Clyde House and A2Dominion

Kit Malthouse Excerpts

Thursday 14th March 2019 Commons Chamber

[The Minister for Housing (Kit Malthouse)]

I congratulate my right hon. Friend the Member for Putney (Justine Greening) on securing this important debate. I understand her concerns and those of her constituents about the terrible situation at Clyde House, the state of their homes and how this has been addressed by the landlord, A2Dominion. I also congratulate her on the obviously pivotal role she played in resolving the situation. It is obvious from events that her intervention has brought A2Dominion up short and made them acknowledge its mistakes and errors. Indeed, I read in The Guardian that the director of property services had issued an apology saying:

“We recognise that things are not right and we’re going to put them right. We haven’t performed well, and you have my personal apology.”

She no doubt has the gratitude of her constituents and my congratulations as the Minister and those of the many Members who deal with these sorts of issues on a daily basis, as I do in my constituency.

Let me first make it clear that everyone has the right to be safe and to feel safe in their home, and they should expect their complaints to be dealt with promptly and effectively. The Government have taken steps to ensure that happens. Last year we published our social housing Green Paper, which sought views on how to improve redress for social housing residents in particular, and on a number of other issues that my right hon. Friend has raised this evening.

We engaged extensively with residents to inform and shape the Green Paper. We heard that residents want redress quickly when things go wrong, and for processes to be clearer and simpler. The Green Paper asked a range of questions on how we could deliver that, including a question on the future of the democratic filter, which is the process whereby a complaint is referred to the ombudsman via a designated person, or the complainant must wait eight weeks, which can further delay the complaints process.

The Green Paper also set out proposals to hold landlords to account more. To that end, we are reviewing the regulatory system for social housing so that the regulator can take action when a landlord consistently fails its residents. We want to rebalance the relationship between landlords and residents, and we will underpin that with a robust regulatory framework. We will publish our response to the Green Paper and the outcome of the review of regulation in due course.

I held roadshows across the country with hundreds of residents, particularly in social and affordable housing. I made a pledge that at some point before the summer we will publish that action plan. It will have a clear sense of direction and a clear timetable, because I was asked repeatedly by residents whether it was worth attending the roadshows, and whether they will actually see some change. I have made that pledge. How long I will be in this job, I am not sure—Housing Ministers do not often last that long—but I will try.

I also want to mention the other actions that the Government are taking to help all tenants. The Homes (Fitness for Human Habitation) Act 2018 will strengthen all tenants’ rights and protect them from poor practice. The Act, which comes into force on 20 March, will empower all tenants, both private tenants and those in social housing, to take their landlord to court if their property is unfit for human habitation. Under the Act, landlords must ensure that their properties are fit from the start and throughout the tenancy. If they do not do so, the tenant has the right to take legal action. We have published guidance for tenants to help them understand their rights and responsibilities under the Act, and guidance for landlords and local authorities on how the Act might affect them.

[Seema Malhotra]

Can the Minister clarify whether, under the new arrangements, which I think we are all pleased to see coming into force, if a resident takes a landlord to court and wins, there are any circumstances in which they might be required to pay the landlord’s legal fees?

[Kit Malthouse]

That is a very good question, to which I do not actually have the answer, but I will make inquires and write to the hon. Lady. In most cases, as I am sure she knows, it is at the judge’s discretion where costs fall, and often it is decided on the merits of the case.

The 2018 Act does not place any additional responsibilities on social landlords, as they are already required to maintain their homes to a decent standard; it will act only as a backstop. We expect any problems with properties to be resolved far before they reach that stage.

The first step for residents with a complaint is to report problems to their landlord. The regulator expects all social landlords to have in place a complaints process that deals with issues promptly, politely and fairly. The onus is on individual landlords, working with residents, to set their approach and timescales for handling their residents’ complaints. I want to stress that if any hon. Member, acting on a constituent’s behalf, is unhappy with the response provided by a registered provider once their internal complaints process has been exhausted, that hon. Member may take the matter further.

Social housing residents can also approach the Housing Ombudsman Service at any time to seek advice. However, in order to refer a complaint formally to the ombudsman, a resident’s complaint must pass through the democratic filter. That involves referring a complaint to a designated person—a local councillor, a Member of Parliament or a tenant panel—for them either to deal with the complaint or to refer it to the ombudsman, or waiting eight weeks after their landlord’s complaints process has been exhausted. If the ombudsman determines that a complaint falls within its jurisdiction, it will investigate the complaint to determine whether there has been maladministration by the landlord. It will then issue a determination letter, which may include orders and recommendations to resolve the dispute. The landlord is expected to follow any orders within a specific timeframe.

