Housing and Planning Bill (Seventeenth sitting)

Helen Hayes Excerpts

Thursday 10th December 2015 Public Bill Committees

[Teresa Pearce]

That is not the case in my constituency, I assure him; that is very rare.

I believe that longer tenancies are a very good idea. It is interesting that in the heated debate we had this morning, tenancies of two to five years were meant to be the right thing for social tenants, but for private rented tenants, there is resistance to it. However, given that the Minister is going to write to me regarding the particular issue I am concerned about, I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 24

Local Authorities and Development Control Services

“(1) A local planning authority may set a charging regime in relation to their development control services to allow for the cost of providing the development control service to be recouped.

(2) Such a charging regime will be subject to statutory consultation.”—(Helen Hayes.)

Brought up, and read the First time.

[Helen Hayes (Dulwich and West Norwood) (Lab)]

I beg to move, That the clause be read a Second time.

[The Chair]

With this it will be convenient to discuss new clause 31—Local authority planning fees cost recovery schemes—

“Local authorities shall be given powers to operate full cost recovery schemes with regard to fee levels relating to planning applications”.

This amendment would allow local authorities to develop a planning fees schedule that would enable the full costs of processing planning applications to be recovered.

[Helen Hayes]

Since 2010, spending on planning by local authorities has almost halved, from £2.2 billion in 2010 to £1.2 billion this year—a decline second only to that in spending on cultural services. In previous sittings of the Committee, Government Members have dismissed the situation as simply being down to the choices of local authorities, but in reality, many councils have faced a Hobson’s choice. The extent of cuts to local authority budgets has been so great over the past five years that councils have had to cut across all areas of expenditure, and most have made the entirely rational and appropriate choice, when pressed, to protect where they can the services on which the most vulnerable residents rely—adult social services and children’s services. That has resulted in a situation where areas such as planning and cultural services have taken a disproportionate level of the cuts.

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[Helen Hayes]

I agree that local authorities should be as efficient as possible wherever they can, and that in some cases economies of scale can be derived from sharing services. I also believe, however, that a certain volume of work is created by large-scale planning applications and by our need to deliver new homes across the country that must be properly resourced; I am suggesting to the Government a creative way in which that might be achieved.

[Mr Jackson]

I am slightly disappointed that the Local Government Association supported the new clause, because it is incumbent upon the LGA to understand that the cumulative impact of regeneration, much of which is housing, is beneficial to local authorities; it is an investment. This should be seen in the context of non-domestic rates, the new homes bonus or sales-related taxes—the long-term capital investment—rather than just a one-off negative cost.

[Helen Hayes]

I agree with the hon. Gentleman that this is an investment. It is, however, an investment that many local authorities do not have the luxury of being able to make in the context of the stretching of their resources across other very important statutory areas of service.

I will complete the quotation from London Councils:

“Full cost charging could also be used to fund the kind of pro-active multi-borough teams that supported”

the work of the Olympic Delivery Authority. Where we have large-scale regeneration across a wide area, London Councils supports the principle that local authorities should share that resource and be able to recoup the costs of it.

The new clause makes sense for councils, who would be able to raise the resources that they need without jeopardising vital statutory services such as children’s and adults’ social care; for communities, who will get higher-quality decisions; and for developers, who will get the speed of service they need to bring forward development. I hope that the Government will support it.

[Chris Philp]

It is an exquisite pleasure to serve under your chairmanship, Mr Gray. I shall be extremely brief.

Again, I draw Members’ attention to my entry in the Register of Members’ Financial Interests. I spent the past five years financing developers, and must say that they commonly complain that local authority planning departments are both insufficiently resourced in terms of the number of people they employ and inadequately resourced in terms of the quality of those people, because so many move into private practice.

I fully accept the points, made in interventions by my colleagues on the Government Benches, that local authority planning departments should be made more efficient by sharing services and, as my hon. Friend the Member for Peterborough said, that local authorities enjoy financial benefit when development takes place, but I do know that developers would, in principle, be prepared to pay higher fees in exchange for better levels of service, which they can currently do via agreements for larger schemes. There might be some concern that local authorities would simply take the extra fees and spend them on something else, so will the Ministers consider whether in future local authorities could be permitted to charge a specific higher fee in exchange for a guaranteed service level? If that service level was not delivered, the fee could be refundable so that there would be a direct and explicit link between the fee and the service. I understand, though, that this is a complicated subject area and there are views on both sides.

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[Chris Philp]

It is reasonable to want to ensure that developers are not simply treated as cash cows and penalised with unlimited fees, which is why I was suggesting that the Ministers might in future consider a fixed-fee schedule related to specific service delivery, with the extra fees being refunded if that delivery is not made. Having uncapped fees so that developers could simply be bled dry would be a retrograde step.

