Housing

Debate between Catherine West and John Healey

Tuesday 9th April 2019 Commons Chamber

[John Healey]

The Minister does himself, the Government and the Grenfell survivors a disservice when the story he tries to tell with those figures is so at odds with the experience of the people affected by the fire.

[Catherine West]

Does my right hon. Friend agree that there is a fundamental imbalance when the Persimmons of this world are gaining all the benefits of being involved in the housing market, while tenants in places such as Grenfell are getting a really rough deal?

[John Healey]

It is the most obvious sign of a broken market, when house builders are making bumper profits and bumper bonuses building homes that ordinary workers cannot afford to buy. These are the fundamental facts. These are the hard truths about the Conservatives’ record on housing, which Ministers cannot deny or disguise, and which, come the next election, the Conservative party will not be able to dodge.

Given that record over nine years, it is little wonder that, when asked, three in four people say that they believe the country has a housing crisis. They are right, of course. Everybody knows someone who cannot get the home they need or desire. They say that the crisis is getting worse, not better, and they are right. Even many Conservatives have lost faith in the free market fundamentalism about housing, because it is failing on all fronts. That is why the Conservatives have been losing the argument and have been forced to cede ground to Labour, from legislating to outlaw letting fees, to banning combustible cladding on high-rise blocks and lifting the cap on council borrowing to build new homes.

However, those are baby steps. The biggest roadblock to the radical changes needed to fix the housing crisis for millions of people is the Conservative party itself. It is largely the same ideologically inflexible Conservative culprits who are making the Prime Minister’s life so difficult over Brexit who will not countenance the Government action that is needed to deal with the other big challenges our country faces: social care, falling real wages, deep regional divides and, of course, housing. So after nine years, we must conclude that the Conservatives in government cannot fix the housing crisis, and that it will fall to a Labour Government to do that.

Here is the plan. We will build 1 million genuinely affordable homes over 10 years, the majority of which will be for social rent, with the biggest council house building programme in this country for nearly 40 years. We will reset grants for affordable housing to at least £4 billion a year. We will scrap the Conservatives’ so-called affordable rent and establish a new Labour definition linked to local incomes and not to the market. We will stop the huge haemorrhage of social rented homes by halting the right to buy and ending the Government’s forced conversions to affordable rent.

We will end rough sleeping within five years, with 8,000 new homes available to those with a history of rough sleeping and a £100 million programme for emergency winter accommodation to help to prevent people from dying on our streets. We will legislate so that renters have new rights: to indefinite tenancies; to new minimum standards; to controls on rents; and to tougher enforcement. We will give young people on ordinary incomes the home ownership hope that they deserve, with first-buy homes, with mortgage costs linked to a third of local incomes and with first dibs on new homes in their area.

Draft Client Money Protection Schemes for Property Agents (Approval and Designation of Schemes) Regulations 2018 Draft Client Money Protection Schemes for Property Agents (Requirement to Belong to a Scheme etc.) Regulations 2018

Debate between Catherine West and John Healey

Tuesday 12th June 2018 General Committees

[John Healey]

If the hon. Gentleman reads Lords Hansard from 17 March 2016, he will see that my colleague Baroness Hayter of Kentish Town, who led for Labour on the Housing and Planning Bill—as the Minister mentioned, that contains the parental provisions for the draft regulations—in pressing the case for a compulsory scheme rather than the existing voluntary scheme, cited several examples of property agents pocketing money, from landlords as well as renters, and going missing. Baroness Hayter cited six or seven obvious, recent cases, but there is a track record of hundreds of such cases in recent years, which underlines the case for the draft regulations. I encourage him to look at that debate, although the Minister may well give him other examples.

I was diverted before I had started. The Minister has introduced two draft regulations, so will she confirm which four housing regulations she will repeal? It is important for the Committee, before it approves the draft regulations, to understand the consequences for provisions or protections in other fields. If she cannot do that, will she confirm whether the Government’s policy of two out, one in for regulations, which has been their policy for several years, is still in place or whether it has been dumped?

As the Minister said, the draft regulations derive from the Housing and Planning Act 2016, which was given Royal Assent in May 2016. I happen to have led from the Front Bench the opposition, inside and outside Parliament, to that Bill. The draft regulations are, in many ways, a ghost from the past. This debate reminds me of many of the debates we had during the long proceedings on that long Bill. I am reminded, too, of the 19 defeats the Government suffered on it—double the total number of defeats on all the Bills in the previous Session. Of course, that does not count the concessions that the Government made during proceedings on the Bill, which led us to withdraw amendments that we might otherwise have pressed to votes that we might well have won.

That is the background to the draft regulations. Pressed by Labour, both in the Public Bill Committee in this place and in Committee and on Report in the other place, the Government were prepared to talk and to consider this issue further, so, although it very well might have done, it did not register as defeat No. 20.

[Catherine West (Hornsey and Wood Green) (Lab)]

Does my right hon. Friend agree that the Bill was pretty poorly put together from the start? If the Government had discussed things in more detail from the start, it might have been improved.

--- Later in debate ---

[John Healey]

I have never understood why my really talented hon. Friend hides himself away in the Whips Office. He has quite clearly demonstrated how effective he would be speaking from the Front Bench, rather than simply sitting on the Front Bench.

That was perhaps a rather long preamble. What I really want to say is that the Opposition welcome these regulations, because they cover the ground that we urged on the Government previously. In a way, they make good a gap. Solicitors, other professionals and even estate agents are required to have money protection schemes in place. We have a mandatory money protection scheme in place for renters’ tenancy deposits. The regulations are well overdue, and they are welcome because of that. Many of the better firms in the industry have backed this for some time. The Association of Residential Letting Agents, the British Property Federation, the Association of Residential Managing Agents, the ombudsman and the Housing, Communities and Local Government Committee have, for some time, all been of the view—as have the Opposition—that this is a necessary step.

In the end, the principled case for these regulations is surely that there is no real market in letting agents for renters. Renters cannot shop around for their letting agent, because they do not choose the letting agent who is responsible for the home that they rent and live in, or for the home that they want to rent; that decision is for the landlord. People have no choice about that, because they choose the property and not the letting agent. The draft regulations are a well overdue and welcome recognition of that fundamental point.

[Catherine West]

Does my right hon. Friend agree that we have a large number of cowboys in the industry? There is no other way of putting it.

[John Healey]

We do. I have been known to describe some parts of the private rented sector as the wild west, to pick up on her analogy. The draft regulations are narrow; they are a welcome but small step in a market that may leave the majority of renters satisfied at the moment, but that contains some significant rough or rogue practice. The measures will, in a small way, help to make the market fairer and better for landlords and tenants. One of the important secondary arguments in favour of these regulations is that they will clearly benefit landlords as well as tenants.