Social Housing and Building Safety

Lisa Nandy Excerpts

Thursday 9th June 2022 Commons Chamber

[Lisa Nandy (Wigan) (Lab)]

On 14 June 2017, every single person in this country watched in horror as a blaze in London became, within hours, one of the worst disasters of modern times. Some 72 people lost their lives that day and dozens more were injured. Among them, as the Secretary of State has said, were young children, GCSE students, retired couples and entire families. As the family of 78-year-old Ligaya Moore poignantly put it, it was a tragedy that turned “laughter into silence”.

I join the Secretary of State in welcoming some of those families to the Chamber today. It always feels uncomfortable, at moments such as this when we stand here and speak, that their voices are not heard and ours are, but I have heard from many of the families affected by this appalling tragedy over the past few years that what they want most is to hear from us the action we will take to honour those lives and build a fitting legacy. I am determined that we will work with the Secretary of State and with all political parties across this House in order to turn that commitment that we have all respectively made into reality.

There has rightly been much soul-searching about how such a tragedy was possible in modern Britain. The public inquiry is still under way and must be allowed to do its work without political interference. However, that must never be allowed to become an excuse for delay or for justice denied, because this was not the first fire in a block with similar cladding. The Government were aware of problems as early as 1986, well before a block of flats in Merseyside caught alight in 1991. That fire, at Knowsley Heights, was followed by similar fires spanning three decades, from Irvine in Scotland to Southwark in south London, where six people lost their lives. In those intervening decades, the alarm was raised many times. One parliamentary inquiry led by the former Member for Southend West, David Amess, who is much missed in all parts of this House, warned that it should not

“take a serious fire in which many people are killed before all reasonable steps are taken towards minimising the risks.”

This series of failures spanned all political parties and successive Governments over many decades. We should have heard that and we should have acted. I therefore join the Secretary of State in saying, on behalf of my party, that we are sorry that we did not hear it and sorry that we did not act sooner.

But how did those warnings go unheeded by so many for so long? The Government’s lawyer told the official Grenfell inquiry that

“within the construction industry there was a race to the bottom, with profits being prioritised over safety.”

It makes me angry to hear that that can be admitted with such candour now but nothing was done before. I share the Secretary of State’s passion to go after those who recklessly disregarded people’s lives and put their profits and their own interests before safety. If they broke the law, acted recklessly or acted immorally, then I will join him in going to the ends of the earth to make sure that they pay a heavy price for doing so.

We have to ask ourselves, too, standing here in the centre of power: who permitted that to happen? Over 30 years and five different Governments—Labour, coalition and Conservative—how did it come to pass that profits were allowed to matter more than people. How could the concerns and lives of people in the centre of one of the wealthiest boroughs in the wealthiest city in one of the wealthiest countries in the world be ignored—effectively rendered invisible by decision makers only a few short miles away? The appalling tragedy suffered by the people of Grenfell is undeniable evidence of the unequal society that we live in, where lives are allowed to be weighed against profit on a balance sheet and come out the worst, and where those who lack money also lack power. When I talk to social housing tenants up and down the country, this what I hear so often—that they are not seen or heard by decision makers, and that when they raise their concerns and bang on the doors of the corridors of power, those concerns still go unheeded. One social housing tenant said to me: “We simply do not count.” This has to be the day when we stand up together and say, “This ends now.”

There are 4 million families in rented social housing in England. Every single one of them deserves a decent, safe home, and, more than that, the power to drive and shape the decisions that affect their own lives. We should be scandalised that so many homes are not up to a fit standard, not just on fire safety but in being cold, damp and in a state of disrepair that shames us all in modern Britain: homes with black mould and water running down the walls; homes that are unsafe; homes that are damp and overcrowded. I recently heard from a teacher about a child who was coming to school covered in rat bites. The school is using its pupil premium to send people round to make sure that these children are clothed, fed and protected from rats. What have we come to in Britain in the 21st century? It is an absolute disgrace.

The Secretary of State is right that we should take a zero tolerance approach to social landlords who do not live up their obligations—who do not do everything within their power to make sure that those issues are dealt with. But I also gently say to him, in a constructive tone, given the gravity of what we are dealing with today, that the Government have to do their bit as well. That means reversing some of the cuts that have been made to councils and housing associations in recent years which mean that repair budgets are virtually non-existent in many parts of the country, and that good people have been lost and expertise has gone.

