Social Homes for Rent
Baroness Thornhill Excerpts(2 years, 6 months ago)
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Lord Greenhalgh (Con)
The noble Lord is right that we have seen a spiralling increase in housing benefit costs—staggering increases over the past decade or so. Of course, taking poor-quality private rented accommodation and turning it into high-quality affordable housing is a good thing and provides value for money for the taxpayer.
Baroness Thornhill (LD)
The Government’s recent announcement that right to buy is being extended to housing association properties will even further deplete the stock of homes for social rent. Is it now time to allow councils to keep 100% of their receipts from right to buy in order to rebuild and to give them the ability to set the discounts locally that their particular circumstances dictate?
Lord Greenhalgh (Con)
I have some sympathy with the point that the noble Baroness makes, but we should point out that there are now greater flexibilities around right-to-buy receipts—not necessarily 100%, but they are greater. We have also removed the cap on borrowing for the housing revenue account, and that is why we are seeing councils building far more homes than they previously did.
Levelling-up Report
Baroness Thornhill Excerpts(2 years, 6 months ago)
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Lord Greenhalgh (Con)
Local government has a critical part to play in levelling up the country. I would point out the commitment through both the UK shared prosperity fund and the levelling-up funds to turbocharge the 12 missions outlined in the Bill.
Baroness Thornhill (LD)
I am particularly interested in the aspirations around housing that are implicit throughout the levelling-up agenda. Given the northern consortium’s recent report on the fact that it is actually the quality of existing homes in the north that is a key factor in poverty and other indicators, what plans do the Government have, besides building brand new houses, to look after the existing stock that is in poor condition?
Lord Greenhalgh (Con)
It is important that we think about our existing stock. As Building Safety Minister, I think that the quality of housing is incredibly important. One of the key headline metrics is the proportion of non-decent rented homes and ensuring that we continue to drive this down and increase the number of homes that have achieved the decent homes standard, which will be adopted within the private rented sector as well.
Leaseholders: Costs
Baroness Thornhill Excerpts(3 years ago)
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Lord Greenhalgh (Con)
We will move from principle into practice in a matter of months, but this problem has occurred over decades. Sadly, every decade, there has been a significant fire in a high-rise where there was a loss of life: Garnock Court in 1999, Lakanal House in Southwark in 2009 and the tragedy of Grenfell in 2017. Governments knew that cladding was often the cause, as it was in Garnock Court, and the regulations were actually dampened down under a previous Labour Government, who inserted the word “adequately”. It is a mess that took decades; give us months to sort it out.
Baroness Thornhill (LD)
Notwithstanding the Minister’s earlier comments, housing associations and councils too face a challenging situation. Both the LGA and the National Housing Federation have evidenced the double whammy of the financial burden to remedy the fire safety issues for the tenants and, consequently, less money to invest in their existing stock—in particular, to build new social and affordable homes. In the recent rethinking, please will the Minister agree to look specifically at the situation faced by housing associations and councils and consider widening the criteria for support for any money that is available? This is their tenants’ rent money, after all, and they too should not have to pay for 20 years of industry failure.
Lord Greenhalgh (Con)
Of course we want to protect leaseholders and ensure that social landlords can build new homes of high quality but, far too often, they as developers were in charge of building homes of poor quality, and they need to fix those homes. The figures are that, as of 31 October, £97.3 million has been approved from the building safety fund, and there is the £200 million to remove cladding of aluminium composite material. We are doing what we can to protect leaseholders, but we recognise the challenges faced by registered providers.
Levelling Up White Paper
Baroness Thornhill Excerpts(3 years ago)
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Lord Greenhalgh (Con)
I agree entirely with my noble friend. We do not want anyone to have to leave somewhere they love in order to have a truly fulfilling career. That is why we are investing £3.8 billion in skills by 2024-25 and have just set up our new adult numeracy programme, Multiply, to get hundreds of thousands more adults with functional numeracy skills across the United Kingdom.
Baroness Thornhill (LD)
Minister, successive Governments have grappled with this one under various names and the consensus is that they have largely failed. Do the Government recognise that the fragmented system of funding and bidding is part of this failure? Recently, the LGA found evidence that £23 billion of public funds aimed at regeneration were fragmented across 70 different funding streams and managed by 22 different departments or agencies. Are there any signs that the Government will change this scattergun approach?
