(2 months, 3 weeks ago)
Public Bill CommitteesFor the very last question—a short question and short answer—I call David Simmonds.
Q
Ben Beadle: Yes. Straightforwardly, yes it is. Landlords will have to act differently under section 13. I would encourage landlords to speak with their tenants. No one wants to get a section 13 notice through their door as a surprise, so landlords do need to have some soft skills about them and have a sensible chat with their tenants, but yes is the straightforward answer.
We have to bring things to a close now as the next witnesses are due in. I thank both our witnesses very much for coming and giving evidence this morning.
Examination of Witnesses
Tarun Bhakta and Tom MacInnes gave evidence.
Good morning to both our new witnesses. Could you begin by introducing yourselves? Then I will go to Members to ask questions.
Tom MacInnes: Good morning. My name is Tom MacInnes. I am the director of policy at Citizens Advice.
Tarun Bhakta: My name is Tarun Bhakta. I am policy manager at Shelter.
Q
Tarun Bhakta: First, I would like to thank the Committee for inviting us to give evidence today. To answer your question on how the Bill is different, there are significant changes from the previous version of the Bill. In our view, the previous version was of good intention, but full of aspects that would undermine its core purpose, particularly as the Bill moved forward and changes were introduced, for example to essentially remove periodic tenancies or reintroduce fixed-term tenancies—that minimum period for tenants.
Similarly, there were policies with a lot of shortcomings —ideas such as the no re-letting period after landlords evict a tenant. We have seen in Scotland that one in five landlord sale evictions have not ended up in sale, so there is evidence of abuse in the system. It is really important that there are measures to deter landlords from abusing the new section 8 system, and to catch landlords who are dishonestly evicting tenants. The previous Bill included only a three-month no re-letting period, which would have been much too small a deterrent for landlords seeking to abuse the eviction grounds and evict tenants dishonestly. We are really pleased to see changes in this Bill that go significantly further, such as the 12-month no re-letting period.
There were measures in the previous Bill that we would call half-baked, particularly when it came to notice periods. We know that the most common type of eviction in the new system will be for landlord sale or for landlords moving in. The previous version of the Bill included just two months’ notice, which would have retained and recreated many of the problems that we see in our current private rented sector, where tenants are faced with short notice and unreasoned evictions. We think many of those are avoidable, but we also know that that short notice is not long enough for renters to find a new place to live. There are really positive changes in this Bill in comparison with the previous version. We think it will go a very long way to addressing the needs, but given that we are so early in the Parliament —we welcome the speed at which the Bill is being implemented—it is still important to view this Bill as a work in progress.
In our evidence today, we will pick out two key areas. First, we think the Bill can go further in chapter 3—the discrimination clauses—on improving access to rented homes. Secondly, we think the Government need to take another look at rent increases. Looking at the evidence from tribunal cases, we do not think the current approach in the Bill—to tweak the work of the tribunal, as discussed in the previous panel—will achieve its aim of preventing evictions by the back door, or economic evictions, as they have been called. We think that the evidence that we have heard today on the tribunal today shows that we need to go further there.
Tom MacInnes: We would agree with quite a lot of that. The Bill does improve the position for renters. We agree with the changes around re-letting, but we would say that that is probably only as strong as the enforcement, so we would be interested in looking at that further. We also welcome the longer notice period and the stronger rules on discrimination against families and those receiving benefits. Those are definitely things that we think are improvements.
We may come on to this, but there are other areas in which we might be looking for a couple of improvements. In particular, there was some discussion earlier around the portal and the use of the portal. We think that it could be used for better establishing what the market rent was in an area. If you are talking about in-tenancy rent rises, is that possibly a place where you could agree what actual rents were, rather than past rents? There could be something useful there, but broadly speaking it is a step in the right direction.
Q
Tarun Bhakta: Yes, I think so. I think you might be referring to talking about the evidence requirements on eviction grounds.
indicated assent.
Tarun Bhakta: It has long been our call that the Bill should specify and set a higher threshold and make that clear, particularly for the landlord sale and the landlord moving in eviction grounds. We also think that the Bill should introduce a post-eviction proceeding.
There are two really important parts to establishing that clarity in the Bill. First, tenants and landlords need absolute clarity about what constitutes a legitimate eviction. We see through our legal services that the decision on whether to challenge an eviction notice in court is an incredibly complex and difficult one for tenants to make. The process of going through the courts to challenge an eviction is time-consuming, costly and very stressful for tenants, so it is about setting out that clarity, particularly in those landlord sale and landlord moving in eviction grounds. Making that threshold clear would provide clarity for tenants to help to make that decision. We believe that that would also have the effect of supporting tenants to understand where an eviction is legitimate and prevent some of those cases from making it to court.
Secondly, the current wording in the Bill is very open. It goes further in Scotland, in our view, and although it is all very well being confident in setting guidance for the courts and hoping that the judges make the right decision in court, tenants need that clarity before we reach the court stage. Also, judges do need some steer; we see some inconsistency in cases between judges, and it is not the case that they will all interpret the law in exactly the same way, so setting that clarity in the legislation is important. We cannot have a situation in which the landlord states that they intend to sell the property and that is case closed: we need more clarity than that.
Q
Tarun Bhakta: It is difficult to set that to one side, so you will forgive me if I do not.
Could the panel begin by introducing themselves?
Tom Darling: I am Tom Darling, director of the Renters’ Reform Coalition, which is a group of 21 leading housing organisations that have been campaigning for progressive reform of the private rented sector.
Ben Twomey: Good morning. I am Ben Twomey. I am a private renter myself. I am also chief executive of Generation Rent, the voice of private renters across the UK.
Q
Tom Darling: I think you are asking about affordability assessments and the role they play in tenants being able to access rented housing. Is that right?
Q
Tom Darling: As regards the Bill, we think that those sorts of affordability checks are acceptable, but we think that measures—as you have heard from previous witnesses—that go beyond that can be discriminatory, and often look to punish tenants and discriminate against tenants on the basis of their income. You heard about rent in advance and guarantors. We would like to see a limit to guarantors that says that, if you pass an affordability check, you should not be asked for a guarantor in addition.
Ben Twomey: We are in an interesting situation where someone could be working in a key worker or essential worker role but there are parts of the country in which it is unaffordable from them to live. They probably would not be able to pass some of these affordability checks to rent privately. That would be fine if there were other options available, but most private renters cannot afford to become a homeowner if we want to and cannot wait the 10-plus years to access social housing if we need to, so the only option is to find a way into private renting—otherwise we find ourselves in temporary accommodation. There are 150,000 children living in temporary accommodation right now. The Bill needs to go further to try to address that, because it speaks to some of the wider Government ambitions around making work pay. It does not really help us if our income increases but it is taken off us by our landlords before it reaches our pocket. Wider affordability questions, which I am sure we will come to, are relevant to the credit checks and the ability to rent privately.
Q
Tom Darling: We think that local authorities should be funded on a per privately rented property basis. We have heard that the Government will set out new burdens funding, but we think that the funding should be allocated according to the size of the private rented sector in that area. I want to be really clear that we support selective licensing and would like to see it enhanced and deepened alongside the new database, and we think that a number of changes made by previous Administrations to the way selective licensing worked made it harder for local authorities to apply for selective licensing schemes. There are some straightforward changes that this Government could make: removing the Secretary of State’s veto over the schemes; allowing local authorities to refer to housing conditions when they are applying for selective licensing; and extending the schemes from five years to 10 years. We think that would work well alongside the database and not in lieu of the database.
Ben Twomey: If I could take the resourcing point and slightly widen it, there was a cost of £1.7 billion in the last year to local authorities for temporary accommodation —for housing people who are no longer in their homes. This Bill will end section 21, which is really welcome, because that is the leading cause of homelessness and ending it will hopefully make some savings for local authorities, as well as bring enormous benefits for tenants, who will be better protected.
There is also a Government cost of local housing allowance, which has been in the billions in the last few years. That is to give benefits to people so that they can afford to privately rent. This Bill could go further with affordability not only to protect people in their own homes but to make the Government change the way they resource the support they provide for people in their homes—moving some of that burden of cost away from the need to pay so much for private renting and towards a better-regulated market, which would put limits on the ability of landlords to raise rents.
Q
Ben Twomey: I do not have any with me, but I can take a look at that and write to the Committee.
Q
It would not be a Bill Committee evidence session if every interest group was not telling us that it had a way to improve the Bill in some way and from different perspectives. We have heard a lot this morning about the various concerns and how they are being addressed. In general terms, however, particularly given your concerns about the previous Government’s Renters (Reform) Bill, do you think this Bill strikes the right balance and levels the playing field between landlord and tenant?
Tom Darling: I will start by introducing the situation in the private rented sector as it is today. The Resolution Foundation said this year that
“the UK’s expensive, cramped and ageing housing stock offers the worst value for money of any advanced economy.”
The private rented sector is the worst of our ageing housing stock; in fact, it is the worst of the worst. It is the least secure, the worst quality and the most expensive of the housing tenures in this country, and we have the worst of any major country in the world. That is embarrassing and that is what we are talking about here. We need root and branch reform. We are happy that the Government have acknowledged that more significant reforms are required than those that the previous Government put forward, but we still need to see some changes to the Bill to go even further and deal with the scale of the crisis we are dealing with.
Ben Twomey: We are delighted that the Government are pressing on with this work very quickly, and there is a promise in the manifesto to end section 21 immediately—as quickly as we can get this law passed. That is really welcome, as it will protect people from homelessness.
There are also lots of things in the Bill that I have no notes on. For example, the bidding wars legislation seems well-written; it seems like it will make a genuine difference to people like me, who have experienced being invited to bid on homes just because we reached the front of a queue and the landlord realised that they could up the rent. Some of the provisions—including the introduction of Awaab’s law into private renting—are beginning to create more of an even playing field, as you say, for renters compared with other tenures.
