Social Housing Bill (Second sitting)

Matthew Pennycook Excerpts
None Portrait The Chair
- Hansard -

I remind the Committee that with this we are discussing the following:

Amendment 3, in clause 12, page 12, line 5, at end insert—

“171AA Right of first refusal: registered providers

(1) This section applies where—

(a) a sale notice has been given under section 171A in relation to a dwelling, and

(b) the dwelling—

(i) is let at social rent, or

(ii) was previously transferred from a local housing authority.

(2) During the period specified in section 171A(3), any registered provider which received a sale notice under section 171A(2) may make an offer to acquire the dwelling.

(3) Where an offer is made under subsection (2), the private registered provider must dispose of the dwelling to the registered provider at existing use value for social housing.

(4) A dwelling acquired under this section must be retained as social housing within the meaning of Part 2 of this Act.

(5) Any dispute as to the existing use value for social housing shall be determined by an independent valuer appointed by the Royal Institution of Chartered Surveyors.

(6) The Secretary of State may by regulations make provision about the operation of this section.”

This amendment gives registered providers a right of first refusal to acquire social rent dwellings and dwellings previously transferred from local authorities at existing use value for social housing.

Amendment 10, in clause 12, page 12, line 5, at end insert—

“171AA Right of first refusal: local affordable housing providers

(1) This section applies where—

(a) a sale notice has been given under section 171A in relation to a dwelling, and

(b) the dwelling—

(i) is let at social rent, or

(ii) was previously transferred from a local housing authority.

(2) During the period specified in section 171A(3), where a qualifying local affordable housing provider makes an offer to acquire the dwelling, a private registered provider must dispose of the dwelling to the qualifying local affordable housing provider at existing use value for social housing.

(3) A dwelling acquired under this section must be retained as social housing.

(4) In this section, a ‘qualifying local affordable housing provider’ means—

(a) a community land trust;

(b) a housing co-operative;

(c) a community benefit society;

(d) a charity whose purposes include the provision of affordable housing; or

(e) such other locally based not-for-profit housing body as may be prescribed by regulations,

which operates, or intends to operate, affordable housing within the local housing authority area in which the dwelling is situated.

(5) Any dispute as to existing use value for social housing shall be determined by an independent valuer appointed by the Royal Institution of Chartered Surveyors.

(6) The Secretary of State may by regulations make provision about the operation of this section.”.

This amendment seeks to extend the right of first refusal to not-for-profit community-led housing organisations and other non-registered providers capable of retaining homes as affordable housing within the local area, and provides that the disposal must be at existing use value.

Matthew Pennycook Portrait The Minister for Housing and Planning (Matthew Pennycook)
- Hansard - -

It is an absolute pleasure to see you in the Chair, Mr Western. When we finished this morning’s sitting, I was responding to a point from the hon. Member for Taunton and Wellington, who is not in his place; I know he is a trusty reader of Hansard, so I am sure he will see my remarks.

Essentially, I was saying that it would not be appropriate for me to share any specific advice that I have received on the matter that we are debating. It is not the standard procedure for the Government to put official advice in the public domain. I again draw the Committee’s attention to the fact that the decision taken by the Office for National Statistics back in 2015 clearly identified the approval of disposals by the Regulator of Social Housing as a key control that resulted in the reclassification of the housing association sector to public.

It is the Government’s considered opinion that many of the suggestions for further controls over housing association assets, which go beyond the notification requirement in the Bill, would likely be a significant classification risk. I have committed to writing to the hon. Gentleman if there is any further detail that I can provide, but we are somewhat limited in what we can say about how the ONS makes those decisions.

None Portrait The Chair
- Hansard -

As we have heard, Gideon Amos is not present. Mr Dillon, do you know what his wishes are? Does he want to withdraw the amendment?

--- Later in debate ---
Lee Dillon Portrait Mr Dillon
- Hansard - - - Excerpts

It is a pleasure to serve under your chairship, Mr Western. I would like to speak to amendments 100 and 7. Amendment 7, which in the name of my hon. Friend the Member for Taunton and Wellington, really gets to the “what”: what is being offered for disposal, whether it is at social rent and what the energy performance certificate rating is. Amendment 100 is a follow-up to that: the “why”. Why is a property being disposed of? Is it for financial viability? Is it because of the cost of retrofit? If we were to collate that data, the Government would be able to reflect on the success of this policy in later years.

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - -

Government amendment 20 requires sales notices from private providers to include information about whether the rent standard applies to the dwelling and, if it does, the rent category of the dwelling. Engagement with the sector has highlighted the importance of potential purchasers knowing the rent category of a home when taking decisions about purchasing it. That is because the rent category has implications for the future rent that can be charged, and therefore the future income potential of the property.

I remain mindful of the need to ensure the disposal notification is proportionate and limited to the information that is most useful to those considering purchasing the property. We believe information relating to the dwelling rent category is a useful and reasonable addition to the information requirements. I therefore urge the Committee to support the amendment.

Amendment 82 would require the Secretary of State to have regard to the operational and financial independence of private registered providers when making regulations under proposed new sections 171B or 171A of the Housing and Regeneration Act 2008. A common theme in my responses to the amendments on the disposals measure in this Bill is that I recognise that private registered providers are private bodies that need to be allowed to make their own business decisions. In short, for that reason, I do not think the amendment is required. If making regulations, the Secretary of State would necessarily be aware that housing associations are private bodies. I reassure the shadow Minister that we have no current intentions to use these powers.

I believe that the hon. Member for Newbury spoke only to amendment 100. Am I wrong?

Lee Dillon Portrait Mr Dillon
- Hansard - - - Excerpts

And amendment 7.

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - -

I will deal with both, in that case. Amendment 7, in the name of the hon. Member for Taunton and Wellington, would significantly expand the information required to be included in sales notices where a private registered provider intends to dispose of a property outside of the regulated sector, to include, for example, whether a property complies with the decent homes standard, its EPC rating and whether it has been adapted for accessibility.

The Government’s view is that adding requirements for more information to be included in the sale notice would not be proportionate. We do not want to impose additional unnecessary burdens on providers, and we certainly would not wish to see information requirements introduced that would mean additional reports need to be produced, or surveys carried out, though I note the hon. Member’s amendment does seek to avoid this.

Our view is that extending the notification window to eight weeks will allow providers to have the opportunity to request further information that they judge to be necessary to their consideration of a potential purchase. However, I do not think that requiring the inclusion of all this information by law is a proportionate response. Our aim is to capture the basic elements that will always be relevant to providers when considering purchasing a home, and provide more time for inquiries to be made where needed. That point has come up previously. The provisions in the Bill do not prevent those notifications and requests for further information between the parties in question from being made. That is the basis on which I brought forward amendment 19, which requires information on the category of rent, which we think is an important improvement.

Amendment 100, which is in the name of the hon. Member for Newbury, would require providers to categorise their reason for disposing of a property as either financial viability, the cost of energy efficiency retrofits, stock rationalisation or some other reason that might be specified through secondary legislation. My concern is that seeking to prescribe particular categories of reason in the notice might result in a less helpful notification. Let me explain why.

First, it requires providers to identify one particular reason behind the sale. It is possible that the proposed sale will be based on more than one of these categories. It is also possible that there might be a different driver entirely. In response to a very reasonable question from the hon. Member for Broxbourne, I tried to give a sense of the variety of reasons that individual providers might be disposing of particular stock.

Secondly, there is a risk that by setting out the categories in legislation, providers will just use the default descriptions of the reason and fail to provide a fuller and more helpful description for those being notified. Thirdly, although I do not think this was the intention of the hon. Member for Newbury, the amendment would have the effect of preventing sales from going ahead. No sale can proceed without a notice, and the notice must be valid. To be valid with this amendment in place, the notice must include one of a limited list of reasons. The Government cannot support an amendment that would prevent legitimate disposals. For those reasons, I hope that the hon. Member will not press the amendment to a Division.

Gareth Bacon Portrait Gareth Bacon
- Hansard - - - Excerpts

I have heard the Minister’s response. As always, I do not in any way doubt his sincerity, but unfortunately he will not always be in post. We would prefer to keep the Government honest on this point, so we intend to press amendment 82 to a Division.

Question put, That the amendment be made.

--- Later in debate ---
Matthew Pennycook Portrait Matthew Pennycook
- Hansard - -

As I have set out, the Government are committed to protecting our much-needed social housing stock. As it stands, there is no requirement for advance notification of disposals of social homes, meaning that opportunities to retain them within the social housing sector can be missed. Although private registered providers may choose to dispose of homes for valid reasons, including to support investment in new supply and the effective management of their stock, we understand that that can have a particularly acute impact in areas where the supply of social housing is already constrained.

It is therefore important that opportunities to retain homes within the social housing sector are not missed, particularly in areas with significant demand or where replacement is particularly difficult. Clause 12 will achieve that by requiring providers to notify the relevant local authority and other registered providers in the area before a sale can be completed. It creates a short window during which completion of a disposal cannot take place, while still allowing providers to market the property and continue with their disposal plans as usual. The window was set at four weeks upon introduction of the Bill, and the Government are seeking to extend that window to eight weeks, in response to concerns raised by both Houses and by stakeholders that it was too short.

The new window of time allows local authorities and other providers to consider whether they wish to acquire the property, helping to retain homes within the social housing sector. To help them in that initial assessment, the notice is required to provide certain basic information such as the address, the number of bedrooms and bathrooms and its estimated value. Earlier, I spoke to an amendment to include the category of rent in the sale notice, which we think is a reasonable and fair addition.

The clause is targeted and proportionate. It includes sensible exceptions such as sales to another registered provider, sales to the tenant and certain low-cost home ownership transactions. It is important to be clear that this is not a consent regime. The clause does not prevent disposals, does not restrict who a property may be sold to, and does not interfere with providers’ ability to make legitimate stock management decisions. It is a light touch and proportionate measure to improve transparency, embed consistent good practice across the sector—I have detailed some of the non-legislative means where we intend to work with the sector to go further— and support the Bill’s broader objective of safeguarding and sustaining social housing stock.

