Freehold Estate Management Fees

Rachel Maclean Excerpts

Thursday 13th July 2023 Westminster Hall

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

It is a great pleasure to respond to this debate and to serve under your chairmanship, Dr Huq.

I start by thanking the hon. Member for North Shropshire (Helen Morgan) for securing this debate on an issue that she feels passionately about. Indeed, many of us feel passionately about it, and it is a testament to the persistence and determination of many colleagues in the House that we are again debating this vital issue.

As the hon. Member did during the recent Opposition day debate, she brought to the House’s attention powerful examples from her area; I think that it is particularly on the Brambles estate in Whitchurch where the current system is not working for homeowners. I am hugely frustrated at the situation that those homeowners find themselves in.

I thank my hon. Friends the Members for North East Bedfordshire (Richard Fuller) and for Buckingham (Greg Smith) for the discussions we have had about this issue and for the attention to detail they have brought to our process of scrutinising and preparing the legislation that we very much hope to introduce soon. I will come on to that shortly.

The Opposition Front-Bench spokesperson, the hon. Member for Greenwich and Woolwich (Matthew Pennycook), correctly highlighted the cross-party support on this issue. He has been supportive and constructive in his tone, both today and other occasions. I welcome that, because it makes the case for all of us to pursue the legislation and to ensure that it is brought to the House swiftly.

There was a broad consensus on the need for change. Let me use this opportunity to assure Members that fairness remains at the heart of our ambition for the housing market. We all know that we need to drive up housing supply so that we have the homes that the country needs, but while doing that, we need to ensure that buyers are getting high-quality and safe housing on modern, beautiful estates—if that is what is being built—that they can enjoy for years to come. Unfortunately, too many homeowners who bought their properties in good faith have not had their expectations met.

In the past, as Members have highlighted, it was typical for councils to adopt local infrastructure and shared spaces, but the system has changed in recent years. I recognise that on more and more estates, it is common for the shared spaces to be owned and managed by another party. The ownership of the land varies between developments. On some estates, it is owned and managed by a resident-led management company, often with the support of a managing agent, which provides expertise and services to the residents in the running of the estate. On other estates, the land is owned and managed by private management companies. Some have connections to the original developers; others are third-party companies.

It is often not down to the homeowners themselves to decide which type of management arrangement is in place on the estate. Commonly, that is set by the developer before any of the houses are sold. Either way, as has been pointed out, homeowners on these estates must pay a charge to cover the upkeep of open green spaces, roads, sewerage, drainage and other shared infrastructure, such as balancing ponds and play areas, which have been highlighted. In such circumstances, we must ensure that homeowners get a fair deal and do not end up in a vulnerable position as a result of these arrangements.

My hon. Friend the Member for Buckingham and the hon. Member for North Shropshire called for local authorities to be compelled to adopt all communal facilities on a new estate. It is worth pausing to consider why that does not happen at the moment. Our current planning arrangements exist to support new developments. When a new development is granted planning permission, the local authority can obtain section 106 planning obligations to secure a commitment from the developer. That means that the local authority does not have to adopt and maintain the land at its own expense. Local authorities no doubt take such financial considerations into account when they make these decisions, but it is up to developers and the local planning authority to agree on specific issues such as timescales for development and appropriate funding arrangements, and it is clear to me that, in a lot of cases that have been brought to our attention, that process is breaking down.

The local authority has powers to ensure that the developer builds and maintains communal facilities to the standards and quality set out in the planning permission. It is worth noting that the maintenance of communal areas, and of roads in particular, can be a significant financial burden. This is why it is right that the decision about adoption should rest with the local authority. The Department for Transport has recently issued guidance on the circumstances in which local authorities should be adopting roads. Again, I note that this can be a fraught area in some situations; I have seen that from my correspondence.

We need transparency. We need a system that consistently delivers clarity to potential purchasers and arms them with information about the arrangements for the maintenance of shared spaces on private estates. That information should be set out as part of the conveyancing process. Many already use the freehold management enquiries form, the FME1, published by the Law Society. I know that the form is used widely across the sector, but I have heard that for some buyers the information was not provided, or perhaps not drawn to their attention, at the point of purchase. That may have been the experience of some of the constituents my hon. Friends and colleagues have spoken about.

If a homeowner is unhappy with the service that they received from their conveyancer or solicitor, and the internal complaints process cannot resolve the issue, the legal ombudsman may be able to help. That needs to happen within six months of the homeowner’s final response from their conveyancer or solicitor. My hon. Friend the Member for North East Bedfordshire highlighted the issues with buying and selling homes, the process for which in England and Wales can be expensive, time-consuming and stressful. For that reason, we committed to improving the process in the levelling-up White Paper.

