Renters (Reform) Bill (First sitting)
Matthew Pennycook ExcerptsTuesday 14th November 2023
(2 years, 9 months ago)
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The Chair
There being no further interests to declare, we will crack on with the evidence. I call the shadow Minister.
Matthew Pennycook (Greenwich and Woolwich) (Lab)
Q
I will start with section 21. This was the Government’s manifesto commitment and is in many ways the centrepiece of the legislation, but clause 67 of the Bill has always given Ministers discretion as to when the system is introduced. A two-stage transition has been advertised, but the Government have recently made it clear that they will not abolish section 21 until unspecified court reforms are in place. Could you give us your views on those? Specifically, have the Government been clear enough about what they mean by court reforms? What are the criteria by which improvements will be judged?
The Chair
I should say at this stage that it is not necessary for all witnesses to answer all questions. Just answer those questions that you feel particularly interested in.
Dame Clare Moriarty: The thing we really want to underline is the urgency of passing this Bill, introducing it and allowing tenants to benefit from its provisions. We are currently helping nearly 100 people a day with section 21 evictions. The longer the current situation continues, the more problematic it will be. We are seeing a very consistent rise in the number of people coming to us with homelessness issues.
Anything that looks at what needs to be put in place before the provisions can be brought into force, assuming they are enacted, needs to be looked at against that background. There may well be issues with the court system. It is worth remembering that only a minority of section 21 evictions actually go to court, because the majority of tenants leave at the point of getting a notice. It is an important symbolic issue, but it is not the biggest practical issue. Having looked at what is available and at what the Government say they plan to do on court reforms, I do not think it is very precise at this stage, but I am sure that work is going on in the background.
There is, in any case, an implementation timetable that will extend beyond Royal Assent. A reasonable thing to do would be to set that as the timetable for making court reforms, rather than making the provisions’ entry into force conditional on rather imprecise commitments about court reforms.
Polly Neate: This is a once-in-a-generation opportunity and has been years in the making. At Shelter, we support thousands of renters every year face to face and millions digitally. Without question, we are seeing increased homelessness as a result of section 21 evictions, so I really want to stress, first of all, the urgency of ending section 21 evictions—it is the most urgent thing in the Bill. A tenant is served with a no-fault eviction every three minutes. In our view, there really is no need to delay ending no-fault evictions because of the reform to the justice system. We agree that court proceedings could be made more accessible and more efficient, and that that could be beneficial to tenants, but we do not think that the vital reforms in the Bill should be held up.
In fact, we believe that a robust Bill would reduce the number of evictions by increasing security to renters, rather than causing a significant increase in the burden on the courts. It simply is not the case that all evictions that now occur under section 21 will in future be heard in the courts as section 8 evictions. Many tenants—probably most tenants—will continue to leave before the end of their notice period, and therefore before court proceedings. Also, many evictions that now occur under section 21 would not meet the threshold for eviction under the new eviction grounds.
The Government were always going to have to hold their nerve over this Bill. This is a brave and reforming piece of legislation, so there was always going to be lobbying for delays and for watering down. That was always going to be the case; I think the Government always knew that. We urge the Government to hold their nerve and not to hold up the vital provisions in this Bill, which will reduce homelessness, for the sake of much more minor reforms that are massively less urgent.
Darren Baxter: To build on what has been said, it is clear that this delay is unspecified. It is not clear at what point the Government would determine that sufficient reform had taken place in order to enact section 21: whether that is having put in place a process of digitalising the court system, or whether it is more of an “outcomes” measure with respect to caseload or waiting time being reduced. If this is the reason for delaying, there is an urgent need for clarity.
I absolutely back up what has been said so far: there is no need to delay this legislation. For landlords to go through the court process is fairly rare. Most tenants leave at the point at which they are sent a notice. In 2022, about 11,000 or 12,000 repossessions went through the court system in England and Wales. That is less than 1%: it is about 0.3% of all households who are renting privately in England and Wales. I understand why this is an anxiety for landlords, but we have to keep that anxiety proportionate to the great harms that an insecure private rented sector is doing. We have to move quickly to reform, particularly given that the consultation was in 2019. We have already been waiting a long time for reform to take place.
Helen Morgan
Q
Darren Baxter: We know from the data that local authorities capture why households come to them reporting homelessness, and why they then have a duty to house them, and section 21 no-fault evictions are a really significant part of that. Anything that reduces that flow will inevitably take some pressure off local authorities, so the more quickly you do this, the more quickly you stop one of the really significant drivers of homelessness.
Dame Clare Moriarty: We need to recognise that there is a whole range of problems with the housing market, including the extent to which rents are simply not affordable for many people. The local housing allowance is now seriously out of kilter with what people are paying for rent. That means that if you are on benefit in the private rented sector, a big chunk of your living costs go just on paying rent.
There are lots of broader questions playing into the pressures landing on local authorities. Having said that, section 21 evictions are definitely part of the problem, but they can be addressed, and the Government are committed to addressing them. As Darren was saying, this Bill has been a very long time in the making, and addressing the issue of insecurity for tenants, and the number of evictions that that is driving, has to be helpful. We should not kid ourselves that it solves the whole housing market problem, but it would make a real difference to people.
Polly Neate: I agree with all that. The Government have decided to remove the prevention duty and not replicate it for section 8 evictions, leaving it to the discretion of local authorities to decide when a duty is owed to tenants. Given the resource constraints and the issues in local authorities, there is a real risk that people just will not get the homelessness support that they need, so we urge that that be changed in the Bill.
It is absolutely right to say that no-fault evictions are not the only reason local authorities are overwhelmed by homelessness. The freezing of housing benefit and of local housing allowance is another major reason, and of course the really serious lack of social housing stock is at the root of this. This is not a magic bullet to resolve these issues, but the Government can remove a really significant factor contributing to the overwhelming pressure on local authorities.
Matthew Pennycook
Q
The Chair
We have two minutes left. Who can do this in two minutes? Polly.
Polly Neate: Answering as quickly as possible, we think it should be removed from the Bill.
The Chair
We have until precisely 10.55, at which stage we will call the session to order even if you are mid-sentence, so please be aware of the time.
Matthew Pennycook
Q
“Actually the truth is that while some landlords are leaving the sector, this sector is actually still increasing. That’s not terribly helpful to our argument, to be honest with you. But in the context of cost of living and rising costs we have to tell that story and link the two.”
Is it not the case that all the evidence would suggest that the sector is relatively stable, at about 20% of households, over recent years, and that it may even have grown, and that there is no evidence to suggest that we will see, as some claim, an exodus of landlords from the sector?
Ben Beadle: I am not going to sit here and say that after looking at the Bill, everybody is going to sell up. We are not scaremongering here. We are saying that some nips and tucks are necessary to give responsible landlords the confidence to deal with the reforms. As far as the webinar is concerned, I have been very clear that the sector is growing, but the reality is that whether landlords are exiting or not—and I would point to the Bank of England, which says that they are, and is a pretty reliable source for the most part—our members tell us that they are reducing their supply, rather than investing.
The reality is that although the sector might have grown, we still have 25 people, on average, applying per property. We have a massive demand and supply imbalance. Is that a result of renters reform? No. Is it a result of a lot of factors, including renters reform? Yes. I can point you towards the uncertainty about energy changes; I know that that has been dealt with, but it might be only a year or so before that comes back. I can point to taxation changes that are punishing individuals and forcing them perhaps to sell, and putting them between a rock and a hard place for their tenants. I can point to mortgage costs, and I can point to the fact that, I am afraid, we are all getting a bit old, and some of my members are selling off their stock because it is time to do that. It is a mix of those things.
Matthew Pennycook
Q
Ben Beadle: We have been very clear on this. We have not sought to block, or say that section 21 abolition will destroy the market, but we have been very clear that responsible landlords need alternative grounds on which they can rely, and need confidence in the system that underpins them. I sit as a magistrate, and I would be loth to compare different areas of the justice industry, because it is such a low bar that I don’t think it is worth comparing.
We have very grave concerns about how things are recorded. Although you can point to some of the statistics, a lot will depend on how cases are logged and when they come in. I have been involved in a number of discussions with senior members of the judiciary who have exactly the same concerns. Something may have sat in a post tray for three months but get logged as having come in today, for example, and that impacts the overall timings. The overall timings are worsening. I believe that there is a quid pro quo to some of this stuff. I am as frustrated as you that court reform has not happened, because I am very clear: Government should get on with it. They need to deliver something that feels like renters reform. There are lots of issues in the sector. Broadly, there is stuff in this Bill that we can support, but I cannot support section 21 abolition when the courts service is in such a state.
Matthew Pennycook
Q
Ben Beadle: I want timings to be much, much faster, and that needs to be supported by digitalisation. To deal with this, we need significant investment in the support team and additional judges. In London, we have seen evictions not take place because the right sort of stab-proof vests for bailiffs were not procured. That does not give me a great deal of confidence that Government is all over this like a rash, and we need to have confidence. Section 21 was brought in to give landlords the confidence to bring their properties to the market. The vast majority of our members can live without section 21 provided the alternative is fit for purpose, but until we see these things come to fruition, I do not think I can recommend that. That is not to say that section 21 should not be abolished. It is just that the alternative needs to work, because otherwise it will hurt the very people you want to protect: the renters.
Timothy Douglas: First, we have a demand crisis. If we are not looking at supply, we certainly have a demand crisis. Looking at our member data from August 2023, year on year demand is up 32%, based on tenants registering with properties. It is a demand crisis and a housing crisis. It has to be about the tax, social housing, people being able to buy homes and energy efficiency legislation. These are all part of a wider housing strategy. You cannot look at the private rented sector in isolation.
