Baroness Williams of Trafford
Main Page: Baroness Williams of Trafford (Conservative - Life peer)Housing and Planning Bill
Baroness Williams of Trafford Excerpts
Baroness Williams of Trafford
Moved by
That this House do not insist on its Amendment 1 and do agree with the Commons in their Amendments 1A, 1B and 1C in lieu.
“( ) is subject to a restriction requiring repayment of the 20% discount, reduced by 1/20th for each year of occupation by the purchaser, for a period of 20 years,”
The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Williams of Trafford) (Con)
My Lords, I shall speak to Amendments 1A, 1B and 1C, which provide a power to implement a tapered approach to the resale of a starter home, in lieu of Amendment 1, the approach which was accepted in this House. The amendments provide that the Secretary of State can make regulations on the length of the taper period and on the details of how the taper will operate. These amendments were agreed by the other place without a vote, demonstrating a clear mandate. The Government have listened to the concerns of this House and have responded. We want to ensure that starter homes are sold to those who are genuinely committed to living in an area, and not to those who simply want to secure financial uplift by selling on quickly—something that has been much debated in your Lordships’ House—but we also want to support mobility, so a balance needs to be struck. I therefore ask that the House do not insist on its Amendment 1.
The Government are committed to introducing a tapered approach so that the longer the individual lives in the property, the more value they gain. Our amendment sets out two possible models for the operation of a taper. First, when a starter home is sold within a restricted period, the owner must pay a proportion of the discount to a specified body. This is the broad approach that was proposed by this House at Report and, with this amendment, could now be implemented. We are keen to continue our dialogue with developers, lenders and local authorities to reach agreement on the best mechanism for achieving our aims, and I am very happy to discuss how the model might work with interested Peers over the next few weeks. The detail will be set out in affirmative regulations for both Houses to consider. I am confident that this is the best way for us to ensure that we deliver a workable taper, supported by those working with it.
Turning now to Amendment 10A, which would reinstate the nationally set starter homes requirement on housing sites but allow councils to have local discretion on rural exception sites, I made a commitment, following discussions during the passage of the Bill on Report, to recognise that rural exception sites may require additional discretion on starter homes. I have listened to concerns that a compulsory requirement could disrupt the supply of rural exception sites coming forward. This amendment has been accepted by the other place with a clear majority of 115 and an even higher majority, of 121, of votes cast by Members for constituencies in England.
I recognise the strength of feeling behind the amendments to have a locally set requirement, which this House accepted. However, they would totally undermine our manifesto commitment to build 200,000 starter homes by 2020. We made this commitment to address the real and urgent problem of declining home ownership among the under-40s. The electorate has every right to expect the Government to deliver, and the other place has been clear in its support to deliver our starter homes commitment and deliver the number we promised quickly. Many honourable Members commented on the popularity of starter homes within their constituencies and their importance for sustainable communities.
It is a ground-breaking move to require that starter homes will be built on all reasonably sized and viable sites, but it is necessary and justified to ensure that these homes are delivered, and delivered soon. We cannot wait for each of the 336 planning authorities to undertake local needs and viability assessments before action on starter homes is taken; given that 30% of councils have not adopted a post-2004 plan, the risks to delivery are simply too high. The amendments would hit hardest the very people whom we are trying to help, and first-time buyers would yet again see their chance of home ownership undermined. We are consulting so that we get the percentage requirement right, including on exemptions from the requirement for certain types of development, and Parliament will be able to scrutinise the resulting affirmative regulations. The amendment in lieu is needed to help a generation into home ownership. I therefore ask that the House considers the manifesto commitment for starter homes and do not insist on its Amendments 9 and 10 but accept Amendment 10A in lieu.
Lord Kennedy of Southwark (Lab)
My Lords, as this is my first contribution today to consideration of the Commons reasons and amendments to the Housing and Planning Bill, I draw noble Lords’ attention to my declaration of interests and further declare that I am an elected councillor in the London Borough of Lewisham. Generally, it is disappointing that we are back here today following the rejection by the other place yesterday of a number of amendments proposed by your Lordships’ House. There has been some movement in the Government’s position on the taper but they have not gone as far as we would have liked, and I think the noble Lord, Lord Best, got this one right. Nevertheless, we are pleased that there has been some movement. Recycling a proportion of the discount through a taper if the property is sold is a much better way of delivering this policy and I am pleased that the Government have accepted that.
