Leaseholders and Managing Agents

George Howarth Excerpts

Tuesday 28th February 2023 Westminster Hall

[Sir George Howarth (in the Chair)]

We are expecting a Division at any moment. When it is called, there will be a 15-minute suspension to enable Members to go and vote, but if there are two votes, there will be a 25-minute suspension, so do the maths.

[Barry Gardiner (Brent North) (Lab)]

I beg to move,

That this House has considered leaseholders and managing agents.

I am grateful to present this debate under your chairmanship, Sir George, because I know that you have significant involvement with your local leaseholders in Knowsley, for which they are very grateful. Saying the word “leasehold” to any Member of Parliament is likely to begin a long conversation on one of two things: fire safety or service charges. I could have phrased that better: it would be more accurate to say “unsafe homes caused by fire safety defects” and “rip-off service charges by unscrupulous managing agents”.

For many people, the issue of leasehold crystalised after the tragedy of the Grenfell Tower fire and the subsequent purgatory that hundreds of thousands of residents throughout the country found themselves living through as they waited to have their own buildings’ fire safety defects remediated. They are still waiting. It was about much more than cladding and EWS1 forms. Residents who found that their homes had been constructed without internal fire stopping, or with inappropriate materials or inadequate fire doors, were unable to sell their property and move on with their lives because construction companies, project managers, surveyors, developers, freeholders, building control, the National House Building Council and managing agents all sought to pass responsibility among themselves. Nobody wanted to pick up the bill for remediation.

In truth, the debate about a wholesale reform of leasehold goes back much further. In the modern era, it starts almost exactly 50 years before 14 June 2017, with the Leasehold Reform Act 1967, which gave qualifying long leaseholders of houses the statutory right to buy the freehold of their homes. In 1969, a problem arose: the Lands Tribunal ruling in Custins v. Hearts of Oak Benefit Society noted that the 1967 Act treated the open market for the reversion of the lease as including marriage value. That is why the Government promptly and rightly reversed that decision with section 82 of the Housing Act 1969. They did not wish to artificially increase the cost for people wishing to buy the freehold of their own home.

To see the injustice of marriage value, one need only to consider the price difference on the open market between a leasehold flat with a 125-year lease and the same flat with a share of freehold. The difference is nil, yet the first is on a yo-yo tender, whereby an owner, such as the Duke of Westminster, sells for the full market value, only to receive the entire property back at the end of the lease, allowing him to sell it all over again or, more often, to receive a large payment to extend the lease when the reduction in the term risks being so short that no lender will advance a mortgage on it and the property becomes unsaleable by the leaseholder, who sees the value of their asset diminishing to zero.

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[Mike Amesbury (Weaver Vale) (Lab)]

I thank my hon. Friend for securing such a vital debate. Here we are again. The National Leasehold Campaign—

[Sir George Howarth (in the Chair)]

Order. The Division bell has gone. If the hon. Member finishes his intervention, he might get a response when we come back, but he should be brief.

[Mike Amesbury]

Isn’t it time to abolish, rather than polish, the leasehold system?

[Sir George Howarth (in the Chair)]

Order. The sitting is suspended. If there is one Division, we will suspend for 15 minutes; if there are two, it will be 25 minutes.

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On resuming—

[Sir George Howarth (in the Chair)]

Order. I think most people have now returned, so we can restart if people are ready to do so. Barry Gardiner was about to deal with an intervention from Mike Amesbury.

[Barry Gardiner]

Indeed, Sir George. My hon. Friend the Member for Weaver Vale (Mike Amesbury) is no stranger to witty epithets, and his suggestion that we should stop polishing and start abolishing was absolutely right.

Before I turn to some egregious instances of service charges and call out by name some of the managing agents that have played fast and loose with the Landlord and Tenant Act 1985, which provides that service charges must be “reasonable” and that services and works must be carried out to “a reasonable standard”, I wish to acknowledge some of the individuals who have championed the cause of leasehold reform over many years.

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[Several hon. Members rose—]

[Sir George Howarth (in the Chair)]

Order. I am going to impose a five-minute limit on speeches, in order to get everybody in.

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[Several hon. Members rose—]

[Sir George Howarth (in the Chair)]

Order. I am going to have to start calling the Front Benchers at 5.23 pm, so I will reduce the speaking limit to three minutes.

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[Munira Wilson (Twickenham) (LD)]

In my constituency of Twickenham, we do not have many high-rise blocks of flats, but we have quite a lot of low-rise blocks. I have had two cases come to me relating to two different blocks of flats in Twickenham, in which managing agents have wrongly commissioned fire safety assessments for buildings under 18 metres. In one case, the report has been shown to be flawed. The residents cannot sell their homes; they are trapped. In the other block, residents are potentially being charged up to £800,000 for remedial works that are not needed.

[Sir George Howarth (in the Chair)]

Order. Interventions should be brief, particularly given the time pressure.

[Florence Eshalomi]

I thank the hon. Lady for making that important point. That is the real insult that leaseholders face up and down the country: being forced to pay for the management of a block, even if the agent is not providing a worthwhile service. It is a slap in the face.

The sums we are talking about are not cheap; most end up being hundreds of pounds every year for leaseholders. We have to be clear that not all managing agents are like this; some are professional and diligent, and a number of them do a lot of great work. But the fundamental problem is that, whether agents are good or bad, leaseholders have no power to hold them to account. They do not even have a proper regulatory body that they can appeal to to enforce standards. Current arrangements leave leaseholders on the hook for almost everything, without having a say in how their building is managed.

The root of the conflicting motivations at the heart of this issue is the managing agents’ role. The problem is that, ultimately, they are not employed by the people who are paying—the leaseholders. We need freeholders to be accountable, and we need to ensure that they take responsibility.

I will leave my remarks there, but I hope that the Minister will hear the pleas from Members this afternoon. Instead of giving us warm words and telling us that he has heard us, he needs to outline a concrete plan for what he and the Department are going to do to empower leaseholders in a system where managing agents can be properly held to account, and we need a clear timescale for that work. My constituents in Vauxhall and leaseholders up and down the country cannot afford to wait any longer.

Non-commissioned Exempt Accommodation

George Howarth Excerpts

Wednesday 23rd February 2022 Commons Chamber

[Lisa Nandy]

I defer to my hon. Friend on that. She has been a superb champion for housing reform in this country over many, many years, including under the last Labour Government, and particularly in the past decade when we have seen exactly what she describes unfold. She has done more to reform and tighten up the law in this area through the Homes (Fitness for Human Habitation) Act 2018 than the Government have done in the past 12 years, so, absolutely, I defer to her on that.

[Sir George Howarth (Knowsley) (Lab)]

I am grateful to my hon. Friend for giving way. Does she also agree that one problem with the shortage of housing supply is that Government support goes in completely the wrong direction, particularly in terms of buy to let, which I will speak about later if I get called, whereby billions of pounds are going to support private landlords?

[Lisa Nandy]

My right hon. Friend is right: it is a waste. It is a waste of human potential, a waste of good, thriving neighbourhoods, and a waste of taxpayers’ money. It is more than that actually. The distortion in the housing market in these communities means that working families are being priced out of good, viable family homes. Other social tenants cannot access them either; when a person cannot get enhanced housing benefits, they are subject to the local housing allowance. The regulation is non-existent. Providers are exempt from planning and licensing laws that enable councils to limit the types and proliferation of houses of multiple occupation. The social housing regulator does not have the powers to deal with rogue operators as they set themselves up as small operators outside the direct oversight of the regulator. The effect of all of that is that whole streets and communities become saturated with family homes that are converted into HMOs, providing exempt accommodation and housing vulnerable tenants who are left without support. That creates problems for the whole community, and it is all happening in plain sight.

