Private Rented Sector

Debate between Graham P Jones and George Hollingbery

Wednesday 23rd January 2013 Commons Chamber

[Graham Jones]

That question is easy to answer. My local authority is the third worst hit in terms of revenue grant and it is doing everything it possibly can. If the Government take resources away, they have to accept that it becomes difficult for local authorities to meet their obligations. That is the position in which the local authority finds itself.

I return to the scale of the problem. In the ward of Spring Hill, 71.6 % of houses do not meet the decent homes standard; in contrast, only 17.2% of social housing in the ward does not. In Central ward, 73.6% of houses do not meet the decent homes standard, compared with 32.1% in the social rented sector. That is a damning indictment of the state of the private rented sector in my constituency and the behaviour of some who let those properties. I should say briefly that the housing health and safety rating system is not fit for purpose and is due for an upgrade.

What do Haslingden and Hyndburn constituents get for the privilege of renting a home? Last year, national TV crews came to Hyndburn to see the sorry state of the sector. One house that TV crews visited in my neighbourhood had asbestos, single wooden windows, damp, mould and electrical sockets hanging off the wall with live electrics exposed at a low level. A young mother and a toddler were housed there as there was nowhere else better. The house had innumerable category 1 and 2 hazards, as is common throughout the constituency.

As my hon. Friend the Member for Birmingham, Erdington (Jack Dromey) said, the Government should tackle the dangers of electrical safety, not just by regulating electrical safety certificates but by the mandatory installation of residual-current devices in every rented property.

Nationally, the last English housing survey revealed that the number of people who agreed with the statement “the landlord does not bother with repairs” was twice as high in the private rented sector as in the social rented sector. In Haslingden and Hyndburn, the figure is far higher. At another property in my neighbourhood, I saw a questionable gas fire, which was checked by a gas fitter. It was condemned immediately and removed. For 12 months, the landlord had been asked to look into it. Shockingly, the property was rented by a parent with a two-year-old and four-year-old.

Such stories reflect the chronic state of the private rented sector in Haslingden and Hyndburn. There is a huge problem, not just with rogue landlords, but absent and long-distance ones. Crucially, there are also amateur landlords who know nothing about property maintenance and are simply looking for a quick profit. I ask the Minister to consider this point. Landlords need guidance, and a national register would assist landlords, tenants, neighbours and the local authority to work together.

Recently, a woman suffering from exactly the problems that the Leader of the Opposition has recently identified came into my surgery. She is a single mother with three children. She had been forced to rent a three-bedroom former council house now owned privately through the right to buy. She had been the victim of domestic abuse and her partner had abandoned her and her three children. Her rent is £600 a month, while the rent at the Hyndburn Homes property next door is just £300. The average price of a Hyndburn Homes property is about £64 a week, yet a private rented property costs £108 a week—68% higher.

Then there is the scandal of top-up, which has not been mentioned, whereby landlords raise rents way above housing benefit levels and push families and young, innocent children into the worst poverty imaginable. The lady I mentioned received £425 in housing benefit, so the Department for Work and Pensions was paying £125 more than on the property next door, but that still left her with a £175 shortfall per month that she had to find from the other benefits that she received. Her children were going hungry and she had to be clothed with clothes from the charity shop just to keep a roof over their heads. Moreover, the house was in a terrible state of repair because it had been bought under the right to buy, and the landlord had shown no interest in making good.

When I contacted schools in my local area, they confirmed a rise in the number of poorly clothed and hungry children turning up for school in the morning. My surgery is filled with people desperate for decent housing, all of whom are housed in the private rented sector, while the local authority has a very long waiting list for housing association houses. A recent survey highlighted that Hyndburn has the second highest number in England of people living on the breadline.

I would like to speak for much longer, but time is running out and I will have to conclude my remarks.

[George Hollingbery]

rose—

New Homes Bonus

Debate between Graham P Jones and George Hollingbery

Tuesday 15th March 2011 Westminster Hall

[George Hollingbery]

I thank my hon. Friend for that timely intervention. I absolutely agree with what he says. In a moment or two, I want to develop this argument a little further, because there is some confusion about where infrastructure comes from.

[Graham Jones (Hyndburn) (Lab)]

It is a pleasure to serve under you, Mr Williams. My area is in a two-tier district. Does the hon. Gentleman accept that the funding for the new homes bonus comes from reductions in the formula grant, which affect the county council? According to the hon. Gentleman’s argument, the reduction in Lancashire county council’s formula grant will be redistributed only to the district authorities, which, in my area, is Hyndburn borough council. Does he not accept that that argument is flawed and that the Minister should not adjust the formula grants for shire authorities if they will not receive any of the bonus at the end of the year?

[George Hollingbery]

I thank the hon. Gentleman for his intervention. He makes some cogent points, which the Minister will want to respond to in a moment.

There is a danger here. We are clearly channelling payments down to a community for its loss of amenity, but it is dangerous for us to confuse that with the provision of infrastructure. Let me develop that argument a little more. Page 11 of “New Homes Bonus: final scheme design” states:

“Local authorities will have flexibility on how to spend the unringfenced grant…In many cases this will involve advanced planning with other local service providers to ensure that there is timely delivery of infrastructure for the new development. For example, local authorities can pool funding to deliver infrastructure.”

I hope that that will not be read as an invitation to spend the new homes bonus on infrastructure that would be provided by the community infrastructure levy or other agencies in any event. There is a dangerous blurring of the margins here, and I seek some reassurance from the Minister that the new homes bonus will be focused on local communities.

There is a further confusion. The community infrastructure levy is coming through. Section 106 will be narrowed to deal only with site-specific issues. On top of that, there is open spaces funding—I think it will still exist, although I am not 100% certain—and the new homes bonus. There will, therefore, be three potential ways of providing infrastructure, and I would like some reassurance from the Minister on the potential confusion about them. I have had evidence on the issue from local parishes in my area, and particularly from West Meon parish council, which I met recently. Its members were very confused about where open spaces funding would sit in the new matrix.

Just yesterday I received a letter from Hampshire county council, which is particularly worried about the timing of the community infrastructure levy. It says:

“We believe the arbitrary date of April 2014 will cause serious problems both for ourselves and the district councils and risks triggering a growing infrastructure deficit.”

It goes on to request that only local planning authorities with robust policies in place for CIL should be subject to the changes by April 2014. That causes me to worry that there is going to be yet more impetus for the new homes bonus to be spent on infrastructure that should otherwise be provided by different mechanisms.