We have committed to work with industry to ensure that potential buyers have access to the critical information that they need in an accurate and timely format. That will help them to make an informed decision about whether to purchase a property, reducing the likelihood of the sale falling through. Some of that work is already taking place, but the Government are committed to continuing to create a fair and just housing system for everybody.

Too often, once a homeowner has moved into their home, they are asked to pay charges without an effective breakdown of what they cover. This is a matter of basic fairness and justice. Homeowners deserve to know what they are paying for on their estate. As with leaseholders, a lack of transparency, both at the homebuying stage and when people are settled in their property, leaves homeowners in an unfair and often vulnerable position.

[Helen Morgan]

That is the crux of the matter. If rogue management companies acting in bad faith do not provide that information and do not have an AGM, there is no remedy for homeowners to challenge what they are up to, or to take control of the situation. If those basic Companies Act requirements are not being fulfilled, could there be some legislative remedy for homeowners that does not involve them incurring the enormous expense of going to court? For example, could they take on the management of the company if basic Companies Act requirements are not complied with?

[Rachel Maclean]

I thank the hon. Member again for reminding us of this issue. I hope that she will bear with me, as I am coming on to our intended legislative remedy, through which we intend to drive up transparency for homeowners. Better transparency will help people to be better informed about buying a home on a managed estate and empower them to question or challenge the charges when they are billed. Alongside that, they must have better rights to challenge, as the hon. Member just said.

Freeholders on managed estates are currently at a disadvantage compared even with leaseholders, for whom the system is not perfect by a long way, regarding their ability to challenge costs and poor service. Leaseholders already have certain protections and rights that enable them to hold landlords and management companies to account, yet freehold homeowners have no such equivalent, although they may be paying for very similar services. The situation is clearly unfair, and we are committed to introducing legislation to plug the gap.

Let me come on to what we intend to do, which I am sure Members are keen to hear. We intend to create a new statutory regime for freehold homeowners based on the rights that leaseholders have. We will give homeowners the right to challenge the reasonableness of the estate management charges at the first-tier tribunal, and the right to change the provider of management services by applying to the tribunal to appoint a new manager. That will be an important power when a homeowner is unhappy with the service that they are receiving and there is a significant failure by the estate management provider in meeting its obligations.

The hon. Member for North Shropshire mentioned existing homeowner rights, which will depend on the ownership of the land and the terms of the transfer. People should seek independent advice on the options available to them. For example, if a management company is not complying with its obligations, homeowners may be able to use contract law and make an application to the county court for an injunction for specific performance. That will require the management company to comply with its obligations.

Resident-led management companies are independent companies to which residents are appointed as directors. Sometimes the articles of association, which set out how the company will run, will specify that homeowners are automatically part of the company and so can vote at the AGM. Homeowners may also be able to call extraordinary general meetings, and they can apply for an injunction for specific performance if the company is not complying with the articles of association of any management agreement. But we know we must do more, which is why we will consider introducing a right to manage for freehold homeowners. That will follow from our consideration of the Law Commission’s report and recommendations on changes to the right to manage for leaseholders.

It is not only estate management charges that need to be reasonable. As I mentioned in last week’s Westminster Hall debate, the principle must also apply to the administration fees that individual homeowners may face in their dealings with estate management companies. Therefore, we will legislate to require that all administration charges must be reasonable, which will mean that they may be challenged at the first-tier tribunal.

I want briefly to mention the Competition and Markets Authority’s house building market study.

[Richard Fuller]

Before the Minister moves on from charges, I wish to make the point that I made earlier, although she may not wish to comment now. If those changes are made, is it the Government’s intention that people who have been charged excessively, or can make the case that they have been, prior to that legislative change will be provided with access to those tribunal options?

[Rachel Maclean]

My hon. Friend’s point is very much in my mind. He is right to make it—he has made it to me multiple times—because it is a very important point. While the legislation is being prepared, I cannot comment specifically on the individual measures that will be in it, but I have no doubt that when we bring it forward, he will probe and challenge every part of it. I very much hope that we can achieve a successful situation at the end of that process.

In February, the Competition and Markets Authority launched a market study on house building, as part of which it will examine the fairness of estate management fees charged for unadopted roads and amenities. It will make recommendations about policy and regulatory changes. My hon. Friend the Member for North East Bedfordshire may be interested to find out about those.