[Helen Hayes]

The text of the new clause is explicit in saying that the schedule of charges should be set in a transparent way. To my mind, that would include setting out the level of service that would be expected to be delivered, as well as the full cost of that service, and undertaking consultation with the wider development industry prior to setting the schedule of charges. I hope that answers the hon. Gentleman’s point.

[Chris Philp]

Before one could sign up to the new clause, one would want to see the detail, which clearly is not there. I think I have made my point in general terms.

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[Mr Jackson]

The hon. Member for Harrow West has obviously got a tiger in his tank this afternoon as well.

My hon. Friend the Member for South Norfolk is absolutely spot-on. It is no good whining about funding constantly and saying, “It is not as it used to be.” We have to go out and attract forward-looking, intelligent, smart planning officers. They are out there. I give way to the hon. Member for Dulwich and West Norwood, who I am sure is in that category.

[Helen Hayes]

I am grateful to the hon. Gentleman for giving way. The new clause is not about constantly whining about funding. It is about putting the absolutely vital task of securing the new homes that we need through the planning system on a sustainable financial footing, without placing an additional burden on the public purse. He would surely agree with that.

[Mr Jackson]

I would not agree with that, but we all see issues in politics through the prism of our constituencies, which is quite natural. In my constituency, we have a target to build 25,500 homes between 2001 and 2031, which is enormous growth. We are the second-fastest-growing city in England, and our planning department, in only a medium-sized unitary authority, is award-winning because it has worked with developers and it has delivered its structure plan, local plan, site location plans, city centre area action plan and other supplementary development on time. It has managed to recruit good people. I gently suggest to the LGA and the District Councils Network that we should be encouraging best practice in recruiting really good planning officers, rather than trying to legislate for it on the face of a Housing and Planning Bill.

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[The Chair]

Helen Hayes.

[Helen Hayes]

rose—

[The Chair]

I am sorry, the Minister.

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[Brandon Lewis]

Finally, I will respond to the many references that hon. Members have made throughout the Committee proceedings, in one form or another, to resourcing—in fact, the hon. Lady just referred to it. The spending review provides a reasonable offer to local government and an increase in resources over this Parliament in cash terms. By the end of this Parliament, local government will be able to retain 100% of local taxes to spend on local services. We have to be honest and clear about this: local authorities have been able to increase their reserves over the past few years from about £13 billion to £22 billion. Although they should retain sensible reserves, they should also look at how to prioritise the funding they have, and they must see planning as a core and important department. As I said at the start of my speech, we already have the powers to allow local planning authorities to set fees locally. I have undertaken to look at some of the suggestions that my hon. Friends made last week. With that, I ask the hon. Member for Dulwich and West Norwood to withdraw the new clause.

[Helen Hayes]

I thank the Minister for his response, and in particular for agreeing that planning services should be properly resourced in local authorities. I agree that there is scope for innovation. I saw innovation during my work in planning, but I think that the task of delivering the new homes that we need through the planning system cannot be fulfilled by innovation alone. Those services must be resourced on a basis that is proper, modern and fit for purpose, given that local authority resources are very stretched and that planning is competing with services that are of a different order of magnitude. I therefore wish to press new clause 24 to a Division.

Question put, That the clause be read a Second time.

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[Teresa Pearce]

Both new clauses in this group relate to standards in the private rented sector.

New clause 25 would place a duty on landlords to ensure that their properties are fit for habitation when let and remain fit during the course of a tenancy. The new clause is largely about probing the Minister to see whether he is open to putting that duty into legislation and follows on from the private Member’s Bill promoted by my hon. Friend the Member for Westminster North (Ms Buck), which had a similar aim but which was talked out by the hon. Member for Shipley (Philip Davies)—a fate that befalls some of the worthiest private Members’ Bills, including my own.

Before moving on to the detail of new clause 25, I note that the majority of landlords let property that is and remains of a decent standard. Many good landlords go out of their way to ensure that even the slightest safety hazard is sorted and that any repairs are attended to, so it is even more distressing when we see reports of homes that are frankly unfit for human habitation being let, often at high prices.

Parliament has for more than 100 years considered and legislated for standards in the private rented sector. The Housing of the Working Classes Act 1885 and, 100 years later, the Landlord and Tenant Act 1985 placed obligations on landlords regarding safety in their properties. Indeed, the 1985 Act placed a statutory duty on landlords covering issues such as damp, mould and infestation, yet that duty applies only to those fulfilling a rent criterion, and that criterion has not been changed since 1957, so the duty now applies only to properties where the annual rent is less than £80. The new clause would remove those limits to allow the 1985 Act to fulfil the intention and place a duty on landlords to provide a safe, secure environment.

