Oral Answers to Questions

Brandon Lewis Excerpts

Monday 2nd February 2015 Commons Chamber

[Karl Turner (Kingston upon Hull East) (Lab)]

19. What progress his Department has made in promoting longer-term tenancies in the private rented sector.

[The Minister of State, Department for Communities and Local Government (Brandon Lewis)]

We are progressing longer tenancies by promoting a model tenancy agreement with bodies representing landlords, tenants, letting agents, mortgage lenders and local authorities. Recent figures show that tenancy lengths have increased to an average of just under four years.

[Mr Reed]

A survey conducted in Croydon North showed some letting agents charging registration fees as high as £500, and hundreds more in finder’s fees and for simply handling the deposit. Of course, short tenancies make this rip-off even worse. Why are the Government not standing up for hard-pressed renters against rip-off letting agents?

[Brandon Lewis]

Actually, we are. The new provisions in the Consumer Rights Bill will require all letting agents to publish their full tariff of fees, both on their websites and prominently in their offices, regardless of whether they are a member of a protection scheme and of which redress scheme they have signed. This will protect tenants from the small minority of agents who charge unreasonable hidden fees and will raise awareness of safe agents and the right of redress.

[Mike Gapes]

Nine million people, including 1 million families with children, are in private rented accommodation, which, as thousands in my constituency know, leads to uncertainty and fear about people’s long-term future and stability. When will this Conservative Government and their Lib Dem accomplices take the issue seriously? Will they do something now, rather than engage in spurious consultations that take months and years?

[Brandon Lewis]

I am not sure exactly what the hon. Gentleman is asking us to do. As I said, we have published a model tenancy agreement to encourage longer tenancies. It is worth noting that, according to Savills, a majority of people, particularly younger people, do not want longer tenancies and that 81% of private renters who have moved in the last three years ended their last tenancy because they wished to move, predominantly for work reasons.

[Karl Turner]

Thousands of families in Hull are subjected to unfair, unsecured tenancies. Why can the Government not accept Labour’s plan for three-year secure tenancy agreements? What is wrong with it?

[Brandon Lewis]

Given that average tenancies have increased to almost four years, I think that we have already achieved what we needed to achieve and that the hon. Gentleman should be saying, “Well done!”

[Mr Mark Prisk (Hertford and Stortford) (Con)]

I draw the House’s attention to my entry in the Register of Members’ Financial Interests.

Despite what we have just heard, the evidence from abroad is that the best way to create a more professional private rented sector is actively to encourage pension funds and the long-term institutions to invest for the long term. Given that, may I strongly encourage the Minister to ensure that all our policies—taxation and otherwise—now encourage that long-term investment, not short-term capital gains?

[Brandon Lewis]

As the House will know, my hon. Friend has a wealth of experience in this matter, and he is absolutely right. We have worked hard to expand the private rented sector, and we want it to grow further and not be threatened by the risk of Labour’s rent control. That is why we have £10 billion of housing guarantee schemes and have allowed the industry to unlock borrowing at the lowest rate in its history. We also recently announced a further £3.5 billion package to promote long-term institutional investment, which holds prices well and brings better and well-managed properties into the market.

[Duncan Hames (Chippenham) (LD)]

I was delighted that the Minister supported the private Member’s Bill introduced by my hon. Friend the Member for Brent Central (Sarah Teather) on preventing retaliatory evictions. Given that the Bill can no longer proceed, will he support the amendments tabled in the House of Lords by my colleague Baroness Bakewell and others to introduce these measures into the Deregulation Bill?

[Brandon Lewis]

I thank the hon. Gentleman for his question. It is in fact a Government amendment that is being taken through the Lords. The principle of ensuring that retaliatory evictions cannot happen is one that we would all wholeheartedly support.

[Robert Neill (Bromley and Chislehurst) (Con)]

Does my hon. Friend agree that evidence from abroad also shows that the last way to get the long-term investment that the private sector needs is through the distorting effect of rent controls, which damaged the quality of the private rental sector in places such as New York when they were tried there?

[Brandon Lewis]

Absolutely. My hon. Friend makes a very good point. History—both in this country and in a number of countries overseas—has shown us that all rent controls do is put prices up for tenants and reduce supply, which is the opposite of what we want in this country. We want a good, thriving and growing rental sector.

[John Healey (Wentworth and Dearne) (Lab)]

In relation to the private rented sector and all other housing, the English housing survey

“is used extensively across government and beyond and is a public good of national importance.”

