Covid-19: Housing Market

Lindsay Hoyle Excerpts

Wednesday 13th May 2020 Commons Chamber

[Mr Speaker]

I call the Secretary of State for Housing, Communities and Local Government, who should speak for no more than 10 minutes.

[The Secretary of State for Housing, Communities and Local Government (Robert Jenrick)]

Moving home can be a life-changing moment for many among us. For young families spreading their wings after a new arrival, for young people leaving their parents’ home for the first time, or for working people changing towns or cities to start a new job, moving home means planting your roots; laying your foundations. A home is more than four walls and a roof—it is a sanctuary, a form of protection, and a link to your community.

We know that people’s homes are at the heart of their own personal stories, and throughout the course of this emergency, we have, by necessity, put many of those stories on hold, to protect our communities and to save lives. When the essential “Stay at home” message was announced, we changed the rules so that people could move home only if they thought it was “reasonably necessary”. For many people, this has put life on hold, with this most relevant and essential industry in a state of suspended animation. Over 450,000 sales have been stuck in the system, unable to be progressed—not to mention the substantial number of rentals that have not gone ahead. Every month, 300,000 tenancies come up for renewal, a proportion of which result in people moving home. The pressure to move has, for some, become acute, with profound legal, financial and health implications.

We made that decision in order to keep the country safe, but as we move into the next phase of our covid response and embark on our path to reopen, restart and renew the economy, we recognise the need to let people get back to living their lives. That is why today I am announcing a comprehensive, clear, and coherent plan to reopen the housing market and to restart the construction industry. With immediate effect, we are lifting the temporary freeze on home-moving, meaning that, as long as they are not shielding or self-isolating, anyone can move, any time and for any reason.

The industry is broad, and has many moving parts, so we want to be clear: each of the building blocks of the buying and selling process are now back in business, as long as it can be done safely. Here, then, is our plan for the reopening, restarting, and renewing of the housing market and the construction industry: estate agent offices can now reopen, removal companies can get moving again, surveyors, conveyancers and valuers can go back to work, and show homes on sites can reopen.

It is crucial that these changes happen safely and that we continue to tread with caution, to control the virus and to protect the public. This means that as these businesses reopen they will need to adapt their practices—for instance, with virtual viewings where possible and cleaning thoroughly after viewings and when moving. I have published detailed guidance, informed by public health advice, to explain how this can be achieved, building on the existing safer working guidance, with all parties observing hygiene measures and social distancing guidelines.

For each of the other elements that make up the wider construction industry—a sector that employs more than 2 million people—the same applies. If people are self-isolating or have coronavirus, they should of course not be moving or going back to work. All parties involved in home buying and selling should prioritise agreeing amicable arrangements to change move dates for individuals in this group.

This is the most radical restarting of an industry in the first phase of our national recovery road map. It was not an easy decision to make. With few, if any, transactions, there is no visibility and no precedent with which to accurately judge the state of the housing market, but I do know that in every economic recovery in modern British history the housing market has been key, so let me be clear to all who work in the sector, have started a business in it, have invested in it, or rely upon it: I am doing everything I can to help the industry bounce back.

A healthy housing market means more than buying and selling houses; it requires building them too, but covid-19 has had a profound impact on housebuilding, with activity on sites down by around 90% since this time last year. I am delighted to see so many construction companies back at work already, and I am pleased to be supporting their efforts by today announcing the launch of a safe working charter with the Home Builders Federation. Those working on site should feel confident that their essential jobs are also safe jobs.

I am taking further steps to support safe housebuilding by allowing more flexible working hours on construction sites, where appropriate and with local checks and balances. I am allowing sites to apply to extend their working hours, again with immediate effect. Varied start and finish times will make it easier for sites to observe social distancing, will take pressure off public transport, particularly in our core cities, and will keep Britain building.

The planning system, too, must be able to operate safely and efficiently during this time, which means, as with many other sectors, making more use of digital technology. I want the Planning Inspectorate to be at the forefront of this work—it is good to see the inspectorate now undertaking its first virtual hearings. I am asking it to make all hearings virtual within weeks. We are going to get the planning system going again and bring it into the digital age at the same time.

As we look to the future, we must remember that the prospects of Britain’s housing market is key to our economy: when this sector succeeds, we all succeed. This is what shapes our vision for the housing market: more homes, safer homes, homes of higher quality, more beautiful homes, homes of all types and tenures, for all people, rooted in and at the heart of their communities. Today, we reopen, restart and we renew the housing market and the construction industry to protect lives, save jobs and refresh and renew our economy.

[Mr Speaker]

I welcome Thangam Debbonaire to her new job. She has up to five minutes.

[Thangam Debbonaire (Bristol West) (Lab) [V]]

Thank you Mr Speaker, and I thank the Secretary of State for an advance copy of his statement.