Amendment 4, in the name of the hon. Member for Taunton and Wellington, would introduce additional requirements for disposals in designated rural areas. I support the intention behind it: to ensure that a private registered provider and the relevant local authority discuss appropriate solutions to possible disposals of social housing in rural communities well before a disposal has taken place. I am not convinced, however, that the best way to achieve that outcome is by requiring annual reports on stock condition and a statutory consultation on options for the regeneration of social housing prior to disposal.

The provisions in the Bill will ensure that a local authority is aware of a potential disposal. I hope that that gives local authorities, particularly in rural areas, an opportunity to ensure that there is an effective dialogue before the disposal takes place. Requiring statutory consultations on the regeneration of social housing would likely place significant time and administrative costs on both local authorities and private registered providers, and materially impact the ability of private registered providers to make the necessary commercial decisions required to manage their assets effectively and safely.

More broadly, through information published by the Regulator of Social Housing, local authorities can already access information about PRP-owned social housing stock within their local authority area, including information relating to whether stock meets the decent homes standard. An annual report on stock condition would be duplicative of the existing rigorous requirements. I am sympathetic to what lies behind the amendment, but I am not convinced that we need to legislate in this way to achieve our shared aim.

Lee Dillon Portrait Mr Dillon
- Hansard - - - Excerpts

I thank the Minister for that reply. I hope that local authorities and housing providers are listening to this debate, and understand that the Government expect them to work in a collaborative manner for the best outcome for social tenants. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 12, as amended, ordered to stand part of the Bill.

Clause 13

Review of shared ownership and staircasing

Question proposed, That the clause stand part of the Bill.

None Portrait The Chair
- Hansard -

With this it will be convenient to discuss the following:

New clause 41—Shared ownership strategy—

“(1) Within 12 months of the passing of this Act, the Secretary of State must publish and lay before Parliament a strategy for increasing opportunities for access to the shared ownership scheme.

(2) The strategy under this section must include proposals relating to—

(a) first-time buyers,

(b) key workers,

(c) housing association provision, and

(d) staircasing arrangements.

(3) For the purposes of this section, ‘staircasing’ means the practice of buying additional shares in a Shared Ownership home in order to increase overall equity.”

This new clause would require publication of a strategy for expanding shared ownership.

New clause 45—Model shared ownership agreement—

“(1) The Secretary of State must, within six months of the passing of this Act, publish a model shared ownership agreement.

(2) The model shared ownership agreement must include standard provisions relating to—

(a) rent reviews,

(b) staircasing,

(c) service charges,

(d) administrative fees,

(e) sales and resales, and

(f) capital improvements undertaken by shared owners.

(3) Registered providers must have regard to the model agreement when granting shared ownership leases.”

This probing new clause would require the publication of a standardised model shared ownership agreement.

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - -

Shared ownership is an important route into home ownership and has enabled hundreds of thousands of people to get on to the property ladder who otherwise would not have been able to do so. However, the Government are fully aware that shared owners continue to face serious difficulties relating to affordability, transparency, management, staircasing and resale challenges. Although some of these challenges affect leaseholders more widely—high and rising service charges are a good example—they can have a disproportionate impact on shared owners, given that the product is aimed at households on lower-to-middle incomes.

Yesterday, I tabled a written ministerial statement setting out the Government’s position on shared ownership and the action we are taking to improve the experience of shared owners. We are determined to ensure that shared ownership is fair, transparent and affordable across its life cycle. That is why we are taking forward a phased programme of targeted improvements. The first phase, which has been under way for some time, has focused on improving the customer experience and giving providers greater certainty, stability and confidence to deliver new shared ownership homes.

We have set clearer expectations for registered providers receiving funding through the social and affordable homes programme, including giving greater consideration to long-term customer affordability, increasing transparency and fairness around costs, and allowing customers to opt out of fees for optional services. We have also made it clear that fees charged to shared owners should not be used as a source of profit or to cross-subsidise other activity.

Work is now under way on the second phase of our improvement programme. This will include reducing barriers and costs associated with staircasing; exploring options to support resales; improving information and guidance for existing shared owners; and reviewing buy-backs as an exit route for those who either cannot afford to remain in or cannot sell their home. Alongside that, we will improve shared ownership data quality and collection, helping us to better understand the experience of shared owners over time and pressures such as long-term affordability.

Clause 13 would require a statutory review of shared ownership. I recognise the concerns that motivated the amendment in the other place—Lord Young has been a consistent and forceful champion for shared owners and I commend his work in doing so—but these are precisely the issues the Government are already focused on and will continue to progress through the improvement programme that is already under way.

As is set out in the written ministerial statement I made on Monday, we have done lots to date. There is more to come on those issues I identified. For that reason, we feel that a statutory review would duplicate that rather than deliver the practical improvements that shared owners need beyond the work that the Government are already undertaking. I urge the Committee to oppose the question that clause 13 stand part of the Bill.

Gareth Bacon Portrait Gareth Bacon
- Hansard - - - Excerpts

I rise to speak to new clauses 41 and 45, which are in my name. I was obviously aware that it is the Government’s intention to strike down clause 13 and remove it in its entirety from the Bill. I heard what the Minister just said about what the Government are doing at the moment. The Opposition are not convinced that the clause would require unnecessary duplication. What it would do is make sure that a review is actually done and published, so we disagree with the Government.

My noble Friends in the other place worked hard and successfully on a cross-party basis to bring shared ownership into the debate and into this Bill. Shared ownership issues have gone on for far too long and for far too many people it has been a logistical, legal and financial nightmare when it should have been their first and proudest step on to the housing ladder. This is an important national issue, and the commitments that my noble Friends made must not be stripped from the Bill. Indeed, we must build on them. That is why I tabled new clause 41, which would require publication of a strategy for expanding shared ownership. I call on the Minister to repair shared ownership, back first-time buyers and support this new clause.

New clause 45 asks the Secretary of State to publish a model of shared ownership agreement within six months of the Bill receiving Royal Assent. The Opposition believe this is a crucial development for the future of shared ownership. What should be a pathway towards owning a first home is for so many people, as I have just said, a logistical and legal labyrinth of rent reviews, service charges, admin fees and staircasing costs, which makes the dream of home ownership a nightmare. A model shared ownership agreement would provide a consistent framework with clear protections for buyers, and it would also require registered providers to have regard to it. Not only do I hope the Minister agrees with that, but I hope he will give assurances as we debate the new clauses, even if the Government choose not to support them.

--- Later in debate ---
Lewis Cocking Portrait Lewis Cocking (Broxbourne) (Con)
- Hansard - - - Excerpts

It is a pleasure to serve under your chairmanship, Mr Western. I have lived in a shared ownership home, so I thought it only right to support this part of the Bill. Usually on Bill Committees, I speak against and ask the Government to take something out of a Bill, rather than keep it in.

This is important. The Minister, on opening, summed up the issues that lots of constituents with shared ownership face right across the country. If the Government are already doing part of the review anyway, and if they are committed to that review, I do not see why it cannot stay part of the Bill. The cynic in me thinks that the only reason why the Government want to remove it from the Bill is so that they can change their mind and not actually do that review of shared ownership, which has been a long-standing feature of the housing market for a number of years. It is high time that we do a review.

The hon. Member for Uxbridge and South Ruislip spoke eloquently about the issues that his constituents face in some of the developments in his constituency. That is not too dissimilar from developments in my constituency. Staircasing has major issues, particularly if ownership is shared with a large social housing provider, such as one of those that operate all across the south-east and London. Residents who buy those shared-ownership homes feel that the social housing provider is unaccountable. They lack transparency on their fees, and I have heard some horrific stories about people buying into shared ownership and wanting to use that as a stepping stone to buy a house on the open market, but having to buy selling packs off the social housing provider at extortionate costs, or the provider not getting back to them and the sale of their property falling through.

New clauses 41 and 45 are trying to solve a number of issues in the Bill. If the Government are doing some of the work already and think that this review is needed, I urge them to keep it in the Bill. As I said, the cynic in me thinks that the Government want to leave it out so that a few months down the line they can say, “We’ve changed our mind. We’re not doing a review.” Do the Government really want a review of shared ownership and to listen to shared owners? The Minister outlined quite eloquently some of the issues that affect shared owners, such as leasehold and commonhold—we look forward to that Bill coming forward—but shared ownership does tend to fall through the cracks.

We have not spent enough time speaking about the issues that shared ownership tenants face, so I really urge the Government to change their mind. I was left with the impression on Second Reading that clause 13 would remain part of the Bill and that the Government would accept the amendments tabled in the other place. I hope that the Government can reflect and keep this clause as part of the Bill.

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - -

I thank hon. Members for their contributions. I said this in my opening remarks, but let me reinforce it: we absolutely appreciate that shared owners across the country face issues, but I do think that there is a regional element to this. From the feedback I receive, it seems to me that the experience of shared owners in London and other parts of the south are far more problematic than shared ownership in parts of the north, where it is quite a successful product and does not have the issues that are often confronted. Serious affordability, transparency, management, staircasing, and resale challenges are being experienced. I know that from my own postbag; I have lots of shared owners in my constituency.

I speak as someone who grew up with a single parent myself, but lots of shared owners are often single women who got a mortgage on the basis of an affordability calculation and have seen, within two or three years, service charges and other costs increase to the point that their home is no longer affordable and would not be counted as such on that affordability check. They are under real pressure. We recognise those pressures and I understand that any shared owners watching will see this clause as a sort of lifeline.

Notwithstanding the points made by the right hon. Member for Melton and Syston about the frequency with which Ministers in previous Conservative Administrations were cycled through, I think I am right in saying that if I make it to Thursday I will be the longest serving Housing Minister since 2010.

None Portrait Hon. Members
- Hansard -

Hear, hear!

Edward Argar Portrait Edward Argar
- Hansard - - - Excerpts

Don’t tempt fate!

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - -

We have better form on permanence of our policy and our ministerial certainty and stability. Notwithstanding the right hon. Member’s attempts to beguile and flatter me, I cannot accept the new clauses, for two reasons. I will take them in turn, but essentially I do not think that either is proportionate or necessary.

New clause 45 would require the Secretary of State to publish a model shared ownership agreement, but model shared ownership leases are already available, and they contain the fundamental clauses governing how shared ownership operates—including many of the matters raised by the right hon. Gentleman. Providers delivering grant-funded shared ownership are required to use leases containing these clauses and comply with wider grant funding requirements.

