Lord Whitty
Main Page: Lord Whitty (Labour - Life peer)
Lord Whitty
“Housing strategy
(1) All measures required of local housing authorities in relation to social housing and homelessness as a result of this Part shall be undertaken in consistency with the housing strategy required by subsection (3) and with requirements under section 87 of the Local Government Act 2003 and section 13 of the Planning and Compulsory Purchase Act 2004, and regulations and guidance issued by the Secretary of State.
(2) All local housing authorities must draw up an analysis of housing supply and demand in their areas and neighbouring areas as far as is relevant.
This analysis should include all forms of tenure in their area and cover at least the following—
(a) trends in housing supply and demand in the owner occupied, private rented and social housing sectors;(b) trends in housing prices and rents;(c) new developments, new build and conversions;(d) empty properties;(e) second homes; and(f) broad demographic and employment trends in their areas.(3) On the basis of this analysis, each local housing authority shall draw up a rolling ten year housing strategy for their area.”
Lord Whitty
My Lords, I recognise the Minister’s confusion and nevertheless thank her for agreeing to deal with Report as we have. The reason that she was confused was that we clearly did not have a satisfactory end to Committee, and the last couple of parts of the Bill were not sensibly debated in this House. I am therefore very grateful—as, I think, are my colleagues on the Front Bench—that we are first debating on Report those parts which were then rather sparsely dealt with. I thank her and, having seen the Chief Whip just walk into the Chamber, I hope that equivalent flexibility is shown from the Government Front Bench on other issues.
Baroness Anelay of St Johns
My Lords, I think that I had better assist the House. As the noble Lord, Lord Whitty, recognised, the flexibility given was in granting extra time at Report. However, for the guidance of the House, we follow Report stage rules, and I would not wish there to be any confusion on that matter.
Lord Whitty
My Lords, I hope that I and my colleagues will keep to that.
In moving Amendment 1, I declare an interest as chair of a recently formed campaign group, Housing Voice. Amendment 1 is very similar to an amendment which was debated in Committee and it sets the provisions on social housing under the Bill in a wider context. This reconfigured amendment takes account of the response given by the Minister to that amendment. Like everyone else, I want to get on to the amendments that deal with the detailed issues which were not debated or replied to in Committee, so I shall not go over all the arguments again.
Simply, there are three reasons why we need an overarching commitment to the role of local authorities within housing as a whole. First, under localism, and as a result of other things, including the abolition of regional housing targets, local authorities have now become the major driver for achieving housing policy across the country. This follows more than two decades when the housing responsibilities of local authorities under both Governments have been somewhat reduced and their direct control as landlords has substantially reduced. This Bill and its consequences will put local authorities and a lot of the strategy relating to housing back on to local authority shoulders.
Secondly, I think we all recognise that housing is in crisis in terms of its provision, availability and affordability, and I shall just repeat one statistic. Household formation in this country is now running at twice the rate of the provision of new housing. Thirdly, that crisis affects all forms of tenure—owner occupation, the private rented sector and social housing—as well as mortgage markets. Therefore, it needs to be tackled holistically and there is a key role for local authorities in that. That should be put clearly at the beginning of this section on housing and the strategic responsibilities spelled out up front.
In reply to me in Committee, the Minister referred to other legislation where a strategic responsibility was already imposed on local authorities. As a result of her remarks, I have looked at those pieces of legislation and cross-referred to them in this new amendment. They are either rather specific or rather general. The Minister also referred to guidance in this area. Of course, the guidance is in the process of being changed to become somewhat more general, so the existing statutory references and the guidance are rather too vague. It is therefore in the context of localism and of the effective devolution of strategic responsibility to local authorities that we need a strategic responsibility in this House, rather than further ghettoising social housing, as there is a slight tendency to do in the Bill. The Bill would make significant changes to the way in which social housing operates without cross-reference to the effect of the changes on other forms of tenure, or indeed vice versa.
