Housing and Planning Bill

Brandon Lewis Excerpts

Tuesday 5th January 2016 Commons Chamber

[Chris Philp]

Most first-time buyer households have two people’s incomes contributing, which improves the affordability.

On the specific question raised by the hon. Member for City of Durham on amendment 34 about preventing buy-to-let investors, clause 2(1)(b) says starter homes will apply only to “qualifying first-time buyers”, which is very clear.

In summary, I strongly support the starter homes concept and the concept of a property-owning democracy, and I support the 86% of our constituents who want to buy their own home.

[The Minister for Housing and Planning (Brandon Lewis)]

We have had an extensive discussion both in Committee and tonight, and I look forward to rest of tonight’s debate, not least as it might allow us to see if the current shadow Front Bench is still the shadow Front Bench by the time we finish.

We have had extensive discussion on the Opposition amendments on starter homes, particularly in relation to clause 1, and the hon. Member for City of Durham (Dr Blackman-Woods) has returned to that today, repeating points made in some of our previous debates. Since we discussed these clauses in Committee, our spending review has doubled our investment in affordable housing. The Prime Minister announced just yesterday that £1.2 billion of our starter homes funding will in the first instance support further brownfield site preparation, and that builds on the £36 million made available late last year.

Clause 1 sets out our position clearly—our manifesto commitment being delivered to build 200,000 starter homes. Clause 1 includes a clear definition to be applied nationally, and I hope the House will agree that we should not water it down through the proposed amendments. We strongly believe that new housing developments need to be supported by improvements in local infrastructure—this particularly covers amendment 32. Starter homes reforms do not change this. Starter home developments will still be required to have section 106 agreements to provide necessary site-specific infrastructure.

Turning to amendments 33, 34, 35, 37, 38 and 39, we need to be clear that these would remove the real benefits starter homes offer to young people—the very people we are looking to help. So I maintain that our model, as defined in clause 2, should stand to define our product clearly and support national delivery.

The hon. Member for City of Durham referred to amendment 39. I made it clear in Committee—Members can read what was said in Committee—that the regulations will specify that post-sale restrictions on sale and letting will exist and there is likely to be a period of five years before a starter home can be sold or let at open market value. I defend the right of any homeowner to have the same rights as any other homeowner to treat their home properly. If someone can never realise more than 80% of the value of their property, they lose the ability to move upwards in the housing market. This risks stagnation, rather than mobility. I want to incentivise young people and families to move onwards and upwards, and our model will enable families to do just that.

Turning to amendments tabled by my hon. Friend the Member for South West Devon (Mr Streeter), the hon. Member for Westmorland and Lonsdale (Tim Farron) and the right hon. Member for Wentworth and Dearne (John Healey), I want it to be absolutely clear that the Government strongly support the need for a range of products to improve access to homeownership, and other products can perform a valuable function, too. It is for councils to consider whether these products should form part of their affordable housing ask on any given housing site. The clause will not prevent such developments from coming forward; nor will it prevent councils from securing other forms of affordable housing.

We are also introducing flexibilities in the Bill to encourage councils to build their own affordable housing. Let us be clear: 2014 saw the highest level of council housing starts for 23 years. However, we make no apology for prioritising support for low-cost home ownership and for making sure that we do what we can to get young people on to the housing ladder, rewarding their hard work and ambition.

I note the support for rent to buy, which is a product that we in the Government have supported as well. We will continue to focus on it, but at this stage I do not want to dilute our clear focus on delivering starter homes for first-time buyers. I accept that the need will vary across the country, which brings me to amendment 41. We need to be able to provide more starter homes across the country, and the outcome of our consultation will involve setting different requirements in different areas. However, I want to wait for the outcome of the consultation before I make any final decisions.

As I said in Committee, amendment 42 is unnecessary. Again, our consultation will seek views on the type of site that should be exempt from the duty, and I believe that it is right to await the outcome of that consultation. We will then publish a full range of exemptions. On Amendment 43, much of the information that the amendment proposes to have included is already reported. I want to reassure Members that we will consult on the proposed regulations relating to clause 5, and this will include details of the proposed monitoring reports.

On amendments 44 and 46, we are now in a position in which we can no longer afford to hold on to employment land indefinitely if it is not in productive use. I expect local authorities to continue to examine applications relating to exemption sites with the same rigour with which they examine other applications. I am therefore not persuaded that either of the amendments is required. If land is in active use, or if there is robust evidence that it could soon be in productive use for employment uses, a council will be free to consider it as part of the planning process.

Turning to amendment 45, I want to reassure Members that it is our firm intention that any compliance direction should be a backstop provision. We expect that provision to be used only rarely, but it will be an incentive to ensure that we do our bit to deliver these new starter homes for first-time buyers.

[Mr Betts]

On that point about direction, will the Minister tell me what freedom local authorities will have to assess housing need in their areas if they decide that, on balance, they need to provide more rented or shared ownership homes as part of a package relating to a section 106 agreement on a particular site?

[Brandon Lewis]

Obviously, local authorities can build more council houses. I would encourage them to use the headroom that they already have to build more social housing themselves, but they will continue to have the ability to negotiate with developers in relation to section 106, just as they do now.

On new clause 2, it is clearly important that we build new developments that can stand the test of time, just as our Victorian and other predecessors did before us. I do not believe that the new clause is necessary, however. We already have strong, clear policies on resilience, sustainability and design in the national planning policy framework, supported by building regulations. The new clause would impose additional and unnecessary burdens. I say this in the light of the fact that in more than 96% of the cases in which the Environment Agency has raised objections, those objections have been fully heeded in the final planning decisions. It is absolutely right that local authorities should take good account of the advice given by the agency on developments in flood risk areas.

[John Mann (Bassetlaw) (Lab)]

Would the Minister consider a new classification of floodplains within the development framework, to allow an additional specification for local authorities? I am prepared to reshuffle to the Tea Room to discuss this matter further if he would like to join me.

[Brandon Lewis]

I am always happy to discuss all things with the hon. Gentleman, but I am not going to be tempted into making changes like that here tonight. He is right, however, to suggest that councils listen to the advice given by the Environment Agency, and it is good to know that 99% of proposed new homes involved in planning outcomes have been in line with the agency’s advice.

My right hon. Friend the Member for Basingstoke (Mrs Miller) opened the debate with a discussion on new clause 1. I am pleased to be the first to say that it is already a requirement that starter homes should be subject to compliance with the relevant requirements of the building regulations, as are all new buildings and all major alterations to existing ones. I note that she and other Members have been raising issues to make it clear that they want to ensure that these regulations are strong enough and are abided by. I believe that her proposed subsection 2(b) is not needed, because of the codes already in place. However, she and others have raised the issue of the availability of site inspection records, which is also an important issue. As a result of her representations, we have asked the Building Control Performance Standards Advisory Group to look at making inspection records available on request to building owners and prospective owners. It will report back to us with suggested amendments in February, and I of course look forward to hearing her contribute on that.

Work is also being done by the all-party group for excellence in the built environment, which I know is looking at a range of issues in this area. I look forward to receiving its report, as we will be able to review what comes out of it in order to consider whether any strengthening of the guidance is needed going forward.

We have had an interesting debate on this group but, for the reasons given, I hope that my right hon. Friend and others who have tabled proposals will not feel the need to press them to a Division.

--- Later in debate ---

[Mr Jones]

As the hon. Lady will know from looking at the original Bill, the penalty—I use the word penalty rather than fine—is £5,000. That has now been increased with these amendments, which I hope she will support, to £30,000. In regard to amendments 47, 48 and 49, the process for serving warning notices in the operation of the unpaid rent condition means in practice that it will take a landlord at least 12 weeks to recover an abandoned property.

Amendments 48 and 49 would add at least a further four weeks, and amendment 47 would delay the process further if a landlord needed to seek the local authority’s view on whether the property had been abandoned. I can see that some kind of independent verification as a safeguard might, on first appearance, seem an attractive proposition. However, in addition to the obvious delay to the process that that would cause, I do not see how the local authority could deliver that verification with any more precision than the landlord. It would also create a significant new burden on local authorities.

The provisions can also be used where a property has been abandoned by the tenant and rent arrears continue to accrue. In those circumstances, it is important that landlords should be able to recover the premises with minimum delay, but while giving the tenant every opportunity to confirm that they have not abandoned it. We therefore believe that three months, or 12 weeks, is the right period. We brought forward a number of further safeguards in Committee including a third warning notice, which must be affixed to the property.

I am conscious of the time, and I hope that colleagues who have tabled amendments as part of this group will not divide the House unnecessarily. The Government amendments will also confirm our support for an independent housing association sector that has freedom to deliver the homes people need and I commend them to the House.

Question put and agreed to.

New clause 6 accordingly read a Second time, and added to the Bill.



New Schedule 1

Reducing social housing regulation

Part 1

Removal of disposal consent requirements

Housing Act 1985 (c. 68)

1 (1) Section 171D of the Housing Act 1985 (consent to certain disposals of housing obtained subject to the preserved right to buy) is amended as follows.

(2) After subsection (2) insert—

“(2ZA) Subsection (2) does not apply to a disposal of land by a private registered provider of social housing.”

(3) In subsection (2A)—

(a) omit paragraph (a);

(b) in paragraph (b), for “any other” substitute “a”.

Housing Act 1988 (c. 50)

2 The Housing Act 1988 is amended as follows.

3 (1) Section 81 (consent to certain disposals of housing obtained from housing action trusts) is amended as follows.

(2) In subsection (1), for “section 79(2)(za) or (a)” substitute “section 79(2)(a)”.

(3) In subsection (3A)—

(a) omit paragraph (a);

(b) in paragraph (b), for “any other” substitute “a”.

(4) In subsection (7), omit “section 148 or 172 of the Housing and Regeneration Act 2008,”.

4 (1) Section 133 (consent to certain disposals of housing obtained from local authorities) is amended as follows.

(2) In subsection (1ZA)—

(a) omit paragraph (a);

(b) in paragraph (b), for “any other” substitute “a”.

(3) For subsection (1B) substitute—

“(1B) This section does not apply if the original disposal was made to a private registered provider of social housing.”

(4) In subsection (7), omit “section 148 or 172 of the Housing and Regeneration Act 2008,”.

Local Government and Housing Act 1989 (c. 42)

5 (1) Section 173 of the Local Government and Housing Act 1989 (consent to certain disposals of housing obtained from new town corporations) is amended as follows.

(2) After subsection (1) insert—

“(1ZA) Subsection (1) does not apply to a disposal of land by a private registered provider of social housing.”

(3) In subsection (1A)—

(a) omit paragraph (a);

(b) in paragraph (b), for “any other” substitute “a”.

(4) In subsection (7), omit “section 148 or 172 of the Housing and Regeneration Act 2008,”.

Leasehold Reform, Housing and Urban Development Act 1993 (c. 28)

6 In Schedule 10 to the Leasehold Reform, Housing and Urban Development Act 1993 (acquisition of Interests from Local Authorities etc), in paragraph 1(2)(b), for “sections 148 and 172” substitute “section 148”.

Housing and Regeneration Act 2008

7 The Housing and Regeneration Act 2008 is amended as follows.

8 In section 60 (structural overview), in subsection (4), in the final column of the entry relating to Chapter 5 of Part 2 of the Act—

(a) for paragraph (b) (Regulator’s consent) substitute—

“(b) Notification of regulator”;

(b) omit paragraphs (c), (d) and (g).

9 After section 74 insert—

“74A Leaving the social housing stock: transfer by private providers

(1) A dwelling ceases to be social housing if a private registered provider of social housing owns the freehold or a leasehold interest and transfers it to a person who is not a registered provider of social housing.

(2) Subsection (1) does not apply if and for so long as the private registered provider has a right to have the interest transferred back to it.

(3) Subsection (1) does not apply where low cost home ownership accommodation is transferred to—

(a) the “buyer” under equity percentage arrangements (see section 70(5)), or

(b) the trustees under a shared ownership trust (see section 70(6)).

(4) See section 73 for circumstances when low cost home ownership accommodation ceases to be social housing.”

10 (1) Section 75 (leaving the social housing stock) is amended as follows.

(2) Omit subsection (1).

(3) In subsections (2) and (3), for “”Subsections 1 and (1A) do” substitute “Subsection (1A) does”.

(4) In the heading, after “stock:” insert “local authority”.

11 In section 119 (de-registration: voluntary), in subsection (5), omit paragraph (a) and the “and” at the end of that paragraph.

12 In section 149 (moratorium: exempted disposals)—

(a) omit subsection (6);

(b) in subsection (7), for “6” substitute “5”;

(c) in subsection (8), for “7” substitute “6”.

13 In section 171 (power to dispose), in subsection (3), omit “(which include provisions requiring the regulator’s consent for certain disposals)”.

14 For the italic heading above section 172 substitute—

“Notification of Regulator”.

15 Omit sections 172 to 175 (disposal consents).

16 For section 176 substitute—

“176 Notification of disposal

(1) If a private registered provider disposes of a dwelling that is social housing it must notify the regulator.

(2) If a non-profit registered provider disposes of land other than a dwelling it must notify the regulator.

(3) Subsection (1) continues to apply to any land of a private registered provider even if it has ceased to be a dwelling.

(4) The regulator may give directions about—

(a) the period within which notifications under subsection (1) or (2) must be given;

(b) the content of those notifications.

(5) The regulator may give directions dispensing with the notification requirement in subsection (1) or (2).

(6) A direction under this section may be—

(a) general, or

(b) specific (whether as to particular registered providers, as to particular property, as to particular forms of disposal or in any other way).

(7) A direction dispensing with a notification requirement—

(a) may be expressed by reference to a policy for disposals submitted by a registered provider;

(b) may include conditions.

(8) The regulator must make arrangements for bringing a direction under this section to the attention of every registered provider to which it applies.”

17 Omit section 179 and the italic heading before it (application of provisions of the Housing Act 1996 that have a connection with disposal consents.)

18 In section 186 (former registered providers), for “to 175” substitute “and 176 (apart from section 176(2))”.

19 Omit section 187 (change of use, etc).

20 Omit section 190 (consent to disposals under other legislation).

21 In section 278A (power to nominate for consultation purposes), for paragraph (b) substitute—

“(b) section 176;”.

Part 2

Restructuring and dissolution: removal of consent requirements etc

22 The Housing and Regeneration Act 2008 is amended as follows.

23 In section 115 (profit-making and non-profit organisations), in subsection (9), after “non-profit organisation” insert “or vice versa”.

24 For section 160 substitute—

“160 Company: arrangements and reconstructions

(1) This section applies to a non-profit registered provider which is a registered company. The registered provider must notify the regulator of any voluntary arrangement under Part 1 of the Insolvency Act 1986.

