Leasehold and Freehold Reform Bill

Clive Betts Excerpts

2nd reading
Monday 11th December 2023 Commons Chamber

[Michael Gove]

I believe that it should be, and I encourage the hon. Lady’s constituents—as I am sure she has done—to be in touch with Martin Boyd’s Leasehold Advisory Service to be absolutely clear that they are getting the support they need.

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

It is a little disappointing that the Secretary of State did not refer to the Levelling Up, Housing and Communities Committee’s report of 2019. The Government, working with the APPG, have followed many of the report’s recommendations, but some of those recommendations —we will come to them later, with your permission, Mr Deputy Speaker—have not been included, so I will make just a couple of points.

The real challenge is, first, that freeholders who will not comply with any legislation, or will try to avoid it, do not reply to letters. I have exchanged information with the Minister for Housing, Planning and Building Safety on how to deal with Coppen Estates and what the penalties will be for non-compliance. Secondly, there are freeholders who seek to move the ownership of a property around in order to avoid the legislation. Why not give existing leaseholders the right of first refusal before any freehold is sold?

[Michael Gove]

I am very grateful to the hon. Gentleman and his Committee for all their work—it was discourteous of me, when running through the names of those to whom I am grateful, not to mention them. His broader point, about not just the operation of the freehold system but the way in which different aspects of the property market work, is a fair one. The use of opaque overseas entities and special purpose vehicles—the way in which ultimate beneficial ownership can be hidden—are all problems that require to be addressed. The Bill is pretty lengthy and substantial, and deals with many of the issues—I will go on to explain why we have taken the approach that we have—but there are other abuses within the property and land market system that require to be addressed, which we will address, and not just in this Parliament but after we are returned at the next general election.

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[Angela Rayner]

I absolutely agree with my hon. Friend. I am so pleased about the work he has been doing since he was elected to this place and the way in which he has been a real champion of his constituents, which they did not feel they had previously. He makes a really important point, and he is right to point out the huge problem of estate agent charges and fees. The steps the Government are taking to address the issue are welcome, of course, but we absolutely believe there is room to improve the measures in the Bill. The shadow Housing Minister, my hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook), will look to do so in Committee.

[Mr Betts]

Following on from that point, when the Select Committee looked at this issue—it is a real problem—we said that whenever a property is sold, the purchaser or leaseholder, and in some cases the freeholder, should have a right at the beginning to see precisely what the agreement was between the local authority and the developer about where responsibility for ongoing maintenance of the estate and so forth rests. Many purchasers simply do not know who to go to and who is responsible. It would be helpful if that was set out very clearly at the beginning of the purchase.

[Angela Rayner]

I absolutely agree, and I congratulate my hon. Friend on his fabulous work in this area. Transparency is incredibly important because it is the first step towards getting accountability.

We spoke before about pets—we all love our pets—and the Secretary of State has rightly protected the reasonable right of tenants to keep pets, yet it is not clear whether he intends to extend that right to leaseholders. I have seen leases that contain an outright ban, so I hope he ensures that the Bill reflects that. It is just one example of the restrictions that terms in leases increasingly impose, but I could cite many more—for example, basic modifications or decorations to flats, or the right to conduct business from home. I know that some Government Members may not be keen on working from home, but it is quite another thing to say that someone could lose their home over it. They might be more sympathetic if I point out the impact on the self-employed, who are often banned from running their own business from their own home.

There are basic principles at stake for the Opposition, and I hope the whole House can agree that people’s rights to bring up a family, to care for a loved family pet, to own and run their own business, and to pay a fair price and receive what they have paid for are basic British rights and values. The incredible thing is that they are being denied to people in their very own homes—homes that they own. That is surely at the heart of today’s debate, because for leaseholders, their flat or house is not an investment; it is their home—a place to live, to grow up, to grow old, to raise a family, to get on in life and to be part of a community. A home is more than bricks and mortar; it is about security and having power over your own life.

As a leaseholder, someone may have ownership but not control. The dream of home ownership has already slipped away from far too many, but it is less of a dream and more of a nightmare for too many who now achieve it. From what the Secretary of State has said, there is some agreement between us on the problems those people face, but the contents of the Bill do not quite match up to his sentiments or the energy that he brings to the Dispatch Box. So I hope that in winding up, the Minister will not just tell us exactly how far the Bill addresses the problems raised today but accept that we can work together in later stages to go further.

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

Generally, I welcome what is in the Bill, as does the Select Committee, based on our 2019 inquiry. It is what is not in the Bill that is disappointing—that is the difference. Let me go back to our report, which built on the work of the APPG—I congratulate the Father of the House, the hon. Member for Worthing West (Sir Peter Bottomley), and my hon. Friend the Member for Ellesmere Port and Neston (Justin Madders), who is now a shadow Minister, on their work. That report led to the work of the Competition and Markets Authority on mis-selling and the Law Commission report.

I want to go through some of the Select Committee’s recommendations and what the Government have followed through on, which we welcome. I also want to look at the matters omitted from the legislation, which could easily be added in Committee if the Government want to. Leasehold flats are more complicated, and they will probably not be added to the Bill in Committee. The Select Committee accepts the complications, particularly where properties are part commercial, part residential. However, our report was four years ago, which is a long time for the Secretary of State to work up a scheme to deal with leasehold flats, but we are not there. In the meantime, I hope that he will commit to the Committee’s recommendation for a programme of education and information for leaseholders, to ensure a better understanding of what commonhold is all about. There is a lack of understanding and information, and if we are to move to commonhold for new properties and encourage leaseholders in existing properties to convert, that programme is needed.

The legislation deals primarily with leasehold houses. We welcome the commitment to no new leasehold houses—or we will when the clauses are added to the Bill. We understand that that is for Committee. We welcome the commitment to removing onerous ground rents. The Select Committee looked in detail at the argument about the European convention on human rights.

[Mr Kevan Jones]

Does my hon. Friend agree that the Bill does not address issues associated with the growth in leasehold houses over the last few years? Earlier, I mentioned Persimmon, which has left a lot of residents with leases that include not only their own properties but common areas. Traditionally, when my hon. Friend and I were in local government, those would have been taken over by a local authority.

[Mr Betts]

There are real issues with that, which I was going to address later, but I will do so now. It is important to strengthen the right to manage, both for leaseholders and for freeholders in these estates who own the freehold of their house but not of the communal areas. I said earlier that in all property purchases where common areas remain in private ownership, there should be, at the point of purchase, a clear understanding of the agreement between the local authority and the developer about who is responsible for those common areas. In many circumstances it is simply opaque. Often, purchasers do not know who is responsible and are sent on a wild goose chase to find out once they have bought their property.

Returning to onerous ground rents, the Select Committee took counsel’s opinion, which was quite interesting, and made recommendations in paragraphs 114 to 116 of our report. There were two clear arguments why removing onerous ground rents from leases retrospectively was completely compatible with the European convention on human rights. The first, which most of us may not have thought about, is that controlling or changing rent is not confiscation of property but control of its use, so it does not conflict with the article on removing people’s property rights. Secondly, the convention includes a justification where the proposal has a wider beneficial impact on society, which can be offset against any impact on the property owner. Counsel’s opinion was that it was therefore perfectly justifiable under the European convention to remove onerous ground rents on existing properties.