On the courts, bailiffs are an issue; certainly in London, there is an issue around not being able to get personal protection equipment, and that has spread to other parts of the country. It delays proceedings. Should we look at privatising that service—the county courts service—in order to almost remove that funding element from the Ministry of Justice and ensure that we have enough bailiffs? I think we need to provide landlords with an automatic right to a High Court enforcement officer. That is part of the process. Normally, if you cannot get the bailiff, they will have that. We have worked with officials on integrating mandatory notices for possession into the possession claim online. We have also looked at improving the Money Claim Online website and that process, which is important.
I have two final points. There are things in the Government’s antisocial behaviour action plan. The courts need to prioritise dealing with antisocial behaviour; that would help. If that were a directive from the UK Government, that would be helpful. We also need to define low-level antisocial behaviour in statutory guidance, or any guidance, so that courts can see that, deal with the behaviour and get evidence of it.
Theresa Wallace: I agree with a lot of what Timothy and Ben have said. They have covered a lot of the points that I would have made. There is no question but that we have a shortage of stock. We are experiencing that on a daily basis. More than a million tenants in the private rented sector who are in receipt of income support and benefits to pay their rent should be in social housing. We need to address that to solve the housing crisis.
We need to instil confidence in our landlords. It takes time for trends to feed through, but we are definitely seeing landlords leaving the market. We have a lot more at the moment sitting on the fence, waiting to see what this Bill brings in, before they make their decision. It is crucial that we keep those people in the market. Build to rent fills a gap, but we cannot build in the places where the demand is, because that does not work for the model. We still need the private landlord to provide properties.
There are two recent surveys. A Royal Institution of Chartered Surveyors survey came out last week, which showed that overall there were 43% fewer homes available to tenants to rent in the first 10 months of this year. Research by Hamptons came out yesterday and also showed the 43% reduction. RICS says it is definitely seeing a fall in instructions of minus 18%. We want to find a balance. We want to find more security for tenants; I do not think abolishing section 21 will do that, if I am honest. We still need some fixed-term tenancies for those tenants who really want to stay in a property for three or four years because their children are in school, and where the landlord is happy to grant a tenancy for that length of term.
We could even include a break clause for the tenant, whereby for a month, or throughout the whole time, they could terminate, if their circumstances changed. If the property is not fit for purpose, the local authority should be able to visit quickly and make a decision, and the tenant should be able to get out. That way, we are giving the tenant much more flexibility and security. We still need to let landlords know that they can get their property back if they need it, but many are very happy to commit to a longer term, and I think they should be allowed to.
Timothy Douglas: I think clause 1 should include the option of fixed-term tenancies. We are not saying that it should be one or the other; I totally agree with Theresa on the option of the fixed term. The previous panel talked about the insecurity of tenants who can be evicted after six months. If a tenant has a 12-month fixed-term tenancy, they have that guarantee at the start of the tenancy that they will be in place for 12 months before a decision can be made on eviction from that property. That is vital for guarantors. If you are going to be a guarantor for a rolling periodic tenancy, you are not sure how long you will be a guarantor. How can you have rent in advance if the tenancy is not for a set period?
The fixed term is a vital point, and we need to bring that in as an option. It should not have to be one or the other. There could be the option of a periodic tenancy or a fixed-term tenancy. That will be vitally powerful in the student market as well, for any household with a student—and for non-students. Even if the student leaves after 10 months, the tenancy could stay as a fixed-term tenancy until month 12. It could either be renewed for another 12 months, or roll on to the new periodic. We need that flexibility in the system.
Jacob Young
Q
Timothy Douglas: I think we need more detail on that ground. I have not seen it, I do not know what it looks like and I do not know how it will work in reality around when it is served at the time of the year. There are myriad student semesters, term times, different types of students and mixed properties. Defining a student let is really difficult. You can do it under an HMO because the licence conditions will be in place, but a lot of students these days rent in a high-rise modern flat. How do we define them as students?
From the point of view of our members, if we retain that fixed term, you have the clarity. A UK student—this is important as well for rent in advance for UK students—can have a letter from the uni. For overseas students, it is the right-to-rent check, the visa and the share code. On the students, we remain sceptical about how that ground works. The simplest and easiest way would be to retain fixed-term tenancies as an option for any household that is either a student or mixed student household, to give that flexibility as a fixed term for 12 months as an option.
On the antisocial behaviour ground 14, I am not sure what the difference between “capable” and “likely” is. That is why I reiterate the point that local partnerships between police and councils will be really important. The guidance, defining antisocial behaviour and prioritising it in the courts will be important for that ground to work.
Ben Beadle: We like the suggestion around antisocial behaviour. The Secretary of State has been very clear that managing antisocial behaviour is important. This is one of the challenges in section 21 being abolished. Like it or loathe it, section 21 allows landlords to deal with antisocial behaviour effectively. What we are trying to do is to not end up with just the perpetrator of antisocial behaviour in the property.
I would take issue with the comments that were made in the previous session. This will be tested by a judge. It is a discretionary ground. Although the wording is wider, I think that is absolutely right. It goes before a judge to assess the merits of it, and it succeeds or fails based on judicial discretion. That sounds like something that we can all support, because it means that antisocial behaviour can be dealt with. No politician wants to write back to constituents in their area to say, “That noise that is waking your kids at night cannot be dealt with because of this, that or the other.” This strikes a balance, to coin a phrase, between protecting those who are at the hands of antisocial behaviour and not making it too easy so that it is a back door to section 21, which I absolutely get.
The second thing came up around domestic violence in the previous session. I see this as quite different. We have ground 14A, which allows social landlords to evict the perpetrators of domestic violence. I suggest that something like that is more clearly made available to the private rented sector. What happens in practice is that the landlord is working closely with the victim and wants to keep—I would say “her”, but it does not have to be—the victim in the home and to deal with the perpetrator. Anything the Government can do to make that clearer would be very helpful.
The third point is on the student market, which is an area we have been campaigning on vigorously. We support the ground, obviously, and think that it can work, but a lot of good things come as a pair—Ant and Dec, strawberries and cream—and what is missing from the ground is that it does not fully protect against the cyclical nature of the market, which Tim spoke about.
We propose an amendment that would deal with a whole range of matters. In the first six months, landlords cannot give a no-fault reason for repossession; we propose that that moratorium be extended across the sector, to deal with issues in three or four areas. First, it would provide for a fixed period, and that would deal adequately —but not fully, granted—with the need to keep the cyclical nature of the student market, because it is not broken, and we want to protect it, in the interests of both renters and landlords.
Secondly, more widely, outside the student sector, it is a possibility that a tenant will give two months’ notice on day one, and set-up costs hurt landlords. In my briefing, which I sent round to you, I gave an example of that.
Thirdly, the amendment protects against the creation of an “Airbnb lite” in the sector. We do not want the private rented sector to become Airbnb by the back door, and there is a real risk of these periodic tenancies creating that.
Fourthly, the Bill is about fairness, and striking the balance between protecting tenants from bad landlords, and landlords from bad tenants, so there is no justification for us not being treated in the same way, through that moratorium.
There is a fifth thing: this is quite easy to do through an amendment. For those five reasons, I think that we can make this work.
The Chair
I am delighted to welcome our next panel to give evidence to us on this important Bill. Perhaps I could ask you both to introduce yourselves.
Richard Blakeway: I am Richard Blakeway. I am the housing ombudsman for England.
Paul Dennett: Hello. My name is Mayor Paul Dennett. I am the Mayor of the city of Salford, the deputy Mayor for the combined authority in Greater Manchester, and a member of the Local Government Association’s local infrastructure and net zero carbon board.
Matthew Pennycook
Q
Paul Dennett: In terms of local authority capacity, I think it is well known that 13 years of austerity have had a profound impact on local government. In the case of my local authority, we have seen a reduction of £240 million as a cut to the revenue support grant and also unfunded budget pressures. An example of that would be—
The Chair
We need to remain within the terms of the Bill.
Paul Dennett: Absolutely. From a capacity point of view, we do not have capacity and that has impacted regulatory services. That is relevant to the Bill. You will be aware that we are asking for a whole range of things—the establishment of a portal and the enforcement powers for local authorities to uphold this legislation, when it is brought forward, and that will require significant investment in workforce. I say that because we have lost a lot of people who work within housing enforcement, over many years. Such things as Grenfell and what has happened in terms of housing standards has brought all that to the fore more recently. So to be able to enact some of the duties in here will inevitably take time, because we will need to develop the workforce of the future to support tenants and, ultimately, landlords in enacting the legislation as it stands today.
For me, though, there are a lot of requirements here for local government. At the moment, the legislation does not adequately respond to how local authorities will be resourced to meet some of those requirements.
Matthew Pennycook
Q
Specifically, in clause 29, there is a requirement to set out guidance on how the ombudsman redress scheme would work alongside local authorities, so that they have complementary but separate roles. What do you think that memorandum of understanding, as I suspect it will be, needs to look like? How do those roles not overlap in a way that duplicates duties?
Richard Blakeway: I think that is a very important question. This is a thoughtful Bill, but to fulfil the ambitions set out in the Bill means real operational challenges. The first challenge speaks to the first part of your question about how you design a system where the ombudsman has sufficient teeth to be effective. That is one of the reasons why we have said that creating, or enabling, an ombudsman through the Bill does not necessarily mean that people will access redress. That in itself can be a real barrier for people when navigating a system where they may be passed from pillar to post. That is exactly the reason why the Cabinet Office guidance on the creation of ombudsman redress is explicit that you should build on existing schemes.
At the moment, we are the only approved scheme that does landlord and tenant dispute resolution. I heard some of the evidence in the previous session and think we need to really distinguish between agent and landlord redress, where the responsibilities of agents are very different from the landlord’s. The Landlord and Tenant Act sets out clear obligations that rest with the landlord and cannot be delegated to the agent.
What we are seeing is a convergence in policy, which I think is welcome. You already have some of those building blocks in place. The Landlord and Tenant Act is universal; it does not distinguish between social and private. The decent homes standard potentially extends that. The health and safety rating system is, again, universal. What we need is to bring that together into a single scheme. Otherwise, regardless of the powers of the ombudsman, people are going to struggle to access the system.
