospices and care homes, are also exempt from the charge. We will keep the rates and processes under review and will report at least every three years. With that, I beg to move.
My Lords, I am grateful to the Minister for her explanation of this substantial SI. Although the formula on page 15 may have deterred the casual reader, I found the Explanatory Memorandum at the end a helpful summary of what is proposed.
I welcome the measure as it is a key part of the package proposed by the previous Government to fund remediation costs after the Grenfell tragedy. Although there is an element of rough justice here, in that developers which were not even around at the time of the Grenfell tragedy will have to pay, the alternative—the remediation costs in those cases where the developer was not remediating the building falling entirely on the taxpayer and/or the leaseholder—was even less palatable.
As the Minister said, this SI originates from the Building Safety Act 2022. At first sight, a delay of four years before it is introduced and a further delay before any money is paid are difficult to justify, given the urgent need to make progress with remediation. However, that does not matter; perhaps the Minister can confirm this. Although the taxpayer contribution is capped at £5.1 billion, the Treasury is, as I understand it, prepared to lend the department additional funds should that cap be reached; it will then recoup the money from future levies. As there is no sunset clause, the levy will remain in place until the Treasury is back in funds.
I have two main concerns about the building safety regime: the speed at which it is happening and the exemptions from the Building Safety Act. I made these criticisms of the previous Government, as noble Lords who were there may recall, and tabled amendments—unsuccessfully—to a variety of Bills. So there is nothing partisan about my remarks.
First, on speed, the department published its remediation portfolio dashboard showing the position as at the end of August this year. Of the 5,554 buildings covered by the Act—buildings are still being uncovered—35% had had their work completed and 14% had work under way. This means that, more than eight years after Grenfell, work has not actually started on over half of the buildings at risk.
The dashboard does not label this as “work not started”. Instead, there is a Whitehall euphemism describing it as “in the programme”. The next time my wife asks me why I have not unloaded the dishwasher, I will say that it is in the programme. Seriously, though, this means that thousands of people are still trapped in unsellable homes with unsafe cladding and fire safety defects, often with high service charges and high insurance—
My Lords, I apologise for interrupting the noble Lord but the House is about to divide; the Bells will ring in a moment so this would be an appropriate time to adjourn the Committee for 10 minutes.
My Lords, I was explaining that the publication of the remediation portfolio dashboard showed that thousands of people are still trapped in unsellable homes with unsafe cladding, fire safety defects and, often, high service charges and insurance. That is why, writing in the British Safety Council magazine in July, the organisation End Our Cladding Scandal said:
“But on the ground—in the eyes of residents and leaseholders who remain trapped—nothing has changed”.
It went on to say:
“Labour … is failing to deliver on its manifesto commitments on building safety”.
Those are its words, not mine. The Government have a target to complete remediation by 2029 for high-rise buildings and by 2031 for 11-metre to 18-metre buildings. Some 14 years after the tragedy, surely we can do better than that. The Government’s initiative is called the remediation acceleration plan, so might we have some acceleration?
My second point concerns exemptions. The original proposition was that leaseholders, who bear no responsibility at all for what has gone wrong, should not have to bear the costs of putting things right, but that principle has been eroded: some buildings, leaseholders and defects do not qualify. For example, buildings under 11 metres do not qualify even if they have the same cladding as the Grenfell Tower.
The previous Government argued that, in those cases, there was no threat to life as people could escape. But that left the leaseholders in difficulty. In one case, Aviva insisted on cladding removal within 4 months as a condition of insurance cover, with no one else prepared to quote. Leaseholders had to pay £45,000 each. There are many other examples, such as insurers wanting combustible balconies replaced or people being unable to sell because their lender insisted on an EWS certificate, which could not be provided. Those leaseholders have no protection.
The latest RAP—remediation acceleration plan—announces the Government’s intention to
“provide funding in those exceptional cases where multi-occupied residential buildings under 11 metres have life-critical fire safety risks from cladding and do not have an alternative route to funding”.
However, what the insurers and lenders insist on is often not “life-critical”, but the property is unsellable or uninsurable without the work, so the leaseholders have to pay to put the defects right.
There is a separate category of non-qualifying leaseholders—people who invested their life savings in a small number of buy to lets. Where the block is being remediated not by the developer but by the building safety fund, they are exposed to the full costs of non-cladding remedial work—often a high five-figure sum. As this work is carried out at the same time as the cladding, this can hold up remediation for everyone, as the freeholder will not have the cash to pay if a non-qualifying leaseholder cannot pay or sell. In Wales, there are no non-qualifying leaseholders. Those leaseholders are no more responsible for the defects than any other leaseholder. It is a distinction that should be removed, not least to accelerate the progress of remediation.