(2) The registered provider must notify the regulator of any order under section 899 of the Companies Act 2006 (court sanction for compromise or arrangement).

(3) An order under section 899 of Companies Act 2006 does not take effect until the registered provider has confirmed to the registrar of companies that the regulator has been notified.

(4) The registered provider must notify the regulator of any order under section 900 of the Companies Act 2006 (powers of court to facilitate reconstruction or amalgamation).

(5) The requirement in section 900(6) of the Companies Act 2006 (sending copy of order to registrar) is satisfied only if the copy is accompanied by confirmation that the regulator has been notified.”

25 For section 161 substitute—

“161 Company: conversion into registered society

(1) This section applies to a non-profit registered provider which is a registered company.

(2) The registered provider must notify the regulator of any resolution under section 115 of the Co-operative and Community Benefit Societies Act 2014 for converting the registered provider into a registered society.

(3) The registrar of companies may register a resolution under that section only if the registered provider has confirmed to the registrar that the regulator has been notified.

(4) The regulator must decide whether the new body is eligible for registration under section 112.

(5) If the new body is eligible for registration, the regulator must register it and designate it as a non-profit organisation.

(6) If the new body is not eligible for registration, the regulator must notify it of that fact.

(7) Pending registration, or notification that it is not eligible for registration, the new body is to be treated as if it were registered and designated as a non-profit organisation.

26 For section 163 substitute—

“163 Registered society: restructuring

(1) This section applies to a non-profit registered provider which is a registered society.

(2) The registered provider must notify the regulator of any resolution passed by the society for the purposes of the restructuring provisions listed in subsection (4).

(3) The Financial Conduct Authority may register the resolution only if the registered provider has confirmed to the Financial Conduct Authority that the regulator has been notified.

(4) The following provisions of the Co-operative and Community Benefit Societies Act 2014 are the restructuring provisions—

(a) section 109 (amalgamation of societies);

(b) section 110 (transfer of engagements between societies);

(c) section 112 (conversion of society into a company etc).

(5) The regulator must decide whether the body created or to whom engagements are transferred (“the new body”) is eligible for registration under section 112.

(6) If the new body is eligible for registration, the regulator must register it and designate it as a non-profit organisation.

(7) If the new body is not eligible for registration, the regulator must notify it of that fact.

(8) Pending registration, or notification that it is not eligible for registration, the new body is to be treated as if it were registered and designated as a non-profit organisation.”

27 In section 165 (registered society: dissolution), for subsection (2) substitute—

“(2) The registered provider must notify the regulator.

(3) The Financial Conduct Authority may register the instrument under section 121 of that Act, or cause notice of the dissolution to be advertised under section 122 of that Act, only if the registered provider has confirmed to the Financial Conduct Authority that the regulator has been notified.”

28 Omit section 166 (winding up petition by regulator).

29 After section 169 insert—

“Notification of constitutional changes

169A  Registered societies: change of rules

A non-profit registered provider that is a registered society must notify the regulator of any change to the society’s rules.

169B Charity: change of objects

The trustees of a registered charity that is a non-profit registered provider must notify the regulator of any amendment to the charity’s objects.

169C Companies: change of articles etc

A non-profit registered provider that is a registered company must notify the regulator of—

(a) any amendment of the company’s articles of association,

(b) any change to its name or registered office.”

Directions about notifications

169D Directions about notifications

‘(1) The regulator may give directions about—

(a) the period within which notifications under sections 160 to 165 or 169A to 169C must be given by private registered providers;

(b) the content of those notifications.

(2) The regulator may give directions dispensing with notification requirements imposed by sections 160 to 165 or 169A to 169C.

(3) A direction under this section may be—

(a) general, or

(b) specific (whether as to particular registered providers, particular kinds of notification requirement or in any other way).

(4) A direction dispensing with a notification requirement may include conditions.

(5) The regulator must make arrangements for bringing a direction under this section to the attention of every registered provider to which it applies.”

30 In section 192 (overview), omit paragraph (c).

31 Omit sections 211 to 214 and the italic heading before section 211 (constitutional changes to non-profit providers).

Part 3

Abolition of disposal proceeds fund

32 In the Housing and Regeneration Act 2008 omit—

(a) sections 177 and 178;

(b) the italic heading before section 177.

33 Regulations under section152 in connection with the coming into force of paragraph 32 may, in particular, include provision to preserve the effect of sections 177 and 178 of the Housing and Regeneration Act 2008 for a period in relation to sums in a private registered provider’s disposal proceeds fund immediately before that paragraph comes into force (including later interest added under section 177(7) of that Act).

Part 4

enforcement powers

34 The Housing and Regeneration Act 2008 is amended as follows.

35 In section 269 (appointment of new officers of non-profit registered providers) in subsection (1)(c), for “proper management of the body’s affairs” substitute “to ensure that the registered provider’s affairs are managed in accordance with legal requirements (imposed by or under an Act or otherwise)”.

36 In section 275 (interpretation), for the definition of “mismanagement” substitute—

““mismanagement”, in relation to the affairs of a registered provider, means managed in breach of any legal requirements (imposed by or under an Act or otherwise);”.”—(Mr Marcus Jones.)

Brought up, read the First and Second time, and added to the Bill.

Amendment made: 4, page 33, line 6, leave out clause 78.—(Mr Marcus Jones.)

Clause 78 amends legislation that requires private registered providers to obtain consent before disposing of property. The purpose of the clause was to allow a disposal to refer to the right to buy deal. This clause is no longer needed because NS1 removes the general requirements for private registered providers to obtain consent before disposing of property.

Clause 153

Regulations: General

Amendments made: 6, page 76, line 22, leave out paragraph (b).

This is consequential on amendment 4.

Amendment 5, page 76, line 23, at end insert—

“( ) regulations under section (Conduct of housing administration etc) or paragraph 44 of Schedule (Conduct of housing administration: companies),” .—(Mr Marcus Jones.)

This ensures that the regulations mentioned in the amendment are subject to affirmative procedure.

New Clause 7

Recovery of social housing assistance: successors in title

“‘(1) Section 33 of the Housing and Regeneration Act 2008 (recovery of social housing assistance: interest and successors in title) is amended as follows.

(2) In subsection (6)(b), after “another person” insert “(“the successor”)”.

(3) After subsection (6) insert—

“(6A) But subsection (7) does not apply if—

(a) the successor is a person other than a registered provider of social housing, and

(b) at any time since the social housing assistance was given—

(i) a person has enforced a security over the social housing, or

(ii) the social housing has been disposed of by a body while it is being wound up or is in administration.””

(4) In subsection (7) for “that other person” substitute “the successor”.”.—(Mr Marcus Jones.)

Where the Homes and Community Agency gives financial assistance on condition that the recipient provides social housing, there are currently circumstances in which the financial assistance can be recovered from a successor in title to the recipient. The amendment limits the ability to recover from a successor in title in certain circumstances, for example where a mortgagee has taken steps to recover possession.

Brought up, read the First and Second time, and added to the Bill.

New Clause 8

Housing administration order: providers of social housing in England

“‘(1) In this Chapter “housing administration order” means an order which—

(a) is made by the court in relation to a private registered provider of social housing that is—

(i) a company,

(ii) a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014, or

(iii) a charitable incorporated organisation within the meaning of Part 11 of the Charities Act 2011, and

(b) directs that, while the order is in force, the provider’s affairs, business and property are to be managed by a person appointed by the court.

(2) The person appointed for the purposes of the housing administration order is referred to in this Chapter as the “housing administrator”.

(3) The housing administrator must—

(a) manage the provider’s affairs, business and property so as to achieve the objective set out in section (Objective of housing administration), and

(b) carry out all other functions so as to achieve that objective.

(4) In relation to a housing administration order applying to a registered provider that is a foreign company, references in this section to the provider’s affairs, business and property are references to its UK affairs, business and property.” —(Mr Marcus Jones.)

This is the first of a number new clauses designed to introduce a special administration regime for private registered providers of social housing that have become insolvent. There are also restrictions on other insolvency procedures. The intention is for these new clauses to form a new Chapter in Part 4 of the Bill. References in the amendments to “this Chapter” or to “Chapter 3A” are to the new Chapter.

Brought up, read the First and Second time, and added to the Bill.

New Clause 9

Objective of housing administration

“‘(1) The objective of a housing administration is to ensure that—

(a) that the registered provider’s social housing remains in the regulated housing sector, and

(b) that it becomes unnecessary, by one or more of the following means, for the housing administration order to remain in force for that purpose.

(2) Those means are—

(a) the rescue as a going concern of the registered provider, and

(b) relevant transfers of some or all of the registered provider’s undertaking.

(3) A transfer is a “relevant” transfer if it is a transfer as a going concern to another private registered provider, or to two or more different providers, of so much of the undertaking as it is appropriate to transfer for the purpose of achieving the objective of the housing administration.

(4) The means by which relevant transfers may be effected in the case where the registered provider subject to the order is a company include, in particular—

(a) a transfer of the undertaking of the registered provider subject to the order, or of a part of its undertaking, to a wholly-owned subsidiary of that provider, and

(b) a transfer to a registered provider of securities of a wholly-owned subsidiary to which there has been a transfer within paragraph (a).

(5) In subsection (4) “wholly-owned subsidiary” has the meaning given by section 1159 of the Companies Act 2006.

(6) The objective of a housing administration may be achieved by relevant transfers to the extent only that—

(a) the rescue as a going concern of the registered provider is not reasonably practicable or is not reasonably practicable without the transfers,

(b) the rescue of the registered provider as a going concern would not achieve the objective of the housing administration or would not do so without the transfers,

(c) the transfers would produce a result for the registered provider’s creditors as a whole that is better than the result that would be produced without them, or

(d) the transfers would, without prejudicing the interests of the registered provider’s creditors as a whole, produce a result for the registered provider’s members as a whole that is better than the result that would be produced without them.

(7) In the case of a charitable incorporated organisation, the reference in subsection (6)(d) to the registered provider’s members is to be read as a reference to the charitable incorporated organisation.

(8) For the purposes of subsection (1)(a) social housing remains in the regulated housing sector for so long as it is owned by a private registered provider.” —(Mr Marcus Jones.)

See Member’s explanatory statement for NC8.

Brought up, read the First and Second time, and added to the Bill.

New Clause 10

Applications for housing administration orders

“‘(1) An application for a housing administration order may be made only—

(a) by the Secretary of State, or

(b) with the consent of the Secretary of State, by the Regulator of Social Housing.

(2) The applicant for a housing administration order in relation to a registered provider must give notice of the application to—

(a) every person who has appointed an administrative receiver of the provider,

(b) every person who is or may be entitled to appoint an administrative receiver of the registered provider, every person who is or may be entitled to make an appointment in relation to the registered provider under paragraph 14 of Schedule B1 to the Insolvency Act 1986 (appointment of administrators by holders of floating charges), and

(c) any other persons specified by housing administration rules.

(3) The notice must be given as soon as possible after the making of the application.

(4) In this section “administrative receiver” means—

(a) an administrative receiver within the meaning given by section 251 of the Insolvency Act 1986 for the purposes of Parts 1 to 7 of that Act, or in relation to a foreign company, a person whose functions are equivalent to those of an administrative receiver and relate only to its UK affairs, business and property.”—(Mr Marcus Jones.)

See Member’s explanatory statement for NC8.

Brought up, read the First and Second time, and added to the Bill.

New Clause 11

Powers of court

“‘(1) On hearing an application for a housing administration order, the court has the following powers—

(a) it may make the order,

(b) it may dismiss the application,

(c) it may adjourn the hearing conditionally or unconditionally,

(d) it may make an interim order,

(e) it may treat the application as a winding-up petition and make any order the court could make under section 125 of the Insolvency Act 1986 (power of court on hearing winding-up petition), and

(f) it may make any other order which it thinks appropriate.

(2) The court may make a housing administration order in relation to a registered provider only if it is satisfied—

(a) that the registered provider is unable, or is likely to be unable, to pay its debts, or

(b) that, on a petition by the Secretary of State under section 124A of the Insolvency Act 1986, it would be just and equitable (disregarding the objective of the housing administration) to wind up the registered provider in the public interest.

(3) The court may not make a housing administration order on the ground set out in subsection (2)(b) unless the Secretary of State has certified to the court that the case is one in which the Secretary of State considers (disregarding the objective of the housing administration) that it would be appropriate to petition under section 124A of the Insolvency Act 1986.

(4) The court has no power to make a housing administration order in relation to a registered provider which—

(a) is in administration under Schedule B1 to the Insolvency Act 1986, or

(b) has gone into liquidation (within the meaning of section 247(2) of the Insolvency Act 1986).

(5) A housing administration order comes into force—

(a) at the time appointed by the court, or

(b) if no time is appointed by the court, when the order is made.

(6) An interim order under subsection (1)(d) may, in particular—

(a) restrict the exercise of a power of the registered provider or of its relevant officers, or

(b) make provision conferring a discretion on a person qualified to act as an insolvency practitioner in relation to the registered provider.

(7) In subsection (6)(a) “relevant officer”—

(a) in relation to a company, means a director,

(b) in relation to a registered society, means a member of the management committee or other directing body of the society, and

(c) in relation to a charitable incorporated organisation, means a charity trustee (as defined by section 177 of the Charities Act 2011).

(8) In the case of a foreign company, subsection (6)(a) is to be read as a reference to restricting the exercise of a power of the registered provider or of its directors—

(a) within the United Kingdom, or

(b) in relation to the company’s UK affairs, business or property.

(9) For the purposes of this section a registered provider is unable to pay its debts if—

(a) it is deemed to be unable to pay its debts under section 123 of the Insolvency Act 1986, or

(b) it is an unregistered company which is deemed, as a result of any of sections 222 to 224 of the Insolvency Act 1986, to be so unable for the purposes of section 221 of that Act, or which would be so deemed if it were an unregistered company for the purposes of those sections.” —(Mr Marcus Jones.)

See Member’s explanatory statement for NC8.

Brought up, read the First and Second time, and added to the Bill.

New Clause 12

Housing administrators

“‘(1) The housing administrator of a registered provider—

(a) is an officer of the court, and

(b) in carrying out functions in relation to the registered provider, is the registered provider’s agent.

(2) The management by the housing administrator of a registered provider of any of its affairs, business or property must be carried out for the purpose of achieving the objective of the housing administration as quickly and as efficiently as is reasonably practicable.

(3) The housing administrator of a registered provider must carry out functions in the way which, so far as it is consistent with the objective of the housing administration to do so, best protects—

(a) the interests of the registered provider’s creditors as a whole, and

(b) subject to those interests, the interests of the registered provider’s members as a whole.

