Empty Homes (Hyndburn)

Debate between Graham P Jones and Jason McCartney

Tuesday 13th December 2011 Westminster Hall

[Graham Jones (Hyndburn) (Lab)]

It is a pleasure to serve under your chairmanship, Ms Osborne—for the first time, I think. It is also an honour to have secured this Adjournment debate on empty homes in Hyndburn, an issue close to my heart and a huge problem in my constituency. The debate is very welcome, after the recent launch of the Government’s housing strategy, with much surrounding national publicity.

The causes of empty homes and the issues and problems connected with them are complex and vary around the country. In Hyndburn and other parts of Pennine Lancashire, the biggest factors are over-supply and low demand. Hyndburn has a total housing stock of 36,447, but there are only 34,201 resident households in the borough. Simply put, we have more residential dwellings than households that require homes. Most up-to-date figures indicate that we have 2,546 vacant dwellings—nearly 7% of the total housing stock—of which 1,579 are long-term empties. Vacant housing is therefore almost inevitable, as we do not have a housing shortage.

The causes and solutions go beyond housing. We need support for growth, which will stimulate the local economy. We need to boost the local gross domestic product. Our housing offer needs to support the growth agenda, so we need to provide greater choice and flexibility, as well as affordable homes. Unfortunately, choice is limited in Hyndburn, and more than 50% of our housing stock is terraced, most of it with two bedrooms. There is nothing wrong with terraced housing—I live in a terraced house—but we need to modernise and improve those houses; otherwise we will not retain households or attract new ones. In fact, demand for new housing only exaggerates the problem of the older stock.

Demand and modernisation are the focus in dealing with empty homes in Hyndburn. Nearly half the vacant homes are in neighbourhoods surrounding the centre of Accrington and most are pre-1919 two-bedroom—as we would expect—terraced houses, many of which are in serious disrepair; the climate is of course damp, and private landlord activity is significant, at around 30% of overall tenure. We currently have 1,310 people in need on the housing register, mainly because of inappropriate housing and related poor conditions. The reasons for homes being vacant vary, and in Hyndburn the reasons are certainly different from those described by the hon. Member for Colne Valley (Jason McCartney), when he raised the matter of empty homes in the House on 29 November. Our problem is not overdevelopment, but over-supply and a lack of choice.

High concentrations of long-term vacant dwellings blight our neighbourhoods and the solution that is needed is a long-term, comprehensive approach to regeneration. Although the housing market renewal programme was not perfect, it was as close as we have come to a comprehensive approach. The ending of the programme has left a legacy, and community expectations remain. The recent award of £2.3 million transitional funding allows us to meet our remaining legal obligations, as well as to relocate a number of households that are trapped in potential clearance areas. However, low demand has not gone away and there is a continuing need to regenerate some of Hyndburn’s neighbourhoods that were never included in the HMR programme.

I welcome Government support for new house building, but I am seriously concerned that elements of it will not work in areas of low housing demand. Government housing policy remains driven by the south, ignoring the nuances of the housing problems in northern towns. Greater flexibility is required. Regeneration is a long-term, comprehensive process, which is aimed at tackling social, economic, physical and environmental issues in places where the market has simply failed. There is a risk that the remaining resources will go to growth areas, rather than to help more deprived areas, and that that will exacerbate the problem. I understand that value for money is important, but I ask the Government to identify, or top-slice, funding to assist growth in less affluent areas, such as Haslingden and Hyndburn. That would at least give more deprived areas a competitive chance, as well as supporting economic growth.

I understand that the second tranche of the £50 million for low-demand areas must be match funded. That is a significant problem. I must advise the Minister that that is nigh on impossible in Hyndburn, so his policy will disadvantage Hyndburn in comparison with larger local authorities with greater access to resources. As a small district authority, Hyndburn receives only 15% of the council tax that is collected. Lancashire, the shire authority, has no interest in empty homes. Hyndburn has already matched funded the transitional grant from HMR, to the tune of £2.3 million. It no longer receives capital funding, with the end of the Government’s support for a housing capital fund.

As I have previously pointed out in the House, the new homes bonus is insignificant in Hyndburn. The amounts have been residual and small, and new house building only exacerbates the problem of over-supply, because it disadvantages areas of low demand. In short, Hyndburn has run out of available resources with which to generate match funding. The local authority’s budget is due to diminish from some £17 million to about £11 million in 2014. Unfortunately, the funding will not be anywhere near enough to address the 300,000-plus long-term empty homes across the country.