In so far as the powers of the ombudsman are concerned, overall, the Bill is quite effective at setting out role of an ombudsman without being overly prescriptive. You have to avoid compromising the independence of the ombudsman to make independent decisions and to have integrity, and also agility, by being independent. The Bill is responding to a private rented market which was not envisaged 30 years ago, so you need to enable the ombudsman to be able to produce guidance and codes of practice that can respond to a changing market and changing circumstances, without being overly prescriptive in the legislation.
On clause 29, that is a really important point, because there is a risk of duplication between the role of a council and the role of an ombudsman. Again, there is a lack of clarity for residents—tenants—about which route to take. An ombudsman does not operate in isolation—it will not operate in a bubble—so the relationship between the ombudsman and the courts will be critical, as well as the ombudsman discharging its own functions.
We currently see cases in which someone has gone through environmental health, and a local authority might even issue an improvement notice, and then someone is coming to us for redress—those are two distinct roles. Any information-sharing agreement needs to be really clear that when an ombudsman sees concerns that may indicate there is a category 1 hazard, for example, that information is provided appropriately to a local authority for potential enforcement. Also, the local authority needs to be able to signpost very early to a resident who has approached it through environmental health that they may have a right to redress.
The crux of this, alongside the memorandum of understanding, is the portal or database. Part of the problem is that there are a large number of landlords and there might not be clarity about which parties are subject to the Bill—subject to enforcement and redress—and then it is about being able to access that information easily so that compliance can be met. I agree with your point: there has to be a framework for operation and a clarity about roles, but both local authorities and the ombudsman will want access to the database so that they can be effective.
Jacob Young
Q
Richard Blakeway: That is a really good question. An ombudsman is not a surrogate for an effective landlord-tenant relationship and effective dispute resolution at source, done locally by a landlord. One thing that we have sought to introduce through our work on social housing is our complaint handling code, which has set out how to create a positive complaint handling culture and resolve disputes as early as possible without having to escalate them to the ombudsman. We have done a significant amount of work with landlords to implement that code and to avoid a postcode lottery whereby, depending on your landlord, different approaches might be taken, and some of those approaches were not promoting natural justice at a local level.
For me, although an ombudsman might be conceived as the potential stick—there is an element of that, which is important—another part of an ombudsman’s role is to promote effective complaint handling locally and support landlords. There are a lot of landlords who want to get things right—they are not rogue landlords—but sometimes they may not be aware of all their responsibilities, or they may struggle to engage the resident effectively or to discharge their responsibilities. That role is important for the ombudsman. It is something we have done in social housing and, were we to be appointed as the ombudsman, it is something we would certainly seek to do with landlords in the private rented sector.
Mike Amesbury
Q
Richard Blakeway: The courts themselves, or some aspects of the courts, have talked about the simplification of the courts and the creation of a housing court. My assessment of that is that an ombudsman is an alternative to the courts. Therefore, you need to be clear about why you might use the redress route, depending on what outcome you are seeking, alongside the court route, and a simplification of the court route, potentially through the creation of a single housing court, for example. That would be really beneficial, by making clear people’s rights, so that they can consider, “Do I want to go through the courts process, because this is the outcome I am looking for? Or do I use the ombudsman process?”
One thing I would stress is that an ombudsman should not be perceived as dealing with leaky taps or broken windows. These are not low-level disputes; we deal with some complex disputes in our current casework, as Committee members will have seen through our decisions. That approach needs to be applied here. The more you can apply that approach, the greater confidence people will have in a free and impartial alternative to the courts, or a free alternative to the courts, rather than feeling that their only effective route to redress is the courts process, given all the pressures on it.
Paul Dennett: Just to respond to the point about a housing court, we have to be careful that it is not a distraction from getting on with legislation. First, we do not believe the court backlogs are severe enough to warrant a delay in making progress with this legislation. We are therefore calling on the Government to publish that evidence, based on the court backlogs, in order to inform how best we implement the abolition of section 21. If courts are found to be in sufficient need of improvement to delay the ban on section 21 evictions, we call on the Government to commit in law to delivering a strategy based on evidence to reduce the backlog, backed up by sufficient funding and a specified date. To go down the road of considering a housing court would delay all that, and would be of real concern to many people in the country.
Matthew Pennycook
Q
The White Paper also committed the Government to exploring and bolstering local authority enforcement to tackle a wider range of standards breaches. That is not in the Bill. We have a commitment in the King’s Speech, as one of three areas for the Government to bring forward amendments to make it easier for councils to target enforcement action and arm them with further enforcement powers. Could you speculate on what we might expect the Government to bring forward in that area? What would you like to see? Should we seek to weave into the Bill the more expansive measures outlined in the White Paper?
Paul Dennett: The Bill deals with enforcement for local authorities quite adequately. It is about how we resource that and develop the workforce within local government, and how we ensure that this legislation is genuinely resourced and empowered to deliver on what we are setting out here. At the end of the day, any legislation and regulation is only as good as our ability to enact it.
To enact it requires a trained, skilled and developed workforce. I say that against our losing many people from regulatory services, certainly since 2010-11. It also requires the resources to employ people to do the work, gather the data and intelligence, prepare for court and, ultimately, work with landlords, ideally to resolve matters outside of the courts, if we can do that. That is the LGA’s position on all this.
We would like to be in a position of having a working relationship whereby we resolve matters outside of complaints systems, outside of courts, working through local authorities. Nevertheless, if that is required, it is important to have a skilled, resourced workforce. I stress the importance of resource, because local authorities spend an awful lot of money these days on children’s services and adult social care. Those are responsive budget lines that ultimately consume a lot of our budgets and that therefore diminish our ability to get on and do some of that regulatory activity in local government. The legislation is there for enforcement; we just need the resources to get on and do it, and we need the workforce strategy to train the people of the future to enact this and, ultimately, to prepare to support landlords and tenants in this space.
Richard Blakeway: That is a really interesting question, Matthew; I have a couple of thoughts in relation to it. It is perhaps worth testing—if, for example, the ombudsman is seeing repeated service failure in a particular area—what powers there might be to address those kinds of recurring systemic issues, and whose role and responsibility it should be. That goes to the heart of your question about clause 29 and the relationship between the various parties.
The second thing, which goes back slightly to your first question, is how redress is scoped in the Bill. The one area that I would highlight—I can understand why it has been introduced, but it might not stand the test of time—is the cap on the financial compensation that an ombudsman can award. At the moment, we do not have a cap. The Bill proposes a cap of £25,000. I can understand the motivation there and, as an ombudsman, we are always proportionate, transparent and clear about the framework in which we work when awarding compensation. None the less, in time to come, £25,000 might not seem an appropriate sum. It also slightly incentivises people to think of the courts, which do not have a cap, to solve their dispute, rather than using an ombudsman.
It is critical that the ombudsman has sufficient power to enforce its remedies, as well as the council being able to enforce its role and responsibilities, but the cap might be something to re-examine.
Lloyd Russell-Moyle
Q
Richard Blakeway: There is a term that may be in the statute or scheme of an ombudsman called “own initiative”, which allows them to initiate an investigation without a complaint whenever they have a strong sense that there might be service failure. That is not currently explicitly in our scheme. However, three years ago, we had scheme amendments that allowed us to investigate beyond an individual member of our scheme, or beyond an individual complaint, if we had concern that there may be repeated systemic failure. That is something that is exercised.
Draft Town and Country Planning (Fees for Applications, Deemed Applications, Requests and Site Visits) (England) (Amendment) Regulations 2023
Matthew Pennycook Excerpts(2 years, 10 months ago)
General CommitteesRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Matthew Pennycook (Greenwich and Woolwich) (Lab)
It is a pleasure to serve with you in the Chair, Mr Robertson. I thank the Minister for that explanation of the instrument before us.
We welcome the regulations, which, as we heard, increase the fees payable for major and non-major planning applications for the first time since 2018, add an annual inflation indexation of those fees, and make changes to both fees payable for repeat applications and the planning guarantee period for non-major applications.
Local authorities play an instrumental role in efforts to meet housing need and demand, yet many are struggling to fulfil their responsibilities due to a lack of capacity, capability, skills and resourcing in their planning departments. As a report published last year by the House of Lords Built Environment Committee put it, we face an “evolving crisis”, with local planning authorities under-resourced and consequently unable to undertake a variety of skilled planning functions effectively. The resources dedicated to planning within local authorities, which were never particularly high by international standards even before 2010, have fallen dramatically over the past 13 years, primarily as a result of local authority belt tightening in response to central Government funding cuts.
The “Planning for new homes” report published by the National Audit Office in February 2019 found that between 2010-11 and 2017-18 there was a 37.9% real-terms reduction in net current expenditure on planning functions by local councils. Even when the income that authorities generated from fees, sales and charges or transfers from other public authorities was considered, the report concluded that total spending on planning had fallen by 14.6% in real terms between the dates in question—from £1.125 billion to £961 billion. Given that context, I would be grateful if the Minister could tell the Committee whether the Government are considering any other means, beyond the fee increases provided for by this instrument, to provide local authority planning services with additional funding.
Although the fee increases provided for by the regulations will not compensate fully for the sharp real-terms reductions in funding that authorities have had to cope with over recent years, they do have the potential to help enable local planning authorities to better deliver the service that applicants and the public rightly expect. I use the word “potential” deliberately, because there is a justifiable concern that increased revenue from planning application fees will not necessarily be allocated to planning departments or lead to improved performance. Although there is both a clear expectation and a requirement in primary legislation for planning fees to be used by local authorities to perform the function of determining planning applications, in practice many councils use planning fee income, despite the lack of surplus, to cross-subsidise other services. If they did not, the Government would never have felt the need even to consult on ringfencing in their “Increasing planning fees and performance” technical consultation earlier this year.