[Barry Gardiner (Brent North) (Lab)]

My hon. Friend will remember that when the Labour Government overturned the case of Custins v. Hearts of Oak in 1967, they used exactly those grounds to justify doing so.

[Mr Betts]

I do remember that far back. Many will not remember the Labour Government’s ’67 reforms, but they were quite important on those grounds—absolutely.

Other good aspects of the Bill include its reducing the price of enfranchisement and trying to make it simpler. Now, I am not sure that it makes it simpler; it is still a bit complicated. In the end, it partly depends on the capitalisation rates that the Government introduce, which will determine the price. But a lot of my constituents who are leaseholders live in houses, and they often face enormous barriers to carry through the enfranchisement process. I have referred to Coppen Estates in my constituency, which is notorious for simply not replying to letters. I once got it to reply to a recorded letter at the third time of asking. Normally, it ignores everything. That is just its way of trying to hang on to its ground rents and its income from leases. How will we deal with those sorts of individuals and companies, and the fact that they transfer ownership around from one company to another?

Why is there no right of first refusal for leaseholders in the Bill? I was pleased that, some years ago, Sheffield Council agreed that when it sold freeholds, the right of first refusal would go to the leaseholder. That would be a simple reform, and I hope the Secretary of State will consider it. The improvement of the enfranchisement process to make it simpler and reduce the cost is right, but I would like further improvements to ensure that it will work.

I welcome the standardisation of service charges. One big complaint to the Committee was that leaseholders often simply do not know what they are paying and why. They cannot work out which services are supposed to be provided and which are not. That is an important step forward.

On commission fees, we heard about the £150 to change a doorbell and the £3,000 to put up a conservatory—complete rip-offs. There is no justification for them in houses in particular, and very little justification in flats. I am pleased that freeholders will now have to provide a schedule of rates that will be charged. We called for a cap on rates, which might have taken reform a little further, but at least there now has to be clarity and transparency. I also welcome the clause that means leaseholders will not end up paying for the legal and other costs of freeholders where there is any conflict or dispute.

A number of other measures have been omitted from the Bill, but they could be included very easily. The Secretary of State mentioned forfeiture. If leasehold is a feudal tenure, then forfeiture is prehistoric—it really is. If a leaseholder in a very small way fails to comply with an element of their lease, they could have the property taken off them. That is just unacceptable and unjustifiable. The Secretary of State was right in what he said. Forfeiture is not necessarily something that gets used, but the threat of its being used puts the onus on leaseholders to “behave” or do what the freeholder wants them to do. The removal of that with a simple clause would be really welcome.

[Sir Peter Bottomley]

I should have included the hon. Gentleman and the Select Committee in my thanks, and I do so belatedly. On forfeiture, we could ban it completely, although there may be times when it is necessary to have an order to sell a property to pay debts. The limit should be raised from £350 to a significant figure such as £5,000, and any remaining equity should go back to the person who owned the lease and not be pocketed by the freeholder.

[Mr Betts]

The Father of the House makes a very reasonable point. My point is simply that forfeiture is currently a blanket possibility that can apply to any breach of a lease, however minor, and non-payment of a very small amount could cost the leaseholder the total of the value of their property. That is what we have to stop.

Why do freeholders not have to join a redress scheme? The Committee called for them to be included in the redress schemes. The Secretary of State is bringing in a number of redress schemes and ombudsmen extensions, so why can freeholders not be included?

One of the big issues raised with us, where again there is a lack of transparency, is that many leaseholders have to pay into a reserve fund—a sinking fund—for their property. Can we not have some protection for those funds formally written into law? Currently, many leaseholders have no idea what the money is being spent on. There is no obligation on the freeholder to explain it and certainly no protection that funds have to be used for the purpose for which they are paid.

On mis-selling, one of the big complaints we heard when we met leaseholders—this related to houses in particular; Persimmon Homes has been mentioned, but there were other developers too—was the fact that they were being sold a leasehold as though it was the same as a freehold. The solicitors were compliant in that, because they had been recommended by the developer. Often, a bonus was thrown in: “We’ll give you new carpets in the living room if you use that solicitor.” The Competition and Markets Authority investigated at our request and said there was mis-selling, but so far nothing has been done about it. The Government have done absolutely nothing to rectify that injustice. Can we not see something on that again? I do not think that there is any great conflict across the House, or between anyone who has been involved in this matter. It is wrong—absolutely wrong. Solicitors should not be induced in this way to provide conveyancing to a purchaser, when the developer is recommending that solicitor. It simply is not right and it needs addressing.

My final point is one that we raised on the private rented reforms that the Government will hopefully pursue —and hopefully this year coming, rather than waiting any longer with regard to section 21. We have called repeatedly for a housing court. I know the Secretary of State will explain again why he does not want to do that, but I think we ought to keep asking. There are so many issues in the housing field that need a specialism, and need quick decisions and quick resolution. A housing court would be one way of doing that and of trying to improve the process.

[Stella Creasy]

One thing I think so many leaseholders find frustrating with our current court system and the first-tier tribunals is that they do not set a precedent, so even if we identify something with a freeholder who may have multiple thousands of properties, every single individual has to go through the process if they were not a party to the original case. Does my hon. Friend agree that a specialist housing court could at least have precedent built in?

[Mr Betts]

That is an extremely good point. I do not think the Select Committee actually made that point, but it adds to its recommendations in a very thoughtful and helpful way.

There are a lot of issues, and I am sure we will not resolve all of them in today’s debate, but they need to be addressed in Committee. There are reforms to the proposed legislation that could be made, most of them quite easily. The bigger issue of leasehold flats is for another day, but it ought to be kept on the agenda. I welcome what is in the Bill, which could be the basis for a much-improved piece of legislation. Perhaps we will see an improved Bill come back to us on report.

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[The Minister for Housing, Planning and Building Safety (Lee Rowley)]

It is a pleasure to wind up the debate after so many useful, thoughtful and detailed contributions. In that spirit, I want to spend a little time going through some of those details. Before doing so, I wish to thank, as so many others have, all the campaigners and all those who have spent so much time working in this area for so many years.

I thank my hon. Friend the Member for Worthing West (Sir Peter Bottomley), the hon. Member for Sheffield South East (Mr Betts), my hon. Friend the Member for Redditch (Rachel Maclean), the right hon. Member for East Ham (Sir Stephen Timms), my hon. Friend the Member for Dartford (Gareth Johnson), the hon. Member for Battersea (Marsha De Cordova), my hon. Friend the Member for Harrow East (Bob Blackman), the hon. Member for North Shropshire (Helen Morgan), my right hon. Friend the Member for Aldridge-Brownhills (Wendy Morton), the hon. Member for Brentford and Isleworth (Ruth Cadbury), my hon. Friend the Member for Cities of London and Westminster (Nickie Aiken), the hon. Member for City of Chester (Samantha Dixon), my hon. Friend the Member for North Norfolk (Duncan Baker), the hon. Member for Walthamstow (Stella Creasy), the hon. Member for Liverpool, West Derby (Ian Byrne), and all those who intervened for the helpful comments they provided.

