High Rise Social Housing: Reducing Fire Risk

Christina Rees Excerpts

Tuesday 14th September 2021 Westminster Hall

[Christina Rees (in the Chair)]

Before we begin, I encourage Members to wear masks when they are not speaking, in line with Government guidance and that of the House of Commons Commission. Please give each other and members of staff space when seated and when entering and leaving the room. Members should send their speaking notes by email to [e-mail]. Similarly, officials should communicate electronically with Ministers.

[Andy Slaughter (Hammersmith) (Lab)]

I beg to move,

That this House has considered reducing fire risk in high rise social housing.

It is a pleasure to be here under your chairship, Ms Rees, and to speak about the subject at last, because I have been trying to obtain this debate for some time. It is a shame it clashes with the Building Safety Bill evidence session, but that shows how important these issues are to the House, and they will remain so for a considerable time.

The human tragedy of the Grenfell Tower fire was apparent from the morning of 14 June 2017 as the world woke up to the horrifying images of people killed in their own homes in a particularly savage manner. Four years later, the scale and depth of that tragedy are only now being explored. The Grenfell inquiry is still years from resolution, however, interim investigations, such as the Hackitt report, have provided some clue to the comprehensive failures in the building industry. The Government have been slow to legislate, but earlier this year the Fire Safety Act 2021 was passed and Parliament is currently considering the Building Safety Bill.

Much focus has rightly been on the priorities for action, such as the removal of flammable cladding from the exterior of tall buildings and who will pay for the huge remedial costs, in particular whether the costs should fall on leaseholders given they had no knowledge of the risks they were taking on and do not have the means to meet bills that, in some cases, are higher than the price they paid for their homes. Members may wish to raise these issues and others today, but my purpose in requesting the debate was to highlight two aspects of the crisis exposed by Grenfell that have not received sufficient attention. It is not by coincidence that they both relate to social housing.

Anyone who watched Daniel Hewitt’s distressing documentary, “Surviving Squalor: Britain’s Housing Shame”, on ITV on Sunday night and saw some of the conditions social housing tenants are living in in 2021 would have been sickened by how far the sector has fallen from its post-war pride and ambition. I am sure every Member present has horror stories of neglect, under-investment and poor service to relate, but Grenfell has exposed how the failure of some Governments to invest and of some landlords to show a duty of care has become a threat not only to the quality of life of millions of tenants and leaseholders, but to life itself.

In the second part of my speech, I want to deal with the causes of fire in social housing, especially electrical fires, and why more is not being done to prevent them. First, I want to comment on the consequences for social housing landlords and tenants of the costs of undertaking fire safety works. This morning, Inside Housing—all of us, particularly the Government, should be grateful for its investigative work throughout this crisis—published a story that One Housing, one of the G15’s supersized housing associations, recorded a deficit of £25 million for the last financial year. In the same year, it spent £27.3 million on fire safety work to its stock.

Over the next five years, One Housing expects to spend £200 million on such works. Clarion, another of the G15, estimates it will spend £150 million in the next four years, and in total the 12 biggest housing associations will spend an estimated £3 billion over the next decade. Yes, that is right: 12 housing associations will spend £3 billion when the Government’s total building safety fund stands at £5 billion, and the National Housing Federation says the total bill for the sector will be £10 billion. Clarion told me that it expects to receive £5.4 million from the BSF of the £150 million it will spend. That shortfall is significant, not only for the association as a housebuilder and landlord, as we shall see, but for its leaseholders. Like most associations, it will try every other source of revenue, including builders, developers and the BSF. If all else fails, it will bill the leaseholders. Tenants lack even that mitigation; there is no BSF for them. The majority of the costs social landlords must bear will come from their existing income streams—mainly rents—or from diverting funds from other services, from repairs to new developments. Expect more Daniel Hewitt documentaries in the years ahead.

I contacted the main social landlords operating in my constituency that are tackling significant remedial works with a series of questions, including how much they were spending on remediation. The London Borough of Hammersmith and Fulham said it will apply to the BSF but

“the remainder is from the Housing Revenue Account.”

To its credit, it added that

“leaseholders are not being charged”.

Catalyst says that

“overall, we expect to invest over £109m remediating our high-rise portfolio”.