What is worse is that the people who are most affected—as I said to the hon. Member for North West Durham (Mr Holden)—are those who cannot do anything about it. Only the Government have the power to make changes for the better, which is why today we are calling for a package of emergency measures to set this situation right.

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[Sir George Howarth (Knowsley) (Lab)]

I thank the Minister for the tone of his response to my hon. Friend the Member for Wigan (Lisa Nandy). Perhaps we can wait to see whether the actions match that tone. I take issue with him on a point he made a few moments ago, which was that this is not a political issue. For as long as this issue exists, without any further regulation or resources to resolve it, it is political. We are not necessarily trying to turn it into a party political issue, but we need a political solution to sort it out.

I rise to support the motion in the name of my right hon. and learned Friend the Leader of the Opposition, my hon. Friend the Member for Wigan and others. My hon. Friend the Member for Wigan put the case with characteristic clarity and force, so I will not repeat her arguments. I do, however, support the approach of the homelessness charity Crisis, which calls on the Government to outline when they plan to publish the findings and evaluations of exempt accommodation pilots in Birmingham, Hull, Blackpool, Bristol and Blackburn. The Minister referred to those pilots a few moments ago in his speech, and I did not see in anything he said any reason why their findings cannot be published. Will he reflect on whether it would be helpful if a lot of other organisations had the opportunity to look at those findings and make helpful suggestions?

Secondly, Crisis calls on the Government to identify ways to close loopholes in the regulatory frameworks that oversee the provision of exempt accommodation, while at the same time ensuring that local authorities are adequately resourced and supported to implement that oversight framework. As others have made clear, local authorities cannot do what they do not have the powers or resources to do. Thirdly, Crisis calls for an improvement in the data captured about exempt housing benefit claims, so that future statistics can provide an accurate picture of the scale of the provision and trends. Finally, it calls on the Government to develop and strengthen the national statement of expectations for supported housing, so as to provide an effective quality assurance for all forms of exempt accommodation. If the Minister has not already read those recommendations, I hope he will look at them and consider where he can go with them in the short term, because they are important.

For the remainder of my speech I want to deal with the broader context of the problem as referred to in the motion, such as the way the private rented sector is regulated, buy-to-let support from the Government, and how financial support is given. There are currently—even I was shocked by this—4.4 million households in the country who rent their homes from a private landlord. That figure is from 2019-20, so it is likely to be an underestimate of the true scale. The English housing survey of 2019 estimated that 23% of homes in the sector—about 1.1 million—do not meet the decent homes standard. That compares with just 12% of homes in the social rented sector, which is still unacceptable but considerably lower. There is genuine cause for concern that local authority enforcement powers cannot be used as consistently and forcefully as they should be, because of the resources and appropriate regulations. As the Marmot review concluded, that has an impact on the health, safety and wellbeing of those who rent from private landlords. In Knowsley, we have about 7,300 private renters—people who rent from private landlords—who are a considerable source of complaints that I have to try to deal with, as the local MP, along with local councillors. I am sure that other colleagues find the same.

A report by the Collaborative Centre for Housing Evidence published in August 2020 made these recommendations, which I fully support. First,

“advice and guidance available to local authorities on regulating”

the private rented sector should be improved. Secondly, local authorities need better data on the private rented sector in England, so

“a national registration system of all landlords and letting agents should be introduced”

—and that should be done quickly.

Thirdly:

“Local authorities should receive, and allocate, adequate funding to develop appropriate and effective responses to the changing nature and context of the PRS.”

Fourthly:

“Clearer sentencing guidelines need to be provided to criminal courts and tribunals to ensure that punishment is proportionate to the nature of the offence.”

Finally:

“Trading standards should have the power to serve civil penalties against the company directors who are the controlling figures behind a non-compliant company.”

It is fair to conclude that the power imbalance between tenants and private landlords puts tenants at a risk of eviction or rent rises when they legitimately seek repairs and maintenance to their homes. The same concerns apply to exempt accommodation, where people are in a vulnerable situation and unable to use the resources available to them to pursue that.

There is also concern about a lack of understanding of rights and responsibilities on the part of landlords and tenants. Research commissioned by Citizens Advice in 2019 entitled “Getting the house in order: How to improve standards in the private rented sector” highlighted the lack of understanding and knowledge of housing in the private rented sector. It found that nine out of 10 tenants did not know whether a repairing responsibility was theirs or their landlord’s—how can they assert their rights when they do not know what they are? One in four landlords were unable to correctly identify any of the potential outcomes of failing to meet their obligations towards tenants, and one in three landlords found it difficult to keep up with rules and regulations. If the people letting properties do not understand, what chance have the tenants got?

I return to the buy-to-let scheme and its effect on the sector. What public policy objective does the scheme and increases in the private rented sector serve? It is worth noting that the number of people with property wealth outside their main residence rose from 3.6 million in 2001 to 5.5 million in 2014-15. I have been unable to find more up-to-date figures, but, again, that almost certainly underestimates the picture now. Buy-to-let is the largest contributing factor to the growth of private landlords. The system is attractive for landlords because they get mortgage interest tax relief on private rented property and, tragically, because shorthold tenancies enable them to evict tenants easily. But it is hardly a panacea for giving tenants more security of access to decent homes.

In the eight years from 2008 to 2016, additional properties, which includes second homes—people have them for all sorts of reasons; I do not question that—accounted for £6 trillion of property wealth. That is a staggering sum—we talk about international conflicts costing that sort of money—and that requires us to pay serious attention to it.

According to the English Private Landlord Survey, there are some 1.5 million private landlords, while other studies put the figure as high as 1.7 million. Either way, it is a source of prolific growth that has led to further intergenerational inequality. Second homes are owned by some of the wealthiest members of each generation, including private landlords, and predominantly by those born in the 1950s and 1960s. The net effect is that more of today’s young adults will not be able to become homeowners and will have no choice other than to rent in the private rented sector.

The policy implications of those trends are that additional properties should be taxed at least as heavily, if not more so, than primary residences. The Resolution Foundation’s commission on intergenerational inequality recommended: halving the rates of stamp duty on main properties at a cost of £2.7 billion across Great Britain in 2020, with existing first-time buyer reliefs retained; introducing a time-limited capital gains reduction for owners of multiple properties looking to exit the market when they sell to a first-time buyer; and replacing council tax with a new progressive property tax, which I think is widely accepted as important and necessary.

As I move towards the end of my speech, it is worth returning to the question I posed earlier: what public policy objective does the buy-to-let scheme and the consequent growth of private landlords serve? Given that a decent home should be a right, it cannot be the case that in a prolonged period of a national shortage of housing, which was referred to earlier, the source of additional housing should be through private landlords who, at best, see them as a source of profit and, unfortunately, in some cases, as a way of laundering dirty money, whether from home or abroad. From my own city region and my own constituency, I know that a lot of drug money is being laundered into private landlord lets. In some cases—the Government really should be worried about this—I suspect they are being subsidised by the Government through the buy-to-let scheme. That, surely, cannot be an acceptable way to deal with things.

The Government should be helping people in housing need into either the social rented sector or owner occupation. That applies equally to exempted property. As a country, we urgently need to change direction, so that the right to a decent home is a primary policy objective and that the onward march of the private rented sector is halted in its tracks.

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[James Daly (Bury North) (Con)]

It is a genuine honour to follow the hon. Member for Westminster North (Ms Buck). We have sat through many meetings of the all-party parliamentary group on legal aid over many months. She personifies the best of this place, in that what motivates her is hopefully what motivates all of us here: the desire to find solutions. Solutions are never simple, however, and this is a very important debate on a hugely significant issue.