I welcome the general and broad support for the actions that are being taken in the Bill. I also welcome the consensus in the House on the need for reform, which I know, as was highlighted several times, has been some time coming. I hope right hon. and hon. Members will recognise that this is a complicated and intricate area, which is observable not least from the many examples given in the debate. We now have in front of us a good proposition for making progress.

Our focus in the Bill is on being able to make practical progress—to make the Bill as practically useful as it can be—and then to have the greatest impact that it can have. Some, including hon. Members tonight, have said that it does not go far enough; others have said that we should return to first principles and seek to build the whole system again. I am sure that those hon. Members will make their case in Committee if they are part of it, and on Report and in subsequent stages. The Government seek to have a proposition on which can be built; one that is practical, achievable and makes a difference. The art of politics is about being able to make progress, and we think that the Bill will make a significant difference to people’s lives.

Let me turn to some comments made in the debate. I pay tribute to the long-standing work of the Father of the House, my hon. Friend the Member for Worthing West. He raised a number of points, which we will go through in more detail in Committee, but I want to highlight his point on building safety with regard to sub-11 metre properties. A number of Members made similar comments. We have a process in place, so if colleagues have concerns about fire remediation issues in sub-11 metre properties, they should ensure that they get the appropriate fire assessments needed in all buildings. If substantial works are needed to those properties, they can be raised with the Department, which has committed at this Dispatch Box and has executed commitments to look into those issues in more detail.

I pay tribute to the work of the Select Committee, chaired by my constituency neighbour, the hon. Member for Sheffield South East. I particularly enjoy our interactions on this issue because it gives me, like him, the opportunity repeatedly to say as a constituency MP how outraged I am about Coppen Estates’s consistent failure to respond. That is a hallmark of a small cohort of actors in this area, which consistently and flagrantly ignore reality and their ability to make a difference to our residents’ lives. Coppen Estates is a good example of such actors, but there are many others.

[Mr Betts]

I thank the Minister for responding to that point. Will he look at strengthening the Bill to stop companies like Coppen Estates avoiding the legislation? Strengthening the legislation is fine, and so is changing the way that enfranchisement fees are calculated so that people get a better deal, but in the end, the freeholder has to respond, which Coppen Estates refuses to do. My constituents in the Flockton estate in Sheffield have tried and failed for years to get a response. How will the legislation be strengthened to ensure that such companies respond?

[Lee Rowley]

I am very happy to look at specific issues in Committee. As the Secretary of State highlighted in his opening speech, if there are areas where we can improve the Bill, we will be happy to do so. I cannot make promises, but we are happy to look at them. The hon. Gentleman’s constituents in Sheffield, my constituents in Dronfield and constituents all across the country have similar issues to those with Coppen Estates, so I hope we will be able to make progress.

The hon. Gentleman, the hon. Member for Battersea and others rightly talked about leaseholders not knowing what they are paying for. A few weeks ago, I had the privilege of taking part in a two-hour discussion with one of the better estate managers about an issue in my constituency in Hunloke Grove. They were willing to go into detail, talk about the issues, work through and be transparent on their fees in a way that so many other managing agents are not. The importance of that came home to me in that discussion.

My hon. Friend the Member for Redditch should rightly take all the credit for where we are today. I am surfing on all her work over many months to get the Bill ready. She deserves a huge amount of credit for that. She was an exceptional Housing Minister and has made some extremely constructive comments today, which we will look at along with the similar comments from my hon. Friend the Member for North Norfolk. I can confirm that our intention is that there will be sufficient time to be clear on ground rents. As my hon. Friend the Member for Redditch rightly said, it is so important that we secure a property-owning democracy for the next generation.

I thank the right hon. Member for East Ham for making a series of important points, which I am happy to look at. The Government are happy to see whether they are possible. He made a specific point about asbestos, which we will take away and review with the detail it deserves. I look forward to the visit to Barrier Point, which I wanted to make following his correspondence. It is important that, on building safety, we look at not just the overall macro picture but individual circumstances, to see whether we can learn anything.

I am also grateful to the right hon. Member for giving me this opportunity to make the point about insurance from the Dispatch Box. I am as keen as him to see progress on insurance. I have met representatives of the insurance sector on a very regular basis in the year that I have been in post. I hope that they will hold to their intentions. They have told us that they will launch the scheme, and we are keen to see it. The Secretary of State’s further meeting this week will, I hope, enable progress.

My hon. Friend the Member for Dartford made extremely important points on estate management. He has continually articulated the challenges on a regular basis, and has been a champion on this matter. He rightly speaks of the outrages he has seen in his constituency. It is important that we respond to that as best we can.

I am grateful to my hon. Friend the Member for Harrow East for highlighting a number of the important changes that are coming. He is right that our objective is to squeeze out the bad practice in the sector. There are honourable people out there and there are honourable ways in which it is done, but where bad practice occurs it gives the entire sector a bad name. We will legislate and regulate to remove it in a proportionate way.

My hon. Friend also highlighted an example of a property that has not yet made progress on remediation, and similar examples were given by the hon. Members for Brentford and Isleworth and for Walthamstow and my hon. Friend the Member for Cities of London and Westminster. We can see significant progress. We have only recently produced a new detailed set of data covering all the funds that are open on building safety. I hope hon. Members will see the progress that has been made, but we recognise that there is more to do. The hon. Member for Walthamstow is absolutely right that there are a number of names that pop up repeatedly—for example Y&Y Management and E&M. There are many others and they should be on notice that they need to change their practices, because they are not acceptable.

Oral Answers to Questions

Clive Betts Excerpts

Monday 4th December 2023 Commons Chamber

[Jacob Young]

I am grateful to the hon. Gentleman for the work that he did following the tragic and unnecessary death of Awaab Ishak. We have tabled an amendment to the Renters (Reform) Bill to expand the decent homes standard to the private rented sector for the first time. I look forward to working with him to ensure that the Bill is in as good a state as it can be when it leaves this House.

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

The Levelling Up, Housing and Communities Committee has been taking evidence about local government finances. In the past two years, expenditure on homelessness and temporary accommodation has increased by 50%. The reality is that section 21 notices are a prime driver of that. The Renters (Reform) Bill will abolish section 21, but the Government have not yet announced a timetable for the legislation’s implementation or the abolition. The Government have said that we need court reform. I completely agree, but how was that helped by the Chancellor’s announcing in the autumn statement a freeze of the budget of the Ministry of Justice for the whole of the next Parliament?

Levelling Up

Clive Betts Excerpts

Monday 20th November 2023 Commons Chamber

[Mr Speaker]

I call the Chairman of the Select Committee.

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

The Minister has said a lot about inputs, but what is important, in the end, is outputs and the changes that are made. Will the Minister say which indicators have shown a reduction in inequality between the south-east and the north since this funding began, and in particular whether the productivity gap has reduced at all?

Finally, I am surprised there is no mention of the trailblazer projects in Manchester and Birmingham and their roll-out to the other mayoral combined authorities. I understand that they will be rolled out but with reduced powers for the rest of the combined authorities. Will the Minister tell us exactly what the situation is? Please do not ask us to wait for Wednesday’s statement. I read about it in the Financial Times on Saturday, and if the Financial Times can be told on Saturday, I am sure this House can be told today.

