Housing and Planning Bill (Tenth sitting)

Kevin Hollinrake Excerpts

Tuesday 1st December 2015 Public Bill Committees

[Mr Thomas]

The hon. Gentleman begins to make my point for me. If he observes a little patience but continues to listen with the enthusiasm he has shown thus far, I will come to exactly that point.

I should allude to some of the difficulty that the Opposition, the hon. Gentleman and some of his friends, and those listening and watching our proceedings, are facing in being able to scrutinise the terms of right to buy. In response to the points of order I raised last week about the lack of information about right to buy, the Minister referred us to the offer details on the National Housing Federation website. When I had the chance to read that information, it made clear that the Government and the National Housing Federation and its members would work together on the implementation of an agreement and an operational document would be published. To date I can find no evidence of that operational document having been published. I look forward to the Minister giving clarity on that. It is particularly important in the context of the pilot schemes that have been launched. We simply do not know the terms on which those housing associations are piloting the offer of the right to buy.

In the context of the amendment, we do not know whether sheltered and specialist housing are excluded, or whether in the context of amendment 146 other forms of housing will be excluded in line with the original offer document. We do not know how long the pilots will run before other housing associations are required to join in. We do not know how the deal will be financed, given that it will take some time for vacant high-value council homes to be sold off to provide the finance to compensate housing associations.

As I indicated, we do not know whether the five pilots are operating exactly in line with the headlines that were agreed between the National Housing Federation and the Government. We do not know whether the five housing associations will be committing to replace like for like rented homes for sale with other homes for rent.

In particular, in the context of my amendment, we do not know whether the five housing associations will specifically replace any sheltered or specialist housing that is sold in a like-for-like way. In the National Housing Federation offer, which was published on its website, housing associations expected the Government to work with them to put in place measures to limit fraudulent activity. That is surely particularly important in the context of vulnerable adults who, in some cases, will be in sheltered or specialist housing provided by housing associations.

It would have been helpful for the Minister to have published the operational document to which he, presumably, and the National Housing Federation remain committed. Presumably, within that document, there would have been information on how action to stop such fraudulent activity might have taken place. One of the concerns raised in evidence to the Communities and Local Government Committee by one of the housing associations was the worry that family members or friends might try to persuade someone to buy their sheltered housing property when, in fact, they may not really want to do that. It is presumably that type of activity that the Government might want to stop. It would have been helpful to have the detail of the types of measures that they were going to put in place to stop that.

The offer document also anticipates the Government putting in place arrangements to manage the financial costs of the right to buy, to ensure that the cost of sales does not exceed the value of the receipts received, which could include an annual cap on the cost of right-to-buy discounts. Does the Minister remain committed to that in general, as part of the offer and in the context of sheltered and specialised housing? Will it apply in the context of the five pilot housing associations? It would be helpful to hear a little more detail.

The National Housing Federation offer specifically suggested seven categories where housing associations might exercise discretion over sales. Again, it would be helpful to hear from the Minister on whether, as part of the deal that he has agreed with the housing associations that are piloting this deal—the London & Quadrant Housing Trust, or L&Q, Riverside, Saffron, Sovereign and Thames Valley—the seven categories will remain the same, not least because, in the context of the amendment, one of the specific categories mentioned includes “supported housing”, as defined by part 5 of one of the previous Housing Acts. Other categories that are potentially directly related to the discussion on amendments 89 and 146 relate to properties in rural locations being excluded, properties where there are restricted covenants being excluded, and properties held in a community land trust being excluded. Again, it would be helpful to hear from the Minister whether the five piloting housing associations will continue to offer exclusions in those areas.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

No doubt the hon. Gentleman has read the briefing from the National Housing Federation, which said, in answer to the question of how certain types of affordable home will be protected, that the agreement allows housing associations to protect the affordable homes they own that would be difficult to replace, for example, specialist housing or homes in rural areas. Does that not satisfy his concerns?