We welcome the decision to publish a social housing reform Bill to try to tackle some of these issues, although we are concerned that it has not materialised in advance of this debate. We were led to believe that we would have that Bill before we stood up to speak today. If there are problems within Government—if there are wranglings taking place behind closed doors—my offer to the Secretary of State is this: we will work with him and support him in whatever battles he has to make sure that this Bill sees the light of day, and quickly. That also goes for the renters reform Bill, which must, as my hon. Friend the Member for Brentford and Isleworth (Ruth Cadbury) said, deal with the appalling standards in many private rented homes up and down this country. Some of that, I have to say to the Secretary of State, has been caused by Government policies such as the bedroom tax, which forced many people out of the secure social home that they had lived in for many years, close to friends, family and children’s schools, and into private, rented, often overcrowded and substandard accommodation that, absurdly, cost the public more than it did to house them in their own home.

We welcome some of the measures that the Secretary of State has proposed, particularly the promise to beef up the role of the regulator. This is a welcome step forward giving it the power to inspect, to order emergency repairs, to issue limitless fines, and to intervene in badly managed organisations. But we have to do more to tilt the balance of power back towards tenants to give them not just a voice but real power to shape and drive the decisions that affect their lives, their homes, their families and their communities. The measures on tenant satisfaction and a residents’ panel that meets Ministers three times a year are welcome, but well short of a dedicated tenants’ organisation that is put on a statutory footing and exists to be a voice to champion their interests. Such a body existed under the last Labour Government but was scrapped by the Secretary of State’s Government in 2010. I ask him please not to close his mind to perhaps revisiting previous methods that worked. Let us work together with tenants to get this right once and for all.

[Mr Betts]

My hon. Friend is absolutely right about the body—the Tenant Services Authority—that used to exist and was in place to do that. Let me return to the point that I made to the Secretary of State in an intervention: this is about resources. Councils and housing associations are short of resources. They cannot bring their homes up to a proper standard—the new decent homes standard—build new homes, and do all the necessary building safety and other works with the money they have. Will my hon. Friend join me in pressing the Secretary of State—hopefully he is listening, as he said he was—to make sure that social housing landlords have the same access to funds to deal with safety works that are now, quite rightly, available to the private sector?

[Lisa Nandy]

My hon. Friend is absolutely right. I would add to the many challenges currently facing councils and housing associations the challenge of decarbonisation and the goal of net zero. These things are keeping well-meaning, good people who work in our councils and housing associations awake at night trying to work out how they are going to square the circle, and they deserve more support from their Government.

Nor is it acceptable that the measures are silent on how many new social housing properties will be built. We have a chronic shortage of affordable rented homes, with some of the challenges that my hon. Friend outlined. It is really concerning that today the Prime Minister said that the big idea to solve this is to allow people to use benefits to get a mortgage—not because we disagree with the principle of extending home ownership much more widely to those who want to grasp it, but because he seems to have forgotten to talk to the lenders. The Secretary of State will know that this has been the problem with previous announcements that have aimed in similar ways to help people to get mortgages. If mortgage lenders are not on board, they simply will not do it. The Prime Minister may not have reached out to mortgage lenders, but I am sure the Secretary of State will. When he does, will he talk to them about the very real difficulties of people on universal credit—all of whom, by definition, have savings of less than £16,000, with most having very little in savings, if anything at all—and about how they get a mortgage without any kind of deposit, and whether that is indeed viable? The Prime Minister appears to have forgotten to talk to mortgage lenders; I think it is possible that he also forgot to talk to the Secretary of State before he made the announcement. I do not envy the Secretary of State the task of trying to sort this out, but I am sure that he will go at it with his characteristic tenacity, and I wish him well in the endeavour.

I also wish the right hon. Gentleman well in realising the ambition he set out today: that when the Government extend the right to buy on a voluntary basis to housing association tenants, they will ensure that the homes are replaced, like for like and one for one. I was pleased to hear him say that he had secured that commitment, because Government figures suggest that while just over 2,500 council homes were built in 2010, over 11,000 were sold off under the right to buy; and, as he knows, in the Government pilots of the extended scheme, only half of the homes were replaced and the replacements were more expensive and inferior in standard to the ones that were sold. So how is the Secretary of State able to give this commitment today? What is the estimate of the cost of doing that, and where will the money be found? He knows better than anyone how squeezed his existing budget is. Given that full replacement of right-to-buy homes has never been achieved, how does he intend to pull that off this time? Surely, with 1 million people stuck on social housing waiting lists and a shortage of 1.5 million homes, he is not going to pursue measures that make the situation worse for most families?

[Mr Betts]

There are two important questions here. First, will participation by housing associations be voluntary? They are independent organisations, not part of the public sector. Secondly, replacing one for one, like for like, a family home for a family home, is not just about the Treasury making up the discount. Talk to housing associations: the cost of building a replacement is often greater than the market value of the home sold. There is another gap, which the Government have to fill.

[Lisa Nandy]

I think my hon. Friend, the Chair of the Select Committee, is making the Secretary of State’s day. We can add that to the very long list of problems. I think his question was more for the Secretary of State than for me, and I am sure he will ensure that it is addressed in the winding-up speeches, but I add my voice to his in saying that one of the reasons we were very concerned about the scheme is that it reaches only a very small number at a very high price.