I want to take a moment to talk about someone I will call Ayesha from Hertfordshire. She is a schoolteacher and a single parent, and she has been struggling to keep up with the relentless rises in rent that she has faced in recent years. She says, “There are moments when I feel so overwhelmed and exhausted, like I’m carrying the weight of the world on my shoulders. I try to stay strong for my children, but the stress and anxiety are always there, lingering in the background. I just want to provide them with the life they deserve, but with the way things are going I fear that I might not be able to. It’s a lonely, terrifying feeling, and it’s hard not to feel defeated by this constant struggle.”
It is important for people like Ayesha—given what is being said in this Committee, this Government and this Parliament as a whole; every MP in this room promised to end section 21 and, in more words or less, promised a fairer deal for renters—that this Bill takes the opportunity to resolve these issues. Maybe we will come to this, but we believe that that will involve limiting the ability for landlords to raise rents—not raising them to the market rate, but instead limiting them to the level of inflation or wage growth, so that rents begins to match the real, lived experience of people who are renting.
This is our final witness; please introduce yourself for the benefit of Members.
Richard Blakeway: Thank you very much. I am Richard Blakeway, the housing ombudsman for England.
Q
Richard Blakeway: That was not the first question I was expecting, but thank you very much. One of the requirements the Bill introduces is for landlords to be on the landlord database, with the checks required on that database, and then for them to join the ombudsman service. Whether or not there is a requirement around that as part of the criteria to be eligible to let properties is a consideration, and then that depends on whether or not they would join the ombudsman service.
In terms of the decisions that any ombudsman in the future might make, if there were issues around insurance—typically those are matters that tend to sit with the courts—or a landlord not facilitating claims around insurance, there might be an issue around whether or not insurance is in place, and that might be something that we then highlight in our decisions, which might be information we should share with the lead enforcement agency under the duty set out in clause 109. You may feel I have not fully answered your question.
Q
Richard Blakeway: The Bill is obviously quite comprehensive and will make a significant difference as a piece of legislation, but a considerable amount of information will be set out in statutory instruments after the Bill. There are, then, some answers in the Bill and some that will come in future regulations.
Your point about the clarity of jurisdiction between an ombudsman and other actors is fundamental. One of the most important elements to clarify the role of the ombudsman service will be the ombudsman’s scheme. Clause 63 sets out requirements around what should be in the scheme—what must be in the scheme and what could be in the scheme. I would probably encourage there to be more in the choices for Ministers as to what could be in the scheme than in the list of what must be in the scheme, because there will need to be agility, as the ombudsman—whoever is appointed as the ombudsman service—and the other actors start to come together.
The importance of clarity is obviously for individuals to know what route to take if they are seeking redress, and it is also important to make sure that there is real coherence in terms of raising standards and promoting good practice in the rental sector.
I can give a specific example where I think there would be nuance between the ombudsman service and the tribunal, which is around changes to rent. If a section 13 notice were issued, the decision on the rent would be a matter for the courts, and the Bill seeks to change the role of the courts, or the tribunal, in relation to that. But we or whoever was appointed as the ombudsman service could potentially play a role to decide whether a fair process had been gone through rather than the actual level of the rent. That is very similar to what we have today on the social rented sector and service charges, and our role as an ombudsman in the social rented sector and the role of the tribunal.
Q
Richard Blakeway: If you look at our current powers, role and approach around charges, we are very clear that we will consider transparency around why those charges are being made and their purpose, we will consider whether the service has been provided and the quality of that service, and we will consider whether an appropriate process was gone through. For example, at the moment we would consider section 20, where significant charges have to go through a process, and ask whether that process was followed. Those are decisions that we make and we can therefore very clearly consider what the requirements are, either set out in statute or under the provider’s own policy. That is the basis on which we would make a judgment.
I think that is a parallel that is relevant in your example in this space. Clearly, if we were seeing evidence that another mechanism was being used to increase the charges on a tenant and that was unclear and potentially unjustified, that could be a point of maladministration where we would uphold a complaint.
Q
I have a follow-up question; I will ask them in one go, Mr Betts, and leave more time for others. We have been very clear already that the new ombudsman will need to work collaboratively with others to resolve complaints and that will be set out in statutory guidance. What do you think needs to be included in that guidance to ensure, in particular, that the ombudsman is working effectively with local authorities?
Richard Blakeway: Those are really important questions. The Bill introduces a new framework of rights and responsibilities for both landlords and tenants and, as you set out, the ombudsman service—whoever is appointed as the ombudsman—plays a part in that. I would say as an aside very early on that I welcome the Government’s recognition of the strategic benefits of bringing together the social rented sector and the private rented sector, particularly given the common body of existing and new legislation that is tenure blind and speaks to both the private and rented sector, whether that is the existing Landlord and Tenant Act or the potential to extend Awaab’s law and the decent homes standard. I think there is a real benefit to system coherence and the right relationships, as you highlight, and also to making sure that benefits do not unintentionally fall in the wrong place, by appointing the housing ombudsman as the provider of redress.
I think there are three key relationships. There is the lead enforcement body, and working out the role of that body. In particular, looking at clause 109, information sharing between the ombudsman service and the lead enforcement body will be vital, so codifying that role will be important.
There is the tribunal, which we have alluded to. One of the really important pieces of work is to develop, very early on—I would have thought in advance of any statutory instruments—a draft scheme for the ombudsman service, and to collaborate with a number of bodies, including the courts, on what is in the scheme and therefore the decisions that the ombudsman might take, and what is outside it and clearly rests with the courts. I have given the example of section 13. The ombudsman could potentially play a role in looking at aspects of section 13, which might relieve pressure on the courts.
There is then the relationship with local authorities and enforcement. On the database itself, I think there has to be a decision about who owns the database and is going to provide it—whether it sits with the Department or the lead enforcement agency, for example—and the pace at which it could be developed to support the introduction of the redress service.
One of the other areas to consider, where there may be a pressure that emerges in the system—a pressure that I think the legislation recognises but could go further to address and relieve—is enforcement. The Government have rightly indicated that there is concern around compliance with ombudsman remedies. There was a survey in, I think, 2018 that showed 46% of private landlords not complying. At the moment, the Bill includes a kind of last resort to try to enforce compliance, which would be introduced later through statutory instruments. I wonder whether consideration should be given to bringing that forward, so that compliance issues are not having to be directed towards local authorities, and creating pressures there.
I also wonder whether the legislation could go further by, for example, amending clauses 66 and 96 to include rent repayment orders as part of non-compliance with ombudsman decisions. The Bill is rightly clear that if a landlord does not sign up to the ombudsman service then it could be subject to a rent repayment order, but it is silent on whether a landlord that is non-compliant with the ombudsman’s decisions should also be subject to a rent repayment order. I think that if you were to introduce that, that would strengthen compliance and reduce the need to direct things around the system to try to address them.
(2 months, 4 weeks ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It has been a pleasure to serve under your chairmanship, Mr Vickers.
[Sir Roger Gale in the Chair]
I am sure it will continue to be a pleasure to serve under the chairmanship of Sir Roger.
The debate has been wide ranging. It has gone from the commanding heights of the international economy to the truly micro. I commend the hon. Member for Derby North (Catherine Atkinson) for having brought together a wide group of Members with a clear interest in the role of local authorities and in regeneration specifically, but more broadly in the future success of our high streets.
It is always worth remembering that when there are international investment summits, 70% of people in work in the UK are in an enterprise with less than five staff. It is easy for big businesses to turn up and meet the Government. I very much welcome the investments that were announced at the investment summit. I welcomed them when they were announced under the previous Government and I welcome them again. But we need to make sure that those investments continue to manifest as a benefit on our high street.
The pressure of time perhaps meant the hon. Member for Derby North did not have the opportunity to talk about the input of people such as Councillor Barry Lewis, the leader of Derbyshire county council, and Councillor Ben Bradley, the leader of Nottinghamshire, who are examples of local leaders who have championed inward investment. Of course there are many from across the political spectrum.
Here in Parliament is an opportunity for us to reflect that although it is easy to describe the problem, we need to focus on what we can do to make a difference. My hon. Friend the Member for Bromsgrove (Bradley Thomas) shared some examples of that from his experience as a council leader. I hope that when the Minister responds he will have something to say about the impact of business rate reliefs.
Currently any English business that is a shop, restaurant, café, bar, pub, cinema, music venue, gym, spa, hotel or any form of leisure venue, can obtain a 75% discount on business rates, capped at £110,000 per business per year. I am aware that that rate relief is not available to the same extent in Labour-run Wales and aware that the Government are about to embark on some Budget decisions. But it is clear that the ability of businesses, such as those that are anchors on our high streets, to secure that relief has been extremely important, especially in the post-covid era, in making sure that our high streets remain vibrant. That sits alongside measures such as—
As we have heard today, town and city centres like mine in Maidstone desperately need a range of vibrant and varied shops and businesses. Does my hon. Friend agree that a reduction in business rates, not just a reform, would incentivise businesses to set up, especially independents and new start-ups? At the same time it would ensure that a level playing field starts to be set with e-commerce and home delivery services.
My hon. Friend represents the county town of Kent and presses the case that the leader of Kent county council, Councillor Roger Gough, makes: as the county town, it is particularly important that Maidstone demonstrates a vibrant and thriving high street. My hon. Friend is a vocal champion for that.
Measures such as business improvement districts and local enterprise partnerships have enabled combinations of local employers, business investors, local authorities, land holders and housing providers to come together to look at how regeneration schemes can best be designed. There is cross-party consensus that local leaders know their communities best and are best placed to design projects to bring the maximum possible benefit.
I acknowledge that it has been challenging to implement the process set out in the Levelling-up and Regeneration Act 2023 and the schemes that followed from it. For many years, the EU cohesion fund was the key source of inward investment at a strategic level, and in the post-covid and the post-Brexit era, central Government have found it challenging to design a multi-year financial arrangement that replicates it, serves a similar purpose and is deliverable at scale. I wish the new Government well with that challenge.
