Inter Faith Network for the UK

Ruth Cadbury Excerpts

Wednesday 10th January 2024 Commons Chamber

[Holly Lynch (Halifax) (Lab)]

I sought to secure this debate to be an advocate for the great work of the Inter Faith Network, which feels more important and more necessary than ever before, but also to be clear with the Government that the network faces imminent closure if they do not deliver on their July 2023 commitment to continue to provide funding.

Here in the UK, we are a religiously diverse country. The Inter Faith Network was founded in 1987 as a way to advance public knowledge and mutual understanding of the teachings, traditions and practices of the different faith communities in Britain, including an awareness of both their distinctive features and their common ground, and to promote good relations between people of different faiths in this country. I do not think anyone could find fault with that.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

I thank my hon. Friend for securing this debate. I am a big fan of Hounslow Friends of Faith because of the work it has done to bring communities together—particularly at times of heightened community tensions that affect our communities—but also its other activities, such as a public health video on suicide prevention. Does my hon. Friend agree that the success of our local Friends of Faith or equivalent organisations is only possible because there is a robust national organisation that supports them in their work?

[Holly Lynch]

I am really grateful to my hon. Friend for that intervention. She is absolutely right, and I join her in paying tribute to Hounslow Friends of Faith. She has shared a really powerful example of where faith communities can work together to deliver truly beneficial projects and initiatives that go deep into communities, perhaps in ways that other statutory agencies cannot.

--- Later in debate ---

[Simon Hoare]

I do not think I can give way, because I think I have about 57 seconds left before the end of the debate.

[Ruth Cadbury]

Sign the cheque!

[Simon Hoare]

I have neither chequebook nor pen to hand.

Let me say, in closing, that the work of the network is understood and the importance of that work is very clear. The network is not the only body that provides forums and organisations to deliver inter-community and inter-faith discussions. There are others, but we hope to be able to make an announcement in due course.

Question put and agreed to.

Leasehold and Freehold Reform Bill

Ruth Cadbury Excerpts

2nd reading
Monday 11th December 2023 Commons Chamber

[Rachel Maclean]

No, because I need to make progress. Perhaps I will allow the right hon. Gentleman to intervene a little later.

The key factor here is choice. At present, leaseholders do not have a choice, or they have a fake choice. The Bill will give them a genuine choice when it comes to how they manage and own their homes. However, while I warmly welcome these measures, we can and must go further. May I draw the attention of the Secretary of State and the Minister to a few of my suggestions?

The measures in the Bill will clearly be of enormous benefit to individual leaseholders, making it easier and cheaper for them to buy freeholds or extend leases, but of course this is a very complicated area, and I know it will be difficult for many leaseholders to understand exactly how much they will benefit financially. My first suggestion, therefore, is the provision of an easy-to-use digital calculator enabling people to see what the Bill means for them.

Then there is the issue of commonhold fixes. I know that the focus here is on ensuring that leaseholders cannot be exploited and can take control of their homes, but there is a clear Conservative and free-market rationale for accepting the Law Commission’s recommendations on reforming commonhold so that more developers choose it, rather than leasehold, for new blocks of flats—not because they are forced to do so, but because it is the best option for their business model. Can the Government look at that again? All the work has already been done.

I strongly welcome the Government’s consultation on capping ground rents. As I said in an intervention earlier, the Secretary of State must look at who is making the representations, and bear in mind the old adage, “They would say that, wouldn’t they?” when people oppose such caps. We know that ground rents are sheer exploitation. Let us call a spade a spade: this is money for nothing. Can the Minister assure me that there will be time to get a cap into the Bill once the consultation has closed?

We have all heard of too many sad cases involving a hard core of truly exploitative and dodgy freeholders—the bad apples—ripping off and exploiting leaseholders. We know that there are some freeholders who treat people properly, but the others know that going to court will be too much hassle for most people, and indeed that the odd tribunal defeat is just part of the cost of doing business. We must do something to ensure that there is a real cost to those unscrupulous companies and their directors.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

I thank the hon. Member for the work that she has been doing on this issue. However, she implies that the rip-off merchants constitute only a certain proportion of freeholders. Is she not aware that these people have been working in cahoots over the past 10 years, attending conferences, identifying the weaknesses in the law, sharing information and forming links with professionals such as agents and solicitors in order to rip off innocent leaseholders? This is a consistent, organised scam that has been growing over 10 years, which is why there are so many more problems now than there were, say, 15 or 20 years ago.