[Jacob Young]

I am very grateful to the Chair of the Select Committee. As I said in my statement, across all three rounds of the fund, the north-east and the north-west have received more per capita than any other region in England. He asked about the specifics on productivity improvements and so on, and I will write to him and his Committee about that. Regarding the trailblazer deals, I have not read the piece in the Financial Times, but I will do so as soon as the statement is finished. I would encourage him to wait until Wednesday.

Renters (Reform) Bill

Clive Betts Excerpts

2nd reading
Monday 23rd October 2023 Commons Chamber

[Michael Gove]

First, we will be clear that landlords cannot have blanket bans of the kind that the hon. Lady rightly draws to the House’s attention. Secondly, colleagues will declare interests, but landlords are good things. We need landlords to provide homes. It is nothing to be ashamed of to be in the business of providing a safe, warm and decent home for someone, and there is nothing wrong with people who have saved and work hard investing in property. You do not need to be Margaret Thatcher to believe that that is right.

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

The Levelling Up, Housing and Communities Committee raised the need for an effective and efficient court system to deal with such matters. Evictions will now have to go to court because they will not be automatic under section 21. Also, many more tenants may go to court over landlords refusing to do repairs, because they will no longer fear retaliatory evictions.

Officials in the Department have suggested that the delays in implementing the Bill came about because of the need to reform the courts, and that that is down to the Select Committee. As I am sure the Secretary of State is aware, the Select Committee actually recommended a specialist housing court—we did that several years ago. If the Secretary of State had agreed to that at the time, there would no longer be any need for delay. The court would be up and running, and be effective and efficient in dealing with cases in the future.

[Michael Gove]

I am grateful to the Chair of the Select Committee, but the view of the Ministry of Justice, His Majesty’s Courts and Tribunals Service and others involved in the court system is that the creation of a specialist housing court would divert resources from the effort to make the existing system work better. But good people can disagree on that point.

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[Angela Rayner]

It is absolutely right that we get into these challenges, because I do not think people feel that the current situation provides redress for the challenges they face. I hope that in Committee, the Secretary of State will listen to points made by Members across the House to ensure that people get the redress and support that they need, and that we strengthen tenants’ rights in this area.

[Mr Betts]

The Bill does not really deal with the issue of affordability at all. One of the big issues is the freezing of the local housing allowance: some 90% of properties in the private rented sector are not affordable with the amount of LHA that is payable. The Select Committee recommended that we go back to the 30% figure, as was previously the case, so could we push for that to happen? Currently, many people simply cannot afford anything at all in the private rented sector.

[Angela Rayner]

We have to get into that issue, but we also have to deal with the root cause, which is that we do not have enough adequate social housing in this country. We do not have enough housing, and that is because of 13 years of the Tories’ failure to build the housing that we need and to challenge Members on their Back Benches. The Prime Minister has failed to challenge those on his Back Benches who have delayed house building in this country when we need it so desperately.

The Secretary of State mentioned the hon. Member for Walsall North (Eddie Hughes) and the White Paper, but I am disappointed that many of the proposals in the Government’s White Paper have since been dropped. The Secretary of State said that he is open-minded, and I am glad about that, because the Bill is silent on proposals to make blanket bans on renting to families with children or those in receipt of benefits illegal. That sort of unacceptable practice must be stamped out, and I hope he will work with us to make sure the Bill does so. In the White Paper, the Government also promised to introduce the decent homes standard to give renters safer, better-value homes and remove the blight of poor-quality homes in local communities. That standard is missing from the Bill, but I did hear what the Secretary of State said in his opening remarks. I gently say to him that we cannot miss an opportunity to give private renters the protection—the long-term security and better rights and conditions—that they deserve.

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

First, I put on record that I am a vice-president of the Local Government Association.

Having considered the White Paper and then the Bill, the Select Committee welcomes in principle the proposal from the Government to abolish section 21. We heard evidence in a number of sessions from organisations such as Shelter, looking at the interests of tenants, and from the National Residential Landlords Association, and they all accepted that this was the right way to go and engaged constructively with the Select Committee on that.

People’s homes can be taken away from them just like that when they have paid their rent and observed their tenancy conditions, and in principle that simply cannot be right. When a home is taken away, people have to move somewhere else, and their children have to uproot themselves from their school and be taken to another school. Members of the family who work may have to find another job somewhere else, because their home has moved and they can no longer get to their place of employment. That simply is not right in this day and age.

We recognise as a Committee—I made this point in an intervention—that there will be added work for the justice system, because evictions will now require a decision from the courts and more tenants may feel empowered to go to the courts. I am really disappointed that the Secretary of State is not going to indicate when he thinks the reforms to the court system will be in place to allow the legislation to be enacted. I think we need assurances today about when that will be. That cannot be an excuse for delaying something that has already been delayed for far too long.

I want to point out one or two other issues. I welcome the Secretary of State’s welcome for the work that the Select Committee has done, even though his response was a little late; I accept his apology for that. We said very clearly in our report that enforcement by local authorities will be absolutely key in making these changes work. There has to be proper funding for local authorities, as the Local Government Association has said today, to enable that work to be carried out properly. We want assurances from the Secretary of State on that as well.

One of the really good ideas is the property portal, so that tenants and all of us know who the landlords are. We have suggested some changes and some improvements, on which I think the Secretary of State will come back to us, to make sure that the property portal is comprehensive. It should cover things such as when the property last had a gas safety certificate and when the electrical systems in the house were properly inspected, and information of that kind, including whether it complies with the decent homes standard. All those things are important, and tenants should be able to access that quickly. The registers should be updated and digitised, which we are encouraging the Secretary of State to do. We hope he will come back positively on that.

The cost for tenants is important. We welcome the Secretary of State’s saying that rent increases cannot take place more than once a year, but we have concerns about the overload on the tribunal system and the way that those arguments will be played out, often with the landlords having a great advantage. We are not quite sure why the Secretary of State is saying that a tenancy agreement could not have a yearly update of rents in line with inflation, with no need for argument. That is actually the case in many rent agreements now. While it has been difficult in the last couple of years with hyperinflation, historically—with inflation at about 2%—that has not been an issue and it gives some certainty to tenants. We are not sure, and we have not had an explanation, why the Government have ruled that out completely.

Coming back to the point about tenants on benefits, why can we not have a ban on landlords automatically prohibiting tenants on benefits from renting? Surely the Secretary of State should do that, and should indicate very quickly that he is prepared to accept that as an amendment to the Bill.

[Munira Wilson]

I strongly support the point that the hon. Gentleman has just made about the importance of the Government outlawing these blanket bans on renting in the private sector by those who are in receipt of benefits. I have been seeing a double whammy in that, in a constituency such as mine in Twickenham, rents have gone up by over 12% in the past year and, as he said, local housing allowance has not gone up, so people are evicted and banned from renting if they are in receipt of benefits when they try to find a new place. I pay tribute to the work of Citizens Advice Richmond, which has been running a campaign on that. We need to see the ban on such practice in place soon.