Some defects are not covered. The 2025 update to the remediation acceleration plan refers only to “unsafe cladding”, often leaving leaseholders exposed to other costs. Again, that is a distinction that should not be there. The leaseholders have no more responsibility for the non-cladding defects than the cladding defects. Those leaseholders who enfranchised, encouraged by successive Governments, are now in a worse position than those leaseholders who did not enfranchise—another inequity.
I make two final points. The Government said in their manifesto:
“We will put a renewed focus on ensuring those responsible for the building safety crisis pay to put it right”.
This SI is about the developers, but what about the construction materials industry, found by the Grenfell inquiry to have been guilty of “systematic dishonesty” and “making false claims” and by which not a penny has been paid? Eight years after Grenfell, the latest update tells us that the Government are consulting on
“robust sanctions, penalties and liabilities for manufacturers”.
Again, progress has been far too slow.
Finally, we know that the Government plan to legislate to address some of the problems I have been outlining. On 6 October, the Secretary of State wrote to End Our Cladding Scandal, saying:
“This will include a new Bill in Parliament to ensure that delinquent buildings get fixed”.
I understand that the Bill will have a hard end date for remediation, with criminal prosecution if it is not done. But this suggests that delinquent buildings will not get fixed until we have the Bill, implying yet further delay. We are told it will be introduced when parliamentary time allows, but that sits uneasily with the Government’s commitment to move things at a faster pace.
Does the Minister understand the frustration of those who, through no fault of their own, face hardship and risks? What can she do to reassure them that the Government will address with renewed urgency the problems that confront them?
My Lords, I declare my interest as a freeholder of a mixed-use building, 15 metres tall, constructed in 2018—post Grenfell—in Norwich. Addressing the consequences of the use of aluminium composite materials in pre-Grenfell tall buildings is the priority that the Building Safety Act is meant to resolve and a commitment that should remain undimmed. Unlike my noble friend Lord Young, I will constrain my comments to the effect of the proposed regulations, which are contemplated to be introduced on 1 October, on the construction of new homes, not existing homes. That does not mean I do not care about the existing homes, but I think we need to view part of these regulations through the lens of the construction industry.
It is common ground that we need more homes, driven not only by the UK population, which the ONS tells us is now just shy of 70 million, but because you cannot sell capitalism to people who cannot accumulate capital—and the best way of doing that, for most families, is by building a stake in their own home. Nothing we do should discourage or disincentivise the need to build the homes our nation needs.
There are enough headwinds in construction already and the Minister probably has some of those ringing in her ears from her lunchtime meeting with SME builders. There are more headwinds to come. The BSA levy is potentially one of those headwinds and could chill construction still further at a very delicate fiscal moment. That is important because if there is no building, there is no levy and there is no money to fix the cladding.
We know that there is a crisis of confidence in London’s building industry. I will focus on London for the moment because a lack of housing starts in London is going to imperil the Government’s nationwide housebuilding ambitions. All historic sources on housing starts point to London being in crisis. The Molior data shows that just 2,000 private homes were started in the first half of the year—a record low. MHCLG data shows that the total number of homes started in the entirety of the 12 months to quarter 1 2025 is 60% lower than the previous record low, set in 1990. The GLA’s affordable data shows that only 347 homes were started in Q1—a record low, following lows in 2024-25. Right up to date, the interim statistics show that in the last quarter for London new starts were 40% lower than the previous low point, with nothing over 18 metres started anywhere.
Developers in London are on strike, and if we cannot sort out building in London, we will never get roofs over people’s heads nationally. This is not just about the levy holding things back; house prices have risen in the capital by 1% since 2015, a previous high point. Berkeley Homes tells me that the bill costs have risen by over 40% in the same period—directionally, half on materials and half on regulatory burdens. So we know that viability is under threat. Planning has previously been fingered as the hold-up for development, but now if you get your planning consent, you need to get building safety regulator approval before you start digging foundations for all the dwelling homes that are excluded from the levy. It is therefore the building safety regulator that is putting speed bumps in the way.
These regulations provide for applications to be made to the regulator before 1 October next year or the levy will apply. That sounds like a long way away, but I am told it is currently taking 44 weeks, at best, for the regulator to reply to an application. More often than not, that reply is in the negative. I have heard of a refusal from the regulator that was evidenced by a single word: “Roof”. That is just not good enough. It is already too late to apply and hope for an approval, with just 50 weeks to go until 1 October 2026. That is also not helping many of the thousands of already completed homes in London that are doing nothing but eating their heads off in interest for want of a final approval.
