Private Tower Blocks: Removal of Cladding

Debate between Kit Malthouse and Kevin Hollinrake

Monday 29th April 2019 Commons Chamber

[The Minister for Housing (Kit Malthouse)]

I commend the hon. Member for Bethnal Green and Bow (Rushanara Ali) for securing this important debate. She has written to me on several occasions about this issue, and I congratulate her on her assiduous service to her constituents, as I do other hon. Members who have spoken in the debate.

I want to start by reassuring the House that I am well aware of the anxiety, fear and insecurity, as the hon. Lady put it, felt by many people living in blocks affected by this issue. Having met the UK Cladding Action Group, individuals and organisations from the Grenfell community and others, it is very clear to me that this event and its consequences have caused enormous distress—and there are also the practical issues that she rightly raised in relation to particular properties. I reassure her that much of my time, effort and commitment is spent trying to rectify this awful situation. Further to what the hon. Member for Cardiff North (Anna McMorrin) alleged about a possibly partial response, I gently point out that Grenfell Tower was in my London Assembly constituency. I served that community and the wider community for eight years. The idea that there would be any lack of commitment from my point of view is, frankly, for the birds.

Before addressing funding, I want to update the House on the wider remediation work under way. In the immediate aftermath of the Grenfell Tower tragedy, we established the building safety programme. A key objective of the programme has been to identify and remediate buildings with unsafe ACM cladding. We have collected data on over 6,000 private sector high-rise buildings, and we have identified 267 with unsafe cladding systems. There are plans and commitments in place to remediate 82% of those buildings. That includes buildings on which remediation has started or been completed. That progress is the result of action we have taken to put pressure on building owners and developers to reach a resolution.

In the private sector, we have been very clear that freeholders should do all they can to protect leaseholders from additional costs, by either funding remediation themselves or looking at alternative routes, such as insurance claims, warranties or legal action. The Secretary of State has written to all relevant building owners, setting out our strong expectation that leaseholders will be protected. He has asked them to find an acceptable solution urgently.

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

The Minister is doing much good work on this issue. He is always very responsive; he exchanged text messages with me on this issue early on Saturday morning. He says he takes nothing off the table, in terms of getting freeholders or developers to pay for this work. He also says that long leaseholders should not be responsible either. Where we cannot find a freeholder or a developer to hold accountable for this work, long leaseholders will be left in limbo; their apartments will be unsellable, and they will live under unacceptable stress. Is it not right for the Government to step in with a central fund to carry out the remediation work, and worry about whether they can find the freeholder or developer afterwards?

[Kit Malthouse]

I am grateful to my hon. Friend. If he will bear with me, I will come on to some of those issues in my speech. If I have not addressed them by the end, he can by all means intervene on me again.

Owing to our continued pressure, following the Secretary of State writing to all building owners, there is a growing list of owners and developers who are agreeing to fund remediation. Leaseholders are currently protected from remediation costs in 83 out of 176 residential buildings. The growing list of owners and developers who have stepped in includes Barratt Developments, Mace Group, Legal & General, Peabody, Aberdeen Asset Management and Frasers Property. I am pleased to say that following regular engagement from the Secretary of State, me and senior officials, the building owners at Green Quarter in Manchester have now written to leaseholders to confirm that a fund has been established. This will ensure that leaseholders will not have to pay for the cost of remediating the ACM. We are very pleased at this outcome. I know residents feel strong relief that the uncertainty and anxiety over costs has come to an end.

We remain concerned, however, that some leaseholders are not yet protected from costs. They have found themselves in this difficult and stressful situation through no fault of their own, having bought their properties in good faith. I would like to assure Members that the Secretary of State and I, as well as senior officials, continue to press owners and developers of all high-rise buildings with unsafe ACM cladding to protect leaseholders from paying for this essential remedial work. Further to that, we have been engaged across Government to consider additional interventions, so that progress can be made more swiftly.

We also want to make sure that leaseholders can access independent initial advice. We have provided funding to the Leasehold Advisory Service, which provides a free, initial service to affected leaseholders. Its dedicated advice line and outreach helps leaseholders to understand their rights and the terms of their leases. The Leasehold Advisory Service has supported a number of affected leaseholders to understand the terms of their leases and the legal process for challenging a building owner if they attempt to pass costs on.

On the subject of pace, we are working with all relevant parties, including local authorities and building owners, to ensure remediation happens without unnecessary delay. Remediation does take time and it is important to get it right. The time to complete work varies considerably depending on factors such as structure, extent of cladding and existing fire safety systems. For many buildings, this is a complex job involving major construction work. I am aware that the removal of cladding in a number of buildings has revealed other defects and issues that have complicated matters and needed rectification.

