Social Housing

Matt Rodda Excerpts

Thursday 13th June 2019 Commons Chamber

[Matt Western]

My hon. Friend makes an incredibly important point, and I will come on to it. I am particularly familiar with his constituency, and I know that many areas of our country have seen high house price inflation, which has priced out young people, a lot of whom would ordinarily want to stay in those communities. This needs to be urgently addressed through social housing.

Twelve months ago, I was fortunate enough to meet a former soldier at one of my Saturday surgeries. He was back in his home town of Warwick, having been discharged from the Army after 10 years’ service. A veteran of several tours, soldier Y found himself searching desperately for a job and a home, and he was not in a good place. He was really struggling. He had he been diagnosed with, and was clearly suffering from, post-traumatic stress disorder. Soldier Y was sofa-surfing. Until relatively recently, it would have been possible for him to access one of the hostels provided by Warwickshire County Council, but the cuts since 2013 have resulted in a huge drop in capacity and places such as Beauchamp House in Warwick are no longer available. I have mentioned soldier Y, but I could have spoken about any of the dozens of people I have met since my election in 2017, all of them desperate for help to resolve their own housing situations.

[Matt Rodda (Reading East) (Lab)]

I would like to thank my hon. Friend for securing this debate, along with my hon. Friend the Member for Stroud (Dr Drew). I agree with him wholeheartedly about the need for a major council house building programme. The issue I would like to raise is the need for much greater funding for local authorities to build council houses. In my area of Reading, there has been an ambitious programme to build council houses within the limited scope of the funding that is available, but more funding is clearly needed. We have an excess of brownfield land in Reading, a former light industrial town. We have enough brownfield land to build all the houses that are needed until 2036, and I understand from colleagues that many other boroughs, towns and cities around the country face a similar situation in which former industrial land is available but there is no funding to enable the local authorities to build. Does my hon. Friend agree that that should be a priority for this Government?

[Matt Western]

My hon. Friend makes another important point. This is absolutely about the cost of providing housing and land and about how authorities are facilitated to do that. This is the most pressing issue of our time, as I have said, and Government policy should be to help our local authorities. Indeed, at one of the meetings of the parliamentary campaign for council housing, which I co-chair with my hon. Friend the Member for Stroud, Lord Porter made it clear that, in his view,

“all the bad things in our society stem from bad housing, and the best way to fix any of those problems is to make sure as a fundamental that everybody’s got safe, secure, decent housing.”

I could not agree with him more.

We only have to walk down streets such as the Parade in Leamington Spa—and, I am sure, any of the high streets across the country—to see some of the casualties of this crisis: rough sleepers curled up in our doorways or sitting at street corners crying out for help, asking for loose change, desperately trying to create personal order out of social disorder. Inevitably, there will be an ex-forces person among them, but no matter—they are all one community now. Surely civvy street was not meant to be this uncivilised or, for an ex-soldier, this ungrateful.

To understand how we got here and where we need to go, it is worth briefly considering the past and how times have changed. Had soldier Y been lucky enough to have been returning from the first world war rather than from Afghanistan 100 years on, he would have been greeted by the then Prime Minister’s promise of “homes fit for heroes”. Lloyd George recognised the importance of social provision and knew that because house building would be difficult it was only through subsidies that local authorities would be able to afford to deliver them. His progressive social and local authority approach kick-started the sector and resulted not just in a growth of housing supply but in improved standards in all new homes. It was actually following world war two that the council house really arrived. Enlightened administrators strove to deliver them, and none more so than the Attlee Government, which, despite the ravages of war and the shortage of materials, managed to build more than 1 million new homes to replace many of those that had been destroyed.

Grenfell: Government Response

Matt Rodda Excerpts

Monday 10th June 2019 Commons Chamber

[James Brokenshire]

The hon. Lady has made various statements in respect of what did or did not happen at that time. It is precisely those elements that are part of phase 2 of the public inquiry, and it is right that there should be that proper scrutiny and investigation. Phase 1 is about what happened on the night, phase 2 is about the broader issues, and that inquiry will provide the scrutiny and detailed challenge that I think she is looking for.

[Matt Rodda (Reading East) (Lab)]

I thank the Secretary of State for his update. Two years is a very long time. I can only imagine the suffering and stress that the residents of Grenfell and the local community have had to endure in that time. Many other residents around the country, such as those in Reading living in flats with dangerous cladding, have also endured suffering and stress. Will the Secretary of State now commit to take urgent action? Will he visit Reading to see the flats in my constituency that are covered in dangerous cladding, as well as other buildings that may be dangerous, such as overcrowded houses in multiple occupation and shoddy conversions of office accommodation into flats?

[James Brokenshire]

On the last point, the hon. Gentleman may be aware that we are conducting an examination of some of the evidence around office-to-residential conversions. The point he makes is one that I have heard, which is why we are pursuing the issue further. He makes various other points about his constituents and residents. If there are particular points he wishes to make to me, my ministerial colleagues and I stand ready to respond to him. His call for action is one that I hear and will respond to.

Permitted Development and Shale Gas Exploration

Matt Rodda Excerpts

Thursday 28th March 2019 Commons Chamber

[Matt Rodda (Reading East) (Lab)]

It is a pleasure to follow my hon. Friend the Member for Swansea West (Geraint Davies). For me, the context of this debate is quite simply the deeply worrying issue of climate change. We face a stark choice if we are to avoid extreme and potentially unstoppable change to the climate: do we continue to develop and exploit fossil fuels, or do we leave them in the ground? It will be extremely difficult, if not impossible, to stop dangerous climate change if we do not leave fossil fuels, including gas, in the ground. We can and must take a more responsible and sustainable approach, and that is why we need to stop the exploitation of shale gas.