The Government said that they would do “whatever it takes” to get the country through the covid crisis and protect the most vulnerable. The Opposition want the Government to succeed. Lives, livelihoods and homes are on the line. In a spirit of constructive co-operation, we have scrutinised plans carefully and offered suggestions and challenges when appropriate, to try to help to bring down infections and the numbers of people who are infected or who are tragically dying, and to help people manage financially. Sometimes the Government have heeded our calls, sometimes not. I would like them to consider these.

Today’s announcement provides welcome news for some—and of course we all want new homes to be built —but it leaves more unanswered housing questions, which urgently need Government attention to keep people safe at work and at home, as we do not have community testing, a cure or a vaccine and there are still problems with personal protective equipment. What protection will there be for people who rent, if a landlord or an estate agent wants to show a prospective buyer or new tenant around? What will the Government do to help those trapped by the cladding and leasehold scandals at this time? What discussions have the Government had with the trade unions? There was no mention of that in the statement. What advice do the Government have for anyone who feels that their workplace or construction site is not safe?

This crisis has taught us that if anyone is struggling, we are all affected. The announcement focused on those who want to move home, but it ignored those who are at risk of being forced to do so. The Secretary of State talked about show homes, but not about people with no home. We have shown that when we work together we can virtually eliminate street homelessness in days. There must be no going back, but people in emergency accommodation face that. Will the Government work with councils and homelessness organisations on the issue of how to provide and pay for a “housing first” approach, so that we can end street homelessness for good this year?

The Secretary of State said that he knew that homes were sanctuaries, but there is no plan for what happens when the temporary ban on evictions ends. We need to prevent people from falling into arrears, so will the Government heed Labour’s calls to fill gaps in the financial support schemes? Will he guarantee that the local housing allowance will stay at 30% of market rent? Will he consider raising it further until the crisis eases?

People who are struggling with their rent are worried about what will happen when the ban lifts. The Government say that they are

“working with the Master of the Rolls to widen the existing ‘pre-action protocol’ on possession proceedings for Social Landlords, to include private renters and to strengthen its remit”.

That is not enough, so will the Secretary of State consider Labour’s proposal to halt section 8 evictions on the grounds of arrears caused by the lockdown?

In March, Ministers said that they would provide

“whatever funding is needed for councils to get through this and come out the other side”.

That pledge has been repeated by the Secretary of State. This week, however, he told the Housing, Communities and Local Government Committee that councils should not

“labour under a false impression”

that all costs would be reimbursed. Which is it? Will the Secretary of State honour his original commitment to councils?

The Under-Secretary of State for Housing, Communities and Local Government, the hon. Member for Thornbury and Yate (Luke Hall), appeared to require local authorities to provide accommodation for people with no recourse to public funds but without funding, leading to confusion and people being left out. Will the Secretary of State ensure that there is specific funding for housing people with no recourse to public funds?

Councils cannot borrow for revenue spending or run deficits. If they cannot balance the books they have to stop spending. They are currently £10 billion short—a fifth of council spending. They could close every library, leisure centre and children’s centre, turn off all the streetlights, and lock the gates to parks, and they would still be billions of pounds short. They would have to make cuts to social care and public health at this time. Will the Secretary of State ensure that councils are fully recompensed for housing and other costs in this crisis?

Finally, during the crisis we have all become aware of people in overcrowded, unsafe homes, who are unable to self-isolate and worried about the rent. We know how bad it is for mental and physical health when families have no outside space. The Secretary of State says that he wants “more homes, safer homes, and higher quality, more beautiful homes”, but he does not say how he will ensure that they are higher quality, or safe, or beautiful. He could have decided to invest in high-quality, safe, beautiful, socially owned, zero-carbon, truly affordable housing. That would capture the national spirit and turn it into building our future.

Instead, the Government have focused on private house sales and even today asked councils to allow developers to defer section 106, the community infra- structure levy, which is likely to reduce the numbers of new social and affordable homes. Will the Secretary of State please work with the Treasury, housing associations, local authorities and the building industry to invest in high-quality, truly affordable social housing?

Our broken housing system has been brutally exposed. Key workers we applaud each week live in poor housing. They have been left behind too long. We must not go back to business as usual. We must solve the housing crisis for all our heroes and for our country.

[Robert Jenrick]

I welcome the hon. Lady to her new role and look forward to working with her constructively in the weeks and months ahead. I am pleased that she supports the overwhelming direction of our statement today, and recognises the importance of the housing industry and construction in this country. She asked a number of questions and I will endeavour to answer as many as I can.

On the important question about building safety, I have been clear from the onset of the crisis that that work should continue. That was, in fact, opposed by many on the Opposition Benches, who said it was too risky, but it was the right decision to encourage ACM cladding and other essential building safety works to continue. I am pleased to say that it is now gradually starting to begin again. I welcome Mayors such as the Mayor of London, the Mayor of Greater Manchester and the Mayor of Birmingham coming together to support that in our combined pledge.