Housing

Debate between Kit Malthouse and Kevin Hollinrake

Tuesday 9th April 2019 Commons Chamber

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

It is a pleasure to speak after my Select Committee Chair; we agree on much, although I am not sure about selective licensing, which is too often a licence to print money for some local authorities. It is also a pleasure to speak with the Housing Minister on the Treasury Bench. I feel, from my short time in Parliament, that he has got at least as good a handle on these issues as anyone I have seen.

We need to build more truly affordable housing, both to rent and to buy. We cannot simply do what Labour would do—put more pressure on an overburdened taxpayer. We must do it in different ways. The best way to do it is to cut out the middlemen or middlewomen; I speak as a middleman who has been involved in the property market for 30 years. There are a couple of simple ways we could do that that are simply too good to miss. The Housing Minister is familiar with some of my ideas on this, particularly on delivering more affordable homes to purchase through the section 106 system.

Every year, we deliver around 25,000 affordable homes through section 106 requirements. They are typically sold to housing associations at 50% of market value. The housing association then rents them out at 80% of market value and puts them on their balance sheet at 100% of market value; nice work if you can get it. Why, instead of doing that, do we not simply sell those properties—or half those properties—to first-time buyers on low incomes, at 50% of market value? That would be in perpetuity and those first-time buyers could pass the properties on to the next person. There is no cost to the taxpayer whatsoever. It is good for them. It is good for the developers, who are dealing direct with their customers. The only people who probably will not be too keen on it are the housing associations, but that is not who we are here for; we are here for real people.

[Kit Malthouse]

My hon. Friend has raised this issue with me a number of times. I am keen to promote it with him. Will he meet me to discuss how we might promote it to councils?

[Kevin Hollinrake]

I certainly will.

Oral Answers to Questions

Debate between Kit Malthouse and Kevin Hollinrake

Monday 8th April 2019 Commons Chamber

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

7. What steps his Department is taking to support the building of social housing.

[The Minister for Housing (Kit Malthouse)]

On top of our £9 billion affordable homes programme, we have reintroduced social rent, removed the housing revenue account borrowing cap and announced £2 billion of long-term funding, and we are setting a long-term rent deal for councils and housing associations.

[Kevin Hollinrake]

There is currently a prohibition on the inclusion of residential properties in personal pensions such as self-invested personal pensions, which leaves potential accommodation over shops empty or unconverted. Will my hon. Friend work with his colleagues in the Treasury to reform these rules, provided that the properties are let out at a social rent?

[Kit Malthouse]

No one, but no one, works as hard as my hon. Friend on housing policy. There is not a time when I appear at the Dispatch Box that he does not badger me with some new idea. He obviously takes his moral duty to the next generation to build the housing they need very seriously, and I would be more than happy to walk arm in arm with him down Downing Street to No. 11 to propose exactly that idea.

Permitted Development and Shale Gas Exploration

Debate between Kit Malthouse and Kevin Hollinrake

Thursday 28th March 2019 Commons Chamber

[Kit Malthouse]

I will come to those exact issues, if the esteemed Chair of the Select Committee will give me a moment.

In summer 2018, we consulted on whether permitted development rights should be expanded to include shale gas exploration development, including the circumstances in which this might be appropriate. I would like to make it clear that any potential permitted development right granted for shale gas exploration would not apply to hydraulic-fracturing operations or the production stage of shale gas extraction.

I should also emphasise that any permitted development right would cover only the planning aspects of the development and would not remove requirements under other regulatory regimes from the three regulators: the Environment Agency, the Health and Safety Executive and the Oil and Gas Authority. It is important to note that all permitted development rights contain specific exemptions, conditions and restrictions to control and mitigate the impact of the development and to protect local amenity, and any potential permitted development right for shale gas exploration would be no exception.

A right could include things such as limits on the height of any structure, areas where a permitted development right would not apply and noise and operation controls. The consultation sought views on this.

[Kevin Hollinrake]

Would permitted development rights allow a producer to construct a well pad pretty much wherever they wanted to put it?

[Kit Malthouse]

The consultation asked exactly that question of whether there should be a restriction. I know my hon. Friend suggested—in the last debate and in this one—having density restrictions on well pads in particular areas. We will answer that question when we respond to the consultation.

The permitted development consultation and the NSIP consultation mentioned by my hon. Friend and the shadow Minister ran for 14 weeks and closed on 25 October. The Government are currently analysing the representations to the consultations and will publish a response in due course.