We will come to debate the provisions, on which there will be strongly differing views, but my central point is that almost none of them can be confined to social housing. They will have effects on the private rented market. That is referred to in part in the homelessness provisions but nowhere else. They will also have effects on the demand for affordable mortgages, on planning, on development, on homelessness and on how local authorities deal with empty properties. The consequences of some of the provisions will be that social housing is seen as a residual housing responsibility rather than part of this whole. Whatever one thinks of those policies and the parallel policies dealing with the benefit side in the Welfare Reform Bill that we will debate next week, one cannot deny that the present housing crisis means that the pressures on social housing by restrictions on access to tenancies, or by raising rents, will cause further pressures on the private rented sector and the mortgage market. Nor can one deny that the effects of moving relatively high income groups of current social tenants out of the social tenancy market will also have those effects.
This Bill will make radical changes to social housing. It removes security of tenure for future tenants, abolishes most rights of inheritance and abolishes the financial framework under the HRA. It makes the availability of social housing effectively means-tested and the Welfare Reform Bill caps housing benefit. One can query whether that is consistent with the Government’s overall strategy to move people from benefit to work, but nevertheless it will have those effects. There are also changes, which we will debate shortly, to the obligation of local authorities on homelessness. It will therefore push working families into the private rented or affordable mortgage market and may well drive the working poor in many parts of the country out of social housing and to change their location from the inner cities, putting pressure on areas where perhaps it is not currently so great. Except in relation to homelessness, there is no cross reference to those pressures.
Pressures are likely to increase and we will see a spiral increase in demand. A low rate of new build is continuing and the level of rents and access to mortgages and deposits on mortgages are all still going up. The latest reports suggest no let-up in that tendency. We need a clause of this nature in the housing provisions of a Localism Bill. We also need local authorities to co-operate with each other, which will be discussed in the planning provisions of this Bill. Whatever we decide on the provision for social housing, and assuming that the rest of the Bill more or less stands—especially if it stands as it is—we need social housing measures now clearly devolved to local government level to be placed within this wider context. We therefore need a clause such as this.
The existing provisions are not adequate. I appreciate that the Government may not like the wording of this proposed new clause, so if they want to take it away and come up with a better version in time for Third Reading, I am not proud and would be very happy if they were to give that commitment. Such a provision is absolutely needed. I beg to move.
Lord Kennedy of Southwark
My Lords, my noble friend Lord Whitty put forward a similar amendment in Committee on the last day before the Summer Recess. The Opposition did then, and do now, give this amendment our full support and hope that there will be a positive response from the Government today.
There is a crisis in housing across all sectors. We have huge numbers of people on the waiting lists for social housing. The private rented sector cannot meet the demand as the cost of renting in this sector is often out of the reach of many people. You have only to look in the windows of your local estate agents, nearly all of which have a section devoted to private renting, to see what rents are being demanded per month. I grew up in social housing and was lucky enough to buy my first property in my twenties, but the picture is very different now, with people often having to wait until their thirties or forties to get on the property ladder, as they save up the money required for the deposit needed to get on the first rung.
In her response to the debate in Committee the noble Baroness, Lady Hanham, said that the amendment was unnecessary as local housing authorities were already under statutory obligations. She quoted both Section 13 of the Planning and Compulsory Purchase Act 2004 and Section 87 of the Local Government Act 2003. That is fine as far as it goes, and noble Lords will see that my noble friend Lord Whitty draws on those two provisions in proposed subsection (1) of his amendment in relation to social housing and homelessness. It goes on to require all housing authorities to draw up an analysis of housing supply and demand across all forms of tenure in their areas and neighbouring areas as far as is relevant. They must look at housing trends across all sectors, take stock of house prices and rents, understand what has been built and provided locally, and know the number and type of empty properties: for example, is this an area where there are a number of second homes, and what are the demographic and employment trends in the area? All this must be brought together to enable an authority to plan, make informed decisions and act to build communities and to enable areas to grow and prosper.
This is a sensible proposal and I hope that the Government have reflected on it over the summer. If they are not prepared to accept the amendment, that is regrettable, and I hope that the Minister will be able to tell the House in detail why not. If my noble friend is not satisfied, he may wish to test the opinion of the House.