The 2023 Act also included planning reforms that enable long-empty shop units to be converted to much-needed housing on our high streets. That reflects a longer-term change on our high streets from retail to night-time, leisure and hospitality economies. Those are the businesses that benefit from the highest level of business rate relief, and they are becoming mainstays on our high streets. A number of hon. Members have mentioned the benefit to microbusinesses of approaches such as safer by design, which uses planners’ expertise to build out antisocial behaviour and crime from buildings and developments from the start through their design, layout and physical security measures.
It is important to reflect on the successful regeneration projects of other nations. This debate is focused on towns and cities, but when German reunification took place, national politicians were clear from the start that the project to rebalance the country was going to take 30 years. They were also clear that it would start with significant investment in large cities to create employment and prosperity, and that that would then feed into the wider social and public infrastructure around those towns and cities to ensure that, in due course, everybody in the country could benefit from a higher standard of living. Although we set out an ambition on that scale with the levelling-up projects, we did not have anything like the time and resources to deliver it on the scale that we wanted to, especially with the relentless calls for higher spending on covid in the background, which were a key part of shaping the Government’s financial approach at that time.
I note with a degree of pride that an average of 400 new jobs were created for every single day that the last Government were in office over 14 years. We must remember that work is key to regenerating our high streets—if people have money in their pockets, they will spend it locally. When we left office, youth unemployment was half what it was when we entered.
I read the Crewe business improvement district proposal, which, like many such projects, started out with very specific words: this is a “private sector led proposal”. That is a recognition that private sector investment will be crucial, and I think we are seeing a similar recognition from the new Government.
I have two asks of the Minister. First, will he set out the timetable for the next round of devolution? If he is unable to do so now, would he give us an indication of when he will do so? There are local authorities looking to switch to the elected mayor model. The East Midlands combined authority will be significant for places such as Derbyshire, but there are many other parts of England that are looking to do that.
Secondly, will the Minister commit to, or give us a deadline for a statement on, the retention of the 75% business rate relief that was introduced by the previous Government and is still being followed by the Treasury? It has been critical for keeping investment and employment buoyant on our high streets. We need to make sure that vital lifeline is retained into the future.
(3 months ago)
Commons ChamberIt is a pleasure to wind up for the Opposition in what has been a comprehensive debate. I add my thanks to all Members who made so many interesting points about different aspects of policy, but I would like to start with the contribution by the hon. Member for Rugby (John Slinger), who said that most landlords are good landlords. The English housing survey’s most recent set of statistics, published on 18 July 2024, sets out that private renters in England are the most satisfied of tenants in all types of tenure, more so than in social rented or any other kind, where the highest levels scored between 51% and 65%. While all Members will see in our constituency casework dozens of examples of people in great difficulty as a result of problems in the private rented sector, on the whole this sector remains one that those who use it find to be valuable and a source of appropriate and affordable housing. Therefore, the spirit in which we approach the Bill is that we need to ensure we put right the more egregious examples of tenants or landlords being abused and their good will or vulnerability being exploited in different ways.
My right hon. Friend the Member for North West Essex (Mrs Badenoch), in her opening speech for the Opposition, set out some robust criticisms of different aspects of the Bill and a strong defence of the previous Government’s position on the implementation of the Renters (Reform) Bill, as was. It is clear that our approach during the passage of this legislation will be to work constructively to address those shortfalls and deficits that we perceive in it, while recognising, as we did in the previous Government and as we have in manifestos—and as I think, from the speeches, has been the case across party—the importance of getting this right for renters.
I have seen the reality of such measures in Scotland, because these matters are devolved. They have driven up costs for renters, reduced choice, and made it exceptionally difficult to get that first home and almost impossible to get student accommodation in our wonderful university cities. Does my hon. Friend agree that it is important that we get this right, and if we are to do so we are going to need changes?
My hon. Friend represents Dumfries and Galloway and therefore knows a great deal about the impact that these measures have, because he has seen at first hand the impact on his constituents. I agree with him entirely, and it is important to draw out his point that they will have an impact not simply on those who are private renters in the traditional sense; this is part of a wider rental market, as many Members have noted, which includes everything from temporary accommodation to short-term lets, which is to a degree an unregulated market into which some landlords are moving. There will be a huge impact on students across our university towns. The private rented sector is used by local authorities to find accommodation for those in social housing need, and the social rented sector and our housing associations will be impacted too. Of course, there will be a degree of impact on owner-occupation as well.
Reflecting on the speeches of Members, it is clear, as the hon. Member for Vauxhall and Camberwell Green (Florence Eshalomi) said in her contribution, that we are increasingly reaching many of the key milestones in our lives later on, including acquiring our first home as an owner, having our children and getting our settled career. That is one of the reasons why we in the Opposition party, as we did in government previously, recognise the importance of getting things right in the private rented sector, because it will represent an increasing proportion of tenure in our country in future.
I will try to draw together a number of the points made—I appreciate that the Minister will do the same for the points made by his colleagues; I will endeavour to do my best for those on the Opposition side. As well as the points made in the introduction by my right hon. Friend the Member for North West Essex, my hon. Friend the Member for South West Devon (Rebecca Smith) shared the experience of being a local authority cabinet member in a part of our country with a combination of high-density modern housing in cities and surrounding rural areas, something more characteristic in the market of the United Kingdom than is the case in London, where my own constituency is located. Indeed, the hon. Member for Walthamstow (Ms Creasy) spoke of similar experiences.
That illustrated a point that some scoff at: landlords exiting the private rented market means not that the bricks and mortar disappear, but that the home is no longer available to the private rented market. It may be available to owner occupiers, it may be available to short-term lets, and it may be converted into other types of accommodation, but it represents a net reduction in the supply of private rented homes in that location. It is absolutely correct to draw attention to the impact of that on our communities.
You make the point that you think the property might change into home ownership or another form of tenure. What evidence do you have that the property would not remain in the private sector under a different type of landlord? The argument that you and other Conservative Members continually make is that—
In Scotland, where similar regulations have been implemented, there has been an exodus from the market of smaller private landlords in particular, and those properties have fallen into other kinds of tenure. If the supply of homes remained the same and it had a zero-sum impact on the market, there would of course be no requirement for a Renters’ Rights Bill at all, because everybody would find a home on one kind of tenure or another, but we know, because of the increasing proportion of people in the United Kingdom looking to the private rented sector to access the kind of home they need, that this will be incredibly important.
Does the hon. Member agree that it is precisely those small individual landlords who struggle to keep up with decent renting regulation, even as minimal as it is now? They make up the majority of the rogue landlords that many of us have heard about in our constituency surgeries. Frankly, it is often a good thing that small landlords who are unable to provide decent properties and keep up with legislation get out of the market in favour of those who can.
The hon. Member raises a good point about rogue landlords. Let us reflect on some of the complaints that we have heard. Ant infestations, widespread evidence of mould causing health problems, the dilapidation of communal areas, a prohibition on tenants seeking to rent while on benefits and a failure to comply with licensing laws—just some of the complaints made by the tenants of the hon. Member for Ilford South (Jas Athwal), but they are widely represented across the market. They are the reason we need to get enforcement action against rogue landlords such as that Member right.
On enforcement, the Secretary of State said in opening the debate that she is keen to ensure that there is an effective fining regime so that those who breach the rules can be held to account. We in the Opposition have a genuine concern about getting that right. There are a number of different areas of local authority activity in which enforcement is essentially a net cost to the council tax payer, because even when costs are won and fines levied, they are nothing like the cost of carrying out investigations, building the evidence base and taking the required enforcement action. If we are to ensure that rogue landlords acting in breach of existing laws are held to account by local authorities using those powers, we need to ensure, during the passage of the Bill, that the resources that are expected to arrive through the method of enforcement and fining are sufficient to make the process self-sustaining, or that the Government have alternative measures in mind to ensure that local authorities can access those resources by other means.
That is a long-standing issue and has been a factor for Governments of all parties. It was certainly a challenge in my 24 years in local government, under Labour and Conservative Governments. We need to ensure, in the interests of our tenants, that we get this right as far as we can.
As the hon. Gentleman will know from his experience in local government, the challenge is that the existing legislation relies on our constituents having the confidence to come forward, whether they are facing mould or unfair practices, and the evidence shows that the threat of a no-fault eviction means that many do not come forward. Does he therefore recognise that simply opposing no-fault evictions and relying on the existing enforcement regime means consigning people in an unfair market to silence and suffering?
As a constituency Member of Parliament and former councillor, I entirely recognise the hon. Lady’s point, but what the hon. Member for Rugby said was significant because we need to recognise that 76% of tenants in the private rented sector report a high level of satisfaction, a much higher level of satisfaction than is found in other forms of housing tenure. If we are to strike the appropriate balance in this debate in the Parliament of the nation, we have to recognise that the vast majority of landlords provide a good, important and high-quality service, and make sure that the legislation we take through to address the difficulty and challenge that our constituents—citizens—experience is proportionate.
Will the hon. Gentleman give way?
I will make some progress and move on to another area that has been debated. I know that the Minister will wish to have time to sum up on many of these points as well.
A number of Members, including my right hon. Friend the Member for New Forest West (Sir Desmond Swayne), highlighted the need for appropriate measures to support students in the rented sector. A good many landlords’ organisations have made the point that the Government’s intention to change the tenant and landlord’s full freedom of contract will have an impact, especially on students who wish to rent a property for the entire duration of their course. We need to ensure that there is appropriate flexibility in respect of student properties, so that students at university can find the housing that they need and landlords are not discouraged from entering that market, and so that the points raised by my right hon. Friend are addressed. We do not want a situation in which a landlord, wary of a two-month notice period, decides to take the property off the student market and put it somewhere else, in a way that perhaps addresses housing need less, and fails to support the local economy in the way that student housing would have.