All hon. Members have highlighted the importance of community engagement in the planning process. I reassure the House that we remain profoundly committed to ensuring that local communities are fully involved in the planning decisions that affect them and to making planning decisions faster and fairer. These are long-standing principles that I am adamant we will stick to. However, we understand that communities feel that they are often not consulted closely enough before planning applications are submitted by developers to the local planning authority. That can lead to opposition to developments and a longer application process.

Engagement with communities at the pre-application stage gives local people an earlier say in the planning process and makes developers aware of issues of importance to the community that may need to be resolved. The planning system in the UK already provides an extensive legislative framework for community involvement. However, there is scope to do more. That is why we published a separate consultation—sadly, unmentioned this afternoon —on whether applicants should be required to conduct a pre-application consultation with the local community prior to submitting a planning application for shale gas development, which could further strengthen the role that local people play in the planning process. The consultation closed on 7 January. We are currently analysing the representations that we have received and will publish a response in due course.

We also welcome the Housing, Communities and Local Government Committee’s report of its inquiry on planning guidance relating to hydraulic fracturing and shale exploration. The report was published on 5 July 2018. We are considering its conclusions and recommendations, and will respond—to use a well-utilised word in this House—shortly.

I thank all hon. Members who have participated in this interesting and fascinating debate. Domestic onshore gas production, including shale gas, has the potential to play a major role in further securing our energy supplies. The UK must have safe, secure and affordable supplies of energy with carbon emission levels that are consistent with the carbon budgets defined in the Climate Change Act 2008 and our international obligations. The written ministerial statements on energy and planning policy made by the Secretaries of State for Business, Energy and Industrial Strategy, and for Housing, Communities and Local Government on 17 May 2018 reiterated the Government’s view that there could be substantial benefits from the safe and sustainable exploration and development of our onshore shale gas resources.

We remain expressly committed to ensuring that local communities are fully involved in planning decisions that affect them and to making planning decisions faster and fairer at the same time. We have now delivered on our promise to consult on how best to develop our planning processes for both the exploration and production of shale gas development, while ensuring that communities remain fully involved. We are currently considering the responses from those consultations and will respond in due course.

Oral Answers to Questions

Debate between Kit Malthouse and Kevin Hollinrake

Monday 4th March 2019 Commons Chamber

[Kit Malthouse]

There is obviously a concerted attack taking place against permitted development rights, which I find distressing, given the sheer number of homes that they have produced for people who are desperate for those homes. As I have said, all homes, whether under permitted development rights or normal planning permission, have to comply with building regulations, and it is down to local authorities to ensure that that is the case.

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

Does my hon. Friend agree that we should deliver more affordable homes to purchase in the form of discount market sale, which remain affordable in perpetuity?

[Kit Malthouse]

My hon. Friend is indefatigable and has raised that issue at every opportunity when I have been at the Dispatch Box. He is right that, as part of our affordable homes programme, we would like to see more discount market sales, particularly to younger people across the country. I urge local authorities, which we hope are bringing forward authoritative and forward-looking plans, to embrace that type of tenure.

Tower Blocks: Dangerous Cladding

Debate between Kit Malthouse and Kevin Hollinrake

Tuesday 22nd January 2019 Commons Chamber

[Kit Malthouse]

The hon. Lady is quite right; given the story on the front of the paper, anyone who lived in that block would be worried. We have reassured ourselves that the Greater Manchester fire and rescue service is satisfied that everybody resident in that block is safe tonight, and that there has been sufficient engagement by the owners and managing agents to make sure that the temporary measures that are in place are adequate to keep residents safe.

We understand that there is work under way. I believe that that work has been contracted, but it is yet to be made clear who will pay. We will put pressure on the owners and managers of that building, as we are doing with all owners and managers, to make sure that it is not the leaseholders who pay. At this stage, we are not ruling out any particular measure for making sure that that is the case.

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

The Housing Minister is doing excellent work on the matter, both behind the scenes and out in front. I have spoken to him about it on a number of occasions. Particularly with private sector buildings where there is no obvious freeholder responsible for replacing the cladding, does he consider that central Government should step in and fund the cost of replacement until it can be established who is responsible for it, after which they should reclaim that money?

[Kit Malthouse]

My hon. Friend is quite right, and he points to something that will become an increasingly difficult issue. In a number of cases, the freeholder of a building—essentially, the owner of the building—may well be obscure, overseas, difficult to contact or, indeed, a dormant company. In those circumstances, as the Chair of the Select Committee pointed out, local authorities have the power to enter the premises and do the work. We have offered financial support to make sure that it gets done.