There is also an issue of redress in relation to the fit and finish of residents’ homes on new estates. Invariably, the problems are the result of inadequate quality control. People have encountered unfinished roads, half-built playgrounds and a lack of recourse to resolve those issues, all of which are unacceptable. We have been clear that new housing developments should be finished on time and to a high standard. If things go wrong, homebuyers must be treated promptly and fairly.

There are existing routes to redress, which we are strengthening through the Building Safety Act 2022. We have included a provision for a statutory new homes ombudsman, which will make developers more accountable and make it easier and simpler for new home buyers to seek redress when things go wrong. We are considering the arrangements for the statutory scheme and are working on the next steps, which we will set out in due course. In the meantime, the independent New Homes Quality Board has established the voluntary new homes ombudsman service, which launched last autumn. It can handle complaints from homebuyers about new homes built by developers that have registered, and it is 100% free for homebuyers to use.

Let me turn finally to the most important matter for hon. Members: the timing of these changes. Unfortunately, I do not have much to add to what I have already said, which is that legislation for the next Session will be set out in the King’s Speech. Everybody in the Chamber will have heard the Secretary of State and I say that it is our intention that the King’s Speech will contain a Bill that will address the issues that have rightly been raised. That remains our priority.

Fairness needs to be at the heart of the housing system. The arrangements for the upkeep of open spaces and roads on freehold estates should always be clear to potential homebuyers, and costs charged must be transparent and reasonable. Homeowners need to have access to redress when things go wrong and be empowered to hold their estate management companies to account. That is why we remain committed to legislating as soon as we can. I thank all colleagues for their consistent advocacy and campaigning on this vital issue, which, as has been said, affects a million people around the country.

Oral Answers to Questions

Rachel Maclean Excerpts

Monday 10th July 2023 Commons Chamber

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

The Government are committed to increasing the supply of affordable housing, which is why, through our £11.5 billion affordable homes programme, we will deliver tens of thousands of affordable homes for both sale and rent in communities up and down the country. When it comes to Chesterfield, I am aware that the local plan was adopted in July 2020, but ultimately local authorities are responsible for plan preparation and decision making, and they interpret national policy and guidance according to local circumstances.

[Mr Perkins]

I am grateful, but that is not really an answer to my question of whether the Minister considers that the amount of affordable housing is adequate. Under the Conservatives, the number of new social rented homes has fallen by over 80%, and there are now 27,000 fewer socially rented homes built each year than there were under a Labour Government. Meanwhile, hard-pressed mortgage holders are facing the highest interest rates in a generation. Is it not clear that neither renters nor buyers can afford another year of this Tory Government?

[Rachel Maclean]

I do not know whether the hon. Gentleman is aware that Chesterfield Borough Council is under the control of the Labour party, which, with the assistance of significant Government grant funding, is responsible for delivering affordable housing in the area. It is up to Chesterfield Labour party, in control of that council, to work with developers to make sure that planning obligations deliver the houses that local people need.

[Tom Hunt (Ipswich) (Con)]

We know that a lack of affordable housing can contribute towards an increase in homelessness. Of course, it is a big responsibility for different areas to tackle homelessness, and I am proud of what Ipswich does, particularly through organisations such as the Ipswich Housing Action Group. I am concerned to hear, though, that neighbouring authorities in the eastern region are sending their homeless people to Ipswich. Does the Minister agree that those authorities should shoulder the responsibility to tackle homelessness in their own areas and not send those homeless people to Ipswich? Will the Minister confirm that the Labour-led council can stop that happening if it wants to do so?

[Rachel Maclean]

I thank my hon. Friend for bringing this vital issue to our attention on the Floor of the House. Of course, we expect local authorities to work together to tackle homelessness and to alleviate those pressures on the most vulnerable people. It is right for his Labour council to work with any other council that has responsibility for that.

[Patrick Grady (Glasgow North) (SNP)]

11. What assessment he has made of the strength of the Union.

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[Paul Holmes (Eastleigh) (Con)]

24. What steps his Department is taking to support house building.

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

House building is a priority for this Government. We have announced £10 billion-worth of investment in the housing supply since the start of this Parliament, and ultimately, our interventions are due to unlock over 1 million new homes. We are also investing £11.5 billion in the latest affordable homes programme, to provide tens of thousands of new homes across the country.

