Houses in Multiple Occupation

Christopher Chope Excerpts

Thursday 18th November 2010 Westminster Hall

[Nicky Morgan]

I recognise that this is not an issue for a large number of local authorities. Submissions have been made to suggest that councils could opt out of the regulations if they do not apply to their area. The Government have decided to give local authorities the power to impose restrictions when planning permission is sought. If that is the case, my argument is that local authorities must have real power and not be open to undue financial risk. Even those of us who have not been councillors know that local planning authorities do not like to take risks. If there is any chance of a financial risk in the current financial climate, they will be reluctant to take the powers that the Government have said are on offer to plug the April order.

Finally, I will say a word about restoring balance to our local communities. It is generally accepted that when a concentration of about 20% or more of a particular group, such as students, is found in one community, the balance of that community starts to change. I have mentioned the damaging effect that that shift had on the local school, church and post office in one area of Loughborough. Long-established residents decide they want to move out and potential new permanent residents decide to stay away. I do not believe that any national or local authority wants to see that, and I certainly do not as Loughborough’s MP.

Where do we go from here? I hope that I can help the Minister by offering a few constructive thoughts. First, the explanatory memorandum for the October orders states that the policy changes are to be reviewed in October 2013 to consider their impact and the extent to which the objectives have been achieved. It states that arrangements are in place to allow a systematic collection of monitoring information for future policy reviews. In annexe 1, the post implementation review plan is helpfully set out in detail. I agree that it is important to check what impact the changes are having. Will the Minister confirm that the review will take place and say what arrangements are in place to allow for the collection of that monitoring information?

Secondly, I hope that the Minister will pass on to the Minister for Housing and Local Government that since July, I have received more requests for him to visit Loughborough. Indeed, more constituents have requested him than have requested the Prime Minister. Please will the Minister or his colleague agree to visit Loughborough to see for themselves why local residents and the council are so concerned about this issue?

Thirdly, anecdotal evidence in Loughborough suggests that, as a result of the university having built much more on-campus accommodation, demand for houses in certain streets might be beginning to fall. Is there a way that the Department could work with local councils and communities to restore balance to such areas and to create more sustainable communities?

The Department recently announced a consultation on the new homes bonus. One of the questions is whether the bonus should be extended if empty properties are brought back into use. Would the Government consider whether the scheme or some other incentive could be extended to properties that can be used by families or other long-term residents, rather than sitting empty because the demand for them as student lets is shrinking?

In particular, many of my residents are concerned that, because students do not pay council tax, no council tax is received in respect of HMOs occupied solely by students. I agree that that is a whole other debate, for another day, but some form of financial incentive for restoring balance to local communities might be welcomed by local authorities and, indeed, actively sought in difficult financial times.

The idea of empowering local residents and the council to take direct action in specifically affected areas is right, but the powers must be real and capable of being exercised without opening local authorities to undue financial risk that would stop them taking those powers. This is also an opportunity to empower communities to put right some of the damage done—the imbalance caused by the rapid proliferation of HMOs in towns such as Loughborough. I look forward to hearing the Minister’s comments.

[Mr Christopher Chope (in the Chair)]

Before calling the next speaker, may I say that there is a lot of interest in the debate? If I call the first Front-Bench speaker at 5.10 pm, that leaves only half an hour to fit everyone else in, so I hope that people will keep their remarks appropriately brief.

--- Later in debate ---

[Mr Christopher Chope (in the Chair)]

The Front Benchers have said that they will delay speaking until 5.15 to allow Back Benchers more time. I hope that the two hon. Members will be able to share that time between them.