Oral Answers to Questions

Debate between Kit Malthouse and Kevin Hollinrake

Monday 5th November 2018 Commons Chamber

[Kit Malthouse]

I am engaged in an intensive amount of activity on the subject of public land with my ministerial colleagues and those elsewhere. Hon. Members will have seen that we have recently changed the rules so that local authorities can dispose of their own public land at less than market value if they deem there is a social need to do so. Whether or not we can give them first refusal on acquiring that land will depend on their ability to deliver the homes that people need. I am very focused on numbers of homes rather than principles of disposal.

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

Our policies on affordable homes are almost entirely focused on affordable homes to rent. Does my hon. Friend agree that we should also deliver more affordable homes to purchase?

[Kit Malthouse]

My hon. Friend is one of the most innovative thinkers in housing policy generally, certainly on the Conservative Benches—not that there is much innovation on the Labour Benches, but there we are. He points to an area where there is strong demand. Very large numbers of people who would otherwise be tenants have a strong desire to own, and we would love to see them owning on a discounted basis. Hon. Members will have seen in the Budget the announcement of funding for neighbourhood plans to enable an allocation of discounted homes for sale, particularly in rural areas, and I would be keen to explore the idea further with my hon. Friend.

Finance (No. 2) Bill

Debate between Kit Malthouse and Kevin Hollinrake

2nd reading: House of Commons
Monday 11th December 2017 Commons Chamber

[Kit Malthouse]

There is no doubt that stamp duty, as a frictional cost, causes all sorts of problems and distortions in the property market, and one may be at the lower end, particularly when dealing with an asset class that is highly geared—where taxation effectively has to be paid out of equity or deposit. That is operating throughout the property system. We are seeing a slowdown in the number of transactions, largely because of the frictional cost of exchange. That mechanism operates in any capital market. I may be out on a limb, and I am not the Chancellor of the Exchequer, trying to collect money to pay for everything else, but a general loosening of the stamp duty regime, and therefore more transactions in the property market, is more likely to mean that more people can access it at all levels.

[Kevin Hollinrake]

Employee shared ownership is something that I did with my business—I draw attention to my entry on the register—but my hon. Friend is right: there are no incentives to do that, other than trying to build loyalty in the workforce. We were advised against it by our tax advisers on the grounds of complexity and cost. We went ahead with it anyway, but putting incentives in place would increase the number of companies that consider taking that important route.

[Kit Malthouse]

My hon. Friend makes a strong point. How can it be that an enlightened farmer is deterred by the tax system from spreading to his employees the wealth that his company creates? Something is fundamentally wrong if that deterrent is created.

I know that the Minister can see the truth of my argument and will want to address it in a future Finance Bill. I am sure, given his performance thus far, that his tenure in the job will be a long one—so much to the good, for us and for the economy.

I have one small note of caution about clauses 46 and 47. They would give Her Majesty’s Revenue and Customs the power to enter premises and break into vehicles or vessels without a warrant. I stand to be corrected, but as I read them, they would grant more powers to the taxman than the police have to pursue crime. That makes me a little nervous.

Over the last few years, we have seen a general trend towards a new style of legislation and law on the powers of the Revenue. We have seen legislation that allows the taxman to help themselves to money in someone’s bank account without judicial oversight. We have seen the extension of retrospection, and we have seen a reversal of the burden of proof—not “You’re innocent until proven guilty”, but “We think that you need to prove that you are innocent”, in certain circumstances. While I understand that the powers are merely an extension of the old excise men’s powers to deal with smugglers in ports and airports—Daphne du Maurier fans who have read “Jamaica Inn” will know of the problems in the 18th and 19th century—I question whether such powers are appropriate today. I hope that Ministers will think carefully about whether it might be more appropriate for a warrant to be obtained to access someone’s premises, in the same way that the police do when they have suspicions.

I understand that the imperative for the Government is to deal with criminality that is often clever and smart. Sometimes such powers are contemplated because we cannot think of any other way, but unless we maintain the rule of law, especially on taxation, and unless we have a sensible, level playing field, the relationship between business, individuals and the Revenue becomes much more antagonistic. That would be an unfortunate development.

All in all, the Bill is solid and welcome. Those who are perhaps a bit more radical might like the Government to go a bit further in the next two or three years, in particular on the idea of dynamic capital and spreading share ownership, but the Minister is to be congratulated on his conduct. I look forward to Report.