On 29 November in the House, I expressed my shock that local authorities cannot bid for the empty homes fund, and the Under-Secretary of State for Communities and Local Government, the hon. Member for Hazel Grove (Andrew Stunell), advised me that that was not the case, as reported at column 915 of that day’s Hansard. I have now had the opportunity to review the guidance for the £100 million fund, and it is clear to me that only registered providers and community and voluntary groups can apply—not local authorities such as Hyndburn, which are not registered social providers. I welcome the support for community and voluntary groups, but otherwise limiting the funding just to registered providers is a missed opportunity in an area with a significant problem. Allocating funds to local authorities would have provided more flexibility and innovation.

In addition, the guidance for the £100 million does not allow bids for vacant dwellings in council ownership. That is another missed opportunity. Hyndburn council owns long-term vacant houses not because it is a landlord, but because it is a former housing market renewal pathfinder. Allowing the former pathfinder local authorities to use the funding in partnership with others, including registered providers, would allow greater flexibly in addressing some of those depressing images that Channel 4 recently highlighted in the former HMR areas, and there would be viable alternatives to demolition, which is what I believe the Government want to encourage. I therefore hope that when the Government draft their guidance for the £50 million for empty homes in low-demand areas, they will bear my comments in mind: more freedom and flexibility, led by local authorities, will achieve more innovation and better value for money. Unless I am mistaken, that is the Government’s objective.

I am led to believe that bids for empty homes funding will be made from at least one registered provider in Hyndburn and from the local authority if the second tranche of funding permits. Our priority area is known as Woodnook and has nearly 350 vacant homes, with ownership in both the private and public sectors. I am pleased to inform the Minister that we are working with a private sector partner to bring in £7 million of investment to convert and refurbish 89 long-term vacant homes—many of which have been vacant for two years—without public sector funding. However, I hope that the Department for Communities and Local Government will look favourably on applications from our partners to extend the innovative work that we are doing to more vacant homes in this neighbourhood, as well as elsewhere in the borough.

I have on several occasions in the past raised the issues and problems caused by some landlords in Hyndburn; I find it necessary to do so again in relation to empty properties. Unfortunately, private landlords contribute directly to the problem of empty homes and of low housing demand through poor standards of management and maintenance. When I requested the information, I was told that slightly more than 80% of the empty properties are in the hands of private landlords. Although I acknowledge that legislation exists to introduce selective licensing in areas of low demand, the measures required to introduce a licensing scheme are onerous and potentially costly to the public purse, as Hyndburn found, regrettably, to its cost, having had to fork out £100,000 in a lost case in the High Court during—I must add—the previous Administration.

The Government’s new housing strategy quite rightly acknowledges the private rented sector’s essential role in the housing market. However, I would welcome a commitment from the Government to hold an independent review, to try to improve standards in the private rented sector and to relax the bureaucracy that currently exists when seeking to establish a selective licensing designation. I understand that the council is considering a new licensing designation, but the potential for a legal challenge and subsequent cost may be a deterrent. If the rules and guidance were simplified and made more transparent, thus making such a designation easier, more local authorities would be encouraged to consider using the power.

I welcome the consultation on an empty homes premium on council tax, payable on homes that have been left empty for more than two years. I fully support the initiative, but I ask that in two-tier authorities—this problem keeps coming back—district councils retain the premium, as that is where the burden to council tax payers currently exists.

[Jason McCartney (Colne Valley) (Con)]

I congratulate the hon. Gentleman on securing this debate, thus building on the progress made in my Adjournment debate, to which he contributed, and keeping empty homes well and truly on the agenda. I also thank the Minister for attending.

I particularly appreciate the way in which the hon. Gentleman has progressed the arguments. He has considered cases in his constituency and identified that the question, which also applies to my constituency, is about overdevelopment on green fields and about bringing rural properties back into use. I welcome the cross-party approach on the issue and praise the Minister for the way in which the Government have reacted.

[Graham Jones]

There is some consensus that the problem needs tackling. There are variances, particularly between the north and the south—between under-supply of housing in the south and over-supply in the north. There are also complexities regarding low demand. The hon. Gentleman, who has a constituency not far from mine that has some of the problems, is quite right in saying that there is some sort of a cross-party consensus, but there is a difference between certain areas in tackling empty homes.

I end my contribution by expressing a sense of disappointment and frustration that the Government’s housing policy is driven from the south and that they seem unwilling or unable to see the disjuncture between their strategy and the realities of places such as Hyndburn—my constituency—and Haslingden.

