Protection for Homebuyers

Debate between Jim Fitzpatrick and Drew Hendry

Thursday 13th December 2018 Westminster Hall

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

It is a pleasure to serve under your chairmanship this afternoon, Mr Sharma. I congratulate the hon. Member for Stretford and Urmston (Kate Green) on bringing not only a very important but a highly interesting debate to listen to, which has included various Members around the Chamber. It is very challenging to sum up the debate because there have been so many powerful points made by so many hon. Members, but I will do my best to pick out some of the key points as I saw them.

The hon. Member for Stretford and Urmston talked about the unhappy homebuyer experience and the impact that has on people when they have made a huge investment in their future. She also mentioned the number of problems that occur, particularly with new homes. Giving due praise to good home builders is important, because there are many. I am very fortunate: in the highlands, due to the scale—it is probably not the same scale as in other urban areas—the home builders are very good in general. They are not without problems—there are still issues, which I will talk about later. The hon. Lady was right to pick out those large developers who are getting away with some of the things she described.

The hon. Lady said that buying a home was one of the big, significant life changes, but that buyers were having to buy their houses more or less without having seen the final build. She also talked about the introduction of the new homes ombudsman. Like her, I would like to know more about what that will entail. It would be useful if the Minister covered some of those points, albeit she may want to do so briefly. The hon. Lady was right also to highlight the dangers of a voluntary approach when there is clearly such a widespread problem in house building.

The hon. Member for Poplar and Limehouse (Jim Fitzpatrick) mentioned issues for leaseholders as opposed to freeholders, and went on to address issues with ground rents and service charge hikes. I will talk later about property factoring charges. Those are important issues for people. Importantly, he also mentioned fire safety and sprinkler legislation, and pointed out the moves to tackle those issues in both Wales and Scotland.

The hon. Member for Ellesmere Port and Neston (Justin Madders) mentioned shocking additional charges that homebuyers uncover after purchase. That is clearly wrong. No one should be put in a position where they buy blind and suddenly find additional costs coming out of the woodwork—literally, in this case.

It is important to highlight the serious issue of solicitors’ conflict of interest, which a number of Members raised. It makes no real sense for the system to exist in that way. Clearly, there has to be segregation so people have confidence in the legal process when they buy a new home. The hon. Gentleman talked about people being pressured to use a solicitor from a panel due to purchase time pressures. Consumers should not be put under pressure when making a purchase of such magnitude in their lives. He challenged the Minister on those issues. He also raised the issue of paying maintenance charges twice, which I will come to, and suggested that the Minister might want to look at a retention scheme.

The hon. Member for Kingston upon Hull North (Diana Johnson) told us, shockingly, that she had waited five years for a meeting. That is disgraceful, and she rightly named and shamed Persimmon for doing that. She mentioned the issue of sinking gardens, which sounds horrendous, and one householder’s fear that her fence and land would slip into the drain, which the council could not take enforcement action on. Since Persimmon was mentioned a number of times, it is important to touch on the obscene bonuses paid to its chief executives. Surely, such grandiose remuneration is unacceptable.

Other hon. Members talked about completion and adoption, promises that are made about facilities and the scary arguments that come later with developers about costs. It is common for problems to occur a couple of years after the purchase price is paid and people move in, and for the developer either to be nowhere to be found or to argue. That is simply not good enough.

We do not know what consumer protection measures will be proposed—as was highlighted, they have yet to be published—but they are unlikely directly to affect Scotland because of the devolved nature of housing. However, that does not mean they will have no effect, so I am keen to see what comes from them. For a number of years, homeowners have had issues with property factors. The UK Government recently consulted on the issue as part of its implementation of reforms to the leasehold system, which is very different.

The Scottish Government brought forward the Property Factors (Scotland) Act 2011, which means that since 2012, registration has been compulsory for property factors operating in Scotland and they have had to follow a code of conduct outlining minimum standards. There is also a new dispute resolution system. The homeowner housing panel, and now the housing and property chamber of the first-tier tribunal for Scotland, have allowed homeowners to challenge property factors in Scotland.

[Jim Fitzpatrick]

Property factors being property management agents in Scottish speak, yes?

[Drew Hendry]

I am grateful for that translation from the Scots.