On Motions B and B1, proposed by the noble Baroness, Lady Williams of Trafford, and the noble Lord, Lord Kerslake, respectively, the latter amendment gives local authorities the ability to demonstrate the case for delivering other forms of low-cost home ownership to the Secretary of State along with their general duty to deliver starter homes. That is all the amendment does: it gives the local authority the ability to demonstrate the case. If that is not done to the Secretary of State’s satisfaction, approval will not be given. I cannot see why the Government want to resist that. Again, it is disappointing that the other place has not accepted Amendment 109 proposed by my noble friend Lady Royall of Blaisdon, but there has been some movement, which is to be welcomed. Like my noble friend, I will be looking carefully at what emerges from future discussions, and we will press the Government further in that regard.
Baroness Williams of Trafford
My Lords, I thank all noble Lords who have spoken to this group of amendments. I welcome the debate on the starter homes amendments and rural issues; I hope it has been productive. I am trying telepathically to understand what the Minister in the other place meant last night by “proportionate” discount. As I understand it, as the discount is a percentage rather than a cash sum, it is proportionate to the total cost rather than fixed, which is probably fairer. That is my understanding of what he meant.
On Amendment 10B, proposed by the noble Lord, Lord Kerslake, I understand why it seems attractive to allow local authorities to meet their starter homes requirement with other products. However, in reality, the requirement for starter homes would become something entirely different. This change to the requirement would again undermine the Government’s ability to meet our manifesto commitment to 200,000 starter homes. We have been very clear on why we want a requirement for starter homes. This is a new product, designed to address a specific gap in the market for young, first-time buyers, as we have discussed on many occasions during the passage of the Bill. Starter homes will give young people the chance of full home ownership, allowing them to move onwards and upwards over time. We have a clear manifesto mandate to deliver this product, and that is why we are legislating for starter homes alone.
The starter home requirement will be straightforward and developers will understand it from the outset. It does not remove councils’ ability to deliver other affordable housing and home ownership products alongside starter homes, and we fully expect them to do so. Nor does it remove their local plan policy. The Government believe that shared ownership and other affordable home ownership products have an important role to play as part of a diverse and thriving housing market. They will help those who aspire to home ownership but cannot afford outright discounted purchase.
The spending review has committed £8 billion to deliver a further 400,000 new affordable housing starts. We have published a prospectus that invites housing associations and other providers such as developers to bid for £4.1 billion to deliver 135,000 shared ownership homes and £200 million to deliver 10,000 rent-to-buy homes. However, our legislation focuses on starter homes to ensure that it has the necessary attention to secure delivery.
I have listened carefully to the debate, and I hope that the amendments I have set out mean that there is no need to divide your Lordships’ House. With these reassurances, I ask that the amendment to the Motion be withdrawn.
Baroness Williams of Trafford
Moved by
That this House do not insist on its Amendments 9 and 10 and do agree with the Commons in their Amendment 10A.
“( ) An English planning authority may only grant planning permission for a residential development having had regard to the provision of starter homes based on its own assessment of local housing need and viability.”
Baroness Williams of Trafford
That this House do not insist on its Amendment 37, to which the Commons have disagreed for their Reason 37A.
Commons Reason
37A Because it would alter the financial arrangements made by the Commons, and the Commons do not offer any further Reason, trusting that this Reason may be deemed sufficient.
Baroness Williams of Trafford
My Lords, we now turn to vacant higher-value local authority housing. The manifesto was clear:
“We will fund the replacement of properties sold under the extended Right to Buy by requiring local authorities to manage their housing assets more efficiently, with the most expensive properties sold off and replaced as they fall vacant.”
That is what the Bill will deliver. It will increase housing supply through the delivery of affordable homes and will extend home ownership by funding the discounts for the ground-breaking voluntary right-to-buy agreement.