[Mr Thomas]

Not completely, I have to say. Although it was helpful to receive the NHF document, it would have been helpful to have received the full operational document from the Government. Why does it not satisfy my concerns? I give the example of the Greenoak Housing Association, which operates in Woking. Its chief executive gave evidence to the Communities and Local Government Committee on 4 November and noted the fact that Greenoak is a particular specialist in the supply of sheltered housing. She said:

“Around one-third of our housing is sheltered with support. We could obviously exclude them ourselves, but the difficulty would be in re-providing.”

The hon. Gentleman will be aware that, as part of the deal with the Government, the National Housing Federation committed that, where a property was excluded from a sale but a tenant wanted to buy it, housing associations would have to offer an alternative property for sale. The chief executive of Greenoak said:

“We do not see why we should be giving a portable discount for people who are in the most suitable housing for them at the current time with the support that they need.”

It would be helpful to hear from the Minister what future the Government see for housing associations that are specialists in sheltered, supported and other specialist housing. How will those housing associations deal with the issue of portable discounts and the potential requirement they face under the deal to offer another property for sale? There is a risk of that making those housing associations not financially sustainable, which I am sure the hon. Gentleman, and indeed all hon. Members, would not want to happen.

What happens when all properties owned by a housing association in one area are specialist or sheltered housing? How would the right to buy be exercised in that situation? One could understand a tenant approaching the housing association and saying, “I want to stay within Harrow because it is so well represented in Parliament,” and no doubt for other reasons. The housing association will want to do the right thing by its tenant, but it is only offering sheltered housing in that area and wants to maintain that stock. How would that situation be dealt with by the Government and housing associations?

Age UK, in its written evidence, specifically laments the failure to build more sheltered and retirement housing and to offer older people more housing options in later life. It argues:

“Based on demographic trends, specialist housing will need to increase by between 35 per cent and 75 per cent just to keep pace with demand.”

Age UK is concerned about the decline in the availability of sheltered and other forms of specialist housing for older people on low incomes.

Although I welcome the extra capital funding announced as part of the spending review for specialist housing, which I assume includes sheltered housing, the Bill must be clear about the need to exclude sheltered and other specialist housing from the right to buy in order to ensure there is not inadvertently a further decline in the provision of sheltered housing as a result of the Bill.

I support amendment 146, tabled by my hon. Friends, not least because there is increasing concern in Harrow and, indeed, other parts of London about the provision of housing that key workers are able to afford. Of course, those key workers will no doubt have the aspiration I alluded to earlier to buy a home in due course, but if that is some way off, their immediate priority will be to find a property that is affordable to rent. One thinks of careworkers, of nurses, of teaching assistants, of the cleaner for the Minister’s office and of policemen, on occasion. One wants surely to ensure that there continues to be a reasonable supply of affordable accommodation within reasonable distance of those people’s place of work.

I welcome also the National Housing Federation decision to insist that co-op housing is not included in any right to buy, but there should be additional protection on the face of the Bill. Indeed, the Housing Act 1985 approached the issue of exclusions from the right to buy by putting those exclusions on the face of the Bill. Schedule 5 to that Act lists a series of exceptions to right to buy, including—this is a particular interest of mine—

“if the landlord is a co-operative housing association.”

The amendment would replicate that provision. Surely it would be sensible to put that on the face of the Bill. In that spirit, I look forward to the Minister’s reply to the various questions I have asked and hope that the hon. Member for South Norfolk is convinced of the sensibleness of my amendment.

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[The Chair]

Before I call the Minister, helpful or otherwise, may I try to be helpful to Members? I remind them that we are discussing an amendment to a clause. Making repeated interventions on the same issue is not really following the discourse as it is laid down. There should be a debate, and questions should arise from that. At the end, the Minister replies, and then the mover of the amendment is called to make a contribution in response. Then Members get a further chance to debate the clause at the end, during clause stand part. Repeated interventions on the same amendment to the same clause, over and over, limit the Committee’s work to scrutinise the Bill. I ask Members to be a bit more succinct in their analysis and to wait until the appropriate time.

[Kevin Hollinrake]

Part 4 of the Bill aims to address the simple problem of supply and demand, which of course controls the housing market. We are simply not building enough homes. The United Kingdom needs 230,000 homes a year. We have seen huge improvements over the past five years: 88,000 homes were started in the depths of the housing recession and there were 136,000 housing starts in England in 2015—a 56% increase. Planning permission consents numbered more than 240,000, so there has clearly been great progress along the track towards building more homes.