It has secured £22 million from the BSF, but will charge leaseholders where grants are not available. Shepherds Bush Housing says that

“the total cost of our building safety programme is estimated to be over £40m”.

For buildings under 18 metres, or where grant is not forthcoming, it is concerned that it may have to pass on costs to leaseholders. Notting Hill Genesis estimates a bill of £41 million for the last financial year, and will pass on costs where third-party funding is not forthcoming.

Almost every landlord said the unrecovered costs of fire safety works will impact significantly on core functions and other duties. That means fewer, slower repairs and fewer staff to manage properties and to liaise with residents. Members who already have a full inbox of housing casework will groan, as will tenants and leaseholders, at the prospect of a continued rapid decline in the resources and services available.

The most shocking effect will be on development programmes and new home building. Shelter estimates the need for 90,000 new social homes a year. Last year, 6,000 were built. Earlier this year, the Financial Times carried a report based on evidence from Clarion, Peabody, Network Homes and the L&Q group—four of the biggest landlords—that the number of affordable homes built over the next five years would fall by 40% as a direct consequence of fire safety works. Small and medium-sized associations have even less room for manoeuvre. Shepherds Bush Housing estimates a 50% cut in the development budget and less planned maintenance spend.

--- Later in debate ---

[Andy Slaughter]

I agree with my hon. Friend. We are talking about very large sums of public money, but we are also talking about both a moral duty and resolving a practical problem, which we seem to be very bad at in this country; look at the contaminated blood scandal, and how it took decades for the inquiry to take place and, hopefully, to reach an outcome. The Grenfell inquiry is under way. I hope that the Government will accept its recommendations and that they will provide a full response not only to that individual tragedy, but to the problems we are talking about today. However, there is a lot that the Government can do in the meantime. The Building Safety Bill is supposed to be a major tool in that respect, yet there are major gaps in it.

I said I would have very few questions for the Minister. The deal is that he answers them, but we will wait and see what happens. I have just one question in closing the first part of my speech. What will the Government do to prevent the effective collapse of the social housing sector as a provider of new homes? That is what we are looking at over the next five to 10 years if the full costs, apart from the small amounts that are payable from the current building safety fund, fall on to social landlords, tenants and leaseholders.

Electrical safety is an issue that has particularly concerned me for some years. Grenfell Tower, Lakanal House, Shirley Towers and Shepherd’s Court—the last in my constituency—were among the worst fires in high-rise buildings in the past 12 years. All were social housing, and the first three led to the deaths of residents or firefighters. They had something else in common: they were all caused by electrical appliances—a fridge freezer, a television, a light fitting and a tumble-dryer. That should not be a surprise. Each year in England, 54% of all household fires are caused by an electrical source of ignition. This is not unique to social housing. Private sector rental property also has a poor history of providing and maintaining safe electrical items. Fires in the home can be fatal for the people who live there, but they can quickly turn into a catastrophe when they happen in high-rise blocks.

Increasingly, hard-pressed families across the UK rely on cheap or second-hand electrical items in their homes. They seek out deals for electrical goods online. Retailers such as Amazon, eBay and Wish host independent sellers, some of which have been found to be selling fake or faulty electrical goods. Just as Grenfell exposed the poor standards of building regulation and inspection, events such as the recall of more than 5 million Whirlpool tumble-dryers have shown that consumer safety in this country is in a parlous state.

With trading standards services cut to the bone and almost no national co-ordination, in 2018, mainly as a result of the Whirlpool fiasco, the Government set up the Office for Product Safety and Standards. However, that body has a budget of only £14 million a year. In the words of the recent National Audit Office report,

“There are gaps in regulators’ powers over products sold online, local and national regulation is not well coordinated despite improvements, and the OPSS does not yet have adequate data and intelligence…Until it establishes a clear vision and plan for how to overcome the challenges facing product safety regulation and the tools and data needed to facilitate this, it will not be able to ensure the regime is sustainable and effective at protecting consumers from harm.”

That simply is not good enough. Consumers are put at risk at every point by unsafe electrical goods, and less well-off people suffer the most as they rely on cheaper models and second-hand or reconditioned equipment.