Following your Lordships’ scrutiny, there have been improvements to the way that the policy will be implemented. For example, building one new home for each higher-value dwelling we expect to be sold is now in the Bill, as is making the regulations in respect of the definition of higher value subject to affirmative resolution and excluding housing in national parks and AONBs when calculating the payments. However, the other place has voted emphatically, by 288 to 172, to disagree with other changes made in your Lordships’ House. It cited financial privilege, recognising that it is a manifesto commitment. I understand that point and I have to say that I agree.
Amendments 37 and 184, originally proposed by the noble Lords, Lord Lisvane, Lord Kerslake and Lord Beecham, would have put the determination of payments into regulations. This would have led to considerable delay in receiving payments from local authorities in respect of their higher-value vacant housing, and would have delayed the delivery of our manifesto commitments.
I agree with the other place that a determination is the most appropriate way of setting out the information about the payment that a local authority will be expected to make. The nature and amount of information to be contained in the determination means that it is appropriate to use a determination rather than a statutory instrument.
I am pleased that the other place has recognised the case made by noble Lords, and has proposed in Amendment 184A that the definition of higher value should be subject to the affirmative procedure. Recognising the will of the other place, I urge noble Lords to accept Commons reasons at 37A, and to agree Amendment 184A.
The other place has also considered Amendment 47, proposed by the noble Lord, Lord Kerslake, and has again cited financial privilege. This amendment would have been extremely restrictive, taking discretion from the Government to ensure that new housing will be delivered through agreement.
The noble Lord, Lord Kerslake, has tabled Amendments 47B and 47C, which are very similar, and therefore I will save the rest of my remarks for my response to our debate. However, as we discussed at Third Reading, Amendment 47 would not be suitable and therefore, recognising the will of the other place, I urge noble Lords not to insist on these amendments. I beg to move.
Lord Lisvane (CB)
My Lords, your Lordships’ Amendments 37 and 184 taken together would make the Secretary of State’s determination in respect of vacant high-value housing be introduced by regulations that are subject to the affirmative procedure for matters of principle and the negative procedure for matters relating to a single authority. I do not accept the Minister’s argument that a determination has to be, as it were, a single operation. I believe that it is technically possible to separate the issues and apply a different procedure to each one. Without these amendments, Ministers would have absolute freedom to make decisions in this area subject only to judicial review, as my noble and learned friend Lord Hope of Craighead pointed out on Report.
This is an issue of the level of parliamentary control. Your Lordships wish to see that level raised. It appears that the House of Commons did not. However, I welcome Amendment 184A, which would make the definition of higher-value housing subject to affirmative regulations although, as I said on Report, this is slightly less than half the loaf. I was for a while slightly puzzled by the fact that Amendment 37, relating to the level of parliamentary control, should be designated as one attracting financial privilege. I thought, on reflection, that the judgment must have been made that a delay in achieving the end would mean a delay in receipts and so I accept that judgment. Not least because we have been given the privilege reason, I do not think that on Amendments 37 and 184A there is a case for asking the Commons to think again twice.
Baroness Williams of Trafford
My Lords, I begin by thanking my noble friend Lord Lansley for explaining the process of financial privilege; he has the privilege of coming from the other place and explained to us that no other reason needs to be given other than financial privilege, although there may be others.
Let me be clear: this Government will get our social housing working as efficiently and as effectively as it can, not only so that more people own their own home but to increase the affordable housing supply. A guarantee of one affordable home to replace one sold, and two affordable homes in London, is what our higher-value vacant housing provisions will deliver.
Amendments 47B and 47C have been proposed by the noble Lord, Lord Kerslake, in lieu of Amendment 47, which the other place emphatically voted against, as my noble friend Lord Lansley pointed out. These amendments mean that, when a local authority can demonstrate a need for social housing, it will be able to retain the receipts that it needs to fully fund the provision of that housing. They prevent government from considering whether local authorities can deliver the housing required, and they could significantly reduce the funding available for the voluntary right to buy, preventing the Government from fulfilling their manifesto commitment—a manifesto that they fully intend to implement, as my noble friend Lord Porter says. By focusing solely on social housing, they prevent the agreement process from recognising that flexibility will be needed to respond to diverse housing needs in the country. They also fail to recognise that other different types of housing may better meet local housing need. This feels restrictive and like a top-down approach. Instead, I believe that a localist approach to the agreement process would be better for everyone. Local authorities with particular housing needs in their area should be given the opportunity to reach bespoke agreements about the delivery of different types of new homes in their areas. If local authorities can demonstrate, for example, a clear need for new affordable homes, we should aim to make an agreement with them, subject, of course, to value-for-money considerations and evidence of a strong track record on housing delivery.