(4) In the case of a charitable incorporated organisation, the reference in subsection (3)(b) to the interests of members is to the interests of the charitable incorporated organisation.

(5) A person is not to be the housing administrator of a registered provider unless qualified to act as an insolvency practitioner in relation to the registered provider.

(6) If the court appoints two or more persons as the housing administrator of a registered provider, the appointment must set out—

(a) which (if any) of the functions of a housing administrator are to be carried out only by the appointees acting jointly,

(b) the circumstances (if any) in which functions of a housing administrator are functions of one of the appointees, or by particular appointees, acting alone, and

(c) the circumstances (if any) in which things done in relation to one of the appointees, or in relation to particular appointees, are to be treated as done in relation to all of them.” —(Mr Marcus Jones.)

See Member’s explanatory statement for NC8.

Brought up, read the First and Second time, and added to the Bill.

New Clause 13

Conduct of administration etc

“‘(1) Schedule (Conduct of housing administration: companies) contains provision applying the provisions of Schedule B1 to the Insolvency Act 1986, and certain other legislation, to housing administration orders in relation to companies.

(2) The Secretary of State may by regulations provide for any provision of Schedule B1 to the Insolvency Act 1986 or any other insolvency legislation to apply, with or without modifications, to cases where a housing administration order is made in relation to a registered society or a charitable incorporated organisation.

(3) The Secretary of State may by regulations modify any insolvency legislation as it applies in relation to a registered society or a charitable incorporated organisation if the Secretary State considers the modifications are appropriate in connection with any provision made by or under this Chapter.

(4) In subsection (3) “insolvency legislation” means—

(a) the Insolvency Act 1986, or

(b) any other legislation (whenever passed or made) that relates to insolvency or makes provision by reference to anything that is or may be done under the Insolvency Act 1986.

(5) The power to make rules under section 411 of the Insolvency Act 1986 is to apply for the purpose of giving effect to this Chapter as it applies for the purpose of giving effect to Parts 1 to 7 of that Act (and, accordingly, as if references in that section to those Parts included references to this Chapter).

(6) Section 413(2) of the Insolvency Act 1986 (duty to consult Insolvency Rules Committee about rules) does not apply to rules made under section 411 of that Act as a result of this section.”—(Mr Marcus Jones.)

See Member’s explanatory statement for NC8.

Brought up, read the First and Second time, and added to the Bill.

New Clause 14

Winding-up Orders

“‘(1) This section applies if a person other than the Secretary of State petitions for the winding-up of a registered provider that is—

(a) a company,

(b) a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014, or

(c) a charitable incorporated organisation within the meaning of Part 11 of the Charities Act 2011.

(2) he court may not exercise its powers on a winding-up petition unless—If an application for a housing administration order in relation to the registered provider is made to the court in accordance with section (Applications for housing administration orders) before a winding-up order is made on the petition, the court may exercise its powers under section (Powers of court) (instead of exercising its powers on the petition).

(a) notice of the petition has been given to the Regulator of Social Housing, and

(b) a period of at least 28 days has elapsed since that notice was given.

(3) The Regulator of Social Housing must give the Secretary of State a copy of any notice given under subsection (2)(a).

(4) References in this section to the court’s powers on a winding-up petition are to—

(a) its powers under section 125 of the Insolvency Act 1986 (other than its power of adjournment), and

(b) its powers under section 135 of the Insolvency Act 1986.”—(Mr Marcus Jones.)

See Member’s explanatory statement for NC8.

Brought up, read the First and Second time, and added to the Bill.

New Clause 15

Voluntary Winding Up

“‘(1) This section applies to a private registered provider that is—

(a) a company,

(b) a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014, or

(c) a charitable incorporated organisation within the meaning of Part 11 of the Charities Act 2011.

(2) The registered provider has no power to pass a resolution for voluntary winding up without the permission of the court.

(3) Permission may be granted by the court only on an application made by the registered provider.

(4) The court may not grant permission unless—

(a) notice of the application has been given to the Regulator of Social Housing, and

(b) a period of at least 28 days has elapsed since that notice was given.

(5) If an application for a housing administration order in relation to the registered provider is made to the court in accordance with section (Applications for housing administration orders) after an application for permission under this section has been made and before it is granted, the court may exercise its powers under section (Powers of court).

(6) The Regulator of Social Housing must give the Secretary of State a copy of any notice given under subsection (4)(a).

(7) In this section “a resolution for voluntary winding up” has the same meaning as in the Insolvency Act 1986.”—(Mr Marcus Jones.)

See Member’s explanatory statement for NC8.

Brought up, read the First and Second time, and added to the Bill.

New Clause 16

Making of ordinary administration orders

“‘(1) This section applies if a person other than the Secretary of State makes an ordinary administration application in relation to a private registered provider that is—

(a) a company,

(b) a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014, or

(c) a charitable incorporated organisation within the meaning of Part 11 of the Charities Act 2011.

(2) The court must dismiss the application if—

(a) a housing administration order is in force in relation to the registered provider, or

(b) a housing administration order has been made in relation to the registered provider but is not yet in force.

(3) If subsection (2) does not apply, the court, on hearing the application, must not exercise its powers under paragraph 13 of Schedule B1 to the Insolvency Act 1986 (other than its power of adjournment) unless—

(a) notice of the application has been given to the Regulator of Social Housing,

(b) a period of at least 28 days has elapsed since that notice was given, and

(c) there is no application for a housing administration order which is outstanding.

(4) The Regulator of Social Housing must give the Secretary of State a copy of any notice given under subsection (3)(a).

(5) Paragraph 44 of Schedule B1 to the Insolvency Act 1986 (interim moratorium) does not prevent, or require the permission of the court for, the making of an application for a housing administration order.

(6) On the making of a housing administration order in relation to a registered provider, the court must dismiss any ordinary administration application made in relation to the registered provider which is outstanding.

(7) In this section “ordinary administration application” means an application in accordance with paragraph 12 of Schedule B1 to the Insolvency Act 1986.”—(Mr Marcus Jones.)

See Member’s explanatory statement for NC8.

Brought up, read the First and Second time, and added to the Bill.

New Clause 17

Administrator appointments by creditors

“‘(1) Subsections (2) to (4) make provision about appointments under paragraph 14 or 22 of Schedule B1 to the Insolvency Act 1986 (powers to appoint administrators) in relation to a private registered provider that is—

(a) a company,

(b) a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014, or

(c) a charitable incorporated organisation within the meaning of Part 11 of the Charities Act 2011.

(2) If in any case—

(a) a housing administration order is in force in relation to the registered provider,

(b) a housing administration order has been made in relation to the registered provider but is not yet in force, or

(c) an application for a housing administration order in relation to the registered provider is outstanding,

a person may not take any step to make an appointment.

(3) In any other case, an appointment takes effect only if each of the following conditions are met.

(4) The conditions are—

(a) that notice of the appointment has been given to the Regulator of Social Housing, accompanied by a copy of every document in relation to the appointment that is filed or lodged with the court in accordance with paragraph 18 or 29 of Schedule B1 to the Insolvency Act 1986,

(b) that a period of 28 days has elapsed since that notice was given,

(c) that there is no outstanding application to the court for a housing administration order in relation to the registered provider, and

(d) that the making of an application for a housing administration order in relation to the registered provider has not resulted in the making of a housing administration order which is in force or is still to come into force.

(5) The Regulator of Social Housing must give the Secretary of State a copy of any notice given under subsection (4)(a) (and a copy of the accompanying documents).

(6) Paragraph 44 of Schedule B1 to the Insolvency Act 1986 (interim moratorium) does not prevent, or require the permission of the court for, the making of an application for a housing administration order at any time before the appointment takes effect.”—(Mr Marcus Jones.)

See Member’s explanatory statement for NC8.

Brought up, read the First and Second time, and added to the Bill.

New Clause 18

Enforcement of security

“‘(1) This section applies in relation to a private registered provider that is—

(a) a company,

(b) a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014, or

(c) a charitable incorporated organisation within the meaning of Part 11 of the Charities Act 2011

(2) A person may not take any step to enforce a security over property of the registered provider unless—

(a) notice of the intention to do so as been given to the Regulator of Social Housing, and

(b) a period of at least 28 days has elapsed since the notice was given.

(3) In the case of a company which is a foreign company, the reference to the property of the company is to its property in the United Kingdom.

(4) The Regulator of Social Housing must give the Secretary of State a copy of any notice given under subsection (2)(a).”—(Mr Marcus Jones.)

See Member’s explanatory statement for NC8.

Brought up, read the First and Second time, and added to the Bill.

New Clause 19

Grants and loans where housing administration order is made

“‘(1) If a housing administration order has been made in relation to a registered provider, the Secretary of State may make grants or loans to the registered provider of such amounts as appear to the Secretary of State appropriate for achieving the objective of the housing administration.

(2) A grant under this section may be made on any terms and conditions the Secretary of State considers appropriate (including provision for repayment, with or without interest).”—(Mr Marcus Jones)

See Member’s explanatory statement for NC8.

Brought up, read the First and Second time, and added to the Bill.

New Clause 20

Indemnities where housing administration order is made

“‘(1) If a housing administration order has been made in relation to a registered provider, the Secretary of State may agree to indemnify persons in respect of one or both of the following—

(a) liabilities incurred in connection with the carrying out of functions by the housing administrator, and

(b) loss or damage sustained in that connection.

(2) The agreement may be made in whatever manner, and on whatever terms, the Secretary of State considers appropriate.

(3) As soon as practicable after agreeing to indemnify persons under this section, the Secretary of State must lay a statement of the agreement before Parliament.

(4) For repayment of sums paid by the Secretary of State in consequence of an indemnity agreed to under this section, see section (Indemnities: repayment by registered provideretc).

(5) The power of the Secretary of State to agree to indemnify persons—

(a) is confined to a power to agree to indemnify persons in respect of liabilities, loss and damage incurred or sustained by them as relevant persons, but

(b) includes power to agree to indemnify persons (whether or not they are identified or identifiable at the time of the agreement) who subsequently become relevant persons.

(6) The following are relevant persons for the purposes of this section—

(a) the housing administrator,

(b) an employee of the housing administrator,

(c) a partner or employee of a firm of which the housing administrator is a partner,

(d) a partner or employee of a firm of which the housing administrator is an employee,

(e) a partner of a firm of which the housing administrator was an employee or partner at a time when the order was in force,

(f) a body corporate which is the employer of the housing administrator,

(g) an officer, employee or member of such a body corporate, and

(h) a Scottish firm which is the employer of the housing administrator or of which the housing administrator is a partner.

(7) For the purposes of subsection (6)—

(a) references to the housing administrator are to be read, where two or more persons are appointed as the housing administrator, as references to any one or more of them, and

(b) references to a firm of which a person was a partner or employee at a particular time include a firm which holds itself out to be the successor of a firm of which the person was a partner or employee at that time.” —(Mr Marcus Jones.)

See Member’s explanatory statement for NC8.

Brought up, read the first and second time, and added to the Bill.

New Clause 21

Indemnities: repayment by registered provider etc

“‘(1) This section applies where a sum is paid out by the Secretary of State in consequence of an indemnity agreed to under section (Indemnities where housing administration order is made) in relation to the housing administrator of a registered provider.

(2) The registered provider must pay the Secretary of State—

(a) such amounts in or towards the repayment to the Secretary of State of that sum as the Secretary of State may direct, and

(b) interest on amounts outstanding under this subsection at such rates as the Secretary of State may direct.

(3) The payments must be made by the registered provider at such times and in such manner as the Secretary of State may determine.

(4) Subsection (2) does not apply in the case of a sum paid by the Secretary of State for indemnifying a person in respect of a liability to the registered provider.

(5) The Secretary of State must lay before Parliament a statement, relating to the sum paid out in consequence of the indemnity—

(a) as soon as practicable after the end of the financial year in which the sum is paid out, and

(b) if subsection (2) applies to the sum, as soon as practicable after the end of each subsequent financial year in relation to which the repayment condition has not been met.

(6) The repayment condition is met in relation to a financial year if—

(a) the whole of the sum has been repaid to the Secretary of State before the beginning of the year, and

(b) the registered provider was not at any time during the year liable to pay interest on amounts that became due in respect of the sum.”(Mr Marcus Jones.)

See Member’s explanatory statement for NC8.

Brought up, read the first and second time, and added to the Bill.

New Clause 22

Guarantees where housing administration order is made

“‘(1) If a housing administration order has been made in relation to a registered provider the Secretary of State may guarantee—

(a) the repayment of any sum borrowed by the registered provider while that order is in force,

(b) the payment of interest on any sum borrowed by the registered provider while that order is in force, and

(c) the discharge of any other financial obligation of the registered provider in connection with the borrowing of any sum while that order is in force.

(2) The Secretary of State may give the guarantees in whatever manner, and on whatever terms, the Secretary of State considers appropriate.

(3) As soon as practicable after giving a guarantee under this section, the Secretary of State must lay a statement of the guarantee before Parliament.

(4) For repayment of sums paid by the Secretary of State under a guarantee given under this section, see section (Guarantees: repayment by registered provider etc).”—(Mr Marcus Jones.)

See Member’s explanatory statement for NC8.

Brought up, read the first and second time, and added to the Bill.

New Clause 23

Guarantees: repayment by registered provider etc

“‘(1) This section applies where a sum is paid out by the Secretary of State under a guarantee given by the Secretary of State under section (Guarantees where housing administration order is made) in relation to a registered provider.

(2) The registered provider must pay the Secretary of State—

(a) such amounts in or towards the repayment to the Secretary of State of that sum as the Secretary of State may direct, and

(b) interest on amounts outstanding under this subsection at such rates as the Secretary of State may direct.

(3) The payments must be made by the registered provider at such times, and in such manner, as the Secretary of State may from time to time direct.

(4) The Secretary of State must lay before Parliament a statement, relating to the sum paid out under the guarantee—

(a) as soon as practicable after the end of the financial year in which the sum is paid out, and

(b) as soon as practicable after the end of each subsequent financial year in relation to which the repayment condition has not been met.

(5) The repayment condition is met in relation to a financial year if—

(a) the whole of the sum has been repaid to the Secretary of State before the beginning of the year, and

(b) the registered provider was not at any time during the year liable to pay interest on amounts that became due in respect of the sum.” —(Mr Marcus Jones.)

See Member’s explanatory statement for NC8.

Brought up, read the First and Second time, and added to the Bill.

New Clause 24

Modification of this Chapter under the Enterprise Act 2002

‘(1) The power to modify or apply enactments conferred on the Secretary of State by each of the sections of the Enterprise Act 2002 mentioned in subsection (2) includes power to make such consequential modifications of this Chapter as the Secretary of State considers appropriate in connection with any other provision made under that section.