I have done some research and learned that the reasons for all this relate to the fact that staffing and the transition have not been sorted out between the HSE and the building safety regulator. There is far too much subjective interpretation between professionals, each of whom may be correct in their difference of preference, but either option could be safely implemented. The regulator’s IT system is incompatible with the software that all developers use, particularly because it does not use the indexes. That is important because rather than someone going online, clicking on the screen and being transported instantly to one of the thousands of A0 plans through the index, the regulator’s IT system—I am told—means that you have to search manually through all 1,000 sheets. It is hardly surprising that it is taking so long. We then have the numbers: an additional £60 to £70 per square metre in London—and up to £90 in Fulham—and directionally £25 to £35 elsewhere.
I have consulted developers. More than ever, time is money. Reluctantly, they are prepared to accept the levy—that is good news; there is an alignment on the need and the willingness to pay. But their view— I agree with this, and I ask the Minister whether she does too—is that, before the levy comes into play, the building safety regulator needs to sort out its relationship with the HSE. The software needs to be made compatible with BIM, so that we actually get some productivity. We have to agree to objective, accepted standards for what is an acceptable way of building new homes, rather than be subject to arbitrary preference. There needs to be a response within four weeks and not 44 weeks.
If the builders are making that proposal, I think that it is a fair bargain and that the Government should accept it. Unless they do, the developers’ strike will continue and then no levy will be created at all. That does not help anybody, still less the people for whom my noble friend Lord Young is most concerned.
It is important that we think also about the cash flow. I have looked carefully at the regulations and the implementation. I am concerned that, particularly for a large-scale flatted development, should one go ahead, the entirety of the levy—remember, that it is £90 per square metre in Fulham—would be paid on the entire development at the point at which the very first part of that development had a completion certificate. Just at the point at which the developer is suffering greatest cash stress, the entire bill would be due. I am concerned for the cash-flow viability of these organisations, noting that the Financial Times has reported that, in the entirety of London—a city of 10 million people—in the last quarter, fewer than two dozen new flats have been sold. That is a real crisis point.
Will the Minister recognise that until the system is working smoothly, nobody will start anything over 18 metres and that unless we can get the workability, timescales and IT right, the strike will continue? Will she give a commitment that, at the point at which the levy is introduced, approval times will be down to, say, a reasonable four weeks, because time is money and money is risk? On that basis, there will be a grudging acceptance—but an acceptance none the less—by the industry that we can move forward, and then the people for whom my noble friend Lord Young is most concerned can be remediated more quickly. Unless we get an accommodation between the Government and the development industry on going forward positively, this will not be sorted out and the Government will stand zero chance of meeting their ambitious housing targets, which we should all endorse.
I declare my interest as a councillor in central Bedfordshire. Fortunately, we do not have many high-rise buildings in rural areas.
In response to the Building Safety Levy (England) Regulations 2025, the principle is absolutely right that those who have profited from residential development should contribute to the cost of making homes safe. It is both fair and necessary. This levy was set up by the Building Safety Act 2022 under the previous Conservative Administration, and it is an important part of wider efforts. I make very clear that we support this, but some issues need addressing.
The Government anticipate that the levy will raise approximately £3.4 billion over the next decade to help fund remediation of historic safety defects, including dangerous cladding. For too long, thousands of residents have lived in buildings that they know are unsafe. They suffer the stress and emotional toil of being in an unsafe building and, as my noble friend Lord Young of Cookham pointed out, they are unable to sell and to move on with their lives. The situation is not of their making. My noble friend made a number of points, and it is crucial that this is done faster and better. I would very much like to know whether the Minister believes that the two deadlines of 2029 and 2031 will be achieved given that, as my noble friend pointed out, around half have not even started. I cannot remember the exact phrase—
(1 week, 2 days ago)
Lords ChamberMy Lords, I support Motion C1 in the name of the noble Lord, Lord Cromwell. I repeat my interest, in that my wife owns properties in London which she rents out, from which I occasionally benefit. I thank the Minister for meeting the noble Lord, Lord Cromwell, and me to discuss the matter. Her engagement with us was much appreciated.
I want to emphasise what the Minister in the House of Commons said when the Lords amendment was defeated. He said:
“We recognise that there will be occasions when landlords regain vacant possession of their property using ground 1A but are unable subsequently to sell it despite repeated attempts to do so”.—[Official Report, Commons, 8/9/25; col. 637.]