To give Members a sense that we are thinking about these things, part of the reason that I made the written ministerial statement on Monday was because we have done a huge amount of work in this area, but we have never brought it together into one place in the context of a wider improvement programme. The fault for that is on me and I throw my hands up, but a lot of work has already been done, and a lot of work is to come.

Tackling specific issues, we know that shared owners who want to staircase can face barriers such as transaction costs, a lack of information, rising property values and wider affordability pressures. HomeOwners Alliance estimates typical transaction costs of around £2,000—that was two years ago, in 2024. In the WMS, we have committed to considering measures to reduce existing barriers to staircasing, such as those up-front and ongoing transaction costs.

The issue of buy-backs arose in the context of the Renters’ Rights Act 2025, again from Lord Young pressing the case for shared owners. I am absolutely and acutely aware that buy-backs can be a lifeline for shared owners who, through no fault of their own, find themselves unable either to afford to remain in their home or to sell it, whether due to building safety defects, high service charges or lease-related restrictions. Again, we have committed and made clear in the WMS that we are intent on undertaking a comprehensive review of the functioning of buy-backs, to better understand practical barriers and solutions, and to look at specific issues such as the current use of recycled capital funding grants. That work is under way.

It is also worth saying that lots of the problems that affect shared owners go beyond them to affect other leaseholders. The actions we are taking in several areas will benefit shared owners along with other long residential leaseholders.

A good case is the standardisation and transparency measures that we are introducing in respect of service charges using powers in the previous Government’s Leasehold and Freehold Reform Act 2024. We will lay those statutory instruments in the very near future, so hon. Members can look forward to that. Shared owners who are experiencing those high and rising service charges will benefit from those provisions.

The right hon. Member for Melton and Syston got to the point of the substantive matter at hand, which he framed as an “extra opportunity”. If he can put his ministerial hat on from when he stood here for many years, I gently ask him whether it is reasonable and proportionate to require, through a Social Housing Bill, a statutory review of shared ownership, given all that the Government are doing. Is it really proportionate to require a statutory review just to give that extra opportunity?

We already consult the Shared Owners’ Network and other representative groups. If hon. Members are telling me that we can do more, I am happy to work with them to get shared owners and their experiences into the Government’s thinking so that they are better reflected. If there is more that we can do to improve the improvement programme that is already under way, I am more than happy to hear about that, but it is a little stretching to say that it is absolutely essential just for, to quote the right hon. Member for Melton and Syston, that “little extra opportunity” to cover those issues. We are looking at issues in the round. We are considering the comprehensive set of challenges that shared owners face.

Edward Argar Portrait Edward Argar
- Hansard - - - Excerpts

On that basis, is the Minister prepared to commit—whether explicitly in the Bill or not—to the Government’s launching a formal review of this?

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - -

In some ways, it is pure semantics. We have a comprehensive improvement programme under way. If the right hon. Member looks at my written ministerial statement from yesterday, he will see the work that we have already undertaken: material changes, including to the social and affordable homes programme, where we are setting firmer expectations for providers that receive grant funding. A lot of work is already under way. Whether the right hon. Member calls it a review or an improvement programme, shared owners across the country will rightly focus not on what we term the work that is under way, but on the benefits they see coming out of that work. They can already see some of those in the expectations that we have set, but there will be more to follow.

Lewis Cocking Portrait Lewis Cocking
- Hansard - - - Excerpts

To draw out the point a little further, will the Minister commit to making an oral statement on the Floor of the House in the near future so that Members from across the House can ask questions and he can update us on what he is doing about shared ownership and improvements to shared ownership?

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - -

My Whip whispers in my ear that that is a matter for Mr Speaker. The hon. Member and any other Member of the Opposition can secure a Westminster Hall debate or an Adjournment debate on this subject. I am more than willing to debate shared ownership or any other housing matter.

Lewis Cocking Portrait Lewis Cocking
- Hansard - - - Excerpts

Will the Minister make a statement?

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - -

I have made a written ministerial statement that sets out the Government’s work in this area.

Taken together, the existing framework of model leases and guidance, alongside the substantive programme of improvements that is already under way, address the issues at the heart of both new clauses. We continue to have constructive engagement with Lord Young and others in the other place who have concerns about this issue, but we do not believe that a further statutory model agreement or a separate statutory strategy is necessary. I therefore ask the shadow Minister not to press new clauses 41 and 45.

Question put, That the clause stand part of the Bill.

--- Later in debate ---
None Portrait The Chair
- Hansard -

With this it will be convenient to discuss the following:

Government amendments 22 to 25, 46, 47, 26, 29, 27, 28, 30, 31, 48 to 57, 32, 58, 33, 59, 34, 60, 35, 61, 36 to 42, 62 to 65, 43, 44, 66 to 72, 45 and 73.

Amendment 12, in schedule 1, page 34, line 27, at end insert—

“3A In section 160ZA of the Housing Act 1996 (allocation only to eligible and qualifying persons: England), after subsection (11) insert—

‘(12) In deciding what classes of persons are not qualifying persons under subsection (7), a local housing authority must disregard housing-related debt or any other priority debt that was accrued, either by an applicant for housing accommodation or by a member of their household, where that debt was accrued in connection with domestic abuse.

(13) For the purposes of subsection (12), “domestic abuse” has the meaning given by section 1 of the Domestic Abuse Act 2021.’

3B In section 166A of the Housing Act 1996 (allocation in accordance with allocation scheme: England), after subsection (14) insert—

‘(15) A local housing authority in England must, in preparing or modifying their allocation scheme, disregard housing-related debt or any other priority debt that was accrued, either by an applicant for housing accommodation, or by a member of their household, where that debt was accrued in connection with domestic abuse.

(16) For the purposes of subsection (15), “domestic abuse” has the meaning given by section 1 of the Domestic Abuse Act 2021.’”

This amendment is intended to ensure that people in England who have incurred housing-related or other priority debt, for example rent arrears, as the result of domestic financial abuse are not prevented from bidding for social housing.

Schedule 1.

New clause 30—Domestic abuse protections: implementation review—

“(1) Within the period of 12 months beginning with the day on which section 14 and Schedule 1 (Protection for victims of domestic abuse) come into force, the Secretary of State must publish and lay before Parliament a review of the effectiveness of those provisions at protecting victims of domestic abuse who hold social housing tenancies.

(2) The review under this section must include an assessment of—

(a) the effectiveness of the courts and relevant agencies at identifying when incidents of domestic abuse have occurred within social housing dwellings; and

(b) the ability of local authorities and other relevant agencies to identify previous victims and perpetrators of domestic abuse when allocating social housing tenancies.”

This new clause would require the Government to assess the effectiveness of the provisions on protecting domestic abuse victims.

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - -

Clause 14 and its associated schedule 1 will address a clear legal gap in respect of social housing tenancies, namely that existing legislation provides scant protection for social housing tenants who are victims of domestic abuse and who wish to remain in their current home without their abuser. Landlords can evict perpetrators but only in cases where the victim has already left. That means that, all too often, victims are forced to choose between staying in danger and losing their home. As I argued on Second Reading, that is an utterly unacceptable state of affairs; taken together, the clause and schedule will end it.

Schedule 1 will introduce stronger powers for landlords to enable them to take possession of a property where domestic abuse has taken place without the requirement for the victim to leave. It also strengthens protections to help victims remain safely in their homes where possible or move to suitable alternative accommodation where necessary. These measures form part of the Government’s wider commitment to tackle violence against women and girls, ensuring that the housing system supports, rather than frustrates, a victim’s route to safety and recovery. The new mandatory grounds in the schedule seek to provide a clear framework by which courts must grant possession if the threshold has been met. Crucially, under the discretionary grounds in the schedule, the court must take into account the opinion of the victim before making the decision, helping to ensure that victims remain at the centre of the process.

A key focus of the measures is providing certainty in cases of joint tenancies. The schedule ensures that, if conditions are met for joint tenancies, the court will transfer the perpetrator’s interest in the joint tenancy so that the victim becomes the sole tenant. Where it is not appropriate for a victim to remain in their current home, the Bill allows a court to order suitable alternative social housing where the landlord has such accommodation available. The court must, as far as possible, take into account the victim’s views when considering the suitability of alternative accommodation. If a landlord cannot satisfy the court that a suitable home will be available, the victim will not be forced to move under these provisions.

Clause 14 and schedule 1 provide that the new measures will apply where the victim and perpetrator are personally connected and the victim currently lives in the property or has left due to domestic abuse. The measures critically remove the requirement for the victim to have fled the property before possession action can be taken. They also protect victims of modern slavery where the victim and perpetrator are personally connected and the other conditions in the Bill are met.

We will continue to work with the Independent Anti-Slavery Commissioner, the Home Office and the wider sector to ensure effective implementation. It would be remiss of me not to say that our work with the Ministry of Justice and the Home Office has been, in my view, an exemplar of cross-departmental working to resolve a pressing issue. In aligning with the definition of domestic abuse under the Domestic Abuse Act 2021, the measures also cover a broader range of conduct. They protect those most at risk who currently live, or previously lived, in a property with a perpetrator, while remaining clear and workable in practice.

Government amendments 22 to 73 address concerns raised in the other place about the evidence needed to use the discretionary grounds in domestic abuse cases. We have listened carefully to those concerns and we have acted. The amendments strengthen the discretionary domestic abuse grounds by ensuring that the existence of a relevant protective order is sufficient to satisfy the first stage of the ground ahead of the court’s determining whether it is reasonable to grant possession.

Where either a non-molestation order or a domestic abuse protection order is in force against a perpetrator, landlords may rely on it as evidence for the courts to then progress to consider whether it is reasonable to grant possession. That removes the need to separately establish whether domestic abuse has taken place where an order is in place, making it easier for social landlords to take possession action where a court has already made an order protecting the victim. An order will be disregarded if an appeal remains unresolved or results in the order being overturned.

The amendments do not make possession automatic. The courts will still need to consider whether it is reasonable to make a possession order, retaining judicial oversight through the existing reasonableness test. The amendments will simplify the process and give greater confidence to landlords and victims when seeking possession.

The amendments also make technical and consequential changes to the domestic abuse provisions in schedule 1. They align the terminology used in the Bill with the definition of domestic abuse in section 1 of the Domestic Abuse Act 2021, make consequential changes and align wording across equivalent provisions in the Bill and, finally, clarify how the tenancy transfer and possession provisions operate.