That leads me to a point that I know we will explore in Committee: how freedom of contract particularly impacts constituents who struggle to pass the kind of credit checks and landlord insurance checks that are common in the private rented sector. We all have examples of people who have faced bankruptcy proceedings and entered into individual voluntary arrangements to address significant financial difficulty, and who then got themselves back on their feet; but who, when facing eviction, have found it impossible to find a landlord willing to rent to them. Those people are not eligible to access social rented housing, because they have a job and an income, but cannot access the kind of housing that locks them into a regular payment contract. However, they may be able to offer a significant up-front payment of rent—potentially many months’ rent, or even a year’s rent—to secure a property. That gives the landlord the certainty they need, and it also gives the person the guarantee of the home they need. We need to address that issue, because the implementation of a number of financial arrangements by previous Governments has created both an opportunity for people to get back on their feet after financial difficulty, and a challenge in accessing a long-term home in the rented sector.
As we proceed with this Bill, it is clearly important that policy is based on evidence. Having spoken to the Minister and many of his colleagues about the Bill, I know that there will be a high degree of cross-party agreement on some of the points that are discussed. However, I would like to bring this debate back to the key concern that we in the Conservative party have, which has been expressed by a number of Members: we need to ensure an appropriate supply of housing in the private rented sector, so that citizens who need to access those homes can do so.
We remain a party that respects and supports the aspiration of home ownership. Just like all other important life stages, our constituents are reaching that life stage later in life than has been the case historically. We are in a world where people do not typically leave school or university and spend 40 years working in the same business and living in the same town. People moving around and moving home to adapt to changing needs is a key issue that we need to address. Even those wishing to downsize and looking for a smaller property later in life—the last-time buyer market, as the industry likes to describe it—have their equivalent in the rental sector: people looking for accommodation that comes with a package that provides sufficient care and support. The choice to move into high-quality accommodation of that nature in the private rented sector can free up family homes that are in short supply. All these things need to be seen in the round.
Of course, most Members of Parliament are tenants—not all of us; those of us who commute are not—and will have experience of the London rental market. Luckily, Members of Parliament in that situation have the Independent Parliamentary Standards Authority to back them up, but that experience highlights the significant differences we see across the regions and geographies of the United Kingdom. My outer London constituency is dominated by owner-occupiers, but has a vibrant rental sector and a significant number of retirement homes. The population and the need are significantly different from the population and need in a university town full of young people looking to secure student accommodation, or looking for a good-quality private rented home for a short period while they get their first job and get their foot on the property ladder. We need to support that market effectively, and to get it right. We need a balance that avoids over-regulation and the unintended consequences about which my right hon. Friend the Member for North West Essex spoke so eloquently.
Regional variation was highlighted by a good many Members. Places being converted into holiday homes does not tend to be a significant issue in the London suburbs. However, we have heard from colleagues in this House, as we did during the last Parliament, about the massive impact that that has in many of our coastal towns and cities. The impact is not just on those in need of social housing, and those struggling to access, through social rent, accommodation in the private rental sector, but on those in other parts of the country where the local economy has been significantly changed as a result of those issues.
No debate about housing can be allowed to pass without mention of the impact of our Home Office contracts to secure accommodation for those in our asylum system. We know from feedback that many Members of Parliament have provided from around the country that in some areas, that has a significant impact. The initial very good intention behind those Home Office contracts was to disperse asylum seekers awaiting a decision to privately rented accommodation in parts of the United Kingdom where there was accommodation surplus to the needs of the community. That was why those contracts—run now by three private organisations, but run previously by the Home Office, and originated by the now Mayor, Andy Burnham, when he was a Home Office Minister—use that supply of accommodation.
However, we are beginning to hear, as we learned in debates about the use of migrant hotels and so on in the past, that the policy has, in some areas, taken a significant share of accommodation that would otherwise be available to the private rented sector. While it is absolutely right that we seek to reduce the cost to the taxpayer of people staying in hotels, we need to ensure that decision making does not simply tick the “out of hotels” box, and respects the needs and expectations of the community. In particular, given that it is always the lowest-cost accommodation that the Home Office will seek to rent, we need to ensure that the policy does not have an inappropriate impact on those awaiting housing through the local authority, or seeking the least expensive accommodation in the private rented sector.
All these different issues—temporary accommodation, short-term lets for students, accommodation for asylum seekers and owner-occupation—are impacted by this debate. I hope that the Minister will accept that we approach this topic in a constructive spirit, and that our challenge, as we go through the next stages of the Bill, aims at addressing the issues to get the Bill right.
My hon. Friend the Member for Romford (Andrew Rosindell), my right hon. Friend the Member for Witham (Priti Patel) and the hon. Member for Boston and Skegness (Richard Tice) all brought their direct personal experience to this debate, and set out why the points raised at the very start of this debate are so significant.
My hon. Friend is making a very important speech. Does he agree that it would be very helpful for the whole House if the Government published an impact assessment on the effects of the Bill, and does he understand why that has not happened?
I am sure the Minister will have heard that question and will address it, but there is a consistent pattern. A number of Members referenced yesterday’s debate on VAT on school fees, in which that point emerged, too. While we can see, for example, that there is a significantly higher proportion of pupils from ethnic minorities in private schools than in the state sector, the Government cannot supply an equalities impact assessment for their policy on VAT on schools. There seems to be a similar trend emerging with the winter fuel payments, and with the Renters’ Rights Bill; the Government say that it is very important that we get the policy right, but cannot supply evidence that they have properly considered the equalities impacts and the wider impacts, although much of that was enshrined as a legal requirement under the previous Labour Government.
In winding up—[Interruption.] I hear a cheer. That is the first, but I hope not the last, cheer I enjoy in this Chamber in my parliamentary career. This Bill is an opportunity to get things right for renters. We know that is a high priority for all political parties in this Chamber. We can all see the impact that the private rental sector has on housing supply in this country. We want to make sure that the sector continues to be an important, supportive and appropriate source of homes for people, and that it interacts effectively with other sources of accommodation. If we are to do that, we need to get this legislation right. Dare I say that the acid test will be future housing surveys? If the high satisfaction rates remain buoyant, perhaps the legislation has been right. If we fail to get it right, private tenants will be considerably less satisfied, and that will require the House’s attention again.
(4 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve under your chairmanship, Mr Stringer, and to respond on behalf of His Majesty’s loyal Opposition. I add my congratulations to the hon. Member for North Herefordshire (Ellie Chowns) on securing this debate, and I congratulate other Members on their contributions. The issues raised in the debate have helped to illustrate the complexities inherent in housing environmental standards. We know that the UK has probably—or certainly among—the oldest housing stock of any developed country, and we know about the complexity of housing tenure in the United Kingdom. Freeholder-owned buildings that are often occupied by a combination of leaseholders and tenants continue to be a challenge to Governments of all parties, when it comes to introducing the required updates and retrofits. In the context of housing development—1.4 million units of new housing already have planning consent in the United Kingdom—developers’ feedback on, for example, the cost of solar panels as a barrier to bringing forward new housing remains an active part of the debate.
Governments of all parties have made strenuous efforts over the years to improve the quality of housing, including several aspects of its environmental impact. The 2018 update to energy performance certificates, with a view to setting a deadline of 2025 for all rental properties placed on the market to meet a certain minimum standard, was an example of a Government intervention that aimed to raise standards. Some of the challenges for which the housing retrofit and building sectors have advocated have led Governments to feel that it was necessary to think again. No issue illustrates the complexities more clearly than the point that has been made about nutrient neutrality, something for which decision-making is essentially delegated to a third party under legislation that goes back to the mid-2000s. Central Government’s desire to minimise the environmental impact of development on surface water and waterways has led to significant delays in the delivery of new housing projects. I was going to quote the former leader of South Norfolk council—previously in the Public Gallery—who, in his capacity as a councillor, challenged the impact that that was having on the ability of local authorities to deliver new housing through the planning process, because of the delays in getting decisions made and permissions agreed. As the local authority bringing forward housing, if a site is not viable because of its environmental impact, it is clearly necessary then to be able to make a decision to move forward with other sites. It is clear that the planning process does not always support that decision making.
It is also noteworthy that the Innovate UK study, which looked at the real-world emissions of properties versus the intended emissions and those expected from the design estimates, identified that emissions were on average between two and three times higher than those that would have been expected from the design. I appreciate that Ministers in the new Government, like Ministers in previous Governments, face the challenge that we can do things that sound brilliant in theory, only to discover that how they operate in the real world does not meet the aspirations we all strive for.
I know the hon. Member for North Herefordshire previously served as a Member of the European Parliament. It is worth referring to the recent decision, outlined in a written ministerial statement, that from this period the intended deadline by which all building materials had to meet UK standards updated in 2018 would be set aside, and that products that met the CE standard would instead remain able to be sold into the UK market for an indefinite period. That may be an issue for fire standards; because the European Union standards on fire performance were last updated in 2015, they form part of that regulation, whereas the UK standards were updated in 2018.
Those standards also draw on a wide range of different studies and regulations in respect of performance, from damp resistance to energy efficiency. Again, it would be helpful for the Minister to set out for the benefit of Members present his expectation that those standards will meet the aspirations set out in the 2018 update of UK standards—I have confidence that that will be the case. Then we can be confident that the products sold into the UK market will meet the energy efficiency aspirations that Members have set out, and ensure that those products and materials contribute towards creating high-quality homes that fulfil the important expectations of warmth, absence of damp and the accessibility of fresh air that have been set out.
The national planning policy framework updates in prospect afford a further opportunity to consider how those requirements can be better enshrined in planning law. I appreciate that Ministers have a difficult challenge: the national planning policy framework has something like 19 chapters of detailed guidance. Each local authority is then required to put together its local plan, following public examination, in detailed conformity with each of those 19 chapters. The impact of that, its interaction with local environmental impacts such as surface water runoff, and any requirements for the design and nature of the materials used, in conformity with established local practices, all combine to create a significant challenge.
If the aspirations set out by Members are to be seen in practice, we must make it as straightforward as possible for local authorities to exercise their community leadership role. Rather than having to go through lengthy and expensive processes to demonstrate in planning law that that conformity is present, we must ensure that the standards can be implemented as quickly as possible.
