Oral Answers to Questions

Meg Hillier Excerpts

Monday 5th June 2023 Commons Chamber

[Rachel Maclean]

The hon. Gentleman has set out clearly the reason why the Government are taking these significant steps to make sure that we get the balance right between tourists visiting an area, bringing in vital income and supporting local businesses, and those local communities having the necessary housing for people and workers to live in and to buy. We are progressing this consultation as quickly as possible and will make further announcements in due course.

[Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

I draw the House’s attention to my entry in the Register of Member’s Financial Interests and to the fact that I am a leaseholder. Ten days ago, I met some of my residents who are leaseholders. They are yet another group of residents in Hackney who are frustrated by the inaction and slow actions of their freeholder. They desperately want commonhold and yet, despite a manifesto commitment in 2019 and promises from Secretaries of State in each of the past three years, we have seen nothing from this Government. Why is this dither and delay continuing?

[Rachel Maclean]

I do not agree that there has been dither and delay. We have already capped ground rents for significant numbers of leaseholders. We are committed to creating a housing system that works for everyone. We are determined to better protect and empower leaseholders to challenge unreasonable costs, extend the benefits of freehold ownership to more homeowners, and introduce more legislation within this Parliament.

Affordable Homes Programme

Meg Hillier Excerpts

Tuesday 25th April 2023 Westminster Hall

[Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Mr Hollobone. I warmly congratulate my hon. Friend the Member for Slough (Mr Dhesi) on securing this vital debate. He highlighted that the Public Accounts Committee and the National Audit Office have looked into this issue. I refer to my entry in the Register of Members’ Financial Interests and declare that I am the landlord of a property in the private rented sector.

Affordable housing is critical for my constituency. Many of my constituents live in very overcrowded conditions, as my hon. Friend the Member for Coventry North West (Taiwo Owatemi) highlighted. Every week I am out on doorsteps, doing surgeries and visiting people where they live. There are many examples of four children sharing a bedroom, and of a family living in the living room and another in the bedroom. Families are experiencing severe overcrowding without any hope of moving out. I will touch on that in a moment. Too many people just cannot afford to rent in the private sector or to buy, given that rates are very high, and the Government have changed the definition of “affordable” repeatedly, as my hon. Friend the Member for Mitcham and Morden (Siobhain McDonagh) highlighted. Crucially, we are just not building enough housing.

The record of the affordable homes programme speaks for itself. The Department for Levelling Up, Housing and Communities, on whose behalf the Minister is here to answer, set out to deliver 180,000 homes in 2021. It has already downgraded that forecast to 157,000 homes, but half of them will be for ownership, not rent. I am not someone who wants to get in the way of home ownership, but it is not even a distant dream for those of my constituents for whom renting privately is not an option. They just need somewhere to live, so we need social housing in London. Of course, the impacts of inflation and construction challenges put the figure of 157,000 at even more risk. The Government’s original intention was to build 300,000 new homes a year by the mid-2020s. Some of them were to be affordable homes, but we have not been given a figure, so I want to delve into that.

Let us pick up on the issue of definitions. Perhaps the Minister could take away the thought that we are conflating or confusing a multiplicity of markets. We have the full ownership market, but we also have affordable home ownership and shared ownership, which poses challenges for many people because they are liable for the whole property but own only part of the equity and pay rent on the rest. The term “affordable” was defined by the previous Mayor of London and former Prime Minister, the right hon. Member for Uxbridge and South Ruislip (Boris Johnson), as 80% of private rents. Well, good luck with that in Hackney, where it is simply unaffordable for many people.

There are various definitions for key worker housing, depending on where the development is—the term is very ill defined in law and regulation. At least social rented housing has a rent escalator model set out in law, so tenants have an idea of what they will be paying. That has, of course, been capped because of inflation rates. I welcome that for residents, but it does also create a problem for properties in desperate need of investment. There is also, of course, the private rented sector. Although it has been subject to more regulation, there is nothing about the level of rent and it does not have anything like a rent escalator model. That means that tenants can find their rent going up exponentially after spending only a year in their home. We are increasingly seeing that across the piece in my constituency and throughout London.

Social housing is critical. There are people in Hackney who work hard in good jobs, such as the hospital porter I visited, who is renting a room in a private home. He was living with his daughter, and they rented a room each in a private home. When the private landlady put up the rent from £400 to £550 a month for each room, they could no longer afford to rent two rooms, so he was living with his then 17-year-old daughter—she is now nearly 20—in one private room, because he could not qualify for social housing. As he was not homeless, he would not even get into temporary housing—not that that is a pathway people want to go down.

Five years ago, if people had been in temporary housing for six months I would encourage them to hang on in there because a prized council or housing association property would eventually become available. It is now increasingly the case that people spend more than three years in temporary housing. Recently, a family I was dealing with were rehoused from Hackney to Wellingborough. There are other examples, with the excellent head of homelessness at Hackney Council, Jennifer Wynter, saying that this is the worst situation she has known in her long career, and warning all of us not to raise people’s hopes that a home in Hackney will be a real possibility.

The Department’s own figures show that homes built for social rent provide higher value for money than those built for ownership. This thoughtful Minister used to be a member of the Public Accounts Committee. If he looked at the figures, I think that he, along with the Secretary of State, could be an advocate in his Department for social renting housing. The problem is that the Government, who are not meeting their targets, are chasing numbers, which means fewer social rented properties for the money. We want to see more homes, but we need social rented housing, and it is no good building homes that people just cannot afford to live in. We have a sore need for such properties, yet the Government rejected the Public Accounts Committee’s recommendation to assess the demand for social rent.

Sometimes the Government also respond to reports in a confusing way. A recommendation report notes:

“The government will work with delivery agencies to confirm the 2021 programme’s capacity to deliver homes for Social Rent as part of the review”

of the delivery of housing, and that they

“will confirm the programme’s ability to deliver an increased proportion of homes for social rent to Parliament at the same time as confirming the programme’s overall delivery targets.”

I could read that in all sorts of ways. I like to read it positively, as saying that the Department is determined to see an increased proportion of social rented housing. I hope the Minister can clarify exactly what the Government mean in that response.