As such, what further assurances can the Minister provide today that the Government’s expectations—and ours—and the statutory requirements in respect of revenue generated from planning fees will be adhered to? In addition, can she confirm that the Department plans to begin actively monitoring how planning fees are generated and used, and evaluating whether they are having a beneficial impact on performance?
I would also be grateful if the Minister could provide further clarity on what other steps the Department is taking to ensure that local planning authorities are improving their performance. When the other place considered these regulations last week, Baroness Swinburne, speaking for the Government, referred to “a new framework” that will measure local authority performance across
“a wider set of criteria to ensure that local authorities are delivering on all fronts, for all users of the system.”—[Official Report, House of Lords, 17 October 2023; Vol. 833, c. 141.]
Can the Minister tell us when that new framework is expected to be put in place?
Lastly, increasing fees by the proposed amount or in isolation, even if supplemented by other funding sources, will almost certainly not be enough to address the capacity and capability issues faced by local planning authorities. As the Minister knows, difficulties in recruiting and retaining principal planners, and a shortfall of specialist skills, is another significant challenge. Although the Government have seemingly abandoned the proposals in the 2020 “Planning for the future” White Paper for a comprehensive resources and skills strategy, the policy paper that accompanied the Levelling-up and Regeneration Bill committed Ministers to bringing forward a planning skills strategy. Can the Minister tell us whether the Department still intends to publish one, and if so, when?
Rachel Maclean
I thank my hon. Friend for his point, and the feedback is noted, but what I was talking about regarding planning performance is a policy decision that we are in the process of making. I am sure that further legislation will come forward in due course.
Matthew Pennycook
I appreciate the Minister’s giving way. She has provided some useful additional clarity on performance and funding. May I press her on greater transparency, and the Department’s monitoring of how the increased planning fees are used? Does it monitor how fees are generated and used by planning authorities across the country? If not, will it start to, and will it actively track whether the increased fees are contributing to the improved performance that we all want?
Rachel Maclean
Yes, I can assure the hon. Gentleman that that is one of the core activities that I carry out in my role, with the assistance of my civil servants and various teams that feed into this. I have already spoken about our powers to intervene where local authorities are not performing. On top of that, we expect that the additional funding that we are giving through the separate funding pots that I referred to, and this new broader funding, will be spent, and we can track performance. Notwithstanding the challenge put to me by my hon. Friend the Member for Central Suffolk and North Ipswich, we intend to bring forward details of how we will track performance. I know that every Member in this House is very interested in how their local authority performs on planning applications, because we are often the first to receive complaints when they not performing well.
My hon. Friend has indicated his concerns about the disproportionate impact of the fees. I obviously take that on board, and we have considered that carefully; that is why the fee for householders will rise only from £206 to £258. We consider that to be proportionate, given the need. Planning services do not make a profit from fees; the services are still subsidised through wider funding. It is not a cost-recovery fee. Applicants still benefit from what they pay, even with the increase. He raised the point about people making modifications for disabled residents of a property. They will still be exempt. The current set of exemptions will still apply, so people in that situation will rightly not be charged; he is right to say that.
Rachel Maclean
The changes that we are making have removed the “free go”; we debated that in the House in proceedings on the Levelling-up and Regeneration Bill. We made that change because the free go placed a disproportionate burden on planning departments, and added to their overall workload.
It is really important to look at this small increase in the round. We are talking about increasing capacity and providing a better service across the board. I have recent experience of making a planning application to my local authority, so I know how much work is involved. When people pay a fee, they want to get a good service. If we resource the system as a whole to a greater extent—I hope Members will be reassured, both by this instrument and by the other grants that we have mentioned, that we are doing that—small householders building an extension will see a better service overall, and that should minimise the need for repeat applications. The idea is to capture everything up front.
It is also important to note that we are embarking on an ambitious programme to digitise the whole system. Members will know how paper heavy the system is now. That is where mistakes creep in and things need to be repeated. By improving the whole system overall, we will remove the need for repeated applications and, I hope, provide a fairer service.
My hon. Friend the Member for Central Suffolk and North Ipswich asked me about flooding, so I will touch on that before I wind up. We have all seen the recent events, which I know have affected his area greatly. All our sympathies are with the people affected, and I hope that they can be back in their homes soon. He will know that the national planning policy framework—the planning system more broadly—already takes account of flooding. Work has been done on this matter by my colleagues in the Department for Environment, Food and Rural Affairs, particularly in setting up the Flood Re scheme and making sure that planning applications and local plans are made with flooding in mind.
We will be going further. My hon. Friend will know of the work that we have done through the national development management policies; we debated again yesterday on the Floor of the House when considering the Lords message how the planning system responds to climate change, of which flooding is one manifestation. We have been clear that we intend to strengthen our approach, to give planners and the country the reassurance that the planning system can respond adequately to climate change and help us achieve our net zero objectives.
Matthew Pennycook
The Minister has missed out one of my questions. Will we see the planning skills strategy that was promised in the policy paper that accompanied the Levelling-up and Regeneration Bill?
Rachel Maclean
I understand the hon. Gentleman’s eagerness to see that, and we will bring it forward in due course. If he will allow me, I will write to him with more details on the timeline.
I thank Members for their interest in this matter. I must reiterate that it is critical that we have well-resourced, effective and efficient local planning services so that development is not delayed. We need to build the right houses for our country, in the right places, and planning is critical to that. The regulations will contribute to that by delivering much-needed additional resources. As I hope I have said multiple times, we are clear that local planning authorities must invest the additional income from the increase in planning application fees in their planning service. Improvements will enable speedier delivery and the economic growth that our country needs. I hope the Committee will welcome these important and necessary regulations.
Question put and agreed to.
Resolved,
That the Committee has considered the draft Town and Country Planning (Fees for Applications, Deemed Applications, Requests and Site Visits) (England) (Amendment) Regulations 2023.
Levelling-up and Regeneration Bill
Matthew Pennycook ExcerptsTuesday 24th October 2023
(2 years, 10 months ago)
Commons ChamberRead Full debate Levelling-up and Regeneration Act 2023 View all Levelling-up and Regeneration Act 2023 Debates Read Hansard Text Watch Debate Read Debate Ministerial Extracts Amendment Paper: Commons Consideration of Lords Message as at 24 October 2023 - (24 Oct 2023)
Matthew Pennycook (Greenwich and Woolwich) (Lab)
It is a pleasure to follow that characteristically sensible speech from the hon. Member for Waveney (Peter Aldous). I put on record our thanks for their lordships’ continued engagement on the Bill and all the work they have done on it over many months. After considering an extensive number of Lords amendments to the Bill last week, just two issues remain for us to debate again. The first is remote local government meetings.
Labour remains firmly of the view that while in-person council meetings should continue to predominate, there are circumstances in which virtual or hybrid local government meetings might be either useful or necessary. We also maintain that permitting their use in certain instances would have a number of additional benefits, not least in helping to reduce barriers to public engagement in the planning process, which is a goal shared across the House. As has been previously noted, an extremely broad range of organisations support change in this area, including the Local Government Association, Lawyers in Local Government, the Association of Democratic Services Officers, the Society of Local Council Clerks and the National Association of Local Councils. Indeed, as the hon. Member for Buckingham (Greg Smith) pointed out during last week’s debate, evidence from NALC suggests that support for it among local councils is overwhelming, with 90% of town and parish councils wanting the ability to hold virtual meetings in some form to widen participation.
As we just heard, it is not just those organisations and authorities and those on the Labour Benches who support greater local discretion in this area. In last weeks’ debate, the right hon. Members for Chipping Barnet (Theresa Villiers) and for North Somerset (Dr Fox) and the hon. Members for Buckingham, for Waveney and for Worthing West (Sir Peter Bottomley) all expressed support for a degree of flexibility so that councils could enable remote participation in meetings in certain circumstances. No one is arguing that we should require every local government meeting to be virtual or hybrid. Doing so would clearly undermine the principle that members of the public should have suitable opportunities to interact in-person with their local representatives. Instead, the case is being made for a degree of local discretion so that such meetings would be permitted in certain circumstances.
Lords amendment 22B addresses the Government’s understandable concern that permitting councils to hold wholly virtual meetings might have unintended and adverse consequences for local democracy. The amendment would allow Ministers to determine by regulations the range of circumstances in which hybrid meetings could take place. For example, they might choose to enable parish councillors in more remote parts of a given authority area to attend meetings virtually while ensuring that most are still required to be present in person. To take another example, they might choose to allow members of the public—say, people with mobility issues or those with children—to participate actively in planning committees, while councillors would still be required to attend in person. We believe that this is a reasonable and proportionate amendment, and we will support it.
The second issue concerns the planning system’s role in mitigating and adapting to global heating. The Government’s amendment in lieu is noticeably weaker than Lords amendment 45 as it applies only to national development management policies rather than all national policy, planning policy or advice relating to the development or use of land. It also excludes precise statutory definitions of what constitutes mitigation and adaptation. Nevertheless, we welcome that the Government have made a concession on this issue by tabling their amendment.
However, while we welcome the fact that the Government’s amendment in lieu would ensure consideration of climate mitigation and adaptation in the preparation or modification of NDMPs, it would not achieve what Lords amendment 45 would: namely, to establish genuine coherence between the planning system and our country’s climate commitments, not least by requiring local planning authorities to have regard to climate when making decisions on individual planning applications. The planning system in its current form is manifestly failing to play its full part in addressing the climate emergency. Indeed, one might go so far as to argue that it is actively hindering our ability to mitigate and adapt to climate change in myriad different ways.
The Bill is a missed opportunity to fully align the planning system with our climate mitigation and adaptation goals and ensure that new development produces resilient and climate-proofed places. The provisions in the Bill that require local plans to be designed in such a way as to contribute to the mitigation of, and adaptation to, climate change are welcome, but they are transposed from existing legislation introduced 15 years ago, and, alone, they are not sufficient. The promised related update to the national planning policy framework to ensure that it contributes to climate change mitigation and adaptation as fully as possible is vital, but it will not take place until well after the Bill has received Royal Assent if it materialises at all during what remains of this Parliament.