Many different strands feed into the solutions that we need to address this issue, but the underlying problem—dare I say it—is one of levelling up. The sector contains accommodation that is provided for those with support needs. It is the aim and desire of this Government’s policy, of the Opposition and of every politician here that the solutions to those support needs are bespoke and are seen to help, to drive forward change in a person’s life and to give them the best chance to enrich their life with positive experiences. However, that is not happening. In certain parts of the country, rogue landlords are charging the taxpayer a fortune and essentially providing no support whatsoever. That is absolutely morally bankrupt.

We are very lucky, in that the Minister for Housing, my right hon. Friend the Member for Pudsey (Stuart Andrew), is a genuinely good man. Having spoken to him about this, I know that the words he says are genuinely meant. He wants to find a solution. He wants to work with the Opposition, and I am delighted by the tone of this debate. He is a good man and I know that he will work to ensure that we have a response that is appropriate to address some of these needs. We have heard a number of interesting speeches, and the right hon. Member for Knowsley (Sir George Howarth) made a very good speech highlighting the housing market and buy to let. He asked what we as politicians wanted to do to set up a housing market that worked for people. I think he was suggesting—he will correct me if I am wrong—that we should ban second homeowners.

[Sir George Howarth]

I did say that there were also a lot of legitimate reasons for people wanting to own a second home. What I am concerned about is those who are acquiring additional properties just in order to let them.

[James Daly]

The right hon. Gentleman raises a fair point.

As I said in my intervention on the shadow Secretary of State, the motion says the sector is being impacted by

“a chronic shortage of genuinely affordable housing, reductions in funding for housing-related support, new barriers to access for single adults requiring social rented housing”.

I agree. For a single person in my borough it is nigh on impossible to get any accommodation whatsoever. As I said to my hon. Friend the Member for Hertford and Stortford (Julie Marson), I battled for 16 years to get housing for clients with the most acute social problems. I told court after court that unless these people were put somewhere with appropriate support and stable accommodation, the sentence imposed by the justice system would be pointless, because they would come back. I said the same thing time and again, and nothing ever changed.

We must be open and honest, and we must not be critical. We have to think about how we can improve the housing stock in all our boroughs. When I start my contribution by saying that we do not have enough housing for people in my borough, there is clearly something wrong and we have to do something about it.

We have a plan called “Places for Everyone” on Greater Manchester’s strategic housing need. It has been submitted to the Secretary of State, and I am sure it will come across the Minister’s path at some point. Such documents will affect all our areas, and certainly the areas that the shadow Secretary of State and I represent, for years to come. In a document of well over 300 pages, I can find virtually no reference to social housing or social rented housing. This is our strategic housing plan to meet the needs of individuals in Bury and elsewhere.

Throughout my 10 years as a councillor in Bury, I said that our housing stock is far too expensive. It costs more than £300,000 to buy a three-bedroom house in the vast majority of my constituency in the north of England, which is beyond people, certainly people with support needs. There is a glaring and obvious need to build social rented housing and genuinely affordable housing in Bury. There are brownfield sites in the borough that could be used for this purpose, and we still do not have it. We can talk about sticking plasters to address the problem, but we also have to focus on the long-term strategy to overcome it.

The only such provision in Greater Manchester’s strategic plan for the next 25 years says:

“Make provision for affordable housing in accordance with local planning policy requirements, equivalent to at least 25% of the dwellings on the site and across a range of housing types and sizes (with an affordable housing tenure split of 60% social or affordable rented and 40% affordable home ownership)”.

In a document of many hundreds of pages, that is it. That is literally it. There is no bespoke plan—the shadow Secretary of State has disappeared—whether it is in Wigan, Rochdale or wherever it may be. Unless we have that plan, social rented housing will not be at the centre of public policy. Local authorities cannot run away from this. The temptation of local authorities of all political persuasions is always to blame the Government for everything.

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[Stuart Andrew]

I take the point on board entirely.

Several Members have spoken about instances of antisocial behaviour and crime in their constituency that have been directly associated with this sort of accommodation. No one wants to see the proliferation of substandard housing and substandard services bringing down neighbourhoods and, in some cases, even acting as a magnet for antisocial behaviour and criminal behaviour. That is why we are working hand in hand with local authorities to help tackle this issue head on, while championing what we know works and, more importantly, what works well. For example, Hull City Council, one of the five local authorities I mentioned, decided to address the issue by tasking a dedicated antisocial behaviour liaison officer with improving community cohesion by working with landlords and tenants alike.

Other Members mentioned concerns about links to organised crime. It is extremely concerning that criminals may be exploiting vulnerable people and the benefits system. Any such instances much be reported quickly by the appropriate authorities and dealt with swiftly.

[Sir George Howarth]

Does the Minister accept that this is not just about supported accommodation? Some rogue landlords use the system to recycle the proceeds of crime, and they need cracking down on too.

[Stuart Andrew]

Absolutely. My hon. Friend the Under-Secretary is doing work on the private rented sector, so there is more work to come on that issue.

On rogue domestic abuse provision, I was shocked and appalled to hear the examples of poorly managed, poorly run and poor-quality refuge shelters for women fleeing domestic abuse. It is clear that such places have been anything but shelters from harm. Women fleeing violence have been deliberately misled to believe they will be offered real support and a safe roof over their head. It is not just morally wrong; it is often also illegal. I assure Members that my officials are engaging with councils on all such instances. Through the landmark Domestic Abuse Act 2021, we have given councils new powers and money—£125 million of Government money in 2021-22. That funding is provided specifically to boost the vital support that victims and their children need.

Local Government Finance (England)

George Howarth Excerpts

Wednesday 9th February 2022 Commons Chamber

[Sir George Howarth (Knowsley) (Lab)]

Before I get into the substance of what I want to say about this settlement, I want to make a couple of remarks to the Secretary of State. There was a debate yesterday in Westminster Hall on local government funding in Merseyside—the Liverpool city region, as we now call it—which was covered by the Under-Secretary of State for Levelling Up, Housing and Communities, the hon. Member for Harborough (Neil O’Brien). In his response, he chose not to answer any of the questions asked by me or my hon. Friends from the city region. The Secretary of State is unfailingly polite and always pays attention to what people say, so I say to him ever so discreetly—of course, no one else can hear what I have to say—that he needs to have a word with the Under-Secretary of State, who should understand that one of the basic requirements of replying to a debate is to respond to what people said during it.

Unfortunately, the local government finance settlement, as others have said, is still 20% lower now than it was in 2012-13. I will return to the implications of that for Knowsley, but I will first make some general comments, some of which have already been made, about the overall implications for local government. As my hon. Friend the Member for Wigan (Lisa Nandy) pointed out, it represents a one-year settlement and, in a typically fluent, well-informed speech, she made it clear why that is unacceptable. I simply add that it is impossible for local government to plan ahead unless local authorities know more than a year ahead—preferably three years—what they will receive in grants. I am sure the Minister and the Secretary of State are well aware that that is an impediment for local authorities, and I hope that they will address it in future settlements.

My hon. Friend also mentioned that the Government promised—if the Government deliver on this, I am sure that it will be welcomed—that the next settlement will better reflect local levels of need. That would be important if it did address the disparities in deprivation between local authorities in different parts of the country, rather than to continue with the shift towards sparsity and population-based measures, which are manifestly unfair on those areas with the greatest need. I therefore ask the Minister—perhaps he will take the time to answer this at some point—to confirm that need will be properly accounted for in any new grant distribution system.