It is worth putting the challenge in Hackney in context. I make no apology for repeating these figures. There are currently 3,100 households in temporary accommodation, 51% of which—more than half—are housed outside the borough due to a lack of supply. There are 3,528 children in temporary accommodation. That is enough to fill eight primary schools and is equivalent to 1% of Hackney’s population. We are having to close primary schools because of falling numbers. Many of those families would love to send their children to school in Hackney, but they cannot live there because there are not enough permanent homes. I have had so many tragic conversations with constituents in my surgeries or the living rooms of their temporary accommodation. They think that if they hang on, they will get a property in Hackney, where their kids are still at school, but I have to say to them, “You are not going to be in Hackney for some years. You have a five-year tenancy somewhere else so you need to think about moving your children.” They are aghast and upset, but that is the reality. Children are being shuttled around to schools where there are places; they are not going to schools their parents choose.

Average waiting times for council and housing association housing for homeless households is now nine years for a three-bedroom property—of course, that is a notional figure—and 12 years for a two-bedroom property. That is a lifetime for a child. Children are growing up in massively overcrowded conditions. They often live in a single room in accommodation or, if they are lucky, a couple of rooms in a hotel. Sometimes, they are in temporary, rented accommodation elsewhere, but with no certainty and, even if their parents are bidding for properties, no real prospect of getting a home anywhere near any time soon.

Homelessness in the borough is increasing rapidly. The number of households seeking support increased by 44% between 2017-18 and 2021-22. Hackney Council anticipates that the number will continue to increase by about 8% a year. That is just one London borough, but I am sure my colleagues across London will say the same. It was interesting to hear that in Coventry the experiences are very similar. In Hackney, that would be considered cheap housing, compared with what we have to deal with.

I pay tribute to the Mayor of Hackney, Philip Glanville, who is doing his utmost to build council housing—affordable, secure homes—but for pretty much every one he builds, he has to have one for sale to cross-subsidise because there is not a Government subsidy, despite the Government’s own figures showing that investment in bricks-and-mortar subsidy is the most cost-effective way of delivering these homes.

I am sure the Minister is thoughtful enough to take on board the cost of poor housing to the Exchequer. The Public Accounts Committee looked at the private rented sector. In my constituency, ownership is out of reach for so many people—average house prices are at ridiculous levels—so people are living in the private rented sector. The National Audit Office concluded that 13% of privately rented properties—589,000 of them—pose a serious threat to their tenants’ health and safety. The Committee and the National Audit Office estimated the cost of that to the health service to be £340 million per annum, so it really is spend to save. I know it is difficult for any Department to sell that to the Treasury, but I am sure that if the Minister wanted to join forces with us on this issue, we could all work together to persuade the Treasury that spending money, investing in people’s homes and getting them on a stable footing is better for everybody.

This is not rocket science. We need more homes to be built, and we need to unblock the logjam that is stopping that. We do not have the time to go into all the reasons for that, but we need more social housing that is actually affordable for people on average wages—people who work hard every day but have no prospect of buying a home. Some even find it hard to afford council rent. There are issues there, but we certainly need council rented housing and housing association housing. We need pathways to home ownership, but every time someone buys under right to buy, that is another home lost to the local council or the housing association, and that is not a path that many people can pursue.

Many years ago, when I was a councillor in Islington, we would pay people about £16,000 to move from their council property to help them buy a property elsewhere, so they freed it up. That is actually good value for money. Who would have thought that the Chair of the Public Accounts Committee would be standing here saying, “Give tenants who want to move the money to do so”? Sure, home ownership is understandably a dream for many people, but it should not be a dream that is out of reach. We could free up the housing we have for those who have the wherewithal and ability to move into other homes.

We need better rights and stability for private tenants. People live in a home with a year’s tenancy, perhaps, but cannot be sure from year to year whether their children can stay at the same school. It is an upheaval in a family’s life. Now, increasingly, as people are evicted, rents are going through the roof, as many landlords exit the market. In summary, I believe firmly—I hope that the Minister concurs and will tell us how he will help to achieve this—that people need a safe, secure and long-term home as the foundation for their life and, crucially, the springboard for opportunity.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Lee Rowley)]

It is a pleasure to serve under your chairmanship, Mr Hollobone. I thank all hon. and right hon. Members for their contributions and thank the hon. Member for Slough (Mr Dhesi) for instigating the debate. We may have disagreements about the methods by which we ensure that people can enjoy the fruits of home ownership and have a roof over their heads, but I think we would all, collectively, irrespective of what side we are on in this Chamber, agree that it is absolutely vital to have a housing sector that supports those who need it and provides the platform for people to be able to aspire to move into home ownership. That has been the case for the past century, and it has been such a success within this country.

I start by acknowledging the underlining point made by a number of hon. and right hon. Members, which is that there are challenges at the moment, including those that have grown in the immediate term, such as inflation, the cost of construction and materials and labour challenges, which all create issues in ensuring that we can make progress on our shared objectives. If we are truthful, that is also set within the context—I am not seeking to make a particularly political point, as it has developed under successive Governments of all colours over the past 30 or 40 years—of the number of houses that are built in this country and, flowing from that, the number of people who can have access to them, and the number of people who can enjoy home ownership in general. I think we have made progress on that as a Government, but I know there is a keenness to go further in the years ahead.

The Government support ensuring that people have a place to live, a place to thrive, a place to grow and a place to bring up families, which, in many instances, will be through affordable housing and social rent, but we also inherently believe in the importance of home ownership as a moral end in itself, providing the ability for people to make choices, grow capital and pass assets on to their family over their lives. The comments in today’s debate have underscored the need for more homes of all tenures, whether to rent, to buy or to part buy, on the way, hopefully, to fully buying in time.

On the specifics of the affordable homes programme, the whole point of the programme, which has nearly £12 billion of taxpayer subsidy—we are taking money from people that they would otherwise be able to spend themselves—is that we recognise the importance of some of the points made in the debate. Launched in 2020, that nearly £12 billion support—£11.5 billion—represents a significant taxpayer subsidy for affordable housing and a clear commitment to delivering tens of thousands of homes for sale and rent throughout the country.