As we have argued consistently throughout the passage of the Bill, there is a pressing need for clear and unambiguous national policy guidance on climate change, a purposeful statutory framework to align every aspect of the planning system with net zero, and an overarching duty on the Secretary of State, local planning authorities and those involved in neighbourhood plan making to achieve climate change mitigation and adaptation when preparing plans and policies or exercising their planning decision-making functions.
The Climate Change Committee recommended in its 2022 progress report that
“Net zero and climate resilience should be embedded within the planning reforms”
contained in the Levelling Up and Regeneration Bill.
As things stand, they have not been. In this week—of all weeks—when we have seen once again the impact on communities across the country of the more frequent extreme weather events that climate change is driving, we should look to improve how the planning system responds to the climate emergency. The Government amendment in lieu is welcome, but it does not go far enough. For that reason, we will support Lords amendment 45.
Theresa Villiers (Chipping Barnet) (Con)
I would like to start by thanking the Minister for her involvement in the very long saga that is the Levelling Up and Regeneration Bill, which, finally may be drawing to a close. It is good to see the areas of difference between the two Houses reduced.
I appreciate that Lords amendment 22 on councils meeting virtually is a significant issue, as it could set a precedent for other parts of the public sector. I understand the Government’s concerns and why they have resisted it up to now, but I hope there is room for further compromise and at least some flexibility to allow councils to deploy hybrid meetings. If the amendment still goes too far, I hope that Ministers can come up with something, perhaps specifically in the planning context or in at least some circumstances, to make the life of our local councillors a little easier. We must remember that they do a difficult job; they work hard and many are trying to hold down day jobs at the same time. A bit more flexibility for virtual meetings could help to enhance democratic participation.
An amendment that we did not get back from their lordships was on NDMPs. I have a certain amount of regret about that, because I continue to believe that the replacement of local development management policies with a single centralised diktat is the wrong approach. However, I welcome the fact that, thanks to the Government’s amendments in lieu, we now see in the Bill a commitment to consult on NDMPs. That was an important part of the compromise announced last December by the Secretary of State to tackle problems outlined in the amendments package headed by new clause 21, which I tabled. It resulted from concerns felt by many on the Government Benches about problems leading to massive pressure for blocks of flats in the suburbs and housing estates on greenfield and agricultural land in rural areas. Now, we need to see the remainder of that package delivered by the national planning policy framework. Once again, I encourage and urge Ministers to get that published.
We also need to see the new set of planning policy guidance—another document that will be crucial to ensuring that the reforms promised in the planning system deliver real change. Concern remains among Back Benchers about the rush for volume of units at all costs. We all accept the need for new homes and want more homes built, but they need to be the right homes in the right places. I know that you, Mr Deputy Speaker, strongly agree with that.
With that in mind, I can understand the rationale of Lords amendment 45 on climate change mitigation and adaptation. We need to do more to ensure that the developments that come forward for approval are consistent with our net zero goals. I am not necessarily saying that Lords amendment 45 is the right vehicle to deliver that, but if we are to make that huge transition to carbon neutrality, construction and development has an enormous part to play, and significant change needs to be delivered. I hope that the Government will make every effort to ensure that the new NPPF reflects our climate goals, in terms of both mitigation and adaptation.
In particular, as we have heard many times during the debate on the Bill, we must take care in relation to areas prone to flooding since, even if we deliver net zero on time, the climate has already changed to make such episodes more serious and more frequent. I would like to take this opportunity to put on record my great sympathy to anyone who has been affected by the floods of recent days. I hope they are back in their homes soon. I truly understand what a miserable experience it is to be subjected to these climatic episodes.
Returning lastly and briefly to the December compromise announced on Report by the Secretary of State for Levelling Up, Housing and Communities, my right hon. Friend the Member for Surrey Heath (Michael Gove), I reiterate what I have said a number of times in this House: we need the compromise to be implemented. The issues raised in new clause 21 on excessive targets have not gone away. Back-Bench concern has not gone away. We are all determined to defend our constituencies from overdevelopment. We believe it is vital to shift the focus of home building to big urban city sites like Old Oak Common, Beckton and central Manchester. The Docklands 2.0 approach outlined by the Secretary of State in his July speech and in his long-term plan for housing reflects our climate commitments by situating people close to jobs, services and public transport systems. It helps to take the pressure off suburban and rural areas, protecting green spaces and the green belt, and supports our ambitions for nature recovery. So, please, let us make sure that that change really happens.
Renters (Reform) Bill
Matthew Pennycook ExcerptsMonday 23rd October 2023
(2 years, 10 months ago)
Commons ChamberRead Full debate Renters (Reform) Bill 2022-23 View all Renters (Reform) Bill 2022-23 Debates Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Matthew Pennycook (Greenwich and Woolwich) (Lab)
It is a pleasure to close this Second Reading debate for the Opposition, and I thank all hon. and right hon. Members who have spoken in it. It has been a good debate and one defined by a great many thoughtful and eloquent contributions.
As my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner) so rightly argued in her remarks at the outset, this is a piece of legislation that is shamefully overdue. As she and other speakers pointed out, not only is it now over four and a half years since the Government first pledged to abolish section 21 no fault evictions, but, for reasons that now appear quite clear, Ministers sat on the Bill for a further five months subsequent to its publication in May. Drawing attention to the lengthy delay in bringing the Bill forward is not simply a parliamentary debating point. As many of my hon. Friends, including my hon. Friends the Members for Putney (Fleur Anderson), for Liverpool, Riverside (Kim Johnson), for Liverpool, West Derby (Ian Byrne) and for Blaydon (Liz Twist) pointed out, it has had very real consequences for private renters across the country.
During the years that Ministers prevaricated and the months this year they clearly spent negotiating with the discontented on their own Benches, tens of thousands of renters have been pushed to financial breaking point by multiple rent rises or threatened with homelessness as a result of being served a section 21 notice. We will continue to justifiably bemoan the fact that the Government have not acted with the urgency that was required, but we do welcome the Bill’s finally progressing. I want to take the opportunity to thank once again, on behalf of those on the Labour Benches, all organisations, particularly the 20 that comprise the Renters Reform Coalition, for not only making the case for change over many years, but for joining Labour over recent months in urging Ministers to get on with the process of turning the Bill into law.
The case for fundamentally reforming the private rented sector is as watertight as they come, and Labour has called for it for many years. More than 11 million people in England—not just the young and the mobile but, now, many older people and families with children—live day in, day out with the knowledge that they could be uprooted from their home with little notice and minimal justification, and a significant minority of them are forced to live in substandard properties for fear that a complaint would lead to an instant retaliatory eviction. Such a situation cannot possibly be justified.
The sector should have been transformed a long time ago. Its regulation should have been overhauled to level the playing field between landlord and tenant decisively. The Bill is a good starting point to that end, and, as the debate has made clear, the principle of it enjoys broad support across the House. General support has been expressed today for the White Paper proposals that have found their way into it, including a new property portal and ombudsman, a simpler tenancy structure, the end of rent review clauses, prohibitions on multiple in-year rent increases, the right to request keeping a pet, and, of course, the abolition of section 21 notices.
However, as nearly all Opposition Members mentioned, a significant degree of uncertainty now surrounds the implementation of the promised section 21 abolition as a result of a concession made by Ministers to appease a minority of disgruntled Conservative Members—seemingly without complete success, given the tone and content of the contributions of the right hon. Members for Calder Valley (Craig Whittaker) and for Gainsborough (Sir Edward Leigh) and the hon. Members for Yeovil (Mr Fysh) and for Don Valley (Nick Fletcher).
As we have heard, the Government have made it clear in recent days—although it would seem that Members were told two weeks ago—that section 21 notices will not be phased out until Ministers judge that
“sufficient progress has been made to improve the courts.”
Explicit reference was made to end-to-end digitisation of the process, which could well take a great many years to achieve. Private renters across the country, who have been assured repeatedly by Ministers that the passage of this Bill will finally remove the threat of a section 21 eviction, have no guarantee whatsoever that the concession made does not amount to an effective deferral of that change well beyond the phased transition already provided for by the Bill.
If this sounds all too familiar, that is because it is. The Secretary of State has form when it comes to acquiescing in damaging concessions rather than facing down the unruly Benches behind him, with future housing supply in England a notable past casualty.
After 13 years of Tory government, the courts system is on its knees. The Government have had more than four and a half years, since they committed themselves to abolishing section 21 evictions, to make significant improvements to it in order to support good-faith landlords, and they have not succeeded. As things stand, HMCTS does not expect to be able to deliver even the reduced-scope reform programme to its current timetable. Given this Government’s record, why on earth should renters take it on trust that things will improve markedly any time soon? The inefficiency of the courts system is a huge problem, and action must be taken to address its lack of capacity so that landlord possession claims can be expedited, but the end of no-fault evictions cannot be made dependent on an unspecified degree of future progress subjectively determined by Ministers. In the absence of very clear commitments from the Minister on metrics and timelines in this respect, we will seek to amend the Bill in Committee to ensure that it is not.
While Ministers face the prospect of having to give further ground as the Bill progresses to keep their Back Benchers onside, Labour will work in Committee to see it strengthened so that it truly delivers for tenants. We will press for clarification of the new grounds for possession for students’ landlords to ensure that they are not too expansive, and will probe the Government’s intentions in respect of dealing with the complexities of the student market. My hon. Friend the Member for Sheffield Central (Paul Blomfield) and the Chair of the Select Committee, my hon. Friend the Member for Sheffield South East (Mr Betts), rightly called for that.
We will put forward a number of sensible changes, including an increase in the proposed notice periods from two months to four months to protect renters better. I am pleased that my hon. Friends the Members for Stretford and Urmston (Andrew Western) and for Brighton, Kemptown (Lloyd Russell-Moyle) argued for that. We will press the Government to reconsider their position on a range of White Paper proposals that did not make it into the Bill. They include measures to strengthen councils’ enforcement powers—I thank my hon. Friends the Members for Battersea (Marsha De Cordova) and for Blaydon for raising that point—along with powers to limit the amount of advance rent that landlords can ask for, and provisions to expand rent repayment orders to cover repayment for non-decent homes.