[Rachel Maclean]

Of course I am aware of that. When I was privileged to hold the position of Housing Minister, I strongly supported the relevant legislation, because those people sat in front of me and cried crocodile tears, telling me that if we went ahead with it we would destabilise the pensions industry and leave lots of little old ladies with no pensions—which is obviously complete and utter nonsense, as I am sure the Secretary of State and the current Housing Minister, my hon. Friend the Member for North East Derbyshire (Lee Rowley), will be able to tell me on the basis of the analysis that they have conducted.

We also need assurances about section 24 managers. I note that, in recent weeks, at least one freeholder has tried to wrest control of a building back from a court-appointed manager—a so-called section 24 manager—claiming that it is incompatible with the Building Safety Act 2022. That is obviously nonsense. If a freeholder has been found not to be managing his building properly, it shows some cheek to try to ditch a court appointee on such spurious grounds. I hope that the Minister will take the opportunity later to give us the Government’s view.

I welcome the Government’s intention of introducing building safety measures to ensure that remediation continues to accelerate, and to make it easier to ensure that the right people pay, but may I press the Minister for a little more detail? I know that, even as we speak, people are making serious decisions about their own finances.

My constituents in Brockhill, especially those in the Persimmon Homes development, have faced innumerable issues relating to freehold estates, and I must press the Minister on what measures he will introduce to help them and, most importantly, when he will do so. I know that the Government intend to introduce a right to manage for freeholders, and to challenge arrangements and charges through the first-tier property tribunal. However, I urge him to read again the Hansard report of the Westminster Hall debate in which I responded, on behalf of the Government, to my hon. Friend the Member for North East Bedfordshire (Richard Fuller), who had told a story about one of his constituents who had had to pay thousands of pounds for one lamp post. This is an outrageous state of affairs, and I want the Government to introduce measures that will tackle it and many others. Currently, throughout the country, people’s new dream homes are turning out to be a nightmare. They are being ripped off by small-print clauses that turn into big bills, and they have no redress. That must be fixed.

Finally, there is a need for regulation of the property management sector more broadly. I recognise that the Bill was not the right vehicle for it, but I urge the Minister to continue to push ahead with a reform that must happen, if not on this side of a general election, then on the other side.

We Conservatives believe that the opportunity to own one’s home is sacrosanct, and the Bill takes another important stride towards the creation of a true property-owning democracy. While, as we have made clear, we stand firmly on the side of fairness and those who want to own a home, we are still none the wiser when it comes to where Labour Members stand. One week they are on the side of the builders, not the blockers—or so they say. The next week, they are blocking our proposals to build 100,000 new homes that first-time buyers and young families would desperately want to possess. While they decide whose side they are on, we are taking important steps to improve the lives of millions up and down the country. I look forward to working with Ministers on the Bill as it goes through the House to strengthen some of its measures, particularly those on commonhold and freehold estates, and to ensure that we deliver on the promise that it holds.

Let me end by wishing my hon. Friend the Minister better luck than I had in his tenure of this important role. I especially hope that he can remain to finish the vital job of leasehold and freehold reform and restore true property ownership to millions. He will have my full support in the Lobbies.

--- Later in debate ---

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

It is a pleasure to speak on the Second Reading of the Leasehold and Freehold Reform Bill and to follow so many excellent contributions from Members across the House. They have all provided examples, most of which I have experienced in my eight and a half years in this place.

For years and years, leaseholders, campaigners and groups such as the Leasehold Knowledge Partnership have been warning the Government about the huge harm being done by our outdated, feudal and antique leasehold system. Many of us have raised it in this House. Problems with leaseholds is one of the biggest issues brought to me by constituents, and I am sure if the Minister joined me in meeting residents of just one or two blocks in my constituency, whether it was Great West Quarter in Brentford, Grove House in Isleworth or Wheatstone House in Chiswick, he would see the wide array of problems caused by the leasehold system.

We have had nearly four years of promises from successive Conservative Housing Ministers and Secretaries of State to commit definitely to leasehold reform. The Government have talked a good game but failed to deliver the big comprehensive package of reforms needed. This piece of legislation is yet another example of that failure.

This was supposed to be the grand reforming Bill from the grand reforming Secretary of State, who is not currently in his place. He has become the Conservatives’ Mr Fix-It. He was sent in to fix the justice system and then the Cabinet Office, and even to deliver the parting blow to the former Prime Minister. When he was presented with the leasehold system, there was a glimmer of hope that the Government would slay the vested interests and finally fix this antique system—but no, the right hon. Member has flinched. He has failed, because before us today we see a timid and narrow Bill that does not go anywhere near far enough to fix the problems faced by leaseholders.