[Mr Betts]

I completely agree with those points, and I hope the Secretary of State responds positively to them. I think the situation is of real concern, and there is no reason why the ban cannot be enacted.

I have already made the point about local housing allowance. It is not part of the Secretary of State’s Department, but it is part of Government policy. It is always going to be a challenge for tenants to pay their rent in the private rented sector given the rise in rents recently, but people on the lowest incomes and on benefits are now being excluded from most properties because they simply cannot afford it, because their local housing allowance has been frozen. The LHA needs to be lifted. Even if the Secretary of State cannot say so today, I hope he is encouraging those behind the scenes who can make the changes to make them in a proper and timely way.

I have a couple of other points. Student housing is different. The difference in student housing has been recognised where it is purpose-built student housing in that it will be exempt from the ban on periodic tenancies. That is entirely sensible. Recently, we have seen some real pressures on student accommodation in some university cities. Last year, Manchester students were actually being encouraged to live in Liverpool, because there was not enough housing in Manchester for them. That is just one of a number of examples in relation to protecting the student market, including non-purpose-built accommodation.

[Michael Gove]

Briefly, I wish to declare my interest. As the parent of a daughter who is currently at Manchester University, I know exactly what the hon. Gentleman means. We will be doing everything we can.

--- Later in debate ---

[Mr Betts]

I recognise that the Secretary of State has responded to the Committee’s report, and while not allowing a complete reversal to periodic tenancies for non-purpose built student accommodation, landlords will have the right to terminate the tenancy in line with the university year—I think that is the basis of the proposal he is suggesting. That might well be a good compromise to take things forward, and I am sure the details of that will be tested further in Committee.

On the proposals for the ombudsman, the suggestion in an intervention from my right hon. Friend the Member for East Ham (Sir Stephen Timms) about having one housing ombudsman, and incorporating the private sector role into the social housing ombudsman role, is very sensible. Why do we need two separate schemes for letting agents? Why can we not have just one ombudsman covering the whole of that area? At least everyone could understand it, rather than having to think, “Which bit do I go to in order to get this grievance raised?” I hope the Secretary of State will reflect on that point, which was simply made, to ensure that the process of redressing grievances works better.

Members of the Committee welcome the basic principle of the changes proposed by the Secretary of State, and we want them to be implemented as quickly as possible. We hope he will continue to listen to those recommendations that he has not yet indicated a willingness to accept.

--- Later in debate ---

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

It is a huge pleasure to deliver the closing speech today on the Second Reading of the Government’s Renters (Reform) Bill, and I begin by thanking Members across the House for their valuable, thoughtful and knowledgeable contributions to the debate. I have enjoyed and noted the contributions from my hon. Friend the Member for Dover (Mrs Elphicke), the hon. Member for Sheffield South East (Mr Betts)—the Chair of the Select Committee —my right hon. Friend the Member for Calder Valley (Craig Whittaker), the hon. Member for Westminster North (Ms Buck), my hon. Friend the Member for Milton Keynes North (Ben Everitt), whom I thank for all his work across a range of all-party parliamentary groups, the hon. Member for Liverpool, Riverside (Kim Johnson), my hon. Friend the Member for Cheadle (Mary Robinson), the hon. Member for Sheffield Central (Paul Blomfield)—I would be very happy to meet him and his APPG—and my hon. Friend the Member for North Norfolk (Duncan Baker), who will know about all the work we are doing to help address the second home issue in his constituency. He has spoken to me about that on a number of occasions.

I also thank the hon. Member for North Shropshire (Helen Morgan) for the support from the Liberal Democrat Front Bench. I declare an interest similar to that of my right hon. Friend the Member for Gainsborough (Sir Edward Leigh), as I have four children in their 20s who are renting in London. I know at first hand of the issues that they and their friends face, and that is why I am so convinced that this Bill is the right thing to do for the next generations of our children and grandchildren.

[Mr Betts]

The Minister’s children are in their 20s, but we want to make sure that they are not in their 30s before the Bill actually comes into effect, so will she give us a clear time when the courts will be ready for the Bill to be active in the Government’s view?

[Rachel Maclean]

I will come on to that precise point, if the hon. Member will allow me.

I want to thank the hon. Member for Battersea (Marsha De Cordova), my hon. Friend the Member for Poole (Sir Robert Syms), the hon. Member for Liverpool, West Derby (Ian Byrne) and my hon. Friend the Member for Don Valley (Nick Fletcher), whom I will be happy to meet again, as requested. I also thank the hon. Member for Coventry South (Zarah Sultana), my hon. Friend the Member for Guildford (Angela Richardson) and the hon. Member for Dulwich and West Norwood (Helen Hayes). I am deeply concerned about the case she has raised with me and will continue to work with her. I thank my hon. Friend the Member for Totnes (Anthony Mangnall), the hon. Members for Stretford and Urmston (Andrew Western), for Brighton, Kemptown (Lloyd Russell-Moyle), for Blaydon (Liz Twist), for Brighton, Pavilion (Caroline Lucas) and for Putney (Fleur Anderson), and the right hon. Member for Hayes and Harlington (John McDonnell).

It is right to say at this point that we are committed to honouring the manifesto commitment that we made in 2019 to create a private rented sector that works for everyone and to level up housing quality in this country. I am grateful to all hon. and right hon. Members who continue to engage constructively with us on the provisions in the Bill so that we can deliver the change needed to create a fairer rental market for both tenants and landlords. Of course, I echo the sentiment of my right hon. Friend the Secretary of State, who said in his opening remarks that we will continue to work closely with Members to further hone and refine this legislation as it is put on the statute book.

Birmingham City Council

Clive Betts Excerpts

Tuesday 19th September 2023 Commons Chamber

[Michael Gove]

My hon. Friend makes an important point. Of course, there are real issues for Sandwell as a local authority, which is why we had to intervene there to deal with years of mismanagement, but it is also the case that council tax payers elsewhere in the west midlands must not be on the hook for failures that occurred in Birmingham. We will have some tough decisions to make. Central Government are prepared to extend additional financial support to the city, but our commissioners will, I am sure, be confronting the political leadership of Birmingham City Council with some necessarily difficult decisions, and I hope that we can take them in a constructive spirit together.

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

The Secretary of State gave a list of councils where section 114 notices had been served and commissioners had been brought in. Perhaps he can confirm that Thurrock, Woking and Northamptonshire are not Labour-controlled councils. He seemed to miss that bit out when he was justifying his attack on some councils on the basis of their being Labour-controlled.

No doubt there have been problems in all these councils, but does the Secretary of State accept there is some overarching responsibility for a Government who delivered austerity to councils—bigger cuts than in any other part of the public sector—and that while by and large local government has managed extremely well, some councils have gone over the edge? Does he also accept that other councils may now be facing the brink? He has an expert unit in his Department advising him. Can he tell us how many councils he thinks are now on the brink of section 114 notices, and what action he will take to help them in advance?

[Michael Gove]

I am always grateful to the Chairman of the Select Committee. I have already pointed out that in my statement I deliberately did not choose to make political points, but given that my wonderful shadow, the right hon. Member for Ashton-under-Lyne (Angela Rayner), did choose to insert some party political points, I thought it only appropriate for me to point out that Liverpool, Sandwell, Slough, Nottingham and Croydon had all been driven to the brink of bankruptcy by Labour leadership. It is important to give that context.

