Co-operative Housing

Debate between Jonathan Reynolds and Tom Greatrex

Wednesday 11th July 2012 Westminster Hall

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Mr Weir, and to debate the potential effects of the Berrisford v. Mexfield Housing Co-operative Ltd Supreme Court judgment on the future of co-operative housing in the UK. Many of us who believe that the co-operative model has a significant part to play in the UK’s current shortfall in affordable housing think that this case has raised some important issues. I am grateful to have the opportunity to discuss them today.

The court case, which I will refer to as Mexfield, or Berrisford and Mexfield, has had a profound effect on the tenancies issued by many housing co-operatives. Among other things, it has reinforced the need for a new legal framework to define the relationship between a housing co-operative and its members. Instead of applying feudal landlord and tenant law to co-operative housing projects, we would have a law that recognises the right of occupancy as a result of membership of that co-operative, as defined in the members’ agreement.

I made that argument last year when I introduced a ten-minute rule Bill that would have recognised co-operative housing tenure in UK law for the first time. Before I continue, I should say that I am grateful to the Minister for Housing and Local Government, who cannot be here today. He took time after that ten-minute rule Bill to meet me to discuss the matter further. I appreciate his interest in these matters.

The ruling of the Supreme Court in the Berrisford and Mexfield case highlighted the problems caused by the absence of this specific provision for housing co-operatives in law. I hope we can explore the implications of the court case and the actions that need to be taken in the short and long term to deal with them.

Before examining the specifics of the court ruling, I will turn to housing co-operatives more generally. I see here several colleagues from the Co-operative party, who will be well aware of the merits of housing co-operative schemes. For others less familiar with them, let me explain how they work. Like any co-operative organisation or business, fully co-operative housing projects are owned and controlled by the people who use their services, in this case, the residents.

The co-operative model gives residents democratic control of the property in which they live, giving them a greater say over the management and maintenance than they would otherwise have as tenants. Residents also decide codes of conduct and rules of membership. In brief, the co-operative model is based on a combination of rights with responsibilities and a respect for mutualism. I believe it is a model that builds strong communities, with the potential to increase the supply of affordable housing, and I would like to see it flourish.

[Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)]

I congratulate my hon. Friend on securing the debate and on his ten-minute rule Bill on housing co-operatives, which I was proud to support. Does he agree that, in addition to the points he just outlined, co-operative housing can be an important way to help some people obtain their first home?