[Matthew Pennycook]

Is the hon. Gentleman at all concerned by the Office for Budget Responsibility’s downward revision of its estimate for new homes to 185,000? The estimate is down 34,400 since the election.

[Kevin Hollinrake]

There is no doubt that, in my constituency alone, we have seen a 100% increase in the amount of building in 2015 versus 2014. If the hon. Gentleman looks at his figures, I am sure he will see a similar increase in his constituency. Has he looked at his figures? There is no doubt that the data on the direction of travel in my constituency and many others like it are very clear—there is a 56% increase. Planning consents are increasing, too, but there is more to be done. The Bill is about releasing more land, particularly brownfield land, and expediting the whole planning process to ensure that local authorities properly staff their planning departments. The Bill allows planning in principle, giving developers more certainty about the land they are acquiring so that they can build properties on that land.

The other key thing that we need to address in the housing market is affordability, and of course those challenges are about lack of supply, which we also hope to address with some of the measures in the Bill. Owner-occupation has fallen in recent years, largely due to the recession, and it is something that we desperately want to address. I was lucky enough to buy a home in my early 20s, and I imagine that most people in this room own their own home. Why should we lock people out of that opportunity to own their own home? The Bill contains provisions on starter homes and, as in this clause, on voluntary agreement on right to buy. It is absolutely right to use our public assets more efficiently and effectively, and to release them to allow more building. Opposition Members have asked several times whether the affected homes will be replaced, and time and again we have seen evidence showing that the answer is yes.

[Mr Thomas]

The hon. Gentleman needs to look more widely for his figures on the question of like-for-like replacement. Shelter has made it clear that only one in nine homes sold since 2012 under the refreshed right to buy has been replaced.

[Kevin Hollinrake]

The hon. Gentleman will be aware that Shelter is not a housing association or a housing provider. I am not sure what Shelter is most of the time, but several housing associations gave evidence to our Committee. I am not sure whether he was in attendance to hear their evidence, but when my hon. Friend the Member for Croydon South asked whether the measures would result in increased housing provision, they all said that it would. The measures in the Bill will clearly increase supply and will increase the number of affordable homes to buy.

The National Housing Federation told us that the agreement allows housing associations to protect affordable homes, specialist homes and rural homes. Again, that is the question raised by the amendment. Many of the housing associations I have met outside the Committee have said that they will be selling more homes and building more homes as a result of these provisions. Riverside Housing expects a fourfold increase in the number of homes that it will sell as a result of the extension of right to buy. I absolutely support the provisions of the Bill and the clauses that the amendments seek to change.

[Mr Bacon]

I have listened with care to my hon. Friend. Did he hear the hon. Member for Greenwich and Woolwich refer to the OBR? Has he noticed that the OBR does not come out with statistics on how many shoes or chairs it thinks the economy is going to produce? It does not even come out with statistics on how much food is going to be produced and whether the supermarkets will be full or not. I am reliably informed that if someone does not eat, they eventually die, yet somehow we have enough food. Does my hon. Friend think that the central problem may be that the supply does not rise to meet demand, and does the Bill not help with that?

[Kevin Hollinrake]

Absolutely. Many of the provisions in the Bill that we have discussed, such as planning in principle for starter homes, will help to solve that problem.

[Matthew Pennycook]

The hon. Gentleman mentioned Riverside Housing, which said in its written submission that

“one for one replacement will be very challenging”.

Does he think that that is wrong and that the organisation will ultimately be able to provide one-for-one replacement, or are we talking about replacement in different areas, across different tenures?

[Kevin Hollinrake]

Challenging does not mean impossible. There are great challenges in the housing market and we need to rise to those challenges. As for one-for-one replacement, I feel that replacement is the wrong term: it should be an addition. It is an additional home, because the people who are buying that home were previously renting, and were locked out of the housing market with no prospect of getting on to the housing ladder. They are buying that home and will still live in that home. They will benefit from the place where they have lived, and most of them will live in that home for many years to come.