The amendments will ensure that, where the conditions for making a possession order on the basis of suitable alternative accommodation apply, the transfer of tenancy provision will also operate. The effect is that the perpetrator tenant’s interest is severed in all cases where the ground for possession is met and the court is satisfied that an order should be made. That will help deliver more consistent outcomes for victims in joint tenancy cases.

Taken together, the amendments improve the clarity and consistency of schedule 1 and ensure that the domestic abuse provisions operate as intended. I commend clause 14, schedule 1 and the Government amendments to the Committee.

Lee Dillon Portrait Mr Dillon
- Hansard - - - Excerpts

I will speak to amendment 12, tabled by my hon. Friend the Member for Taunton and Wellington. The amendment looks at the impact of rent arrears on a victim of domestic abuse and quite simply asks that that not be a consideration when bidding for a future social home.

While on my feet, I will also talk about clause 14 in its totality. We Liberal Democrats welcome the amendments that the Government have tabled on domestic abuse, but will the Minister outline why the Government use only discretionary powers rather than mandatory powers, such as ground 7A, which is mandatory for antisocial behaviour?

Edward Argar Portrait Edward Argar
- Hansard - - - Excerpts

I will speak briefly to this grouping, simply to reiterate what the shadow Minister, my hon. Friend the Member for Orpington, has just said. In a Bill of this sort, there is inevitably much that we will to-and-fro across this Committee about and disagree on. However, throughout my time as Victims Minister, and under the new Government now, there has been significant consensus about a shared desire, on both sides of the House, to make progress in supporting victims of domestic violence and domestic abuse. I therefore just reiterate my hon. Friend’s and my party’s support for what the Minister seeks to do here. There is genuinely a high degree of consensus on this group; we want to move forward and make that difference.

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - -

I thank the hon. Member for Newbury, the shadow Minister and the right hon. Member for Melton and Syston—I never know whether I am pronouncing that entirely correctly—

Edward Argar Portrait Edward Argar
- Hansard - - - Excerpts

The Minister pronounces it immaculately.

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - -

I welcome the cross-party support for the intent behind these provisions and their effect. In some ways, I would go so far as to say that they are groundbreaking in what we have tried to achieve. As I said, there has also been very effective cross-departmental working.

On the specific point that the hon. Member for Newbury raised, there are mandatory grounds for possession in the Bill, but they apply only when a breach of a relevant order has taken place. The changes we have made to the discretionary possession grounds are to allow for the existence of an order to be relevant grounds for the court, rather than a breach having to take place. However, there are mandatory grounds in place. I am happy to set that out in more detail for the hon. Member, in writing, if he is interested. I know that he takes a keen interest in these matters.

I will turn to the two non-Government amendments that have been tabled, starting with amendment 12. This issue, and a version of the amendment, was raised in the other place by Baroness Neate. I would like to give the Committee the same reassurances that we gave the noble Baroness, and that she accepted, in debates in the other place.

First, the Government agree, as I think we all would, with the principle that survivors of domestic abuse should not face unfair barriers to social housing because of debt arising from that abuse. That is why, in the national plan to end homelessness, we committed to addressing the barriers faced by survivors of domestic abuse with debt when applying for social housing through our update to the statutory guidance on social housing allocations.

We continue to believe that primary legislation is not the right approach in this area. There are sensitive and inherently complex cases at play here, and the amendment would introduce a rigid rule that would not allow local authorities to take proper account of individual circumstances. Updated statutory guidance will allow us to set clear national expectations while preserving the flexibility needed to reach fair and sustainable decisions in individual cases. Work is already under way to review the guidance, and we will consult on the updated guidance early next year.

We continue to believe that guidance is the best route to resolving this issue, as I made clear on Second Reading—I think my hon. Friends the Members for Uxbridge and South Ruislip and for Birmingham Yardley (Jess Phillips) pressed me on that. I am happy to reiterate that if guidance proves insufficient, we have the option of making regulations to amend the relevant legislation. The Government’s position has not changed. We support the objective of removing unfair barriers for survivors, but believe that updated statutory guidance, backed by existing regulation-making powers, if necessary, is the more proportionate and effective route.

Danny Beales Portrait Danny Beales
- Hansard - - - Excerpts

I thank the Minister for referencing our previous debate on this topic. I welcome the Government’s action in developing guidance. I have seen worrying cases in my constituency of rent arrears being a barrier to victims of domestic violence getting a tenancy. There is concern that, even though rules have already been changed about local connection tests, they may not always be applied effectively, and local connection tests may still be used as a route to block victims of domestic violence. I welcome the development of guidance, but will the Minister commit to collecting evidence about the effectiveness of the guidance and whether further measures might be needed?

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - -

We will absolutely keep the effectiveness of that guidance under review. I reiterate the commitment I have made, which I have tried to put as plainly as possible: if that guidance is not effective, we will introduce regulations to ensure that we resolve the issue. However, we believe that there is a high chance that the guidance will be successful in achieving the outcomes we want. That is our preferred route in the near term, but I am determined to ensure that the issue is addressed. The Baroness accepted the commitments we made in the other place, and those regulations are available if we require them.

Turning to new clause 30, the Department already collects data through CORE— continuous recording of lettings and sales in social housing—on how many new tenancies were given to victims who left their previous tenancy because of domestic abuse, which provides an important baseline for monitoring outcomes as the reforms are implemented. The Ministry of Justice also publishes quarterly statistics on landlord possession proceedings in the county courts of England and Wales. Those cover claims, possession orders, warrants and repossessions, including for social landlords. We will work with the Ministry of Justice, social landlords and the domestic abuse sector on implementation—the hon. Member for Orpington would expect nothing less. That includes developing clear guidance so that landlords know how and when to use the measures and how to support victims.

The new clause would also require an assessment of how courts and other organisations identify domestic abuse. On 5 October, the Government launched the judicial finding of domestic abuse, a significant step forward in improving the identification and management of domestic abuse offenders across the criminal justice system. As part of sentencing, judges will be required to make a judicial finding of domestic abuse in open court where the evidence supports such a finding as defined by the Domestic Abuse Act 2021. That will provide a formal record where an offence involves domestic abuse. Those findings will be recorded in court records and shared with police and probation. The judicial finding will enable police, courts, prisons and probation services to recognise domestic abuse offenders and respond to the risks they pose more effectively.

Subsection (2)(b) of the new clause extends beyond the purpose of these measures. The Bill does not alter the way local authorities identify previous victims or perpetrators when allocating new social housing tenancies. That is a matter for local authorities to determine when assessing need and priority for an allocation of social housing.

The measures that the Government have put forward in this part of the Bill will help ensure that our reforms can operate effectively. The Government amendments provide the necessary technical changes to support the operation of the provisions and ensure that the legislation works as intended. I welcome the cross-party support for the measures and ask the Committee to support Government amendments 22 to 73.

Question put and agreed to.

Clause 14 accordingly ordered to stand part of the Bill.

Schedule 1

Protection for victims of domestic abuse

--- Later in debate ---
None Portrait The Chair
- Hansard -

With this, it will be convenient to discuss the following:

Government amendment 74.

Schedule 2.

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - -

Clause 15 introduces schedule 2, which gives the Secretary of State the power to create one new general consent and removes the need to obtain the Secretary of State’s consent for certain transactions altogether. There are a range of circumstances in which local authorities must obtain the Secretary of State’s consent to undertake certain actions relating to their social homes, including how they account for them and when and how they can dispose of them. Some of the consents also apply to private individuals who own property that was once owned as social housing by a council or a new town corporation.

The first measure gives the Secretary of State the power to issue a general consent to non-housing assets—for example, shops or recreation grounds—that are being accounted for in the housing revenue account in accordance with part II of the Housing Act 1985. That will enable the Secretary of State to permit all such accounting practices when they meet certain criteria. That will remove one obstacle from the process of planning new council developments. It will also make it easier for councils to include these additional premises in their developments, supporting the creation of thriving, liveable communities.

The second measure streamlines the process by which local authorities can serve demolition notices, when homes are due to be demolished, that suspend or end tenants’ right to buy. Under schedules 5 and 5A to the 1985 Act, initial demolition notices can be issued for up to seven years, and final demolition notices, which can be issued once the local authority has acquired all the relevant properties for demolition or entered into binding agreements to acquire them, for up to two years. The provision removes the requirement for the Secretary of State’s consent when local authorities need to serve further interim or final demolition notices if demolition cannot be completed during the time of the original notice, and it sets out requirements that local authorities must follow when serving further interim or final demolition notices. Those changes will help local authorities to manage redevelopment schemes more efficiently while still requiring them to follow clear statutory conditions.

Finally, the measure amends or repeals provisions in a number of Acts that require the Secretary of State’s consent for the onward sale of homes that have previously been owned by a local housing authority or new town corporation, even if those homes are already in the private market. The changes do not have effect in Wales, where the previous regime will continue. The changes will take away a completely unnecessary brake on these housing transactions in the private market. There is no longer any rationale for these now private homes to be subject to the Secretary of State’s consent, and consent is never in practice denied. All the changes are part of a suite of measures planned by the Government to simplify and streamline the council housing consent system in England and to empower local authorities who know their communities best.

Government amendment 74 makes minor and consequential amendments to schedule 2. Paragraph 1(3) of the schedule omits section 171D(2) of the Housing Act 1985. That subsection currently requires the Secretary of State’s consent for certain onward disposal of homes already sold under the right to buy. As a consequence of that omission, references elsewhere in the Housing Act 1985 to consent under section 171D(2) are no longer required. Amendment 74 removes those redundant references, ensuring that the legislation will operate coherently once the requirement for consent is removed. The amendment does not make any further substantive change to policy; it simply makes necessary consequential amendments to give full effect to paragraph 1(3) of schedule 2.

I commend clause 15 and schedule 2 to the Committee, and ask the Committee to support Government amendment 74.

Question put and agreed to.

Clause 15 ordered to stand part of the Bill.

Schedule 2

Social housing: consent requirements

Amendment made: 74, in schedule 2, page 37, line 22, at end insert—

“1A ‘(1) Schedule 9A (land registration and related matters where right to buy preserved) is amended as follows.