Social rent has been raised by a number of colleagues, and I will come to their specific points in the moment. We brought social rented homes into the scope of the affordable homes programme in 2018 and we affirmed our commitment to increasing the supply of social rented homes in the levelling-up White Paper, which was published last year, as well as to improving the quality of housing across the board, in both the private and rental sector. I will come on to that point in a moment, when I respond to the hon. Member for Mitcham and Morden (Siobhain McDonagh). We have changed the parameters for the affordable homes programme to support that commitment, which enables further increases in the share of social rental homes that we plan to deliver.

Furthermore, the affordable homes programme is committed to funding a mix of tenures, enabling developers to deliver mixed communities that will ensure that people can buy, part buy and rent where they need to. That is why we have kept a commitment to delivering homes for affordable rent, where rent is typically capped at 80% of the prevailing rate. Yet it is home ownership that we want people truly to benefit from, and we want people to benefit from it as much as is possible. We understand the difference that an increased sense of security can make to all aspects of someone’s life and the lives of their families. That is why home ownership is a fundamental part of the affordable homes programme and why there is a significant element of homes for shared ownership, which can help people staircase up.

[Dame Meg Hillier]

The Minister said some warm words there about the need for social housing. In response to the Public Accounts Committee report, the Government indicated that local authorities would have more say over the mix of tenure in their area. In areas like mine, where the real need is for social rented housing, that requires more Government grant compared with areas where low-cost home ownership is genuinely an option. In Hackney, with the price as it is, home ownership will be very difficult to achieve. Can he flesh out how local authorities can deliver what they know is needed in their area and how Government grant will follow those decisions?

[Lee Rowley]

I am grateful to the hon. Lady for raising that point. She is an assiduous follower of this issue. I know of all the fantastic work that she and her colleagues on the Public Accounts Committee do on this area and elsewhere. I fear I might not be able to give her an absolute answer, but I will try to provide as much information as I can. There is obviously a challenge, broader than the specifics of this debate, about the amount of money that the Government have; that is not particularly newsworthy. If I may make a tiny partisan point: the Labour party, if it ever gets into Government, will have to make more choices than Opposition spokesmen indicate when they respond to such debates. There will always be a challenge around how we prioritise funding, and what the trade-offs are to do that. The commitment from the Government is here, with the £12 billion contribution that has already been indicated for allocation.

When we come forward with further information about the affordable homes programme 2021-26, I hope we will be able to give greater clarity for those authorities that seek a particular mix of housing and to expand the number of affordable homes of whichever tenure. I also hope that some of the changes coming through in the Levelling-up and Regeneration Bill will take effect, although that needs to complete its progress in the other place. We will have to see what the other place does to that Bill, which I hope will give local councils some ability to flex their approach in the area of housing.

--- Later in debate ---

[Lee Rowley]

I will not detain colleagues to that extent, but I am grateful for the confirmation that I can continue. The hon. Member for Greenwich and Woolwich (Matthew Pennycook) is keen to make a comparison. The fundamental thing that we are trying to do at the moment is weigh up a series of very challenging economic circumstances, recognising the context of housing supply, which has been a challenge for the entirety of my life. We recognise that we have to make progress for the very reasons that right hon. and hon. Members have outlined over the course of the debate. It is so important to do so, given that housing supply affects and impacts the lives of real people.

Let me comment on individual contributions. The hon. Member for Slough, opening the debate, emphasised the importance of the property-owning democracy, which I wholeheartedly agree with. I hope we can make progress on that and also address some points made by other hon. Members. He also said that there should be greater clarity on the affordable housing programme going forward. Although I am not able to give that in today’s debate, we have said that we will come back in the spring with further clarity about what is happening; there is not a huge amount of spring left, so I hope it will not be too much longer before my housing colleagues in the Department will do so. I anticipate the Department being able to provide further information to the hon. Member and others in the coming weeks.

The hon. Member for Coventry North West (Taiwo Owatemi) raised a number of points about the inherent challenges in the housing market and of trade-off. During my brief tenure as the Housing Minister back in the autumn, we had a debate in this very place about some of the issues, and she spoke then with regard to Coventry specifically. I cannot talk about Coventry individually, but I will put on record, if hon. Members allow me, the progress that has been made in the past 13 years. I realise that many colleagues will not necessarily want to point to that, but it is important for balance that we do.

Two million homes have been built in this country since 2010, and almost 1 million people—over 800,000—have been helped into ownership through schemes such as help to buy. Some 630,000 new affordable homes have been built. Last year, the registered supply of new homes increased over the previous year by approximately 10%, and I believe that the last five years have seen some of the highest rates of property building for 30 years.

A number of colleagues raised home ownership. Crucially, after a pretty linear fall from the mid-2000s under Governments of all parties, home ownership has started to increase again for the first time in a number of years. The increase is incremental—the rate is up from 62.5% in 2016-17 to 64.3% in 2021-22—but it is a movement back in the direction of empowering people to own their own properties and obtain all the consequent benefits.

[Dame Meg Hillier]

The Minister talks about home ownership increasing, but that incremental increase can hardly be seen as a victory. His is the party that introduced right to buy to increase home ownership. I wonder what the percentage is for anyone under the age of 35. Will he acknowledge that the Government have totally failed that generation in this respect?

[Lee Rowley]

The hon. Lady is absolutely right that it is not enough, but the whole point of trying to build more properties and of using programmes such as the affordable housing programme to bridge, where that is necessary, into home ownership through rent and part ownership is to boost those numbers. My point is not that there are no challenges—I acknowledged such challenges at the very top of my speech. It is to try to insert balance, if only into the record: some progress has been made over the last 13 years. A substantial number of properties have been built over that time—for home ownership, for rent and in the affordable sector—and most importantly, after a relatively clear-cut decline under Governments of all parties, the decline seems to have been arrested. There is a long way to go and there is absolutely the need for growth. I want everybody who wants to own their own home to have the opportunity to do so, but I hope that this is at least an indicator that we are moving, to an extent, in the right direction.