Most new homes in my constituency are flats, not houses, so although ending the sale of leasehold houses is welcome overall, it will not help my constituents and the millions across the country who are still living in, or face the prospect of living in, leasehold flats. If the House will indulge me, I will give a typical example of why the leasehold system is outdated and just what the legislation should be addressing.

Imagine someone in their early 30s on the career ladder in a reasonably well-paid job. They have saved up for years, often while stuck in private rentals. They finally have enough for a mortgage, and they can just about afford the monthly repayment rates. They look across west London and cannot afford to buy a house, but they then see a glossy advert for a flat. At first glance, it looks perfect. They have worked out that they can get a mortgage and use their deposit to get a foot on the ladder. It looks as if their salary can pay the mortgage and the service charge, so they buy and assume that they have a stake in the home that they now own.

Too often, they are kept in the dark by solicitors who are often recommended by developers. They move in and the problems start. They notice a few problems: the promised concierge might not be there; the gym on the brochure never opens; rubbish is left in the hallways; the car park barrier and the door from the car park into the flats are often broken, creating a security hazard; and heating and hot water stop working for weeks on end. They report those issues, but nothing happens. Then, they get their service charge bill in the post: it has increased to more than £7,000 a year, over 50% more than what they were told they would be spending.

One constituent has seen a trebling of their service charge since they bought their flat in 2017, but while the service charge goes up, the services get worse. Leaseholders feel that they are treated like cash cows. Then they are hit with an increase in their building insurance: what was £200 a year is now £400, £500 or more. They ask why those costs have gone up, but they do not receive a specific or clear answer. Many are faced with having to sell, sometimes at a loss.

If they were lured into shared ownership, managed by housing associations, they face additional problems. The part-buy/part-rent set-up is supposed to be targeted at keyworkers in the public sector, many of whom are on fixed pay. On top of the mortgage and service charges, those so-called owners—they are not really owners, are they?—find out that their rent is going up. In many cases, my constituents in shared ownership have seen rent increases of 6%, 7% or 8%. They only own 20% or 25%, and if they need to sell, they have to sell through their housing association, unless they are in the fortunate position of being able to step up and own the lease outright. A report that I read said that many housing associations drag their feet on resales as there is not much money to make from them. They focus their energy on getting the new blocks sold.

I have heard from many constituents who are shared owners. They wait months and months to sell, and have to pay for costly valuations, while they are trapped in limbo trying to get on with their lives. Many of my constituents who are leaseholders are also unable to sell because they are waiting for remediation work to begin on blocks deemed to be unsafe. Much of that emerged following the tragedy at Grenfell. Banks will still not approve mortgages for those blocks until the work is carried out, which means that, again, those leaseholders are trapped in limbo.

In one case in my constituency, Galliard Homes has delayed and delayed taking any action, despite promises that it would start months ago. Leaseholders in blocks below 12 metres are still responsible for funding building safety fixes. They were carved out and left to deal with the crisis themselves. For one of my constituents, that means a £20,000 bill hanging over their head. The building safety crisis is a wider symptom of the building culture that the leasehold system encouraged; a system in which a small number of people and companies are able to make huge profits, with absolutely zero oversight of the build quality.

Let me move on to repairs. The residents of Wheatstone House in Chiswick, which is managed by L&Q, face an example of poor repairs services. Leaseholders and tenants in that block have known their hot water and heating not to work for days on end. That started last winter and is back again this winter. Each time, residents get a lacklustre and slow response from L&Q. We saw a repeat of such poor service when Peabody-Catalyst dragged its feet for months in fixing the lift at Aplin Way in Isleworth, trapping some residents upstairs. The developer then tried to leave leaseholders with a huge bill. Others have district heating systems that run at 35% efficiency but cost a lot of money. What does the legislation do to address those issues?

On service charges, management companies have their cake and eat it. The hon. Member for Dartford (Gareth Johnson), who is no longer in his place, mentioned the excess charges, increases well above inflation, deteriorating service and opaque bills. Management companies are often too closely aligned by ownership with the freeholders. The same names keep coming up: Rendall & Rittner and FirstPort appear to be hoovering up the management contracts for a range of blocks, including housing association, shared ownership and resident management companies, all the while providing an appalling service to the leaseholders.