(2) Those sections are—

(a) sections 248 and 277 of the Enterprise Act 2002 (amendments consequential on that Act), and

(b) section 254 of the Enterprise Act 2002 (power to apply insolvency law to foreign companies).” —(Mr Marcus Jones.)

See Member’s explanatory statement for NC8.

Brought up, read the First and Second time, and added to the Bill.

New Clause 25

Registered societies: ordinary administration procedure etc

In section 118 of the Co-operative and Community Benefit Societies Act 2014 (power to apply provisions about company arrangements and administration to registered societies, subject to exception in subsection (3)(a) for registered providers), in subsection (3), omit paragraph (a).” —(Mr Marcus Jones.)

Section 118 of the Co-operative and Community Benefit Societies Act 2014 confers an order-making power to apply legislation about company arrangements and administration in relation to registered societies other than registered providers of social housing. This new Clause removes the exclusion in relation to registered providers of social housing.

Brought up, read the First and Second time, and added to the Bill.

New Clause 26

Amendments to housing moratorium and consequential amendments

Schedule (Amendments to housing moratorium and consequential amendments) contains amendments to do with this Chapter.”—(Mr Marcus Jones.)

Brought up, read the First and Second time, and added to the Bill.

New Clause 27

Interpretation of Chapter

‘(1) In this Chapter— In this Chapter references to the housing administrator of a registered provider—

“business”, “member”, “property” and “security” have the same meaning as in the Insolvency Act 1986;

“charitable incorporated organisation” means a charitable incorporated organisation within the meaning of Part 11 of the Charities Act 2011;

“company” means—

(a) a company registered under the Companies Act 2006, or

(b) an unregistered company;

“the court”, in relation to a company or registered society, means the court having jurisdiction to wind up the company or registered society;

“foreign company” means a company incorporated outside the United Kingdom;

“housing administration order” has the meaning given by section (Housing administration order);

“housing administration rules” means rules made under section 411 of the Insolvency Act 1986 as a result of section (Conduct of housing administration) above;

“housing administrator” has the meaning given by section (Housing administration order) and is to be read in accordance with subsection (3) below;

“financial year” means a period of 12 months ending with 31 March;

“legislation” includes provision made by or under—

(a) an Act,

(b) an Act of the Scottish Parliament,

(c) Northern Ireland legislation, or

(d) a Measure or Act of the National assembly for Wales

“objective of the housing administration” is to be read in accordance with section (Objective of a housing administration);

“private registered provider” means a private registered provider of social housing (see section 80 of the Housing and Regeneration Act 2008);

“registered provider” means a registered provider of social housing (see section 80 of the Housing and Regeneration Act 2008);

“registered society” has the same meaning as in the Co-operative and Community Benefit Societies Act 2014;

“Regulator of Social Housing” has the meaning given by section 92A of the Housing and Regeneration Act 2008;

“Scottish firm” means a firm constituted under the law of Scotland;

“UK affairs, business and property”, in relation to a company, means—

(a) its affairs and business so far as carried on in the United Kingdom, and

(b) its property in the United Kingdom;

“unregistered company” means a company that is not registered under the Companies Act 2006.

(a) include a person appointed under paragraph 91 or 103 of Schedule B1 to the Insolvency Act 1986, as applied by Part 1 of Schedule (Conduct of housing administration) to this Act or regulations under section (Conduct of housing administration etc), to be the housing administrator of the registered provider, and

(b) if two or more persons are appointed as the housing administrator of the registered provider, are to be read in accordance with the provision made under section (Housing administrators).

(2) References in this Chapter to a person qualified to act as an insolvency practitioner in relation to a registered provider are to be read in accordance with Part 13 of the Insolvency Act 1986, but as if references in that Part to a company included a company registered under the Companies Act 2006 in Northern Ireland.

(3) For the purposes of this Chapter an application made to the court is outstanding if it—

(a) has not yet been granted or dismissed, and

(b) has not been withdrawn.

(4) An application is not to be taken as having been dismissed if an appeal against the dismissal of the application, or a subsequent appeal, is pending.

(5) An appeal is to be treated as pending for this purpose if—

(a) an appeal has been brought and has not been determined or withdrawn,

(b) an application for permission to appeal has been made but has not been determined or withdrawn, or

(c) no appeal has been brought and the period for bringing one is still running.

(6) References in this Chapter to a provision of the Insolvency Act 1986 (except the references in subsection (2) above)—

(a) in relation to a company, are to that provision without the modifications made by Part 1 of Schedule (Conduct of housing administration etc) to this Act,

(b) in relation to a registered society, are to that provision as it applies to registered societies otherwise than by virtue of regulations under section (Conduct of housing administration etc) (if at all), and

(c) in relation to a charitable incorporated organisation, are to that provision as it applies to charitable incorporated organisations otherwise than by virtue of regulations under section (Conduct of housing administration etc) (if at all).” —(Mr Marcus Jones.)

See Member’s explanatory statement for NC8.

Brought up, read the First and Second time, and added to the Bill.

New Clause 28

Application of Part to Northern Ireland

‘(1) This section makes provision about the application of this Chapter to Northern Ireland.

(2) Any reference to any provision of the Insolvency Act 1986 is to have effect as a reference to the corresponding provision of the Insolvency (Northern Ireland) Order 1989.

(3) Section (Interpretation of Part)(3) is to have effect as if the reference to Northern Ireland were to England and Wales or Scotland.” —(Mr Marcus Jones.)

See Member’s explanatory statement for NC8.

Brought up, read the First and Second time, and added to the Bill.

New Schedule 2

Conduct of housing administration: companies

Part 1

Modifications of Schedule B1 to the Insolvency Act 1981

Introductory

1 (1) The applicable provisions of Schedule B1 to the Insolvency Act 1986 are to have effect in relation to a housing administration order that applies to a company as they have effect in relation to an administration order under that Schedule applies to a company, but with the modifications set out in this Part of this Schedule.

(2) The applicable provisions of Schedule B1 to the Insolvency Act 1986 are—

(a) paragraphs 1, 40 to 49, 54, 59 to 68, 70 to 75, 79, 83 to 91, 98 to 107, 109 to 111 and 112 to 116, and

(b) paragraph 50 (until the repeal of that paragraph by Schedule 10 to the Small Business, Enterprise and Employment Act 2015 comes into force).

General modifications of the applicable provisions

2 Those paragraphs are to have effect as if—

(a) for “administration application”, in each place, there were substituted “housing administration application”,

(b) for “administration order”, in each place, there were substituted “housing administration order”,

(c) for “administrator”, in each place, there were substituted “housing administrator”,

(d) for “enters administration”, in each place, there were substituted “enters housing administration”,

(e) for “in administration”, in each place, there were substituted “in housing administration”, and

(f) for “purpose of administration”, in each place (other than in paragraph 111(1)), there were substituted “objective of the housing administration”.

Specific modifications

3 Paragraph 1 (administration) is to have effect as if—

(a) for sub-paragraph (1) there were substituted—

“(1) In this Schedule “housing administrator”, in relation to a company, means a person appointed by the court for the purposes of a housing administration order to manage its affairs, business and property.”, and

(b) in sub-paragraph (2), for “Act” there were substituted “Schedule”.

4 Paragraph 40 (dismissal of pending winding-up petition) is to have effect as if sub-paragraphs (1)(b), (2) and (3) were omitted.

5 Paragraph 42 (moratorium on insolvency proceedings) is to have effect as if sub-paragraphs (4) and (5) were omitted.

6 Paragraph 44 (interim moratorium) is to have effect as if sub-paragraphs (2) to (4), (6) and (7)(a) to (c) were omitted.

7 Paragraph 46(6) (date for notifying administrator’s appointment) is to have effect as if for paragraphs (a) to (c) there were substituted “the date on which the housing administration order comes into force”.

8 Paragraph 49 (administrator’s proposals) is to have effect as if—

(a) in sub-paragraph (2)(b) for “objective mentioned in paragraph 3(1)(a) or (b) cannot be achieved” there were substituted “objective of the housing administration should be achieved by means other than just a rescue of the company as a going concern”, and

(b) in sub-paragraph (4), after paragraph (a) there were inserted—

“(aa) to the Secretary of State and the Regulator of Social Housing,”.

9 Paragraph 54 is to have effect as if the following were substituted for it—

“54 (1) The housing administrator of a company may on one or more occasions revise the proposals included in the statement made under paragraph 49 in relation to the company.

(2) If the housing administrator thinks that a revision is substantial, the housing administrator must send a copy of the revised proposals—

(a) to the registrar of companies,

(b) to the Secretary of State and the Regulator of Social Housing,

(c) to every creditor of the company, other than an opted-out creditor, of whose claim and address the housing administrator is aware, and

(d) to every member of the company of whose address the housing administrator is aware.

(3) A copy sent in accordance with sub-paragraph (2) must be sent within the prescribed period.

(4) The housing administrator is to be taken to have complied with sub-paragraph (2)(d) if the housing administrator publishes, in the prescribed manner, a notice undertaking to provide a copy of the revised proposals free of charge to any member of the company who applies in writing to a specified address.

(5) A housing administrator who fails without reasonable excuse to comply with this paragraph commits an offence.”

10 Paragraph 60 (powers of an administrator) has effect as if after that sub-paragraph (2) there were inserted—

“(3) The housing administrator of a company has the power to act on behalf of the company for the purposes of provision contained in any legislation which confers a power on the company or imposes a duty on it.

(4) In sub-paragraph (2) “legislation” has the same meaning as in the Chapter 3A of Part 4 of the Housing and Planning Act 2015.”

11 Paragraph 68 (management duties of an administrator) is to have effect as if—

(a) in sub-paragraph (1), for paragraphs (a) to (c) there were substituted “the proposals as—

(a) set out in the statement made under paragraph 49 in relation to the company, and

(b) from time to time revised under paragraph 54,

for achieving the objective of the housing administration.”, and

(b) in sub-paragraph (3), for paragraphs (a) to (d) there were substituted “the directions are consistent with the achievement of the objective of the housing administration”.

12 Paragraph 73(3) (protection for secured or preferential creditor) is to have effect as if for “or modified” there were substituted “under paragraph 54”.

13 Paragraph 74 (challenge to administrator’s conduct) is to have effect as if—

(a) for sub-paragraph (2) there were substituted—

“(2) If a company is in housing administration, a person mentioned in sub-paragraph (2A) may apply to the court claiming that the housing administrator is acting in a manner preventing the achievement of the objective of the housing administration as quickly and efficiently as is reasonably practicable.

(2A) The persons who may apply to the court are—

(a) the Secretary of State;

(b) with the consent of the Secretary of State, the Regulator of Social Housing;

(c) a creditor or member of the company.”,

(b) in sub-paragraph (6)—

(i) at the end of paragraph (b) there were inserted “or”, and

(ii) paragraph (c) (and the “or” before it) were omitted, and

(c) after that sub-paragraph there were inserted—

“(7) In the case of a claim made otherwise than by the Secretary of State or the Regulator of Social Housing, the court may grant a remedy or relief or make an order under this paragraph only if it has given the Secretary of State or the Regulator a reasonable opportunity of making representations about the claim and the proposed remedy, relief or order.

(8) The court may grant a remedy or relief or make an order on an application under this paragraph only if it is satisfied, in relation to the matters that are the subject of the application, that the housing administrator—

(a) is acting,

(b) has acted, or

(c) is proposing to act,

in a way that is inconsistent with the achievement of the objective of the housing administration as quickly and as efficiently as is reasonably practicable.

(9) Before the making of an order of the kind mentioned in sub-paragraph (4)(d)—

(a) the court must notify the housing administrator of the proposed order and of a period during which the housing administrator is to have the opportunity of taking steps falling within sub-paragraphs (10) to (12), and

(b) the period notified must have expired without the taking of such of those steps as the court thinks should have been taken,

and that period must be a reasonable period.

(10) In the case of a claim under sub-paragraph (1)(a), the steps referred to in sub-paragraph (9) are—

(a) ceasing to act in a manner that unfairly harms the interests to which the claim relates,

(b) remedying any harm unfairly caused to those interests, and

(c) steps for ensuring that there is no repetition of conduct unfairly causing harm to those interests.

(11) In the case of a claim under sub-paragraph (1)(b), the steps referred to in sub-paragraph (9) are steps for ensuring that the interests to which the claim relates are not unfairly harmed.

(12) In the case of a claim under sub-paragraph (2), the steps referred to in sub-paragraph (9) are—

(a) ceasing to act in a manner preventing the achievement of the objective of the housing administration as quickly and as efficiently as is reasonably practicable,

(b) remedying the consequences of the housing administrator having acted in such a manner, and

(c) steps for ensuring that there is no repetition of conduct preventing the achievement of the objective of the housing administration as quickly and as efficiently as is reasonably practicable.”

14 Paragraph 75(2) (misfeasance) is to have effect as if after paragraph (b) there were inserted—

“(ba) a person appointed as an administrator of the company under the provisions of this Act, as they have effect in relation to administrators other than housing administrators,”.

15 Paragraph 79 (end of administration) is to have effect as if—

(a) for sub-paragraphs (1) and (2) there were substituted—

“(1) On an application made by a person mentioned in sub-paragraph (2), the court may provide for the appointment of a housing administrator of a company to cease to have effect from a specified time.

(2) An application may be made to the court under this paragraph—

(a) by the Secretary of State,

(b) with the consent of the Secretary of State, by the Regulator of Social Housing, or

(c) with the consent of the Secretary of State, by the housing administrator.”, and

(b) sub-paragraph (3) were omitted.

16 Paragraph 83(3) (notice to registrar when moving to voluntary liquidation) is to have effect as if after “may” there were inserted “, with the consent of the Secretary of State or of the Regulator of Social Housing,”.

17 Paragraph 84 (notice to registrar when moving to dissolution) is to have effect as if—

(a) in sub-paragraph (1), for “to the registrar of companies” there were substituted—

(a) to the Secretary of State and the Regulator of Social Housing, and

(b) if directed to do so by either the Secretary of State or the Regulator of Social Housing, to the registrar of companies.”,

(b) sub-paragraph (2) were omitted, and

(c) in sub-paragraphs (3) to (6), for “(1)”, in each place, there were substituted “(1)(b)”.

18 Paragraph 87(2) (resignation of administrator) is to have effect as if for paragraphs (a) to (d) there were substituted “by notice in writing to the court”.

19 Paragraph 89(2) (administrator ceasing to be qualified) is to have effect as if for paragraphs (a) to (d) there were substituted “to the court”.