I have the greatest respect for the hon. Member for Weaver Vale (Mike Amesbury), and would never dream of reading my phone when he is speaking. I was specifically texting—this is both the benefit and the tyranny of having mobile devices in a debate—about the point he had raised. I regret to tell him that I have been unable to get an answer in the 40 minutes since he spoke, but I will ask the Department to write to him. I will be honest with him: I do not know whether the Department has purview here, and I do not know any of the details of the problem that he highlighted. It is always a challenge for local communities when developers are unable to complete the properties that they have indicated they will. I know that causes issues. I have a similar one in the village of Tupton in North East Derbyshire, where the developer unfortunately went out of business and the site is now mothballed. North East Derbyshire District Council is working hard to try to move that issue on. I will endeavour to write to the hon. Member for Weaver Vale either way, and will see whether the Department can provide any advice or information about the point that he raised; I am grateful for his doing so.

The hon. Member for Hackney South and Shoreditch (Dame Meg Hillier) raised a number of incredibly important and detailed points, to which I will ask the Department and the Minister responsible to respond in detail. Part of the answer to some of her questions will, I hope, be answered by the further details that come forward in the next stage of the affordable housing programme, but I will ask for a letter to be provided to the hon. Lady with more detail about the specific questions that she highlighted.

The hon. Member for Mitcham and Morden made an extremely powerful intervention about the challenges of temporary accommodation—an issue that we all are aware of. We all want standards, quality and conditions to improve. As a former councillor in central London, albeit a number of years ago, I am under no illusions about some of the challenges of temporary accommodation. The Secretary of State for Levelling Up, Housing and Communities, my right hon. Friend the Member for Surrey Heath (Michael Gove), has been clear that improvements are needed in this area and has indicated that further legislation will be forthcoming. I am grateful to the hon. Member for Mitcham and Morden for highlighting her concerns, and I hope the Department can make progress in the coming months and years.

The hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) made a very important point about the challenges of access to labour, particularly in rural areas due to geography and topography and the like. I am sorry to hear about the issues his constituents are experiencing. While housing is a devolved matter, it is important, and I am grateful that he has put on record those issues and the work he is doing to address them. He will be aware that, at least from an England perspective, we are seeking to legislate as part of the Levelling-up and Regeneration Bill in order to offer councils the opportunity—which they do not have to take up; some will choose to, some will not—to vary council tax for second homes. That will hopefully put an additional tool in the arsenal of local authorities to respond, in England, to the local challenges he has raised.

The spokesperson for the Opposition, the hon. Member for Greenwich and Woolwich, raised an important point about capacity in local planning authorities, which is an issue that the Housing Minister, my hon. Friend the Member for Redditch (Rachel Maclean), and I are both involved in. Within planning, nationally significant infrastructure projects fall under my aegis. That is different from the debate we are having today, but there are very live conversations within the NSIPs and major infrastructure realms. I know from my colleague the Housing Minister that it is the same with regard to capacity in local planning authorities and within the appeals process, where a number of applications end up in their final stages.

The hon. Member for Greenwich and Woolwich raised a number of important points about green homes. We need to make progress on multiple different imperatives and initiatives. The part L uplift, which we brought in in the summer of 2021, constituted a 30% increase and improvement in standards. That is in place now and has been for almost a year. The transition period for the part L uplift ends shortly, meaning that all houses built from now on will be 30% more efficient than previously. That is a massive increase compared to a number of years ago. However, there is a trade-off here, and we are trying to work through the issues and make progress in all aspects.

The Labour party has spent much of this debate—reasonably, in my view—saying that we need more houses, and that they need to be affordable to own and rent. We agree, which is why we are trying to make progress in this area. We also need to make progress on the environmental agenda, but those things must be brought into balance. Every single time an hon. Member stands up in this place and says, “We just need this one thing added in”, we need to understand that there is cost involved. That is where we have to make considerations. The part L uplift is a great example: we are trying to make progress environmentally, while also trying to answer the question reasonably posed by hon. Members across this place as to how we increase housing supply in general. We hope we are striking the right balance.

Oral Answers to Questions

Meg Hillier Excerpts

Monday 20th February 2023 Commons Chamber

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

1. What recent progress he has made on cladding and non-cladding remediation for residential buildings.

[Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

5. What steps he is taking with Cabinet colleagues to help ensure that residents are adequately protected from increases in insurance premiums caused by remedial works.

[Mike Kane (Wythenshawe and Sale East) (Lab)]

12. What steps he is taking with Cabinet colleagues to help protect leaseholders in low-rise apartment blocks from increases in building insurance costs caused by cladding issues.

--- Later in debate ---

[Michael Gove]

I am grateful to the hon. Gentleman for raising the plight of his constituents, but the action we have already taken will ensure not only that the ultimate owners of those buildings—whether that is the developers or the freeholders—are responsible for remediation, but that those leaseholders who are currently trapped and unable to move will be able to do so and to secure a mortgage on their property if required.

[Dame Meg Hillier]

I declare an interest: I live in a block with cladding. There are many real concerns, and I commend the Secretary of State for some of the progress he has begun to make, but there is still a big issue with insurance premiums that are way too high for the risk involved. Will he update the House on what progress he has made with the insurance industry to get premiums down?

[Michael Gove]

The hon. Lady is absolutely right. Not only have insurance premiums been too high, but some of the middle people involved have been gouging at the expense of leaseholders. We have made it clear that there are responsibilities on the Association of British Insurers and others to change their ways. The Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for North East Derbyshire (Lee Rowley), is responsible for local government and engaged in work to make progress on that.

--- Later in debate ---

[Michael Gove]

I say, “Vote Conservative,” because with a Conservative MP such as my hon. Friend the Member for East Devon (Simon Jupp), you have an effective advocate who can work with central Government in order to deliver.

[Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

More people rent privately in my constituency than own their own homes, and more people rent socially than both of those groups combined. When I visit those people, week in and week out, they are massively overcrowded with no prospect of renting in the private sector or buying. What is the Secretary of State doing to deliver properly affordable social rented housing?

[Michael Gove]

The hon. Lady’s point is very similar to that made earlier by the hon. Member for Vauxhall (Florence Eshalomi), and my answer is also very similar: we need to work with the Mayor of London, who has clear responsibilities in this area. Once again, I am not criticising him, but I am stressing that the delivery of so much of the funding required to improve housing in the capital depends on effective action by the Mayor.