(2) In paragraph 4 (entries on register protecting preserved right to buy), in sub-paragraph (2), omit paragraph (b) and the ‘and’ preceding it.

(3) In paragraph 5 (change of qualifying dwelling-house), in sub-paragraph (2), omit paragraph (b) and the ‘and’ preceding it.”—(Matthew Pennycook.)

Section 171D(2) of the Housing Act 1985 is omitted by paragraph 1(3) of Schedule 2 to the Bill. This contains amendments that are consequential on that omission.

Schedule 2, as amended, agreed to.

Clause 16 

Vacant higher value local authority housing

Question proposed, That the clause stand part of the Bill.

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - -

It is essential that local housing authorities have the flexibility to manage their stock in the way that best enables them to meet the needs of their local communities. Clause 16 therefore removes provisions in the Housing and Planning Act 2016 that would have forced councils to sell their highest-value council homes whenever they became vacant. I say, “would have forced” because these provisions were never implemented by previous Governments. Even so, the presence of the provision on the statute book has a negative effect on local authorities’ spending plans, since they could not be certain of the income streams from these properties, which typically earn higher than average rents and are cheaper to maintain.

The policy was intended—I recall this because, as a relatively new Member, I sat on the Committee that considered the Bill that became the 2016 Act—to raise capital to supply new social homes, but it would ultimately have led to a net loss of social homes. Furthermore, when the 2016 Act was passed, a major aim of the policy was to help to fund the extension of the right to buy to housing associations. This Government have made it clear that they do not intend to take that extension forward. The last Conservative Government chose never to implement the measures due to the negative impact that they would have had on local authorities, and we are now going one step further by repealing the provisions altogether. I commend the clause to the Committee.

Question put and agreed to.

Clause 16 ordered to stand part of the Bill.

Clause 17

Secure tenancies, introductory tenancies and demoted tenancies

Question proposed, That the clause stand part of the Bill.

None Portrait The Chair
- Hansard -

With this it will be convenient to discuss the following:

Clause stand part.

Government amendments 75 to 77.

Schedule 3.

New clause 40—Fixed-term tenancies for social housing—

“Nothing in this Act prevents a local housing authority or registered provider from granting a fixed-term tenancy for social housing in accordance with existing enactments.”

This new clause would preserve local authority discretion to use fixed-term tenancies for social housing.

New clause 58—Review of lifetime secure tenancies—

“(1) A local housing authority must review each lifetime secure tenancy at intervals of no more than five years.

(2) A review under subsection (1) must consider—

(a) whether the tenant continues to require the accommodation having regard to their housing needs,

(b) whether the accommodation remains suitable having regard to the size and composition of the tenant’s household,

(c) whether the tenant has developed a local connection with another local housing authority area,

(d) whether the tenant requires support to move to more suitable accommodation, and

(e) such other matters as may be prescribed by regulations made by the Secretary of State.

(3) Following a review under this section, the local housing authority may—

(a) confirm the continuation of the tenancy,

(b) offer alternative suitable accommodation, or

(c) take such other action as may be provided for by regulations.

(4) The Secretary of State must issue guidance to local housing authorities on the conduct of reviews under this section.

(5) Local housing authorities must have regard to guidance issued under subsection

(6) A statutory instrument containing regulations under this section may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.”

This new clause requires local housing authorities to review lifetime secure tenancies every five years to ensure that social housing continues to meet tenants’ needs and that existing stock is being used effectively.

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - -

Clause 17 introduces schedule 3, which will repeal uncommenced provisions of the Housing and Planning Act 2016 that would have phased out lifetime secure tenancies and required new social housing tenants to be given fixed-term secure tenancies instead. As with the provisions that we have just debated, the rules were never brought into force and would have reduced security for tenants. Indeed, the inclusion of the fixed-term provisions in the 2016 Act received strong objections throughout the Bill’s passage.

The Government support the use of lifetime tenancies because they provide stability and security for households, and help people to put down roots in their communities. Security of tenure matters, particularly for families, older residents, disabled people and others for whom a settled home is the foundation of wider wellbeing and opportunity. That was the rationale for the changes we recently implemented through the Renters’ Rights Act 2025.

Although we promote the use of lifetime tenancies, the Government expect landlords to make the best and most effective use of their homes to meet housing need. Landlords can support tenants to downsize, transfer or mutually exchange their homes if their circumstances change. That helps people to move to properties that are better suited to them and ensures that social housing is used in the fairest way possible.

Retaining the option for landlords to grant fixed-term tenancies is an important tool that allows councils to respond to specific circumstances, such as supporting time-limited resettlement schemes. The schedule also retains the existing approach to succession by reinserting the relevant provisions from the 2016 Act, ensuring that there are no substantial changes to how succession works in practice.

The repeal of the uncommenced provisions will provide greater certainty to tenants and landlords, and ensure that the law continues to work properly after they are removed. The previous Government confirmed in their 2018 social housing Green Paper, after listening to residents’ concerns, that they had no intention of implementing those provisions. Once again, this Government are going a step further and repealing them from the statute book.

Government amendments 75 to 77 make minor and technical changes to the succession provisions in schedule 3. Amendment 77 corrects the provision dealing with demoted tenancies so that it refers only to changes that apply to those tenancies. References to provisions that apply only to introductory tenancies are removed, as those cases are already covered separately. Amendments 75 and 76 make it clear that the sections 143H and 143J to which the provisions refer are sections of the Housing Act 1996. The amendments do not change policy or tenants’ rights; they simply clarify the Bill’s wording and make sure that references are correct and in order. I commend clause 17 and Government amendments 75 to 77 to the Committee.

Gareth Bacon Portrait Gareth Bacon
- Hansard - - - Excerpts

I rise to speak to new clauses 40 and 58, which I tabled.

Social housing is not a one-size-fits-all, and new clause 40 would protect the invaluable and expert knowledge of local authorities by giving them a greater say over the type of tenancy that they can offer to local people. That would preserve local authorities’ discretion to use fixed-term tenancies for social housing. Used appropriately, fixed-term tenancies allow a landlord to review a household’s circumstances at the end of a term and make sure that the home can be put to best use for those who need it most. They allow for the flexibility necessary to ensure that when a tenant’s situation has improved, a home can be made available for local people with the greatest need. The new clause is about empowering local authorities and delivering an efficient social housing system—two things that the Bill fails to do in many ways. Importantly, it imposes nothing and takes nothing away. It protects local knowledge, expertise and discretion.

Social housing exists for the express purpose of providing those who are most in need with not just shelter, but a place to call home. In a system under severe financial strain and lacking in adequate supply, it is essential that social homes are allocated to those in genuine need who are at the most severe risk, not just those who once needed them but no longer do. That is why we have tabled new clause 58, which would require local housing authorities to review lifetime secure tenancies every five years to ensure that social housing continues to meet tenants’ needs. It would also ensure that existing stock is used as effectively as possible. With 1.34 million people on the waiting list, a record number of people sleeping rough and a staggering 178,000 children in temporary accommodation, not a single social home can afford to be filled by somebody who could reasonably afford market rent or buy their own property.

--- Later in debate ---
Gareth Bacon Portrait Gareth Bacon
- Hansard - - - Excerpts

As I said earlier, the Bill will not add a single social home to this country’s current tally. If social housing was in abundant supply, I would agree with the hon. Gentleman, but it is not. It is a scarce resource and the important thing that we are trying to make clear is about how we use that scarce resource.

Right to buy generates receipts that can be reinvested in building more social housing. Given that the overwhelming majority of people living in social housing are in lifetime tenancies, regardless of their circumstance, that housing is not available to people on the waiting list. It is already occupied and nobody is saying that that should change. So, it is not the case that right to buy causes a depletion of available social housing stock— it simply does not.

New clause 58 is not an eviction notice. It would not grant new powers to remove people from their homes. It is a common-sense move to assess how best to ensure that scarce resources are used for those who need a home most.

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - -

Let me start with new clause 40, which seeks to clarify that social landlords can continue to grant fixed-term tenancies.

Fixed-term tenancies will no longer be available within the assured tenancy framework once the relevant Renters’ Rights Act 2025 reforms take effect. I therefore understand that the proposal is aimed principally at ensuring that local housing authorities and other secure tenancy landlords can continue to grant fixed-term tenancies when appropriate.

I want to be clear that the new clause is not needed. Nothing in the Bill prevents secure-tenancy landlords from granting fixed-term tenancies. As I have said, the Bill repeals uncommenced provisions in the Housing and Planning Act 2016, which would have required most new secure tenancies to be fixed-term tenancies. As we have just debated, those provisions were never brought into force and we are now removing them in order to provide clarity. Secure-tenancy landlords will still be able to offer fixed-term tenancies where they consider it appropriate to do so; as I have said, the Bill does not change that. The proposed measures risk repeating what is already the case in law for secure-tenancy landlords and would create confusion by suggesting that the Bill removes flexibility in this area when it does not. For those reasons, I ask the shadow Minister not to press new clause 40.

New clause 58 would require local housing authorities to review lifetime secure tenancies every five years. I made it clear when speaking to clause 17 that the Government support the use of lifetime tenancies because they provide stability and security for households and help people to put down roots in their communities. That is precisely why we are repealing uncommenced provisions in the 2016 Act that would have phased out lifetime secure tenancies in favour of mandatory fixed-term tenancies.

We expect local authorities and other social landlords to make the best and most effective use of their stock to meet housing need. However, we do not believe that a statutory requirement for local authorities to review every secure tenancy once every five years would be an appropriate way to support them in doing so, given the administrative burden that that would entail. We also believe that it would have detrimental impacts on tenants and communities. Those are some of the reasons why the previous Government did not commence the provisions they had legislated for in the 2016 Act.

Patrick Spencer Portrait Patrick Spencer (Central Suffolk and North Ipswich) (Con)
- Hansard - - - Excerpts

I am losing track of the narrative in this debate. The Government do not want to sell the unit to the tenant, but that means they will forgo all the long-term health, economic, social and community benefits of home ownership. At the same time, you want to lock them into lifelong tenancies, which would take their house out of action and reduce its availability to other households that are more in need. Perhaps I have misunderstood the Bill, but that is the narrative that I understand the Government are setting out. Can the Minister confirm that for me?