20 Paragraph 90 (filling vacancy in office of administrator) is to have effect as if for “Paragraphs 91 to 95 apply” there were substituted “Paragraph 91 applies”.

21 Paragraph 91 (vacancies in court appointments) is to have effect as if—

(a) for sub-paragraph (1) there were substituted—

“(1) The court may replace the housing administrator on an application made—

(a) by the Secretary of State,

(b) with the consent of the Secretary of State, by the Regulator of Social Housing, or

(c) where more than one person was appointed to act jointly as the housing administrator, by any of those persons who remains in office.”

(b) sub-paragraph (2) were omitted.

22 Paragraph 98 (discharge from liability on vacation of office) is to have effect as if sub-paragraphs (2)(b) and (ba), (3) and (3A) were omitted.

23 Paragraph 99 (charges and liabilities upon vacation of office by administrator) is to have effect as if—

(a) in sub-paragraph (4), for the words from the beginning to “cessation”, in the first place, there were substituted “A sum falling within sub-paragraph (4A)”,

(b) after that sub-paragraph there were inserted—

“(4A) A sum falls within this sub-paragraph if it is—

(a) a sum payable in respect of a debt or other liability arising out of a contract that was entered into before cessation by the former housing administrator or a predecessor,

(b) a sum that must be repaid by the company in respect of a grant that was made under section (Grants and loans where housing administration order is made) of the Housing and Planning Act 2015 before cessation,

(c) a sum that must be repaid by the company in respect of a loan made under that section before cessation or that must be paid by the company in respect of interest payable on such a loan,

(d) a sum payable by the company under section (Indemnities: repayment by registered provider etc) of that Act in respect of an agreement to indemnify made before cessation, or

(e) a sum payable by the company under section (Guarantees: repayment by registered provider etc) of that Act in respect of a guarantee given before cessation.”, and

(c) in sub-paragraph (5), for “(4)” there were substituted “(4A)(a)”.

24 Paragraph 100 (joint and concurrent administrators) is to have effect as if sub-paragraph (2) were omitted.

25 Paragraph 101(3) (joint administrators) is to have effect as if after “87 to” there were inserted “91, 98 and”.

26 Paragraph 103 (appointment of additional administrators) is to have effect as if—

(a) in sub-paragraph (2) the words from the beginning to “order” were omitted and for paragraph (a) there were substituted—

(a) the Secretary of State,

(aa) the Regulator of Social Housing, or”,

(b) after that sub-paragraph there were inserted—

“(2A) The consent of the Secretary of State is required for an application by the Regulator of Social Housing for the purposes of sub-paragraph (2).”, and

(c) sub-paragraphs (3) to (5) were omitted.

27 Paragraph 106(2) (penalties) is to have effect as if paragraphs (a), (b), (f), (g), (i) and (l) to (n) were omitted.

28 Paragraph 109 (references to extended periods) is to have effect as if “or 108” were omitted.

29 Paragraph 111 (interpretation) is to have effect as if—

(a) in sub-paragraph (1), the definitions of “correspondence”, “holder of a qualifying floating charge”, “the purpose of administration” and “unable to pay its debts” were omitted,

(b) in that sub-paragraph, at the appropriate places were inserted—

““company” and “court” have the same meaning as in Chapter 3A of Part 4 of the Housing and Planning Act 2015,”,

““housing administration application” means an application to the court for a housing administration order under Chapter 3A of Part 4 of the Housing and Planning Act 2015;”,

““housing administration order” has the same meaning as in Chapter 3A of Part 4 of the Housing and Planning Act 2015;”,

““objective”, in relation to a housing administration, is to be read in accordance with section (Objective of housing administration) of the Housing and Planning Act 2015,”, and

““prescribed” means prescribed by housing administration rules within the meaning of Chapter 3A of Part 4 of the Housing and Planning Act 2015.”,

(c) sub-paragraphs (1A) and (1B) were omitted, and

(d) after sub-paragraph (3) there were inserted—

“(4) For the purposes of this Schedule a reference to a housing administration order includes a reference to an appointment under paragraph 91 or 103.”

Part 2

Further modifications of Schedule B1 to Insolvency Act 1986: foreign companies

Introductory

30 (1) This Part of this Schedule applies in the case of a housing administration order applying to a foreign company.

(2) The provisions of Schedule B1 to the Insolvency Act 1986 mentioned in paragraph 1 above (as modified by Part 1 of this Schedule) have effect in relation to the company with the further modifications set out in this Part of this Schedule.

(3) The Secretary of State may by regulations amend this Part of this Schedule so as to add more modifications.

31 In paragraphs 32 to 37—

(a) the provisions of Schedule B1 to the Insolvency Act 1986 that are mentioned in paragraph 1 above are referred to as the applicable provisions, and

(b) references to those provisions, or to provisions comprised in them, are references to those provisions as modified by Part 1 of this Schedule.

Modifications

32 In the case of a foreign company—

(a) paragraphs 42(2), 83 and 84 of Schedule B1 to the Insolvency Act 1986 do not apply,

(b) paragraphs 46(4), 49(4)(a), 54(2)(a), 71(5) and (6), 72(4) and (5) and 86 of that Schedule apply only if the company is subject to a requirement imposed by regulations under section 1043 or 1046 of the Companies Act 2006 (unregistered UK companies or overseas companies), and

(c) paragraph 61 of that Schedule does not apply.

33 (1) The applicable provisions and Schedule 1 to the Insolvency Act 1986 (as applied by paragraph 60(1) of Schedule B1 to that Act) are to be read by reference to the limitation imposed on the scope of the housing administration order in question as a result of section (Housing administration order)(4) above.

(2) Sub-paragraph (1) has effect, in particular, so that—

(a) a power conferred, or duty imposed, on the housing administrator by or under the applicable provisions or Schedule 1 to the Insolvency Act 1986 is to be read as being conferred or imposed in relation to the company’s UK affairs, business and property,

(b) references to the company’s affairs, business or property are to be read as references to its UK affairs, business and property,

(c) references to goods in the company’s possession are to be read as references to goods in its possession in the United Kingdom,

(d) references to premises let to the company are to be read as references to premises let to it in the United Kingdom, and

(e) references to legal process instituted or continued against the company or its property are to be read as references to such legal process relating to its UK affairs, business and property.

34 Paragraph 41 of Schedule B1 to the Insolvency Act 1986 (dismissal of receivers) is to have effect as if—

(a) for sub-paragraph (1) there were substituted—

“(1) Where a housing administration order takes effect in respect of a company—

(a) a person appointed to perform functions equivalent to those of an administrative receiver, and

(b) if the housing administrator so requires, a person appointed to perform functions equivalent to those of a receiver,

must refrain, during the period specified in sub-paragraph (1A), from performing those functions in the United Kingdom or in relation to any of the company’s property in the United Kingdom.

(1A) That period is—

(a) in the case of a person mentioned in sub-paragraph (1)(a), the period while the company is in housing administration, and

(b) in the case of a person mentioned in sub-paragraph (1)(b), during so much of that period as is after the date on which the person is required by the housing administrator to refrain from performing functions.”, and

(b) sub-paragraphs (2) to (4) were omitted.

35 Paragraph 43(6A) of Schedule B1 to the Insolvency Act 1986 (moratorium on appointment to receiverships) is to have effect as if for “An administrative receiver” there were substituted “A person with functions equivalent to those of an administrative receiver”.

36 Paragraph 44(7) of Schedule B1 to the Insolvency Act 1986 (proceedings to which interim moratorium does not apply) is to have effect as if for paragraph (d) there were substituted—

(d) the carrying out of functions by a person who (whenever appointed) has functions equivalent to those of an administrative receiver of the company.”

37 Paragraph 64 of Schedule B1 to the Insolvency Act 1986 (general powers of administrator) is to have effect as if—

(a) in sub-paragraph (1), after “power” there were inserted “in relation to the affairs or business of the company so far as carried on in the United Kingdom or to its property in the United Kingdom”, and

(b) in sub-paragraph (2)(b), after “instrument” there were inserted “or by the law of the place where the company is incorporated”.

Part 3

Other modifications

General modifications

38 (1) References within sub-paragraph (2) which are contained—

(a) in the Insolvency Act 1986 (other than Schedule B1 to that Act), or

(b) in other legislation passed or made before this Act,

include references to whatever corresponds to them for the purposes of this paragraph.

(2) The references are those (however expressed) which are or include references to—

(a) an administrator appointed by an administration order,

(b) an administration order,

(c) an application for an administration order,

(d) a company in administration,

(e) entering into administration, and

(f) Schedule B1 to the Insolvency Act 1986 or a provision of that Schedule.

(3) For the purposes of this paragraph—

(a) a housing administrator of a company corresponds to an administrator appointed by an administration order,

(b) a housing administration order in relation to a company corresponds to an administration order,

(c) an application for a housing administration order in relation to a company corresponds to an application for an administration order,

(d) a company in housing administration corresponds to a company in administration,

(e) entering into housing administration in relation to a company corresponds to entering into administration, and

(f) what corresponds to Schedule B1 to the Insolvency Act 1986 or a provision of that Schedule is that Schedule or that provision as applied by Part 1 of this Schedule.

39 (1) Paragraph 38, in its application to section 1(3) of the Insolvency Act 1986, does not entitle the housing administrator of an unregistered company to make a proposal under Part 1 of the Insolvency Act 1986 (company voluntary arrangements).

(2) Paragraph 38 does not confer any right under section 7(4) of the Insolvency Act 1986 (implementation of voluntary arrangements) for a supervisor of voluntary arrangements to apply for a housing administration order in relation to a company that is a private registered provider.

(3) Paragraph 38 does not apply to section 359 of the Financial Services and Markets Act 2000 (administration order).

Modifications of the Insolvency Act 1986

40 The following provisions of the Insolvency Act 1986 are to have effect in the case of any housing administration with the following modifications.

41 Section 5 (effect of approval of voluntary arrangements) is to have effect as if after subsection (4) there were inserted—

“(4A) Where the company is in housing administration, the court must not make an order or give a direction under subsection (3) unless—

(a) the court has given the Secretary of State or the Regulator of Social Housing a reasonable opportunity of making representations to it about the proposed order or direction, and

(b) the order or direction is consistent with the objective of the housing administration.

(4B) In subsection (4A) “in housing administration” and “objective of the housing administration” are to be read in accordance with Schedule B1 to this Act, as applied by Part 1 of Schedule (Conduct of housing administration: companies) to the Housing and Planning Act 2015.”

42 Section 6 (challenge of decisions in relation to voluntary arrangements) is to have effect as if—

(a) in subsection (2), for “this section” there were substituted “subsection (1)”,

(b) after that subsection there were inserted—

“(2AA) Subject to this section, where a voluntary arrangement in relation to a company in housing administration is approved at the meetings summoned under section 3, an application to the court may be made—

(a) by the Secretary of State, or

(b) with the consent of the Secretary of State, by the Regulator of Social Housing,

on the ground that the voluntary arrangement is not consistent with the achievement of the objective of the housing administration.”,

(c) in subsection (4), after “subsection (1)” there were inserted “or, in the case of an application under subsection (2AA), as to the ground mentioned in that subsection”, and

(d) after subsection (7) there were inserted—

“(7A) In this section “in housing administration” and “objective of the housing administration” are to be read in accordance with Schedule B1 to this Act, as applied by Part 1 of Schedule (Conduct of housing administration: companies) to the Housing and Planning Act 2015.”

43 In section 129(1A) (commencement of winding up), the reference to paragraph 13(1)(e) of Schedule B1 is to include section (Powers of court)(1)(e) of this Act.

Power to make further modifications

44 (1) The Secretary of State may by regulations amend this Part of this Schedule so as to add further modifications.

(2) The further modifications that may be made are confined to such modifications of—

(a) the Insolvency Act 1986, or

(b) other legislation passed or made before this Act that relate to insolvency or make provision by reference to anything that is or may be done under the Insolvency Act 1986,

as the Secretary of State considers appropriate in relation to any provision made by or under this Chapter.

Interpretation of Part 3 of Schedule

45 In this Part of this Schedule—

“administration order”, “administrator”, “enters administration” and “in administration” are to be read in accordance with Schedule B1 to the Insolvency Act 1986 (disregarding Part 1 of this Schedule), and

“enters housing administration” and “in housing administration” are to be read in accordance with Schedule B1 to the Insolvency Act 1986 (as applied by Part 1 of this Schedule).”(Mr Marcus Jones)

See Member’s explanatory statement for NC8.—

Brought up, read the First and Second time, and added to the Bill.

New Schedule 3

Amendments to housing moratorium and consequential amendments

“1 The Housing and Regeneration Act 2008 is amended as follows.

2 Omit section 144 (insolvency: preparatory steps notice).

3 For section 145 substitute—

“145 Moratorium

(none) A moratorium on the disposal of land by a private registered provider begins if a notice is given to the regulator under any of the following provisions of the Housing and Planning Act 2015—

(a) section (Winding-up orders)(2)(a) (notice of winding up petition);

(b) section (Voluntary winding up)(4)(a) (notice of application for permission to pass a resolution for voluntary winding up);

(c) section (Making of ordinary administration orders)(3)(a) (notice of ordinary administration application);

(d) section (Administrator appointments by creditors)(4)(a) (notice of appointment of ordinary administrator);

(e) section (Enforcement of security)(2)(a) (notice of intention to enforce security).”

4 (1) Section 146 (duration of moratorium) is amended as follows.

(2) For subsections (1) and (2) substitute—

“(1) The moratorium begins when the notice mentioned in section 145 is given.

(2) The moratorium ends when one of the following occurs—

(a) the expiry of the relevant period,

(b) the making of a housing administration order under Chapter 3A of Part 4 of the Housing and Planning Act 2015 in relation to the registered provider, or

(c) the cancellation of the moratorium (see subsection (5)).

(2A) The “relevant period” is—

(a) the period of 28 days beginning with the day on which the notice mentioned in section 145 is given, plus

(b) any period by which that period is extended under subsection (3).”

(3) Omit subsection (6).

(4) For subsection (9) substitute—

“(9) If a notice mentioned in section 145 is given during a moratorium, that does not—

(a) start a new moratorium, or

(b) alter the existing moratorium’s duration.”

5 (1) Section 147 (further moratorium) is amended as follows.

(2) In subsection (1)(b), for “step specified in section 145 is taken” substitute “notice mentioned in section 145 is given”.

(3) In subsection (2), for “step” substitute “notice”.

6 In section 154 (proposals: effect), in subsection (2), after paragraph (a) insert—

“(aa) in the case of a charitable incorporated organisation, its charity trustees (as defined by section 177 of the Charities Act 2011),”.