It is also important to say that while I will of course continue to fight for local government finance—and, at the last spending review, I secured the biggest increase for over a decade—it is nevertheless incumbent on elected leaders and officers to continue to deliver services efficiently. That is why our new Office for Local Government will hold councils effectively to account while also highlighting the best practice that is so widespread in local government, and which sees many councils continue to deliver high-quality services without getting into the sort of trouble that Birmingham has got into.

Nutrient Neutrality: Levelling-up and Regeneration Bill

Clive Betts Excerpts

Tuesday 5th September 2023 Commons Chamber

[Mr Speaker]

I call Clive Betts. [Interruption.]

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

I am happy to go, but the shadow Minister—

[Mr Speaker]

Oh, sorry. It has taken so long, I thought we must have moved on to Back Benchers. I call the shadow Minister.

--- Later in debate ---

[Mr Speaker]

I call the Chair of the Levelling Up, Housing and Communities Committee.

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

This is hardly a new problem, is it? The Court decision was in 2018, yet last year we had the levelling-up Bill, which was really a planning Bill with a bit of levelling up added on—no mention of the issue there. In December we had major consultations on changes to the national planning policy framework—no mention of the issue there. The Committee wrote to the Minister and asked how many more consultations on planning issues there would be this year. We were given nine of them—no mention of the issue there. If it is such a serious issue, why has it taken the Government so long to act? It looks like the Government are making it up as they go along. This is a panicked response from the Government to the collapsing numbers of housing starts which the Minister simply wants to do something—anything—about.

[Rachel Maclean]

I very much value the hon. Gentleman’s scrutiny of the Government’s record and I very much enjoy coming before his Committee. We have discussed this issue, and many others, with his Committee in the past. It is right that we are taking this action. It is a serious and complex issue, and we needed time to consider all the legal aspects of it. However, what I come back to time and time again is that we need to unblock planning permissions. We need housing all over the country. We are doing that at the same time as protecting the environment and I very much hope to have further dialogue with him about this in the future.

Oral Answers to Questions

Clive Betts Excerpts

Monday 10th July 2023 Commons Chamber

[Mr Speaker]

I call the Chair of the Select Committee.

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

I do not doubt the Minister’s good intentions on house building, but does she accept that, according to her own Department’s figures, housing starts fell by 12% year on year in the first three months of this year? That is down to a figure of just more than 37,000 starts, which is half the figure needed to hit 300,000 homes a year. On that basis, does she conclude like me that not merely is her policy not succeeding in hitting the housing targets, but it is considerably contributing to their failure?

[Rachel Maclean]

The hon. Gentleman brings his considerable knowledge to this matter, but I will take no lectures from him and the Labour party on house building. This Government delivered 242,000 houses in 2019-20—that is the highest level for more than 30 years, including the entire time that the Labour party was in government.

Oral Answers to Questions

Clive Betts Excerpts

Monday 5th June 2023 Commons Chamber

[Mr Speaker]

I call the Chair of the Levelling Up, Housing and Communities Committee.

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

The Committee recently produced a report on levelling-up funding, which I hope the Minister has had a chance to read by now. Commenting on the current arrangements, we said that despite the Government’s commitment to reducing requirements for competitive bidding, we had seen no evidence that it had yet been implemented. We were also shocked to discover that the Department did not know how many

“pots of money across Government contribute towards levelling up”.

Does the Minister accept the Committee’s finding that the policy currently lacks

“a long-term, substantive strategy and funding approach”,

and does she agree that the Government need to sort this out if levelling up is to be delivered—given that, in principle, there would probably be widespread support for that on both sides of the House?

[Dehenna Davison]

I disagree with the Select Committee Chair, in that we do have a long-term vision for levelling up. Indeed, our White Paper “Levelling Up the United Kingdom” set out our 12 core missions. I have engaged with the hon. Gentleman in the past about the funding point. I have also told the House that we will be publishing a funding simplification plan; that is coming soon, and I shall be happy to meet him to discuss it when it has been published.

Leasehold Reform

Clive Betts Excerpts

Tuesday 23rd May 2023 Commons Chamber

[Lisa Nandy]

I agree; if we could just do what we have been promising for a long time, the reality for my hon. Friend’s constituents would be transformed from one of insecurity and anxiety to one of security and the foundation of a decent life. They are lucky to have her as their Member of Parliament to fight on their behalf.

It was in 2002 that the Labour Government introduced commonhold. There were voices even then—some of them in the Chamber today—who urged us to go further and end the injustice altogether. In the decades since, there has been growing recognition on all sides of the House that action is long overdue. In 2017, the Government said that they would legislate to prohibit the creation of new residential long leases on houses, whether newly built or existing freehold houses, other than in exceptional circumstances. That commitment was repeated in the 2019 manifesto and by the former Secretary of State, the right hon. Member for Newark (Robert Jenrick), yet leaseholders were left waiting.

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

We have had a further commitment from the Government along similar lines. In response to a Select Committee report in 2019, the Government said:

“The Government agrees with the Committee that, other than in exceptional circumstances, there is no good reason for houses to be sold on a leasehold basis.”

Four years later, thousands more properties have been sold on an unacceptable basis, and the tenants, effectively, of those properties who have been left to pay exceptional costs are not able to get out of the lease without very high charges.

[Lisa Nandy]

I pay tribute to my hon. Friend for the work that his Committee has done on this issue over a long period of time. As he said, there is no reason that this should continue except for a lack of political will to do what we have all acknowledged is the right thing.

Into this absurd scenario steps the current Secretary of State. I know that the right hon. Gentleman has the right intentions—indeed, his record has been clear. On 9 June last year, he told this place:

“it is absolutely right that we end the absurd, feudal system of leasehold, which restricts people’s rights in a way that is indefensible in the 21st century.”—[Official Report, 9 June 2022; Vol. 715, c. 978.]

On 30 January this year, he said in response to a question I posed to him:

“Finally, the hon. Lady asked if we will maintain our commitment to abolish the feudal system of leasehold. We absolutely will. We will bring forward legislation shortly.”—[Official Report, 30 January 2023; Vol. 727, c. 49.]

Now, we are told that the Secretary of State was being too maximalist. We have had grumbling from Government Back Benchers that the Secretary of State is being too socialist. Downing Street has stepped in, plans are being rowed back and he is not even able to set foot in the Chamber today. It is a bit of a mess, isn’t it?

In just a few months, the Government’s whole housing policy has completely unravelled. As my hon. Friend the Member for Hornsey and Wood Green (Catherine West) said, they crashed the economy and sent mortgages through the roof. They caved in to their own Back Benchers and, in one stroke, ensured that their own housing targets were not worth the paper they were written on. That led to dozens of councils reducing or halting altogether their house building plans, and a collapse in the projected number of houses built in coming years, in the middle of a housing crisis. The Home Builders Federation warned earlier this year that new housing supply in England would soon fall to its lowest level since the second world war.