Patrick Spencer Portrait Patrick Spencer
- Hansard - - - Excerpts

I apologise, Mr Western.

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - -

I fear that the hon. Gentleman does misunderstand the Bill in a number of respects. First, we are not abolishing or phasing out the right to buy. As I have persistently made clear, we want to ensure that the right to buy is available for long-standing tenants who have lived in—[Interruption.] The hon. Gentleman can intervene once I have answered his first question. I refer to those tenants who have lived in and paid rent on their homes for many years.

I have already made it clear in a previous debate that landlords can already consider the changing needs of tenants through a variety of methods, ranging from tenant surveys to direct engagement. They can already support tenants to downsize, to transfer or to mutually exchange their home if their circumstances change. The new clause would mandate, through primary legislation, a review of every secure tenancy once every five years. I simply put it to the hon. Gentleman—this picks up on the precise reason why the previous Conservative Government did not bring into force the provisions in their own 2016 Act—that that would entail huge administrative burdens for local authorities. We think, because we believe in the principle of secure tenancies in social housing—in terms of the benefits for tenants and for communities more widely—that we should not impose such a statutory review every five years. I am struggling to see how that is incompatible with trying to place the right-to-buy scheme on a fairer and more sustainable footing.

The Government are reviewing how effectively social housing providers are using their stock. That work is considering issues such as under-occupation, overcrowding and how landlords are supporting tenant movement. We will set out findings from that review and the next steps in due course. We think social landlords can, in some instances, make better and more effective use of their stock. That does not necessarily require, as a means to support them to do so, a statutory requirement to review every secure tenancy every five years.

John Slinger Portrait John Slinger (Rugby) (Lab)
- Hansard - - - Excerpts

Regarding social landlords reassessing the use of their stock, does the Minister agree that there needs to be more focus on the needs of disabled members of our community? My constituent Keeley Callan came to see me on Friday. She is disabled, and I would argue she is actually disabled by the social housing system because she has been waiting for at least five years to move into her own accommodation. That is totally unacceptable, given her equal rights to housing in law. Will the Minister briefly reflect on that as he sums up?

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - -

I am sorry to hear about that case; if my hon. Friend wants to write to me with further details, I am more than happy to look into it. I would make two points: local authorities are best placed to decide the types of social homes their communities need and to plan for them appropriately. Local authorities also have a statutory duty to promote adaptations for disabled people in all housing tenures, subject to a needs assessment, and the Government provide the disabled facilities grant to support them. I am happy to write to my hon. Friend with more details about the support that should be in place and the expectations that the Government have in respect of local authorities. If he wants to write to me, I am more than happy to come back to him on the particular points that might arise from the case he has mentioned.

We cannot accept new clause 58 and I have already spoken to new clause 40, tabled by the shadow Minister. I ask the Committee to support Government amendments 75 to 77 and I commend clause 17 to the Committee.

Question put and agreed to.

Clause 17 accordingly ordered to stand part of the Bill.

Schedule 3

Secure, introductory and demoted tenancies: uncommenced legislation etc

Amendments made: 75, in schedule 3, page 41, line 1, after “143H” insert

“of the Housing Act 1996”.

This would clarify that this sub-paragraph amends the Housing Act 1996.

Amendment 76, in schedule 3, page 42, line 5, after “143J” insert

“of the Housing Act 1996”.

This would clarify that this sub-paragraph amends the Housing Act 1996.

Amendment 77, in schedule 3, page 42, line 23, leave out “to (10)” and insert

“, (9) and (10)(c) and (d)”.—(Matthew Pennycook.)

This would clarify that only sub-paragraph 10(c) and (d) are relevant to sub-paragraph (13). Sub-paragraph 10(a) and (b) concern introductory, rather than demoted, tenancies.

Schedule 3, as amended, agreed to.

Clause 18

Rents for high income social tenants

Question proposed, That the clause stand part of the Bill.

None Portrait The Chair
- Hansard -

With this it will be convenient to discuss new clause 42—Review of income eligibility for social housing—

“(1) Within two years of the passing of this Act and every five years thereafter, the Secretary of State must review income eligibility thresholds for social housing.

(2) A review under subsection (1) must include consideration of the following trends over the previous five years—

(a) household earnings,

(b) regional housing costs,

(c) housing affordability, and

(d) levels of demand for social housing.

(3) The Secretary of State must publish the findings of each review and lay them before Parliament.”

This new clause would require regular reviews of income eligibility thresholds for social housing.

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - -

Clause 18 will repeal unimplemented provisions that would have required councils to charge higher rents to higher-income social tenants. We are now removing them to provide certainty and clean up the statute book. The provisions, as with others we have debated this afternoon, were never implemented. Once again, I note that the original provisions in the Housing and Planning Act 2016 received strong objections during the passage of that legislation.

A mandatory pay-to-stay scheme would be difficult and costly to administer. Indeed, the previous Government, despite legislating for this policy, chose not to commence it on the explicit basis that the costs outweighed the benefits. Income alone is also not the only determinant of who is allocated social housing. Some households may have additional needs or circumstances which mean that social housing remains the only viable or appropriate option for them. That can be the case even where their income may be somewhat higher than others on the waiting list.

Social housing is targeted at those who need it most, but some tenants’ incomes may rise over time. Our focus is on keeping rents affordable and supporting all social tenants, not penalising tenants for improving their circumstances. As we debated in the previous group, landlords can encourage tenants to move if their circumstances change. Where tenants want to move or downsize, we expect landlords to support them to do so through transfers or mutual exchanges, which helps people move to properties that are better suited to them, and helps to ensure that social housing is used in the fairest way possible. Where councils and private registered providers choose, they can run voluntary pay-to-stay schemes, which allows landlords to decide whether a scheme is suitable for their area.

Councils can also consider an applicant’s income and financial circumstances when deciding whether they qualify for social housing and what priority they should receive. Households with higher incomes may be given less priority, or may not qualify at all. However, councils will also consider whether the household has other needs, as I have referenced, which can mean that social housing is still the right option for them.

Repealing these measures provides a fairer and more workable approach. This change will help keep rents affordable for social tenants, especially those on lower and middle incomes, avoid disincentives to work and mean that tenants are not incentivised to reduce their working hours to avoid higher rent. I commend clause 18 to the Committee.

Gareth Bacon Portrait Gareth Bacon
- Hansard - - - Excerpts

I rise to speak to new clause 42. If the Bill fails to build any new social housing, which we know it will, it could at the very least ensure that stock is allocated to those most in need. We believe that one of the fairest and most suitable ways to do so is to review the income eligibility thresholds for social housing. At present, up-to-date figures from the English housing survey suggest that around 186,000 social housing households have incomes above £50,000. That is both an injustice and an inefficiency in need of fixing, yet the Bill will not do so.

We must ensure that any changes to the structure of the social housing system are made to enable a fairer and more effective programme for the most vulnerable to find shelter. Social housing is a safety net, not a guarantee. People’s circumstances change over time. Those who have the means to pay market rent should do so, and that is why new clause 42 would require regular reviews of income eligibility thresholds. Without the new clause, the Bill would provide no avenue through which we can manage stock to free up more homes, no route towards building more social housing, and no light at the end of the tunnel for the 1.34 million people on the waiting list.

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - -

Before I respond to new clause 42, I must address something that the shadow Minister keeps saying, which is that the Bill does not build any new social housing. I have made this incredibly clear, and I encourage him to go and talk to his local authority, although I am not sure its record on social housing is a particularly good one. Local authorities are very clear and have said to us in plain terms that the measures in the Bill will incentivise them to build more social homes. Of course, it is not the case that this piece of legislation is the only means by which we are building new social and affordable housing. We have a £39 billion social and affordable homes programme, which dwarfs anything that the previous Conservative Government allocated in this area, and there is additional funding to come on top of that.

New clause 42 would require the Secretary of State to review income eligibility thresholds for social housing within two years of the Bill’s passage, and every five years thereafter, and to publish the findings and lay them before Parliament. Each review would consider trends over the previous five years in household earnings, regional housing costs, housing affordability and demand for social housing.

I recognise the importance of considering income to ensure that social housing is targeted at those most in need. Indeed, it is a sad truth that the residualisation of social housing over many years—not least because of the engineered decline of it under previous Conservative Governments, with increased right-to-buy discounts explicitly targeted to ensure that more is sold—has meant that, in most cases, it has become targeted to those on very low incomes, but we do not believe that the new clause is necessary.

Eligibility for social housing is considered through the allocations process, and there is no general national income eligibility threshold for social rented housing. As I have made clear, local authorities can take financial resources into account in determining qualification and relative priority under their allocation schemes, subject to statutory requirements, and private registered providers also operate their own lettings polices. This allows local and individual circumstances to be taken into account.

Rachel Blake Portrait Rachel Blake
- Hansard - - - Excerpts

The Minister has been incredibly generous. I wonder whether he will reflect in his closing remarks on the clause—which repeals what were, in my view, ideological attacks on something that is a very practical solution to a range of market needs and the affordability options open to people—that the previous Government did not enact these measures because they were found to be impractical, and because their implementation would actually cost the taxpayer money due to the risks of an additional administrative burden on local authorities and increasing homelessness; or will he remain as gracious and generous as he has been in our discussions so far?

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - -

I thank my hon. Friend for the invitation to become ungracious in respect of Opposition Members. I remember the debates in that 2016 Bill Committee. Those were deeply ideological measures, but I think it says everything that Conservative Ministers decided they were impractical, unworkable, could not be implemented, and made it clear—[Interruption.] They did. I encourage Opposition Members to go and read the 2018 social housing Green Paper, in which Conservative Ministers made it very clear that huge administrative burdens would come from some of these measures, in addition to their detrimental impact on tenants and communities. What we are doing is going a step further, as I have said, and removing these measures, and the uncertainty they create, from the statute book.

On the new clause, it is important to be clear that only a very small minority of social housing lettings are to high-income households. This is based on household income, not individual income, and in many cases could reflect two people each earning a modest salary, rather than a single person on what anyone would reasonably describe as a high income. Some households may have additional needs or circumstances that mean that social housing remains, as I have said, the only viable or appropriate option for them. That can be the case even when their income may be somewhat higher than that of others on the waiting list.