On declining value and the need to extend leases, constituents have told me about how they worry about their future if they have less than 80 years left on their lease. I do not think that the Bill does enough to address that challenge.

I am pleased that my hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook) has said that a Labour Government would go further and ensure that everyone who wanted to move from leasehold to commonhold would be able to do so. A Labour Government will make commonhold the default tenure for all new properties, and will carry out the Law Commission’s recommendations—I welcome that. Labour will also address the omission on deferment rates. We will do what the Conservatives have failed to do.

I have touched on only some of the many and varied issues that my leaseholder constituents have faced. The legislation does not go far enough for them and will not fix the problems that they face. It will not help those who are stuck in limbo and unable to sell, it will not help those who were tricked into shared ownership with false promises, and it will not prevent yet more leaseholders from having their lives turned upside down. When someone is handed their first set of keys, it should be a day of dreams, but for so many of my constituents and millions of people across the country, that dream has turned into a nightmare. The Government had a chance to end that nightmare through this piece of legislation, but they have failed to do so.

Leasehold Reform

Ruth Cadbury Excerpts

Tuesday 23rd May 2023 Commons Chamber

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

Thank you, Madam Deputy Speaker—sorry.

[Mr Deputy Speaker]

It has been a long day.

[Ruth Cadbury]

Oh, it has, Mr Deputy Speaker. It has been a long week—and it is only Tuesday.

It is over six years since I first spoke about the issues facing leaseholders in this House, and these issues have only got worse for so many of my constituents. They are compounded, of course, by the consequences of the fire safety scandal that the Grenfell fire exposed. Members on both sides of the House have mentioned many of the issues that provide a significant proportion of our casework and take up the time of our staff. I particularly thank the Leasehold Knowledge Partnership for the advice and support it have given us and our constituents.

Reform is needed because, for so many living in my constituency, leasehold is the only way that most first-time buyers can get a foot on the housing ladder: 50% of all residential property purchases in London in 2021 were leasehold. The huge deposit and mortgage needed for a traditional two-up, two-down house in London, particularly in my west London constituency, coupled with the spike in mortgage costs, have now made it virtually impossible for families to buy a freehold home. This means that middle-income people and even those who many would call high-income people are pushed into buying a leasehold flat. Some young people—including many NHS workers, teachers and many more—can just about afford to go into shared ownership, but in my experience that is a particularly perverse form of leasehold.

Imagine how it must feel for a young couple, who have worked hard and saved up, when they buy their first flat. They get the keys and they are filled with joy, but then the problems first appear. They notice some antisocial behaviour, and they notice the failure of the managing agent to ensure the car park is properly secure. They report it, but nothing happens. Then they get a bill for the service charge, and it has more than doubled, plus it is not itemised. They are already struggling with the cost of the weekly shop, and then they are hit with another charge. They ask why the service charge has gone up, especially when standards in their block remain so low, and they do not get an answer. Then they find out that, in six months’ time, their share of the building insurance will go up not by 10% or 50%, but by over 200%. Where are they supposed to find this money? Imagine how it would feel with this constant hammer blow after hammer blow, and the dream of home ownership rapidly turning into a nightmare.

What I have described is one example from my constituency, but the many examples show that the central thread running through the existing leasehold system is the lack of power for leaseholders—the David against Goliath nature of the battle. Just last week, I met leaseholders in Aplin Way in Isleworth, who are facing an astronomical bill to replace the lifts in their block. It is 50 years old, so the lifts do need replacing. They have asked why it is costing so much when cheaper options are available, but they have not had a clear answer from, in this case, the housing association that owns the block. Their ward councillor, Tony Louki, and I have tried to seek answers, but even we have not had replies to our correspondence. After no response had been received, suddenly last week the contractors appeared on site. The leaseholders know they will soon be forced to pay their share of the astronomical bill, and this is causing particular stress to the many pensioners who own their own home in that block.

Being a leaseholder in this country is increasingly like trying to push an ever larger boulder up an ever steeper hill. The central point of frustration is the fact that leaseholders are being ripped off. They are paying eye-watering amounts every year, yet in many cases they do not know where the money is going. There is no transparency.