So the Government expressly acknowledge that there will be landlords who are unable to sell, having intended to do so, and who are acting in perfect good faith. The issue is whether it is really appropriate in this Bill to penalise such good faith landlords by preventing them renting out their property for 12 months because of abuse—and there is abuse—by other landlords.
I suggest to the House that this is a plain and obvious case of a disproportionate sanction. It is a sanction against those who have done no wrong and who have acted in perfect good faith. This Government are often eager to emphasise the importance of human rights law. It is important to acknowledge that human rights law does not just protect prisoners and illegal entrants; it also protects law-abiding citizens who own property and who wish to rent it out.
It is a basic principle of the common law, adopted by the Human Rights Act, that any interference with the right to property requires a fair balance between the interests of the property owner and the interests of the community. I suggest to the House that to penalise a landlord who has acted in good faith by preventing them renting out their own property for 12 months when they have done no wrong defies the need for a fair balance. It is manifestly disproportionate. The modest amendment from the noble Lord, Lord Cromwell, to reduce the period to six months is fair and balanced, and if he divides the House, as he has indicated he will, he will certainly have my support.
I do not know if the noble Lord is wanting to speak. I am perfectly prepared to give way to him, although I seem to have the Floor of the House.
The noble Lord, Lord Cromwell, made a very powerful case, which was well supported by the noble Lord, Lord Pannick. The noble Lord and others will remember that I supported him on this measure in Committee, and I think also on Report. It covers a wider ground than just the landlord who has been unable to sell. There is another ground, where the landlord has got possession of a property to put members of their family in. I cited the example of a landlord having done that for, let us say, parents coming in, one of whom then has a stroke, meaning that the landlord then needs to do something with the property that involves putting it back on the market. In that situation, the landlord is penalised in exactly the same way as when a landlord fails in a genuine attempt to sell, as the noble Lord has described.
In Committee, and I think also on Report, I proposed a better way of dealing with this problem: a prohibition on any landlord putting property on the market again at a higher price than the price at the time of the change of ownership. I should have succeeded in that argument, but I did not. However, I am certainly supporting the noble Lord, Lord Cromwell, as supported by noble Lord, Lord Pannick. I hope that your Lordships have heard the arguments from the noble Lords and will support them on this issue.
My Lords, I will speak to Motion D1 in my name, which the Minister referred to sympathetically at the beginning of our debate.
As we have heard, the Bill currently precludes a landlord who gives notice to a tenant because he wants to sell from re-letting that property for 12 months if that sale falls through. The Government want all tenants to be protected against abusive eviction by landlords, and I have no difficulty with that principle. However, in the case of shared owners, there are already safeguards against such abuse that are not there for conventional landlords, and their sales are more likely to fall through, through no fault of their own.
The amendment exempting shared owners from this provision was carried on Report in your Lordships’ House by the largest majority of any amendment to the Bill. While sympathy was expressed by Ministers in the other place for the plight of shared owners, the amendment was overturned there. Last week, the Government tabled their Motion asking your Lordships not to insist on that amendment. On 10 October, the Minister followed that up by writing to all Peers, hoping that they would support her Motion not to insist. Then last week, we had a Damascene conversion, and here I obviously had more good fortune than the noble Lord, Lord Cromwell. I am most grateful to the Minister for the time she spent with me on this last week, and indeed earlier, and to Matthew Pennycook and the officials. The amendment in my name is the outcome of those discussions and represents a deal that I can accept.
To briefly summarise the case, shared owners are social housing residents. They own a portion of their property and rent the rest of it from the housing association. They purchased a share of their home because they could not afford to buy on the open market. They are a distinct, legally identifiable group of people, and they are actually precluded from subletting without permission from their registered provider.
(1 month, 1 week ago)
Lords ChamberThat is very generous of the noble Baroness. Further to the Question asked by the noble Lord, Lord Carrington, has the Minister seen a survey by the National Residential Landlords Association indicating that 31% of private landlords are planning to leave the market in the near future, aggravating the existing shortage? What steps is the Minister taking to encourage long-term institutional investment by institutions—insurance companies and pension funds—to remedy this shortage?
The Government value the contribution made by responsible landlords and believe that they must enjoy robust grounds for possession and so on, but there is good reason for them to think about these reforms. They have nothing to fear from our reforms. The sector has doubled in size since the early 2000s. There is no evidence of exodus since reform has been put on the table. Our proposals make sure that landlords have the confidence and support that they need to continue to invest and operate in the sector. However, we are determined to level the playing field between landlords and private tenants by providing the latter with greater security. The noble Lord mentioned institutional investment. There is already institutional investment taking place through our major banking organisations to support private landlords to do the work that they need to do. That goes alongside a range of government funding, which will help with the differences that we all want to see.