7 Omit section 162 (consent to company winding up).

8 Omit section 164 (consent to registered society winding up).

9 In section 275 (general interpretation), omit the definition of “working day”.

10 In section 276 (index of defined terms), omit the entry relating to “working day”.”(Mr Marcus Jones)

See Member’s explanatory statement for NC8.

Brought up, read the First and Second time, and added to the Bill.

Clause 154

Extent

Amendment made: 7, page 77, line 4, leave out “This Part extends” and insert

“Chapter 3A of Part 4 and this Part extend” .—(Mr Marcus Jones.)

This ensures that the new clauses about special administration for private registered providers etc (see Member’s explanatory statement for NC8 extend throughout the United Kingdom.

New Clause 37

Content of banning order: company involvement

“‘(1) A banning order may include provision banning the person against whom it is made from being involved in any company that carries out an activity that the person is banned by the order from carrying out.

(2) For this purpose a person is “involved” in a company if the person acts as a officer of the company or directly or indirectly takes part in or is concerned in the management of the company.”

This new Clause allows the Tribunal when making a banning order under Part 2 of the Bill to ban a person from being involved in certain companies. It is intended, in part, as an anti-avoidance measure.—(Mr Marcus Jones.)

Brought up, read the First and Second time, and added to the Bill.

Clause 13

“Banning order” and “banning order offence”

Amendment made: 12, page 9, line 12, at end insert—

“( ) See also section (Content of banning order: company involvement) (which enables a banning order to include a ban on involvement in certain companies).” —(Mr Marcus Jones.)

See Member’s explanatory statement for NC37.

Clause 16

Duration and effect of banning order

Amendments made: 13, page 10, line 24, leave out “the ban for each banned activity” and insert

“each ban imposed by the order”.

This amendment and amendment 15 ensure that the provisions of clause 16 apply to a ban on involvement in a company as envisaged by NC37.

Amendment 14, page 10, line 25, leave out “6” and insert “12”.

This amendment increases the minimum length of a ban imposed by a banning order to 12 months.

Amendment 15, page 10, line 26, leave out first “the” and insert “a”. —(Mr Marcus Jones.)

See Member’s explanatory statement for amendment 13.

Clause 21

Financial penalty for breach of banning order

Amendment made: 16, page 12, line 15, leave out “£5,000” and insert “£30,000”. —(Mr Marcus Jones.)

This increases the maximum financial penalty that may be imposed where a person has breached a banning order.

Clause 28

Power to include person convicted of banning order offence

Amendment made: 17, page 14, line 16, at end insert—

‘(1A) A local housing authority in England may make an entry in the database in respect of a person who has, at least twice within a period of 12 months, received a financial penalty in respect of a banning order offence committed at a time when the person was a residential landlord or a property agent.

(1B) A financial penalty is to be taken into account for the purposes of subsection (1A) only if the period for appealing the penalty has expired and any appeal has been finally determined or withdrawn.” —(Mr Marcus Jones.)

This extends the power to include people in the database of rogue landlords and property agents.

Clause 29

Procedure for inclusion under section 28

Amendment made: 18, page 15, line 10, at end insert

“, or

(b) received the second of the financial penalties to which the notice relates.” —(Mr Marcus Jones.)

This is consequential on amendment 17.

Clause 31

Information to be included in the database

Amendment made: 19, page 15, line 35, at end insert—

“(f) details of financial penalties that the person has received.” —(Mr Marcus Jones.)

This relates to the power to make regulations about the information that must be included in a person’s entry in the database of rogue landlords and property agents. It provides that regulations may require details of financial penalties to be included.

Clause 34

Removal or variation of entries made under section 28

Amendments made: 20, page 16, line 31, at end insert—

‘(4A) If the entry was made on the basis that the person has received two or more financial penalties and at least one year has elapsed since the entry was made, the responsible local housing authority may—

(a) remove the entry, or

(b) reduce the period for which the entry must be maintained.”

This is consequential on amendment 17.

Amendment 21, page 16, line 31, at end insert—

‘( ) The power in subsection (3), (4) or (4A) may even be used—

(a) to remove an entry before the end of the two-year period mentioned in section29(2)(b), or

(b) to reduce the period for which an entry must be maintained to less than the two-year period mentioned in section29(2)(b).” —(Mr Marcus Jones.)

Where an entry in the database of rogue landlords and letting agents is made under clause 28 it must be made for a minimum period of 2 years - see clause 29(2)(b). This amendment makes it clear that the 2-year period does not constrain the power to remove or vary an entry.

Clause 37

Use of information in database

Amendment made: 22, page 17, line 34, at end insert—

‘( ) The Secretary of State may disclose information in the database to any person if the information is disclosed in an anonymised form.

( ) Information is disclosed in an anonymised form if no individual or other person to whom the information relates can be identified from the information.” —(Mr Marcus Jones.)

This allows the Secretary of State to disclose information in the database of rogue landlords and property agents to any person if the information is disclosed in an anonymised form. This will allow it to be used for statistical or research purposes.

Clause 38

Introduction and key definitions

Amendments made: 23, page 18, line 9, leave out “in certain cases” and insert

“where a landlord has committed an offence to which this Chapter applies”.

During Public Bill Committee the Bill was amended to make it a criminal offence to breach a banning order. Changes were also made to ensure that Chapter 4 of Part 2 applies to breach of a banning order in the same way as it applies to other offences to which the Chapter applies. This amendment and amendments 24 and 25 are consequential on those changes.

Amendment 24, page 18, line 16, leave out subsection (3). —(Mr Marcus Jones.)

See Member’s explanatory statement for amendment 23.

Clause 40

Notice of intended proceedings

Amendment made: 25, page 19, line 35, leave out “breached the banning order or”. —(Mr Marcus Jones.)

See Member’s explanatory statement for amendment 23.

Clause 53

General interpretation of Part

Amendment made: 26, page 24, line 21, at end insert—

““financial penalty” means a penalty that—

(a) is imposed in respect of conduct that amounts to an offence, but

(b) is imposed otherwise than following the person’s conviction for the offence;”. —(Mr Marcus Jones.)

See Member’s explanatory statement for amendment 17.





New Clause 29

Planning applications etc: setting of fees

‘In section 303 of the Town and Country Planning Act 1990 (fees for planning applications etc), after subsection (8) insert—

“(8A) If a draft of regulations of the Secretary of State under this section would, apart from this subsection, be treated as a hybrid instrument for the purposes of the standing orders of either House of Parliament, it is to proceed in that House as if it were not a hybrid instrument.”.’—(Brandon Lewis.)

This new Clause provides that any planning fees regulations in England made under section 303 of the Town and Country Planning Act 1990 that would otherwise be subject to the hybrid procedure in Parliament will be subject to the usual affirmative procedure instead.

Brought up, and read the First time.

[Brandon Lewis]

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker]

With this it will be convenient to discuss the following:

Government new clause 30—Resolution of disputes about planning obligations.

Government new clause 31—Planning obligations and affordable housing.

Government new clause 43—Processing of planning applications by alternative providers.

Government new clause 44—Regulations under section (Processing of planning applications by alternative providers): general.

Government new clause 45—Regulations under section (Processing of planning applications by alternative providers): fees and payments.

Government new clause 46—Regulations under section (Processing of planning applications by alternative providers): information.

New clause 40—Right of appeal: local interested parties—

‘(1) Where a local planning authority does not have an up-to-date and approved local development plan meeting the requirements of Part 3 of the Planning and Compulsory Purchase Act 2004 and—

(a) grant planning permission, whether or not subject to conditions, or

(b) refuse an application for planning permission,

a local interested party may by notice appeal to the Secretary of State as if the interested party was an applicant for the purposes of section 78 of the Town and Country Planning Act 1990 (“the 1990 Act”).

(2) In determining the appeal the provisions at Part III of the 1990 Act shall apply but with the interested party or parties treated as the appellant and the applicant for planning permission treated as a party to the appeal with the same rights as an applicant appealing under section 78.

(3) Before determining an appeal under section 78 the Secretary of State shall, if the appellant, the applicant for planning permission or the local planning authority so wish, give each of them an opportunity of appearing before and being heard by a person appointed by the Secretary of State for the purpose.

(4) For the purposes of this section “local interested party” means any person who is not the applicant for permission in question and whose land, property or other interests in the locality of the development would be directly and significantly affected by the development.’

This new clause would give local interested parties a right of appeal in development control affecting their land, property or interests.

New clause 41—Right of appeal: local parish councils—

‘(1) Where a local planning authority—

(a) do not have an up-to-date and approved local development plan meeting the requirements of Part 3 of the Planning and Compulsory Purchase Act 2004, and

(b) grant permission for the development of more than 100 dwellings,

a local Parish Council may by notice appeal to the Secretary of State as if the Council were an applicant for the purposes of section 78 of the Town and Country Planning Act 1990 (“the 1990 Act”).

(2) In determining the appeal the provisions at Part III of the 1990 Act shall apply but with local Parish Council or Councils treated as the appellant and the applicant for planning permission treated as a party to the appeal with the same rights as an applicant appealing under section 78.

(3) Before determining an appeal under section 78 the Secretary of State shall, if the appellant, the applicant for planning permission or the local planning authority so wish, give each of them an opportunity of appearing before and being heard by a person appointed by the Secretary of State for the purpose.

(4) For the purposes of this section “local parish council” means a parish council—

(a) within whose boundaries all or part of the development at subsection (1) would take place,

(b) whose boundary is adjacent to the development, or

(c) would otherwise be directly and significantly affected by the development.’

This new clause would give local parish councils a right of appeal in respect of developments consisting of 100 or more dwellings.

New clause 48—Neighbourhood right of appeal—

‘(1) After section 78 of the Town and Country Planning Act 1990 (“the 1990 Act”) insert—

“78ZA A neighbourhood right of appeal

(1) Where—

(a) a planning authority grants an application for planning permission, and

(b) the application does not accord with policies in an emerging or made neighbourhood plan in which the land to which the application relates is situated, and

(c) the neighbourhood plan in subsection (1)(a) contains proposals for the provision of housing development, certain persons as specified in subsection (2) below may by notice appeal to the Secretary of State.

(2) Persons who may by notice appeal to the Secretary of State against the approval of planning permission in the circumstances specified in subsection (1) above are any parish council or neighbourhood forum by two thirds majority voting, as defined in Section 61F of the 1990 Act, whose made or emerging neighbourhood plan includes all or part of the area of land to which the application relates.

(3) In this section “emerging” means a neighbourhood plan that—

(a) has been examined,

(b) is being examined, or

(c) is due to be examined, having met the public consultation requirements necessary to proceed to this stage.”

(2) Section 79 of the 1990 Act is amended as follows—

“(a) in subsection (2), leave out “either” and after “planning authority”, insert “or the applicant (where different from the appellant)”;

(b) in subsection (6), after “the determination”, insert “(except for appeals as defined in section 78ZA and where the appellant is as defined in sub-section 78ZA(2).””

This new clause would give parish councils and neighbourhood forums rights of appeal in respect of planning permission for development that did not accord with policies in an emerging or finalised neighbourhood.

New clause 50—Minimum space standards for new dwellings—

‘In Schedule 1 Part M to the Buildings Regulations 2010, after subsection M4 insert—

“Internal Space Standards

(M5) New dwellings should meet the minimum standards for internal space set out in the National Described Space Standard, 2015.”’

The new clause would incorporate the National Described Space Standard into building regulations to ensure all new dwellings are built to meet those requirements.

New clause 51—Local Authorities and Development Control Services—

‘(1) A local planning authority may set a charging regime in relation to its development control services to allow for the cost of providing the development control service to be recouped.

(2) Such a charging regime will be subject to statutory consultation.’

The amendment would allow local authorities to develop a planning fees schedule that would enable the full costs of processing planning applications to be recovered.

New clause 57—Planning obligations: local first-time buyers—

‘(1) After section 106 of the Town and Country Planning Act 1990 (planning obligations) insert—

“106ZA Planning obligations in respect of local first-time buyers

(1) When granting planning permission under 70(1)(a), or permission in principle under 70(1A)(a), for the construction of new dwellings for sale, the local planning authority may require that a proportion of the dwellings are marketed exclusively to local first-time buyers for a specified period.

(2) The “specified period” in subsection (1) must start no earlier than six months before the new dwellings have achieved, or are likely to, practical completion.

(3) “First-time buyer” in subsection (1) has the meaning given by section 57AA(2) of the Finance Act 2003.

(4) The Secretary of State may by regulations—

(a) define the “specified period” in subsection (1),

(b) define “local” in subsection (1), and

(c) the definition “local” may vary according to specified circumstances.

(5) The regulations in subsection (4) so far as they apply to local planning authorities in Greater London will not apply to these authorities unless the Secretary of State has consulted and received the consent of the Greater London Authority.”’

This new clause would empower local planning authorities to impose a planning obligation when giving planning permission for the construction of new housing for sale requiring that a proportion of the housing is marketed exclusively to local first time buyers.

New clause 58—Planning (Listed Buildings and Conservation Areas) Act 1990: amendment—

‘(1) The Planning (Listed Buildings and Conservation Areas) Act 1990 is amended as follows—

(2) In Section 1, for subsection (3) substitute—

“(3) In considering whether to include a building, or part of a building, in a list compiled or approved under this section, the Secretary of State shall take into account—

(a) whether its exterior contributes to the architectural or historic interest of any group of buildings of which it forms part;

(b) the desirability of preserving, on the ground of its architectural or historic interest, any feature of the building consisting of a man-made object or structure fixed to the building or forming part of the land and comprised within the curtilage of the building; and

(c) the desirability of excluding specific features or structures (whether part of the building or otherwise within its curtilage) for the purposes of facilitating improvements in matters including, but not limited to, environmental performance, health and safety and cost-effective maintenance.”’

This new clause would make explicit the duties and powers of conservation and planning authorities to take account of the specific heritage priorities within a listed building’s curtilage against other considerations.

Government new schedule 4—Resolution of disputes about planning obligations: Schedule to be inserted in the Town and Country Planning Act 1990.

Amendment 74, page 51, line 21, leave out clause 111.

Amendment 100, in clause 111, page 51, line 25, leave out “land” and insert “brownfield land for housing”.

The amendment makes clear that “permission in principle” is limited to housing on brownfield land in England.

Amendment 101, page 51, line 33, at end insert—

‘( ) Criteria for permission in principle and technical details consent will be subject to consultation with local authorities.’.

The amendment would ensure that communities continue to have a say on decisions that affect them through their local planning committees and through the local plan process.

Amendment 70, page 52, line 25, leave out “not”.