We will explore why essential reforms that were outlined in the White Paper, including the proposed legally binding decent homes standard and the proposed ban on landlords refusing to rent to those in receipt of benefits or with children—a point powerfully made by my hon. Friend the Member for Sheffield South East—are not on the face of the Bill. We will explore what more might be done to ensure that the separate measures that have been promised to enact each of those reforms are passed and applied quickly and effectively. We will also look to amend various provisions in the Bill relating to new and revised grounds for possession, including the far too sweeping and punitive proposed new mandatory ground 8A and the proposed change to discretionary ground 14 relating to antisocial behaviour, so that blameless and vulnerable tenants are properly safeguarded.
Perhaps most importantly, we will seek to close the numerous loopholes in the Bill that would allow the minority of disreputable landlords—such as the unscrupulous owner of Dorchester Court mentioned in the powerful contribution of my hon. Friend the Member for Dulwich and West Norwood (Helen Hayes)—to exploit tenants and jeopardise their security of tenure. Let us take two examples that are featured prominently in the Bill. Even with the proposed expanded right to challenge, it is far from clear that the tribunal system would prevent significant numbers of tenants from being evicted by means of an extortionate rent hike. We need to explore what more can be done to put in place genuinely effective means of redress for them. Similarly, the proposed three-month ban on landlords re-letting properties they have taken back to sell or move into themselves is not only insufficient but appears not to apply in some circumstances and will almost certainly be impossible to enforce even when it does. We need to tighten it.
The Bill is shamefully overdue but imperative. We support it in principle and are pleased that it will progress today, but it needs to be enhanced rather than undermined by concessions aimed at placating a minority of Members. Private renters deserve a piece of legislation that will ensure that they have real security and enjoy better rights and conditions in short order. We are willing to work constructively with the Government on the Bill, but make no mistake, we plan to do everything in our power to see it strengthened to the benefit of private renters who have waited long enough for meaningful change.
Levelling-up and Regeneration Bill
Matthew Pennycook ExcerptsTuesday 17th October 2023
(2 years, 10 months ago)
Commons ChamberRead Full debate Levelling-up and Regeneration Act 2023 View all Levelling-up and Regeneration Act 2023 Debates Read Hansard Text Watch Debate Read Debate Ministerial Extracts Amendment Paper: Commons Consideration of Lords Amendments as at 17 October 2023 - (17 Oct 2023)
Matthew Pennycook (Greenwich and Woolwich) (Lab)
Well, what can one say about that last 20 minutes, apart from that it must have felt far more persuasive when the Minister practised it in the mirror this morning, but I do congratulate her on the birth of her grandson.
I will start by thanking their lordships for the extensive and forensic scrutiny to which they have subjected this complex and demanding piece of legislation. I put on record the appreciation felt on these Benches for the tireless work of our noble Friends, Baroness Hayman of Ullock and Lady Taylor of Stevenage, ably assisted as ever by Ben Wood and the whole Labour Lords team.
This Bill has been with us for some time now. First published in May 2022, it has progressed slowly against the backdrop of significant political and economic turbulence, the responsibility for which lies squarely with the Conservatives. It has survived an unprecedented degree of ministerial churn: three Prime Ministers; four Secretaries of State, albeit one a retread; four Housing and Planning Ministers; and four Levelling Up Ministers. With so many minds on the Government Benches having grappled thoughtfully with the implications of each of the Bill’s many provisions, one might have hoped that it would have been significantly improved and that its worst features would have been substantially mitigated, if not removed altogether. Sadly, despite the addition of scores of new clauses and a large number of new schedules to the extensive number it already contained, the Bill remains not only eclectic but deeply muddled. It is a rag-tag mix of measures—some sensible, but many more ill-considered or downright damaging—that attempt but fail to render coherent a Tory levelling up, devolution and planning agenda that is anything but.
In the eight months that the Bill was considered in the other place, the Government were forced to give way on a variety of fronts. I am glad that, in a range of areas, the arguments that my hon. Friend the Member for Nottingham North (Alex Norris) and I made in Committee last year have been partially accepted.
However, although the Government’s concessions have rendered the Bill slightly more palatable, they have not resolved the fact that it still contains a range of measures, from the new infrastructure levy to community land auction arrangements, that are riven with flaws. We regret the fact that Ministers did not reconsider their inclusion entirely. It will now fall to a future Labour Government to halt, review or rescind each of them.
We do not have an opportunity today to attempt, again, to address many of the more problematic parts of the Bill but, as a result of the prodigious efforts of noble Lords in the other place, we have a chance to make a number of important changes that would modestly improve the Bill and, in so doing, enhance outcomes for local communities across the country. It is with that objective in mind that I turn to a selection of the unusually large number of amendments that the other place has sent to us for consideration.
Lords amendments 1 and 10 relate to the levelling-up mission set out in part 1 of the Bill and the distinct, but related, third round of the levelling-up fund. They seek respectively to ensure that the missions and the fund application process are properly integrated and that round 3 of the fund takes place not only in a timely manner but on the basis of a reformed application process. We support both.
The Opposition’s views on the Government’s levelling-up missions are well known, but, if we are to give statutory force to a statement setting such missions for a period of no less than five years, it is right not only that it comes into effect soon after the Bill receives Royal Assent but that it is accompanied by a statement detailing the application process for round 3 of the levelling-up fund, including transparent criteria so that the two can be fully aligned.
Similarly, our criticisms of the levelling-up funding process are a matter of public record, but, if the fund is to be the primary means of delivering priority local infrastructure projects for the foreseeable future, it is right that steps are taken prior to the opening of round 3 to simplify the application process and to reduce the onerous requirements and resources it presently involves.
We recognise that, by tabling an amendment in lieu of Lords amendment 10, the Government have sought to enshrine in the Bill an assurance in respect of round 3 of the levelling-up fund. However, not only is the content of the proposed statement left completely undefined, but the proposed amendment in lieu fails to achieve one of the central objectives sought by their noble Lords, namely that such a statement be published within the same timescale as a statement on the levelling-up missions so that the two processes, which are clearly connected, fully complement each other. For those reasons, we cannot support the Government amendment in lieu and we will support Lords amendment 10, along with Lords amendment 1.
The question of whether the Government’s proposed levelling-up missions are comprehensive enough to reduce inequalities between and within regions has arisen since the White Paper was first published in February 2022. Lords amendments 2 and 4 seek to augment the 12 missions set out in that document by requiring the addition of separate missions relating to child poverty and health disparities. We welcome the Government’s acceptance that addressing the impact of economic and social disparities warrants a greater focus in respect of levelling-up missions and that they have tabled amendments in lieu of Lords amendments 2 and 4 to that end. However, in our view, the requirement that Ministers “must have regard” to these disparities in the preparation and review of all the missions falls some way short of the implications that establishing dedicated new missions on child poverty and health disparities would have for life chances across the country. For that reason, we cannot support the Government amendment in lieu and will support Lords amendments 2 and 4.
We also support Lords amendment 22. We remain firmly of the view that there are circumstances in which virtual or hybrid meetings are necessary or useful, and that their use could help to reduce barriers to public engagement, particularly in relation to the planning process. As we argued in Committee last year, a number of organisations, including the Planning Inspectorate, already enjoy the freedom to offer such meetings as they deem necessary, and there is widespread support for putting local authority remote meeting arrangements on a permanent footing, including from the Local Government Association, Lawyers in Local Government and the Association of Democratic Services Officers. The Government have offered no compelling reason why this amendment should not be incorporated into the Bill, and we therefore urge the House to support it.
As the Minister will know, the establishment of a new tier of national planning policy in the form of national development management policies, and their precise relationship and standing in respect of local development plans, has been a point of contention throughout the Bill’s passage. The Opposition feel strongly that it cannot be right that national policies that will have a far greater impact on local communities than any existing national policy statement and that have significant implications for the status and remit of local planning can be developed without an obligatory and defined public consultation and parliamentary approval process. Lords amendment 44 stipulates such a process, including minimum public consultation requirements and a mechanism for facilitating parliamentary scrutiny based on that which currently applies to designating a national policy statement.
Mrs Paulette Hamilton (Birmingham, Erdington) (Lab)
Does my hon. Friend agree that people deserve to have their voices heard and to decide for themselves who they want to represent them as their police and crime commissioner?
Matthew Pennycook
My hon. Friend is right. As I was about to say, we believe that this change is clearly driven by political expediency and is intended to facilitate the transfer of the PCC functions in the west midlands to its Mayor prior to the elections that will take place in May 2024. This is the latest attempt to achieve that end—a provision enabling the Mayor to expand the boundary of the West Midlands Combined Authority without the consent of the constituent authorities, having been defeated in the other place on 13 July. Lords amendment 273 does not engage with the substantive issue of whether a transfer on this basis is appropriate. All it seeks to do is to delay the point at which the measures contained in clause 59 come into force, so that this not insignificant change can be enacted in a considered manner after the next set of elections take place. The amendment has our support.
Finally, Lords amendment 329, which was tabled by Lord Best, would require local plans to identify the scale and nature of local housing need and to make provision for sufficient social rented housing so that homelessness and the use of temporary accommodation can be ended. The importance of this matter cannot be overstated. As a result of the reduced supply of genuinely affordable homes over the past 13 years, more than 1.2 million households languish on local authority waiting lists; millions of families are trapped in overcrowded or unsuitable properties; and, to our shame as a nation, the number of households in temporary accommodation, many of whom contain young children, surpassed 100,000 for the first time this year. National planning policy is clear that local plans should, as a minimum, provide for objectively assessed needs for housing, but we know that the true extent of local housing need, and in particular the need for social rented housing, is not often reflected in them.
