(4 years, 1 month ago)
Lords ChamberI commend the right reverend Prelate the Bishop of Guildford on his excellent and thoughtful speech.
I am very disappointed that the proposed renters reform Bill and the second stage of leasehold reform were not directly mentioned in the gracious Speech. In saying this, I declare an interest as a long-standing leaseholder and landlord. As the Minister said earlier in the debate, a renters reform Bill will nevertheless be brought forward in the current parliamentary Session, although the second stage of leasehold reform will seemingly not, despite talk of it being dealt with in the next parliamentary Session.
I hope that the leasehold reform Bill will not be kicked into the long grass and effectively dropped. I ask Her Majesty’s Government to think again and bring forward the second stage of leasehold reform in this Session as a matter of urgency. I request that the Minister clarifies the situation and treats these issues with the importance that they deserve. I commend Her Majesty’s Government and the Minister, the noble Lord, Lord Greenhalgh, on passing the ground rent Act in the last Session.
On the proposed renters reform Bill, I support the abolition of no-fault evictions by removing Section 21 of the Housing Act 1988, which has often been seen as unfair and contributes to tenants’ insecurity of tenure. However, I add three provisos. First, landlords should always be able to seek possession in the case of rent arrears. Most landlords own only one or two properties and are not Rachman-style slum landlords. They rely on rental income to pay the mortgage—if they have one—maintenance costs and service charges, and often to supplement increasingly inadequate state pensions. Secondly, many landlords are accidental landlords, or landlords for just a period of their lives. If they personally need to reoccupy their homes, they should be able to do so. The noble Lord, Lord Carrington, referred to some of these issues. Thirdly, fair rent reviews must be built into the system. Costs go up for landlords as well as tenants, and rents should at least be able to rise over time in line with the consumer price index or another appropriate measure.
It is regrettable that, in addition to a database for rogue landlords and property agents, Her Majesty’s Government are not legislating to regulate property management agents. Estate agents are legally regulated, so I see no reason why equally important property management agents are not. The 2019 recommendations of the Regulation of Property Agents working group have been ignored. Property management agents tend to fall into three categories: those managed by right to manage companies that are professional and competent; those managed by RTM companies that are wholly unprofessional and incompetent; and professional property management companies whose sole purpose seems to be to act on behalf of the freeholder and burden leaseholders with excessive costs, including extortionate commissions and overly expensive works.
The second stage of leasehold reform is well overdue. Our feudal leasehold system is precisely that: feudal, outdated and unique to England and Wales. Abuses of the system have been well documented in this House and elsewhere. The Leasehold Knowledge Partnership and the leasehold and commonhold reform APPG—I am a member of the latter—have done much valuable work on the issues facing leaseholders, of whom there are some 4.6 million in the country.
I welcome the Law Commission’s papers on exercising the right to manage and on leasehold home ownership. For those wishing to extend the length of their leases to ensure long-term tenure and preserve value, the current system is an arbitrary nightmare. As a surveyor told me recently, freeholders think of a lease extension valuation figure and double it. Surveyors and valuers then receive commission based on how much they can negotiate the lease extension figure down from an initial valuation that has no relation to market value. Again, all parties benefit apart from the leaseholder.
Abolition of so-called “marriage value” would be welcome. The proposed online calculator would also be of benefit. At last, leaseholders will be aware of the potential cost before embarking on the exercise. Her Majesty’s Government should firmly reject the specious argument made by some hedge funds that leasehold reform will imperil their human rights as property owners. If the law has to be changed to nullify this argument, it should be. In short, I look forward to the Government pressing ahead as soon as possible with legislation in this area that will offer real hope to renters and leaseholders.
(5 years, 11 months ago)
Lords ChamberI would slightly challenge the noble Earl on that. A significant communications campaign is going on at the moment and that will continue over the weeks and months ahead. We are also working closely with the transport operators, which have put an enormous amount of signage in their vehicles and at stations. They are also sending emails to their customers, as well as messages via their apps and websites, so a lot of work is going on. I think that the message is getting out there, but I can reassure the noble Earl that we are pushing on with this, although there is always more that we can do.