I know the Minister, and other Members who have been in office for some time, will be aware that past Government initiatives, such as those around green homes, although sensible in principle in seeking to make Government funding for retrofit available to households as quickly as possible, have led to significant challenges in their administration. That is especially true where, for example, a business that has been licensed and approved to carry out the retrofit of those initiatives then loses that licence between the time when it has done work on a constituent’s home and the point when the invoice is paid.
The rules and regulations around that area need to ensure that it is as straightforward as possible for all constituents to make the right choice in buying a home, knowing that it meets the highest possible environmental standards, or in deciding to invest in their home in a way that will genuinely reduce running costs and improve the quality of the insulation. In practice, that must fulfil the aspirations the Government set out in allocating the funding.
Finally, it is a source of pride that under Governments of all parties, the UK has seen the biggest per capita carbon reduction from its residents—our constituents —since the carbon reduction target was first brought forward in the 1990s. It is very good that we have managed to achieve that. We have done it through a variety of measures, not just in the housing sector, but, given the significant part that emissions from the housing sector play in our carbon emissions, there is a clear opportunity for the environmental standards that have been thoroughly aired in this debate to play a significant role in how we address this challenge in future.
I can undertake that the Opposition will work constructively over this Parliament, where we can see the opportunity, with Government and other parties to support the implementation of standards and measures that will help to deliver that agenda.
(4 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve with you in the Chair, Mrs Harris. I add my congratulations to the hon. Member for Cities of London and Westminster (Rachel Blake). It is good to see her following in the footsteps of her predecessor, who secured a number of debates and made many contributions on the impact this issue has on that constituency and others. May I also commend the work that London councils have done on behalf of local authorities in the capital to highlight the impact of this issue and bring forward constructive policy suggestions?
There is a high degree of commitment to cross-party working on this issue. As we have heard, it has an impact on constituencies across the country, not just here in the capital, and it was much debated in the last Parliament, particularly during the era of the covid pandemic. We saw many of our constituents who wished to go on holiday or needed to travel for work unable to use hotels, and they therefore made the best possible use of providers such as Airbnb to secure accommodation that met the covid regulations in place at the time.
Many of us worked on the assumption that post-covid there would be a return to the market as we had seen it before, which clearly has not been the case. At the same time, longer-term changes, driven partly by Government but also by wider issues in the market, have seen reducing profit margins for those in the buy-to-let market and people facing higher costs for the standards of the buildings that they maintain. They have also seen the introduction of significantly increased checks on tenants as a result of the need to crack down on unlawful lettings and market changes more generally, as the big players such as Airbnb and Booking.com have sought to create a greater supply of this type of accommodation for commercial reasons.
Clearly, the regulations introduced in 2015—particularly in the capital, with the 90-day limit and the requirement that somebody had to be paying residential council tax on accommodation for it to be let, as well as ensuring that the hon. Member for Kensington and Bayswater (Joe Powell) would not be able to let out his parliamentary office should he wish to do so—are examples of measures taken by Government with a view to ensuring that this market played a positive role in local communities. However, as has been highlighted by many Members, significant issues clearly remain despite those measures and that high degree of cross-party consensus.
As with many things, I put it to the Minister that there will be an opportunity in the Government’s review of the planning system to consider points about the use classes that would apply to property, in particular to introduce requirements around planning consent being sought for those properties that could create a nuisance because of their proximity to other types of residential development, and to ensure that powers that may be enforced are available to local authorities through the planning system.
Is the hon. Gentleman aware that planning authorities can barely wash their own faces, let alone take over the enforcement of thousands of holiday lets? Does he not think that that could be a huge challenge, which could perhaps be better funded through taking money directly from the holiday let operators?
I started my political career as the chairman of a planning committee in London, and I am very aware of the challenges faced by planning authorities—not just in the capital, but elsewhere.
The design of the system around enforcement is clearly intended to ensure that it is financially self-sustaining; we have seen some examples of that with local authorities, including those that have entered into contracts with the private sector specifically to ensure higher levels of enforcement funded by fines and charges levied against those abusing the system. Not all local authorities have reached the stage where they are prepared to undertake that work, but clearly both the available market in providers and the powers and freedoms that local authorities have enable them to do that if they feel that it is an appropriate and proportionate solution to the level of challenges and concerns that they face in their local community.
We know that the current situation reflects a long-standing determination on the part of Governments of all parties to ensure that there is an increase in the accommodation available. Measures such as Rent a Room tax relief, which was introduced many years ago, were intended to ensure that there was a greater supply of flexible accommodation, so we need to ensure that we strike the right balance in this market.
I finish with some observations about the context of the housing market in which this debate is taking place. The UK has the most intensively used housing stock of any major developed country in the world. We have very few derelict or empty properties, so given the level of demand in comparison with other major economies, it is clearly important that we ensure as far as possible that accommodation is available to those who need it.
An element of that will be short-term lets, which play an important role in the economy, but with many people looking to secure longer-term and permanent housing that clearly needs to be a high priority. In taking forward their planning reforms, I urge the Government to consider the fact that there are already an additional 1.4 million new homes in England with planning consent already granted by our local authorities. Priority should be given to ensuring that those consents are fulfilled and those homes are built, rather than prioritising, for example, the deregulation of the green belt.
I also want to bring something else to the attention of those present. In some respects the previous Government’s record deserves criticism, but on measures for net additional dwellings and new homes per calendar year—both major measures on housebuilding—development under the previous Government hit record levels; in fact, in recent years it hit the long-term record for as long as the statistics have been gathered. Indeed, during the last Parliament, a net additional 1 million new homes were built in England alone, in fulfilment of the manifesto commitment.
Many hon. Members have highlighted lots of issues that need to be dealt with effectively. I would encourage the Government to consider how, through their review of the planning system, those issues can effectively be brought forward. They should also consider how existing measures that have been highlighted, such as enforcement powers and the means of recouping costs, which are already available and used widely by some local authorities, could be put into action more swiftly.
(4 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve under your chairmanship, Dame Siobhain. I congratulate my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) on securing the debate. The contributions of all hon. Members have helped to illustrate both the complexity of this issue and its importance at community level.
Every local authority has a quasi-judicial role as a planning authority, in that it has to follow planning law and the relevant statutes, and my hon. Friend and other hon. Members have called for everyone to be treated equally before the law for the purposes of the planning process. That is clearly a complex challenge for our local authorities, which also have various statutory duties as housing providers. When considering an application, the local authority has to ensure that planning law is fully upheld, but it also has a role in designating sites on which Traveller pitches and other development may take place. Most of us will have experience of that matter—the situation at Jackets Lane in my constituency is almost identical to that described by my hon. Friend. Like many Members, I am fortunate to have two local authorities with full housing revenue account, local authority-maintained Traveller pitches, as well as privately designated sites.
However, it is understandable that, for the reasons outlined by my hon. Friend the Member for Bromsgrove (Bradley Thomas)—I have experienced this in my own home—the sites can cause a great deal of community concern, given some aspects of the behaviour of individuals associated them. We cannot simply say that the Gypsy, Roma and Traveller community is one community. In my constituency, there are settled Travellers, who have chosen to occupy a bricks and mortar home and may require family members who are travelling to be able to stay close to them at certain times of year. There are people with much more ancient lifestyles, particularly among some of the Roma and traditional Gypsy community, whose requirements are very different. All our local authorities need to be flexible, and communities need to be aware of those distinctions, so that the responses that we put in place are appropriate.
We all accept that provision will be inadequate for some individuals, and that there may not be a spot on a local authority-provided site when they arrive. Indeed, the behaviour of some, who may not even be UK residents but who can arrive in large numbers and undertake unlawful and illegal incursions, can significantly affect the reputation of other members of the Gypsy, Roma and Traveller community.
My hon. Friend the Member for Thirsk and Malton asked an important question in the context of parliamentary proceedings: how can something that is either unlawful or, in some cases, specifically illegal in planning law be rendered lawful by other considerations? If a property developer were to purchase the field and seek to build a mansion, there would be rigorous enforcement against them. If a developer sought to build family homes, or a care home, there would be rigorous enforcement against them. Why is it, therefore, that other elements of our law allow one individual to bypass the statutory planning process and rules, especially when the site may subsequently be sold to another occupier? How can we ensure that those elements do not create a back door to flouting the planning rules? I have personal experience of a developer who cited diplomatic immunity as a reason why the local authority could not carry out enforcement action against structures built on agricultural land.
Given the enormous remediation costs associated with abuses of the planning process, it is not surprising that many local authorities are extremely concerned, as my hon. Friend the Member for Bromsgrove, with his experience as a local authority leader, described. We can all think of examples. A site may be used for housing development after illegal occupation, or it may, for example, be used for waste disposal. Buckinghamshire council, on the border of my constituency, was faced with having to clean up a site that a group of Travellers had purchased from a farmer and then used to dispose of asbestos and hazardous waste, which was removed at enormous cost—a multimillion-pound cost—to the taxpayer.
In all such cases, there is a common issue: the local authority’s inability to use swift and robust enforcement powers. As my hon. Friend the Member for Thirsk and Malton said, once a site is occupied and the use becomes established, it is very difficult to change that in the way the community would expect. During the recent general election campaign, I delivered leaflets to properties that formed part of an illegal encampment— because those individuals had been there for so long, they were on the electoral roll. Other residents in the community asked, “How is it that all these processes that are designed to make sure everyone follows the law can come together in a way that enables those rules to be flouted?”
On behalf of the official Opposition, I extend an offer to the Minister, who has taken an incredibly constructive approach to all the issues in his portfolio. Members on both sides of this debate have made constructive contributions and have set out ideas about how we can more effectively address the broad sweep of concerns that arise from this issue. My constituents are affected by an unauthorised encampment in the Hog’s Back, and have expressed great frustration that the local authority planning notice that applies to the site has effectively been bypassed as the individuals have moved to another part of the site. Those kinds of things understandably create a public backlash, as people feel that the law is not working effectively and is not on their side.