(1 month, 1 week ago)
Lords ChamberMy Lords, I have added my name to Amendment 185SG in the name of the noble Lord, Lord Mawson, and I shall add a very brief footnote to what he has just said.
It of course makes sense for there to be co-operation and co-ordination between public authorities as they develop community infrastructure. Otherwise, as the noble Lord has just said, you get housing estates without the shops, schools and medical centres that are needed. A local plan would normally do this. The amendment askes the Secretary of State to identify which authorities do it best. It is some time since I was a Planning Minister, but it was certainly the case that some planning authorities were exemplary in how they led the planning system and others fell far behind. The amendment askes the Secretary of State to identify the leaders in the field, publish the best practice and invite local authorities to follow that best practice. That seems to me to be in everyone’s interest, because the whole planning system depends on high-quality, up-to-date local plans. The amendment is seeking to do that. If a new clause is a step too far for the Minister, perhaps it could be incorporated into the NPPF or other guidance.
I shall say a final word on my noble friend Lady Coffey’s amendment about involving local MPs, which in some cases is linked to what I have just spoken about. Her amendment would simply add the local MP to the list of interested parties in a development that has national implications. It would not give them any additional rights; it would simply ensure that, if there is a development, one of the people who has to be notified is the local MP. My noble friend Lord Blencathra outlined the case very well. Any sensible developer would have involved the local MP at a much earlier stage, so I see this as a long stop, so that if for any reason the local MP has not been involved he is not at a loss when the local paper rings him up just before deadline asking him whether he has a view on what has just been proposed. It seems to me to be an eminently sensible amendment, and I hope the Minister is able to smile on it.
My Lords, I will make a couple of brief points on these amendments. They are a wee bit difficult to link up in some respects. I understand that most of them are about providing checks and balances within the system, or as the noble Lord, Lord Teverson, framed it, more transparency.
I support the broad principle of these amendments, including the duty of candour, if we can refine that in the planning system. On Amendment 185SG, the key is getting public authorities and local authorities to work together. I support public authorities having a general principle for their schools, health authorities, hospitals or whatever, provided that it gives enough flexibility for local areas to make decisions, which might be different in a rural area from decisions in London. We need to make sure there is that flexibility.
Finally, we need to ensure that it does not delay the processes. Sometimes, if you put additional checks and balances in planning, local authorities will use them as an excuse for why there is a delay in a planning decision being taken at a much earlier stage. In broad principle, I support the basis of these amendments, but we need to make sure that they would not delay the processes.
(1 month, 2 weeks ago)
Lords ChamberMy Lords, I have added my name to Amendment 122 in this group, along with others that relate to the provision of social housing. This group and the next are of major interest to those of us who are concerned about housing provision.
There is not actually very much in the Bill itself about housing. If you look through the first few pages of the Bill, headed “contents”, the word housing appears nowhere. In the whole 21 pages of Chapter 2 on spatial development strategies, I found the word housing twice on page 73. That was it, apart from a reference to the definition of affordable housing on page 74. The amendments in this group are not actually amending anything in the Bill, they are all inserting additions after Clause 52. Apart from future debates about housing for the elderly and modern methods of construction, this group of amendments and the next will have to do much of the heavy lifting on housing provision.
Amendment 122, ably moved by the noble Lord, Lord Best, will hold the feet of developers to the fire when it comes to the provision of social housing under Section 106. We have heard debates in the past about ensuring that social housing does not miss out by being built out last, and the developer then pleading extenuating circumstances for so-called financial viability assessments. As the noble Lord, Lord Best, said, since nearly half of all affordable houses are now provided under Section 106, we simply must maximise this resource.
The noble Lord, Lord Best, explained what happens in practice. The developer will tend to build the affordable houses last in order to maximise the cash flow by selling the market houses first. Then, towards the end of the development, when the developer finds the sums do not quite add up, the last thing he wants to do is anything which impacts on the value of the market houses. He will not want to touch the green spaces, the playgrounds or the car parking, so he will try to squeeze out the affordable housing.
Research by the CPRE shows that developers and land promoters have used viability assessments to get out of building almost half the affordable houses required; in its sample, 18% was achieved instead of 34%. The system at the moment favours the big developers, which can overbid the smaller developer and then use sophisticated financial viability assessments to outwit the under-resourced local authorities.