While the Government are locked in internal battles on making basic improvements for renters, their Levelling-up and Regeneration Bill—their flagship legislation that was supposed to reform an archaic planning system—is stuck in the House of Lords, where it is commonly referred to as the Christmas tree Bill, as it has so many amendments attached to it. It does make us wonder what is actually the point of this Government.

The Secretary of State was clear that he would abolish leasehold. No one thought that it would be done overnight. The Law Commission report sets out a clear road map on enfranchisement, commonhold and the right to manage. The major leasehold groups have always recognised that it would take some time to phase out this archaic system, and so have we, but there is no excuse for inaction on the manifesto commitment to end the sale of new private leasehold houses, or for delaying the start of the process of phasing out existing leasehold and making commonhold the default of the future, as my hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook) has often said.

--- Later in debate ---

[Lee Rowley]

I will give way in a moment, but will make a bit of progress first. There is broad agreement across the House, and beyond, that the situation needs to change to make home ownership fairer, easier and cheaper. That is why the Government have already taken significant steps to better protect leaseholders from unreasonable costs, and why we are committed to going further and bringing forward further leasehold reforms to strengthen transparency and accountability.

[Mr Betts]

I am pleased that the Government have good intentions, but the Select Committee’s 2019 report had 52 recommendations. The Government accepted many of them completely and said they wanted to move towards accepting others and work out how that could be done. Since 2019, which was before the last general election, what have the Government actually done? Would the Minister confirm that all they have done in practice is to bring in measures to ensure that peppercorn ground rents are charged on new leasehold houses? That is the only thing they have done, out of all the recommendations they agreed to accept four years ago.

[Lee Rowley]

I am grateful to my neighbour, the hon. Member for Sheffield South East (Mr Betts). He pre-empts a part of my speech that I will come to in a moment.

The hon. Member for Wigan indicated that we have debated the subject many times in this Chamber. That is true and there will be lots of opportunities to do that again, because we have committed to make it easier and cheaper for leaseholders to extend their lease or to buy their freehold. We will bring forward legislation to ban new residential long leases on houses. While there are still issues, I am pleased to see that the market has already responded, with only 1.4% of houses in England now being built as leasehold, compared with nearly 15% previously.

--- Later in debate ---

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

The Minister has spoken of a lot of support and commitment to doing something at some stage in the future. Why is it taking so long? The Select Committee was pleased with the Government’s response to our 2019 report. We do not always get a positive response to our reports from the Government, so we welcomed their commitment to doing so many things, without caveat, including their commitment to consider further reforms in due course.

I give credit to the all-party parliamentary group on leasehold and commonhold reform. The Father of the House—the hon. Member for Worthing West (Sir Peter Bottomley)—and my hon. Friends the Members for Ellesmere Port and Neston (Justin Madders) and for Weaver Vale (Mike Amesbury) have done a lot of work to build on that over the years, as has the Select Committee.

Why is leasehold reform taking so long? Yes, it is complicated to legislate on this issue, but in the meantime it is extremely complicated for leaseholders who face so many obstacles, particularly in buying the freehold of their property. Not only is it complicated; it is also expensive. Look at what could have been done. We could have banned leasehold for new houses. That legislation would not have been complicated, and the Government committed to doing it in response to the Select Committee’s report. Four years later, why are we still waiting?

The Select Committee also got Government agreement on further restrictions on ground rents for new properties, which was done, but why do we not have simple legislation on service charges, onerous permission rights and other conditions? The Law Commission, the APPG, the Select Committee and others have done enough work to inform the Government on how to go about this. Why has there been no progress on any of these issues?

Enfranchisement is a frustration for so many leaseholders who are trying to buy their property. The Minister mentioned Coppen Estates, which is in my constituency too. I cannot get a response from the company on behalf of my constituents until I write at least two recorded-delivery letters to a post box in a grotty property somewhere—that is how it operates. Coppen Estates does not respond, because it keeps receiving the ground rents in the meantime. Why have such companies not been legislated against so that people can buy their freehold without having to wait months, or in some cases years? I am currently dealing with dozens of constituents on the Flockton estate, none of whom has had any response from their freeholder. This is simply unacceptable, and it could have been dealt with.

Concerns have been raised with the Select Committee about the European convention on human rights and the right to private property. Very experienced counsel came before the Committee to explain how this could be done in the public interest. I do not believe the complications are so difficult that the Government cannot fix them. Why have they not legislated to give the leaseholders of houses the same right of first refusal as leaseholders of flats? That would be simple legislation. Four years later, why has it not happened? Numerous leaseholders have come to me to say they did not know that their freehold had been sold to another company—it was sold without their knowledge. Why does that happen? Legislation on a right of first refusal could have been introduced very easily.

I accept that flats are more complicated, and that the agreement of current leaseholders would be needed if we wanted to move towards a commonhold system, but the process should be simplified. The process, and commonhold itself, should be made easier. The Government have accepted the need to do that, but they have made no progress at all on commonhold in the past four years. Some cases, such as retirement properties and mixed-use properties, may be more challenging, but commonhold should be the default tenure for new properties. Why have the Government not legislated on that?

In response to our report, the Government accepted that service charges for flats should be regularised. Why do we not have legislation in place on the right to challenge onerous permission rights and other charges? We suggested the idea of a housing court, and the Government suggested bringing in a new homes ombudsman, which they are doing. A housing court could have enabled leaseholders to simply challenge any unfair practices. The current arrangements are far too complicated and expensive for people to undertake themselves.

The Select Committee also suggested a housing court for the Government’s private rented sector reforms, but the Government are loth to do this. There are an awful lot of housing problems that need to be addressed by a specialist and simplified procedure, which has not been introduced either. Such a procedure would mean easy redress where things are still going wrong.

I am disappointed. The argument is not about whether we abolish leasehold, although it will be some time before leasehold disappears completely, if it ever does. What the Government could have done in the four years since the last general election, rather than waiting until after the next general election, is take steps to make sure that leasehold is completely abolished for new homes, to protect current leaseholders from unfair service charges and permission rights, and to give leaseholders the right to enfranchise themselves through a simple and reasonably cheap process. Why have the Government simply failed to do any of these things over the past four years?

--- Later in debate ---

[Rachel Maclean]

If the hon. Member will allow me to answer the questions I have been asked, I will come to his points in my remarks.

We are making significant progress to afford real relief to leaseholders, which everyone in the Chamber is calling for, while reforming the system for the better. However, the questions facing leasehold tenure are not simply about money—important though those are—but also include, “Who decides?” For people living in a leasehold home today, we are going to make it easier and cheaper for them to take charge of their building, whether by taking advantage of our reforms to the right to manage or by going all the way and buying out their freeholds following our planned enfranchisement reforms. Both offer to put owners in the driving seat over the decisions that affect them.

In the case of new homes, our ground rent Act has cut off a key source of revenue for freehold landlords. Without strong economic reasons for developers to hold on to, or sell on, the freeholds of other people’s homes, we have created a powerful incentive for builders to put buyers in charge of their new homes from the outset. We know there is more to be done, which is why we are taking two key further steps on new homes.