I am sure that all Members in their casework receive letters from constituents living in poor conditions—indeed, it is one of the biggest issues in my constituency. My office phone rings every day with people calling about mould and infestation in their property, the impact that has on their health and the inaction of some landlords in rectifying the situation. It is also a consumer issue, because where else in the modern day could one buy something that is not fit for purpose? If someone buys a television that does not work, they can take it back and get a refund. We are pretty much assured that the food in a food shop is safe to eat—if it was unsafe to eat, the food premises would be shut down. Yet a landlord can let a property that is unfit for human habitation and there is no easy recourse.

About this time last year, I was asked by a family in my constituency to visit the property that had been occupied by their father, who had just passed away from a respiratory illness. They wanted me to see at first hand the conditions he had lived in. The walls were so thick with mould that it looked like flock wallpaper. The air just smelled of damp. This man had died on his sofa on a Saturday night from lung disease while living in that accommodation. His family lived some distance away, which is why they were not fully aware of the conditions he was living in. They had contacted the landlord on numerous occasions, and the landlord failed to assist. Nothing could be done.

I am sure the Government will want to consider the new clause. It would only affect a small number of tenants in the few properties let by bad landlords that are unfit for human habitation, but it would change the lives of many tenants. Earlier in our consideration of the Bill, we discussed rogue landlords and banning orders, but the new clause would try to alleviate suffering before we got to that position. It is a basic consumer, health and productivity issue. It is hard for someone to be productive at work when they live in a property which is not fit to live in. It is also a moral issue where children and elderly people are concerned, so I am interested to hear what the Minister has to say on the new clause.

New clause 26 would introduce a requirement for landlords to undertake electrical safety checks. Electrical Safety First has been leading the way on the issue by raising awareness and lobbying parliamentarians—I think it was in Parliament this week doing that very thing—on the need to ensure that the private rented sector is fire-safe. Many other organisations support the measure, and the Local Government Association, the London fire brigade, Shelter, the Association of Residential Letting Agents, British Gas, Crisis and the Fire Officers Association have all supported previous measures to introduce mandatory electrical safety checks.

It is estimated that each year electrical faults cause more than 20,000 house fires and lead to around 350,000 serious injuries and 70 deaths. It is worth noting those figures, because we now see fewer deaths and injuries—only 300 injuries and 18 deaths—caused by gas and carbon monoxide, on which action has been taken. The risks remain serious, so it is right that we continue to monitor that, but those figures show what is at stake when we discuss electrical fires in the home.

Although landlords have a duty to keep electrical installations in proper working order and to ensure that any electrical appliances they supply are safe, poorly maintained installations remain in the sector and there is no explicit requirement for landlords to prove to tenants that a property is electrically safe. Landlords of houses in multiple occupation are required to have a periodic inspection every five years, but those whose properties are not HMOs are not legally obliged to do that. It is not right that people would be safer in a bed and breakfast or an HMO than in a privately rented home. What is the difference in fire risk between a property that meets the HMO requirements in which a landlord lets to six people and a property that is not an HMO where six different people live? The standards should be the same because the risk is the same.

Of course, many good landlords ensure that their properties are safe. The property is their asset, so they have as much interest in keeping it safe as their tenants. Many good landlords run electrical safety checks and ensure that all appliances are tested at the beginning of the tenancy and at points during it, but there is growing consensus that the introduction of mandatory electrical safety checks is a worthy cause.

We have seen action on the issue in Scotland, where the Scottish Government have introduced fire safety requirements for private rented properties, and the authorities in Northern Ireland are currently running a review of the private rented sector which includes a consultation on mandatory fire checks. In Wales, we have growing cross-party support and we hope that the Welsh Government will introduce such requirements.

[Helen Hayes]

I want to share an example of a constituent who emailed me recently. She is a private tenant in Lambeth who told me how she lies awake at night going over and over in her mind her worries about the electrical safety in her property and the lack of fire safety in general, and about how she would get out with her children if there was a fire. Does my hon. Friend agree that the clause would provide great comfort to tenants in that situation?

[Teresa Pearce]

I thank my hon. Friend for her intervention. That is the exact scenario. People have said to me, “If that is the case, why don’t they move somewhere else?” but particularly in London housing is scarce, so sometimes people have to take whatever is available and thereby risk their and their family’s safety if the place is not safe to live in.

We have mandatory annual gas checks in the private rented sector, and secondary legislation has added regulation for smoke detectors and carbon monoxide detectors, so I hope that the Minister will consider accepting new clause 26. There is growing support for the measure across the UK, in Parliaments and with landlords. In fact, Janet Finch-Saunders, the Welsh Conservative spokesperson on this issue in the Welsh Parliament, has pledged her support and she also happens to be a landlord. We have broad support.

To recap, new clause 25 would introduce a duty on landlords to ensure that their properties are fit for human habitation, which would drive up standards. New clause 26 would introduce a requirement for landlords to undertake electrical safety checks. I hope that the Minister will accept that new clause.