I also want to talk about the issue of local planning, which other Members have spoken about today. There have been test wells in eastern Berkshire and other parts of the south-east, as was mentioned earlier. Many residents in Reading, Woodley and the Thames valley have deep concerns about our local environment. In our area, there is a long history of concern about the effects of noise and pollution from major infrastructure projects such as the expansion of Heathrow and large-scale gravel extraction. The very last thing that residents in our part of England need is a major new environmental threat.

I am conscious of the time, but I just want to add my support for a range of other points that have been made today. In particular, I would like to support and endorse the concerns that have been expressed about the relative weakness of the planning system and about the Government’s policy on energy—particularly renewable energy—and their deeply mistaken policy of cutting the feed-in tariff and not investing in wind power, solar energy and other renewables such as the tidal power project in Swansea bay. These mistaken energy policies stand in stark contrast to the policies of many other Governments, including the last Labour Government.

[Matt Western]

Will my hon. Friend give way?

[Matt Rodda]

I am afraid I am running out of time.

We have just 12 years left to reduce carbon emissions dramatically. Local communities around the country have serious and substantial concerns about fracking. Given the climate crisis and the need for radical change in energy provision, and given the indisputable local concerns, shale gas exploitation has to stop, and it has to stop now.

Homes (Fitness for Habitation) Bill

Matt Rodda Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Friday 26th October 2018 Commons Chamber

[Matt Rodda (Reading East) (Lab)]

I rise to speak in favour of the Bill and to urge the Government to go further. I wish to point out just how serious the issue of poor-quality private rented accommodation is in my constituency and to show why urgent action is so sorely needed.

Just last week, I met a constituent who was desperate for help. She is a single mother who lives in damp terraced accommodation, with mould growing on the walls. She was desperate. Her son and daughter both have problems with their breathing. One of them has asthma and was seeing the doctor about it. She had asked the landlord for help, but he was unwilling or unable to make changes to the property and solve the damp problem. She is applying for a council house, but because of the severe shortage in places such as Reading and Woodley, she is unable to progress quickly up the list of those seeking homes. The woman’s plight explains the seriousness of the issue and why urgent action is needed.

In Reading, nearly a third of houses are in the private rented sector. There are many good landlords, but there are also many who do not provide a good service. Problems with damp, difficulties with landlords and high fees all make for deep-seated problems that affect thousands of local people. At the same time, as was mentioned earlier, councils have few powers to tackle rogue landlords and there are simply not enough good- quality private rented properties or council houses available in many parts of the country. I urge Ministers to take steps to address this serious problem by considering Labour amendments to the Bill and other related measures on the issues that affect the wider housing sector.

Several amendments to the Bill were proposed, and I am grateful to the Government for taking some of them on board. I hope that they will look again at one in particular. Earlier this year, I spoke about the potential loophole that allows landlords to charge for items such as lost keys. That could provide less scrupulous landlords with a loophole through which they could bypass the Bill’s intent. I urge the Government to look into the matter again.

Other changes that are needed include a much larger programme of council house building and wider measures to improve the planning and development sector.

I urge the Government to support Reading Borough Council’s bid for about 140 new council houses and ask them to go much further in considering the funds that are available for council house building. In my area, we could easily find families to fit into another 1,400 council properties, let alone the 140 that have been bid for.

[Kevin Foster]

I welcome the spirit of the hon. Gentleman’s speech. Does he agree that his local council may well benefit from the removal of the cap on borrowing to fund housing and therefore might be able to fund more of the council houses he is talking about?

[Matt Rodda]

I do welcome that. My council colleagues tell me that they are waiting for further details from the Ministry of Housing, Communities and Local Government, and I look forward to Ministers being more amenable to local authorities on this matter.

To sum up, as time is pressing, poor-quality rented housing is a serious issue for many residents and urgent action is needed to address both the problem of rogue landlords and the problems in the wider housing market.

--- Later in debate ---

[Kevin Foster]

What I would say to them is, as an Opposition Member said earlier, “If you are renting out a property that is unfit for human habitation, you really should not be in the business of being a landlord. If that is the standard of what you are renting out then, bluntly, we do not want you to carry on.”

Will there be an impact on availability? Possibly, but—and it is a very big but—if someone cannot afford to do a property up to the standard where it is fit for habitation, they have an obvious option, which is to sell the property to someone who can. Another option is to discuss with the local authority whether planning permission needs to be granted to allow for a proper redevelopment.

I recently went to see a superb development in Paignton. It used to be poor-quality, guild house-style accommodation. In theory it was sheltered accommodation, but it was more like guild house-style accommodation, with shared bathrooms and facilities that were not particularly good. It was on the site of a former brewery. It was really not that great and the local housing association took the view that it did not meet the standard. It has been done up properly and there are now 22 new homes. The new apartments are modern properties that meet modern standards of disability access; the facilities reflect this era, rather than the 1950s; and young families have moved back in.

Let us be clear about what happens when we take action on housing standards. I know my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie) will agree with this point; indeed, he probably made his intervention so that I would put it on the record. There is always the theory that when we introduce legislation and take action on housing standards, we might reduce the supply and make it more difficult or more expensive—because if we contract the housing supply, the price clearly goes up—for the tenant to find housing. However, in my experience when enforcement action is taken by local authorities, which will still happen, in many cases it results in the same amount of housing, or even slightly more of it, but this time of the right standard.