One particular case is at APT Parkview in Brentford, where there is a mix of leaseholders and tenants of the building owner. Leaseholders have seen their communal services keep rising in price, but then suddenly stop after they made complaints about their bills. One day there was no concierge, the gym was closed, there was no cleaning of the common parts and no security in the car park, but then there was a sudden extra charge for air conditioning on top of their existing rising energy bills. The case of APT Parkview has also shown the lack of enforcement action available to protect leaseholders. The council could not help, the powers of the ward councillors are limited, and when I wrote letters and raised the issues on the Floor of this House, they were still not resolved. The tenants in the block sought legal advice, and it appears that they have somewhat stronger rights than the leaseholders.

Another frequent offender in my constituency, although it is an issue across the country, has been FirstPort—it has been mentioned today. It regularly hiked up building insurance and service charges while ignoring the complaints and concerns that residents had about communal areas. Often it did not carry out the services for which people were supposed to be paying. Liam Spender, a committed campaigner on leasehold reform, recently took FirstPort to tribunal and won. David beat Goliath, and FirstPort had to pay back at least £479,000 in overpaid service charges to all leaseholders in the block. As my hon. Friend the Member for Dulwich and West Norwood (Helen Hayes) said, such problems have been compounded by the fallout from the Grenfell fire and the Government’s foot-dragging on that issue.

With leasehold, one never owns one’s own home but merely has the right to occupy it, and to sell that right for the remainder of the lease. It is not ideal, but historically it was a stable, normal type of home ownership that provided homes for many millions of people. Over the last no more than 20 years, we have seen the growth of what can only be called scams on the leasehold system, effectively monetising that system for profit, often offshore profit. Such scams include the extensive sale of freehold houses, extortionate service charges, the ground rent scandal, and developers selling the freehold from under leasehold flat owners, who were promised when their bought the lease that they would have the chance to buy that freehold. Then there are the close and unethical links between developers, freeholders, solicitors and managing agents. Scammers held conferences to network and share best—perhaps I should say worst—practice on how to exploit the glaring gaps in our leasehold system. We can plug some of the gaps, particularly for the benefit of existing leaseholders, but the only way to stop future exploitation is to replace private leasehold with commonhold.

The Secretary of State promised to reform leasehold and called it an

“unfair form of property ownership”.

Those of us speaking today agree with that, but where are the widespread reforms? Have plans been watered down by the Prime Minister? If so, that is no surprise from a Prime Minister who is out of touch with the reality facing leaseholders across the country, who does not understand the strain and stresses facing ordinary hard-working people who are trying to keep their home, and who is out of touch about the very country he is apparently running.

I am pleased that my hon. Friends the Members for Wigan (Lisa Nandy) and for Greenwich and Woolwich (Matthew Pennycook) have committed that a Labour Government would do what the Conservatives are too weak and out of touch to do, which is end the sale of new private leasehold houses, grant residents greater power over the management of their own home, and crack down on unfair fees, with the right to challenge those rip-off fees. I am pleased that Labour has committed to the Law Commission’s recommendations to make it easier to convert leasehold to commonhold, because for so many of my constituents, leasehold has turned into fleecehold.

Oral Answers to Questions

Ruth Cadbury Excerpts

Monday 27th March 2023 Commons Chamber

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

I, too, have many constituents who are leaseholders and who are stuck in limbo and facing astronomical bills through no fault of their own. Meanwhile, developers such as Galliard have refused to sign the Government’s latest pledge. What is the Secretary of State doing to fix that aspect of the building safety crisis?

[Michael Gove]

Applying a vice-like grip to their nether regions.

Building Safety

Ruth Cadbury Excerpts

Monday 30th January 2023 Commons Chamber

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

Flammable cladding and fire safety issues are not the only building safety concerns that affect the residents of blocks, particularly those built since the post-2010 bonfire of red tape. What is the Secretary of State doing to protect leaseholders and residents in blocks that have non-fire-related safety issues?

[Michael Gove]

The hon. Lady makes an important point. One of the things I announced last week was new support, initially for Greater Manchester and the west midlands, to make safe a variety of safety issues in social housing in particular. We all have the horrific death of Awaab Ishak in our mind and on our conscience. More work is required on building safety, and I gently say that I do not believe there is a material difference in our post-2010 approach to this important issue, but I do believe this Government should have acted earlier to learn the lessons of the past.

Oral Answers to Questions

Ruth Cadbury Excerpts

Monday 9th January 2023 Commons Chamber

[Dehenna Davison]

I cannot promise a positive outcome at this stage. All bids are under consideration, but there will be an outcome before the end of the month.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

Over a million households and growing have real housing needs. According to the Institute for Fiscal Studies, the Minister’s Department has seen the largest proportional reduction across Government in post-2025 spending plans. What steps are the Government taking to ensure that there is adequate funding for social housing?