The Shepherd’s Court fire on Shepherd’s Bush Green on 19 August 2016 was caused by a Whirlpool tumble-dryer being used according to the manufacturers’ instructions, despite a serious known fault. We need better standards of manufacture. Plastic-backed fridges like the one that started the Grenfell fire had long been banned in countries such as the United States. We need registration of electrical goods to allow effective recall when faults are discovered. Typically, only about 20% of goods are recalled in that way. In the absence of those policy changes, which I am afraid the Government show no sign of making, we need regular inspection of electrical appliances.

Private tenants are protected by a legal requirement that landlords ensure all electrical items are tested for safety every five years, but social tenants are not. That needs to change. Given what I said earlier, I am not advocating inflicting additional costs on social landlords. I know from its brief for this debate that the Local Government Association is concerned about that, and thinks that the onus should lie on manufacturers. I do not disagree with that—if we manufactured safer products, we would not have so many failing inspections and so many recalls—but in the absence of that happening, the Government must support social housing providers to carry out these essential tests. They must make that a legal requirement and recognise the costs involved.

I am pleased to say that there are some positive signs here. The Housing, Communities and Local Government Committee recommended five-yearly checks in its prelegislative scrutiny of the Building Safety Bill, and the Government’s social housing White Paper last November conceded that,

“Safety measures in the social sector should be in line with the legal protections afforded to private sector tenants.”

That is all we asked, but the Government did not accept amendments to the Fire Safety Act 2021 on those lines when I proposed them in Committee. Undaunted, I introduced a presentation Bill earlier this summer—the High-rise Properties (Electrical Safety) Bill—and no doubt we will try again in the Building Safety Bill. When I say “we”, I mean in particular Electrical Safety First, which has led on this issue, but I should add my thanks more generally to the London Fire Brigade, Which?, Leigh Day Solicitors, and the all-party parliamentary groups on fire safety and rescue and on online and home electrical safety, which have also been active and vocal on many of these issues.

All I ask from the Minister today is an indication of the Government’s intent, or otherwise, on introducing electrical checks in social housing to prevent future Shepherd’s Courts or, indeed, future Grenfells.

Much more could be said about the type of modifications needed for social homes that go beyond cladding. Many tower blocks were built in the 1960s and 1970s. Social housing providers recognise that those homes must be brought up to current standards, but they need support to do that. Fire doors need to be replaced, sprinklers installed, windows inspected, fire alarm systems updated and new evacuation routes for disabled people established.

It is also important to think about the people who live in social homes across the UK. Due to the stability that social housing can provide, along with affordable rents and adaptable properties, elderly and disabled people make up a large proportion of social tenants. Evacuating a burning building is difficult enough, but for tenants across the UK who are elderly or disabled, it can become impossible.

Much social housing is overcrowded, especially in London, which is also the location of 55% of buildings over 11 metres in height. Where someone lives and who their landlord is should not be risk factors when it comes to fire safety. If the Government do not increase the building safety fund to include funding for all necessary remediations, including to social housing, the cost of such remediations will primarily fall on leaseholders and tenants, and social housing providers will be forced to use money that would have been ring-fenced for the building of new social homes.

At a time when the housing crisis is growing, it is scary to think that some of our biggest providers of social housing may not be able to afford to build homes in the future. It is clear, therefore, that the issue of fire safety in social housing is not an isolated one; it will have far-reaching consequences if we do not get this matter right.

On behalf of the tenants and leaseholders of Factory Quarter, Sharp House, Ainsworth Court, Oaklands Court, Invermead Close, Fraser Court, Kelway House, Sulgrave Gardens and many other blocks in my own constituency and many, many more around the country, I ask the Minister, and indeed the Government as a whole because this issue goes across several Departments, to ensure that we are at least moving in the right direction—that is to say, to ensure that social housing provides good quality, affordable and safe housing for people across the UK.

[Christina Rees (in the Chair)]

I do not think we need concern ourselves at the moment with time limits for speeches.

--- Later in debate ---

[Lucy Powell]

Absolutely. I was going to mention that later in my speech, but I will say it now. Evacuation plans for disabled people are pretty poor in most cases, leaving them especially vulnerable, as others have said.

At the moment, there is an absence of clear and reasonable guidance, process and professionally indemnified experts. The result is that people are standing back and letting others pay the price and take responsibility for the risk. Ultimately, that leaves leaseholders, social landlords, those in shared ownership and others with the financial responsibility and risk. It leaves them living in fear, as we have heard.