Oral Answers to Questions

Meg Hillier Excerpts

Monday 9th January 2023 Commons Chamber

[Lucy Frazer]

We do not currently have plans to do so, but we will keep that under review. Since 2010, more than 819,000 households have been helped to purchase a home through Government-backed schemes. That includes how we cut stamp duty land tax, and extended the mortgage guarantee for a further year to maintain the availability of mortgages to buyers with only a 5% deposit.

[Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

First-time home ownership is a pipe dream for most people in my constituency, where more people rent privately than own their homes and more people rent social housing than those combined, with more than 13,000 people on a pruned-back social housing waiting list. What will the Minister and her Department do to help councils build the right housing—affordable housing—in boroughs such as Hackney so that people can get their foot into any secure housing, whether rented or owned?

[Lucy Frazer]

The hon. Member raises a very important point about how we help people to buy homes and get on the housing ladder. We have an £11.5 billion fund to help build affordable homes. She also mentions social housing. Since 1980, through the right to buy scheme, 2 million social housing tenants now own their own home, and we continue to develop schemes to secure people’s home ownership.

Building Safety Bill

Meg Hillier Excerpts

2nd reading
Wednesday 21st July 2021 Commons Chamber

[Robert Jenrick]

If I may, I will finish this point. I am also conscious of time, as many Members want to contribute to the debate.

Secondly, in the small number of cases where there are known to be concerns, these should be addressed primarily through risk management and mitigation.

Thirdly, there should be a clear route for residents and leaseholders to challenge costly remediation work, and to seek assurance that proposals are indeed proportionate and cost-effective.

Fourthly, the Government should work with the shadow building safety regulator to consider how to implement an audit process to check that fire risk assessments are following guidelines and not perpetuating the risk aversion that we are witnessing and which in some instances are taking unnecessary costs to leaseholders.

Finally, fire risk assessors and lenders should not presume that there is significant risk to life unless there is credible evidence to support that. This will ensure that they only respond to the evidence and adopt a far more proportionate and balanced approach.

This advice is supported by the National Fire Chiefs Council and the Institution of Fire Engineers. The Government support and will act on the recommendations. Delivering real change for leaseholders requires a concerted effort from all those actively involved in the market. The Government have in recent weeks been working intensively with lenders, valuers and fire experts in this regard. We welcome the expert advice and support the position that EWS1s should not be needed for buildings of less than 18 metres.

I am pleased that all major lenders have today welcomed this advice, with Barclays, HSBC, Lloyds and others agreeing that the expert advice and Government statement should pave the way for EWS1 forms no longer to be required for buildings below 18 metres, which will further unlock the housing market.

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

Will the Secretary of State give way?

[Robert Jenrick]

I will not.

I am extremely grateful to those in industry who have already engaged and shown the necessary leadership. This is a highly complex issue, but the Prime Minister and I expect that the appropriate next steps will be taken expediently. The market is shaped not only by the Government but by lenders, the Royal Institution of Chartered Surveyors, the fire and rescue service, and fire experts. All of us need to act to achieve a market correction and relieve the pressure on homeowners. There can be no bystanders in this action. I am hopeful that other lenders will follow soon, and that RICS will rapidly reflect on the expert advice and update its guidance accordingly. This concerted cross-market approach will open up the housing market for the remaining affected leaseholders.

--- Later in debate ---

[Robert Jenrick]

The expert advice that I commissioned has concluded that there is no systemic risk to life from purpose-built flats in this country and in particular—this was the question that I asked of the experts—from those flats that are low and medium-rise, meaning those of 11 to 18 metres. The experts’ advice, following on from that, is that they do not see a need for lenders to ask for EWS1 forms in the ordinary course of business. They also recommend that fire risk assessments are conducted in the usual compliance cycle, rather than on demand, in order to satisfy a market transaction such as purchasing or remortgaging a property. They do not conclude—as one would not expect them to do—that all buildings below 18 metres are safe. One can never say that, and there will be buildings that need remediation below that level, but because there is no systemic risk and the number of buildings is likely to be very small, it is not appropriate, in their opinion, which the Government have accepted, that lenders and other parties in the market should act as if there was a widespread and systemic issue. That is a subtle but important change of tone and one that I hope will lead—the initial support of the lenders suggests that this will happen—to a significantly different housing market.

[Meg Hillier]

Will the Secretary of State give way?

[Robert Jenrick]

I will, and then I would like to conclude my remarks.

[Meg Hillier]

On first reading, there are bits of this written ministerial statement that are very welcome, but it raises many questions. I put on record my regret that we have only had this chance to digest it. The Public Accounts Committee and our sister Committee, the Housing, Communities and Local Government Committee, have been looking at this issue, along with hon. Members in this House for several years. We have been making recommendations along these lines. Our constituents have been paying for safety works and dealing with the fear and anguish created by the very issues that our Committees have raised as problems. What the Secretary of State has come to the House with is a start, but why so late, when this issue has been raised by Members of this House and the Select Committee corridor for some time? I am just puzzled by the late timing.

[Robert Jenrick]

I do not agree with the hon. Lady in this regard. In the immediate aftermath of the Grenfell tragedy, advice was published by Government that sought to provide information to the market where there was a significant absence of expert opinion. The market in the years since then has reacted and taken what I have described as a safety-first approach.

In more recent times we have seen—Dame Judith Hackitt, our expert adviser, has used these words herself recently—extreme risk aversion, and that is leading to fear and anxiety above all for members of the public who have a sense of risk with respect to their homes that is not borne out by the evidence in terms of the number of fires or the likelihood of dying in a fire in a high-rise or a purpose-built flat. Secondly, that risk aversion is leading to other market participants, whether lenders, insurers, surveyors or assessors, seeking remediation of those buildings over and above what might seem to be absolutely necessary to achieve an acceptable level of life safety.

Earlier this year, as I have set out in my remarks today—Members will see this in the written ministerial statement, which merely summarises what I have already said to the House directly in somewhat more detail, which is why I chose to say it to the House directly, rather than simply via written ministerial statement—I asked a series of experts to conduct a serious review and analysis of this issue and to present their findings to me. That is what they have done today, and we are publishing them later. We have chosen to accept those and have worked very closely with as many market participants as we could, bearing in mind the market sensitivity of the issue.