It is one thing for local authorities to have to resort to section 61 of the Criminal Justice and Public Order Act 1994 to deal with illegal and unauthorised encampments that are causing a nuisance, but activity that can become established through the passage of time needs to be dealt with differently. I suggest to the Minister that, as we work together on that, we should also consider the operation of things such as the planning conditions that apply in national parks. My hon. Friend has the North Yorkshire Moors and the Yorkshire Dales national parks near his constituency. It is common to apply to national parks specific planning conditions that do not operate in other areas, such as conditions around the occupation of new homes by agricultural workers. Again, that provides scope for abuse of the planning system. For example, a developer could build a property purportedly for agricultural worker use and then say they wish to convert it to a holiday let or an extended family home.
There is also the wider issue of ancillary uses, which my hon. Friend referred to. When a piece of land is in the green belt, perhaps with agricultural designation, there are always opportunities for a prospective applicant to say that they need a barn for their farming business or a sports pavilion because they hope to use the land for sporting activity. That potentially enables a property footprint to be established. In planning terms, conversion of that—legalisation of the occupation—follows later, to the dismay of local residents, who then question the effectiveness of the planning system. The scope for the use to become established and the property to be sold on for profit in a way that is not available to developers who seek to work within the system remains a significant cause for concern.
I thank all Members who have contributed to this balanced debate, which has highlighted many angles to the way in which this policy interacts with Gypsy, Roma and Traveller and settled communities. I urge the Minister to make the best use possible of the expertise of Members across the House and ensure that, as we move to update planning law, we have effective enforcement powers in place so that all our residents—all our constituents—have confidence that they will be treated equally before the law in the way that Parliament expects.
(4 months ago)
Commons ChamberI would like to open by sharing the commitment of His Majesty’s official Opposition to supporting the Government in ensuring that, in particular, the legislation brought forward in the previous Parliament, broadly with cross-party support, to address the issues that the Under-Secretary of State for Housing, Communities and Local Government, the hon. Member for Bethnal Green and Stepney (Rushanara Ali) and colleagues have outlined following the Grenfell fire, takes full effect through regulation and implementation across the sector. It is absolutely clear, as was stated by the Leader of the Opposition during the Prime Minister’s statement last week, that we share the Government’s determination to ensure that everybody in our country is able to feel safe in their home, and that risks, whether they are known or might emerge from the continuing research into this field, are properly addressed. We will do our very best to work with her and colleagues in a constructive manner to ensure that that happens.
Today’s debate is also an opportunity to consider many of the broader issues around building safety that will come into play as we consider the Government’s plans to reform our planning system, increase our housing supply, bring in new forms of building into the United Kingdom and reform building regulations. A great deal of the report from Sir Martin into the Grenfell incident focuses on the role played by building regulations and their operation in the market for materials and design in the terrible disaster that took the lives of 72 people.
However, we should not waste an opportunity to consider more broadly how other parts of our housing system and our planning system can ensure that risks that might emerge in the future are dealt with effectively. For example, we are aware when a planning application comes forward that the safety and resilience of a building is not simply down to its construction and materials; it is also affected by its location, its proximity to other sources of risk and its design from its very inception. They all have a part to play. We know from points that have been made in the past by Members from across the House about the role that housing plays in the context of public health that, in the capital, for example, air quality is often worse indoors than it is outdoors as a result of buildings designed with poor ventilation and poor mechanical systems. That creates a long-term health and safety burden for residents which can be alleviated by giving due consideration to better design and resilience at the initial stages.
I encourage the Government to consider, as they embark on this process, how to manage some of the very complex interactions when seeking to improve the safety of buildings where there are freeholders, leaseholders and tenants all occupying some of the same space. I am aware, from experience in a local authority, that Hillingdon council had to go to court on 16 occasions to gain access to council properties to undertake basic maintenance and servicing work to installations against the will of the occupier, even though that work was being carried out at no cost to the tenant. That demonstrates some of the practical difficulties that that complex relationship can create in ensuring that local authorities and others are able to fulfil the duties that this House and the legislation place upon them.
It is also clear, from both the Grenfell report and other research, that the drive towards building efficiency, in particular energy efficiency, has created a risk of a loss of focus on safety. We know that this has been part of a global move to recognise the need to address climate change through better quality insulation and the more efficient construction of buildings. Increasingly, we see buildings being brought forward with modular construction of different types. Hotels arrive in a shipping crate: pre-constructed rooms are simply stacked up and then given a brick skin. Frame-constructed homes are a significant part of the delivery of the housing market. These provide an opportunity to make the available funds go further and create more homes more quickly. That is extremely welcome, but we need to ensure that the risks that might be associated with some of those forms of construction, especially where they take place at scale, are properly considered. I would like to hear a little more from the Government in due course about how the broader context of building safety and resilience will take those matters into account.
Would the shadow Minister like to reflect on the fact that around four years ago the previous Government set up a committee to look at modern methods of construction, but the last investigation showed that it had not actually met? It is important that we get this right. We can see the problems with timber-framed homes and all the difficulties they caused in the 1980s. It is important we get the techniques and construction right, but there was a bit of a gap in the previous Government’s approach, was there not?
Of course, it is embarrassing to hear that. Again, from experience of local government, I know that a great deal of work has been put in to ensure that modern methods of construction are put forward for Government consideration. Often there are exemplars around the country of how new estates and new homes have been delivered. There is certainly no lack of evidence on the opportunities available.
We also have an opportunity to reflect on the many challenges in our current housing stock, and in other types of buildings such as schools and hospitals. Once upon a time, aerated concrete and asbestos were regarded as wonder materials, and house builders and Governments would have been considered inefficient if they had not ensured their use. We now know that they have created problems and risks that require significant levels of expenditure to remediate.
That brings me to another important point: building resilience is not just about homes. The BBC recently did an excellent piece of work commemorating the original Health and Safety at Work etc. Act 1974, which was implemented by Government following a number of quite appalling incidents, mainly in factories, where significant loss of life occurred because the design of buildings meant that, in the event of a fire, for example, it was difficult or impossible for people to get away.
We know that school buildings have been destroyed and that thus far not a single school has been fitted with sprinklers where fire has resulted in total loss of the building. The cost of installing that equipment at the design and construction stage is relatively modest compared with the impact of retrofitting it, so there is an opportunity for the Government to reflect on how, as we take forward their strategy on investment in new schools, we ensure that that resilience is, as far as possible, built in and that the full cost to the taxpayer that occurs when a hospital or a school is lost is considered. We must reflect also on how we ensure that office buildings and factories under construction meet the highest possible standards, especially as they often face many of the same challenges around new materials and new forms of design that are intended to make them more efficient but potentially bring in risks that it is our duty to foresee and prevent as far as we possibly can.
We will shortly consider the Renters’ Rights Bill. That will have a wider impact, especially on the build-to-rent sector. We have seen new forms of developer coming into the market with the specific intention of constructing, from the outset, long-term rental homes.
I welcome the shadow Minister’s comments about working cross-party. One thing we need to do is establish the facts, the reality of what is going on, and the confusion left by the previous Government. People are being told by mortgage providers that they need an EWS1 form, but by freeholders that they do not. They are stuck, going back and forth for years. Would he like to take this opportunity to recognise the confusing legacy left by his Government and apologise to all the thousands of people who are stuck in places feeling that they have no place to go?
Given the broad cross-party consensus in the last Parliament about the importance of the new forms of legislation and the regulation that follows from it, I think we should seek to maintain that consensus as far as possible, but as somebody who in a previous life worked in banking and as a mortgage adviser, I know that the challenges around the mortgageability of properties, especially properties of novel construction, go back many decades. For instance, a very limited number of lenders will provide for properties located above shops, because of that particular sets of risks. EWS1 was a similar example; despite apparent clarity from Government, there clearly was a lot of debate within the sector and some lenders preferred to go belt and braces, demanding the provision of something that was not required by law or regulation before making a lending decision—and the then Government did significant work in the previous Parliament to bring clarity and address those problems.
That is a helpful introduction to a point that I want to touch on briefly: the role of the insurance industry, both in the challenges that will follow from Grenfell and in the wider experience of our constituents. Many people find themselves significantly challenged because, owing to a lack of clarity or to uncertainty about the construction of their building, they face significant insurance costs, sometimes to the point where only one insurance provider is available. Others face very significantly increased costs because of the behaviour of a landlord who seeks to apportion the insurance costs across all the properties in their portfolio, rather than according to the risks of a specific property that a particular tenant or leaseholder inhabits. It would be helpful for the Government to give some consideration to how they can work with the insurance industry to ensure that those who are paying for insurance are paying a fair price and that it provides the necessary cover that mortgage lenders, for example, will expect.
It is clear that, as well as the strong commitment we on the Opposition Benches can give to support the Government and the Minister in taking forward the regulations and ensuring that they address the concerns that have been expressed, we must also make the most of an opportunity to consider wider issues of building safety. In London, for example, there are significant numbers of Bison blocks, constructed with pre-stressed concrete—at the time, it was considered a wonder material and a means of delivering significant numbers of new homes efficiently and at a low cost—which have particular structural risks around them that local authorities across the capital and the wider country have had to address. We have also heard a little bit about the role of the fire service in carrying out inspections and prosecutions where properties are found not to meet the fire regulations.
All those points are indicators of risk across the system, and there is an opportunity for Government to ensure that Ministers have a clear line of sight so that such indicators can be effectively addressed. If there is a role for we politicians to play in local government and here in Westminster, it is to ensure that all these other people are doing their job. I promise that the Opposition will support the Government as they seek to achieve that, and I hope that together we will be able to take this work forward effectively, so that all our constituents can sleep safely in their beds.
With the leave of the House, I will close this debate for His Majesty’s loyal Opposition.
It has been a very constructive debate, with a wide range of contributions from Members. I congratulate all Members who made their maiden speeches. It was striking that they covered a huge range of different issues which have been debated and will be debated in this Parliament. I was particularly struck by the expertise shown in areas as diverse as local government, housing, electronics and support for refugees, all of which, I am sure, will play a significant part in the future. I would also like to put on record my thanks to my hon. Friend the Member for Bromley and Biggin Hill (Peter Fortune) for his very entertaining maiden speech.