On rough sleeping, I pay tribute to everybody who has been involved in the tremendous national effort so far, bringing 90% of the people sleeping rough on our streets at the onset of the crisis into safer accommodation. Now, we are in the next phase of that challenge. I do not underestimate how difficult that will be, protecting those individuals while they remain in that accommodation during the lockdown and then preparing for them to move into more suitable long-term arrangements with the wraparound care that they need and deserve. That will be a true national effort involving charities, councils and businesses across the country.

With respect to renters, today’s announcement is very much about renters. Every month, 300,000 tenancies come up for renewal. Many of those individuals need or want to move house. Today will enable them to do just that and to do it safely, which is the most important consideration.

On the guidance I have published today, it sets out that physical viewings of homes, whether for sale or for rent, can go ahead, but those will need to be done in accordance with social distancing guidelines. In most cases, that will mean that the tenant or the homeowner will not be present in the property. They will be in the garden or will have gone out for their daily exercise. If they are in the home for whatever reason, they will be in a different room and ensuring that they are 2 metres apart from the individuals who are looking around the property. That is the right thing to do.

On the concern about people being evicted from their properties, as the hon. Lady knows we have changed the law to have a moratorium on evictions, so that no possession proceeding can continue. That will go up until June, at which point I, as Secretary of State, have the ability to extend that if we need to. We will be taking that decision very carefully. We will also be proceeding with the pre-action protocol, working with the Master of the Rolls to ensure that that provides an added degree of protection for those individuals. I do not support the Labour proposal, which is to encourage people not to pay rent and to build up potentially unmanageable degrees of debt, so that in six, nine or 12 months’ time, their credit rating would be shredded and they would be in a very difficult financial position. We are developing a much more credible plan to protect renters and to help to shield them through this crisis.

Finally, with respect to councils’ finances, I said we would stand behind councils and give them the funding that they need, and we are doing exactly that. Today, the Prime Minister has announced an extra £600 million, bringing the total investment in our councils to £3.8 billion in just two months.

[Mr Speaker]

We now go over to the Father of the House, Sir Peter Bottomley.

[Sir Peter Bottomley (Worthing West) (Con) [V]]

The Secretary of State is right to talk about people living their lives. Most of the people going to new homes will be going to leasehold ones.

When will he, and we, act to ban the sale of leasehold and pre-sold houses? When can he announce actions for justice for leaseholders and lease renters who are stuck with excessive ground rents?

Can he advise residential landlords and smart developers that the financial games are over, and that the leasehold knowledge campaign and the all-party group on leasehold and commonhold reform are going to make sure that there is justice for leaseholders?

--- Later in debate ---

[Robert Jenrick]

I am grateful to my hon. Friend for that question. I am sure that thousands of people in Stafford, and across the country, will have been in a state of limbo and unable to move home. This announcement today will make a big difference to their lives and to the local economy in Staffordshire. With respect to the guidelines, they are clear, as I have already said, that people need to respect social distancing when in others’ properties. We are encouraging virtual viewings, which can be more sophisticated and may come at a cost, or can be as simple as the agent or homeowner producing a video on their smartphone and making it available to anyone interested in the property before they visit. With respect to show homes, we are strongly encouraging people to attend by appointment only to avoid unnecessary speculative visits.

[Mr Speaker]

We now go over to Sheffield to the Chair of the Housing, Communities and Local Government Committee.

[Mr Clive Betts (Sheffield South East) (Lab) [V]]

I welcome much of what the Government have proposed, particularly the help for private tenants. However, we should recognise that many tenants’ rent arrears will grow over time, causing problems not merely for them, but for small private landlords. Will the Secretary of State consider a scheme like the Spanish Government’s, which offers low-interest loans to tenants to help them to pay the rent and the landlords to receive it? As for the market for new housing, if demand for new homes falls, will he consider increasing grants to housing associations and councils so that they can help the construction industry keep going by building more social homes for rent?

--- Later in debate ---

[Robert Jenrick]

My hon. Friend and I have discussed this issue at length on a number of occasions, and he has been assiduous in campaigning to break this deadlock. It is extremely unfortunate that before the coronavirus crisis house building in the Solent area was essentially paused because of the issue he described. I have been working with the Department for Environment, Food and Rural Affairs and Natural England to bring forward guidelines and to bring the parties together, because too many people’s livelihoods depend on this and we need to move forward. I hope that those guidelines are now available and will ensure that we continue to work with his local council and others to get the industry moving in the Solent area.

[Mr Speaker]

That’s all for now, folks. I will suspend the House for 15 minutes, until 1.53 pm.