More recently, we have had the opposite problem: developers providing social housing but there being no registered social landlord to take it over. I raised this before the recess, on 3 July, and the Minister kindly wrote to me on 9 July. She told me that the Government set up the Homes England clearing service last December, and we can judge the scale of the problem, in that 113 housebuilders and 114 local planning authorities registered. The Minister told me in that letter that “more action is needed from all parties to ensure Section 106 homes are built to a good quality, are marketed at a reasonable price, and are purchased quickly and efficiently by social housing providers”. Can the Minister tell me what that further action might be and what progress has been made? Last December, the HBF estimated that there were 17,000 affordable homes stalled due to a lack of registered providers in the market to buy the homes. How many are there now?
Amendment 141, to which I have added my name, refers to social rent housing. It is worth asking why we need social housing. The market can provide most of the essentials in life—food and clothing—but no country in the world has a market that has met housing need. Worldwide, social housing provides affordable homes for families and individuals. Looking at the more prosperous European countries, they have a higher proportion of social housing than we do. All Governments have supported the housing market in this country: by supporting home ownership, initially through mortgage interest tax relief and then Homebuy in 1999, the starter home initiative and Help to Buy, or by supporting social housing—which is what this amendment is about—through Section 106, housing association grants or the affordable homes programme.
We did try an alternative approach—a market approach—under Nicholas Ridley. He wanted to move local authority rents up to market rents and let housing benefit take the strain. Under that scenario, there would have been no social rents; it was an explicit shift from bricks and mortar subsidy to personal subsidies. I am happy to say that Margaret Thatcher removed me from the Government before the Housing Act 1988 was introduced, because the experiment simply did not work. It did not work because it meant an annual increase in rents, which was unpopular, and the price was paid in local elections; it had an impact on the retail prices index and so on public expenditure, so the Treasury was concerned; and it assumed that the DHSS, as it then was, would be happy to finance an ever- growing housing benefit bill, which it was not— I remember Tony Newton complaining that he was funding the housing programme. We have reverted, rightly in my mind, to the traditional method of providing rents below market rents, with capital subsidies, Section 106, or surpluses retained by social landlords.
I was struck by one sentence in the Shelter briefing for this debate:
“Today, social housing has lost its universal status as a home for everyone, becoming an overstretched ambulance service and relying on ageing infrastructure”.
Shelter is right. Nearly 60 years ago, when I first became a local councillor, if home ownership was beyond your reach, you put your name down for the council waiting list and, in due course, you would get an offer. Now, that is no longer the case: social housing is strictly targeted at those in the most pressing need under the provisions of the Housing (Homeless Persons) Act, and local authorities are struggling even to meet those commitments, which will be accentuated as the asylum seekers are moved out of hotels.
It is the ambulance analogy—which is Shelter’s and not mine—that I focus on for a moment, at the risk of being controversial. The real ambulance takes you to a hospital and, when you are better, you are discharged. When the Shelter ambulance, to follow the analogy, takes you to social housing, and when, with the benefit of that housing, you put your life together again, you are not discharged, but there are still people in the Shelter ambulance. It raises the contentious issue of security of tenure for social housing and whether, given the pressure on social housing, there should be some incentives—I emphasise carrots, not sticks—to encourage those who have benefited to move on and to make way for someone who is now in the desperate circumstances that generated the original tenancy.
This is not to detract from the powerful case for more social housing made by the noble Baroness and the noble Lord, Lord Best, but it is to raise the question, given the changed circumstances over the last 60 years, of whether we need to have another look at lifelong security if we are to make the best use of the scarce resource that social housing is.
My Lords, I will say a few words in support of Amendment 132 in the name of the noble Baroness, Lady Bennett of Manor Castle, concerning the purpose of planning. To my mind, there would be some advantage in following the precedent in Scotland, where a similar purpose clause exists in its planning legislation. It would provide a guiding light to remind everybody involved in the planning system what planning is for and why we are doing all this.
There are two advantages in practice to this. First, it would remind those responsible for planning decision-making that that is not only about those who shout loudest, who very often tend to be the vocal minority as opposed to the silent majority who may wish to live in an area, and work in the area, but cannot find or afford a home there. It would provide a daily reminder that planning is about long-term public interest and not short-term expediency. For reasons I outlined in a previous debate, it would—in combination with the proposal for a statutory chief planning officer that was discussed in the debate on my noble friend Lord Lansley’s amendment—buttress the independence of professional planning officers from undue influence. That would be all the more important in the world where the national scheme of delegation exists, to give full effect to that scheme and for it not to be undermined by undue pressure from members or officers. I have a few quibbles with the drafting—that is not for today, but maybe something we can take up later. I urge the Government to consider this amendment very carefully.