If a landlord feels that one of their properties is not up to standard—again, I refer to the landlord with a property in Paignton—they should start engaging with the local authority. Most councils will be reasonable and sensible if a landlord is trying to do the right thing. That could mean looking at how the property is used, perhaps converting the property or getting planning permission to allow the proper redevelopment of the site, as happened in Paignton. I am happy to take another intervention but I think that my hon. Friend can be reassured that, although there is always an argument about how much we do in terms of pushing measures so far that we reduce supply, this Bill will not do that. In fact, it could reduce the supply of completely unsuitable accommodation and increase the supply of the type of rental properties that we want to see.

Let me turn to the matter of implying terms into a lease—a sensible and proportionate measure. For those wondering what that means, this is about how the legislation creates the civil enforcement. Any tenancy will now contain this provision in the lease. As has been said, this is not about bringing back a piece of Victorian legislation, where the maximum rental price is now woefully out of date—probably as historical as the piece of legislation itself. Rather, this is about having a modern piece of legislation that does not come with the idea that every so often we need to decide the maximum rent to which it would apply. That makes this a more secure piece of tenancy legislation.

Following amendment in Committee, it would be interesting to understand how the Bill will affect those who rent out a property in a block where the leaseholders are the freeholders. A concerning issue came out following the fire safety work in Torbay after the Grenfell Tower fire. To be clear, there is not a large local authority owner of tower blocks in Torbay, as some hon. Members might have in their constituencies. We have a lot of apartment blocks and blocks of flats, particularly for those entering retirement, where the leaseholder is the freeholder—that is, the leaseholder owns a share in the freehold—and some of these flats may be rented out. In these cases, the freeholder, who is supposed to be dealing with certain issues and maintaining certain safety standards, has absolutely no incentive to enforce against its own shareholders. In fact, the shareholders are not very keen at all for the freeholder to take enforcement action.

There was an example in my constituency whereby a block had been built in the late 1960s—not a dissimilar era from that of Grenfell Tower. There were two apartments on a floor, which had two fire doors, then the corridor and then the door to the stairwell. About 20 years ago, the owner of one flat bought the other flat on the floor and turned it into one property along the whole floor, so instead of having two doors and the fire door to the stairwell, there was now just a fire door to the stairwell. This had not been picked up, partly because the freeholder had no great incentive to take action against the leaseholder, because the leaseholder was the freeholder. In the Minister’s contribution, she might wish to reflect on whether a tenant of a leaseholder would be able to enforce against the freeholder in such a situation.

[Matt Rodda]

Does the hon. Gentleman agree that there is a related issue—cuts to fire services—to which he is almost referring in his very thoughtful contribution? I have had representations from Royal Berkshire fire and rescue service about the dire need for more fire safety officers, who take a long time to train. Many properties in multiple occupation actually have multiple fire safety issues, including small adjustments made by landlords and tenants, as the hon. Gentleman has described, and because of the nature of the buildings, which are often old and in some cases dilapidated. I have heard some very concerning stories about this in my county. Will he refer to that aspect?

Tenant Fees Bill

Matt Rodda Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Wednesday 5th September 2018 Commons Chamber

[Mr Goodwill]

Yes. As a landlord myself I am aware of how that operates. We have talked about private landlords and social landlords. I like to see myself as a social landlord: I do not see what I provide to my tenants as being any different from what is provided by a housing association or a local authority—indeed, I like to think I give a better service. Still, it is right that this legislation has been introduced, particularly as double-charging could take place, with both tenant and landlord paying fees to the letting agent and the letting agent doing very well out of that.

I do not agree with the Labour shadow Minister, the hon. Member for Great Grimsby (Melanie Onn), about the fines in amendment 1 and 2. A £5,000 fine for a landlord is already equivalent to a year’s rent for many properties in my part of the world. As I said, having much larger fines could jeopardise the business of such landlords. I also do not support amendment 4, tabled by my hon. Friend the Member for Shrewsbury and Atcham (Daniel Kawczynski). We must do everything we can to help people to get into housing—I would prefer that they were able to buy their houses, but if not, we must help them to get into the rented market. A problem people often face when moving house is that the deposit put on the previous house is not made available at the same time as the new tenancy takes effect. Therefore, having to find, for example, six weeks’ rent at £100 a week plus another six weeks’ rent at £100 a week, plus maybe a £300 fee, as the amendment suggests, means a person looking to rent a two-bedroom flat in Scarborough or Whitby would need to find £1,500 of cash just to make that house move.

I was appalled to hear the nightmare stories mentioned by the right hon. Member for Birkenhead (Frank Field). As my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) made clear, the tenants’ redress scheme introduced in 2014 means that the landlord can no longer see that money as their own money that they can snaffle when the tenant moves; instead, they need to demonstrate that real damage has been done or there are real problems that require that money to be used. In the past, I am afraid, I have heard horror stories where reasonable wear and tear was put down as damage or a slight scratch on the wall was taken to indicate that a whole room had to be decorated. I was pleased to hear from the Minister that he is looking at the possibility of a passporting scheme for these deposits. That is desperately needed because it is so frustrating for a tenant wishing to move that their deposit, which they will get in due course, is frozen and cannot be used to pay the next deposit.