The hon. Member for Sheffield South East (Mr Betts) made some observations about the Hackitt review and the liability of construction material manufacturers for the consequences of significant problems in the buildings in which their materials are used. As the Minister said, the £5.1 billion building safety fund, which was put in place in the previous Parliament, is a significant step towards addressing those concerns, but it is clear that that is just one example of the many issues that need to be addressed. I have a list of points to put to the Minister, and I hope we will be able to work constructively together as we take forward a variety of legislation.
A couple of Members touched on personal evacuation plans. A consultation took place in 2022, in which a wide variety of stakeholders were invited to express their views. A key concern raised by the Local Government Association—I declare an interest as a parliamentary vice-president of that organisation—was that current legislation implies that there is a duty on local authorities and social housing providers to anticipate, without having to be asked or informed by residents, the needs of those who may require special arrangements for evacuation in the event of an emergency. It is clear from feedback across the sector that, where there is no expectation that a tenant or an occupier will advise a particular individual or authority, that presents a significant challenge. I suggest to Ministers that as they bring forward the Government’s response, that issue is addressed with a high degree of clarity, so that everybody knows their responsibilities and where they stand.
I was struck by observations made by a number of Members about particular challenges, including issues with fire doors and latent defects in buildings, which may not be spotted at the time of a building regulations inspection. I have personal experience of working in a local authority that commissioned a school; we discovered afterwards that the fire doors, which looked robust and solid, only went up as far as the suspended ceilings that had been installed by the contractor. In such an example, the individual doing the building inspection may need to have a significant part of the building taken apart so that they can carry out their duties and see what needs to be done. We need to ask ourselves how we can ensure that that enforcement is seen as reasonable by contractors and can be resourced effectively by local authorities, so that latent defects in items such as fire doors and fire stopping do not arise and create risks that simply cannot be effectively managed for the future.
A number of Members made reference to the longer-term history of the current set of building safety challenges. I am well aware, having been in local government throughout that period, that the approach taken by the previous Labour Government was to create arm’s length management organisations for housing. Some Members, including the hon. Member for Burnley (Oliver Ryan), made particularly positive references to the last Labour Government’s retrofitting programme. I simply urge Members, as they begin to think how they would wish to resource some of this work in the public sector building stock, to ensure that we do not see a return of that approach: “Let’s create arm’s length management organisations, load them with the debt so it isn’t on the Government’s books, and then expect them to carry out the work.”
The number of arm’s length management organisations has diminished. There was a time, under a previous Labour Government, when local authorities could not access that funding unless they set up an arm’s length management organisation. A small number of those organisations remain, but the vast majority of local authority areas have determined that it is more efficient to do this work directly and in-house. Having a higher degree of control, visibility and accountability for that work is a step forward, so I urge those who might be tempted by the view that arm’s length bodies are the way to leverage additional funding into the sector without it appearing directly as a cost to Government to avoid that approach. We should be absolutely clear about the route for the provision of those resources, and about the accountability for them.
In her maiden speech, the hon. Member for Chippenham (Sarah Gibson) made reference to flooding as an example of an additional issue that gives rise to building safety and resilience challenges. Although it was not touched on in today’s debate, we also need to reflect that this House has in the past had to get to grips with issues such as the impact of legionella and the significant building regulation changes needed to ensure that very vulnerable residents are not placed at risk by a failure to carry out the proper inspection of building safety systems, and has had to ensure that building regulations and installed systems are functioning as they should to keep people safe from that particular risk.
This wide-ranging debate has touched on many different elements of the building safety and resilience world, and I hope that that will inform Ministers’ thinking. However, I have a particular question on which I want to press them for an answer. At the beginning of the debate, we heard from the Under-Secretary of State for Housing, Communities and Local Government, the hon. Member for Bethnal Green and Stepney (Rushanara Ali), about the decision to return to, or enable, the use of the EU standards relating to construction materials. I know that mention of EU standards has a triggering effect on some Members; it does not have that impact on me, because I am a strong supporter of close co-operation with our neighbours.
I think that the Minister was probably referring to the written ministerial statement of 2 September, in which the Government announced the decision to remove the end date that had previously applied—the date by which CE-marked construction materials could be sold within the UK market—and to allow those products to continue to be supplied to that market with no end date. That strikes me as a reasonable decision, but I should like to have a specific assurance on one point. The EU regulations on the fire safety of construction products date from 2015, and those are the relevant regulations applying to products that meet the CE-marked standard. That was, of course, before the Grenfell Tower disaster occurred. UK regulations were updated in response to the disaster by the previous Government, in 2018, and took account of the specific risks relating to construction materials that were identified in the initial phases of the report.
May I ask the Minister to assure the House, from the Dispatch Box, that following the Government’s decision to set aside the end date by which only the CE mark was required and to allow UK standards to be effectively set aside, the standard of the products that are imported to the UK meet at least the 2018 UK post-Grenfell fire safety standards? Otherwise, there is a risk that products that we would not be satisfied to see installed in buildings and that have given rise to serious concerns in the past may continue to be supplied to the market because they meet those EU standards, even though they may not meet the new UK standards.
Many of my constituents are extremely concerned for their safety. They are living in constant fear because of building safety and resilience issues. I am sure the shadow Minister agrees that the pace of remediation has been too slow in the seven years since the Grenfell tragedy. Does he also agree that firm action needs to be taken by developers, freeholders, manufacturers and other organisations, and that the Government must push to ensure that the pace of remediation is quickened?
I entirely agree about the need to ensure that this work happens apace. During the debate, the contributions from the likes of the hon. Members for Sheffield South East and for Runcorn and Helsby (Mike Amesbury) demonstrated the complexity of some of the issues with which Governments of all parties have wrestled over the years. I have the insulation material that was identified in the Grenfell report in my own home, because in certain applications it is considered to be within building regulations. We know that this is not a straightforward process, and we need to ensure that building regulations have the absolute clarity that local authorities require. That is why I press the Minister on this point: can we, as a House, be confident that the consequence of that written ministerial statement will not be a risk of materials that do not meet the standards that we imposed in 2018 being imported and sold into the UK market?
It is clear that there will always be a debate, not just in the context of housing but in the context of any complex public service in this country, between those who think that the best approach for regulation is to specify the outcome that we want to see—we want the resident to be safe in their home, we want the child to be safe in the children’s home and we want the patient to be safe in hospital; that is very similar to the approach taken in the aviation sector, which was mentioned earlier—and those who argue that the best approach is for Parliament and other relevant authorities to specify the precise safety features that we wish to see installed.
Each of those approaches has strengths and weaknesses. The previous Government, particularly in the early years, were keen to focus on the safety outcome that was being pursued rather than to specify individual measures that had to be taken, partly out of concern that those individual measures might not be as effective in practice as they needed to be. It is clear from the contributions by Members of all parties that they understand the complexity of this debate. The Minister will have to make decisions as we consider the future of building regulations. Does Parliament specify that there has be a sprinkler system in one building, but a mister system in another? Are we going to specify that there has to be a dry riser in one type of building, and a wet riser in another type of building? Or are those simply matters that we prefer to leave to local building control services, while specifying the level of safety that we expect to achieve? All of these are important elements in this complex debate.
As I said in opening for His Majesty’s loyal Opposition, we are determined to carry forward the work that we did in the last Parliament, largely in partnership with Labour Members, on fire safety and building safety. Those pieces of legislation inevitably require the current Government to provide guidance to local authorities, building control services, builders, construction firms and other parts of the sector. By working together constructively to support the effective implementation of those measures and provide absolute clarity on the expectations, we will achieve our shared aim of ensuring that all our constituents know that the buildings in which they live and work, and in which they are educated and receive medical treatment, meet the relevant safety standards and are environments and places in which they can safely go about their daily business.
I am grateful for that kind offer. Of course I will readily accept a visit to Burnley—perhaps through the lens of my role as the local growth and towns Minister. We could have a very interesting visit and I would be glad to do it.
I am conscious of the time; I am going to run out of it, unthinkably. We may have to pick up any further interventions in a different form, because I want to get to the points about buildings insurance, lending and service charges raised by my hon. Friends the Members for Runcorn and Helsby (Mike Amesbury), for Eltham and Chislehurst and for Newcastle-under-Lyme (Adam Jogee).
One thing we know is that there has not been enough change in this space over the past seven years, but there has been change in the insurance bills that many leaseholders have been facing. We understand the financial and emotional impact that extreme insurance premiums have been having on leaseholders. Affected leaseholders have been burdened with paying too high premiums for too long. I assure colleagues that we are working actively to reduce premiums for leaseholders, and we are reviewing how better to protect leaseholders from costs and push for fair premiums for leaseholders in buildings with fire safety issues.
Colleagues have talked about buying, selling or remortgaging homes. We have seen improvements in that space, but we remain vigilant. We will continue to hold particularly the 10 largest lenders to account following their commitment to lend on properties even where remediation is not yet complete. They must keep that promise.
On service charges, by law, variable service charges must be reasonable. As colleagues have raised, that has been stretched significantly by some of the practices we have seen. The Leasehold and Freehold Reform Act 2024 contains measures to ensure that leaseholders get key financial and non-financial information so that they can scrutinise and hold to account the organisations that they are working with on service charges. Not all of that legislation has been commenced; secondary legislation is required, but we are working on that actively. We just want to get it right.
My hon. Friend the Member for Reading Central (Matt Rodda) talked about the pace of remediation. Again, we accept that the pace is too slow; we have said that throughout, and what we have seen in Dagenham and Slough are horrific reminders of the risk that unsafe cladding still poses to far too many people. The Deputy Prime Minister has been very clear on her intention to drive that forward—again, there is that political will—and to get more action out of manufacturers, freeholders, developers and organisations with responsibility for making sure that buildings are safe. Too many building owners are still not acting quickly enough, so we will investigate, pursue the most egregious actors who are creating unacceptable delays, and hold them to account. The message from this Dispatch Box and from this Government is clear: “Use the routes we have created to get your buildings fixed, and get on with it.”