Lord Whitty
My Lords, I thank the Minister for giving the amendment her careful consideration, and I also thank the noble Lord, Lord Williamson, my noble friends Lord Beecham, Lord Kennedy and Lady Wall, and to some extent the noble Lord, Lord Newton, for speaking in support of it. The Minister has reiterated her previous position that this amendment is not necessary and I think I interpret that as her saying that not only are there objections to the wording of this particular proposed new clause in terms of a 10-year rolling strategy and other things but that she could envisage no strategic clause that would be helpful to the position. If that is the case, I have to part company with her.
The noble Baroness was right to say in opening that there is a long-term trend and that it will certainly take a long-term programme to reverse it. However, things have got significantly worse in the past few years with the decline in new build as well as in the mortgage market. As the noble Lord, Lord Newton, said, for the past 30 or more years we have assumed that the housing situation was going to be improved, at least in the long term, by the increase in home ownership. That has seen a very sharp reversal. We see from a report published only last week by the National Housing Federation that home ownership has already fallen from over 70 per cent to 63 per cent, and it envisages that it will shortly be below 60 per cent. That is an entirely new situation confronting the Government, developers and local authorities, so there is a sharper situation than the one envisaged by the provisions of the earlier legislation.
I also think that this Bill as a whole places more responsibility on local authorities than was the case when those pieces of legislation were brought forward. Personally, I am in favour of putting more responsibility on local authorities in this regard, and in that sense I depart from some of the measures taken by the previous Government and the one before that. However, in the situation that we face, local authorities are both legislatively and in reality going to have to take more responsibility, and therefore they need a strategic framework.
Furthermore, the key point which the noble Baroness missed is that the third line of the amendment makes it clear that we cannot consider the social housing strategy set out in subsequent clauses of this Bill, which we shall come to debate, unless it is set against an overall strategy. That, in a sense, is the main reason for putting this in at this point in the Bill, otherwise we move straight to social housing, with all the problems of waiting lists, which we know councils face, and all the problems that have been identified in relation to the provision and allocation of social housing without referring to a wider framework. That would be wrong.
There are legitimate questions about whether a 10-year strategy is the right one. We need some sense of perspective for planning and development purposes, but we must also recognise that we have to adapt to changing circumstances. A rolling programme allows you to do that. If the noble Baroness wishes me to change the reference to 10 years, I will do so, but we need some sort of rolling programme. If we do not have it, the social housing propositions in the Bill will be seen—I hate to put it in these terms in one sense—as an attack on past social housing practice and a problem for future social housing rather than as a contribution towards solving the overall housing crisis. I therefore think that this issue is sufficiently important for me to test the opinion of the House on the amendment.
Lord Taylor of Goss Moor
My Lords, I welcome my noble friend putting forward these amendments, and particularly Amendment 22. I should like to chase the Minister for some clarity about what seems to me a fundamental issue in the Government’s reforms. There are two forms of provision in the development of social housing—long-term social housing at low rents for security and an intermediate affordable rented model. There is something of an unanswered question and for clarity it would help if Ministers could explain their long-term intention in how we are approaching these changes.
It seems to me that—this is reflected in Amendment 22—where there is clear, long-term need, it continues to make complete sense to have a model of housing that is secure and has low rents, for which the primary government support system is through a capital subsidy. We should be looking in the long run to ensure that there is adequate provision in terms of numbers of social houses to meet long-term needs. It makes no sense for the state to do this otherwise. That does not provide adequate security to individuals and it comes at high cost to the state if higher levels of rent are paid. In pure value-for-money terms, it makes sense to adopt the traditional social housing model.
I believe that, for people who are transitioning through periods of need, it makes more sense to have a much more flexible model, in which the subsidy may well come in the form of temporary help with rent—that involves a benefit system rather than a huge up-front capital subsidy and then a low rent. Very similar individuals in similar circumstances can either get the gold standard trump card of social housing or they may be in the rented sector. It is not obvious what the distinction is other than the circumstances in which people went into that housing. It is also the case that it makes no sense, when we are short of such housing, for property that has had a huge up-front capital subsidy to be permanently made available to people whose needs may radically change over time and who may not need it.