More could be done on prevention, as many hon. Members have said. We have heard that waking watch patrols have been necessary in some cases, but they are extremely expensive. The Government’s own data estimates that they cost £130,000 a year for just one building. They are supposed to be a temporary measure, but many are still trapped with them. The Government keep talking about the problems with the lack of proportionate risk and the lack of confidence in the system, but what are they actually doing about it? Perhaps we will hear a little more on that today.

There are similar issues when it comes to regulation, accountability and oversight. The Building Safety Bill, which is in Committee, will set up a new building safety regulator. That is a long-overdue and much-needed step, but there are a number of areas where it falls short. The Government have stuck to their crude height limit of 18 metres to define higher-risk buildings. They are right to say that, for buildings over 18 metres, the choice over which building control body to use leads to serious conflicts of interest. That is one of the key issues that has got us here, so why is that not the case for buildings under 18 metres, for which developers can still choose their own building control bodies?

The fire service, which we have heard much about today, used to play a much greater role in inspecting buildings. The Fire Brigades Union has raised the alarm about the fact that the building safety regulator will still be able to contract out that advice to the private sector. What are the Government proposing to do about that?

As many leaseholders and tenants have discovered in recent years, since Grenfell and before, the bodies that exist supposedly to provide recourse and accountability very rarely do, and are largely toothless and totally inadequate. Fire safety issues have shone a light on that, but yet again the Government seem incapable or unwilling to act with the necessary true leaseholder reform, and are not giving voice to tenants.

We have heard about some particular issues affecting social housing. In contrast to many private developers and freeholders, social and council housing providers were the quickest to react post Grenfell. Analysis has shown that housing associations have paid six times more than developers to remediate dangerous cladding. Given the huge profits in the private sector, it is a scandal that it is not doing more to pay for the faults it created. The Government have been incredibly slow in using the stick they kept threatening, leaving many to disappear before they are made to pay.

According to the G15—an umbrella group of the biggest housing associations in London—associations have set aside nearly £3 billion for historical remediation costs. In contrast, the UK’s largest developers have collectively set aside half a billion pounds—the difference is stark. Housing associations have warned that building safety costs will put at risk their ability to build much-needed affordable housing. With an estimated required subsidy per affordable home of £50,000, nearly £3 billion for remediation costs could mean 58,000 fewer affordable homes over the next 10 years. That is a huge number, and that is before we even get to the impact on quality and much-needed investment in existing stock and things such as the zero carbon agenda.

Housing associations and local authorities have been all but excluded from the Government’s building safety fund. To be approved, they must demonstrate that the costs would otherwise have been borne by leaseholders, which they have not been able to do in many cases. This approach is wrong, and it ultimately falls on the shoulders of tenants and potential future tenants, who will no longer be able to get social housing because the stock will diminish. We have called for a building works agency to fix this problem. Our mantra has been “assess, fix, fund and certify”; that is what needs to be done, and we need a team of experts who are given the power to do all of those things. What will the Government say about that?

Leaseholders and tenants will be shouting from the rooftops about building safety on Thursday. However, as we have seen from the excellent reporting of Dan Hewitt and “ITV News”, social tenants are often not listened to by housing providers. “Surviving Squalor” was a shocking reminder of the conditions that some people are forced to live in, their pleas for action ignored by social housing providers. It is just not acceptable. It is a mark of shame on the sector, which should be putting tenants’ experiences first, not ignoring them. If the past few months have taught us anything, it is the importance of home, and that housing is a public health issue, a mental health issue, and an economic issue, as well as a bedrock of success.

It is a shocking indictment of our country’s housing system, and the blame should be laid at the doors of some of these providers, as well as the Government. They have diminished and defunded social housing, and they have reneged on the promises made after Grenfell to bring forward legislation to provide a real voice and teeth to the views and needs of social housing tenants. When is that coming forward? We still do not know. We have been tabling amendments on this matter in the Building Safety Bill.

The building safety crisis is having a profound impact on the lives of so many, and the impact on social housing providers worsens the measly number of social homes already being built. The building safety crisis requires the serious leadership and intervention that it is not getting, and we need major reform to give tenants and leaseholders trapped in these situations a real voice, recourse and accountability. It really is about time the Government got a grip on this.

[Christina Rees (in the Chair)]

This is where I usually ask the Minister to leave a couple of minutes at the end for Andy Slaughter to wind up.