I am pleased that a large number of those organisations have welcomed this step and have chosen in one form or another to support it. I do not want to overstate that, because this is a highly complex market and the Government are merely one player within it. It will now require all market participants to think carefully about what the consequences are for their own practices and organisations. I hope that in time they will strongly support the Government’s position, and that this will lead to a significant market correction to the benefit of all our constituents and the whole country.

I will conclude my remarks simply by noting a few other points within the written ministerial statement. With the Health and Safety Executive, we will explore ways to deliver a fire risk assessment audit process that ensures assessments are carried out in a risk-proportionate way, avoiding unnecessary and costly remediation works where they are absolutely not needed. We will explore options to provide a clear route for residents and leaseholders to challenge costly remediation work. That will be progressed alongside the steps we are taking to ensure a proportionate response to risk is embedded in the market, including: developing guidelines for fire risk assessors, such as, and principally, PAS 9980 and the withdrawal of the consolidated advice note; and launching a Government-backed professional indemnity insurance scheme for qualified professionals conducting external wall system fire risk assessments to help ensure there is sufficient capacity in the market to allow EWS1 forms to be completed in a timely manner, where they are necessary, and that those conducting them feel the confidence and security to be able to do so in the most sensible and proportionate manner.

Taken together, all these measures should provide a measure of reassurance to the market and to those living in blocks of flats of any height. I am hopeful that they will have a significant impact, but of course much depends on the willingness of the other market participants to show leadership and commitment and to work together through these complex challenges.

The fire at Grenfell tower was a terrible tragedy, and those who lost loved ones remain in our thoughts. The issues that became clear following the tragedy are multifaceted, and so our response must be as well. It is clear that the actions we have taken and will continue to take, and the world-class building safety regime delivered by this Bill, should deliver a robust but proportionate regime, meaning that people in this country should never feel unsafe in their home.

I commend this Bill to the House.

--- Later in debate ---

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

Thank you, Madam Deputy Speaker, and I welcome you to your position.

I must declare an interest in that I am a leaseholder in an affected block, although, happily for me and for my neighbours, the developer who built the block is footing the bill for everything. I am surrounded by scaffolding, and cladding is being removed at this moment.

The Bill is welcome, but it has taken a long time to get here, and, as others have said, it does not solve the problem completely. I want, in my brief remarks, to acknowledge and reflect everything that was said by my hon. Friend the Member for Manchester Central (Lucy Powell). She summed up the challenges, while making it clear that for us this is not about scoring cheap party political points: we need to resolve the situation for all our constituents throughout the country. We recognise that legislation is one step along the way, four years on from the Grenfell disaster, but there is nevertheless a long gap—a long time lag—between legislation and action.

Let me give a recent example. The Public Accounts Committee, which I have the privilege of chairing, recently examined the work of the Office for Product Safety and Standards, which has only just assumed responsibility for product safety in this sphere and has not yet developed a methodology for its delivery. I am making no criticism of the OPSS, which has a job to do, but it has only just taken it on—and this is 2021, four years since the Grenfell disaster. That is an example of how a small delay in the Government can mean a very long delay for the thousands of our constituents who are really suffering.

The Government delay has further compounded the situation. From the beginning, a number of us have been talking about there being too few fire safety surveyors, and there has been confusion over the EWS1 forms. I have not enough time to go into the written ministerial statement, but I concur with what was said about that by my hon. Friend the Member for Sheffield South East (Mr Betts). The insurance and mortgage industries are adding to the costs and uncertainty by doing what they do, with no recognition from the Government that some of the statements they themselves have made have caused those problems, which they should have been better at predicting.

The pots of money are welcome, but they are smaller than what is needed. I think that the Father of the House, the hon. Member for Worthing West (Sir Peter Bottomley), summed it up very well: we must get leaseholders off the hook, and then the Government must be very canny—and all of us will support them—in trying to secure the money from developers. We must also look at social housing. Support for today’s leasehold victims is at the cost of future housing for tenants and future leaseholders, at a time when housing supply is a Cinderella to the Government’s policy of fuelling demand.

Today’s extraordinary written statement came so late that I hope the Secretary of State will agree to appear before our sister Committee, the Housing, Communities and Local Government Committee. There are important questions to be asked, and I think that all our inboxes will be flooded over the next few days. We still need skills to do this work, and I urge the Minister to look at delivering that as well as this legislation. We also need clarity on the levy, and on legal action, which is out of the price bracket of most of our constituents on top of the bills that they are already paying.

This situation needs to be tackled. The Bill is a start, but there are many people still living in limbo.

Greensill Capital

Meg Hillier Excerpts

Tuesday 13th April 2021 Commons Chamber

[Paul Scully]

My hon. Friend will appreciate the audit reforms that we are consulting on. It is absolutely right that the markets work when they are transparent and open, which is why we are determined to make sure that, in the light of recent failures, we get these audit reforms through, and I look forward to his contribution to that debate.

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

It is incredibly sad and disappointing that, throughout this pandemic, we have seen too little transparency from Government about every aspect of how taxpayers’ money is being spent. The Government keep saying to the House, “Well, it was terribly difficult in those first two months.” We are now a year on, and we are still uncovering more. Is the Minister really satisfied that a six-week inquiry, dragged out as an announcement by the Prime Minister yesterday, is enough to shine sunlight on the millions of taxpayers’ money that has been given to organisations such as Greensill, backed by Government and therefore a loss to the taxpayer when things go wrong? Is six weeks enough, and will he commit to far more transparency, including, if necessary, calling witnesses before this House?

[Paul Scully]

The hon. Lady talks about two different things. There is a review into supply chain finance and the request from Greensill Capital, but there is also the wider view of how taxpayers’ money was spent when the Government were working about as close to real time as they will ever get to do. Business owners will understand the huge difference between the speed at which business and Government work. We will review how taxpayers’ money has been spent, but we will also make sure that, as my hon. Friend the Member for Redcar (Jacob Young) said, we chase people who have used Government grants and support inappropriately.