I can see the argument for two models but I do not see the Government being sufficiently explicit about the path by which the right people will get the right kind of offers and the circumstances in which they will get the security that they need if their needs are long term, in the way described by my noble friend. The definition in Amendment 22 looks perfectly reasonable, but it may be that it can be done better or that the Government think there are other routes for doing it. It is deeply important to define this and debate it properly, understanding not only the transition but where the Government ultimately want to take us. If we understand that, we will have a clearer idea of the long-term social housing need in this country. We can play that against those with such long-term needs. We will understand better the role of intermediate affordable housing and where that plays into the equation in the long term.
It looks to me that, without such a definition, we will be left with deep uncertainty for individuals in long-term need who want security. There will be deep uncertainty in terms of the individuals who get housing—some may get a social housing offer or an affordable housing offer, but there will be no clarity about who gets what. It is more likely that it will depend on what is available at any given time rather than on need. In particular, on the social housing model for those in long-term need, which is the best form of delivery, we will be giving up assets as they transfer over to affordable rent without any clarity on the numbers that we need in this country, the places where we need them or the long-term strategy.
Lord Whitty
My Lords, my name is down for two amendments in this group. I strongly agree with most of what the noble Lord, Lord Shipley, said. I also agree with the noble Lord, Lord Taylor, that this is the point where we are asking the Government to set out their long-term strategy. I am afraid that once they do, I think I will deeply disagree with it.
I appreciate and understand that existing tenants in their lifetime tenancies are by and large protected from this change. Therefore, any change and ultimate destination is pretty long term. It also seems to me that the Government’s long-term ambition is to abolish long-term and lifetime tenures. I can understand the temptation for them to do so when there is a shortage of affordable housing and great pressures on the existing stock but it is the wrong temptation, largely for the reasons given by the noble Lord, Lord Shipley. The role of council housing, not in its absolute origins but for most of its existence, has been to provide for people who cannot get on the housing ladder a degree of security and stability and to live in and work for a community in which to bring up their children.
I appreciate that there are some failures in that but there are also some significant successes. It has also meant that in some areas both rented and owner-occupied private sector properties can put the market price well out of the reach of most people. It has also allowed us to have mixed neighbourhoods in areas that would otherwise become ghettos for the rich. Just to take a random example, I mention the Royal Borough of Kensington and Chelsea. Because of the legacy of Victorian philanthropists and some of their predecessors in what were two boroughs, there is a significant amount of social housing in an otherwise extremely rich area. Is that to be gradually phased out for people who are not regarded as exceptions but as part of the community? The stability of community has existed in many of the estates there, in other London boroughs, and in places such as Bristol, Newcastle, and so on because we have had long-term and lifetime tenancies. To abandon that prospect and effectively in the long term to turn the whole of social housing into safety net and emergency provision is to run the risk of destabilising communities which have hitherto been relatively stable and to ensure that only the very, very poor and those falling within the kind of exemptions specified in Amendment 22 can live in a lot of areas in our country, particularly our inner cities.
That is not a recipe for a stable and coherent society. The Government should hesitate before going completely down that road. There are some brakes on that provision in this group of amendments. On the amendment suggesting that flexible tenancies should be a minimum of five rather than two years, I cannot understand the Government’s position. They are telling us that in practice five years probably will be the minimum except in exceptional circumstances, so why cannot we write the provision that way round in the Bill? It could say that there would normally be a minimum of five years except in exceptional circumstances which could then be defined in secondary legislation, and which would be subject to a degree of quality control by council decisions. If we move into flexible tenancies throughout, that would at least put a brake on the destabilising effect of potentially having only two-year tenancies, which does not give a couple, a family or even an individual a lot of security.
I would like to be more radical than that. My final amendment in this group suggests that there should be a limit, at least at this stage, on the degree of movement towards flexible tenancies, thus preserving, for the most part, that the default position for those who are entitled to new tenancies under these provisions are limited. I agree with the noble Lord, Lord Shipley, on his exemptions. The most vulnerable people should certainly be exempt from this provision, but I would make the exemption wider or put a limit on the degree of progress towards destroying the stability that social housing has provided for many in our population.