First, we have made great strides in tackling the needless practice of selling new houses as leasehold. Our actions, including prohibiting Government programmes such as Help to Buy from funding new leasehold houses, have seen the share of new houses sold as leasehold cut from over 15% in 2016 to less than 2% today. But we are clear in our intention to go even further, which means that soon, other than in the most exceptional of circumstances, the selling of new leasehold houses will be banned altogether.

[Mr Betts]

The Minister has just made two commitments. One is banning the sale of new leasehold homes, and the other is bringing in a new process for enfranchisement. Is that a commitment to have both of those in the Bill that will be presented in this Parliament?

[Rachel Maclean]

It is a commitment that I have made from this Dispatch Box, and the hon. Gentleman has heard me say it clearly. He is an extremely experienced Member of Parliament, and he knows that it is not possible for any Minister to commit to the details of what will be in a future Bill or King’s Speech, but I am making commitments about the measures that we intend to enact.

For buyers of new flats—[Interruption.] Perhaps hon. Members would like to hear some further commitments. For buyers of new flats, we will also bring forward much-needed reforms to the commonhold system, so that flat owners and developers will finally have access to a viable alternative to leasehold. It was this Conservative Government that set up the Commonhold Council, and it has met regularly and we are working closely with it.

Several hon. Members spoke about recent reports from the Law Commission, and it is worth saying that we have been working in lockstep with the commission to ensure that our reforms are workable and deliver the outcomes we all want to see. Indeed, I take this opportunity to thank the commission for all its work in this area. It has made more than 300 recommendations for improving the leaseholder system across enfranchisement, including how valuation operates, commonhold, and the right to manage. I have no doubt that hon. Members appreciate the complexity of the reforms in this fiendishly complicated area, and it is absolutely right that we take the necessary time to ensure that they are done properly. We are unapologetic about saying that, for the sake of the owners of 5 million leasehold homes, we have to get this right, and that is what we are committed to do.

Voter ID

Clive Betts Excerpts

Thursday 27th April 2023 Commons Chamber

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

To ask the Secretary of State for Levelling Up, Housing and Communities if he will make a statement on arrangements in place to record the number of voters who attend at a polling station and are denied a vote because they are not in possession of valid ID.

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

It is vital that we keep our democracy secure. This Government stood on a manifesto commitment not only to protect the integrity of our elections but to enhance it. On that basis, this Government won a majority. We have introduced legislation to implement that commitment and we are now in the process of delivering on our promise. Voter identification is central to protecting our electoral system from the potential for voting fraud. Its implementation at the local elections next week brings the rest of the UK in line with Northern Ireland, where people have had to bring photographic ID to vote in elections since 2003. [Interruption.] I remind the hon. Member for Cardiff West (Kevin Brennan), who is chuntering from a sedentary position, that that legislation was introduced by the then Labour Government under direct rule.

The data collection processes for polling stations are set out clearly in the Elections Act 2022 and the Voter Identification Regulations 2022. Polling station staff will record details of any electors turned away—should there be any—for the purposes of complaints or legal challenges and, in the short term, to provide data to evaluate the policy, which will be conducted by the Government and the Electoral Commission in line with the legislation that was voted on, debated and passed by this House.

The Electoral Commission has published suggested templates of the necessary forms and has updated its guidance in the polling station handbook to reflect the new processes. As required by legislation, the Government will publish a number of reports on the impact of the voter identification policy. Our intention is that the first of those reports will be published no later than November 2023. The data collected will be a significant part of that evaluation.

There are few tasks more important in public life, as I am sure every member of a political party represented in this House and the general public would agree, than maintaining the British public’s trust in the sanctity of the ballot box in our democratic processes. We on the Government Benches take that duty very seriously. I look forward to our first experience of the policy in polling stations in Great Britain on 4 May.

[Mr Betts]

I was not my intention to get into an argument about the appropriateness of the policy. I was trying to recognise that it will be important to know the impact of the voter ID regulations once the elections have taken place. When people go to polling stations and are turned away because do not have the requisite ID, will those numbers be recorded? We know that if someone speaks to a polling clerk and is turned away, the total number of those people—not their names—will be recorded. But because of concerns about the collection of people around polling stations, some authorities will have meeters and greeters outside who will check in advance, perhaps when people are in a queue, whether they have the required ID. We do not know whether people who are turned away at that point will have their numbers recorded—that is the confusion.

At a recent Levelling Up, Housing and Communities Committee hearing, Peter Stanyon, the chief executive of Association of Electoral Administrators, made this important point:

“The returning officers are required where they have a meeter-greeter to report those they have advised at the door and turned away, and those at the desk as well. They will be reported as two separate things…The base standard is it is at the desk, because that is where the ballot papers will be and that is where the question is asked. Where there is a meeter-greeter, the commission is asking for that statistic and the Government are asking for that statistic as well.”

So two sets of statistics will be collected. That seems fairly clear.

The problem is that this week the Electoral Commission said something very different. It said that when meeter-greeters turn someone away who does not have the voter ID that they should have, those numbers will not be counted. I have a simple question for the Minister: is it the Government’s intention that that information will be collected, so the total number of people who attend a polling station but are denied a vote because they do not have the requisite ID will be counted?

Was the statement made by Peter Stanyon to the Levelling Up, Housing and Communities Committee correct? If it was correct, why did the Electoral Commission issue different advice this week? Was that information incorrect? Or, if it was correct, was the information provided by the Electoral Commission this week given with the consent and approval of the Government? If it was, and meeter-greeters are going to turn people away and the numbers are not going to be collected, how can it be said that it is the Government’s intention to collect information that includes the number of people who are turned away? Surely both elements have to be added together in order to get the total numbers correct and to properly assess the impact of the measure.

[Rachel Maclean]

I thank the hon. Gentleman for his forensic scrutiny, as we would expect from the Chair of the Levelling Up, Housing and Communities Committee. I will make a couple of basic points, but it may be appropriate for me to follow up in writing, because he is referring to some conversations—[Interruption.] I would be grateful if the hon. Member for Nottingham North (Alex Norris) would stop chuntering so I can answer the question appropriately, because the hon. Member for Sheffield South East (Mr Betts) has requested a considerable amount of detail, which I am attempting to give.

--- Later in debate ---

[Rachel Maclean]

I stand corrected by the hon. Gentleman who is speaking from a sedentary position. The hon. Member for Strangford (Jim Shannon) is the only such Member I can see in front of me, present in the Chamber and participating, bringing his experience of the system in Northern Ireland. He is right that, as I set out earlier, a photographic ID that is a little out of date but in which the likeness can still be established is a relevant form of ID that will be accepted.

[Mr Betts]

On a point of order, Mr Speaker. Just after I started asking my urgent question, I received a letter from the chair of the Electoral Commission John Pullinger, in which he says that the only data recorded will be those recorded by the polling clerks when people get to the desks to try to cast their vote and do not have voter ID. He accepts that the numbers of people met by meeters and greeters and turned away without voter ID cannot be recorded, which will compromise the data that is collected by the polling clerk, so the Electoral Commission will publish two sets of data: one from polling stations without meeters and greeters and one from polling stations with them. How can that be a sensible and co-ordinated information collection to show the actual impact of the measure?

[Mr Speaker]

Thank you for the point of order. Minister, are you happy to answer that?