[Jane Stevenson]

As my question concerns Wolverhampton, with your permission, Mr Speaker, I would like to pay tribute to Councillor Ian Brookfield, the leader of City of Wolverhampton Council, who sadly passed away last week, aged only 57. Ian worked with many Ministers and the Secretary of State when the Ministry’s second headquarters moved to the city of Wolverhampton. He will be greatly missed by many people.

The Government have made a series of big investments in Wolverhampton, and that has positioned it as the centre of the home building industry. That includes millions of pounds for the National Brownfield Institute, the city learning quarter, and the Modern Methods of Construction taskforce. Will my hon. Friend the Minister support my campaign for an investment zone in Wolverhampton North East, stretching from Springfield brewery to the science park? That would help attract businesses to Wolverhampton, where they could capitalise on the expertise that our city now has in home building technology, and attract high-quality jobs to my constituency.

[Rachel Maclean]

I join my hon. Friend in paying tribute, on my behalf and on behalf of all Ministers in the Department, to Councillor Ian Brookfield.

I thank my hon. Friend very much for her question. She is an absolutely superb advocate for her constituents and the city of Wolverhampton. I am pleased to tell her that the investment zone programme is under way; a shortlist of eight places in England selected for inclusion in the programme was announced in the spring Budget, and the west midlands is one of them. We are co-developing proposals, and we will look very carefully at her proposal, for the reasons that she set out.

[Maggie Throup]

I draw my hon. Friend the Minister’s attention to the uncertain future of the housing development in Long Eaton in my constituency. It has been at a standstill since the termination of the house builder’s contract 10 months ago. What further support is available to encourage the site owner to complete the more than 100 homes planned for the site, so that the development is not left to deteriorate beyond repair?

[Rachel Maclean]

I am of course concerned to hear about the situation that my hon. Friend highlights, and I would be pleased to discuss it with her in more detail, if that would be helpful. More generally, we are introducing a range of measures to increase transparency about build-out, to ensure that when development proposals are brought forward, the development actually gets built.

[Jason McCartney]

Labour-run Kirklees Council is taking in millions of pounds from housing developers through the section 106 levy, but local people are losing confidence in the system, as they just do not see the money being spent on local schools, local roads or local health services. Does the Minister agree that developer contributions, which are given to improve local infrastructure that is affected by major housing developments, should be spent on just that?

[Rachel Maclean]

My hon. Friend highlights a most unsatisfactory state of affairs from Labour-run Kirklees Council. We are introducing a new infrastructure levy that will bring much-needed transparency. Local authorities, including Kirklees, should be spending that precious money on the infrastructure needed for local people.

[Kate Kniveton]

With the growth in development of new housing across my constituency, we must ensure that adequate provisions are in place to meet the essential needs of residents, such as at the Bramshall Meadows development, where residents are waiting for the play space they were promised, and at Branston Locks, where new healthcare services are needed to support that development. Can the Minister provide an update on what is being done to guarantee the successful and timely integration of these vital facilities in new housing developments?

[Rachel Maclean]

My hon. Friend highlights well on behalf of her constituents the vital and pressing need for the Levelling-up and Regeneration Bill, which includes measures to tackle exactly the issues she has highlighted. It will introduce a new infrastructure levy, which will reform the system of developer contributions, bringing certainty and transparency over the infrastructure needed to be delivered alongside development.

[Peter Aldous]

To address the housing crisis, we need to be building more homes for social rent, and planning departments must be properly resourced in personnel and funding. Will my hon. Friend set out the steps she is taking to address those two specific issues?

[Rachel Maclean]

My hon. Friend speaks with considerable expertise on these matters. We know that many local planning authorities are facing capacity and capability challenges, which is why we have developed a programme of support, working with partners across the planning sector, to put more skills and capacity into planning authorities. Our levelling up White Paper is committed to increasing the supply of social rented homes across the country.

[Paul Holmes]

Lib Dem-run Eastleigh Borough Council, which is developing 2,500 homes on Horton Heath, last week passed a planning amendment to recklessly remove all affordable housing obligations, despite its being the developer of the site. Will my hon. Friend condemn that cynical move and assure me that no Homes England money will be used to backfill the gap?

[Rachel Maclean]

I thank my hon. Friend for highlighting the reckless behaviour of his Liberal Democrat-run council. I completely agree that it is a disgraceful state of affairs. The council should be using that funding secured to deliver the affordable housing that his residents rightly need and deserve. As he suggested, Homes England will definitely not be contributing to backfilling that need.

[Mr Speaker]

I call the Chair of the Select Committee.