To return to amendment 4, it is not reasonable to introduce these fees of £200 or £300. That would become the norm and, to be fair, it is the landlord who is getting this service: it is the landlord who is interested in the creditworthiness of the tenant and who wants to see the legalities and the administration done correctly, and therefore it is not unreasonable for the landlord to pick up the bill. Indeed, many landlords will do much of this work themselves, and tenancy agreements are available to download which makes doing that much easier.

In supporting the Government amendments, I hope that my hon. Friend the Member for Shrewsbury and Atcham will not press his amendment. We certainly would not want the Opposition amendments to be pressed.

[Matt Rodda (Reading East) (Lab)]

I am grateful for the opportunity to speak in this debate, having spoken on Second Reading in May. It is also a pleasure to follow my hon. Friend the Member for Great Grimsby (Melanie Onn) and other Members.

In Reading East we have seen increasing numbers of young people and families entering the rental market, and it is in the vital interests of these residents and all my constituents that the rental market in our area is affordable, transparent and accessible. However, as with many other constituencies, rising rents, large deposits and high letting fees are increasingly causing difficulties for those seeking to access rented accommodation.

Along with my Labour colleagues, I welcome the Bill as a first step towards establishing a fair and reliable rental market for tenants in my constituency and across the country. However, I remain concerned that the Bill does not go far enough in its protection for tenants. In particular, I am concerned that it does not go far enough to protect tenants against default fees. As we have heard, these are the fees that are chargeable if a letting agent or landlord incurs costs due to a tenant’s actions, such as replacing a lost key or making a late payment. These fees are set at the discretion of the landlord or the agent, and have been described by agents themselves as a back door to reclaiming income lost through this Bill. I share the concern expressed by the Housing, Communities and Local Government Committee and by other respected organisations such as Shelter and Citizens Advice that the lack of clarity regarding default fees creates a major loophole that could expose tenants to unreasonable fines from unscrupulous landlords or letting agents.

[Dr Drew]

In a survey that I conducted in Stroud, I found that the agents were making just that point. They want complete transparency and fairness in relation to tenants as well as landlords. Does my hon. Friend see the Opposition amendments as a way in which we could strengthen the Bill and deliver that?

[Matt Rodda]

My hon. Friend makes an interesting point, and I urge the Minister to take this opportunity to listen to him and to the points made by our Front Benchers.

Amendment 3 provides a clear definition of default fees and limits the amount that could be charged, while still allowing landlords and agents to charge for expenses where there is a clear cost. It would provide clarity for all parties and, crucially, it would provide tenants in my constituency and elsewhere with the protection from exploitation that they so desperately need. Surely colleagues across the whole House would agree that that is the right thing to do. I therefore urge the Minister to consider this amendment and to consider strengthening the Bill to provide limits on what can be charged for. I urge him to take this opportunity to protect tenants from exploitation. It is time for the Government to listen to tenants and to deliver a fair, accessible and accountable rental market for all.

[Richard Graham (Gloucester) (Con)]

I rise to support the Tenant Fees Bill, which has been so clearly presented today by the Minister. The abolition of most up-front fees, the capping of security deposits at six weeks’ rent, the reduction of costs to tenants in the private sector potentially by hundreds of pounds and the increasing of transparency in the housing market—surely we can all unite in saying that these characteristics of the Bill are a good thing. We have all met constituents who rent and whose fees have gone up by roughly 60% in the period between 2010 and 2014 and who have been charged fees for the most bizarre and sometimes unfair reasons—including, for example, checks being made by the same agency on the same tenant for a different property in a short space of time. As my right hon. Friend the Member for Scarborough and Whitby (Mr Goodwill) mentioned, those fees should be paid by the landlord if they are going to be paid by anyone. As rents and demand increase, the unfairness in the marketplace from a few—I stress a few—landlords and agents that is tolerated by law requires a response from the Government.

However, the Bill is not just about saving money and increasing transparency. The principle of fairness will also be boosted because all landlords will have to be members of a redress scheme, and because tenants should have easier access to dispute resolution. That is an issue that many of us will be familiar with through our own surgeries. Agents will have to be registered as members of a client money protection scheme, as many already are, and banning orders and a database of rogue landlords will be introduced. We all know about the frequent suspects whose properties consistently fail environmental health inspections, and I suspect that they will find their way on to that list unless they change their habits, which is the point of the Bill. At the same time, there will be a further consultation on benefits and barriers relating to longer-term tenancies, which I also welcome.

The ban on fees, the capping of security deposits and much else has already been welcomed by many organisations, such as Which? and Citizens Advice, and on the face of it there is no reason why anyone should object to the changes. However, there are of course some who have opposed some of the detail of the legislation, and at a time when trust is such a crucial element in the relationship between tenant, agent and landlord it is worth touching on those objections.

Tenant Fees Bill

Matt Rodda Excerpts

2nd reading: House of Commons
Monday 21st May 2018 Commons Chamber

[Matt Rodda (Reading East) (Lab)]

I am grateful to be able to speak on Second Reading and to discuss an issue that is relevant at both national and local level. It is also my pleasure to follow the hon. Member for Lewes (Maria Caulfield).

I welcome the Bill, which has long been delayed—the issue was raised by Labour in 2013 and adopted in our 2015 manifesto. Rising house prices in my constituency mean that the rental market is growing rapidly. Since 2009, median house prices in Reading East have risen spectacularly by 175%, from £197,000 to £344,000. Increasing numbers of young families as well as single people are entering the rental market.