There is also justifiable concern that if Knowsley does not increase council tax by 2.99%, it would forgo permanent funding that the Government might assume will be available when determining future funding allocations. Will the Minister reassure me that the Government will not penalise those local authorities that, for whatever reason, decide that 2.99% is unaffordable to their residents?

I also worry that the settlement will be insufficient to cover inflationary pressures—for example, democratic pressures, legislative cost pressures, and pressures as a result of the health and social care levy on national insurance and energy price rises of up to 50%. As my hon. Friend the Member for Sheffield South East (Mr Betts) pointed out, the general level is already above 5% and could, by the end of the year, be as much as 6%. That will mean that the settlement will be less generous than it appears to be at the moment. Will the Minister again give us some assurance that any additional inflationary pressures that influence the way that the grant will work for local authorities will be considered sympathetically?

The settlement includes funding for new burdens, such as adult social care, children’s social care and home-to-school transport. Unfortunately, however, it is wholly inadequate and will not cover, for example, the £12 million that Knowsley faces as a result of these additional demands.

I turn to the specific implications of the settlement for Knowsley. As the Minister will know, since 2010 Knowsley has had its grant support reduced by £116 million. That figure was referred to in a debate yesterday. The cumulative effect of that on a small borough such as Knowsley—the third most deprived authority in England, by the way—is enormous. It means not only that services that are badly needed by people cannot be extended or grown to meet need—I have referred to some of the pressures that brings—but that people’s life chances are impaired, sometimes irreversibly, by the lack of support that they get. That is nothing to do with any intention on the part of Knowsley; it is simply a matter of the money not being there to do everything that it needs to do. Will the Minister undertake to start the process of reversing that unfair and unacceptable trend whereby areas with high need, such as Knowsley, end up having some of the highest cuts in grant support anywhere in the country?

The picture I have painted so far is one of unrelieved gloom, particularly for Knowsley, so let me make a couple of positive points. First, as my hon. Friend pointed out, the 8.5% increase in core spending power that Knowsley will get is welcome, although, frankly, it does not do anything like address the problem of the £116 million that we have lost over the past decade.

Secondly, despite the crushing loss of grant that we have experienced, Knowsley Council, amazingly, managed to bring about some transformational changes, including the regeneration of Kirby town centre. As a result of the fact that there were years and years of successive private sector owners who failed to regenerate the town centre, the council, very bravely, bought it and is now in the process of wholesale regeneration, which is obvious for all to see. There is also the Shakespeare North project, which I do not know whether the Minister is aware of—probably not.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O'Brien)]

indicated assent.

[Sir George Howarth]

I am pleased to hear that, so maybe he is not completely a Shakespearean tragedy. The Shakespeare North project, into which, to be fair, the Government have put a substantial amount of investment, is a huge success. I pay tribute to the Government for putting money into the Arts Council, to Knowsley Council for putting in a substantial amount, and to the Liverpool City Region Combined Authority and metro Mayor Steve Rotheram for also contributing. I should also mention the private donors, including Lady Anne Dodd—the widow of Ken Dodd—who put £400,000 into the project for a comedy space.

Knowsley Council has been the driving force behind Shakespeare North, on which it should be congratulated, and much else besides that I do not have time to go into. However, there are important projects still awaiting Government support that we had hoped would come from the levelling-up fund, such as the regeneration of Huyton town centre. Knowsley Council put forward a really good project for regenerating Huyton town centre, and I totally reject the assertion that such projects were selected on merit alone because, frankly, this project would have been far better than some that were funded. As I said yesterday, there is real concern that the levelling-up fund has so far been politically skewed in a way that means Knowsley, yet again, loses out.

[Mr Kevan Jones]

Does my right hon. Friend agree that the Government’s fixation on competition for such funding is inefficient and is clearly being used by the Government as a pork barrel? It puts a lot of pressure on councils such as Knowsley Council, which have already faced cuts, to put in the officer time to make such bids. Would it not be better to scrap the whole nonsense of bidding for this type of funding?

[Sir George Howarth]

My right hon. Friend makes a typically forceful point, and I agree with him.

Frankly, it is pretty grim to say to one local authority, “You have to be set against another authority for any project, and it won’t necessarily be based on the need of the community; rather, it will be based on a political choice that might not reflect that need.” In Knowsley’s case, the decision does not reflect the need.

As I said earlier, Knowsley is the third most deprived borough in England and it received nothing from the levelling-up fund—it was not 0.1%; it was nothing. That cannot possibly reflect a fair distribution of those resources. I made that point to the Minister during yesterday’s Westminster Hall debate, and he did not respond. I hope he will now take this opportunity to do so. I suggest to him—again, he overlooked this yesterday—that he grants a meeting to me and Knowsley Council to discuss what can be done to get the funding we need through the levelling-up fund for the regeneration of Huyton town centre.

There are some small but encouraging signs that the Government might be beginning to recognise the gross unfairness that the last decade has meant for areas such as Knowsley. I give them a small amount of credit for that, but those of us who are more fair-minded recognise the importance of need. The Government are now talking about accepting need as an important part of funding mechanisms, but we do not yet have any evidence to support that assertion.

Finally—I notice you are looking at your watch, Mr Deputy Speaker, so I had better be quick—there was a time when I chaired the local authority finance committee and understood the distribution mechanism then, which was based on multiple regression analysis. I do not know whether the Minister is familiar with that, but I have to confess that I am not so well informed on the current mechanism. I am reminded of Palmerston being asked, many years after the event, to explain the Schleswig-Holstein affair, which was a border dispute between Denmark and Germany. He replied that only three people ever understood it: first, Prince Albert, who by that time was dead; secondly, Bismarck, who by that time had gone mad; and thirdly, Palmerston himself, and unfortunately he had forgotten.

When it comes to talking about local government distribution mechanisms and formulae, I feel I am very much in the Palmerston category, but I shall undertake to do better in future. I am sure that my hon. Friends the Members for Weaver Vale (Mike Amesbury) and for Wigan are now much more expert on the subject than I am. We welcome the fact that some small harbingers of change have been promised and will watch very carefully for them actually to come about.

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[Neil O’Brien]

Absolutely, and the hon. Gentleman anticipates the point I was about to make.

Of course, deepening devolution is one way of driving the integration agenda to save money and produce better services. The hon. Gentleman referred to the important health and life expectancy gaps, and the White Paper sets out the steps that the Department of Health and Social Care will take through its health inequalities strategy and its new tobacco strategy.

My hon. Friend the Member for South Dorset (Richard Drax) noted the importance of keeping taxes down, and I strongly agree. That is why the settlement keeps the increase to 2%, with 1% for social care—far lower than the double-digit increases we saw in many years under the Labour party.

I will reply at length to the right hon. Member for Knowsley (Sir George Howarth). This morning I relayed all the points raised in the important debate on funding in Merseyside to my right hon. Friend the Secretary of State, and we talked it through. I completely agree about the need for a multi-year settlement. We had to have one-year settlements because of the turbulence around covid, but we aim to have a multi-year settlement. Yes, it will take account of the need for levelling up and of inflation.

I am pleased the right hon. Gentleman mentioned Shakespeare North, as I was previously involved in its central Government funding. It is a brilliant project, and he rightly paid tribute to some of the individuals who are helping to make it happen.

The right hon. Gentleman also made some important points about the levelling-up fund. Seventy-five per cent. of the money has so far gone to top-priority areas, and only 6% has gone to bottom-priority areas. It is highly skewed towards the poorest areas and, in the first round, £20 million went to Liverpool, next door to Knowsley, and £37 million went to the Liverpool city region as a whole. It is not correct that there is a political process. There is competition, and there are arguments for having non-competitive funding, which is why there will also be an allocation through the UK shared prosperity fund. There are arguments for competition to get good bids, but we must not traduce civil servants who score the bids and allocate the money.

My hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill) will see spending power in his constituency go up by 6.2%.

[Sir George Howarth]

If, as the Minister says, I am wrong about how these decisions have been arrived at, will he apprise me of what was wrong with the Knowsley bids?

[Neil O’Brien]

Again, the right hon. Gentleman anticipates my next point. I am happy to facilitate a meeting between officials in Knowsley and officials in central Government to talk about the bid, but this is done on an objective basis. [Interruption.] It does not seem that the right hon. Member for Knowsley wants to make an intervention, as he is chuntering from a sedentary position. Liverpool, as I said, has received funding, so it is not politics; it is about getting the best bids and the right money to the right places. The spending settlement means an extra 8.5% for Knowsley.

My hon. Friend the Member for Bromley and Chislehurst made a verbal slip when he talked about when he was a young man. Of course, he meant to talk about when he was an even younger man, so I correct the record. He and the hon. Member for Westmorland and Lonsdale (Tim Farron), who is sadly no longer here, made important points about the public health grant, and those points are why we are protecting it in real terms across the SR period and why we have an extra £300 million to tackle obesity, an extra £170 million to improve Start4Life and children’s mental health services and an extra £560 million to improve drug and alcohol treatment.

The hon. Member for Westmorland and Lonsdale also made an important point about second homes, and we recently closed the tax loophole to try to address that issue.

The hon. Member for Harrow West (Gareth Thomas), in whose constituency spending power will go up by 6.8%, made the case for more devolution to more places. I agree: we are both widening devolution through the county deals process and deepening it where we already have it. I should point out that the only place in England that had devolution under the previous Labour Government was London, which is just part of the country; there was no devolution for the rest of England and we have put that right.

I hope that the right hon. Member for North Durham will reflect on the point he made and his serious criticisms of my hon. Friend the Member for Bishop Auckland (Dehenna Davison). Let me simply say that my hon. Friend is a superb, dynamic young Member of this House who has a lot of ideas and is making things happen for her constituency. Likewise, the same is true of the new council in Durham, where Labour is out of power for the first time in 100 years. Why is that? I do not seek to make partisan points in this speech, so let me simply say that perhaps one reason why voters in County Durham have turned away from Labour is that they are looking for people with a positive agenda who will get a devolution deal, and not people who just criticise from the sidelines.

Let me move on and address some of the other points made by the right hon. Member for North Durham that were slightly more becoming of him. He talked about having read all of the levelling-up White Paper; he will realise, then, that it marks an approach distinctly different from that under the previous Labour Government, when we saw the increasing concentration of research and development spending in Oxford, Cambridge and London. In the “Levelling Up” White Paper we increase spending outside the greater south-east by 30% over this spending review settlement period; we bring devolution to the rest of England, not just to London; and we get central Government back into the business of driving major urban regeneration in 20 places. Central Government were taken out of that business by the Labour Government’s decision to get rid of English Partnerships—a decision that, in retrospect, I think Labour will regret.

I am conscious that I am taking up time, Madam Deputy Speaker. In the year ahead, councils in England will be boosted by up to £3.7 billion in extra funding. That is a real-terms increase of 4.5% and includes an extra £822 million for services through a one-off services grant. The settlement puts councils on a firm footing for the year ahead—one on which they can build and grow. It maintains the things that are already working, such as the rural services delivery grant; it raises funding in areas where more support is needed, such as through the extra £72 million for the revenue support grant; and it makes sure that no council anywhere in England will receive less money by updating the funding floor.

The settlement reflects the reality of 2022 and the acute pressures faced by the social care sector, with an extra £1 billion made available to alleviate pressure in the year ahead and £162 million to pave the way for the landmark social care reforms we are putting on the statute book. With a core referendum principle of 2%, plus an extra 1% adult social care precept, the settlement protects taxpayers with the lowest expected average council tax rises since 2016-17.

Several Opposition Members made points about the wider context, which includes the £1,000 extra that people working full time will get from our massive increase to the national living wage—a Conservative achievement. It also includes the £1,000 extra that 2 million households will get because of our changes to the universal credit taper rate so that people can keep hold of the money they earn.

We are being asked to believe that there has been a road to Jericho moment and this is now a low-tax Labour party that also wants to spend more money on everything and cut the deficit. It simply does not add up. There have been moments in this debate when Labour Members have said, in short terms, that the funding for public services is paid for by taxation; we are on the edge of an intellectual breakthrough, Madam Deputy Speaker! If only they had learned that lesson before they left behind the biggest deficit in this country’s entire peacetime history—a deficit that we had to spend many years clearing up, with our coalition partners. On that non-partisan note, let me bring the debate to a close. I commend the settlement to the House.

Merseyside: Funding of Local Authorities

George Howarth Excerpts

Tuesday 8th February 2022 Westminster Hall

[Sir George Howarth (Knowsley) (Lab)]

It is, as always, a pleasure to see you in the Chair, Mr Hollobone. I congratulate my hon. Friend the Member for Wirral West (Margaret Greenwood) on securing this important and timely debate. I thank her, and my hon. Friend the Member for Garston and Halewood (Maria Eagle), for setting out the headline figures for the reduction in grant funding to Knowsley since 2010. They both also referred to levelling up. Since they have put all that information on the record already, I will not go over the same material, but I will concentrate my remarks on levelling-up funding.

Last week, The Guardian published the results of its investigation into the local authority areas that have not benefited from levelling-up funding so far. Its conclusions are truly shocking. The article points out that some of the wealthiest areas in England are receiving 10 times—yes, 10 times—more funding than the poorest. How can that possibly be justified?

As I think my hon. Friend the Member for Garston and Halewood pointed out, Knowsley, which is a Labour-controlled local authority, received the shocking amount per head of population of zero—nothing—in the latest round of levelling-up funding, whereas Conservative-controlled Central Bedfordshire received £90 per head. Whereas Knowsley is the third most deprived borough in England, Central Bedfordshire is in the top fifth. How that can be justified defeats me, and I am sure it would defeat many qualified statisticians and researchers.

As Jonathan Webb from IPPR North accurately put it:

“This new analysis from the Guardian demonstrates the gap between the rhetoric and reality of levelling up.”

He went on to say that the way levelling-up funding is allocated is

“unacceptable and will only widen the UK’s existing regional”

disparities. That is the complete reverse of what we are told it is supposed to do.

Despite Knowsley’s being the third poorest borough in England, it received not a penny from the future high streets fund, the community renewal fund or the towns fund. Councillor Graham Morgan, the excellent leader of Knowsley Council, put it in a nutshell when he said:

“Levelling up has been nothing but a slogan so far. The people who work on these schemes can’t find any box which we haven’t ticked, so is there some other reason—a political reason—why Knowsley isn’t getting the support that local people need?”

The answer to Graham’s question, sadly, is yes—it is a political reason.

I will conclude with three questions. First, how can the Minister justify this politically skewed allocation of levelling-up funds? Secondly, can he give me a firm assurance that when the education investment areas are announced, Knowsley will be among them? Thirdly, will he agree to meet me and Knowsley Council to discuss the need for the regeneration of Huyton town centre?

High Rise Social Housing: Reducing Fire Risk

George Howarth Excerpts

Tuesday 14th September 2021 Westminster Hall

[Andy Slaughter]

That is another excellent point. I realise I am being quite critical of social landlords. We have to be, because sometimes they fall down on their duty quite spectacularly, as the documentary showed. However, I am glad that my hon. Friend has reminded us that most social landlords—councils and housing associations—are trying their best for their tenants and leaseholders, some of whom are very poor or have particular vulnerabilities. Whoever their tenants are, those landlords can only work with the tools at their disposal. The systematic cut in the housing subsidy over the last 10 years and the additional pressures that will continue, not just from fire safety, but from retrofitting in relation to carbon reduction, mean that we are often asking them to do the impossible—you cannot get a quart into a pint pot.