My Lords, the noble Baroness, Lady Levitt, would have been proud of the speech delivered on her behalf by the noble Lord, Lord Carlile. I support the noble Lord, Lord Crisp, and commend him for continuing a campaign that he has promoted for some time, through a Private Member’s Bill and amendments to then Levelling-up and Regeneration Bill promoting healthy homes, but the challenge that faces him is that health and homes are in two different government departments. Successive attempts to bring them together have so far failed. Paradoxically, 100 years ago, the Ministry of Health was responsible for housing and health, and between the two World Wars, that led to a more integrated approach to both health and housing. Indeed, my great uncle, Sir Hilton Young MP, was Minister for Health in the 1930s, and as Health Minister he introduced the Housing Act 1935, which set down standards for accommodation—something which the noble Lord’s amendments seek to build on.
Winding forward, the importance of bringing health and housing together was central to the Black report, published in 1980, about inequalities and health outcomes. It said:
“The consequences, and importance, of housing policies for other areas of social policy, including health policies, have received increasing recognition in recent years—as have the problems of co-ordination deriving in part from the location of responsibilities for housing and personal social services … and Health services”.
Then we had the Acheson report. What I found compelling was the Resolution Foundation’s recent report which said that poor-quality housing doubles the likelihood of someone experiencing poor general health.
I looked at the debate in the other place on this amendment—it was for new Clause 9. There were two Back-Bench speakers, and it was all over in under a quarter of an hour—I see a smile on the face of the noble Lord on the Government Bench—including two other new clauses. That underlines the importance of this House in scrutinising legislation. The Minister there dismissed the need for a new duty to promote health because he said existing policy was adequate. There may be a copy of what he said in the folder in the Minister’s possession.
(1 month, 2 weeks ago)
Lords ChamberTo respond to my noble friend’s important points, the Grenfell Tower Inquiry thoroughly and independently examined the cause of the fire and the roles of various actors and set out its findings publicly. Although referenced within the final report, the inquiry did not criticise Bureau Veritas for its role in lift inspection or cladding testing. The ISO 9001 certification and cladding assessment certification are two different things, and it is important that we do not confuse them. ISO 9001 is an international standard widely used to assess a company’s quality management system; it is not specific to a product. Bureau Veritas certified Arconic to ISO 9001 standards, but the product certification for the cladding that was used on Grenfell Towers was issued by the British Board of Agrément. The inquiry finding suggests that Arconic concealed test data from the British Board of Agrément. Any legal or investigative matters relating to this now rightly sit with the appropriate authorities.
My Lords, further to the Question from the noble Lord, Lord Rooker, on cladding, data published by the noble Baroness’s department a few days ago showed that of the 5,214 high-rise blocks with unsafe cladding, eight years after Grenfell over 50% had not started remediation, meaning that thousands of families are living in unsafe flats. What reassurances can the noble Baroness give to those people?
I thank the noble Lord, Lord Young. Over eight years on from the Grenfell tragedy, there is no justification for any building to remain unsafe. Our goal is clear: to remove all barriers to remediation, get buildings fixed faster and allow residents to feel safe in their homes. That is why in December last year we launched the Remediation Acceleration Plan, a comprehensive strategy to fix buildings faster, identify those still at risk and support affected residents. In July this year we published an update to this plan, introducing further measures to remove the barriers, strengthen accountability and expedite remediation. At present, 57% of all 18 metre-plus buildings identified with unsafe cladding have started or completed remediation, and for 18 metre-plus buildings with the ACM cladding, such as that in Grenfell, 97% of the identified buildings have started. We need to move quickly on this one to make sure that people are safe in their homes and feel safe.
(1 month, 2 weeks ago)
Lords ChamberMy Lords, my noble friends Lady McIntosh, Lord Parkinson and Lord Banner have made powerful cases for their amendments. I will briefly take survivors of LURB back two years to Amendment 235, which I had proposed in Committee, and which was proposed on Report by my noble friend Lady Pinnock, and which effectively did what is now in Clause 48. Crucially, it enabled or authorised local authorities to recoup the costs of their planning department, but it did not require them so to do. I take the point that my noble friend Lady Scott made in her speech as to why the words “and require” were not in the original request by the local authorities. On Report, the Government resisted the amendment. They were defeated, and I confess that I played a modest role in that defeat. To the Government’s credit, they then accepted it in the other place and it came through.