Some renters are satisfied with their properties, but in my experience far too many find themselves footing bills for housing that is in poor condition, or for tenancies without any long-term certainty. Nationally, 1.6 million families with children are renting privately, with their long-term plans depending on the reliability of landlords who can evict them with one month’s notice. Meanwhile, letting fees, burgeoning rents, and high deposits present an affordability challenge for tenants. It is therefore in the vital interests of all my constituents that the rental market be maintained as affordable, transparent and accessible. I welcome the Bill as a first step towards establishing that fair and reliable rental market.

The Bill will have a positive impact in abolishing up-front fees to enhance clarity and control for tenants. Letting-agency fees restrict the mobility of renters, thereby removing one of the prime incentives of renting a property. On average, tenants pay £272 per person in fees with each move, on top of rent in advance and deposits. Alarmingly, one in seven tenants are charged more than £500 to enter rented accommodation. Over the past five years, renters have racked up a staggering bill of £678 million in agency fees.

Moreover, there is a lack of consistency in setting those costs. Research by Shelter has found broad variations across letting agents—reference-check fees range from £30 to £220, and tenancy renewals cost between £35 and £150. I welcome the premise of the Bill—the measure was initially promised in the 2015 Labour manifesto—but I note that both the Prime Minister and the Chancellor of the Exchequer have previously voted against a motion abolishing letting fees. I am delighted that the Government have decided to change their mind.

Default fees are chargeable if an agent or landlord incurs costs due to a tenant’s actions. They have been described by agents as a back-door route to reclaiming lost income. Agents have admitted openly to the Housing, Communities and Local Government Committee that they will charge disproportionate default fees to make up for loss of revenue, which is an extraordinary admission from the industry about its intentions to exploit loopholes in the Bill. I am concerned that there will be cases of a brush coming with an associated charge of £45, or of £130 being charged for a missing TV remote. These default fees are set at the discretion of the agent or landlord, and there is no cap in the Bill on the cost to tenants. There is an urgent need to strengthen this legislation to provide limits on what can be charged for and to ensure that any charge made is reasonable. If relevant additions are made to the Bill to resolve this flaw, the legislation’s good intentions will be preserved.

The second aspect of the Bill that I would like to discuss concerns tenancy deposits. Although I am glad that the Government have decided to issue a cap on tenancy deposits, I am disappointed that the Select Committee’s recommendation to cap deposits at five weeks’ rent has been rejected, as the hon. Member for Harrow East (Bob Blackman) mentioned. The Government have opted for a six-week cap, which means that renters in the south-east of England will still have to find an average of £1,800 to place a deposit. This is at a time when the majority of landlords already take deposits for six weeks or less. As such, the Bill will not change the realities of access to housing for renters, particularly in an area such as mine.

Thirdly, I voice my support for robust enforcement. I am glad that tenants will be given access to a first-tier tribunal to enforce the regulation, and I am pleased to see penalties being put in place for breaches of the rules. However, sufficient funding must be released to allow for the enforcement of the ban on letting agent fees. Without proper resourcing, the measures in the Bill are likely to fall short.

In general, the Bill has the potential to make significant savings for tenants in—and enhance the transparency of—the private rental sector. I am pleased that the Government have listened to calls to make private renting fairer and more affordable. In fact, as I mentioned, the Labour party has been campaigning for these measures for a long time. Indeed, my right hon. Friend the Member for Wentworth and Dearne (John Healey) first recommended them in the Letting Agents (Competition, Choice and Standards) Bill in 2013. The Bill requires further scrutiny in several important areas—most obviously, the provisions on default fees. I ask the Government to provide further protections against the exploitation of tenants in this regard.

With proper amendments, the Bill can present a good first step towards balancing the rental market. I urge the Government to listen to these points.

Building Regulations and Fire Safety

Matt Rodda Excerpts

Thursday 17th May 2018 Commons Chamber

[James Brokenshire]

I wholly endorse what my hon. Friend has said in relation to the private sector. On the public sector, as I indicated in an earlier response, we are formulating our detailed guidance and information to go to local authorities but my intent is to see that that money is deployed as quickly as possible.

[Matt Rodda (Reading East) (Lab)]

I welcome Dame Judith’s recommendations. Does the Secretary of State now recognise the need for clarity across the building industry? When will new standards be in place?

[James Brokenshire]

We have talked about Approved Document B and other planning guidance. I want that to be out before the summer. We have had some consultation, but we need to make progress. I think that underlines my clear, driving desire to get on with things where we can but, obviously, where longer-term reform is necessary, to consider carefully to get it right.

Housing and Homes

Matt Rodda Excerpts

Tuesday 15th May 2018 Commons Chamber

[Matt Rodda (Reading East) (Lab)]

I am grateful for the opportunity to speak in this important debate. Housing is a central issue in my constituency, where, as across England, we face an acute housing shortage. For many years, home ownership grew in the Thames valley and across our country, with young people expecting to be able to afford to buy a place of their own or to have long-term secure and affordable rent of either a private or council house. Sadly, in the present time home ownership and good-quality home rentals are all too often out of reach for many people, particularly for younger people in areas like Reading and Woodley in my constituency, where house prices have risen to unheard of levels. Much of the new housing being built is aimed at the more expensive end of the market and private rented accommodation is often very expensive, and some of it is poor quality and poor value for money.