It is very easy for the Government to pass the buck, and that is exactly what the Housing Secretary did in the Hewitt documentary. “Nothing to do with me, guv”, he said, when asked about the fact that he, or his Government, had cut the budget of local authorities by 40% over the past 10 years.

[Sir George Howarth (Knowsley) (Lab)]

I congratulate my hon. Friend on securing this important debate. Does he agree that the sources of anxiety that others have referred to inevitably lead to mental health problems? And does he agree that it is time to bring this to an end by introducing a scheme to address all of the concerns people have as comprehensively as possible?

[Andy Slaughter]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Oral Answers to Questions

George Howarth Excerpts

Monday 5th October 2020 Commons Chamber

[Sir George Howarth (Knowsley) (Lab)]

What steps he is taking to ensure that local authorities receive adequate funding for additional costs related to the covid-19 outbreak.

[The Minister for Regional Growth and Local Government (Luke Hall)]

We have provided local authorities with an unprecedented package of support, including £4.8 billion funding for spending pressures, £3.7 billion in un-ring-fenced grants, and £1.1 billion for the infection control fund. We have also introduced a co-payment scheme to help councils recoup irrecoverable losses in sales fees and charges. In total, we have committed over £28 billion to local areas to support councils, businesses and their communities since the start of the pandemic.

[Sir George Howarth [V]]

All of which is welcome, but last week the Liverpool City Region Combined Authority called for a comprehensive Government-backed package to deal with the problems for the local economy that will be caused by the introduction of the latest covid-19 measures. Today, the combined authority and the Metro Mayor announced a £40 million welcome package to support local businesses and jobs. Will the Minister agree to hold an urgent meeting with local MPs, the combined authority and the Metro Mayor to discuss what further assistance the Government can provide to support our local economy?

[Luke Hall]

The right hon. Gentleman will be fully aware that Knowsley has received £30 million in additional un-ring-fenced spending to deal with pressures resulting from the pandemic, on top of the £10 million increase in its core spending power this financial year. More widely, Knowsley received £51 million to support councils, businesses and the community. He will be interested to know that to prepare for local outbreaks we have provided a £300 million grant to all upper tier authorities to develop strong and effective local outbreak plans. In relation to ongoing engagement, I met the Mayor of Greater Manchester last week and I believe he is meeting the Secretary of State tomorrow. We are, of course, happy to continue those discussions.

Planning System: Gypsies and Travellers

George Howarth Excerpts

Wednesday 29th January 2020 Westminster Hall

[Several hon. Members rose—]

[Sir George Howarth (in the Chair)]

I am not going to impose a time limit at this point, but I would ask speakers to take into account the fact that there are seven people hoping to speak in this debate. If speakers exercise a little restraint in the length of speeches, we should be able to get everybody in with a reasonable amount of time left for them to speak. I call Andy Slaughter.

--- Later in debate ---

[Andrew Selous (South West Bedfordshire) (Con)]

I want to consider the policy intentions on this matter and what good outcomes look like, both for the Government and for everyone else. I hope that we agree across the House that we want to see really well-integrated, cohesive communities and to have good outcomes for all citizens—Travellers and settled alike. Critically, that depends on giving everyone, particularly children, good life chances so that they can get those good outcomes. As we know from the race disparity audit, introduced by the last Prime Minister, my right hon. Friend the Member for Maidenhead (Mrs May), Traveller children have some of the worst educational, employment and health outcomes in the country.

For many of my settled residents who live close to large numbers of Traveller sites, the current situation is not a happy one. I am sent here to speak truthfully and to speak up for all my constituents, Travellers and settled alike. I receive quite a large number of emails from constituents telling me that they do not feel safe in my constituency anymore, and are looking to leave if they can afford to. A large number of businesses that regularly suffer theft, and whose staff are threatened, are very concerned. Businesspeople have recently come to tell me that they will not invest in my area.

I choose my words very carefully. There are good and bad in every community and many, many law-abiding Travellers absolutely respect the law, but I have to speak as I find and as my constituents tell me as individuals and as businesspeople in large and small businesses. It is not a happy situation for many of my settled residents, and many do not feel safe as a result.

My contention is that, unfortunately, and not because any Government wanted this to be the case, the current set of policies completely fails Traveller children, who have terrible outcomes, and causes great unhappiness and even suffering among many settled residents. What we have is not working for anyone at all. At the heart of Gypsy and Traveller policy is a fundamental muddle.

Planning policy for Traveller sites talks about “fair and equal treatment” for Travellers—absolutely: we all sign up to that—and about facilitating

“the traditional and nomadic way of life”.

The assumption seems to be that a Traveller site is needed to facilitate travelling. Why is that the case? Many of my settled constituents travel regularly. Many are caravaners, perhaps with a caravan they keep in their front garden. Indeed, many travel a lot more than my Traveller constituents do.

The situation is a muddle. To facilitate a traditional and nomadic way of life, we might need somewhere to keep caravans or somewhere safe for horses to be kept—unfortunately, a number of members of the British Horse Society have reported to me some pretty horrible incidents of cruelty to horses locally, so we need to look at that issue as well. There is a muddle because we do not need a Traveller site to enable people to travel. If we were honest, we would realise that we are prioritising the provision of sites and allowing the nomadic way of life over and above the right of Traveller children to have a good education.

I was so concerned that I asked the Children’s Commissioner for England to come to my constituency to visit one of the main village primary schools— lower schools. It has a lot of Traveller children. She went and reported back to me, in writing, that most Traveller children are not in school at all over the summer, when exams are taken, and that most stop their education in schools altogether around the age of 15. How can we expect Traveller children to be the engineers, lawyers, accountants and scientists of the future when the result of our current policy is that we do not value their education?

I have some of the best education and welfare officers in the business—I name Andrew Copperwheat in particular, from Central Bedfordshire Council—who try their very best to ensure that Traveller children go to school, but it is a losing game again and again. My constituents who volunteer in food banks tell me that it is common for adult Travellers who come to ask for food to say, “I can’t read and I can’t write”. We may think that Traveller children might get home education, but how will that happen if the parents are illiterate, through no fault of their own?

We need a little honesty. The people who speak for Travellers are the adults, but I am concerned about the outcomes for Traveller children—beautiful, wonderful children, who deserve the same chances as all of our children. When I went around six or seven Traveller sites a couple of weeks ago, I saw those children and my heart felt for them, because I could see their trajectory. Let us have a little more honesty about what “good” looks like, and let us think about what we are prioritising, whether it is right and whether we can do it better.

To cheer Members up—this has been a bit of a gloomy debate in some ways—let me say that there have been some great outcomes when my council has managed to get Traveller families into local authority housing in my constituency. The children go to school regularly, the parents have regular work and they are all making friends in the local community—people are being integrated. My constituency has proudly integrated wave after wave of Italian, Polish and Irish people happily and well over recent decades. We all pull together, get on and make a great contribution, and I want that for Travellers as well.

If Travellers are here legally, they should be part of our communities and be contributing and paying taxes; their children should be in our schools and having the amazing opportunities that all our children should have. But that is not happening at the moment. When I go around some of our Traveller sites, I see terrible housing conditions, green mould in water tanks, hot water coming out of toilets and conditions that, frankly, we would not keep animals in. That is not good enough. The legislation is not fit for purpose. Environmentally, we have sewage going into ditches, and a lot of the time the situation is not healthy. There is also a lot of sub-letting, often with violence. There are no tenancy contracts—this is sub-letting to non-Travellers on Traveller sites, enforced with vigilante violence, by quite wealthy Traveller landlords who have a lot of cash. That is not a good situation.