Income should be considered alongside a household’s wider housing needs and circumstances, but we do not believe that this duty is necessary, or that it would be an appropriate use of resources for the Government to review every one of these independently set thresholds. In repealing the pay-to-stay provisions in the Housing and Planning Act 2016, councils and registered providers will still be able to operate voluntary pay-to-stay schemes for households earning over £60,000 if they wish to do so. That discretion is important and it remains, but there will be no mandatory national requirement. That approach will, as I have said, avoid disincentives for people to work or increase their earnings, and will support a more sensible system overall. I therefore ask that the new clause not be pressed, and I commend clause 18 to the Committee.

Question put and agreed to.

Clause 18 accordingly ordered to stand part of the Bill.

Clause 19

Health and safety lead: Parliamentary procedure

Question proposed, That the clause stand part of the Bill.

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - -

Clause 19 will make a minor technical amendment to the Housing and Regeneration Act 2008, section 320 of which sets out the parliamentary procedure that applies to regulations made under its provisions. Regulations made under sections 70, 72 and 126A are subject to the affirmative procedure, which means that a draft of the regulations must be laid before and approved by both Houses of Parliament before they can be made.

However, the provision governing the negative procedure currently excludes only regulations made under sections 70 and 72; it does not also refer to section 126A. Clause 19 corrects that inconsistency and ensures that all regulations that section 320 specifies as being subject to the affirmative procedure are properly excluded from the negative procedure. The clause does not confer any new powers or reduce the level of parliamentary scrutiny; it simply ensures that the existing statutory provisions operate clearly and consistently. I commend the clause to the Committee.

Question put and agreed to.

Clause 19 accordingly ordered to stand part of the Bill.

New Clause 21

Management of local authority housing by TMOs

“Schedule (Management of local authority housing by TMOs) makes provision about the management of local authority housing accommodation by tenant management organisations.”—(Matthew Pennycook.)

This would introduce NS1 which provides for a revised and expanded legislative regime about the management of council housing by tenant management organisations.

Brought up, and read the First time.

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - -

I beg to move, That the clause be read a Second time.

None Portrait The Chair
- Hansard -

With this it will be convenient to discuss the following:

Government new schedule 1—Management of local authority housing by TMOs.

Government amendment 79.

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - -

The right to manage can be a powerful tool through which social housing residents can take greater control of the housing services that they receive, but it must operate within a clear, robust framework that protects residents and clarifies respective responsibilities. Taken together, these changes will update and strengthen the right to manage, making it easier for social housing tenants to exercise that right with confidence, while ensuring that appropriate safeguards are in place.

These reforms have been informed by the findings of the review of the right to manage that was undertaken by the Government. Through the review, we heard clearly from stakeholders that the current right to manage framework has not kept pace with wider regulatory change. They highlighted the need for governance that is more proportionate and for greater clarity on roles, responsibilities and information sharing.

We also heard from landlords and residents that the current routes for intervention if things go wrong can be slow and cumbersome. Within schedule 1, proposed new sections 27AD to 27AF of the Housing Act 1985 will enable a more proportionate approach to governance requirements. They will put in place lighter-touch requirements where residents take on more limited services, and stronger requirements where tenant management organisations assume more complex functions, including building safety responsibilities.

Those provisions will also provide broader powers to strengthen the framework governing right to manage arrangements, helping to ensure that it keeps pace with wider regulatory requirements, including on the safety and decency of social homes and quality of services to tenants. These are enabling powers that will allow us to update the right to manage regulations and guidance to govern management agreements, ballots of residents, regular reviews and information sharing. The powers will come into effect on Royal Assent, but we will consult on the detail before introducing the new regulations and guidance.

Proposed new sections 27AG to 27AL will also require regular reviews of the management agreements, strengthen the requirements for residents to be balloted on continuation of TMO arrangements, and require better information sharing between TMOs and their landlords. They will also strengthen requirements on landlords to consult TMOs on policy changes affecting functions exercised under management agreements.

Proposed new sections 27AM to 27AQ will create a targeted court-backed route for intervention in exceptional cases, including removal of board members where there is serious mismanagement of a TMO or a risk to residents’ safety. That route will be subject to judicial oversight, with the court required to be satisfied that urgent intervention is appropriate. That will help to address the concerns raised by my hon. Friend the Member for Dulwich and West Norwood (Helen Hayes) about the ability of councils to act swiftly where serious failings are putting residents at risk.

We know that many TMOs work hard to deliver good-quality housing services that respond to local priorities and are supported by tenants who give up their own time to serve on committees. These reforms will make the right to manage easier to exercise, clearer to operate and safer for residents. They will support resident empowerment while ensuring that landlords have the tools they need to meet their regulatory requirements and safeguard residents.

Question put and agreed to.

New clause 21 accordingly read a Second time, and added to the Bill.

New Clause 22

Duty of private registered provider to offer accommodation after local authority request

“(1) After section 193C of the Housing Act 1996 insert—

‘193D Duty of private registered provider to offer accommodation after local authority request

(1) This section applies where—

(a) a local housing authority in England has a duty under section 193 to secure accommodation for an applicant, and

(b) the authority has made a written request to a private registered provider of social housing to provide low cost rental accommodation in the authority’s district for the applicant.

(2) The provider must make an offer of low cost rental accommodation in the authority’s district to the applicant within a reasonable period, unless the provider has a good reason not to.

(3) If the provider considers that there is a good reason not to make an offer of low cost rental accommodation in the authority’s district, the provider must, as soon as reasonably practicable, give written notice of the reason to the local housing authority.

(4) In deciding whether to make a request under subsection (1)(b), the local housing authority must have regard to—

(a) the type and amount of low cost rental accommodation that the provider in question owns or manages in the authority’s district, and

(b) the extent to which the provider is already providing accommodation in the authority’s district to persons who are homeless.

(5) The local housing authority may by written notice require the provider to provide the information described in subsection (4)(a) or (b), unless it is not reasonably practicable to do so.

(6) A notice under subsection (5) may require the information to be provided—

(a) within a specified period;

(b) in a specified manner or form.

(7) The Secretary of State may by regulations make provision for the purposes of subsection (2) as to what constitutes—

(a) a reasonable period;

(b) a good reason.

save-line2(8) “Low cost rental accommodation” has the same meaning as in the Housing and Regeneration Act 2008 (see section 69)

(9) An offer made under this section is not an offer of accommodation under Part 6 (allocation of housing).’”—(Matthew Pennycook.)

Brought up, and read the First time.

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - -

I beg to move, That the clause be read a Second time.

Many councils and housing associations already work closely together to secure settled homes for people facing homelessness. We are committed to building on the many examples of good practice and collaboration that exist, but informal agreements between councils and other providers do not always work. Private registered providers are less likely than councils to offer accommodation to homeless households. New clause 22 will give local housing authorities an additional tool to help them to discharge the main homelessness duty.

Where a council owes a household the main homelessness duty, it will be able to ask a private registered provider with social housing in its area to offer social housing to that household. The provider must respond and offer suitable accommodation within a reasonable period unless it has good reason not to do so. We will consult councils, housing providers and other relevant providers before setting out in regulations what constitutes a reasonable period and a good reason, but, to give an example, a private registered provider would not be expected to offer accommodation if they do not have anything suitable available in a reasonable timeframe.

The power includes important safeguards. Before making a referral, the council must take account of the type and amount of accommodation that the provider has locally, and the extent to which it is already housing homeless households. That will ensure that referrals are fair and proportionate and that they reflect local circumstances. The approach builds on established practice in Scotland and delivers a commitment in our national plan to end homelessness. I commend the new clause to the Committee.

Question put and agreed to.

New clause 22 accordingly read a Second time, and added to the Bill.

New Clause 23

Referral of homelessness cases to other local housing authorities

“(1) Section 198 of the Housing Act 1996 (referral of case) is amended in accordance with subsections (2) and (3).

(2) After subsection (4) insert—

‘(4ZA) The Secretary of State may by regulations specify circumstances in which—

(a) the conditions for referral mentioned in subsection (2),

(b) the conditions for referral mentioned in subsection (2ZA), or

(c) the conditions for referral mentioned in subsection (4),

are not met for the purposes of referral of a case by a local housing authority in England.’

(3) In subsection (7) after ‘order’, in the first two places it occurs, insert ‘or regulations’.”—(Matthew Pennycook.)

This would allow the Secretary of State to make regulations specifying circumstances where a local housing authority in England cannot refer a person who is homeless to another local housing authority.

Brought up, and read the First time.

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - -

I beg to move, That the clause be read a Second time.

None Portrait The Chair
- Hansard -

With this it will be convenient to discuss Government new clause 24—Duties of specified bodies to collaborate and act on homelessness.

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - -

New clauses 23 and 24 will strengthen homelessness prevention and ensure that support reaches those who need it most, as quickly as possible.

We owe a debt of gratitude to those who have served in our armed forces. They have given so much of their life in service to their country, and it is right that we support them to have a safe home on leaving active service. The number of former armed service personnel seeking homelessness support is thankfully relatively small, but the Government recognise that those who do so can face challenges, particularly if they seek to establish themselves in an area where they may have no existing local connections. The existing legislation permits a local housing authority to refer someone who is seeking housing support, but does not have any connections to their local area, to the area of another local housing authority where they do.

New clause 23 provides a power for the Secretary of State to define in regulations where that should not apply. We propose to use that power to exempt our armed forces veterans from local connection referrals. That means that there will be no barriers or delays to veterans receiving homelessness assistance. They will be able to seek support from anywhere in the country, and the local authority will be required to provide assistance. This builds on the action that we took last year to exempt veterans from any local connection test that councils might apply to determine who qualifies for an allocation of social housing.

Rachel Blake Portrait Rachel Blake
- Hansard - - - Excerpts

I strongly welcome the move to remove the local connection test for armed forces veterans. It indicates this Government’s recognition that the local connection sometimes creates barriers for people to making their way off the streets, particularly when they are vulnerable. I welcome the Bill’s acknowledgment of the issue. I hope that there can be an ongoing conversation about the role of local connection tests, particularly regarding rough sleeping and how we support people to stop sleeping rough.

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - -

I very much welcome my hon. Friend’s support for this measure. I am more than happy to have an ongoing dialogue about the issue with her, as I do with so many others. It is absolutely right that we look to do everything possible to support our veterans.