Leaseholders and Cladding

Meg Hillier Excerpts

Tuesday 24th November 2020 Commons Chamber

[Christopher Pincher]

I am obliged to my hon. Friend, who I know has been campaigning long and hard on this issue in Watford. As I have said, as a result of some considerable and lengthy negotiations with the financial services sector, we have agreed that EWS1 forms will not be necessary for buildings that are for sale that are not clad in the same way as some buildings that are in grave difficulty. That will help 450,000 people around the country, a number of whom I suspect will be my hon. Friend’s constituents. There is more work to do on this matter and we will continue to undertake it.

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

I need to declare my interest in that I am a leaseholder in an affected block, but in my case, my developer is paying for the full remediation works. The Minister must acknowledge that this is one of the biggest consumer and safety failures in a generation. For all that I chair the Public Accounts Committee—we have published a report on this issue—and I watch taxpayers’ money very closely, surely the Government need to step up, just as they did when the former Secretary of State signed a ministerial direction sanctioning the expenditure of millions of pounds because he knew that it would take too long to go through the legal process of tracking down the actual owners of buildings for the most dangerous cladding. The Government need to step up. We need 10 times the amount that has been pledged. Surely the Minister must recognise this. Too many leaseholders are trapped and will never be able to move.

[Christopher Pincher]

I am grateful to the hon. Lady, and I know that she is a very considerate and assiduous Chair of the Public Accounts Committee. The Government, though, have stepped up. It is why we put £600 million on the table to remediate ACM-clad buildings, and about 79% of those have now either completed or begun their remediation. Ninety-seven per cent. of social housing buildings have had that remediation completed. It is why we stepped up again with £1 billion through the building safety fund to remediate buildings that have other non-ACM-style dangerous cladding, but we must not absolve the developers and the owners of their responsibility to make sure that remediation takes place in the buildings for which they are responsible. We work with them to make sure that happens while we keep the general situation under review.

Covid-19 Lockdown: Homelessness and Rough Sleepers

Meg Hillier Excerpts

Wednesday 11th November 2020 Commons Chamber

[Kelly Tolhurst]

I thank my hon. Friend for his question. I will use my position to make sure that that money is being targeted at and provided in the areas where it is actually needed. This funding and this package is all about being able to target work intensively with local authorities. This is an offer to all Members who have a particular issue at a local level. I am always happy to take that up with local authorities and to have further discussions on their behalf.

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

I welcome the Minister to her post. I think she is the 12th Minister in this position in the past decade. Her enthusiasm for the efficacy of Government policy would be infectious but for the detailed work on the Government’s housing policies we have been doing on the Public Accounts Committee, which I commend to her. We are talking a lot about rough sleeping today, but I have far more families who are hidden homeless, or two households in one. They are struggling through the pandemic. It is a public health issue and it is damaging our children. Will she consider talking to me and my hon. Friend the Member for Westminster North (Ms Buck) about a housing market package to buy up hard-to-sell properties in the private sector and provide these people and rough sleepers with the Move On accommodation they so desperately need?

[Kelly Tolhurst]

I thank the hon. Lady for her question, and I am always happy to meet her to discuss particular issues affecting her area and to listen to ideas that Members think may or may not work in their local setting, but I have to reiterate that London has had significant support with the Next Steps accommodation. The exact focus of that is to move those individuals out of temporary emergency accommodation and into longer-term stability and pathways, delivering that security that those individuals and families need. I will happily meet her to discuss that further.

Business and Planning Bill

Meg Hillier Excerpts

Consideration of Lords amendments & Ping Pong & Ping Pong: House of Commons
Tuesday 21st July 2020 Commons Chamber

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

I want to put on record how proud I am of the entrepreneurs in Hackney who have contributed so much to developing our night-time economy—often quite young people who have come up with interesting ideas about how to develop their premises and contribute to our economy. However, it does cost Hackney Council £1.5 million a year in extra cleaning to manage the night-time economy that we have fostered. In its original form, the Bill would have contributed to some of the behaviour we have seen in recent weeks and months in my borough. I never like to stand up here and say bad things about the constituency I represent, but we have seen some appalling behaviour—I will not repeat what I said last time.

The Minister talked about the thoughtfulness and involvement of hon. Members that has greatly improved the Bill. I say to the Government that, even in a pandemic, a little more time could create even better legislation. Given that we were in the pandemic and businesses were thinking about this much earlier, a little more time—a week, even—would have been better than the three days we originally had to consider the Bill. We could have saved ourselves a lot of trouble, because there was agreement that we needed to support the hospitality industry, but there is also agreement across the House today—happily, we have seen some important changes—that we should support the residents, who will suffer if we do not get the balance right. In fact, the businesses in my area that have been there for a long time, living in most cases pretty harmoniously with residents, want to have that long-term relationship, so they were not all in favour of the original proposals. That could have been ameliorated if hon. Members had been involved at an earlier stage.

I particularly welcome and pay tribute to my colleagues in the other place on the limit on off-sales to 11 pm—I pay tribute to the hon. Member for Kensington (Felicity Buchan), who was the first to raise that issue in this House—and the limits on extensions to that. Off-sales cannot be a permanent free-for-all. Of course, if a local area decides that it works, it is at liberty to grant a licence in a particular area or a particular part of that area, but this freedom in licensing must not continue just because we have had it during a pandemic—it has to be down to local authorities that know their area, know their residents and know and support their businesses. The decision should never be taken away and made subject to a blanket permission from central Government. I welcome the intervention from their Lordships and I thank the Minister for accepting the amendments, so that we can move quickly on to support our businesses while ameliorating the impact on our residents.

Flammable Cladding Removal

Meg Hillier Excerpts

Tuesday 14th July 2020 Commons Chamber

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

It is beyond belief that it has been three years since that terrible night at Grenfell Tower. I want to begin by paying my respects to those who lost their lives, and we will remember them today in this debate. We are also incredibly grateful to their family members, their neighbours and the survivors for campaigning, despite all they went through, for the safety of properties that are clad with dangerous aluminium composite material and also of other properties that are a risk.