My Lords, in the Far East, people have been wearing face masks on public transport since the outset of the pandemic. If Her Majesty’s Government think that wearing face coverings on public transport is a good idea now, why did they not think that months ago? I suggest to the Minister that this was always just a case of shortage of adequate PPE, including face masks?
I do not think that the noble Lord is correct in his assumption. As we have said consistently throughout the pandemic, we were following the science at the time. It is also worth noting that very few people were travelling on public transport in the early days of the pandemic. The reality is that handwashing and social distancing are more critical in reducing transmission of the virus than wearing a face mask. Having a face covering on is something that we can put in place now, given that social distancing may not be as possible as it was in the early phases of the outbreak. In the early phases, almost no one was travelling on public transport.
(6 years, 4 months ago)
Lords ChamberMy Lords, I have spoken a number of times in your Lordships’ House on HS2—I am not alone in that—so I will try not to repeat myself in today’s debate. I welcome the Economic Affairs Committee’s report, Rethinking High Speed 2, so expertly outlined by the noble Lord, Lord Forsyth of Drumlean. The report rightly points to major flaws in this hugely expensive vanity project. Why, for example, is HS2 designed to be 40 to 80 kilometres per hour faster than France’s TGV, with the consequential and unnecessary damage to our environment, including wildlife and ancient woodland, as outlined by the noble Baronesses, Lady Young and Lady Bennett? I agree that the methodology and cost-benefit analysis put forward by the Department for Transport is wholly discredited, as the noble Lord, Lord Berkeley, and others have clearly shown.
The Government’s response to the committee’s report is lamentable. They blandly affirm that:
“The Department for Transport has confidence in its existing techniques, which have been developed over many years, to inform transport investment decisions.”
It is widely known that the department’s overseeing of major infrastructure projects has been an unmitigated disaster; take Crossrail, for one, which is over budget and chronically delayed, as mentioned by the noble Lord, Lord Monks. As mentioned earlier in the debate, we were even told by the former chairman of HS2, Sir Terry Morgan, that nobody knows how much HS2 might eventually cost. The cost of this project has already doubled since 2011 to over £100 billion. I make a prediction: if this obscene waste of money goes ahead, by the time it is completed in 2040 or later, costs will have doubled again. That is because no one involved has the slightest interest in keeping costs down—not the construction companies, the rolling stock providers, or the local authorities and trade unions so desperate for investment—and the general public will pick up the tab via their tax bills.
If the north and the Midlands want investment and better connectivity, there are better ways to achieve it. Local commuting services north of the Watford Gap are a disaster and a disgrace. Even the £100 billion allocated could be better spent, providing more than the 30,000 jobs posited to be provided by HS2, whether by building and staffing more than 200 hospitals, building 1.7 million social homes, or building more than 30 aircraft carriers. Do the maths: I think you would need more than 30,000 people to build 30 aircraft carriers.
I agree with the noble Lord, Lord Grocott, that we need significant investment in our rail infrastructure. There is no dispute about that, but is HS2 the best way to do it? I believe that it will prove to be a massive white elephant. On the continent, high-speed rail services have benefited the countries’ capitals, not the regions, so it will be London that will benefit from HS2, not the north and the Midlands.
Is it not strange that HS2 now has no vocal advocates, bar one, in the Cabinet that proposed it, and none willing to back it openly in the current one, including the Transport Secretary himself? I listened very closely to the noble Lord, Lord Adonis—unfortunately, he is not in his place and seems to have missed most of the speeches that opposed HS2. However, he has been known to change his mind—for example, on tuition fees—and I hope that he comes to the same conclusion on HS2.
Some £8 billion has been spent already on HS2, as has been mentioned today, and construction of the line has not even started. I hope that that gives enough of a warning signal. It will of course cost money to cancel HS2, but the cost can be mitigated by property and land sales. In business, it is sometimes better to cut your losses and make a better investment. In my view, we should do this with HS2, to save the environment and improve regional connectivity.