A test case was brought by Mr Michael Marriott, a householder in Clackmannanshire, against Greenbelt Group in 2015. He took his case to the Lands Tribunal for Scotland and won, because it was found that the deeds were not compliant with the legislation. Perhaps that is a learning opportunity for the UK Government. Where there is a clear breach, homeowners can pursue a course to get factoring clauses taken out of their deeds altogether.

That has made a big difference, but it would be foolish to say it has cured all the problems. There is much more work to be done in Scotland, including on issues with shared factor arrangements on private housing estates. There is one such estate in Milton of Leys in my constituency. One of my constituents was advised that his factoring bill had risen from £100 in 2005-06 to £173 in 2017-18, with no explanation—it was just applied to the costs.

Transport and Local Infrastructure

Debate between Jim Fitzpatrick and Drew Hendry

Thursday 19th May 2016 Commons Chamber

[Drew Hendry]

I am grateful to the hon. Gentleman for his earlier comments. On road safety, does he agree that if one of the driving principles behind developing driverless technology in the UK is increased safety, it should apply across the length and breadth of the nations of the UK, not just in urban areas?

[Jim Fitzpatrick]

The hon. Gentleman is correct. Most people who listen to media reports might think, “There’s nobody in charge of driverless vehicles, so they’re more dangerous and riskier.” The reality, however, is that the technology now exists for automatic stop, electronic stability control and anti-skid brakes, which make the vehicles much safer. It is the human element—people who are on their mobile phones, who have been drinking or taking drugs, who are not wearing seatbelts, or who are speeding—that causes most crashes and deaths. If we take out the human element, we will see the number of road crashes tumble and a fall in deaths and serious injury. The hon. Gentleman is right to say that the proposal should be extended right across the piece.

My only other point on transport relates to air quality. Transport contributes to more than 20% of emissions. With the advent of new technology, there is real scope to reduce that figure. I hope that the Government will work with the new Mayor of London, Sadiq Khan, on his commitment to address the issue more seriously than it has been for years.

On housing, the biggest issue in my constituency, London and the vast majority of the country is the need to build new homes. The Housing and Planning Minister has acknowledged that I do not think that the Housing and Planning Act 2016 will help. Selling off the most expensive properties in Tower Hamlets will not help our housing crisis, because it is the bigger homes that will be sold off and that will affect larger families. The imposition of market rents in and around Canary Wharf means that local people will not be able to afford them. On the sell-off of housing association homes, we need local replacements. A percentage of all new developments need to be affordable homes.

London needs people working in the city. For example, how do we expect Palace of Westminster staff to be able to get here 24/7, from all parts of London and the south-east, whether they be security officers, police officers, cooks, cleaners or involved in other duties, if they do not have somewhere affordable to stay in London? We are pricing them out of the market and making it more difficult for them to get in. London’s economic infrastructure will be negatively affected if we do not make sure that affordable housing is available.

Finally on housing, I want to refer to the speech that the hon. Member for Worthing West made on leasehold reform yesterday, which can be found at columns 71 to 75 of Hansard. I thank the Housing and Planning Minister for his interest in the matter. We have had several meetings with him and his civil servants on leasehold reform. The hon. Member for Worthing West has also been to No. 10. I hope we can make progress on leasehold reform, including the right to buy, retirement homes and private sector sales, which represent the vast majority of new properties. The sector is raising its own standards, but most of us believe that it requires regulation and statutory reform. The Leasehold Knowledge Partnership is working very hard to help people who are in a very difficult situation.

I am disappointed that there is nothing in the Queen’s Speech on banning the use of wild animals in circuses. On Tuesday I attended a photocall at No. 10 with kids from Devonshire Road Primary School in Bolton. This is a Government commitment, and the Prime Minister has made a personal commitment, that it will be in the legislative programme by 2020. I am sure that it will come, but it is disappointing that it is not happening now. It is not a major issue in general national politics, but it affects a lot of people around the country.

Business rate retention for local authorities is great news for my constituency in Tower Hamlets. We are on the City of London fringe, and Canary Wharf is at the heart of my constituency. Holding on to those business rates will result in us moving from being one of poorest to one of the richest boroughs in the country. Obviously, the Government will have a mechanism to equalise, which has always been the case. I am not clear on how that is going to work, so I look forward to hearing the Minister explain it later, if he has time.