We strongly support the principle that underpins Lords amendment 329: that local planning authorities should be required, rather than encouraged, to properly identify local housing need and plan to meet it. We recognise that the Government have made an important concession with their proposed amendment in lieu of Lords amendment 329, which would ensure that local plans must take account of an assessment of local housing need, including affordable housing need. However, the Government amendment in lieu falls short, in failing to require local planning authorities to plan to accommodate that identified need. For that reason, we are minded to support Lords amendment 329 today, with a view to encouraging the Government to consider whether they can move a little further on this matter.
Rachael Maskell
Having served on the Bill Committee for six months, I have to say to the Minister that I found it really disrespectful that she would not take my intervention; I am here to scrutinise the legislation. I say to my hon. Friend—the future Housing Minister—that I welcome our adoption of these measures to ensure that we get the right tenure, not least because of the housing crisis that I see in my constituency. Let me push him further by asking whether we will accept the principles of Lords amendment 46 on healthy homes and the built environment, because we know that housing is about not just bricks and mortar, but the environments in which people live.
Matthew Pennycook
I thank my hon. Friend for her intervention, and I thank her again, as I did at the time, for the many months of work that she did on the Bill Committee. She is right to raise the point about healthy homes; we fully support the principles of that campaign. We disagree with the Government’s suggestion that the issue is already well addressed, and I gently encourage the Minister to continue the conversations that I believe the Government are having with Lord Crisp and the other proposers of that amendment in the other place.
To conclude, while we welcome a small number of the concessions that the Government have felt able to make to the Bill, we believe that most do not go far enough. This unwieldy and confused piece of legislation is flawed on many levels. We have an opportunity today to make modest but important improvements to it. On that basis, we urge the House to support the many reasonable amendments that the other place has sent to us.
Madam Deputy Speaker (Dame Rosie Winterton)
I call the Father of the House.
Oral Answers to Questions
Matthew Pennycook Excerpts(2 years, 10 months ago)
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Matthew Pennycook (Greenwich and Woolwich) (Lab)
It is essential that we boost the number of new homes built each year for private sale, but just as important is the need to significantly increase the supply of new affordable homes to buy and rent. The National Audit Office has confirmed that the Government’s target for its flagship 2016 to 2023 affordable homes programme was 250,000 starts by March 2023. Can the Secretary of State explain how on earth the public can trust this Government to address the housing affordability crisis when recent figures reveal that they have failed to deliver on their share of that target outside London?
Michael Gove
The significant increase in the affordable homes programme that I outlined earlier is the means for that to be done, but the difference between us is that we have a target for social and affordable homes, while Labour has none.
Nutrient Neutrality: Levelling-up and Regeneration Bill
Matthew Pennycook Excerpts(2 years, 11 months ago)
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Mr Speaker
Oh, sorry. It has taken so long, I thought we must have moved on to Back Benchers. I call the shadow Minister.
Matthew Pennycook (Greenwich and Woolwich) (Lab)
Thank you, Mr Speaker. As a result of the Government’s failure over many years to make decisive progress in tackling the main sources of problem nutrients, namely farming and waste water treatment works, the requirements for nutrient neutrality in sensitive river catchments present a challenge to securing planning permission for new housing development. It is therefore right in Labour’s view that the operation of the rules around nutrient neutrality is reviewed with a view to addressing problematic delays and increasing the pace at which homes can be delivered in these areas.
However, we have serious concerns about the approach that the Government have decided on. Not only does it involve disapplying the Conservation of Habitats and Species Regulations 2017, but it does not legally secure the additional funding pledges to deliver nutrient management programmes and does not provide for a legal mechanism to ensure that housing developers contribute towards mitigation.
I put the following questions to the Minister: what advice did the Government receive from Natural England about potential reform of the laws around nutrient neutrality? Did it offer a view on the Government’s proposed approach? Given the amount of mitigation currently available in the pipeline, which is estimated at allowing for approximately 72,000 homes, did the Government consider an approach based on the habitat regulations assessment derogation and a revised credit mitigation system to front-load permissions and provide for future compensatory schemes? If so, why did they dismiss that option? What assessment have the Government made of the impact of their proposed approach on the nascent market in mitigation credits, and investor confidence in nature markets more generally? Why on earth do Ministers believe developers will voluntarily contribute to mitigation under the proposed approach?
Finally, the Government claim their approach will see 100,000 planning permissions expedited between now and 2030. Given that house building activity is falling sharply and the pipeline for future development is being squeezed—not least as a result of housing and planning policy decisions made by this Conservative Government—what assessment has the Department made of the number of permissions that its disruptive approach will unlock within the first 12 months of its operation?
Rachel Maclean
I thank the hon. Gentleman for his questions and remarks. I take them to mean that he will support the measures when they come before the House. I am delighted to hear his support for our sensible, practical and pragmatic approach to unblock much needed housing across the country. He asked about our engagement with Natural England; we have had detailed discussions. He asked about the current legal framework; we have looked at and discussed a number of options to make the changes, and we are taking what we believe is the right approach to unblock planning permissions more quickly than the current situation allows.
The hon. Gentleman referred to nature markets; he is right to highlight the groundbreaking work we are doing across that piece. We are continuing with our commitment to those nature markets, which are a very important part of the Government’s plan to keep our environment, protect it and leave it in a better state than we found it. That is what the Conservative Government have always been committed to and continue to be.
The hon. Gentleman is right to say that we have spoken to developers, who, of course, support our objectives. We have very constructive dialogue with the developers, who are happy to contribute. We will have those discussions with industry, as I am sure he has heard from developers, because I know he has spoken to them all. We are on the side of those builders. It is important to say that the developers most affected by the disproportionate ruling from the European Court of Justice are not the big developers but the small and medium-sized enterprises—the small builders—some of which have gone bust. It is right that we stand behind them.
Cost of Living: Private rented sector
Matthew Pennycook Excerpts(3 years, 1 month ago)
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Matthew Pennycook (Greenwich and Woolwich) (Lab)
As ever, Dr Huq, it is a pleasure to serve with you in the Chair.
I start by congratulating my hon. Friend the Member for Stretford and Urmston (Andrew Western) on securing this incredibly important debate and on his powerful opening remarks. He has served in this place only for a relatively short time, but he has already made a considerable impact. His commitment to advocating for all those at the sharp end of the acute housing crisis has helped and will continue to help to ensure that it remains a prominent consideration for the House.
I also thank all those other hon. Members who have participated in this afternoon’s debate. I particularly commend the compelling contributions of my hon. Friends the Members for Barnsley East (Stephanie Peacock), for Pontypridd (Alex Davies-Jones), for Birmingham, Erdington (Mrs Hamilton), and for Cynon Valley (Beth Winter)—I hope that I pronounced that last constituency correctly.
I also want to take the opportunity at the outset to express the Opposition’s thanks to all those organisations that have done so much to keep the issue of renters’ reform on the political agenda, particularly the 20 organisations that form the Renters’ Reform Coalition.
The cost of living crisis remains the most pressing issue facing households across the country. Against the backdrop of static inflation and rising core inflation, prices in some areas are easing, but remain high by historical standards. Pay is now rising, despite a cooling labour market, but continues to fall in real terms. Direct cost of living support for households is being scaled back, and the Government have overseen one of the biggest tax rises in a generation. As a result, families are continuing to feel the squeeze, and many are cutting back on essentials, withdrawing savings and racking up debts.
All the evidence suggests that private renters are particularly hard hit. Data released by the Office for National Statistics only on Friday, made clear that renters are nearly five times as likely to be financially vulnerable compared with mortgage holders or outright homeowners. According to that analysis, as many as four in 10 renters are finding it difficult to pay their rent. Renters are more likely than mortgage holders to cut spending on groceries and other essentials, to run out of food, and to be behind on energy payments.
The pressure on private renters reflects, at least in part, the sharp increase in rents over the recent period, owing to the mortgage crisis this Conservative Government presided over, as well as the general shortage of lettings, an issue rightly highlighted by my hon. Friend the Member for Stretford and Urmston in his comments relating to overall supply. According to the ONS, private property rental prices across the country rose 5% in the 12 months to May 2023, the biggest increase since the national data series began in 2016, with rent rises most acute in London.
We have heard several statistics in the debate, and other analysis suggests that the situation could be even more dire, with property website Rightmove suggesting that rents have risen nationwide by 9.4% in the past year, and by an eye-watering 14% in Greater London. The combination of all those pressures means that the situation for many renters is nothing short of dire. According to Shelter, almost 2.5 million are either behind or constantly struggling to pay their rent, an increase of 45% since April 2022. An analysis produced by the debt advice charity, StepChange, suggests that private renters are twice as likely as the general population to be in problem debt.
With renters across the country at breaking point, and many falling into arrears and at risk of eviction, they urgently need the long-term security and better rights and conditions they have been promised by this Government. After so many years of waiting, the Government finally published the Renters (Reform) Bill on 17 May. Yet, two months on, the Bill has not had its Second Reading and will not have it before the summer recess. That means, as my hon. Friend the Member for Pontypridd mentioned, we will not get a chance to consider it before September.
The Government’s justification for the delay, as suggested by the Secretary of State at departmental questions last week, is that a “fit-for-purpose impact assessment” was required to be available before progressing the legislation. No one disputes the need for a fit-for-purpose impact assessment to accompany the Bill, as we subject it to detailed scrutiny. We welcome the fact that the regulatory policy committee declared it green rated as of 3 July. However, it is frankly laughable for a Government that published the impact assessment for the Levelling-up and Regeneration Bill the day before Third Reading to suggest the absence of a fit-for-purpose one is the sole reason that Second Reading of the Renters (Reform) Bill was delayed.