I turn to new clause 24. We know that homelessness rarely occurs without warning. Yet too often, people come to the attention of local housing authorities only when they have already reached crisis point. Many of them will have been in contact with different public services long before, but opportunities to identify risk, co-ordinate support and intervene early are often missed. People often face homelessness despite engaging with services that are well placed to help prevent it. The new clause addresses this challenge by introducing new duties on specified bodies to identify and act on a person’s homelessness or risk of homelessness. This supports the Government’s commitment to prevent and relieve homelessness at the earliest possible stage.

The specified bodies will also be required to take meaningful action as part of the existing functions to address or relieve homelessness. The duty will replace and extend the existing duty to refer. It will mandate earlier engagement with local housing authorities, alongside notifying them if someone requires support. It also mandates continued engagement with the local authority to enable it to support an individual as effectively as possible, and will require specified bodies to consider other sources of support for the individual.

Preventing homelessness should not be the responsibility of a single organisation. People at risk of homelessness often have multiple and overlapping needs, including poor health, unemployment, financial hardship or involvement with the justice system. No single service can address these issues effectively alone.

Danny Beales Portrait Danny Beales
- Hansard - - - Excerpts

On the point about specific bodies, can the Minister clarify whether this provision would extend to hospital trusts and prisons within the criminal justice system? I am sure he knows that one of the most significant routes on to the street is from both of those public sector institutions. Unfortunately, hospitals rarely if ever count those who are likely to sleep rough on discharge or are currently doing so. Positively, the Government’s rough sleeping strategy is committed to ending discharge to street from hospitals, but getting that engagement from the NHS and trusts as well as the asylum system and prisons will be crucial to making that happen. Will this new clause be a step forward in that regard?

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - -

I appreciate my hon. Friend’s points. We will set out the specified bodies in due course. I hear what he says about hospital trusts in particular. I think engagement is to take place on the precise scope of the specified bodies that we want to be caught by the new duty. On the point of principle—these are broad enabling powers—effective prevention depends on earlier identification, co-ordinated action and shared responsibility across services.

Importantly, this is not about creating an entirely new system. Many services already undertake these activities to support homelessness prevention, whether by identifying vulnerabilities, signposting support, making referrals or working with partners to resolve housing issues. These new duties build on existing good practice and should drive a consistent national framework to support those who are most vulnerable.

The Government intend to define in secondary legislation the bodies within scope and the actions required to comply with the duty, but my officials and I have heard the point that my hon. Friend the Member for Uxbridge and South Ruislip makes.

Lee Dillon Portrait Mr Dillon
- Hansard - - - Excerpts

The new clause refers to identifying the local housing authority to which the notification could be made. In additional legislation, is it possible that H could notify more than one local housing authority— if they had a local connection, say, in Liverpool and in Berkshire—to get them off the streets as soon as possible?

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - -

If the hon. Member will allow me, I will write to him on that specific point; I do not have an answer to hand. I am more than happy to set out how these provisions might work where multiple local authorities are involved. I take his point on that.

As I say, we intend to define in secondary legislation the bodies within scope and the actions required to comply with the duty. This will allow us to work closely with stakeholders to ensure that implementation is proportionate and effective and that it reflects the differing functions of individual services. Ultimately, the new clause is about ensuring that services work together to identify risks earlier and intervene before people reach crisis point. By creating a more joined-up approach to homelessness prevention, we can help more people to remain in their homes, shift the system away from crisis response and deliver our ambition on homelessness and rough sleeping, as the Prime Minister has rightly outlined. I commend the new clauses to the Committee.

Question put and agreed to.

New clause 23 accordingly read a Second time, and added to the Bill.

New Clause 24

Duties of specified bodies to collaborate and act on homelessness

“(1) This section amends the Housing Act 1996.

(2) After section 213AA insert—

‘213AB Specified bodies must identify actual or possible homelessness

(1) A specified body must take reasonable steps to identify persons in England in relation to whom it exercises functions who it considers are or may be—

(a) homeless,

(b) threatened with homelessness, or

(c) otherwise at risk of becoming homeless.

(2) When a specified body becomes subject to that duty in relation to a particular person (taking into account any effect of regulations made under section 213AG(1)), the body must comply with the duty promptly.

213AC Specified bodies must act on actual or possible homelessness

(1) A specified body must comply with the duty to notify the local housing authority (see section 213AD) in relation to a person (H) if the body identifies H as a person who the body considers is or may be—

(a) homeless, or

(b) threatened with homelessness.

(2) But the specified body does not need to comply with the duty to notify if it is satisfied that—

(a) H has already made an application for assistance, and

(b) the application has not been disposed of.

(3) A specified body must comply with the general duty to act (see section 213AE) in relation to a person (H) if the body identifies H as a person who the body considers is or may be—

(a) homeless,

(b) threatened with homelessness, or

(c) otherwise at risk of becoming homeless.

(4) A “relevant step”, in relation to H, means a step to—

(a) prevent H becoming homeless,

(b) reduce the risk of H becoming homeless,

(c) relieve H’s homelessness, or

(d) alleviate the effects of H’s homelessness.

213AD The duty to notify the local housing authority

(1) The “duty to notify the local housing authority” in relation to H consists of the duties set out in this section.

(2) The specified body must ask H—

(a) whether H has made an application for assistance under this Part, and

(b) if so, to which local housing authority the application was made.

(3) If H has not made an application for assistance, the specified body must ask whether H agrees to the body notifying a local housing authority in England—

(a) that the body considers that H is or may be homeless or threatened with homelessness, and

(b) how H may be contacted by the local housing authority.

(4) If H agrees to the specified body making the notification, the body must ask H—

(a) whether H consents to the body sharing with the authority such information as is necessary to make the notification (including information provided by H and information already held by the body), and

(b) to identify a local housing authority in England to which H would like the notification to be made.

(5) If H agrees to the specified body making the notification and consents to the body sharing the information that is necessary to make the notification, the body must notify the local housing authority in England to which H would like the notification to be made.

213AE The general duty to act

(1) The “general duty to act” in relation to H consists of the duties set out in this section.

(2) The specified body must—

(a) consider the question of what relevant steps could be taken by it or other persons, and

(b) raise that question with such persons as the body considers appropriate, who must include any other persons that could take relevant steps.

(3) After complying with subsection (2) the specified body—

(a) must take any relevant steps which it concludes it can take, and

(b) must provide to the persons with which it has raised that question reasonable assistance to assist or enable them to take relevant steps.

(4) This section does not affect any right of the specified body, whether by virtue of a contract, enactment or other law, to seek to obtain vacant possession of any accommodation.

(5) If a specified body must also comply with the duty to notify in relation to H, making the notification under section 213AD(5) does not satisfy the general duty to act in relation to H.

(6) A reference in this section to a relevant step—

(a) includes a relevant step that can be taken with the assistance of another person;

(b) in relation to a specified body, only includes a relevant step that the body can reasonably take in the exercise of its functions;

(c) in relation to a person who is not a specified body, only includes a relevant step that the person can reasonably take in the exercise of their functions or in carrying out their activities.

213AF Duty to engage with local housing authorities

(1) This section applies where a local housing authority in England considers—

(a) that a person is or may be homeless, threatened with homelessness or otherwise at risk of becoming homeless, and

(b) that a specified body exercises functions in relation to that person.

(2) The local housing authority may ask the specified body to engage with them for the purpose of assisting the authority with the discharge of their functions under this Part in relation to that person.

(3) The specified body must engage with the local housing authority in such manner and to such extent as the body considers reasonable in the circumstances.

213AG Regulations and guidance

(1) The Secretary of State may by regulations make provision about how specified bodies can or must comply with—

(a) the duty to identify homelessness,

(b) the duty to notify the local housing authority,

(c) the general duty to act, or

(d) the duty to engage.

(2) Regulations made under subsection (1) may, in particular, make provision about the following matters—

(a) factors to be considered by a specified body when identifying whether a person is homeless, threatened by homelessness or otherwise at risk of becoming homeless;

(b) what information is necessary to make a notification to a local housing authority in England;

(c) what relevant steps by a specified body in the exercise of its functions are reasonable;

(d) the process to be followed by a specified body when identifying which persons it is appropriate to raise the question in section 213AE(2)(b) with.

(3) Regulations under subsection (1) may not be made unless a draft of the statutory instrument containing them (whether alone or with other provisions) has been laid before, and approved by a resolution of, each House of Parliament.

(4) The Secretary of State may issue guidance to specified bodies in relation to any of the following duties—

(a) the duty to identify homelessness;

(b) the duty to notify the local housing authority;

(c) the general duty to act;

(d) the duty to engage.

(5) Specified bodies must have regard to guidance issued to them under subsection (4).

213AH “Specified bodies” and other interpretation

(1) In sections 213AB to 213AG and this section—

“duty to engage” means the duty imposed by section 213AF for specified bodies to engage with local housing authorities;

“duty to identify homelessness” means the duty imposed by section 213AB;

“duty to notify the local housing authority” has the meaning given in section 213AD;

“general duty to act” has the meaning given in section 213AE;

“H” has the meaning given in section 213AC;

“relevant step” has the meaning given in section 213AC;

“specified body” means a body or other person that is—

(a) specified in regulations, or

(b) of a description specified in regulations.

(2) Regulations made under this section may provide that a person is a specified body only in relation to a particular function exercised by that person.

(3) If a provision under subsection (2) specifies a particular function of a specified body, any reference in sections 213AB to 213AG to the functions of a specified body has effect in relation that body only as a reference to that particular function.

(4) In this section, “regulations’ means regulations made by the Secretary of State.

(5) Regulations under this section may not be made unless a draft of the statutory instrument containing them (whether alone or with other provisions) has been laid before, and approved by a resolution of, each House of Parliament.’

(3) Omit section 213B (duty of public authority to refer cases in England to local housing authority).

(4) In section 218 (index of defined expression Part 7) insert in the table at the appropriate places—

‘relevant steps

section 213AC(3)’;

‘specified body

section 213AB(2)’.”



—(Matthew Pennycook.)

This would amend the Housing Act 1996 to introduce a duty for specified bodies to identify and act on homelessness.

Brought up, read the First and Second time, and added to the Bill.

Ordered, That further consideration be now adjourned.—(Laurence Turner.)