During business questions this morning, the shadow Leader of the House, my hon. Friend the Member for Rhondda (Chris Bryant), said that he welcomed the National Citizen Service being put on a statutory footing, but youth services have been cut right across the piece. There are some great organisations in my constituency, including 2nd East London scout group, 31 Tower Hamlets air cadet training corps, the Marine Society and Sea Cadets, and the Prince’s Trust, which has recently moved its London and south-east headquarters to Mile End. They are doing fantastic work and it is equally welcome to see an adult service being put on a statutory basis. Organisations such as Keep Britain Tidy will be very much in support of that.

On local government and planning, when we passed the Planning Act 2008, the shadow Minister, my right hon. Friend the Member for Wentworth and Dearne (John Healey), who is on the Front Bench and might speak later, led on the Bill for the Labour Government. We introduced an independent planning commission for nationally significant infrastructure projects. One of the first things the coalition did was repeal that Act, and five years later the Conservatives recognise that a fast-track planning procedure is needed for nationally significant infrastructure.

There is a real conflict for local councils that have the prospect of shale extraction and fracking. Notwithstanding the clamour from the environmental movement and the Greens for shale extraction not to be proceeded with, I think the vast majority of people in the country would much rather that we use our own natural resources than import gas from the US, Qatar or Russia. Shale extraction makes much more sense for our economic security, but the Government have to address the conflict between local communities being panicked and scaremongered into opposing shale extraction applications and the need for that national industry to be developed.

The measures on counter-extremism, anti-terrorism and security are all welcome. We are living in much more dangerous times, and getting the right balance between civil liberties and the opportunity for the security and intelligence forces to protect us is a real challenge. When the three girls from Bethnal Green went to Syria, people asked why the security forces and the police had not intervened, but exactly the same people objected when the Government tried to improve security, intelligence gathering and interception. I supported identity cards under the Labour Government. I thought it was wrong that we did not proceed with them, and it is wrong that the current Government are not doing so. They would be a simple mechanism and a positive step forward at a time when we are all carrying ID in the shape of credit cards, contactless payments cards or whatever.

I am grateful for the opportunity to contribute to the debate, Madam Deputy Speaker.

Transport for London Funding

Debate between Jim Fitzpatrick and Drew Hendry

Tuesday 15th December 2015 Westminster Hall

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

It is a pleasure to serve under your chairmanship, Mr Hollobone. I congratulate the hon. Member for Harrow West (Mr Thomas) on securing the debate. I also congratulate the Minister of State on his recent promotion, and I know that he will enjoy the additional challenges it brings.

I have been asked to sum up for the third party, and I will try something quite unusual, which is to do so in a third-party way, and to be as apolitical and as helpful as I can. I want to refer to Scotland and what the Scottish Government are doing, because I believe in their approach, and I think it would be helpful to bring it into this discussion.

The hon. Member for Harrow West talked about Transport for London services being crucial to business and to people. He talked about London’s urban growth being the fastest in the European Union. I have something in common with him, because Inverness is the fastest-growing city overall in Europe. I know exactly what he is talking about, but perhaps on a different scale.

People coming into London have an interest in this issue as well as those already in London. People need to make internal connections, but external connections cannot be ignored. It is every bit as important to make sure that links such as the Gatwick Express operate properly. I hear again that it is a disaster this morning, incidentally, with two trains cancelled and another stuck for many minutes on the line. The hon. Gentleman talked about roads being under pressure, and the knock-on impact of a failure to invest. That came through in all hon. Members’ contributions, as did the point that what may have been missing is a longer-term vision and an overall view of how things should be developed.

The hon. Member for Vauxhall (Kate Hoey) made an important intervention in which she talked about the absolute need to engage people in major decisions. That brings me to my first point about the approach in Scotland, which I feel passionate about. I think there is agreement across parties on an outcomes-based approach to development, where we take things forward towards a longer-term outcome with people in mind, rather than as an afterthought. That came through time and again.

The Minister spoke in an intervention about smart ticketing, and I compliment him on doing so. We have to make it easier for people to use different modes of transport, but it is important—we must mention this early—that smart ticketing be fair. It should be carried forward in such a way as to enable everybody to interact with it. A point was made about fairness later on, and adopting an outcomes-based approach makes a big difference to that.