Empty Homes

Debate between Graham P Jones and Jason McCartney

Tuesday 29th November 2011 Commons Chamber

[Jason McCartney (Colne Valley) (Con)]

It is an honour to have secured this Adjournment debate on empty homes. It is an issue that I and many Members on both sides of the Chamber have raised in recent weeks and months. Indeed, only last week, three Members asked about empty homes during the ministerial statement on housing.

I shall digress for one second. This debate may be my last in the House with my Movember moustache, which is coming off on 1 December. Like many Movember men across the country, I have sprouted some hair on my top lip—you can just see it, Mr Deputy Speaker—to raise awareness of the Prostate Cancer Charity and men’s health issues. All Members would agree that with the tragic events over the weekend we need to be more open about men’s health, particularly issues such as depression.

I became involved in the issue of empty homes because of my deep concern about overdevelopment in my Colne Valley constituency in west Yorkshire. It is home to the lovely towns of Slaithwaite, Marsden, Holmfirth, Honley, the Huddersfield suburbs of Lindley and Birchencliffe and many more beautiful areas. I was concerned that our beautiful Pennine countryside was set to be dug up for new identikit homes.

The idea of green fields being developed is bad enough, but it defies all logic to be doing it while thousands of existing empty properties are being left to rot. In fact, my local council, Kirklees, has just voted for a local development framework that will impose 22,470 new homes in the district over the next 15 years, with some going on green belt. I say, bring Britain’s empty homes back into use first.

There is a groundswell of support for the empty homes campaign. I have to admit that I am a big fan of Channel 4 shows such as “Grand Designs” and “Restoration Man”. The presenter of the latter show, George Clarke, will be telling the nation about the scandal of Britain’s empty homes in a forthcoming series on Channel 4 next Monday and Tuesday evening—that is the plug out of the way.

The Government have responded really well to this problem, with targeted initiatives and cash to back it up. The inspirational—I do not use that term loosely, as he is a master of his brief and has seen off eight Opposition Housing Ministers—Minister for Housing and Local Government has spoken with me at great length on the issue, as has the Minister here this evening, who I know will give more details of Government help later.

What is an empty home? Homes are left empty for a number of reasons—for example, when they are between tenants, being refurbished, in probate or when the owner is in care or hospital. For the purposes of this campaign and this debate, however, we are primarily talking about long-term empty homes. These are properties that are stuck empty, and I believe that getting those houses back into use could be a quick and relatively inexpensive way of providing more housing.

How many empty homes are there? Across the UK as a whole, there are close to 1 million empty homes and approximately 350,000 long-term empty homes—this at a time when 2 million families are on housing waiting lists. Those figures are based on statistics from the Governments in England, Scotland, Northern Ireland and Wales, plus advice from the Empty Homes Agency about the number of empty properties across the UK that are not currently accounted for in official figures.

In my patch, we have been trying to get accurate figures from Kirklees council—I need to put the record straight on this. Following the original freedom of information request on the issue, we were told that there were 6,864 short-term empty properties—properties with a council tax exemption—and 3,463 long-term empty homes, or properties no longer exempt from council tax. By adding 1,000-plus second homes or holiday homes, the total comes to over 11,000. Obviously not all those homes are available for bringing back into use, and nobody has ever suggested that.

Kirklees council has now revised the figures, giving me—and everybody else who has been asking—another figure on long-term empty homes. However, whether it is 11,000, 7,000 or 3,463, it is one too many when people are waiting for homes and when the developers are eyeing up our greenfield sites. The Government have stepped up to the challenge, making £150 million available in the housing strategy, which will be delivered quickly. I hope that my hon. Friend the Minister will have more details on the scheme, which he and his colleagues have been working on.

[Graham Jones (Hyndburn) (Lab)]

I congratulate the hon. Gentleman on securing this debate about such an important issue, which is crucial to my constituency, where there are some 2,600 to 2,700 empty properties. Would he be shocked, as I was, to discover that local authorities cannot bid for the empty homes fund?

[Jason McCartney]

I thank the hon. Gentleman for making that contribution. Those are some of the issues that I hope the Minister will say something about later. Councils, community groups and all sorts of community people need opportunities to tap into those funds, and those are some of the points that I will be making later.

I acknowledge that, through the new homes bonus, 16,000 empty homes have been brought back into proper use in just one year. That shows what can be done. However, the Housing Minister has admitted that it is a scandal that 700,000 or 750,000 properties are empty when so many people are in desperate housing need. The Government announced last week that they were adding another £50 million to the existing £100 million fund for empty homes, making a total of £150 million.