At the start of a five-year Parliament, I tell the Minister, who is a decent, humane and reasonable man: act with compassion. He should be progressive, do something good in this space, create brilliant outcomes for Traveller children and dial down the antipathy, the anger and the hatred between our communities. Do something that we can all be proud of in this space.

[Sir George Howarth (in the Chair)]

I will start to call the Front Benchers at 10.40 am.

--- Later in debate ---

[Jim McMahon]

It is for the Government and local councils to be supportive and to facilitate good community relations. They do not do that when the planning, education and housing systems are stacked up to make the people we are talking about part of the problem, not the solution. The reason there are illegal encampments is that often not enough authorised sites are provided. Even so, 88% of the travelling community are on authorised sites, whether local authority or privately owned. We do not talk about that; we talk about the unauthorised ones, as if that is somehow representative of a whole community. It is not.

Those in positions of power and leadership have a responsibility to build bridges, not walls, and to bring people together. They must use the levers of government, whether about regulation, tax or spend, to make sure that we create a long-term solution. We will be having this debate in another 10 years. If the Government put in place even harsher laws, which the police will not even implement because they recognise the reality on the ground, that will not solve the problem at all. We need positive solutions, looking at communities as human beings and recognising that people have the right to live the life they ought to lead, whether as a Traveller or in a settled community.

Perhaps some cross-party support is needed. If the Government want to look at the issue from a human being’s perspective, I am sure that they will find useful participants in that conversation on this side of the House. If the Government do not want to do that, but instead build walls and further the division, they can expect very firm opposition.

[Sir George Howarth (in the Chair)]

Before I call the Minister, may I remind him that he should leave a little time for Mr Hollobone to make his final remarks?

Leasehold and Commonhold Reform

George Howarth Excerpts

Wednesday 2nd October 2019 Westminster Hall

[The Minister for Housing (Ms Esther McVey)]

I congratulate my hon. Friend the Member for Worthing West (Sir Peter Bottomley) on securing today’s debate on the progress of leasehold and commonhold reform. He is a determined and formidable campaigner. I am also grateful to the Opposition Members who, with my hon. Friend, have been making solid progress on this important matter. With more than 4 million leasehold properties in the UK, we need to ensure that the system is working correctly, and that where it is not—where we see unfairness and exploitation—the market is held to account and changed.

[Sir George Howarth (Knowsley) (Lab)]

During a recent Backbench Business Committee debate on the Floor of the House, my hon. Friend the Member for Ellesmere Port and Neston (Justin Madders) and others raised the problem of people who had bought new properties in the north-west with leasehold arrangements that, to be frank, are a rip-off. At that point, the body language of the Minister—great champion of free enterprise that she is—conveyed her recognition that we had a case. Will she agree to meet a small delegation to discuss what can be done? The developers involved, in particular Redrow in my constituency, are completely unwilling to discuss the rights and decencies due to our residents.

[Ms McVey]

I will indeed meet the right hon. Gentleman and a delegation of fellow MPs. I did not realise he was such a good reader of body language, but he is quite right. The cases raised are not right, the system is not working right and those who agree with the market can see that it is not working right for the market either. Such cases should not be happening.

Let me be clear: the Government are committed to improving consumer fairness for leaseholders, and we have a programme of work under way to make sure that changes are made. Some of that work has already happened, including setting out how the ban on leasehold for new homes will work and stating our intention to reduce to zero ground rents on new leases, if we have them at all.

British House Building Industry

George Howarth Excerpts

Thursday 5th September 2019 Commons Chamber

[Sir George Howarth (Knowsley) (Lab)]

It is a pleasure to follow the hon. Member for South Norfolk (Mr Bacon), who made a typically thoughtful and interesting contribution to the debate on housing.

I congratulate my hon. Friend the Member for Mitcham and Morden (Siobhain McDonagh) on her survey of the state of the market and some of the negative aspects of it that we need to address. Anybody who reads her speech in Hansard tomorrow or at some later point will consider some of the companies that she named to be a roll call of disrepute.

On that theme, I wrote to the chief executive of Redrow, the developer, about a leasehold scandal following conversations with concerned residents of Summerhill Park in my constituency. Summerhill Park has over 455 houses and 70 flats. There is a two-tier system of ground rents in operation. Residents who purchased their properties early on in the development pay ground rents of £150 a year, while those who purchased homes in the later phases pay £250 a year. My constituents want to be enfranchised. They want to purchase their freeholds and are willing to pay a fair price. They believe—and I agree with them—that a fair price would be 10 times the annual ground rent, which they think is fair and reasonable and are willing to pay. Redrow, however, is asking for 26 times the annual ground rent, which I think, frankly, is unfair and unreasonable.

In the light of the Government’s reform proposals and the Law Commission’s ongoing work on leasehold reform, I approached Redrow to arrange a meeting to discuss the residents’ ideas further. Redrow contended in its response that the lease agreements are fair and transparent, which my constituents strongly disagree with, as do I. Its business model is considered by many—including, as I am sure the Minister will confirm, the Government—both unreasonable and unjustifiable. The offer of giving residents the opportunity to purchase the freehold at a fixed price of 26 times the annual ground rent is not, in my view—and, I hope, in the Government’s view—reasonable or fair.

In response to my letter, Redrow said:

“it would be inappropriate to move away from the practice that has been adopted over the last two years, with all Redrow households, including those [who] have already acquired their freehold at Summerhill Park.”

I wrote back to say that I did not agree and I would still like a meeting. Surprise, surprise, Redrow said, “There is little point in a meeting.” All Members of this House have a reasonable expectation that if they request a meeting with an organisation or company in the private or public sector to discuss an issue that is of concern in their constituency, they will get that meeting. Redrow arrogantly—not to me, but to the people I represent—declined to hold such a meeting. I deplore that, as I hope others do.

It is unjustified and unfair, and I fail to see how pressing on with that policy is either reasonable or acceptable. Redrow is doing this simply because it can and because it can continue to make money out of the residents I represent in this House. The leasehold scandal has caused a great deal of distress for homebuyers across England, particularly in the north-west, with many homebuyers trapped in their current properties, some unable to afford to purchase their freehold and others even unable to sell their property. Redrow is not unique in this. Other developers are just as involved in this scandal.

[Mike Amesbury (Weaver Vale) (Lab)]

I have a situation in the Winnington part of my constituency of Weaver Vale, where resident Emily Martin and many others are caught in this leasehold trap. In terms of the next phase, people have benefited from the reforms that we in this place have campaigned for, and the properties then become unsellable.

[Sir George Howarth]

That adds to the unfairness of it. Redrow is not unique in this, and all these companies need to look at themselves, the business model they are adopting and the ethics involved.

I will conclude by asking the Minister three questions. First, may I invite her to join me in condemning Redrow and the other companies that are still involved in this practice? Does she agree that the freehold purchase cost of 10 times the ground rent is fair and reasonable, whereas 26 times is sheer daylight robbery? Finally, does she agree that it is desperately important that we have legislation to curtail the naked greed of those developers engaged in this disreputable practice?

--- Later in debate ---

[The Minister for Housing (Ms Esther McVey)]

I thank the hon. Member for Mitcham and Morden (Siobhain McDonagh) for bringing the debate to the Floor of the House and I thank everyone who has contributed to it.