[Lucy Frazer]

The Government have an £11.5-billion fund to ensure that we have affordable housing.

Oral Answers to Questions

Ruth Cadbury Excerpts

Monday 21st November 2022 Commons Chamber

[Michael Gove]

That is an important issue that relates to permitted development rights. My right hon. Friend is on to something, so I look forward to working with her.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

As private sector rents continue to rise in west London, more and more of my constituents on low incomes and dependent on benefits are having to pay rent well above the levels of the local housing allowance. They cannot afford it and are having either not to eat or not to heat their homes. Will the Secretary of State make a statement about the urgent need for the Government to uprate local housing allowance?

Oral Answers to Questions

Ruth Cadbury Excerpts

Monday 17th October 2022 Commons Chamber

[The Minister of State, Department for Levelling Up, Housing and Communities (Paul Scully)]

I thank my hon. Friend, who does amazing work in tackling this issue in his area. In June, an uplift in energy efficiency standards for new homes came into force. There is a transitional period of one year to minimise disruption to projects that are already under way. To stop developers sitting on this, however, it will be about not just each project but each house, because homes must be built to the new standards.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

T8. Local councils such as Hounslow have a statutory duty to assess and care for unaccompanied asylum-seeking children placed in local hotels by the Home Office. Many of these children are clearly 13 or 14 years old, and on one day alone 72 arrived in hotels in the borough. What discussion has the Department had with affected boroughs about the additional support they need to provide their statutory duty to these hugely vulnerable children?

[Andrew Stephenson]

We are working closely with local councils to understand where the pressures are, and actively exploring options to find suitable long-term accommodation for a range of different asylum-seeker cohorts. I would be more than happy to meet the hon. Lady to discuss the specific challenges in her area.

Private Rented Sector

Ruth Cadbury Excerpts

Thursday 16th June 2022 Commons Chamber

[Eddie Hughes]

I have to be blunt and say, “Under no circumstances”—that is simply not a Conservative policy and it is not something we are going to pursue. The White Paper contains some things that will be helpful to the hon. Lady’s constituents, such as abolishing rent review clauses. Abolishing section 21 means that people should not have to move property so frequently and will save money that way. The No. 1 thing I would say, however—I keep apologising for being such a cheerleader for my boss—is that, since the Secretary of State took his post in September, he has been championing the idea that the Government should build more social housing and more properties for social rent. That is an invaluable contribution that will help her constituents.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

I, too, draw the House’s attention to my entry in the Register of Members’ Financial Interests. Like other Members, I endorse the direction in which the Government are going, but there are a lot of gaps that they could have addressed in the White Paper, only the summaries of which I have had time to see so far. Does the Minister agree that a key element of giving greater security, transparency and power to tenants is to ensure that letting agencies which act on behalf of landlords work to the highest standards as well? Could he commit to looking at a code of conduct for letting agents, as has been done in Wales?

[Eddie Hughes]

We have approximately 19,000 letting agents in this country and they need to belong to one of two landlord redress schemes. My understanding is that that is working quite effectively, but I am happy to meet and discuss any proposals that the hon. Lady might have. She is well informed in this area. I often see her in the Chamber discussing all things housing, so I value her contribution.

Social Housing and Building Safety

Ruth Cadbury Excerpts

Thursday 9th June 2022 Commons Chamber

[Michael Gove]

I thank the hon. Gentleman for that intervention. I know he is passionate about helping young people, particularly those at risk of homelessness and those who need decent homes. It is thanks to him that I have had the opportunity to meet people from Centrepoint, an amazing charity that has done such good work for so long. I look forward to the opportunity to see more of the work it is doing, which he has championed, to help those who are most in need of support to have a safe and decent roof over their heads.

I mentioned the legislation we are bringing in, which of course follows on from the publication of a new vision for social housing by my late colleague James Brokenshire. I think we would all want, as we reflect on James’s life and legacy, to recognise that one of the issues about which he was most passionate was making sure that the vulnerable and the voiceless had a champion in Government. It was his determination to set us on a path to stronger rights and better protections for tenants in social housing that has resulted in the legislation that my hon. Friend the Member for Walsall North is bringing forward.