We desperately need homes that are genuinely affordable. There is a severe shortage of council housing, affordable homes to buy and good-quality private rented accommodation. I welcome the Government’s interest in prioritising brownfield land. In my constituency and in many other former manufacturing towns in England, there is a huge amount of brownfield land that can be built on without eating into the countryside or public open spaces. Indeed, Reading Borough Council’s local plan has identified enough former light industrial and commercial land to provide almost all the housing needed until 2036. The council has also identified land to build 1,000 council houses. Reading Borough Council, like many other councils, is doing what it can to help.

The Minister will know that Reading Borough Council had plans to build 1,000 homes to meet the rising demand for accommodation. However, this had to be scrapped following the 2015 summer Budget delivered by the then Chancellor, George Osborne. The former Chancellor made a serious mistake when he changed the financial rules, making it harder for councils to borrow and pay back the cost of building council homes from the rental income gained once the houses are occupied.

By contrast, I was proud to stand on Labour’s manifesto commitment, as we heard from my right hon. Friend the Member for Wentworth and Dearne (John Healey), to build at least 1 million affordable homes over the next five-year Parliament. Our record in government is clear. Between 1997 and 2010, we saw 2 million more homes built, a million more home owners and the biggest investment in social housing in a generation.

In the eight years since 2010, we have seen home ownership falling to a 30-year low and the lowest number of new social rented homes on record. The Government have cut investment in publicly funded affordable housing and relied instead on big developers to build, giving them too much control over what gets built. That is why in my area both Labour-run Reading Borough Council and Conservative-controlled West Berkshire District Council took the Government to court, winning a High Court challenge that means they and other councils can insist on more affordable housing being included in developments in accordance with their own local plan priorities. I hope that the Minister will consider that as a matter for potential policy change.

As I mentioned earlier, renting in my area is often expensive and can be poor quality. In my constituency, we have a particular problem with Victorian terraced houses that have not been fully modernised. Reading Borough Council and other Labour councils in Oxford and London have improved the regulation of landlords and have stood up for tenants, but much more could be done if the Government made it easier for councils to regulate the private rented sector.

At a local level, I have campaigned for a new deal on housing for young people, families and other residents who have been hit hard by the housing crisis. I am working with local councillors and other MPs to tackle this issue and to press for a new approach. In Reading East, as I have mentioned to the Minister in other discussions, this approach could involve much more use of brownfield sites, tighter regulation to encourage developers to build more affordable homes, allowing councils to build council houses once again and protecting renters by giving councils more powers to regulate landlords.

The current housing situation is indeed a crisis; it is unacceptable and unsustainable. Young people and other groups have a right to decent and affordable housing, and I will continue to press the Government for the new deal on housing that those renters and owners deserve—a new deal that Labour would deliver.

Local Government Funding

Matt Rodda Excerpts

Wednesday 28th March 2018 Commons Chamber

[Matt Rodda (Reading East) (Lab)]

I am grateful for the opportunity to speak in this important debate. I would like to add my support to the comments made by my hon. Friend the Member for Denton and Reddish (Andrew Gwynne) and many other Opposition Members. I would also like to steer the debate gently back to reality and away from the comments of the hon. Member for St Austell and Newquay (Steve Double), who somewhat contradicted himself by talking about the need for more spending and less spending at the same time.

As we have heard, grants from central Government to local councils have been cut by nearly 50% since 2010, and there has been a 28% real-terms reduction in local authorities’ spending power. In my constituency, Government funding has been cut by nearly £58 million. In 2010, the council was relatively well supported by central Government, but after 2020 it is looking forward to a future with no central Government grant whatever. I am sure all Members are concerned about the fact that the Government have no long-term funding plan for local authorities. There is absolutely no clarity about how local government will be funded when the four-year deal runs out in March 2020, just two years from now.

Let me return to the impact of the cuts on my constituents in both Reading and Woodley. While Government funding has fallen, the cost of providing services has risen and continues to rise. Reading Borough Council has a strong track record of maintaining necessary services for residents. Unlike neighbouring Conservative-run West Berkshire council, it has kept all its libraries open. It has maintained award-winning parks and a council-owned theatre, as well as a wide range of the vital frontline services that ensure—as other Members have pointed out—that vulnerable children, adults and families are protected. However, like many councils throughout the country which have a statutory duty to provide adult and children's social care, Reading is forced to make cuts to other services just to balance the books.

A recent National Audit Office report on the sustainability of local authorities found that, nationally, the knock-on effect of such cuts is a reduction in spending on other hugely important services on which we all rely, such as planning and development, highways and transport, and housing. Housing is a vital service in Reading, as it is in many other English towns. Local people rely on and expect councils to be able to provide a wide range of high-quality public services, including services for the elderly and for children, and care for vulnerable adults.

[Mr Jim Cunningham (Coventry South) (Lab)]

I agree with everything that my hon. Friend has said so far. I am sure he has noticed the tone of today’s debate. The Conservatives are blaming Labour local authorities while shifting on to them expenditure that central Government should be funding, and then telling us that we are spending too much money.

[Matt Rodda]

I wholeheartedly agree with my hon. Friend. I am sure that the situation in Coventry is very similar to that in my own area.

I am proud of the achievements of my Labour-led council, which provides vital services for the people of Reading while under intense financial pressure, but the current funding situation is not sustainable in the medium or the long term. The Government have failed to stand up for local communities. They have forged ahead with their failed austerity agenda, and—as has been pointed out by my hon. Friend the Member for Coventry South (Mr Cunningham) and many other Members—have left councillors to make the most painful decisions about which vital services will be cut.