We have a housing crisis in Britain and, as the Secretary of State knows, it manifests in a multitude of ways—in people who have been mis-sold leasehold properties, people who face soaring rents and are crippled by housing costs and the cost of living, and people in totally unsuitable exempt accommodation. Those loopholes have still not been closed while people continue to milk the system and claim housing benefit while allowing communities to fall into rack and ruin.

As the Secretary of State acknowledged, five full years after the Grenfell tragedy thousands of people remain stranded in homes covered in similar cladding, facing ruinous costs because of a scandal that was not of their making. The right hon. Gentleman is right that developers, not leaseholders, should pay. He has pushed that further than any of his predecessors and he has my full support in doing so. As long as he continues down that road, we will support him in the fight. However, I understand that so far 45 homebuilders have paid £2 billion to fix fire-related safety defects, which is roughly half of what he told the House would be needed. Where will the other £2 billion come from? What assurances and guarantees does he have that the developers who have agreed to pay cannot backtrack on any of the agreements?

The Government’s plans are missing several elements that need to be addressed and added to existing measures in the Building Safety Act 2022. The Secretary of State will be aware of those. There is still far too little support for the significant number of leaseholders who face huge bills to fix non-cladding defects.

[Hilary Benn]

My hon. Friend is making a powerful speech. On the point she just addressed, there are leaseholders living in buildings who have looked to what the Secretary of State says about wanting to make those responsible pay but who still do not know who was involved. Often there is a network of companies; some may have disappeared or taken new names but still have the same directors and so on. Would it not be helpful if the Government were to write to the leaseholders in all those buildings setting out what information they currently have about the willingness of those involved in the construction of the building to cough up for the unsafe flats they constructed?

[Lisa Nandy]

My right hon. Friend makes an extremely good suggestion, which I hope the Government will take up. It is not just the huge costs that are causing such damage to people; it is the uncertainty and anxiety that they have to live with every single day. Anything the Government can do to alleviate that anxiety—to send a signal to the leaseholders who are now trapped in their homes that they are not on their own—would be extremely welcome.

Will the Secretary of State look specifically at those who are seeking to sell or remortgage their properties? For such people, this wait is agonising and unbearable; their lives are on hold and they simply cannot move on. I have to say to him that it is quite wrong of the Government to rule out retrospective help for those who have already paid. Many people felt pressured or bullied into paying these enormous bills, yet no help is coming for them. That is not justice. Nor is there help for the countless leaseholders who are mired in mortgage chaos. Government funding so far is available for buildings over 11 metres, but shorter buildings may contain more vulnerable residents, be coated in more cladding and have more serious fire safety issues. What more does the Secretary of State plan to do to ensure that priority funding is allocated according to risk?

At the current pace, it will take until 2026 to remove cladding on all social housing blocks, and until 2024 for private blocks. When does the Secretary of State expect remediation of all dangerous buildings to have been completed? Can he give us some reassurance on that?

It would be wrong of me to stand here and say that the problems facing leaseholders began and end with Grenfell. A group of local residents who have been caught up in this scandal came to see me and told me a familiar story. They have been hit with huge charges, but when they challenged the charges with their management company, they did not even get a response. They have written again and again and have been completely and utterly ignored. It is totally unacceptable, and it is not new.

The hon. Member for Worthing West (Sir Peter Bottomley) is not in his place right now, but he has fought this battle for years, as I well remember. Many years ago, in 2001, I worked for the then Member of Parliament for Walthamstow as the Commonhold and Leasehold Reform Bill—later the 2002 Act—was going through this place. These debates were happening here in this place at that time, a full decade before I was elected to Parliament. They were happening when I was working for Centrepoint, the fantastic organisation to which Members have paid tribute today. Parliament was debating how too many people were being ignored and overlooked, and these arcane and archaic, feudal models of tenure were still being defended by some, even though they had clearly and completely outlived their usefulness.

Almost every country in the world apart from Britain has either reformed or abolished this archaic, feudal model. I believe there is now cross-party consensus on the need to do something about it. I was pleased to hear the Secretary of State acknowledge that we are right to say that we must have legislation to deal with this, but I say gently to him: where is it? He says legislation will be forthcoming in this parliamentary Session, but it was not in the Queen’s Speech. There are five Bills from the Department for Levelling Up, Housing and Communities in the Queen’s Speech; surely time can be found to ensure that we deal with this problem once and for all.

We need new legislation to end the sale of new private leasehold houses, effective immediately after Royal Assent is given; new legislation to replace private leasehold flats with commonhold; and new powers for residents over the management of their own homes, with rights for flat owners to form residents’ associations and simplification of the right to manage. Why do the Government not hand leaseholders the right to extend the lease to 990 years with zero ground rent at any time or to cap ground rents when extending a lease to 0.1% of the freehold value up to a maximum of £250 a year? The Levelling Up, Housing and Communities Committee, which my hon. Friend the Member for Sheffield South East (Mr Betts) chairs, has done incredible work on that. The proposals are there and ready to go.