Under that legislation, we will ensure that tenants know that they will be safe in their home, that they will be able to hold their landlord to account and that complaints will have to be dealt with promptly. They will know that they need to be treated with respect and that those who work in housing, to whom I am enormously grateful, will have the support and the extra professional training that they need to ensure that they work effectively with tenants. We also want to ensure that, in those circumstances—I hope they become progressively rarer—where there are real and genuine problems and an urgent need for action, there are new powers for rapid inspection and for unlimited fines, to ensure that appropriate steps are taken.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

I thank the Secretary of State for the Bills he is bringing forward. He talks about bringing in legislation to improve safety for social rent tenants, which is good—but is that in parallel with the safety that leaseholders and private sector tenants in similar kinds of blocks also expect? Will everybody who lives in or owns a flat that is safety compromised be as safe as his legislation seeks to make social rent tenants?

[Michael Gove]

Yes, that is our intention. The hon. Lady’s question gives me an opportunity to restate and underline one or two things, to make them perhaps a little more clear than I had hitherto. To my mind, and this is very much the theme of this debate, there are two big issues that the Grenfell tragedy threw into the starkest relief, which we should have addressed beforehand and which the tragedy makes it imperative that we do not forget.

The first issue is building safety. We have a compromised and weak regime that needs to change. We need to improve regulation, ensure that those buildings that are unsafe are made safe, and ensure that the people in those buildings do not pay for it, but that it is those who were contributors either to the system overall or to the state of those buildings who pay. That is one important set of issues.

There is another parallel and related set of issues. We know, because we can hear on tape the voices of those who were in that tower saying beforehand that they were not being listened to, at a time when changes were being made to their own home, that they were not paid attention to. That symbolises a wider problem of too many people in social housing not having their voices heard or their interests and lives protected. Of course, the two come together.

The tragedy raises other issues, on which I, my Department and others have reflected, and which I hope this House will return to as well. As the hon. Member for Brentford and Isleworth (Ruth Cadbury) rightly says, people in the private rented sector need their rights protected. We have some legislation that we will be debating in this House in due course that is intended to better protect the rights of those in the private rented sector by, for example, getting rid of section 21 evictions. I know the very close interest she takes in housing, so I hope we will have an opportunity to look at that Bill; if she has thoughts about how we can ensure that we do an even better job for those in the private rented sector, I look forward to working with her.

--- Later in debate ---

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

As others have reminded us, next week will mark five years since the Grenfell fire which claimed 72 lives. I want to add to the tributes to the residents and campaigners for the work they have been doing to keep the issue alive and call all of us involved to account.

Despite progress to some extent since the Secretary of State has been in post, we should not be under any illusion that the building safety crisis has somehow been fixed. Years before the Grenfell fire, the coroner’s recommendations relating to the Lakanal fire were not acted on by the Government, regulators or the building industry. The Lakanal inquiry report was one of many, many warnings that went unheeded. The building safety crisis triggered by the Grenfell fire has had a huge impact, not least on so many of my constituents living in buildings that would be safe and secure had those warnings been acted on. Instead, they are living in fear.

The worst incident in my constituency relating to the building safety crisis is that experienced by the shared owner leaseholders and students of the Paragon building in Brentford. They had to be evacuated, with a week’s notice, in October 2020. The cladding had already been removed but the inspections revealed fundamental flaws in the system-built housing blocks. Hard-working leaseholders and students just starting university were cast out. As shared owners, the hard-working leaseholders struggled to get back on the housing ladder, as the Notting Hill housing partnership could not afford to give them the current value for something they would be buying now. They were given only the deemed value of their property at the time, and it was too low to buy another property as a shared owner in west London. Their salaries had not increased significantly, but the values of alternative properties had. Meanwhile, all the costs of the compensation, the legal and organisational costs, had to be covered by Notting Hill housing partnership from its building and maintenance budget.

That was the most severe example, but I have had hundreds of emails in the past five years from other constituents. Leaseholders have had to pay for replacement cladding and waking watch and they may not get recompensed, depending on the situation. Residents were told that they needed a completed EWS1 form to sell their home, yet only about 300 trained professionals across the country could do those checks, so constituents had to put their lives on hold while they waited for a survey. Once the surveys took place, many residents in blocks across my constituency—in Hounslow, Isleworth, Brentford and Chiswick, and indeed, across the country—found that other major problems were apparent in their flats, such as inadequate fire breaks, incorrect insulation and more. In Richmond House in south London, a fire ripped through a small four-storey block of 32 flats. There was no flammable cladding but it was built wholly inadequately. Luckily, no lives were lost. That fire took hold in 11 minutes.