Sadly the Secretary of State is no longer present, but I say this to the Minister. Surely it is time for the Government to listen to local authorities—to listen, indeed, to some of their own local councillors—and to deliver the fair and adequate funding for local councils that we all know they deserve.

Council Housing

Matt Rodda Excerpts

Tuesday 27th March 2018 Commons Chamber

[Matt Western]

I thank my hon. Friend for his timely intervention. He is of course absolutely correct. One issue we have had over recent decades is that so much of this property has fallen into the hands of landlords and others, the investment has not been made, and they are now charging extortionate rents. Had it been left to local authority provision, those renting would be able to afford the properties more readily.

Organisations that bid for Government grants were told to re-let homes for low-cost social rent at the new so-called “affordable rent”. It is now estimated that 150,000 homes for social rent have been lost in the past five years. More recently, the Government proposed to add to the sell-off by extending the right to buy to housing association tenants, funded by an extraordinary forced sell-off of council housing to the highest bidder.

[Matt Rodda (Reading East) (Lab)]

I associate myself with my hon. Friend’s points and the genuine and deep concern that he shows for the needs of tenants throughout the country, many of whom are struggling with high housing costs, as indeed they are in my constituency. Does he agree that it was an outrageous mistake and serious error by the Conservative Government to stop many local authorities building council houses when they had fully costed schemes that were ready to go and, indeed, shovel-ready? Reading had a plan for 1,000 new council houses, but unfortunately it was stopped by George Osborne in 2015.

[Matt Western]

My hon. Friend is, of course, absolutely correct. There is a suppression of building low-cost rental properties by local authorities. Those local authorities know that there is a need, and we must allow them to have that responsibility. Preventing them from supplying that housing has had a huge social and economic cost in our communities.

[Matt Western]

I thank my hon. Friend once again. Not only is she very well informed, but she is very experienced in this matter. She is absolutely right. The high levels of housing that we have needed over the decades have been delivered by a mix of providers. The crucial element that is now missing is the housing that is provided by local authorities. In its absence, we will never achieve the objective that has been set by the current Government. If we look through the decades, we can see how, in the post-war periods of the 20s and then the 50s and 60s, the local authorities were allowed to ensure a good supply of housing, which they recognised was needed because of the constraints in the private sector.

It is worth looking at this matter in the round. Over the past 10 years, the overall supply of new homes has seen an under-delivery of at least 80,000 to 100,000 homes a year. The result is that the UK faces a desperate shortage of at least 1 million homes. The Royal Institution of Chartered Surveyors now forecasts that we will reach a shortage of 1.8 million low-cost rental properties—that is just low-cost rental properties—by 2022.

All areas of the UK need housing, both public and private, but there is particular and desperate need for low-cost housing for rent. In my constituency there are more than 2,400 people on the housing waiting list. Homes are being built, but not enough are under construction to satisfy this social need. Once again, it is the wrong mix of housing that is being delivered. So, what is the answer? Of course, opinions vary, and the solutions presented to the electorate in last year’s election showed clear blue water between the main parties.

Recognising the critical importance of the housing shortage in its 2017 manifesto, Labour committed to the creation of a new department for housing. Importantly, on house building, we promised at least 1 million new homes over the next Parliament, which, as we now know, can be a very short time, and a new target of 250,000 new homes a year being built by 2022. Of those, at least 100,000 per year, or 40% minimum, would be genuinely affordable homes to rent and buy per year, including the biggest council house building programme in more than 30 years. If I am honest, I would personally like to see a lot more.

Subsequently, at the autumn party conferences, much time and debate were given over to this challenge, and the Prime Minister announced that she was committed to delivering 300.000 new homes. Specifically, she stated that £2 billion would be committed to helping the delivery of affordable housing, but, of course, that equates to just 25,000 properties. Clearly, housing is rising up the political agenda, and it is now one of the biggest domestic issues that we face.

My contention is that we now face a social crisis that is without precedent in the past 50 years. We have thousands of families without their own homes, waiting desperately for accommodation. We have record numbers of people rough sleeping. In my constituency of Warwick and Leamington, we have the highest number in terms of people per 1,000 of the population in the whole of the west midlands. Over the decades, the overall supply of housing has not delivered. Now must be the time to change that.

I am convinced that council housing was, is and will be the answer to our housing crisis. The Government need to release local authorities from the bounds of their borrowing cap and allow them to use their pension funds to invest in their communities. The use of public land holds the key to unlocking the potential to deliver this. Simply selling public land to the highest bidder will not solve anything. Land is the fundamental denominator in the cost equation of UK housing, and the planning process surrounding it needs urgent, radical reform.

Building more council housing solves at least two key problems: first, the lack of genuinely affordable housing for those who cannot afford market rents; and secondly, the chronic under-supply of housing that is the root cause of our housing crisis. As I said, there is a lack of genuinely affordable housing, with historically high waiting lists of 1.16 million households nationally. The easiest way to help those in need is to provide council housing. If we fail to do this, the result will be increasing homelessness, which we have witnessed more than doubling nationally since 2010. Another, less frequently made, argument is that building more council housing is the key to boosting overall supply, thereby addressing the root cause of the UK’s housing crisis.

The Government’s own target is to build 300,000 new homes each year, but the number of additional homes delivered in 2016-17 was 217,000, falling well short of their target. Although last year was the first year since the financial crisis in which over 200,000 homes were added—and I do applaud that—it was not enough, and the wrong mix of homes is being built. It is now stated that 300,000 houses would just about keep up with demand. Even if the Government hit this target, it is unlikely to bring down house prices and rents significantly. Also, in order to deliver those 300,000 houses, we need all providers to be supplying into the process.