Those are not my words but those of the national statistician in reaction to the Minister’s plans to stop the survey next year and then do it only every other year subsequently. In the light of the national statistician’s concerns in urging a rethink, will the Minister confirm that he will take that advice and not scrap next year’s survey?

[Brandon Lewis]

I am sure the right hon. Gentleman will appreciate that we still have to deal with the record deficit and debt left by the last Labour Government, so we have to be sensible with public sector money, and look to see how we can do things more efficiently and more effectively. We are in consultation at the moment, and I shall make my response to the House when the consultation ends.

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

May I congratulate my hon. Friend on what the Government have achieved through the model agreement? There will be appeals, so will he say a little more about how the approved redress scheme is coping with those appeals?

[Brandon Lewis]

No issues have been reported at this time, but if my hon. Friend has any particular concerns, I would be happy to meet her and any concerned residents.

[Emma Reynolds (Wolverhampton North East) (Lab)]

The Minister keeps peddling the myth, but we are not proposing rent controls. The Government have taken no meaningful action to promote longer-term tenancies. Both the Under-Secretary of State, the hon. Member for Keighley (Kris Hopkins), and the current housing Minister told us last year that rent levels were falling, with the Under-Secretary saying that rents were falling even in London. But now the Office for National Statistics has confirmed what everybody else knew all along—that rents are rising faster than wages and rising in real terms. Will the Minister now admit that he was wrong and that millions of private renters are facing insecurity and rising rents?

[Brandon Lewis]

I am afraid to say to the hon. Lady that real-term rents have been lower than the changes in inflation, so rent costs have fallen in real terms. We need to continue to see supply come through and get that institutional investment that was mentioned a few minutes ago so that we continue to see good-quality housing available at good prices.

[Chris Skidmore (Kingswood) (Con)]

7. What steps his Department has taken to protect green-belt land from inappropriate development.

[The Minister of State, Department for Communities and Local Government (Brandon Lewis)]

The Government have safeguarded national green-belt protection in contrast to Labour’s top-down strategies of the past that wanted to concrete over it. In October last year, we published new planning guidance, which reaffirmed green-belt protection, and we have been consulting on changes to Traveller policy which, if taken forward, will further strengthen green-belt protection.

[Chris Skidmore]

Over the past five years, the Kingswood green belt has been protected. Now, hundreds of local people have signed a petition against a proposed right to grow set out in the Opposition’s Lyons review that would allow Bristol to expand at the expense of our local green belt and local communities. Does the Minister agree that we need to continue to protect the Kingswood green belt against this dangerous right-to-grow policy?

[Brandon Lewis]

My hon. Friend makes a very good point. When I visited him not too long ago, he showed me Labour plans for places to have the ability to grow outwards. The review says that some places illustrate these issues to a greater or lesser extent, and that

“not all green belt land is of high environmental or amenity value”.

I suspect my hon. Friend’s residents would disagree with that. I know he has campaigned hard on this issue. It is vital to ensure that we continue these strong green-belt protections. Ultimately, these matters must be locally decided by local people for their local area.

[Mr Clive Betts (Sheffield South East) (Lab)]

The Minister will be aware that paragraphs 17 and 111 of the national planning policy framework contain a commitment to “brownfield first”. When the Select Committee did its recent inquiry into the operation of the NPPF, it received more complaints about one issue than any other—concerns about inappropriate speculative applications, not just in the green belt but in green fields in general. Will he agree to look very carefully at the Select Committee’s recommendations to speed up the process of local plan adoption and to ensure that those local plans have a higher percentage of brownfield within them? There is real concern about this issue on both sides of the Chamber.

[Brandon Lewis]

The short answer is yes. The hon. Gentleman has made a good point: it is important to protect both green-belt and greenfield land. Some interesting cases have arisen, particularly one in the last couple of weeks, in which green-wedge land was protected by inspectors. However, it is also important for local authorities to deliver local plans, and it would be even better to see some more neighbourhood plans.

[Jacob Rees-Mogg (North East Somerset) (Con)]

Following the question from my hon. Friend and neighbour the Member for Kingswood (Chris Skidmore), may I ask whether my hon. Friend the Minister is aware that 70% of Bath and North East Somerset is green belt? It is some of the most beautiful countryside in the world, and allowing Bristol to spill over into it would essentially mean the recreation of that most unloved county of Avon. The Government’s commitment to preserving the green belt is therefore of crucial importance.

