Housing and Planning Bill (Sixteenth sitting)

Matthew Pennycook Excerpts

Thursday 10th December 2015 Public Bill Committees

[Helen Hayes (Dulwich and West Norwood) (Lab)]

It is absolutely shameful that the Government have tabled this new clause so late in the Committee’s deliberations, without time for tenants to be consulted, without time for the Committee to take evidence orally or in writing from tenants and from those who represent tenants, and without the opportunity to hear the views of the social housing sector and of councils. The proposal is yet another radical reform and a forceful attack on social housing as we know it.

Southwark Council, one of the councils that I represent, consulted during the previous Parliament on the Government’s proposed flexibility to change the form of council tenancies. It consulted extensively with its tenants and in the end it decided to take advantage of the proposal to introduce introductory tenancies, but not to remove lifetime tenancies. That was because of the views that residents expressed during the consultation.

I recall a conversation with a woman who lives on one of my council estates. She was an original right-to-buy tenant. She bought her flat and brought up her family there. She has lived on the estate for more than 40 years and has been the life and soul of the community; she has been chair and vice-chair of her tenants and residents association. She said to me, “If you as the council introduce this proposal, we are finished as a community, because you will be undermining the stability of our community. You will be destabilising. We will have a much more rapid turnover. Our ability to be a cohesive, strong, stable and long-term community on this estate will be gone.” That is the significance of this proposed reform of social housing. It denies stability and security to households on low and moderate incomes, who cannot afford to buy.

I do not understand why the Government are so set on making a distinction between the aspirations of people who can afford to buy and those of everybody else. I do not understand why the Government are bent on denying people on lower incomes the stability of knowing that they can live in their community for the long term; that they can send their children to the local school for as long as they need to be there; that they can invest in that community and play an active role in supporting their neighbours and in giving back. I do not understand why the Government are making that distinction on income grounds alone.

I am concerned that a consequence of the proposal will be to force tenants, for whom home ownership is not sustainable in the long term, to consider the right to buy. In my nearly six years as a councillor, many residents have come to me in deep distress because of the cost of major works bills and the cost of service charges, which they did not necessarily anticipate were coming and which they had not set aside the money for. They had 95% mortgages and they did not have the equity in their home to be able to borrow to cover those costs. Their home is threatened as a consequence of the financial strain. I am concerned that if people think they have only two, three or five years to live in their social home, and that the way to achieve longevity is to buy their home, they will be forced to take up the right-to-buy option when it is not in their long-term financial interests to do so.

It is worth rehearsing exactly how many and varied the ways are in which the Government seem bent on an attack on social tenants. We have the high income tenant provision for tenants who are not actually recognised as high earners by Her Majesty’s Revenue and Customs under the pay to stay clauses. We are still living with the pernicious bedroom tax. We have absolutely no funding line at all in the comprehensive spending review to deliver a Government subsidy for new social housing, the delivery of which—not the punishment of existing tenants—is the key to solving the social housing crisis. The forced sale of council homes will reduce the number of those homes available to meet the need that is there. This is a race to the bottom on housing for those on low to moderate incomes. It seems to me that the poor standards and insecurity of tenure of the private rented sector are the standards the Government are aiming for, rather than an aspiration to raise standards and security of tenure, and the availability of secure tenure, for those on low to moderate incomes.

New clause 32 is a further pernicious measure that simply punishes those who, through no fault of their own, are on low to moderate incomes. It shows absolute contempt for social tenants that the new clause has been introduced with no opportunity for tenants or their representatives to be consulted and make their views known, and with no opportunity for the Government to hear from them at first hand. Many times during Committee I have referred to my constituents—the people who, every week, come to my surgeries and write to me. Week in, week out, many people raise issues relating to security of tenure. They worry and are caused great anxiety—in fact, it affects their mental health to know that they might have to take their children out of school to move to a more affordable area. Insecurity of tenure undermines people’s ability to save for the future, the strength of community connections, and the ability of people to support each other in a mixed, balanced and diverse community. These things matter to all residents, not only those who can afford to buy their own home.

I would like the Committee and the Government to hear at first hand from tenants and leaseholders—those who live alongside tenants on our mixed and diverse estates—about the effect the new clause will have on them. I hope that the Government will withdraw the new clause so that tenants’ views on it can be heard and can inform the debate.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

It is a pleasure to serve under your chairmanship once again, Mr Gray.