Let me set out some of the benefits of bringing empty homes back into use. The refurbishment and reoccupation of those homes could clearly contribute significantly to meeting England’s housing needs. The reuse of empty homes can also help to protect the beauty and openness of England’s natural landscapes for future generations, by negating the need for development on greenfield sites, which is important in my area of west Yorkshire. The renewal of existing communities can take advantage of existing infrastructure such as transport links and schools. Refurbishment constitutes a much more efficient use of construction materials than new build, and the reinvigoration of existing communities can add to the local economy.

--- Later in debate ---

[Graham Jones]

I am very interested in what the hon. Gentleman is saying, but might not the premium actually prove to be a disincentive? Some people might go off the radar, their properties might be registered as occupied, and they might therefore pay a 100% rather than a 125% rate of council tax.

[Jason McCartney]

The hon. Gentleman has made a good point. Councils might wish to consider introducing such schemes themselves, given that they have the local knowledge. Perhaps they should introduce it on a trial basis. It might work better in some areas than in others. I am pleased that the Government are considering different options, and that they are happy to devolve power to councils so that the various needs of communities can be dealt with on a more local basis.

Some key changes need to be made to the draft national policy planning framework. Instead of the presumption clause in favour of sustainable development, let us consider a presumption clause in favour of returning empty homes to use and ensuring that brownfield land is developed before greenfield land.

Given that commercial banks rarely lend money on empty homes, the Minister might wish to consider a sustainable low-cost loan fund. It could be kick-started with cash from the empty homes fund and managed by a commercial bank in partnership with an appropriate body such as the Empty Homes Agency. The loan fund would help private empty home owners who needed money to return their properties to use. They could borrow modest sums from the fund, and repay the loans from subsequent rental income set at affordable levels. Would-be buyers on low incomes could also purchase empty homes cheaply and return them to use with the help of modest loans from the fund. Cash for the fund could also come from the proposed empty homes premium, which could impose a 150% council tax rate on properties that had been empty for over two years. I should like the Minister and his team to consider all those ideas, and then report to the House on their conclusions.

Let me suggest a right to help local people to rescue abandoned properties. Will the Minister consider an amendment to current legislation on the community right to reclaim land? Should local people be able to use a new “community right to reclaim abandoned property” clause, which would enable them to apply to a tribunal to bring long-term abandoned properties in their areas back into use?

Therefore, lots of action has already been taken. I hope that I have given lots of ideas for more, and I shall now sum up to allow colleagues to make a brief contribution. Let us put renewal and regeneration ahead of greenfield development. Let us use existing buildings and infrastructure as efficiently as possible, with the economic, environmental and social benefits for all. Let us finally get Britain’s empty homes back into use.

National Planning Policy Framework

Debate between Graham P Jones and Jason McCartney

Thursday 20th October 2011 Commons Chamber

[Jason McCartney (Colne Valley) (Con)]

The consultation on the draft national planning policy framework is far and away the biggest issue in my constituency, although this weekend it may be run a close second by the forthcoming vote on an EU referendum.

Concerned residents in my beautiful Colne Valley constituency were angered by a poor-quality consultation on Kirklees council’s local development framework. The Labour-led council is still obsessed with the top-down housing targets introduced by the previous Government, and it is trying to impose 28,000 new homes on our area. Then came the fiasco over the planning permission for 294 new homes and a data campus development on Lindley moor, which is north of Huddersfield. Despite the fact that democratically elected councillors originally voted against the housing plans, the planning department and the council leadership kept going until they secured a narrow 8:7 vote in favour of the controversial development on green fields. The development should have been rejected on the grounds of poor infrastructure, with clogged roads, oversubscribed schools and medical services at full stretch.

[Graham Jones]

The hon. Gentleman seems to know a lot about that development. In the planning committee, what did the Highways Agency say about access to the site? Was it in favour, or against?

[Jason McCartney]

The hon. Gentleman is quite right— I know a lot about this, and sat through a whole day of the planning committee’s considerations. I spoke against the proposal. The committee came up with highways figures but, as a number of local residents rightly pointed out, those figures were out of date and they did not apply to peak times in the morning and evening. I attended the committee for many hours, and I thank the hon. Gentleman for raising the issue, as he has helped to make a good point.

Concerned local people have read and heard about the draft NPPF with deep suspicion. While the aim of simplifying 1,000-plus pages to little more than 50 is laudable, residents in the beautiful countryside of the Colne and Holme valleys, as well as Lindley, fear the phrase,

“presumption in favour of sustainable development”.

Local people have interpreted that as a developers charter for more unwanted developments on their rapidly reducing countryside. There is confusion, too, about what sustainable development actually is, and there is a need for a clear definition, as we have heard in our debate.