The amendment would ensure that permission in principle expires when the plan is no longer relevant or has been replaced.

Amendment 102, page 52, line 38, at end insert “, where prescribed information will be subject to consultation with local planning authorities.”.

The amendment would ensure that burdens on local authorities are minimised and existing systems for collection of information are used effectively.

Amendment 71, page 53, line 1, at end insert “unless any material considerations indicate otherwise.”.

The amendment would allow local planning authorities to overturn the ‘permission in principle’ decision where important material considerations which the plan making stage did not reveal have come to light.

Amendment 72,  page 53, line 18, after “period”, insert “and in any event no longer than five years”.

The amendment would create certainty for communities and developers and contributes to reducing ‘permission in principle’ by using for land speculation and land banking.

Amendment 103, in clause 112, page 54, line 27 [], at end insert “and in particular the achievement of sustainable development and good design;”.

The amendment would place a high level obligation on the face of the Bill to ensure brownfield land contributes to sustainable places.

Amendment 80, in clause 115, page 56, line 7, after “financial”, insert “costs and”.

This amendment would require information about costs as well as benefits to be included in certain planning reports.

Amendment 81, page 56, line 15, after “financial”, insert “costs and”.

See amendment 80.

Amendment 82, page 56, line 23, after “financial”, insert “cost and”.

See amendment 80.

Amendment 83, page 56, line 24, at end insert “cost or”.

See amendment 80.

Amendment 84, page 56, line 26, at end insert “cost or”.

Amendment 85, page 56, line 35, after “financial”, insert “costs and”

See amendment 80.

Amendment 86, page 56, line 36, after “the”, insert “cost or”.

See amendment 80.

Amendment 87, page 56, line 38, at end insert—

“(c) provide a description of financial costs by reference to the infrastructure requirements and environmental impacts associated with an application for planning permission, and require consideration of whether these have been addressed in the development plan for the area.”.

See amendment 80.

Amendment 78, in clause 116, page 57, line 25, at end insert—

“(7A) Guidance referred to in subsection (7) must include a requirement for the developer to pay development value for land that is compulsorily purchased for housing as part of any Nationally Significant Infrastructure Project.”.

This amendment would ensure that developers who acquire land for housing developments via compulsory purchase as part of a Nationally Significant Infrastructure Project must pay the development value as if it had been acquired on the open market.

Amendment 104, in clause 118, page 58, line 40, after subsection (3) insert—

‘(4) Section 136 of the Local Government, Planning and Land Act 1980 (Objects and General Powers) is amended as follows.

(5) After subsection (2) insert—

“(2A) Corporations under this Act must contribute to the long-term sustainable development and place making of the new community.

(2B) Under this Act sustainable development and placemaking means managing the use, development and protection of land and natural resources in a way which enables people and communities to provide for their legitimate social, economic and cultural wellbeing while sustaining the potential of future generations to meet their own needs. In achieving sustainable development and placemaking, development corporations should—

(a) positively identify suitable land for development in line with the economic, social and environmental objectives so as to improve the quality of life, wellbeing and health of people and the community;

(b) contribute to the sustainable economic development of the community;

(c) contribute to the vibrant cultural and artistic development of the community;

(d) protect and enhance the natural and historic environment;

(e) contribute to mitigation and adaptation to climate change in line with the objectives of the Climate Change Act 2008;

(f) positively promote high quality and inclusive design;

(g) ensure that decision-making is open, transparent, participative and accountable; and

(h) ensure that assets are managed for long-term interest of the community.”

(6) Section 4 of the New Towns Act 1981 (The Objects and General Powers of Development Corporations) is amended as follows.

(7) For subsection (1) substitute—

“(1) The objects of a development corporation established for the purpose of a new town or garden city shall be to secure the physical laying out of infrastructure and the long-term sustainable development and place making of the new community.

(1A) Under this Act sustainable development and place making means managing the use, development and protection of land and natural resources in a way which enables people and communities to provide for their legitimate social, economic and cultural wellbeing while sustaining the potential of future generations to meet their own needs. In achieving sustainable development, development corporations should—

(a) positively identify suitable land for development in line with the economic, social and environmental objectives so as to improve the quality of life, wellbeing and health of people and the community;

(b) contribute to the sustainable economic development of the community;

(c) contribute to the vibrant cultural and artistic development of the community;

(d) protect and enhance the natural and historic environment;

(e) contribute to mitigation and adaptation to climate change in line with the objectives of the Climate Change Act 2008;

(f) positively promote high quality and inclusive design;

(g) ensure that decision-making is open, transparent, participative and accountable; and

(h) ensure that assets are managed for long-term interest of the community.”’

The amendment would insert placemaking objectives for both UDC’s in Local Government Act 1980 and for New Town Development Corporations in the New Towns Act 1981 and sets out an ambitious high quality purpose for making the development of scale growth.

Government amendment 10.

Government amendment 75.

Government new clause 32—Engagement with public authorities in relation to proposals to dispose of land.

Government new clause 33—Duty of public authorities to prepare report of surplus land holdings.

Government new clause 34—Power to direct bodies to dispose of land.

Government new clause 35—Reports on improving efficiency and sustainability of buildings owned by local authorities.

Government new clause 36—Reports on improving efficiency and sustainability of buildings in military estate.

New clause 49—Power to direct—

‘The Secretary of State shall define in regulation powers for local planning authorities to direct the use of underused, un-used or otherwise available publicly-owned land in a local area to support redevelopment or regeneration as outlined in a local development plan.’

The clause would give councils the power of direction on publicly-owned land to enable it to be brought forward more quickly to support redevelopment or regeneration opportunities.

Government new schedule 5—Authorities specified for purposes of section (Reports on buildings owned by local authorities and others).

Government amendment 8.

[Brandon Lewis]

New clause 29 allows the Secretary of State to make regulations via the affirmative procedure about the fees to be paid by applicants when they make planning applications. New clause 30 and new schedule 4 set out a dispute resolution process to speed up section 106 negotiations in order to help housing starts to proceed more quickly. They provide for a person to be appointed to help resolve outstanding issues in relation to section 106 planning obligations. The new process will also apply only in situations where the local planning authority would be likely to grant planning permission if satisfactory planning obligations were entered into, ensuring that we only target sites where prolonged negotiations could stall development.

After the appointed person issues their report on that mechanism, the parties will still be free to agree their own terms if they do not agree with the report, but only if they do so quickly. We want to encourage the parties to tie up their loose ends quickly. We are consulting on the finer detail of the process and we will bring forward regulations in due course.

New clause 31 seeks to provide the Secretary of State with a power to restrict the enforcement of planning obligations in relation to affordable housing in certain situations. We have included a definition of affordable housing that includes starter homes. These changes will support house building. We will be consulting on how to use that power, and measures will be introduced through regulations.

New clauses 32 to 36 and new schedule 5 are designed to ensure that public sector bodies make efficient use of their land and buildings as part of their duty to deliver the best value for the taxpayer. I want to thank my right hon. Friend the Minister for the Cabinet Office and Paymaster General for his excellent work on those amendments.

New clause 32 requires Ministers of the Crown, and any public bodies added through regulations, to engage with other relevant public bodies when developing proposals to dispose of land. That duty was inspired by local authorities who have experienced varying levels of engagement, ranging from excellent to none at all. It will set out clearly what local authorities and other relevant bodies should expect when the Government are disposing of land.

Clause 32 will ensure that engagement takes place on an ongoing basis from the point at which proposals for disposal are being developed. The clause requires Ministers of the Crown to engage with local authorities.

New clause 33 is a transparency measure and will require public authorities to prepare and publish a report setting out details of land that is surplus to requirements and has been retained as surplus for longer than two years or, in the case of property that is wholly or mainly residential, longer than six months; and why surplus assets have not been released. Regulations will make further provision about reports, and guidance will give more detail on determining whether land is surplus.

[Alison Thewliss (Glasgow Central) (SNP)]

New clauses 32 and 33 contain references to Scotland. Will the Minister bring forward further detail on what the implications will be for Scotland and what communications he will be having with the Scottish Government on the reports that are to be produced?

[Brandon Lewis]

As I have just outlined, we will be making further provisions about the reports through regulation, and there will be guidance giving more detail. I will be happy to speak with the hon. Lady and her colleagues in the weeks ahead.

New clause 34 enables the Secretary of State to use the power to direct the disposal of land in specified circumstances. These will be set out in regulations. One such circumstance could be where land is listed in a body’s surplus land report under clause 33—for example, land that has been held surplus for longer than two years or, in the case of wholly or mainly residential land, longer than six months. The Local Government, Planning and Land Act 1980 provides important safeguards, and I want to be clear today that they will continue to apply to the new provisions.

New clauses 35 and 36 represent a significant step forward in the transparency of performance on the sustainability and efficiency of the public sector estate. They extend requirements contained in section 86 of the Climate Change Act 2008 to provide an annual report on progress made towards making the estate more efficient and sustainable. New clause 35 provides for similar reporting requirements to apply to local government in respect of each local authority’s estate. Schedule 5 sets out local authorities in England that are subject to this new duty. Applying reporting requirements to the local government estate will strengthen accountability to local taxpayers and support local government’s drive to be more efficient and make effective use of their assets, as the best local authorities are already doing.

New clause 36 mirrors the 2008 Act requirements in respect of the Ministry of Defence military estate. The inclusion of the military estate in the annual state of the estate report will bring greater transparency to that part of the Government estate and its performance in key areas. Government amendment 8 specifies that new clauses 32 and 33 extend to England, Wales and Scotland.

In Committee, I was invited by my hon. Friend the Member for Wimbledon (Stephen Hammond) to consider the potential for fast-track planning applications and having a more competitive planning process. Other hon. Friends backed that up and made similar comments. I can now say that the Government are bringing forward new clauses 43 to 46 and new clause 75 to test the benefits of introducing competition in the processing of planning applications. New clause 43 would give the Secretary of State the power, by regulation, to introduce pilot schemes for competition in the processing of applications for planning permission. It will also give him the power to designate who participates in a pilot scheme. Let me be clear: this is about competition for the processing of applications, not their determination. The democratic determination of planning applications by local planning authorities is a fundamental pillar of the planning system, and that will remain the case during any pilot schemes that the Secretary of State brings forward. Let me also be clear that new clause 43 would require that any pilot schemes brought forward by the Secretary of State will be for a limited period specified in regulations.

New clause 44 provides that regulations may set out how any pilot schemes should operate. New clause 45 provides that regulations may include provision for the setting, publishing and charging of fees by designated persons and planning authorities in the pilot areas, and for the refunding of fees in specific circumstances. It would also provide for the Secretary of State to intervene when he considers that excessive fees are being charged.

New clause 46 provides that regulations may provide for the sharing of information between designated persons and planning authorities in pilot areas, and with the Secretary of State. Amendment 75 provides that new clauses 43 to 46 come into force on Royal Assent. Those new clauses will allow us to test, in specific areas of the country and for a limited period, the benefits of allowing planning applicants to choose who processes their planning application. That will lead to a more efficient and effective planning system, better able to secure the development of the homes and other facilities that our communities need and want. Introducing choice for the applicant enables them to shop around for the services that best meet their needs. It will enable innovation in service provision, bringing new resources into the planning system and driving down costs while improving performance.

[Helen Hayes]

I am pleased to have the opportunity to speak about the planning clauses of the Bill, even at this late hour. The Bill represents a very significant rolling back of the policies of localism introduced by the last Government, who sought to give local communities more control over both planning policy and local planning decisions.

Planning is a progressive discipline. It is the mechanism we have for brokering the differences between individual interests and collective community needs, ensuring that those who profit from development contribute to meeting the needs of the communities in which they are building, and protecting the things that we hold dear—whether local heritage, natural habitats, special views or simply the character and diversity of our local high street or neighbourhood.

The Government like to blame the planning system for the failure to deliver new homes, but objective evidence suggests that it is not the right target. On planning, the Government show again and again that they have an inaccurate analysis and a long-term plan that does not work. The number of homes being granted planning permission each year is about 230,000. That does need to increase, but it is not too far off the 250,000 homes we need in order to begin to make inroads on the housing crisis.

Yet if we look at the number of homes being delivered, either by starts or completions, we see that both stand at about 130,000. Recent research by The Guardian has revealed that the nine house builders in the FTSE 100 are sitting on enough land to build 600,000 homes. Against a backdrop of increased planning consents and continued deregulation, house building starts fell by 14% between April and June of last year.

The Government’s response is to seek to deregulate the planning system further, curiously through a series of centralising measures that will take control away from local communities and make it harder—not easier—to deliver new development. At a Communities and Local Government Committee meeting before the Christmas recess, the Minister for Housing and Planning mentioned a development in his own constituency of 900 homes that is being built out over 15 years. That frustratingly slow speed of delivery has nothing to do with the local planning system and much to do with a Government who simply lack the political will to increase the rate of home building to deliver what is necessary.

The Government’s cuts to local government funding are clearly having a negative impact on planning departments across the country, and I am pleased that Ministers appear to have accepted the arguments that I and other Opposition Members made during the Bill Committee stage: that councils should be able to operate a charging regime for planning services that enables them to recover the true cost of providing the service. Subject to the detail to be set out in the regulations, that should enable councils to resource their planning departments properly, even in a context of continued cuts to their overall funding. Further, it will help to ensure that under-resourced planning departments do not present a blockage to new homes being built. It will enable applicants to be sure of receiving a good level of service and swifter decisions, and help to scale up the level of planning permissions being granted to meet the need we have for new homes.

--- Later in debate ---

[John Howell]

I will not take interventions at this late stage.

The end point is not the inspection, but the referendum. Many communities in my own constituency have started the process of producing a neighbourhood plan and for one reason or another have abandoned it along the way, in some cases fairly close to the referendum. There is many a slip before the referendum takes place and votes are counted. To take the view that emerging plans should have a greater degree of protection would sterilise a whole area from development while that neighbourhood plan was theoretically an option. Plans have a proper place and they are being followed at appeal. There are examples of front-runners in my constituency where development has been proposed that was not in accordance with the neighbourhood plan and it was rejected at appeal.

Neighbourhood plans share responsibility with the district or borough council for the development of the planning system for their location. It is not just a matter of protecting a village. It is a view of the development of the village for the future, and in my experience the planning inspectorate is fully prepared to back those plans as they proceed.

[Brandon Lewis]

This has been a worthwhile and an interesting debate. The comments of the hon. Member for City of Durham (Dr Blackman-Woods) about the amendments were a bit rich, given that we had made changes and allowed extra time in Committee for her and her colleagues, and bearing in mind that we tabled the amendments back in December. Her comments on Opposition amendments repeated conversations that we had in Committee, so I do not intend to rehearse those and detain the House further on issues that we have already discussed.