As I said in the earlier debate, other sectors of housing provision are in crisis and overstretched, and likely to be so for a considerable time. That leads to instability and to a change in relations between the generations. If people cannot get on the housing ladder until they are 40, they will not be in a position to help their sons and daughters until they are well past retirement age—or at least the current retirement age. Therefore, there will be a need for more family accommodation, because people in many parts of the country will not able to get on to the housing ladder, or in many cases meet the rent for decent accommodation in the private rented sector.
Social housing should continue to provide that asset. The terms on which it does so may vary, but the comprehensive move away from life tenancies to flexible tenancies that may have a length of as little as two years would destroy a significant element of housing provision and opportunities in this country. I appreciate that it will take time to get to that position, but it should not be the final position. Therefore, my amendment in this group suggests that only 25 per cent of households should be moved to flexible tenancies. One could argue about the percentage, and obviously individual councils will take different percentages. However, there needs to be a maximum, otherwise we are laying down significant problems for the future at a time when other sectors of the housing market are in such a dire state and when the pressure on housing as a whole will increase for at least the next 20 or 30 years.
Lord Kennedy of Southwark
My Lords, the amendment moved by the noble Lord, Lord Shipley, has the full support of the Opposition. I concur in particular with the remarks of my noble friend Lord Whitty. This amendment was moved by the noble Lord, Lord Best, in the curtailed Committee stage on the last day before the Summer Recess. As the noble Lord explained, the amendment concerns the flexible tenancy regime proposed in the Bill. It is supported by both Crisis and Shelter and seeks to provide protections for certain vulnerable groups by excluding them from the proposals. The groups to be exempt are of people for whom, through a variety of circumstances, flexible tenancies are not appropriate. The groups include older people aged 60 or more, households where one or more member has a long-term illness, and tenants who need more secure forms of accommodation.
What worries me most about this section of the Bill is the reliance that the Government have placed on words such as “in most cases” or “of course, the social landlord will take into account the needs of the vulnerable”. This is all too risky for the people most in need of additional help and protection. I hope that the Minister has had time over the summer to reflect on the proposals, and will be able to give us some welcome news today, and assurances that at least things will be tightened up. If that is not the case, I hope very much that the noble Lord, Lord Shipley, will press his amendment and test the opinion of the House.
Baroness Hanham
My Lords, I hope that I can ease the minds of all noble Lords on this. When we say flexible tenancies, that is what we mean. We also mean, with localism, that local authorities, housing associations and social landlords will be able to make their own decisions about this. If local authorities decide that they have enough housing provision and can manage their tenancies without the flexibility that we are offering, and if, as the noble Lord said, they are providing specialist housing, for example for older people, they will offer lifetime tenancies and that will be it—no one will put any pressure on them.
The reasons for introducing the measures relate, first, to the fact that housing is in short supply. Anyone who has anything to do with local authority housing knows that some people do not need lifetime tenancies. For various reasons they need them for a short term such as five or 10 years. At the end of that time their children may have grown up, they may need to move, their income may have improved so that they no longer need social housing and they may be perfectly happy to have a shorter tenancy. The move is in the right direction. It is correct that we should be able to say to local authorities that in discussion with their tenants they will be able to offer a tenancy of less than a lifetime. If, at the end of the three, four, five or 10 years that the tenancy is for, the situation has not changed, they will renew the tenancy. Nothing here threatens any housing association or anyone who is looking for social housing.
We have made it absolutely clear, and I have laid information on this in the House Library, that the two years mentioned in the Bill—I do not accept the premise of the noble Lord, Lord Whitty, that we should put five years and then downgrade it to two—will be exceptional. Some noble Lords may not agree, but some people need only short-term accommodation. The Minister, Mr Shapps, cited someone he knew who had a major disability that was caused unexpectedly and who for a very short time needed help, which the local authority under these provisions would be able to give him because it could give a restricted-time tenancy. Other people such as recovering drug addicts and people with short-term financial problems should not be given a lifetime tenancy but would benefit from social housing for a short time on the understanding that if at the end of two years the situation has not changed they will be offered a further tenancy if it is required.