The noble Lord, Lord Kerslake, talked about the Secretary of State having all the power in the new agreement proposal. The principle that local authorities have the right to come to an agreement with the Secretary of State is not a new concept. The key word here is agreement, with discussion between local areas and the Secretary of State with a national mandate to deliver the voluntary right to buy and new affordable homes.
The noble Lord, Lord Beecham, asked how much money we expect to raise from the policy. Receipts will depend on a number of factors and decisions. The Bill sets out a framework with further detail to be provided through secondary legislation. It has flexibility through the formula approach which enables us to continue working the detail through with the sector. Once we understand what the data tell us, we will be able to consider what the detail will be and subsequently how this will fund the two aims of the policy: right-to-buy discounts for housing association tenants and funding the building of new homes.
Lord Beecham
Do I understand the Minister to be saying that the Government do not have an estimate of the amount that is to be raised? What do they say about the Shelter estimate of £4.6 billion?
Baroness Williams of Trafford
I will come to that question in a few seconds.
The noble Lord, Lord Shipley, talked about this resulting in fewer socially rented homes. We need more homes, full stop, across all tenures and across the country. At the heart of the policy is the building of more homes, funded in part by receipts from the sale of vacant high-value council housing.
Before I move on to the question asked by the noble Lords, Lord Kerslake and Lord Beecham, about the Shelter report, the noble Lord, Lord Kerslake, talked about the PAC saying that there are key questions that need answering. It is regrettable that the PAC has chosen to publish its latest report part-way through the parliamentary process. We have always said that further detail regarding the sale of higher-value council housing will be developed and shared. The regulations defining “higher value” will be subject to the affirmative procedure. Parliament will have the opportunity to scrutinise this in more detail.
The noble Lords, Lord Kerslake and Lord Beecham, referred to the Shelter report that HVAs would raise £4.5 billion each year. We are in that process. I know that noble Lords will be sighing with exasperation, but we are in the process of analysing more than 16 million pieces of information about the housing stock of local authorities in England. We have collected these data as we want to ensure that the policy is informed by current information, and it would not be prudent for the Government to pre-empt what the data will tell us.
The noble Lord, Lord Kerslake, talked about the increased pressure on council housing and the increase in homelessness. We are committed to supporting the most vulnerable in society to have a decent place to live. Since 2010, we have invested more than half a billion pounds to help local authorities to prevent more than 935,000 households becoming homeless. Time spent in temporary accommodation ensures that no family is without a roof over their heads. Households leaving temporary accommodation now spend on average less time in it than they did in 2010. We need new homes to be built in this country and Amendments 47B and 47C would limit the ability of central and local government to ensure that the right mix of housing is delivered as quickly and efficiently as possible. I therefore urge noble Lords to respect the will of the other House, and I urge the noble Lord, Lord Kerslake, not to press his amendments.
Motion C agreed.
Motion D
Baroness Williams of Trafford
That this House do not insist on its Amendment 47, to which the Commons have disagreed for their Reason 47A.
“( ) If a local housing authority so wishes, and that authority can demonstrate, whether by reference to its local housing plan or otherwise, that there is a need in its area for social housing of the kind that it proposes to build, the Secretary of State shall enter into an agreement with that authority whereby it shall retain such part of the payment as may be required to fund the provision of a new dwelling to be let as social housing on terms (as to tenure, rent or otherwise) which are similar to those on which the old dwelling was let.”
Baroness Williams of Trafford
That this House do not insist on its Amendment 54, to which the Commons have disagreed for their Reason 54A.
Baroness Williams of Trafford
My Lords, we return again to the issue of the Government’s policy for high-income social tenants. I realise that this is an area where there are strong feelings on both sides of the House and I hope today to be able to provide some further reassurances so that the Government can move forward with their commitment to establish a fairer position on rents between the social and the private rented sector.