[Brandon Lewis]

My hon. Friend has lobbied me on this issue, along with colleagues in the area. There is indeed some beautiful scenery there, and the green belt is indeed important. The local authority, working with local people, has the right to make decisions that will protect its green belt, as is specified in the national planning policy framework.

[Mr Ronnie Campbell (Blyth Valley) (Lab)]

In Cramlington, in my constituency, an urban sprawl of housing has developed over the years since it became a new town. There is a small green patch there, but it is currently the subject of an application for planning permission to build more housing. Should not the townships that were built during the 1960s have a bit of green space in the middle?

[Brandon Lewis]

We all like to keep our green spaces, and the NPPF is very clear about the need to protect green belt, but, ultimately, the decision should be made locally. It is for the local authority to outline its local plan, but I urge the community in the area to consider proceeding with a local neighbourhood plan, in order to give themselves absolute local control and, if they want it, local protection.

[Mike Thornton (Eastleigh) (LD)]

In my constituency, Eastleigh borough council is working hard to meet the desperate need for more housing while also protecting the precious green gaps between our towns and villages. Are the Secretary of State and the Minister aware that the inspectorate has overruled the borough council’s local plan, which was based on all the evidence available, while refusing to give an adequate explanation of its reasons for insisting on the building of thousands more houses than the evidence has shown to be necessary?

[Brandon Lewis]

Obviously I cannot comment on a particular local plan, but I urge the hon. Gentleman to contact me and provide some of the details. The inspectors would generally look at the evidence, and I think it unlikely that they would make a specific comment about numbers. It is more probable that they challenged the local authority’s evidence. It is important for the authority to put together a strong evidence base to back up what it wants to do.

[Jenny Willott (Cardiff Central) (LD)]

9. What discussions he has had with local authorities on the frequency of the collection of black bins.

--- Later in debate ---

[Jeremy Lefroy (Stafford) (Con)]

10. What steps his Department has taken to help first-time buyers.

[The Minister of State, Department for Communities and Local Government (Brandon Lewis)]

We have already helped over 58,000 first-time buyers to purchase a home with as little as 5% deposit through Help to Buy. We are also consulting on the starter homes scheme. Starter homes will be available for 100,000 first-time buyers under 40 years of age, at a minimum of 20% below open market value.

[Jeremy Lefroy]

I thank the Minister for that important answer. Stafford and Rural Homes in my constituency is investing in many high-quality, well-designed new homes for social rent. What steps is he taking to ensure that the proposed new starter homes are of equally high quality and good design?

[Brandon Lewis]

My hon. Friend makes a good point. I have said at a number of points that it is important that, in building the quantity of homes we want, we ensure that the quality of build and design is there, too, so that communities can be proud of the homes that are being built. That is why I brought together a design panel of various organisations, which is looking at that work to ensure that we are using the best-quality design and build.

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

One way that the Minister can help first-time buyers in my constituency is to tackle high rents and insecurity in the private rented sector. Increasingly, there are reports of people who are not couples being forced to share a bedroom because they cannot afford the high rents in London, yet the Minister is being complacent. Is it not time that the Government acted?

[Brandon Lewis]

I think that, in asking for rent controls again, the hon. Lady may have just contradicted her colleague, the hon. Member for Wolverhampton North East (Emma Reynolds). We have introduced the rent to buy scheme, which was announced towards the end of last year, to enable people who are renting and want to own a home to have another option to do that. I also encourage the hon. Member for Hackney South and Shoreditch (Meg Hillier) to support our starter homes programme, which will make 100,000 extra homes available at a 20% discount.

[Mr Speaker]

I was going to call Mr Love, but he is not standing, so I won’t. But if he does, I might.

[Mr Andrew Love (Edmonton) (Lab/Co-op)]

I did not think that you would call two Opposition Members in a row, Mr Speaker.

The level of home ownership has fallen to its lowest level for 30 years. Will the Government now admit that their failure to build homes is pricing home ownership out of the reach of ordinary families?

[Brandon Lewis]

I gently point out to the hon. Gentleman that in 2010 we inherited the lowest level of building since 1923. We have been rebuilding that market, which is now back at the 2007 level. We have started building affordable homes at the fastest rate in 20 years. The latest figures we have show that, in 2013, we had the highest level of first-time buyers in the market—almost 230,000—for many years.