History provides important lessons. It is no coincidence that house building rates reached their post-war peak during the 1950s and ’60s, when successive Governments were committed both to private sector and public sector house building. At the time, housing was plentiful and house prices stayed low, so that many on low to average incomes could afford to rent or buy their own homes. The success of the ’50s and ’60s shows that prioritising council housing need not be a partisan issue. Harold Macmillan, the Conservative Housing Minister from 1951 to 1954, initiated some of the greatest council house building programmes in order to meet his target of building 300,000 homes a year. During those Macmillan years, local authority housing made up 87%, 84%, 77% and 69% of completed dwellings per year respectively. This compares with just 1% in each of the past four years under this Government—or about 20% each year if we include housing associations as well as councils. Importantly, as I have illustrated elsewhere—I want to give credit where it is due—post-war Conservatives recognised that the public sector must build the homes that the private sector will not build during a housing crisis, which is where we find ourselves.

So why will this Government not do that? I would like to believe that it is not simply ideology that says that the state is bad while the private sector is good and will solve all our problems, because this crisis is holding back our country socially and—I cannot stress this enough—economically. I believe that there is a duty on one-nation Conservatives to come forward and urge the Government to commit to a mass council house building programme if they are serious about solving our housing crisis. In this light, I have recently relaunched, with my hon. Friend the Member for Stroud (Dr Drew), the parliamentary campaign for council housing. I invite all MPs to get involved with this cross-party initiative that aims to see more council houses being built.

Central Government policy currently acts as a disincentive for councils to build more council homes: first, because, there is next to no funding from central Government for the provision of council housing; and secondly, because there has been just £5.9 billion gross investment in social housing in 2015-16 compared with £10 billion in 2009-10, and the vast majority of this will be directed to housing associations.

This compares with the £22 billion forecast to be spent on housing benefit in the 2017-18 financial year, which is a direct result of not building the housing we need. Is that not ironic? Surely the Government would rather not line the pockets of landlords in the private sector, but prefer to invest long term in the council housing that we need. Is that not pragmatic? The additional £2 billion investment announced by the Prime Minister at the conference was welcome, but it will only provide a few thousand homes by 2021, including the affordable homes that can be anything up to 80% of the market rent. The money is not ring-fenced for genuinely affordable social rents.

As I said earlier, the borrowing cap stifles a council’s ability to build where councils can currently only borrow up to a certain amount to invest in council housing. I welcome the announcement in the Budget that the Government will raise the cap by a total of £1 billion for areas under high affordability pressures, but more needs to be done. If the Government accept that the cap stifles building, why will they not lift it entirely for all areas, as has been done in Scotland?

[Matt Rodda]

Does my hon. Friend agree that there is a considerable need for greater house building in high-cost areas, and that there is actually a lot of available land in many of those areas? There certainly is in Reading. In our case, it is brownfield land from our light industrial past, and I assume that that may also be the case in Warwick and Leamington. Does he agree that urgent Government action is needed to free up that land in order to support the local economy in those areas and to support local public services? There is a particular pressure on local schools and the NHS in my constituency, as people move to lower-cost areas. Will he endorse my points?

[Matt Western]

I thank my hon. Friend for his informed and relevant intervention. He is of course absolutely right that this essentially leads to what may be described as social cleansing. We may actually be creating ghettoes of particular types of community, when we should be striving for sustainable, balanced communities for our economic and social good. I totally endorse my hon. Friend’s points.

It is estimated that lifting the cap would allow £7 billion to be injected over five years, providing an additional 60,000 council homes. Even the Treasury Committee, chaired by the right hon. Member for Loughborough (Nicky Morgan), has called for this and stated:

“raising the cap would have no material impact on the national debt, but could result in a substantial increase in the supply of housing.”

The Local Government Association agrees. In my view, we should lift the cap entirely and take borrowing to invest in council housing off the country’s balance sheet, as is standard in other European countries. Why not?

Returning to the use of land and its availability, there is clearly much land available, but it is questionable in terms of its efficient use. As my hon. Friend the Member for Reading East just alluded to, there is land—including public sector and brownfield land—but it is all about the planning process and how that land is brought into the equation in order to deliver affordable housing. The current planning policy framework makes it prohibitively expensive for this to happen. The whole process needs radical reform.

Councils are currently incentivised to sell off the overpriced land that they own to highest bidder, rather than to use it for the common good. This needs to be reconsidered urgently. I am calling for us to recognise this national crisis in housing by legislating for all unused local authority and public sector land to be used exclusively for council housing. That is the nature of the crisis we face.

The inflated land prices across the country are preventing local authorities from being able to assemble the land to build on. Land is currently priced at its potential future development value, rather than at its existing use value, as is done in other countries. This pushes up the cost of undeveloped land that would be suitable for housing development, making investment in council housing more expensive. Bizarrely, it also rewards landowners for housing and infrastructure developments to which they do not contribute.

The homelessness charity Shelter has argued that a few small reforms to the Land Compensation Act 1961 and associated legislation on compulsory purchase orders would enable local authorities to purchase land at a fair market value—one that reflects both the current value of the land and reasonable compensation, and allows for the delivery of high-quality, affordable developments. This is not rocket science; it is not complicated. That is what they do in other countries in Europe and elsewhere. It is just about changing the planning approach so that it favours the local authorities.