I now turn to the points made by the right hon. Member for Islington North (Jeremy Corbyn) and the hon. Member for Coventry South (Zarah Sultana) about the inquiry. The right hon. Gentleman expressed concern that the report would be shelved, and the hon. Lady was concerned that it would just be words, so again, let me make the commitment—this speaks to the response I gave to my hon. Friend the Member for Brent West (Barry Gardiner)—that the report’s recommendations must be considered with the seriousness that this tragedy deserves. We will look at all 58 recommendations in detail; there will be a debate on the Floor of this House; we will respond in full within six months; and we will be listening to the community throughout the process. We will update Parliament annually on our progress so that we can be held to account, but we will also get on quickly with the things we can do, whether that is speeding up remediation or reforming construction products. The change has not been at the pace that it ought to have been, but it will get better. I can commit that the report will not, as the right hon. Gentleman has said, just be shelved—far from it.
The hon. Members for Surrey Heath (Dr Pinkerton) and for Woking (Mr Forster) mentioned buildings under 11 metres. Our approach to cladding remediation has been to prioritise the risk of loss of life. It is generally accepted that the risk to life is proportional to the height of buildings, so the risk to life is usually lower in buildings under 11 metres, and they are very unlikely to need the same costly remediation. Building safety remediation works may be required in a very small number of those buildings, but so far, our casework as a Department over the past couple of years shows that of the more than 160 cases that have been raised, only three have fallen into that category. As such, we think that is an appropriate distinction to draw.
My hon. Friend the Member for Alloa and Grangemouth (Brian Leishman) made a point about RAAC. This issue is different in Scotland than it is in England: Scotland has its own responsibilities, which the Scottish Government must work within, and as I said to my hon. Friend, we will work within the best practices too. It is the duty of building owners, including local authorities if they are the owner, to fulfil their duties to manage building safety and performance risks of all kinds—including RAAC—in a proportionate manner.
The shadow Minister, the hon. Member for Ruislip, Northwood and Pinner (David Simmonds), talked about personal evacuation plans, or PEEPs. We must ensure that the most vulnerable in our society are protected. On 2 September, through a written ministerial statement, the Government announced that the Home Office will bring forward in the autumn proposals to improve fire safety and the evacuation of disabled or vulnerable residents in high-rise and higher-risk residential buildings in England. Those proposals will be called residential PEEPs. Through them, residents with disabilities and impairments will be entitled to a person-centred risk assessment to identify the appropriate equipment and adjustments to aid their fire safety and evacuation, as well as a residential PEEP statement that says what vulnerable residents should do in the event of a fire. The Government have committed funding next year to begin that important work by supporting social housing providers to deliver PEEPs for their renters.
The shadow Minister also mentioned product hallmarks. We stand by what was said in the written ministerial statement—I would have hoped that gave enough confidence —but for clarity, this is about stronger standards, not weaker standards. I hope the hon. Gentleman can take confidence from that.
I would just like to press the Minister for the assurance I am seeking: that the Government have taken steps to ensure that all products that meet the 2015 European standards, and therefore are within the scope of what the hon. Member for Bethnal Green and Stepney (Rushanara Ali) said in the written ministerial statement, will also—as a minimum—meet the 2018 post-Grenfell UK standards.
My colleague and hon. Friend, the Minister for building safety, has heard that intervention. As I say, everything that we have said is about higher standards, not lesser standards, but my hon. Friend will write to the hon. Gentleman about the issue he has raised. Again, I hope that I can assure him that this is about greater standards, not lesser ones.
To conclude, as the Prime Minister made clear, the Grenfell Tower tragedy was the result of unacceptable, inherent and systematic issues and decades of failure from both industry and Government. It is going to take political will to change that, and we offer it.
Question put and agreed to.
Resolved,
That this House has considered building safety and resilience.
(4 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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It is a pleasure to serve under your chairmanship, Sir Mark. I add my congratulations to the hon. Member for Birmingham Edgbaston (Preet Kaur Gill) on securing today’s debate. I must draw attention to my entry in the Register of Members’ Financial Interests because, like the hon. Member for North Shropshire (Helen Morgan), I am also a member of the LGA’s parliamentary team of vice-presidents.
I recall from my work on the Kerslake review into the governance of Birmingham city council that it has the highest proportion of residents needing to access social care during their lifetime of any local authority in England. The level of need is patently particularly acute, which is why one of the five pilots introduced following the “Supported housing: national statement of expectations” in October 2020 was in Birmingham.
Anybody with local government experience will be familiar with these challenges, which go back many years. They often result from reforms, such as those in the 1980s with care in the community, those in the late 1990s with the fair access criteria, and the introduction of extra care housing supported living. They all had a high degree of cross-party support based on the idea of improving the level of independence and autonomy that could be provided to people who need extra support through a combination of housing and social care.
All Members’ inboxes will contain at least some examples of concern about abuses in the market; some examples where the quality of care provided is not reaching the appropriate standard; and, of course, some examples where the quality of care is exceptional and supports our constituents to enjoy the fullest, most autonomous life and the greatest degree of independence in pursuing their interests. As we have heard, in response to the abuses that were identified in the market, my constituency neighbour, my hon. Friend the Member for Harrow East (Bob Blackman), brought forward a private Member’s Bill, which was adopted by the Government and enjoyed cross-party support in the last Parliament, with a view to bringing a clear legislative and regulatory focus to the sector.
As we know and have heard in the debate, the combination of challenges around resourcing the implementation of that measure—for example, the ability of local authorities to make good use of feedback from residents who may be extremely vulnerable, and ensuring that that new regulatory environment is enforceable when it sits outside of the planning system to a great degree, as the hon. Member for Birmingham Edgbaston identified—remains significant.
When we consider recent work, it seems that the Minister has a great deal to build on. As has been highlighted, there has been a good degree of cross-party support for improved measures to address the issue, and, following the publication of the “Supported housing: national statement of expectations” and the implementation of the five pilots, an evaluation was published in the last Parliament, around April 2022. A written ministerial statement from the then Minister, Eddie Hughes, set out the future plans and funding aimed at implementing the regulation that those pilots had identified as being necessary. That work led to and fed into the Supported Housing (Regulatory Oversight) Act 2023 and interacted with the Social Housing (Regulation) Act 2023. The issue was also the subject of a Levelling Up, Housing and Communities Committee inquiry in 2021.
The debate and discussion in Parliament has significance only in so far as it can be implemented at a local level. Both the Select Committee inquiry and the learning from those pilots was very clear that local authorities need to have sufficient resource and flexibility to implement it at a local level. I welcome the fact that, in the previous Parliament, the Government provided a £20 million fund to begin ensuring that all local authorities could learn from that and had a degree of resource. However, it is clear from the level of wider need, and in particular, from the emerging evidence of market abuse not just in this sector but in areas such as children’s homes and care homes, where significant rip-off fees are being charged by some providers for a service that is simply inadequate to meet the needs of those residents, that further work is needed. Clearly, the Minister has taken office at a time when the Department has accumulated a high degree of evidence as a result of the pilots, the debates and the work done in the previous Parliament. I hope that that will be enormously useful in ensuring that the expectations set out in that Parliament can be fulfilled.
I would like to add my support on this matter. I do not think that this Minister is responsible for planning, but the point that was made about how we support the identification of exempt accommodation through the planning process is important. I think we all recognise that this is a marketplace in which we have a combination of local authority providers, private providers, charities and voluntary organisations, and we do not wish to place undue impediments in the way of those who wish to convert existing buildings—for example, houses in multiple occupation—to provide additional support to residents who may be able to make the most of it. At the same time, in all communities, in order to avoid the problems we have seen—with particular settings, for example, requiring a high degree of police and law enforcement input—there needs to be that earlier identification process.
As the Government bring forward their proposed review of the planning system, I hope the Minister and her colleagues will give some consideration to how changing the use classes that relate to exempt accommodation or making that part of a wider review—for example, of change of use of residential accommodation to become children’s homes, houses in multiple occupation, care homes and so on—would enable the earlier identification of sites and input to be gathered from the likes of police and NHS services. That would then influence the planning committee in deciding whether a location was appropriate in order, for example, to avoid the clustering of problem locations. As we have seen in the past with local authorities at the coast, we may find a combination of bail hostels next to children’s homes next to asylum accommodation, all of which can create a very challenging social mix for a local authority and other local authority services to deal with.
This has been a very helpful debate. I again congratulate the hon. Member for Birmingham Edgbaston. I hope that the Minister will be able to build on the constructive work done in the last Parliament and that we will see that feed into a significant change in the experience of the most vulnerable people, who need to access exempt accommodation, but also in the communities in which it is located and their experience of it in the coming years.
(4 months, 1 week ago)
Commons ChamberWe share the ambition of seeing a big increase in the supply of housing, and of social housing in particular. Given that there are around 1.4 million new homes with planning consent already granted in this country, what process led the Government to prioritising the removal of green-belt protections rather than building the homes for which our councils have already given consent?
What I would say to the hon. Gentleman is that we are doing both. We are making changes to the national planning policy framework to encourage the release of the right kind of lower-quality grey belt land within the green belt, and we are taking action to ensure that those sites across the country that have received consent but which are stalled or are not being built at the pace required, are moved along with additional support from the centre.
The previous Government made new measures available to local authorities to encourage borrowing against the housing revenue account to enable the creation of new council housing. What measures do the Government have in mind to increase the take-up of this approach by our local authorities?
We are committed to working with councils, including with the signatories of the recent report on securing the future of council housing, to address the many challenges they are facing, including in connection with the housing revenue account headroom as many of them are feeling lots of pressure on that front. As a first step, we have given councils more flexibility to increase the delivery of council homes using right-to-buy receipts, and allocated an additional £450 million to councils to secure homes for families at risk of homelessness. We will set out plans at the next fiscal event to give councils and housing associations the rent stability they need to borrow and invest in new and existing homes.