Lord Greenhalgh (Con)
My Lords, just because previous Governments have failed does not mean that this Government will not succeed. However, I take on board the importance of ensuring that there is appropriate streamlining and that we do not have a scattergun approach to funding. The point is well made.
Council Tax: Second Homes
Baroness Thornhill Excerpts(3 years ago)
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Baroness Thornhill
To ask Her Majesty’s Government what plans they have to introduce legislation prohibiting second homes advertised as holiday rentals from avoiding council tax by registering for business rates and thereby qualifying for small business rate relief.
The Minister of State, Home Office and Department for Levelling Up, Housing & Communities (Lord Greenhalgh) (Con)
I recognise the noble Baroness’s interest in this issue. The Government have confirmed that we will legislate to require that holiday rentals meet an actual letting threshold before being assessed for business rates. This will ensure that only genuine holiday businesses can access the rate relief for small businesses. We will set out further details shortly in the Government’s consultation response.
Baroness Thornhill (LD)
Minister, this at last is a Cornish/Cumbrian Lib Dem campaign success—I can see the leaflets now. Can he explain why it has taken so long and say when we will get a timetable and conclusions of the 2018 consultation that was never actually published? Does he agree that salt has been rubbed into the wound, given that unscrupulous second-home owners have also received £104 million from Cornwall’s Covid aid pot, thus reducing the amount available to legitimate businesses?
Lord Greenhalgh (Con)
My Lords, I should have registered my residential and commercial property interests, although I have not tried to use this loophole. The Government announced in March that we will legislate, and we have been working very closely with the Treasury and the Valuation Office Agency to finalise the details of how and when this will be implemented. This of course takes time and we will publish our consultation response shortly.
Land Use Framework
Baroness Thornhill Excerpts(3 years ago)
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Baroness Thornhill (LD)
I thank the noble Baroness for bringing forward this debate. If Thursday afternoon debates were a novel, they would certainly not be a bodice-ripper or an edge-of-the-seat thriller, but more a literary heavyweight: challenging, sometimes difficult to get to grips with, but always an opportunity to learn and to explore difficult issues. The noble Baroness’s subject matter today is very much in the latter category, and I have to say that I admire her staying power. I also look forward to the maiden speech of the noble Lord, Lord Harlech.
As a former elected mayor and a vice-president of the LGA, I will be looking at this issue through the lens of local government and from the planning perspective, while being confident that other noble Lords will be sharing their considerable expertise on the environmental and broader issues.
What has surprised me in my reading for this debate is that there has been a fairly steady and consistent appeal for a land use framework over many years and, indeed, several reports with recommendations to adopt one or something similar. Indeed, such a tool exists in all the devolved Governments. Can the Minister say whether there has yet been any capture of the benefits or otherwise of the Welsh, Scottish and Northern Irish experiences, each of which appear to have involved slightly different approaches? I believe we should be looking to learn from them.
It was, therefore, surprising to me that the Government are resisting this and, indeed, going further and saying it is not really needed as other policies and plans, in effect, do the job of such a strategy. Hearing the responses of the noble Lords, Lord Gardiner of Kimble and Lord Goldsmith, during consideration of the Environment Bill confirmed my belief. However, to judge by the evidence presented by these various reports and inquiries, it appears it is often not happening at all, and where it is it could be better.
In its recent study, Planning for a Better Future, the Royal Town Planning Institute points out that there are already many spatial instruments and plans in places, but—the “but” is important—they treat the environment in siloes, not connecting issues such as water availability and quality, social quality, flood mitigation, biodiversity and habitats. They are often administered and financed separately, with problems of single-issue streams of finance, and managed on short decision timescales, with notable gaps. They seem distant from and unaccountable to local people. Our current situation calls for something far more radical and potentially game-changing. This proposal will seek to address some fundamental key dilemmas and challenges of land use: will it be possible to grow enough food, restore biodiversity in nature, decarbonise the economy and adapt to climate change, while building all the homes, transport and infrastructure that the Government have promised over the next decade?