There has been much agreement across the Floor on what we would like to happen, and, more importantly, what we do not like the look of and is not the way forward. None of us can agree with the exorbitant pay packets that some people have received. We are also all agreed that—in the hon. Lady’s words—the market is not working. That is right: it is not. We might have different ways of resolving that problem, but we would say that, if there are not enough houses in the market, it is not working. Various implementation schemes should operate for a short period, until we have ensured that there are more houses in the market, and that is what we are doing.

It has been a scandal how fewer houses have been built decade after decade, but we are turning that around. Let us look at some of the figures. We have delivered more than 1.3 million new homes since 2010, including more than 430,000 affordable homes. In the most recent year, we have delivered more than 220,000 additional homes, the highest level in all but one of the last 31 years. The latest indicators show that we are on track to meet our 2015 manifesto commitment to add 1 million more homes by 2020.

Those who have talked about homelessness will be heartened to learn that, for the first time since 2010, the annual rough sleeping statistics have shown a decrease in the number of those sleeping rough. That reflects the Government’s substantial investment and support over the last few years. But what we want to see is the right houses being built; choice in who is building them; and an SME market, not just a market of the top four or five in the building sector. We as a Conservative Government want to bring back the SMEs; 30% were lost during the financial crash and never came back. We want those businesses back and, more importantly, as my hon. Friend the Member for South Norfolk (Mr Bacon) said, we want there to be the right to build: we want to be able to make sure there are not just a few companies, building thousands of homes, because there could be thousands of individuals making their own homes. That is what we are about: choice and opportunity as we go forward.

We have said we would deliver 300,000 homes by the mid-2020s. That is my ambition and the ambition of the Conservative party. How will we go about it? I have said that we have been delivering more each year, but we want to bring together a centre of excellence for construction and engineering in the north of the country. We want to have a global leader for construction and engineering, bringing forth those technological solutions we have been talking about such as modern methods of construction and environmental innovations in the housing market.

However, let me pick up on some of the things we do not want that many Members talked about. I want to work with the right hon. Member for Knowsley (Sir George Howarth), the hon. Members for Ellesmere Port and Neston (Justin Madders) and for Brentford and Isleworth (Ruth Cadbury) and my hon. Friend the Member for Northampton South (Andrew Lewer). We do not want to see the misuse of leaseholds and the exorbitant costs people are paying. We have brought a consultation forward. We are going to stop the misuse and the bad practices in that field, and we can work on that together from both sides of the House, because we should not have that and we do not want it, and we have already started on that course to make sure it does not happen.

[Sir George Howarth]

I am grateful for that response. Will the right hon. Lady therefore join me in condemning companies such as Redrow for being unwilling to even discuss what residents want?

[Ms McVey]

Companies and businesses should work towards what their purchasers and customers want. Therefore, they should be listening if they want to be the best company they can possibly be. Equally, we are listening as Members of Parliament. We have all shone a light on that bad practice and we will be taking that issue forward.

We are also looking at what housing associations are doing. My right hon. Friend the Member for Rayleigh and Wickford (Mr Francois) has brought forward what is happening with Sanctuary Housing. We have a Green Paper setting out the principles that will underpin a new fairer deal for social housing residents: safe and decent homes, swift and effective resolution of disputes, empowering residents and ensuring their voices are heard.

Although we talk about the industry, we really want to support the people who are living in those houses; we are talking about homes, safety and security. We do not want people in temporary accommodation. We do not want people to be homeless; we want them in permanent accommodation, and that can only be brought about by fixing the market and making sure we build more homes, which is what we are doing.

Leasehold Reform

George Howarth Excerpts

Thursday 11th July 2019 Commons Chamber

[Sir George Howarth (Knowsley) (Lab)]

Given that it is Wimbledon week, it is nice to see you in the umpire’s chair, Mr Speaker. It is a great pleasure to follow the hon. Member for Harrow East (Bob Blackman), who made a good case that I fully support. I should also compliment my hon. Friend the Member for Sheffield South East (Mr Betts), the Chair of the Select Committee, who, as ever, displayed a detailed and thorough knowledge of the subject.

According to the House of Commons Library, 27% of all new house sales in the north-west in 2018 were on a leasehold basis. In my constituency, about 1,320 have been sold on that basis in the recent past—261 in the past year alone. As we have heard, the current arrangements allow landowners to retain a level of ongoing management and the ability to secure income. For leaseholders, there is a range of problems, most of which we have already heard about, including with transparency on what they are charged for, disproportionate service charges and freeholds being sold on to a third-party.

Let me give a couple of examples from my constituency to show how the current situation has affected real people. Helen Spree is the owner of a Redrow property in my constituency for which she pays a ground rent. She is limited by a restrictive contract that dictates what she can and cannot do with her home. She is concerned that the freehold will be moved to a third party which, as we have already heard, happens frequently, without any notice or consultation. To purchase the freehold, it will cost her 26 times the current annual leasehold payment. That amounts to around £7,000. In addition, she would be required to pay Redrow’s legal fees, as well as her own, if she wanted to purchase it. By any standard, that is outrageous.

Another constituent of mine, from Earle Avenue, does not want to be named. He bought his property as the second owner—he was not the first person to buy it—in 2014, and planned, not unreasonably, to install a conservatory. He was told by a neighbour that Bellway would charge £350 for the privilege. When he approached the freeholder’s representative, he was informed that that £350 had gone up to £2,600. All he wants to do is build a conservatory, and he has to pay the freeholder £2,600 to do so. In addition to that, he would have to pay administration charges. Four months after he moved in, Bellway sold the freehold on his house to an investor; he found out only when he received a letter telling him so. He is restricted in respect of retaining his mortgage with his existing mortgage company, because under the terms of his lease he is required to inform the freeholder if he wants to change providers, and pay an additional £108 charge to the freeholder for doing so.

I have one further example that I will not go into at any length. A constituent of mine called Mr Eric Barry lives in a flat in Briton Court in my constituency. He is currently being charged £1,692 a year in service charges. There is a long list of things that the company, Moreland Estate Management, is supposed to do for that money, but Mr Barry contests whether it bothers to do it, or does it with the required frequency. It is an outrage. The worst thing about it is that he took the matter up with me a year ago, and I wrote to the estate management company, Moreland Estate Management, but I have still to receive a reply from them to a letter that I wrote on behalf of a constituent.

We have heard in great detail what a scandal all this is; it is about time it was sorted out.

--- Later in debate ---

[Mrs Wheeler]

I will not give way, as I have a lot to get through and I believe I have some answers for people.

On the leasehold house ban, I am pleased with the profound impact our original announcement and the work of campaigners have had on the market. When we made the announcement in 2017, 11% of new build houses in England were sold as leasehold, whereas today the figure stands at 2%—I repeat that it has reduced to that level. Despite that progress, we will still legislate to ensure that in the future—save for in the most exceptional circumstances—all new houses will be sold on a freehold basis. Developers will no longer be able to use leases on houses for their own financial gain, a practice that had become the norm in some regions of the country and, as we appreciate, particularly in the north-west. These reforms will remove the incentives for developers and freeholders to use leasehold to make unjustified profits at the expense of leaseholders, and we will be pressing ahead as soon as parliamentary time allows.

On the matter of where ground rents are so high that it—

[Sir George Howarth]

On a point of order, Mr Speaker. The Minister has just said that she would want to press ahead as soon as parliamentary time allows. I wonder whether you could confirm that the one thing this Parliament is not short of is time.

[Mr Speaker]

If it were for the Chair to decide, I would happily allocate time to all sorts of worthy purposes, but, sadly, the powers of the Speaker do not extend that far. If the right hon. Gentleman is bidding to increase my power, far be it for me to say no.