[Heidi Alexander (Lewisham East) (Lab)]

11. What comparative assessment he has made of the number of housing completions and demand for housing since 2010.

--- Later in debate ---

[Andrew Stephenson (Pendle) (Con)]

14. What steps he has taken to encourage the development of brownfield sites in Pendle.

[The Minister of State, Department for Communities and Local Government (Brandon Lewis)]

We are working with the Lancashire local enterprise partnership and Pendle council to support development of the iconic Brierfield mill site. We have provided £2.5 million to help bring over 600 empty properties back into use in Pendle. Brownfield sites in the Burnley-Pendle corridor have also been shortlisted for housing zone status.

[Andrew Stephenson]

I welcome the news that east Lancashire has been shortlisted as a possible housing brownfield zone. However, more needs to be done to unlock previously developed sites and take pressure off greenfield areas like the Rough and the Meadows in Colne, which are currently subject to planning applications. What more reassurance can the Minister give me that the Government will support councils like Pendle to prioritise brownfield?

[Brandon Lewis]

My hon. Friend is absolutely right and he has spoken to me extensively about the excellent work going on in Pendle to make sure that brownfield sites are being developed, and I am pleased that that is part of the housing zone programme. We are in the process of encouraging further development on brownfield land. We want to develop 200,000 new homes by 2020 on brownfield land, and just last week we launched a £4.4 million incentive fund to support the preparation of local development orders on brownfield sites.

[Andrew Gwynne (Denton and Reddish) (Lab)]

rose—

[Andrew Gwynne]

Absolutely, Mr Speaker. Last year the planning Minister told me that green-belt protection throughout the ancient county of Lancashire, which incorporates my constituency as well as Pendle, meant that development would not be permitted unless there was extensive consultation with the local population through an amendment to the development plan, and only then in exceptional circumstances. What would the Minister’s view be of a local authority that did not consult extensively with the local community and then approved a development in the green belt, as Liberal Democrat-controlled Stockport council has now done?

[Brandon Lewis]

I am sure, Mr Speaker, that you will excuse me for saying “Nicely done” to the hon. Gentleman for keeping that question in order.

The hon. Gentleman is right: rearranging, reorganising or relooking at green belt within a local plan needs to be done in full consultation with people. The local authority needs to go through that, and it has to go through an independent examination with an inspector, but, obviously, with regard to individual planning applications, ultimately we believe in localism. I believe it is right for local people, through their local authorities, to have that power, through democracy, to make local decisions. It is very much a matter for the local authority.

[Stuart Andrew (Pudsey) (Con)]

17. What steps his Department is taking to support local communities with neighbourhood planning and community rights.

--- Later in debate ---

[Robert Halfon (Harlow) (Con)]

Harlow has had more than 100 illegal Traveller encampments over the past 15 months, yet the chief constable of Essex says that he does not have the power to remove them and cites human rights legislation. Will my hon. Friend the Minister please have urgent discussions with the chief constable, set out what the powers are and tell them to stop hiding behind Association of Chief Police Officers guidelines?

[The Minister of State, Department for Communities and Local Government (Brandon Lewis)]

I know that my hon. Friend has fought hard for his residents in Harlow and I have met him, the police and crime commissioner and Harlow council. The council and the local police should be using their powers to make sure that policy, the green belt and the good residents of Harlow are protected in the way my hon. Friend has fought so hard to do.

[Mr Nick Raynsford (Greenwich and Woolwich) (Lab)]

T10. May I draw the House’s attention to my entry in the Register of Members’ Financial Interests? This time last year, the Department published a consultation paper on the private rented sector that, among other items, proposed that the installation of working smoke alarms be mandatory. Since then, Ministers have repeatedly failed to meet their own—frequently deferred—deadlines for saying when the consultation will be published. Why are they dragging their feet on such a simple and popular measure that will save lives?

[Brandon Lewis]

The right hon. Gentleman makes a fair point about how important working smoke alarms and CO₂ detectors can be in saving lives. We will respond to the consultation in due course.

[Dame Angela Watkinson (Hornchurch and Upminster) (Con)]

Will my right hon. Friend the Secretary of State discuss with his Cabinet colleague the Secretary of State for Health the rules of ordinary residence for people in care homes? The London borough of Havering picks up financial responsibility for a large number of self-funding residents who come from out-borough. Would it not be fairer if the rule of ordinary residence relied on the address where that person last lived?