While such a framework would, by necessity, be very high level, it is also important to address the concerns of ordinary citizens. When I speak to residents, usually when they are bitterly complaining about development, I ask them, “What percentage of land do you believe is built on?” They always get it massively wrong and are shocked when you say, “Less than 20%, and half of that is parks and gardens”. In tight urban areas, it certainly feels that high city densities, while highly sustainable, are built to protect someone else’s view of a field that once grew food. So a fundamental question to us all is: how is it decided whose quality of life is more important? Is it the person in the tower block or the village dweller? Another question is: is that really the best use of the land? Could it not be used for something better? How could that be determined?
It is now generally accepted that we could never again build to the densities of, say, Milton Keynes or the garden cities, yet there has been no attempt at all to take the public with us on this challenging journey. At his party conference, our Prime Minister recently declared that there should be no need for houses to be built on green-belt land, to cheers from the party faithful living in the leafy shires. But what are the implications for those living in urban settings? Must the ever-growing numbers of tower blocks increase, not only in number but in storeys, to accommodate government targets for housing need? Where is the land-use discussion here? They are popping up now in suburbia and Metroland, not just in the city smoke. Do we need new settlements? Where, what type and when? Perhaps a land-use framework could usefully flush out these difficult issues and contradictions and provide a context for these conversations.
We have a Government determined to build 300,000 homes a year to meet an obvious housing crisis. Surely that aspiration needs some big thinking about land use. The Government’s own figures show that enough brownfield sites are available to build 1 million homes. That sounds like a lot, but it is really only three years’ supply. Even local authorities have to provide a five-year land supply. The Government have their disingenuous housing delivery test—it is disingenuous because it seeks to punish local government for the lack of delivery of homes, over which it has no power, and not over the number of planning applications granted, over which it has power. Perhaps the Government should revisit their own Letwin review.
Add to the pot the fact that we have a public who sometimes seem to have gone from nimbies to BANANAs —build absolutely nothing anywhere near anybody—as a glance at any local news media will prove. Yet, when knocking on doors and talking to people, once they have got their, “We don’t need any more flats, and no one can afford these homes anyway” off their chest, their heartfelt concerns are usually around the quality of the environment: “Too many cars. The traffic is a nightmare. Where will I be able to park?”, or “I can’t get my child into the local school” and, “My GP waiting times are far too long because they have so many patients on their books”. These are the soft infrastructure issues yet they are very important to the public, for obvious reasons.
From my local government perspective, the Motion calls for land-use planning to be integrated with other land-use activities. At the moment, we have no regional or sub-regional land-use planning, so there is nothing to integrate anything with. That might seem like a statement of the obvious, but the scaffolding that might support such a proposal has been lost to us over the last decade or longer, to the detriment of wider place shaping and planning across a much larger economic region. In short, we have become too parochial, which can work against changes for the greater good. There are too few opportunities for too few councillors to engage with these bigger and broader issues in their area.
It seems that many of the problems associated with planning have arisen because strategies have not been based on a wide enough area. This is most apparent in two-tier areas, where each council has its own local plan, yet the reality of issues and problems to be addressed can cover three or four, or even a whole county or wider economic region.
I still have the scars from trying, while I was mayor of Watford, to work across borders with several authorities around a wide range of issues, where the provision of new infrastructure needed to be built in one area to serve, as they saw it, the needs of another—I would say of the wider area. The recent emphasis on making efficient use of brownfield sites has pushed the level of housing growth in Watford upwards to the sky, so a new secondary school is needed, which cannot be met within the town’s narrow boundaries. We already have a primary school where there is no play space for the children, except on the roof. But when it is proposed in the neighbouring districts, there is opposition on the grounds that, “It’s Watford’s problem. It’s their children.”
There are ways to resolve this, and sometimes it works better than I have portrayed, which is why I am particularly interested in the outcome of the powers and freedoms given to regional mayors and city regions in this regard. I wonder whether there is any possibility of expansion and further development.
“What about the duty to co-operate with each other?”, you might ask. It is well documented that the duty to co-operate does not operate as effectively as it needs to in practice—or indeed at all. However, there is a pressing need for it to be replaced with a new mechanism to deliver joined-up thinking and action for climate change, transport, infrastructure, housing provision and nature recovery. Does the Minister yet have any idea whether that duty will be changed, strengthened or weakened in the new reforms? Finally, why not have a national spatial framework?