As noble Lords will know by now, we committed in the 2015 Budget to introduce a policy whereby social tenants who are able to pay more for their rent should be expected to do so. Social housing should be for those who are the most in need. This position was reinforced during the debates yesterday, and the other place declared its position, loud and clear, with a considerable margin of victory in resisting amendments put forward by this House. I was struck by some of the arguments my colleagues put forward on this aspect during the debate in the Commons yesterday. It is simply not right that social tenants who are no longer in housing need should take up valuable social housing when there are families in much greater need on waiting lists. If these higher-earning tenants wish to remain in their property, which is their choice, then it is right that they contribute more.
I remind the House about the significant opportunities that the Government are offering tenants on higher-than-average incomes. If they do not wish to pay a fairer rent, many tenants will be able to explore the opportunity to buy their home under the extended right-to-buy scheme, or they may be able to take up shared ownership offers.
We have brought forward a package of amendments which significantly improves the operation of the policy by protecting work incentives and vulnerable tenants. I am very grateful to your Lordships’ House for recognising this and accepting the government amendment to enable the creation of exceptions for high-income social tenants. This power will be used to make an exception for any tenant in receipt of housing benefit or universal credit, which is clearly its most sensible use.
Lords Amendment 54, which would make the policy voluntary for local authorities, simply cannot be supported. It was rejected by the other place yesterday. Local authorities have been able to put in place a voluntary policy for some time, but have not done so, as far as we are aware. I recognise the point made in the Commons yesterday about the interest from Westminster Council and want to take a moment to respond to that. Its concern is that the cost of operating the policy may exceed the money collected. We have accepted that local authorities should be reimbursed a reasonable amount of the administrative costs, and we do not expect those to exceed the money received. However, we recognise that rents vary and are working with local authorities to look carefully at the approach in areas where market rents may be close to social rents. We will bring forward further detail in the affirmative regulations.
Remaining on the issue of a voluntary approach, I have concerns about what this would mean for tenants. We want a consistent approach for all, and it does not seem right or fair to have certain tenants subject to the policy while others are not.
Lords Amendments 55 and 55B concern the operation of the proposed taper. The Government have been clear that our preferred approach is to have a taper set at 20%, which balances fairness with work incentives. We cannot accept a rate of 10% as proposed by Amendment 55, as it is simply too low. The other place has overwhelmingly rejected this and I support its reasons for doing so.
Amendment 55B would limit this rate to the first £10,000 above the income threshold. While I recognise the intention here, there are wider considerations about the impact on local authorities of operating a two-stage taper, which I am concerned will only add to the burden and complexity for them. Instead, I propose a standard taper rate of 15%, which would apply to all incomes above the threshold. This meets noble Lords half way on this issue and I hope that we can agree to it today without the need for a vote. It will mean that tenants will contribute 15p in rent for every pound they earn above the income thresholds. It is a fair rate that protects work incentives while ensuring that higher-earning tenants make a fairer contribution.
Lords Amendment 57 sought to raise the income thresholds to £40,000 outside London and to £50,000 in London. Again, this was rejected by the other place. The Government maintain that the thresholds of £31,000 and £40,000 are the right starting point for social tenants to contribute a little more in rent. We are not saying that these household incomes make people wealthy, but it is right that people on these incomes start to contribute a little more if they wish to remain in much-in-demand social housing. The operation of the taper, set at 15% as I have offered, would mean that a household earning above these thresholds would contribute a few pounds extra in rent each week. It is worth reinforcing that point again, as we must dispel the myth that all social tenants would see their rents raised straight to market rate.
Lord McKenzie of Luton (Lab)
My Lords, like other noble Lords, I welcome the movement that has been made in this policy area, although, also like other noble Lords, I believe that it has all the hallmarks of an administrative nightmare. I ask the Minister to clarify one thing. In introducing these items she referred to the fact that people on housing benefit would be outwith the policy. I ask again a point I raised on Third Reading. I can see that somebody currently on housing benefit before the application of the policy is easy to spot and would not be assessed, but what is the position with somebody who is brought into the housing benefit regime because of the higher rents that could flow from this policy? Will they be out as well? That would be incredibly convoluted to deal with.
Lord Beecham
The noble Baroness must be so pleased to be getting towards the end of this. I do not blame her at all for trying to push matters forward.