The consequences of all that mean that my constituents face life-changing bills, which can ruin them, and the uncertainty of having to put their lives on hold. The former Secretary of State, the right hon. Member for Newark (Robert Jenrick), refused to act. At least this Secretary of State acknowledges that the Government have some responsibility and that the response of Government since Grenfell has—I think his words were—“occasionally been insensitive”. I thank him for being honest enough to acknowledge that at the Dispatch Box today.

After months, we finally saw the Government taking action, but it is still too little, too late; and, as Members have said, what support there is applies only to certain defects and not to many others, including structural defects, fire breaks and non-fire defects. We have seen only the tip of the iceberg in regard to defects, thanks to systematic failures across the construction and regulatory sector. Meanwhile, my constituents still face bills for non-cladding defects. There is no help for those mired in the mortgage crisis and unable to sell their homes, and building insurance charges are skyrocketing. One of my constituents saw a 500% increase this year.

Furthermore, social rent landlords were not recompensed for the cost of the building safety crisis imposed on them in places where they house social rent tenants. They have had to dip into their capital budgets, further undoing any growth in the number of social rent homes that we need and adding to the irrelevance of the Prime Minister’s announcement today.

To me, the announcement that personal emergency evacuation plans will not be mandatory in buildings at risk was particularly shocking. The plans are crucial for residents with disabilities and their families to ensure that they can escape buildings during a fire. That was a recommendation from the first report of the Grenfell inquiry. I recently spoke to a constituent whose husband needs a PEEP. In this case, he needs a special chair to ensure that they can get him out of their flat and down the stairs. My constituent rightly said that the Government’s position is “woeful and discriminatory”. It is outrageous that the Government refuse to ensure that residents with disabilities are given the support that they need to escape during a fire. As we know from the past decade, if this is left to the invisible hand of the market and private companies in the sector are relied on to do the right thing, they will not do so.

I will finish by touching on social housing, particularly after the Prime Minister’s announcement. I thank my hon. Friend the Member for Mitcham and Morden (Siobhain McDonagh) for her graphic and emotional descriptions of the plight of her constituents in housing need in band A. I have many similar stories—I wish they were just stories, but they are lives.

After 12 years of Conservative Government failure to fix the housing market, Ministers are recycling and reheating old pilot programmes, with no new funding and no real plan. The Government know what they need to do: support councils such as Hounslow that are building more council homes and homes for social rent. The Government need to do far more. Hounslow is doing what it can with the resources that it has available. In the past three or four years, it has built more than 1,000 new council homes. It has also bought 500 homes, brought them into council ownership and allocated 20 of those to local care leavers. That was done with the help of the Mayor of London. Labour-led councils and Mayor Sadiq Khan are doing the right thing. If only we had a Government with the same commitment, they could do so much more.

With those 1,500 new homes, Hounslow Council is finally, after 10 years, achieving only level pegging on social rent and council housing numbers. Since the Conservative Government reinstated the 70% price discount for right to buy more than 10 years ago, Hounslow has steadily lost far more social rent homes than have been delivered. Nationally, as the shadow Secretary of State, my hon. Friend the Member for Wigan (Lisa Nandy), said, only 2,500 new social rent homes were built and 11,000 were sold. The gap is massive and growing. Most of the homes that have been sold through right to buy are now owned by private landlords, who are charging tenants three times the rent paid by the council tenant living next door. With many of those tenants on housing benefit to meet the gap between their salary and rent levels, that is a massive bonanza for private landlords, at a cost to the taxpayer.

Although I welcome proposals to give more of a voice and more rights to social rent tenants, in my view that only covers one set of people. Council tenants often feel frustrated. They are not always happy, but at least they have elected councillors who can support them with management and maintenance issues. Also, management, maintenance and investment decisions are taken by the council in public, but that is not true for housing association tenants. Many of my constituents are tenants of the larger registered social landlords. They are distant and opaque and often do not even respond to me and my caseworkers, let alone to their tenants. Legislating is therefore the right thing to do, but it has to be done properly. And what about private tenants? Too often, they are bullied and even evicted by rogue landlords, rather than listened to and supported. There is very little to actually improve the voice of leaseholders in private blocks. And there is, of course, the other subset: shared owners.

After 12 long years in power, it is clear that the Government still have no real plan to fix the housing crisis, no plan to end the injustice facing leaseholders and no plan to ensure that we build the good, high-quality, truly affordable homes that families in my constituency want and need.