On Opposition new clause 57, I made it clear in Committee that we need a radical shift in the way the housing market supports young first-time buyers so that we do not condemn a whole generation to uncertainty and insecurity. That is why we want to see 200,000 new starter homes built over this Parliament exclusively for young first-time buyers at a minimum of a 20% discount on open market value to help them into low cost home ownership.

I thank my hon. Friend the Member for North Herefordshire (Bill Wiggin) for his contribution. I understand the points that he made and I will take them on board and review them along with my ministerial colleague, the Under-Secretary of State for Communities and Local Government, my hon. Friend the Member for Stockton South (James Wharton), who I know will be willing to meet him and interested bodies to discuss how we can take matters forward in an appropriate way.

I listened carefully to the arguments put forward by my hon. Friend the Member for Bromley and Chislehurst (Robert Neill). He is a respected former Minister in my Department with a wealth of experience and expertise. I believe that his concerns are addressed by provisions in existing legislation, but I am very willing to meet him and interested bodies, such as the CLA, to discuss making sure that the provisions in place are adequate.

I also welcome the comments from my hon. Friend the Member for Cleethorpes (Martin Vickers) and my right hon. Friend the Member for Arundel and South Downs (Nick Herbert) on ensuring that communities have a strong voice in planning. My right hon. Friend focused, in particular, on infrastructure. He is quite right to draw attention to the cost of development, so I thank him for doing so. It is right that new development should be supported by an appropriate level of infrastructure and that developers should provide support to put that in place. That is what the negotiations on section 106 and the community infrastructure levy are for. We would expect any significant infrastructure that would be needed to support a proposed new development to be a material consideration for the planning decision, and therefore covered in detail in planning reports for a local authority. We would therefore expect the costs associated with putting the necessary infrastructure in place to be covered.

I believe that the concerns expressed by my right hon. Friend the Member for Arundel and South Downs about neighbourhood plans are a clear indication of the strength of feeling that people have about ensuring that their voices are heard. I very much appreciate the intention of the amendment, as the Government place great importance on neighbourhood plans. However, I hope that I can convince him and other colleagues that these amendments are not necessary at this stage.

Neighbourhood plans give communities the power to shape the development of their area. When a neighbourhood plan is made, it becomes part of the development plan and attains the same weight in law as a local plan, as it forms the basis for decisions on planning applications. The law is clear: decisions should be made in accordance with the development plan, with material considerations taken into account. The national planning policy framework is also very clear. It states:

“Where a planning application conflicts with a neighbourhood plan that has been brought into force, planning permission should not normally be granted.”

That is well understood by local planning authorities.

I want to be clear that a “made” neighbourhood plan is a clear indication of a community’s vision for its local area, as my hon. Friend the Member for Henley (John Howell) has outlined, and it should be respected as such. I would expect local authorities and the Planning Inspectorate to give due weight to neighbourhood plans as they progress towards adoption. The NPPF itself is clear that the more advanced the plan, the greater the weight that may be given to it. Communities have their say throughout the local and neighbourhood plan-making process. Indeed, neighbourhood have the ultimate say with their referendum. Their views must be considered when decisions are taken on applications. The Bill speeds up and simplifies that neighbourhood planning process, which underlined the importance we place on it.

The system is therefore already geared towards ensuring that communities’ views are taken into account, and local authorities must respect that. If communities are concerned that their plans are not being respected as they should be, the Secretary of State has powers to intervene. I can confirm that the Secretary of State will continue to consider intervention to recover certain appeals where there is a made or submitted neighbourhood plan. I can further confirm that I intend shortly to lay a revised ministerial statement extending and confirming the current recovery criterion for a further six months. During that period, we will continue to review the measures. I hope that my hon. Friends who have spoken tonight and others who are interested will work with us and feed into that period.

The improvements that we are proposing in the Bill will strengthen and revitalise the planning system. They are a real shot in the arm, which will get new homes built with fewer quarrels and less delay. The changes that we are making will assist those who run into difficulties, for example when negotiating section 106 agreements, giving people clarity and security that homes given planning permission will actually be built, and built in good time.

We are continuing to set the bar as high as possible on how public land will be used. As the Prime Minister said on Monday, we will ensure that we get Britain building.

[Mr Betts]

Will the Minister give way?

[Brandon Lewis]

Not at this stage.

These amendment will allow us to capitalise on our progress and ensure that public sector land and the planning system is fit for the future. I hope that colleagues will reflect on these comments and not feel the need to press their amendments to a vote. I commend our new clauses to the House.

Question put and agreed to.

New clause 29 accordingly read a Second time, and added to the Bill.

New Clause 30

Resolution of disputes about planning obligations

‘(1) After section 106 of the Town and Country Planning Act 1990 (planning obligations) insert—

“106ZA   Resolution of disputes about planning obligations

Schedule 9A (resolution of disputes about planning obligations) has effect.”

(2) After Schedule 9 to that Act insert, as Schedule 9A, the Schedule set out in Schedule (Resolution of disputes about planning obligations: Schedule to be inserted in the Town and Country Planning Act 1990) to this Act.

(3) In section 106 of that Act, in subsection (1), for “and sections 106A to 106C” substitute “, sections 106A to 106C and Schedule 9A”. —(Brandon Lewis.)

This new clause inserts a new section 106ZA in the Town and Country Planning Act 1990, which gives effect to new Schedule 9A to that Act. Schedule 9A is set out in new Schedule NS4. The new Clause also makes a consequential amendment.

Brought up, read the First and Second time, and added to the Bill.

New Clause 31

Planning obligations and affordable housing

‘(1) After section 106ZA of the Town and Country Planning Act 1990 (inserted by section (Resolution of disputes about planning obligations) above) insert—

“106ZB    Enforceability of planning obligations regarding affordable housing

(1) Regulations made by the Secretary of State may impose restrictions or conditions on the enforceability of planning obligations entered into with regard to the provision of—

(a) affordable housing, or

(b) prescribed descriptions of affordable housing.

(2) Regulations under this section—

(a) may make consequential, supplementary, incidental, transitional or saving provision;

(b) may impose different restrictions or conditions (or none) depending on the size, scale or nature of the site or the proposed development to which any planning obligations would relate.

Paragraph (b) is without prejudice to the generality of section 333(2A).

(3) In this section “affordable housing” means new dwellings in England that—

(a) are to be made available for people whose needs are not adequately served by the commercial housing market, or

(b) are starter homes within the meaning of Chapter 1 of Part 1 of the Housing and Planning Act 2016 (see section 2 of that Act).

(4) “New dwelling” here means a building or part of a building that—

(a) has been constructed for use as a dwelling and has not previously been occupied, or

(b) has been adapted for use as a dwelling and has not been occupied since its adaptation.

(5) The Secretary of State may by regulations amend this section so as to modify the definition of “affordable housing”.”

(2) In section 333 of that Act (regulations and orders), after subsection (3) insert—

“(3ZA) No regulations may be made under section 106ZB unless a draft of the instrument containing the regulations has been laid before, and approved by a resolution of, each House of Parliament.”” —(Brandon Lewis.)

The section inserted in the Town and Country Planning Act 1990 by this new clause confers power to make affirmative-resolution regulations about obligations entered into under section 106 of that Act with regard to affordable housing, and defines “affordable housing” so as to include starter homes (see Chapter 1 of Part 1 of the Bill).

Brought up, read the First and Second time, and added to the Bill.



New Clause 43

Processing of planning applications by alternative providers

‘(1) The Secretary of State may by regulations make provision for a planning application 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.

(2) The regulations must provide that the option to have a planning application processed by a designated person—

(a) does not affect a local planning authority’s responsibility for determining planning applications, and

(b) applies only until a specified date.

(3) The regulations may provide that—

(a) they apply only to planning applications for development of a specified description;

(b) designations of persons by the Secretary of State (see subsection (7)) may be made so as to apply only in relation to planning applications for development of a specified description.

(4) The regulations may—

(a) apply or disapply, in relation to England, any enactment about planning;

(b) modify the effect of any such enactment in relation to England.

(5) Sections (Regulations under section (Processing of planning applications by alternative providers): general) to (Regulations under section (Processing of planning applications by alternative providers): information), which set out matters that may be included in regulations under this section, do not limit the power in section 142(5) (to make supplementary provision etc).

(6) For the purposes of this group of sections (that is, this section and sections (Regulations under section (Processing of planning applications by alternative providers): general) to (Regulations under section (Processing of planning applications by alternative providers): information)), processing a planning application means taking any action in relation to the application (other than determining it) of a kind that—

(a) might otherwise be taken by or for the responsible planning authority, and

(b) is specified in the regulations.

(7) In this group of sections “designated person” means a person—

(a) who is designated by the Secretary of State in accordance with the regulations, and

(b) whose designation has not been withdrawn in accordance with the regulations.

The Secretary of State may designate a local planning authority.

(8) In this group of sections—

“local planning authority” has the same meaning as in the Town and Country Planning Act 1990;

“planning application” means an application for planning permission under Part 3 of that Act;

“responsible planning authority”, in relation to a planning application, means the local planning authority responsible for determining the application;

“specified” means specified in regulations under this section.” —(Brandon Lewis.)

This new clause would give the Secretary of State the power, by regulations, to introduce pilot schemes for competition in the processing (but not the determining) of applications for planning permission.

Brought up, read the First and Second time, and added to the Bill.

New Clause 44

Regulations under section (Processing of planning applications by alternative providers): general

‘(1) Regulations under section (Processing of planning applications by alternative providers) may make provision—

(a) requiring a designated person to process a planning application, except in specified circumstances, if chosen to do so by an applicant;

(b) allowing a responsible planning authority to take over the processing of a planning application from a designated person in specified circumstances.

(2) The regulations may make provision about—

(a) eligibility to act as a designated person;

(b) the capacity of a local planning authority to act as a designated person;

(c) actions to be taken or procedures to be followed—

(i) by persons making planning applications,

(ii) by designated persons, or

(iii) by responsible planning authorities,

and periods within which the actions or procedures are to be taken or followed;

(d) matters to be considered by designated persons or responsible planning authorities;

(e) performance standards for designated persons;

(f) the investigation of complaints or concerns about designated persons;

(g) the circumstances in which, and the extent to which, any advice provided by a designated person to a person making a planning application is binding—

(i) on the responsible planning authority, or

(ii) on designated persons other than the one providing the advice;

(h) cases where a person ceases to be a designated person or where a designated person is unable to continue processing a planning application.

(3) The provision that may be made under subsection (2)(c) includes provision requiring a designated person to provide assistance to the responsible planning authority in connection with—

(a) any appeal against the authority’s determination of the application;

(b) any application to the court made in relation to that determination.

(4) The provision that may be made under subsection (2)(f) includes—

(a) provision about the payment of compensation;

(b) provision for a designated person to be required to indemnify the responsible authority for any compensation that the authority is required to pay;

(c) provision applying anything in Part 3 of the Local Government Act 1974 (local government administration) with or without modifications.

(5) The regulations may confer powers on the Mayor of London or the Secretary of State in cases where a direction is given under section 2A or 77 of the Town and Country Planning Act 1990 (“call-in” directions).”—(Brandon Lewis.)

This new clause provides that regulations under NC43 may provide for various matters including the actions and procedures to be followed during the pilot schemes, the eligibility of persons to act as designated persons, the setting of performance standards, and how conflicts of interest and the investigation of complaints are dealt with.

Brought up, read the First and Second time, and added to the Bill.

New Clause 45

Regulations under section (Processing of planning applications by alternative providers): fees and payments

‘(1) Regulations under section (Processing of planning applications by alternative providers) may make provision about—

(a) the setting, publication and charging of fees by designated persons or responsible planning authorities;

(b) the refunding of fees, by designated persons or responsible planning authorities, in specified circumstances.

(2) The provision that may be made under subsection (1)(a) includes provision giving power to the Secretary of State to prevent the charging of fees that he or she considers excessive.

(3) The provision that may be made under subsection (1)(b) includes provision requiring a designated person or a responsible planning authority to refund to an applicant some or all of a fee paid by the applicant to a designated person where the person or the authority fails to do a particular thing within a specified period.

(4) The regulations may authorise the making of payments by the Secretary of State to local planning authorities or designated persons.” —(Brandon Lewis.)

This new clause provides that regulations under NC43 may include provision for the setting, publishing and charging of fees by designated persons and planning authorities in pilot areas, and for the refunding of fees; it also includes power for the Secretary of State to intervene in relation to excessive fees.

Brought up, read the First and Second time, and added to the Bill.

New Clause 46

Regulations under section (Processing of planning applications by alternative providers): information

‘(1) Regulations under section (Processing of planning applications by alternative providers) may make provision—

(a) requiring responsible planning authorities to disclose information to designated persons;

(b) requiring designated persons to disclose information to responsible planning authorities or to other designated persons;

(c) restricting the uses to which information disclosed by virtue of paragraph (a) or (b) may be put;

(d) restricting further disclosure of such information.

(2) The regulations may make provision for designated persons or responsible planning authorities to be required to provide information to the Secretary of State.”—(Brandon Lewis.)

This new clause provides that regulations under NC43 may provide for information-sharing (about, for example, the planning history for land to which an application relates), may restrict uses to which shared information may be put, and may require information to be provided to the Secretary of State.

Brought up, read the First and Second time, and added to the Bill.

New Clause 57

Planning obligations: local first-time buyers

‘(1) After section 106 of the Town and Country Planning Act 1990 (planning obligations) insert—

“106ZA Planning obligations in respect of local first-time buyers

(1) When granting planning permission under 70(1)(a), or permission in principle under 70(1A)(a), for the construction of new dwellings for sale, the local planning authority may require that a proportion of the dwellings are marketed exclusively to local first-time buyers for a specified period.

(2) The “specified period” in subsection (1) must start no earlier than six months before the new dwellings have achieved, or are likely to, practical completion.

(3) “First-time buyer” in subsection (1) has the meaning given by section 57AA(2) of the Finance Act 2003.

(4) The Secretary of State may by regulations—

(a) define the “specified period” in subsection (1),

(b) define “local” in subsection (1), and

(c) the definition “local” may vary according to specified circumstances.

(5) The regulations in subsection (4) so far as they apply to local planning authorities in Greater London will not apply to these authorities unless the Secretary of State has consulted and received the consent of the Greater London Authority.”” —(Dr Blackman-Woods.)

This new clause would empower local planning authorities to impose a planning obligation when giving planning permission for the construction of new housing for sale requiring that a proportion of the housing is marketed exclusively to local first time buyers.

Brought up, and read the First time.

Question put, That the clause be read a Second time:—