[Ruth Cadbury]

A2Dominion is one of a number of large housing associations that, by definition, are charities, and yes, it is a registered social landlord. Almost all of its residents, certainly in my constituency, are either social rent tenants or leaseholders under the shared ownership scheme, many of whom are on fixed incomes. I see again and again seriously poor management practices and lack of repairs, such as those the right hon. Member for Putney (Justine Greening) has described. These residents do not have the time or energy to go through the process that the Minister has just set out. What they want is a decent-quality housing service that is at least as good as the local authority, and it should be as good as anyone would expect.

[Kit Malthouse]

I completely agree. I have a large number of housing association properties in my constituency, too, and my postbag as a constituency MP is filled with similar complaints. When I first became a Member of Parliament, I was astonished and dismayed to find I was effectively the postbox for local housing association’s complaints service. Were I the chief executive of such an organisation, I would be mortified if local Members of Parliament were receiving the level of correspondence that some of us do, and I would be taking action.

We have recently seen some large housing associations acknowledge their failures: A2Dominion has acknowledged its particular failure in Clyde House, and L&Q, one of the G15, has come out very publicly and acknowledged its failure. Action has been taken—for example, in the past couple of years on Circle Property, which also failed on service—but there is more we can do, particularly on regulation, about which the Green Paper will say more. We can swing the pendulum of regulation toward a sense of customer service and away from purely financial regulation. As I say, there is more to come.

Sometimes things go wrong, and where that happens it is of the utmost importance that any safety concerns are resolved as soon as practicable. All registered providers of social housing must comply with the regulatory standards set by the Regulator of Social Housing. That includes ensuring that all their properties meet and are maintained at the decent homes standard, which means that homes should be free of any category 1 hazards, in a reasonable state of repair, have reasonably modern facilities, and provide a reasonable degree of thermal comfort. The regulator’s standards also require landlords to provide a repairs and maintenance service that responds to the need of tenants and offers them choices. The objective is to get repairs and improvements right the first time.

[Justine Greening]

It would be helpful if my hon. Friend covered the question of compensation. Often there are very serious problems with people’s properties, and they may even need to be moved out. Those are extremely disruptive times for families with young children, and they end up living in hotels. Will the new framework provide more redress to compensate people who are affected by bad performance, as my constituents have been?

[Kit Malthouse]

My right hon. Friend poses a good question. I do not want to front-run the publication of the plan document, but she can be assured that one of the critical issues for the Government is to make sure that tenants are dealt with professionally and quickly, and that their problems are sorted out the first time. We are considering devising a performance framework for housing associations and other registered social landlords, making performance transparent to tenants, which might be useful to them when comparing landlords.

Where landlords do not provide a proper repairs and maintenance service, tenants should complain and have the right to expect that something is done. If my right hon. Friend’s constituents consider that their property has serious hazards that present a risk to health and safety, they can report that to their local council, which can inspect and assess the property using the housing health and safety rating system. If the local council becomes aware of a serious category 1 hazard, it has a duty to take appropriate action to address it. Hazards can include, among other things, damp, excess cold or heat, poor sanitation and fire risks. Councils have a range of powers to ensure that landlords take appropriate action to rectify the problem; in extreme cases, the council can take emergency remedial action itself and charge the landlord to do the work.

[Justine Greening]

My hon. Friend has reminded me that it was remiss of me not to give thanks to Wandsworth Council for the work it did when issues of safety in Clyde House were raised. I put on record my thanks to the inspectors who went and made sure that health and safety measures were in place.

[Kit Malthouse]

I am grateful for my right hon. Friend’s intervention. I am pleased to hear that the system is working and that Wandsworth Council has played its part in resolving what was obviously a difficult and trying time for the residents of Clyde House. I hope the work we are doing on the social housing Green Paper and on shifting regulation generally more towards consumer standards and away from financial regulation will mean that the time in question will become a piece of history that we can all forget.

I thank my right hon. Friend again for securing this valuable debate. I have tried to set out the arrangements that are already in place to protect tenants, and I hope I have also made clear my commitment to improving things further. Nevertheless, there are valuable lessons to be learned from the issues at Clyde House, and I will be asking A2Dominion to come into the Department to explain what happened, what went wrong and where things might be improved. I would be more than happy to sit down with my right hon. Friend to discuss her ideas so that we can feed them into our work on the social housing Green Paper. As I have said, I am committed to ensuring that everyone can seek timely and effective solutions when they have a housing problem and can live in a home of which they can be proud.

Question put and agreed to.