I rise to oppose the new clauses and new schedules. In doing so, I will try to be as measured as my hon. Friends the Members for City of Durham and for Dulwich and West Norwood, but I too am angry. Let us be clear: this is not just one group of a bunch of new provisions that have been tabled; taken together, the new clauses and new schedules represent a significant reform of housing law—probably, as my hon. Friend the Member for City of Durham said, the most important since local authority tenants were given security of tenure by the Thatcher Government in the Housing Act 1980. We can have a robust debate about the rationale for the Government’s policy, but whatever the views of individual Members on the Government and Opposition Benches, there is absolutely no justification for the shabby way that these provisions have been brought before the Committee. There has been no consultation or impact assessment. The Minister says we will get one sometime before the Bill goes to the House of Lords, but that will not give the Committee an opportunity to scrutinise this important legislation properly.

[Mr Thomas]

Is it not all the more disappointing that the Minister has confirmed that housing association tenants also face the potential loss of their secure tenancies? We do not know when there will be a consultation on that either, in the same way as there has not yet been a consultation on the provisions before us now.

--- Later in debate ---

[Matthew Pennycook]

My hon. Friend makes a good point. If I was a housing association tenant, or if I ran a housing association, I would be worried by the implications of the new clause and new schedules for tenants and for the sector as a whole.

Turning to some of the specifics, I have a number of concerns about the consequences, intended or otherwise, of the proposals. The most important is that the new clauses are yet another example of the centralising nature of the Bill. Perhaps that is the weakest part of the Government’s argument. The Minister argued that the measures are intended to promote the more efficient use of council housing, and the hon. Member for Thirsk and Malton said that they are designed to make better use of stock, but the Localism Act 2011 already allows local authorities to grant fixed-term tenancies.

Currently, it is left to local councils to decide whether to grant traditional secure tenancies or fixed-term tenancies. The Minister touched on the fact that there will be freedom and opportunity for local authorities. If that is the aim, why the need for legislation? They have that as things stand. More telling was his staggering comment that the measures are needed because local authorities are not taking advantage of the freedoms available to them. What kind of localism is it that says to a local authority, “Here is a power that you can use if you decide, as a democratically elected local authority, that the housing needs in your area demand it, but if you don’t use it, we are going to take it away, make you look at it again and force you to use it”? That is not localism. As the Conservative party has championed localism, I thought that the Government might have thought about this measure a little more carefully.

My hon. Friend the Member for City of Durham has already said that the provisions for recovery of possession at the end of the fixed term and against a successor are not workable. Where a local authority grants a fixed-term tenancy, possession proceedings operate by way of forfeiture, yet the Bill excludes forfeiture from the remedies available against fixed-term tenancies. That is unsurprising, because the provisions have been introduced so hastily that the drafting is flawed and will need to be reviewed at a later date.

Perhaps the most important point is the one made powerfully by my hon. Friend the Member for Dulwich and West Norwood. The new clauses and new schedules will have implications for the building and maintaining of stable and secure communities. I return to a point that we have touched on several times previously, including in our discussion of the pay to stay clauses. When we look at social and public housing as a zero sum game, through the lens of dependency and economic subsidy, as Government Members clearly do, we are into a world where we are undermining mixed communities. I thought that the Government—the coalition Government certainly stated this—believed in sustainable, inclusive, mixed communities. How can we have mixed communities if anyone who does well, who saves and gets a better job, is encouraged to move on?

As my hon. Friend the Member for Erith and Thamesmead, who has actually experienced living in social housing, has said, if they have the opportunity and the security and stability on which to do it, most people will take the opportunity to buy their own home and move out at some point in the future. Coercing people or applying pressure on them to do so is not the way to encourage them to move on. That is what the provisions will do.

The new clauses do not, as the Minister said, strike the right balance; they will be deeply damaging to communities throughout England, including those I represent in Plumstead, Charlton, Woolwich and Greenwich. I encourage the Minister to visit some of the estates and talk to the people there, who will say exactly as my hon. Friend the Member for Dulwich and West Norwood did: the people who hold these communities together—the glue, if you like—are those tenants who have perhaps done a little better than others but have stayed and are trusted and looked to as community figures.

The measures will increase transience and churn and undermine mixed communities. They are conclusive proof that the central thrust of the Bill is an attack on public housing and the families who rely on it. It is bad policy and, more important, it is bad policy making. The Government should go away and look again and at least, at a minimum, if they really believe in this, come back to us after a consultation when we can look at a proper impact assessment. They should not be introducing these new clauses in such a shabby way.

[Mr Jones]

rose—