The crucial question—one touched on by my noble friend Lord Banner—is whether this is going to be enough to solve the crisis in our planning departments. Reforms to the national planning policy introduced by the last Government are still working their way through the system. Earlier this year, only a third of local authorities had adopted a plan in the last five years, while 291 had plans of more than five years old, and they have to get those plans up to date. The moment they have done so, they are then confronted by local government reorganisation, with smaller units turning into larger, unitary ones. The Government have then said that, where reorganisation occurs, new unitary authorities are expected to promptly prepare a local plan covering the whole of their area. So they basically have to start again.
At the same time, the Government want to reduce all the current delays in processing planning applications so that we can get on with infrastructure, and a large majority of applications are not processed within the statutory timescale. Shortly, we will come to Chapter 2 of this part of the Bill, which introduces spatial development strategies. Again, under the Bill, the planners in these new strategic authorities must produce spatial development strategies providing strategic policies for the use of land in their area.
In a masterly understatement, the Government said:
“We are aware that areas undergoing local government reorganisation and devolution will experience a transition period where responsibility for spatial development strategy might transfer between authorities”.
The crucial question that the Government must answer is whether planning departments will, even with these reforms, be able to respond to the Government’s requests. If planning departments were fully staffed with the necessary skills, they might rise to the challenge. However, there is an additional problem in that many planning officers will have to reapply for their jobs. Some may well take redundancy as a consequence of the merger of local authorities. The LGA workforce survey found that 62% of councils have difficulties recruiting planning officers and 45% have difficulties retaining planning officers, many being tempted by higher salaries elsewhere—a point mentioned by my noble friend Lord Banner.
Finally, we are going to have new town development corporations. They will need planning departments. When the Minister replies, I hope that she can reassure the Committee that there will be the capacity within the planning system to respond to the Government’s ambitious agenda.
My Lords, I am not a planner, but I do have the joy of owning a small property in Cornwall, which is part-listed. I took a lot of advice when I wanted a new kitchen at the back of the building on whether I needed listed building consent. The answer was, “If it’s in Cornwall, yes, but if it’s in London, no”. There are many differences between areas of this country, which we have not talked about this morning but will come into the assessment of how the criteria are done.
In Cornwall, they are trying to keep the villages and towns looking good and beautiful, which is fine. However, you then hear comments from people like a friend of mine who wants to put a summer house at the far end of the garden, away from the listed house, and must get listed building consent. Everybody is moaning about that and the cost. On the other hand, if you do not have some criteria like that, you will have a mess. On Amendment 97, tabled by the noble Lord, Lord Parkinson, it is a great idea to say that these charges should be waived, but an awful lot more needs to go into it. Frankly, the amount of money needed to pay for listed building consent for the average small house is not that great. Therefore, I do not support Amendment 97. I hope that we can accept that there will be pros and cons but that the need to have listed building consent in a reasonable way overturns everything.
(3 months, 1 week ago)
Lords ChamberThe CMA is continuing its work on this, and on 9 July it announced that it is consulting on its intention to accept commitments offered by the housebuilders in relation to the investigation. That consultation closes on 25 July, and I have already set out some of the commitments that the seven companies have made. The £100 million payment, the largest secured through commitments from companies under investigation, will be split between affordable housing programmes across all our four nations. I hope that will make a significant contribution to delivering the affordable housing we all want to see.
My Lords, if the Competition and Markets Authority confirms this £100 million payment for anti-competitive activity, can the Minister give an assurance that none of the affordable homes to be built with that money will be built by the volume housebuilders responsible for this activity, otherwise they will simply get their money back?
The noble Lord makes a very good point. I am sure that the Competition and Markets Authority, as part of its consultation, will be looking at the best way of distributing that money, so it is not just recycled to the people who caused the problem in the first place.
(3 months, 2 weeks ago)
Lords ChamberMy Lords, when I spoke to this amendment last Tuesday, I said I was minded to test the opinion of the House if the Government could neither accept the amendment nor give an assurance that shared owners letting flats in blocks affected by the cladding scandal could sell the flats back to the housing association they bought it from when a sale falls through to save them from the financial problems that will confront them with the proposed 12-month ban on re-letting. Although I was grateful to the Minister for the meeting she held with me, and for her sympathetic remarks at the end of that debate, and read with interest the letter that she sent me this morning, I am afraid that it falls well short of the assurances I was looking for, so I beg leave to test the opinion of the House.