Where are the Law Commission’s proposals to reform the process of enfranchisement valuation for leaseholders, including on marriage value and prescribing rates for the calculations of the premium? Surely, in the midst of a cost of living crisis, it is a no-brainer to crack down on unfair fees and contract terms by publishing a reference list of reasonable charges, by requiring transparency on service charges, and by giving leaseholders the right to challenge rip-off fees and conditions or poor performance from service companies.

I started by saying that a group of people were rendered invisible to decision makers only a few miles away, which is completely unacceptable in modern Britain. How can we accept that these rip-off companies, on behalf of owners who we often do not know and do not have the right to find out about, are allowed to tell people whether they can change the doorbell on their own home or make minor changes that would make a big difference to their lives? How on earth is it right that we are siding with those rip-off management companies and opaque owners over people who live in their own homes, have a stake in this country and their communities, and deserve the right to something better?

If the Secretary of State can secure time for the second part of the leasehold reform Bill that was promised, we could end these arcane rules and give power and a voice back to people in their own homes and communities. Was levelling up not intended to answer that clamour for more control and agency, and give people who have a stake in the outcome a greater ability to make decisions about their own lives? That is the legacy that we should seek to build in honour of those who lost their lives in Grenfell: everybody everywhere in the UK, regardless of the type of tenure that they happen to end up with, has the right to a decent, secure, safe home—full stop. We will make sure that that is delivered.

The Grenfell community has steadfastly campaigned not just for justice but for change, and it is humbling to welcome some of the relatives to the Gallery. I share the Secretary of State’s view that that has come too slowly and that their long fight for justice has for too long been paved with broken promises. Those lives mattered, and if we believe and mean what we say when we honour them, we must build a better system in the wake of that appalling tragedy. His Department has five Bills in the Queen’s Speech, which is five chances for us to get it right. We will move heaven and earth to help him do that, but let us not waste them.

--- Later in debate ---

[Eddie Hughes]

The Government have committed to £62 million of funding for the installation of fire alarms with regard to waking watch. I think it would be best if we exchange correspondence; would my hon. Friend be good enough to write to me? I fully accept that it is not the Government’s job to intervene, but it is certainly our job to consider and assist.

I can also reassure hon. Members and ministerial colleagues that we have not shied away from calling in developers, alongside local authorities, to discuss individual cases and ensure that remediation works begin without delay.

I just wanted to consider some of the points that have been raised today. The hon. member for Wigan (Lisa Nandy) suggested that the voices of tenants had not been heard. This is one of the things that emerged most starkly out of the Grenfell inquiry for me—that a number of problems were raised time and again and yet seemed to be ignored. We have heard contributions from Members across the Chamber who have reflected similar circumstances. The expression I have been using is that we are turning up the volume on the tenants’ voice. We are making sure that they will be heard in a number of ways.

I fully appreciate the comments that have been made with regard to our putting our resident panel on a statutory footing. We can talk about that and see ways collectively, across the House, to improve the Government’s legislation in the future, but we have advertised that panel and over 1,000 people have applied. We are currently assessing them to make sure that the 250 people we identify give a broad demographic and geographical representation to make sure that they have a direct line to speak to Ministers. We have a commitment to reduce the number of non-decent properties by 50% by 2030, and we are working on that commitment across both the social and private rented sectors. Our private rented sector Bill will address that.

I am delighted that the hon. Member for Wigan welcomes the powers we are giving to the regulator to make sure it has the teeth to act. I commend the work of the housing ombudsman, whose paper on damp and mould is so important in ensuring that social housing providers do not start from the premise that problems with damp are caused by how the property is occupied. That is a dreadful position to take, and providers should consider each case on its merits.

[Lisa Nandy]

May I press the Minister on the point raised by my hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook) about the regulator potentially keeping the proceeds of any fines so that it can continue funding the work and to ensure that the service is not too limited for the scale of the need?

[Eddie Hughes]

The best commitment I can make is that the regulator will be properly funded to discharge its duties. We can discuss what mechanism will be used to arrive at that position, but we are determined to make sure it has the staff and resources to deal with the problems it faces.

There has been considerable discussion of the voluntary right to buy. I insert the word “voluntary” because I understand that is how it would have to operate given that the Government do not own or control the housing associations. I fully appreciate some of the points that have been raised, but the pilot was in the west midlands and I have spoken to a number of my constituents who took the opportunity to buy their property. Home ownership is a significant aspiration for people across the country, and we should not shy away from the idea of considering any and all mechanisms to make it work.