Whatever the reason for the delay, with a green-rated impact assessment now available, there is no reason whatsoever that we cannot begin to progress this long overdue and desperately needed piece of legislation. Will the Minister confirm to the House, and all those renters following our proceedings today, that the Renters (Reform) Bill will finally have Second Reading in the weeks immediately following the House’s return after the summer recess? Can she also reaffirm the commitment she made in response to a question from journalist Vicky Spratt at the Renters’ Reform rally on 21 March, to the effect that the Government will ensure that the abolition of section 21, and presumably therefore the passage of the Bill in its entirety, will be completed this autumn?
As the Minister will know, the Opposition were supportive of the proposals published in the “A fairer private rented sector” White Paper last year, on the basis that they provide a solid foundation for overhauling the private rental market, and we welcome much of what is in the Bill. However, we do have some concerns. We were troubled, for example, that the proposed legally binding decent homes standard for the private rented sector, and the ban on landlords refusing to rent to those in receipt of benefits or with children, commonly known as “no DSS” practices, are not in the Bill.
The explanatory notes accompanying the Bill state:
“The Government is carefully considering how to implement these policies and intends to bring forward legislation at the earliest opportunity within this Parliament.”
The Minister confirmed to the Levelling Up, Housing and Communities Committee last Monday that separate legislation was not required, but that the Government intended to introduce both measures, along with stronger enforcement powers for councils, through the Renters (Reform) Bill. Can she confirm today that that is indeed the case? Will she provide the House with an assurance that the changes will be considered and scrutinised in Committee, rather than tabled as detailed amendments just prior to Report, thereby allowing for only limited scrutiny, as her Department has done with other pieces of recent legislation?
Lastly, the Minister will know that the Opposition regret the fact that important elements of the White Paper are missing from the Bill as published, including powers to limit the amount of advance rent that landlords can ask for and measures to expand rent repayment orders to cover repayment for non-decent homes. Can she tell us whether the Government are open in principle to amending the Bill to include those measures and to address its other well-known and well-understood deficiencies and loopholes, not least the inadequate means of redress provided for challenging extortionate within-tenancy rent hikes, or is it the Government’s intention to resist such attempts to strengthen this important piece of legislation?
Private renters have waited long enough to secure a fair deal. The case for transforming how the rental sector is regulated, and for finally levelling the playing field between tenant and landlord, is indisputable. The case for reform existed before the cost of living crisis, which has now made it an urgent imperative. The Government must act, and must act boldly. I look forward to listening carefully to the Minister’s response.
Draft Building Safety (Leaseholder Protections etc.) (England) (Amendment) Regulations 2023
Matthew Pennycook Excerpts(3 years, 1 month ago)
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Matthew Pennycook (Greenwich and Woolwich) (Lab)
It is a pleasure to serve with you in the Chair, Mrs Murray. I thank the Minister for the detailed explanation she has just read into the record.
The Opposition welcome this instrument and do not intend to oppose it, although we do bemoan the fact that it has proven necessary for the Government to bring it forward. After all, these regulations consist mostly of technical amendments to regulations previously made under the Building Safety Act after it came into force. For example, regulation 10 amends the definition of resident management companies to ensure consistency across the relevant regulations. Surely, the need for such basic definitional alignment could have been anticipated in the drafting of the previous regulations. We appreciate fully that these are not simple matters, but the fact that this Committee is having to meet this afternoon to rectify what are largely obvious deficiencies and omissions in the drafting of the previously approved regulations does not exactly inspire confidence in the Government’s approach to leaseholder protections and the building safety crisis more generally.
During the passage of Building Safety Bill, we warned about the consequences of rapidly overhauling what was already a complex and technical piece of legislation in order to reflect the Government’s belated change of approach. Indeed, I remember arguing when we considered Lords amendments to the Bill in April last year that it was deeply problematic that this House had so little time to carefully consider or properly scrutinise substantial changes to the legislation. As I said at the time,
“this is no way to make good law”—[Official Report, 20 April 2022; Vol. 712, c. 191.]
Our concerns persist when it comes to the regulations before us. What assurances can the Minister give us that, in rectifying the deficiencies and omissions in previously approved regulations, the same errors will not recur in respect of the many other building safety instruments that we still need to consider?
While the bulk of this instrument concerns technical amendments to recently approved regulations made under the Building Safety Act, there are some noteworthy new provisions. I would like to press the Minister for specific information on one in particular: regulation 4, which adds Homes England to the list of interested persons who may seek remediation orders and remediation contribution orders under sections 123 and 124 of the Act. Leaving aside the obvious question of why it was not included from the outset, particularly given that it administers the building safety fund outside London, the addition of Homes England to the list of persons who can seek an RO and an RCO raises several questions.
First, is it the Government’s intention that, following the passage of this instrument, Homes England will largely or wholly take over the Department’s functions when it comes to applying to the first-tier tribunal for ROs and RCOs? Secondly, if that is the intention, do the Government expect this transfer of responsibility to lead to an increase in the number of such orders being applied for, beyond the extremely small number of orders that the Department is presently taking forward? Thirdly, will Homes England be provided with any further funding in order to fulfil this new responsibility—perhaps some of the £1.9 billion of allocated funding that the Department recently returned unspent to the Treasury?
As I have suggested, while there is good reason to believe that the need for them could and should have been anticipated, the instrument contains a series of perfectly sensible refinements to previous regulations, the effect of which should be to streamline the landlord certificate and leaseholder deed of certificate process. As the Minister has made clear, the draft regulations include provisions specifically requiring a landlord certificate to be served within four weeks of a landlord becoming aware of a new leaseholder deed of certificate containing information not included in a previous landlord certificate; changes to the information required to be included in a landlord certificate; and changes to the time period within which a landlord must share a copy of a received leaseholder deed to any RMC, RTM or named manager or else be prevented from recovering costs.
We take no issue with any of these measures. However, we regret that, although the instrument makes these necessary changes, it is a missed opportunity to resolve a number of other glaring deficiencies in the Building Safety Act that the Government really should have resolved by now. Let me give the Committee two brief examples.
The first example concerns the gap in the Building Safety Act that exists for those leaseholders who need to extend or vary their lease on or after 14 February 2022. The Minister and her officials are well aware that any leaseholder granted a lease extension or variation in a block of flats after that date does not benefit from the protections provided for under schedule 8 to the Act, even if the surrendered lease had the benefit, with the effect that leaseholders are being advised by the Government to try to persuade their landlord to apply those protections as contractual terms. The Government have stated on the record that they are
“looking to legislate to resolve this issue as soon as parliamentary time allows.”—[Official Report, House of Lords, 2 May 2023; Vol. 829, c. 1392.]
Why are the Government not using this instrument to address that shortcoming?
The other example concerns the circumstances in which the costs of remediating relevant defects in relevant buildings can be charged back to leaseholders. As the Minister will know, in the recent case of Adriatic Land 3 Ltd v. Leaseholders of Waterside Apartments, St James Court West, Accrington, the first-tier tribunal held that the service charge protections under schedule 8 to the Act were not retrospective. As a result, those landlords who, seeing the writing on the wall, quickly sent out demands for service charges to cover the cost of remedial works before the Act came into force on 28 June last year have seemingly got away with passing on significant costs to leaseholders. The Government are surely not expecting individual leaseholders or groups of leaseholders to fund litigation to settle the law, so why are they not using this instrument to clarify that the provisions of schedule 8 are retrospective?
In addition to the specific questions that I have put to the Minister about regulation 4, I would be grateful if she explained why these and many other unresolved issues are not being addressed in this instrument, and if she provided further detail on whether and when they will finally be addressed.
Social Housing (Regulation) Bill [Lords]
Matthew Pennycook ExcerptsMonday 17th July 2023
(3 years, 1 month ago)
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Dehenna Davison
The hon. Gentleman is, as ever, a fantastic champion for Northern Ireland and its people. We will, of course, continue to have conversations with the relevant bodies in Northern Ireland, because it is important that social housing, wherever it is provided within the United Kingdom, is up to the appropriate standard. I know he will continue to champion that cause.
In closing, I would just like to put on record one final time my and my Department’s heartfelt thanks to Grenfell United and all other stakeholders for their strong constructive engagement on this critical legislation. I hope that, following today, we will see it on the statute book incredibly soon.
Matthew Pennycook (Greenwich and Woolwich) (Lab)
I intend to be brief, because the sole amendment we are considering is entirely uncontentious.
As you will no doubt recall, Madam Deputy Speaker, the Opposition welcomed the concession the Government made in the other place last year with regard to professional training and qualifications, and the resulting addition of clause 21 to the Bill. Having pressed in Committee for that clause to be strengthened, we also welcomed the Government’s amendment to it, which was tabled on Report earlier this year on the basis that it largely assuaged our concerns. We support Lords amendment 13B in lieu of Commons amendment 13, as do the relevant trade bodies and tenant groups including Grenfell United and Shelter, whom we once again commend for the role they played in convincing the Government to incorporate qualification requirements in the Bill.
Lords amendment 13B is a technical amendment that has three main effects. First, it will ensure that the qualification requirements in clause 21 capture relevant managers working for organisations which deliver housing management services on behalf of a registered provider. Secondly, it will ensure that contractual agreements between registered providers and delegated services providers and relevant sub-agreements contain terms stipulating that their relevant managers should have, or be working towards, a specified qualification in housing management, thus enabling registered providers to take action against delegated services providers that are not compliant. Thirdly, the amendment expands on definitions of services providers and specific roles, and provides for consultation before setting a standard and before giving a direction to set a standard.
We agree with their lordships that the changes are necessary if we are to ensure that the sector as a whole delivers high-quality professional services of the kind social tenants deserve and rightly expect. I want to put on record our thanks to my noble Friend, Lady Hayman of Ullock for bringing the need for this amendment to the Government’s attention and for her efforts more generally to improve the Bill in the other place.
It is our sincere hope that once the House has agreed this minor but necessary change today, this important and urgently needed piece of legislation can quickly receive Royal Assent so that we can overhaul the regulation of social housing and better protect the health, safety and wellbeing of social tenants across the country.
Question put and agreed to.