The hon. Member for Poplar and Limehouse (Jim Fitzpatrick) rightly mentioned the hard-working staff on the network. Too often, we forget that when we ask people to take charge of new developments and bigger challenges, those involved in their delivery will be put under pressure. The hon. Gentleman was quite right to mention those people. We should reflect in the same way on the people who work in the transport system across the nations of the UK. He made the telling point that the DLR recently had its first strike for 23 years, and that tells us something about the communication that is needed. He also made an important point about the growing need to take shipping into account.

One thing missing from the debate—I am not trying to score points, but I want to take in the context—was any discussion of possible airport expansion. Hon. Members do not know where the pressure will be in London, because the decision has not been made yet, but that must be taken into account in future planning.

[Jim Fitzpatrick]

Some of us, like the hon. Gentleman, listened in the Chamber yesterday afternoon to the statement from the Government, in which they delayed the decision yet again. That was most frustrating for most colleagues right across the Chamber.

[Drew Hendry]

I agree about that frustration. As I have said, I will not try to use this debate to score points, but we must look at making decisions that are connected to others that we make. Other hon. Members brought that out in spades today.

The hon. Member for Hammersmith (Andy Slaughter) talked about Transport for London as a property developer. He asked what kind of developer it would be, and what it would do in future. The point about outcomes for people shone through in his questions, and it is important to look at what kind of outcomes there will be. If property development will be a vehicle for investment, he is quite right to say that we should know what kind of investment will be made. He asked what the point was of TfL investments if not to improve transport for people.

The hon. Member for Eltham (Clive Efford) talked about air pollution, having the correct infrastructure requirements, and the need to see what people want to do in the future, which goes back to my point about outcomes. The hon. Member for Strangford (Jim Shannon), who is unfortunately not in his place, mentioned buses in an intervention. I want to mention Britain’s largest bus manufacturer, Alexander Dennis, in Falkirk. It would, I am sure, be delighted to supply vehicles. What is needed is an outcomes-based approach with a longer-term view. People should not, as the hon. Member for Eltham pointed out, be made to pay more just because of where they live. That should be taken into account when deciding how to take things forward.

I said I would talk about Scotland. Since 2007, more than £15 billion has been invested in transport, and the Scottish Government have adopted an outcomes-based approach to policy, through which they look for a healthier, wealthier, greener approach to development. I believe that that is now considered to be the right approach by those from across the different parties in Scotland. We have looked at sustainable transport options that will encourage people out of their cars, and made sure that we made the investments necessary to connect people.

Our conversation this morning contains a contradictory message, and I will fire back a bit of a warning to hon. Members. They cannot say, “Let’s not invest in cycling and walking” while moaning about emissions and congestion. There has to be a balance between those things. In Scotland, since 2011, we have invested in 190 km of cycling and walking routes. We have also made the largest single investment in Scotland’s transport history with the £3 billion upgrade of the A9, because it is a vital part of the transport mix, and it is what people asked for and required. I am delighted to say that it connects my constituency with Perth, and that connection is ongoing. That development was vital to the highlands economy, and it was part of our work on a mix of transport options, which included simultaneous investment in the rail links between Aberdeen and Inverness, and Inverness and Perth. Investment is not limited to those lines, however; hon. Members will be aware of the recently opened borders railway link, with which we threw off the ghost of the railway cutback and built the first new railway in Scotland since the Beeching cuts. In our rounded approach, we take an outcomes-based look at how transport has to be put together.

I will not take much more time. In summary, people’s absolute need and right to be connected fluidly to all the different transport options available came through clearly this morning. That is a substantial challenge for an organisation as big as Transport for London, but if it takes an outcomes-based approach—I fundamentally believe that all hon. Members’ contributions this morning indicated the need for such an approach—it will start to get somewhere with looking at the wider picture and the longer-term view.

Of course, if greater public investment is to be made, the public need to be involved and feel involved. It would be a good move for Transport for London to look at how it engages with people and how it will take forward conversations with the relevant communities, so that it can ensure that it carries forward in its planning the points made by hon. Members this morning. I hope that it will heed my warning and take an outcomes-based approach to such development.