Building Safety Defects: Costs
Baroness Thornhill Excerpts(3 years, 1 month ago)
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Lord Greenhalgh (Con)
My noble friend is right that we need more detail. Details of the residential property developer tax will be announced at the Autumn Budget on 27 October, so we will have to wait till then. However, I want to make it clear that the figure of £2 billion over 10 years is an absolute minimum and I hope that we will go far further than that when the rates are finalised.
Baroness Thornhill (LD)
As has already been stated, social housing providers are having to pick up the bill for all of their properties. These sums are having a significant impact on their budgets and are detrimental to their ability to provide more, and better-quality, social housing going forward. Are the Government monitoring the impact of this on providers’ budgets, in particular the opportunity cost that is lost to the sector, and looking at how this will affect their ability to do the jobs that they want to do to improve their social, affordable and supported housing properties in the future?
Lord Greenhalgh (Con)
My Lords, we are working very closely with the sector. I point out that there was a £400,000 fund specifically for providers in the social sector to remove aluminium composite material, the most serious form of unsafe cladding. In addition, where social landlords are thinking of passing costs on to leaseholders, there is an opportunity for them to apply to the building safety fund, which many of them have indeed done.
Supported Housing: Funding
Baroness Thornhill Excerpts(3 years, 2 months ago)
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Lord Greenhalgh (Con)
My Lords, as I set out in my original Answer, the focus has been away from ring-fencing of funding, but of the £12 billion that has been provided during this pandemic for local councils to deal with the pressures, £6 billion was non-ring-fenced, and a lot of that money can be prioritised for the issues around housing-related support services to ensure that the quality of the services can be continued.
Baroness Thornhill (LD)
My Lords, there is genuine concern among councils that there is abuse of the exempt accommodation status, which grants housing run by a supported housing provider additional housing benefit. Does the Minister agree that, to do right by the majority of good providers, more must be done to increase the transparency of such accommodation costs and to give councils greater flexibilities and powers to act against those who are failing their most vulnerable tenants? Does he have any feedback from the supported housing pilots that were working on this important issue?
Lord Greenhalgh (Con)
The noble Baroness is right: we are concerned about quality issues, and that is why we carried out some pilots in Birmingham, Blackburn, Darwen, Hull, Bristol and Blackpool. We do not have the results from those pilots, but that is why we invested £5.4 million—to ensure that there is no drop in quality.
Mortgages: EWS1 Form
Baroness Thornhill Excerpts(3 years, 4 months ago)
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Lord Greenhalgh (Con)
My Lords, that is quite right: we have committed to a £700,000 funding scheme to train up to 2,000 surveyors. That has already begun, and I will write to the noble Lord with the precise number that have been trained up to this point. We have also announced a bespoke insurance model to ensure that professionals have access to professional indemnity insurance cover. Details will be published in due course.
Baroness Thornhill (LD) [V]
At the heart of this is a very simple question, which I do not believe the Minster has actually answered: what action do the Government intend to take in the event that mortgage lenders continue to insist on this form being obtained for buildings that do not actually need one, according to the RICS criteria, with sellers finding themselves in a classic Catch-22 situation?
Housing: New Developments
Baroness Thornhill Excerpts(3 years, 5 months ago)
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Baroness Thornhill
To ask Her Majesty’s Government how their proposed changes to the planning process will ensure that the public is supportive of new housing developments.
Baroness Thornhill (LD) [V]
My Lords, I beg leave to ask the Question standing in my name on the Order Paper and declare my interest as a vice-president of the Local Government Association.
The Minister of State, Home Office and Ministry of Housing, Communities and Local Government (Lord Greenhalgh) (Con)
We know that the planning system has a poor record of community engagement and can often be adversarial. That is why our reforms have effective engagement at their heart. By ensuring that communities are meaningfully involved in preparing plans and local design codes, they can have real influence over the location and design of development. This will be supported by digital transformation, with new tools to make planning more transparent, accessible and engaging.
Baroness Thornhill (LD) [V]
I thank the Minister for what he said, but could he explain how involving the public only every five years when a plan is drawn up, alongside so many sites under the new reforms having automatic permission in principle, will restore trust and confidence in the system? As a former council leader, how does he think this will work in reality years later, when work actually begins?
Lord Greenhalgh (Con)
My Lords, it is not just involvement in the local plan that happens every five years but producing the design codes. But, importantly, communities will have a say in detailed aspects of planning applications.