[Dr Blackman-Woods]

The reason we talk so much about replacement is that there is a huge shortage of affordable and social homes to rent in this country. Right to buy stops a social home for rent from being available; that is why we talk about replacement. We are not against the right to buy itself, but it needs to be accompanied by a like-for-like replacement.

[Kevin Hollinrake]

I am very pleased to hear that. If the hon. Lady visits the Inside Housing website, she will see evidence from David Orr, who says that these provisions will

“ease pressure in all parts of the market, including the rental market.”

The measure will help to improve that supply. It will also help to provide affordable homes to buy for people who are locked out of the market.

[Brandon Lewis]

Sir Alan, it is a pleasure to serve under your continued chairmanship at the start of the week. Some 45 minutes ago, the hon. Member for Harrow West began, if I remember correctly, by supporting the principle of the aspiration to home ownership. It is a shame that, with the exception of my hon. Friend the Member for Thirsk and Malton, we have spent the rest of the time listening to the Opposition speaking against home ownership. They want to stop people having the chance to own their own home and have tabled amendments to that effect.

We touched a few moments ago on the issue of the extra homes being built following right to buy. I will not go into too much detail—I will take your words quite directly, Sir Alan—and will stick to things that are in the scope of the Bill. My hon. Friend made a very good point. On these extra homes that are being built, I understand why the hon. Lady makes the point she does, because, to be fair, I suspect that the Opposition do not quite understand how right to buy and extra homes works. Under 13 years of Labour, for every 170 homes sold under right to buy, just one was built, which is shocking. Under the reinvigorated scheme that came in in 2012 one home is guaranteed to be built for every home sold. As we have heard in statements on the Floor of the House by the Secretary of State and by me, we are reaching that target. In London, we are closer to two homes built for every home sold.

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[Kevin Hollinrake]

The top 100 housing associations employ an average of 1,000 people. Is it not reasonable to expect that they might be able to find efficiencies of about 1% per year among those employees?

[Dr Blackman-Woods]

The hon. Gentleman needs to make that point to the housing associations themselves. They have told us in their evidence to the Committee and to the Communities and Local Government Committee that, on the basis of what has happened with both the Welfare Reform and Work Bill and the Housing and Planning Bill, they will re-profile their activity and adjust their business plans, unfortunately moving away, it appears, from the provision of social housing for rent.

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[Dr Blackman-Woods]

As I have already said to the hon. Lady, the amendment looks at replacement like for like in terms of tenure located in the same area and in accordance with assessed housing need. What those houses might actually look like is a very interesting discussion—one which, in terms of ensuring the quality and sustainability of products, I am very happy to have, although I fear that the Chair might rule me out of order if I did so.

The review of evidence that was asked for by the Communities and Local Government Committee, which is looking at right to buy, is being carried out by Professor Ian Cole and his colleagues at Sheffield Hallam University. The review noted that right to buy

“has contributed to a substantial reduction of the social housing stock, which—in the absence of countervailing new build programmes—has caused supply problems”

and

“a loss of relets…The scale of the decline in LA relets in recent years is marked, and declined from 221,000 lettings to new tenants in 2000/01 to 83,000 lettings in 2013/14.”

Although Government Members might get very exercised—as the hon. Member for Croydon South did—about what happened under the Labour Government, it might be better if they were exercised about what has happened in the last five and a half years. It was in those years that we saw the huge decline in the number of re-lets.

It is interesting that while we have had a reduction in re-lets in the social housing sector, we have also had a decline in the proportion of home ownership, which has fallen from 70% in 2002 to just 64% in 2013. The coalition Government not only presided over a huge loss in lettings and re-lettings in the social rented sector, but presided over a huge reduction in home ownership. That seems to be a pretty comprehensive failure in their housing policy. It does not seem to be a one-dimensional failure—it is a multi-dimensional failure.

[Kevin Hollinrake]

Does the hon. Lady regret the 47% drop in first-time buyers between 2007 and 2008, and welcome the record numbers of first-time buyers published in August this year—the highest since October 2007?

[Dr Blackman-Woods]

However the hon. Gentleman wants to play this, home ownership fell from 70% in 2002 to 64% in 2013. I would have thought that he and his colleagues would want to share some responsibility for that awful state of affairs.