I refute absolutely that we are trying to change the whole nature of a tenancy. We are trying to maximise the use and value of social housing. We have all agreed this afternoon that it is limited, that it is precious and that some people require it at various stages of their lives. To entitle local authorities to have flexibility in what they do seems to us to be just plain sensible at this stage and in the situation we are in. We have made it clear—again, this draft is in the Library—that two years is to be exceptional and that the tenancy policies of social landlords and local councils will have to state what they mean by exceptional. A tenancy policy will state what the landlord sees as a possible exception for two years. That will have to be laid out so that everyone knows what it is. The expectation is that these will not be used very frequently. They will probably be used very infrequently, but there should be the right to have that flexibility. Therefore, by definition, the tenures stretch from two years rather than five, as is being proposed. We wish the two years to stay in the Bill.
I trust that the noble Lord, Lord Shipley, and others have received the letter that I sent during the summer saying what we are proposing to do. We have made clear to the social housing regulator that this is to be the situation in the new tenancy standard on which we are currently consulting. The revised text sets out that tenancies with a term of less than five years may be granted only exceptionally, and if social landlords decide that there are exceptional circumstances they will be able to set out in their tenancy policies what those exceptional circumstances will be.
In addition to the example I have given, young people who need support for a short time, families who need a larger home for a short period and shorter-term support for recovering alcoholics and drug addicts are examples that we have been given as a result of the consultation on this by social landlords. They are real cases and there is a real ability to help people.
When the noble Lord, Lord Shipley, raised this in Committee, I made it clear that we recognise that the needs of older people and those with disabilities, for example, are going to remain constant over the long term. It will certainly be open to local authorities to give them long-term tenancies. It is perfectly sensible to keep older people in the house or flat that they are familiar with and not to remove them from the people and places that are familiar to them. We believe that landlords understand that as well, but we believe that safeguards are needed and that the tenancy standards are the right place for them as they will cover all tenants. This is important because the amendment would not cover both social tenancies and local authority tenancies. We believe that they should cover both so there is no doubt about it. We are consulting on a draft direction, and we will consider whether that can be tightened up. The direction relates to the tenancy policy. If it is possible, I hope that we will have a draft of that before Report, but I shall not make any promises on that at the moment.
We believe that Amendment 28, which was tabled by the noble Lord, Lord Shipley, is unnecessary. It seeks to guarantee continued security on moving home for secure and assured tenants, but only when they move to a local authority home. We want to make it clear that we are talking about moving within the affordable sector. Through the tenancy standards, we have guaranteed continuing security for existing tenants who move to another social-rented home.
I hope that I have made it clear in what I have said and the way I have said it that we do not expect these provisions to do anything other than free some local authority and social housing from people who do not need it and make it available for people who do, but they by no means undermine the provision and ethos that people who need a home for life should have it. It is just recognition that that is not always the situation and that local authorities should be able to work to that.
Lord Whitty
Before the Minister sits down I should say that I felt that her assurance to the noble Lord, Lord Best, was not quite as unequivocal as the one I think he was seeking. The history is that when the past two Governments gave flexibility to local authorities, if those authorities had not followed the Government’s preferred option—being less enthusiastic than was hoped about the right to buy or, under the previous Government, less enthusiastic than they wanted on stock transfer—a financial penalty followed down the line. If the Minister is giving an assurance in response to the noble Lord, Lord Best, that that will not happen this time, we should be grateful, but I do not think she quite went that far.
Baroness Hanham
My Lords, I thought I made myself pellucid on this. Local authorities and housing associations will have the flexibility and the right to offer only lifetime tenancies. I do not see that that money has anything to do with this. I do not think there is any likelihood that Parliament will want to intervene in that. That is the situation. They can have lifetime tenancies for everyone if they wish, but if they have other people who they think could make better use of the property or have people who do not need it, as I have said before they will be able to do that. I cannot commit future Governments, so I would like to commit mine for a very long time, as they will be there, but as the noble Lord knows perfectly well one can commit only one’s own Government, and I think I can commit ours to that.