We are hearing a good deal today about financial privilege as the Government are deploying a tactic of pleading it as a reason to reject amendments passed in this House. The words must sound ironic to couples on the national minimum wage, who are deemed to be “financially privileged” if their household income exceeds £31,000 outside London or £40,000 in it, and therefore face, as we have heard, increases in their non-subsidised rent. They will no doubt contrast their position with the financial privilege extended to starter home buyers, who stand to benefit from discounts of more than £80,000 in London on the more expensive houses and tax-free capital gains when they eventually sell.
Nevertheless, I welcome the Government’s modest concession on the amendment in the name of the noble Lord, Lord Best, again establishing that the best is the enemy of the ludicrous when it comes to legislation, and their acceptance at the last gasp, it must be said, of my amendment seeking to ensure updating of the thresholds on a regular basis—although I wish that they had listened to the noble Lord, Lord Lansley, who had a better idea than mine, which was to tie the formula to RPI. It may be, given that they have a discretion, that they will take that stance. If they did, I would applaud them even more. In the circumstances, I am very happy to support the amendments that the Minister indicated and I will not press Motion H1.
Lord Beecham
Sorry, I have received a prompt from my noble friend Lady Hollis, to ask what the estimate is—I am sorry, I have even forgotten what the prompt was. Perhaps my noble friend can say.
Baroness Williams of Trafford
I hope the noble Baroness will indulge me, because the Government have come to this policy position within the past 12 to 24 hours. I do not know whether she is worried that too little may go to the Exchequer—I doubt that—but I expect that those figures will be worked out in due course and I am sure they will be shared with your Lordships’ House.
The noble Lord, Lord McKenzie, talked about people who have not been hit by the policy and suddenly might be hit, in terms of housing benefit. In the scenario to which he referred, the tenant would be taken out of this policy. Whenever housing benefit comes in, the tenant is taken out, as the result of the policy would otherwise be perverse.
I hope I have addressed the few points that were made. I thank noble Lords who have worked with me, with the Secretary of State and with the Housing Minister in the other place, and I ask that the amendments not be pressed.
Baroness Williams of Trafford
That this House do not insist on its Amendment 55, to which the Commons have disagreed for their Reason 55A.
“( ) The regulations must specify that the rent shall not equate to more than 10 pence for each pound of a tenant’s income above the minimum income threshold.”—
Baroness Williams of Trafford
That this House do not insist on its Amendment 57, to which the Commons have disagreed for their Reason 57A.
Baroness Williams of Trafford
That this House do not insist on its Amendment 58, to which the Commons have disagreed for their Reason 58A.
“( ) make provision for the level of household income, for the purposes of defining “high income”, to be increased every three years to reflect any increase in the consumer price index.”
Baroness Williams of Trafford
That this House do agree with the Commons in their Amendment 111A.
“(1) The Secretary of State may by regulations provide for temporary 3 arrangements in particular areas to test the practicality and desirability of competition in the processing (but not determining) of applications to do with planning.
(1A) The regulations may make provision—
(a) for an application for planning permission that falls to be determined by a specified local planning authority in England to be processed, if the applicant so chooses, not by that authority but by a designated person;
(b) for any connected application also to be processed by a designated person and not by that authority.
(2) The regulations must specify a period after which any such provision ceases to apply.
That period (whether as originally specified or as subsequently extended) must end no later than five years after the first regulations under this section come into force.”
Baroness Williams of Trafford
My Lords, Amendment 111 implemented a number of the DPRRC’s recommendations. It also took steps to ensure that our pilots would test the benefits of introducing competition to planning application processing on a level playing field, and make clear that the planning decision would always be made by the local planning authority. The other place has accepted Amendment 111 but has proposed a minor amendment, Amendment 111A, to clarify that regulations can provide only for temporary arrangements in England. I beg to move.
Lord Beecham
My Lords, tempted though I am to indulge in a forensic examination of this complex and crucial amendment, I think I will spare the House.
Baroness Williams of Trafford
That this House do agree with the Commons in their Amendment 184A.
“( ) regulations under section 67(1) that contain more than one determination or a determination that relates to more than one local housing authority,
( ) regulations under section 67(8),”