There are still an estimated 60,000 people living in homes with similar ACM cladding on the outside of their buildings, and many more living in buildings that are dangerous. According to the Fire Brigades Union, some 500,000 people are at risk from living in unsafe housing across the UK. Each night, they are going to bed, knowing that, if their building caught fire, it would spread quickly because of the flammable cladding, and they know, too, that their chances of survival are seriously lessened in that context. They know that progress to remove that cladding has been slow and has slowed further because of the pandemic. I have called for this debate because I think that it is vital that Ministers step up and make sure that the cladding and other dangerous materials on those blocks are removed as a matter of urgency.

It took a year for the Government to agree to fund the removal of ACM cladding in high-rise social housing blocks and then two years for private blocks and three years for others commitments to be made. That happened because of the actions of campaign groups such as Grenfell United, the UK Cladding Action Group and Inside Housing, as well as Members of Parliament and charities and housing organisations. It is not good enough that the Government have been forced kicking and screaming into doing these things, rather than taking responsibility, as was promised at the time of the fire. Although £1.6 billion of Government funding is welcome, they estimate themselves that between £3 billion and £3.5 billion is required to make all buildings safe.

Residents feel like prisoners in their homes. They cannot sell or remortgage their flats, and the external wall fire review and EWS1 form process is not sufficient, is costly and takes too long. They are trapped.

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

My hon. Friend raises an important point about the paperwork needed. Even many residents who live in homes that are not as unsafe as some others find that without that form they are unable to sell. One of the things the Public Accounts Committee picked up on in our recent hearing was that being unable to get professional indemnity insurance is a major brake. Does my hon. Friend agree that the Government need to step in on this issue?

[Rushanara Ali]

Yes, absolutely, and I hope that the Minister will, along with his Treasury colleagues, look at this very quickly to resolve the matter, because it affects people who are trying to sell homes, as I have seen in my constituency.

--- Later in debate ---

[Christopher Pincher]

I am obliged to my hon. Friend for that intervention. I will not dwell on any particular tower block or issue, but let me simply say that our intention is to make sure that leaseholders should not have to foot the bill; building owners and building managers and their agents should be looking after their buildings. That is why the Government have intervened with funding and specialist support, and we will not tolerate any further delays. Where building owners are failing to make acceptable progress, those responsible should expect local authorities and fire and rescue services to take tougher enforcement action.

By the end of May, of the 455 identified high-rise buildings with ACM cladding, 209 had either completed remediation or had their ACM cladding systems removed, while a further 86 had started remediation but not yet had ACM cladding removed. However, although there has been progress, there is much more to be done. We are under no illusion about that. For the removal of unsafe ACM cladding, we are aiming for all building owners to have works on site by the end of 2020, with completion of remedial works by the end of 2021. It is a challenge, but one that we are determined to meet.

Even with public funding available, the pace has been much too slow. We recognise that remediation is a complex undertaking and that every building is different; we also understand that building owners do not always have the requisite expertise or experience to advance the work. We have therefore recently appointed Faithful+Gould as specialist construction consultants to help responsible entities to increase capacity and capability and to support them directly through the remediation process. F+G is currently working with those buildings identified as most at risk of missing the end-of-year date. It is examining project plans and seeking ways to reduce timescales to mobilise projects.

Overall, the Government have set aside £1.6 billion in funding for the remediation of ACM and other types of unsafe cladding from high-rise residential buildings in the private and social housing sectors. We made that money available to support the remediation of unsafe cladding, and a large proportion of that support will protect leaseholders from costs. We recognise that there are wider remediation costs that will need to be met to ensure the safety of existing blocks of flats, but the public funding does not absolve the industry from taking responsibility for any failures that led to unsafe cladding materials being put on those buildings in the first place. We expect developers, investors and building owners who have the means to pay to take responsibility and cover the cost of remediation themselves, without passing on costs to leaseholders.

The Government have committed £600 million to remediate buildings in the public, social and private sectors and speed up the pace of remediation of ACM cladding. In the private sector, although some developers said that they would meet the costs, it became clear that a significant number of building owners could not or would not do so, and therefore funding needed to be made available to enable progress. That is why in May 2019 we announced that £200 million of funding would be available for ACM remediation in private sector buildings, and the fund was opened for applications in September that year. As of May 2020, the Department expects to pay for 94 projects in the private sector where the developer or building owner has not agreed to fund remediation work themselves. The owners of 84 private sector residential buildings have committed to funding the remediation works themselves, with a further 23 self- funded through accepted warranty claims. We are working with a handful of other buildings where a funding route has yet to be agreed. The availability of funding and a direct package of support for building owners means that there can be no excuses for further delays. For those who fail to make acceptable progress, tougher sanctions are coming, first through our Fire Safety Bill, currently before Parliament, and subsequently when our new building safety regime comes into place.

We have always acknowledged that there are materials other than ACM cladding that are of concern. We have been providing advice on their removal to building owners since 2017. The highest priority has been the removal of the type of ACM used on Grenfell Tower because it poses the most severe safety risk, but there are other unsafe cladding materials that must also be removed. That is why in March this year we announced an additional £1 billion of funding for the remediation of unsafe non-ACM cladding in the social and private residential sectors. We expect this funding to be fully committed by the end of March 2021. The new building safety fund will cover high-rise buildings with unsafe non-ACM cladding, such as some types of high-pressure laminate.

The issue of waking watch was raised by the hon. Member for Bethnal Green and Bow and by other hon. and right hon. Members. I know that leaseholders have concerns about costs of interim measures—costs that have been heightened due to the covid-19 emergency. These interim measures include waking watches. Waking watch is meant to be a short-term tool: it is no substitute for remediation. But the only way to remove the need for interim measures is to remove unsafe cladding as quickly as possible. That is why we are prioritising £1.6 billion of public subsidy on remediation of unsafe cladding. That said, my noble Friend Lord Greenhalgh, the Minister with responsibility for building safety, is investigating what we can do to reduce the cost of waking watch. This includes publishing data on the costs of waking watch to ensure greater transparency on costs. Moreover, the National Fire Chiefs Council is updating its guidance. We have asked the fire protection boards to advise fire and rescue services on how best to operationalise the revised guidance, including looking to measures such as installing building-wide fire alarm systems.

[Meg Hillier]

Will the Minister commit to looking at the issue of professional indemnity insurance? This does need a good political fix at the top.