[Mr Clive Betts (Sheffield South East) (Lab)]

I do not doubt the Minister’s good intentions on house building, but does she accept that, according to her own Department’s figures, housing starts fell by 12% year on year in the first three months of this year? That is down to a figure of just more than 37,000 starts, which is half the figure needed to hit 300,000 homes a year. On that basis, does she conclude like me that not merely is her policy not succeeding in hitting the housing targets, but it is considerably contributing to their failure?

[Rachel Maclean]

The hon. Gentleman brings his considerable knowledge to this matter, but I will take no lectures from him and the Labour party on house building. This Government delivered 242,000 houses in 2019-20—that is the highest level for more than 30 years, including the entire time that the Labour party was in government.

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

We do not just need to build affordable homes; we also need to build high-quality homes that are fit for the future and climate-resilient. In the past six years, the average cost of repairing a home from flood damage has been £60,000 a property, and Aviva calculates that one in four homes is now at risk of flooding. Will the Government ensure that their proposed national planning policy framework will finally prevent unprotected homes from being built in flood risk areas?

[Rachel Maclean]

The hon. Lady raises an important issue. The consultation on the NPPF has been well subscribed. We are analysing the responses now, but I am sure we will be able to say more in due course.

[Tim Farron (Westmorland and Lonsdale) (LD)]

In Westmorland and Lonsdale, average house prices are 12 times average household incomes. The danger we have is that when we see houses developed, we are meeting demand, but not need. Should the Government not give us far greater planning controls, so that we can ensure that we do not see 100 homes built that are a waste of bricks going into the second home market? Instead, we should ensure that they are affordable homes, socially rented for local families.

[Rachel Maclean]

Local authorities have a huge amount of freedom. They have been given the tools by the Government through legislation, through developer contribution powers and through Homes England grants to deliver affordable homes. The hon. Member will also know about the wider work we are doing on second homes to enable local authorities to raise council tax. I hope he can see that the direction of travel will help alleviate some of the pressures he has highlighted.

[Rachael Maskell (York Central) (Lab/Co-op)]

The Government are notoriously bad at disposing of public land—I need only look at NHS Property Services and the seven-year wait on the Bootham Park hospital site, and at Ministry of Defence land—so will the Minister look at how that can be co-ordinated and handed over to Homes England so that we can get building the housing that is desperately needed in places such as York?

[Rachel Maclean]

The hon. Lady will be pleased to hear that this is a priority for us. I take issue slightly with her comment that we have a poor record of disposing of public land. Often, that public land is needed by hospitals and the MOD. So we are working closely and looking at where such land can be brought forward for housing. If it can, we absolutely will be doing that.

[Peter Grant (Glenrothes) (SNP)]

Among the SNP failures that the Secretary of State chose not to mention is the fact that, since the SNP came to government in 2007, we have been building new council and social-rented houses at nine times the rate of any Government covering England. Does the Minister accept that if successive Labour and Tory Governments had followed the SNP’s example in Scotland, the housing crisis in England would be far less than it currently is?

[Rachel Maclean]

No.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister very much for her responses. One of the key issues is for urgent planning decisions to be made. The Minister has a keen interest in Northern Ireland, where the population has risen by about 100,000 up to 1.9 million. One thing that needs to be done is on infrastructure decisions, which need to be made here nationally, not regionally. What discussions has she had with the Northern Ireland Assembly to ensure that those decisions can be made to the benefit of all of us in the United Kingdom of Great Britain and Northern Ireland?

[Mr Speaker]

Only if the Assembly sits.

[Rachel Maclean]

I thank the hon. Gentleman so much. He is an active participant in all the debates we have on these issues. I continue to work closely with him and his colleagues in Northern Ireland, because we can work together and learn lessons from each other.

[Lisa Nandy (Wigan) (Lab)]

Do the Government realise how absurd all of this sounds? Their own flagship Levelling-up and Regeneration Bill, which is currently making its way through the House of Lords, has measures in it to block new homes from being built, and yet the Minister stands here berating councils for getting in the way. All of this is happening because Conservative Back Benchers have more control of housing policy than their Government. So when the local Conservative MP in Cambridge says that his latest scheme “will not happen”, he is probably right, is he not?

[Rachel Maclean]

I do not quite know how to give that a serious response. I have just set out in huge detail all the work backed by public funding—taxpayers’ money—going into delivering the houses that people need up and down the country. As far as I can see, the only people blocking housing development are those such as the hon. Lady, who is objecting to developments in her own constituency.

[Lisa Nandy]

It is literally in the Government’s own Bill—they are trying to block new houses from being built. They have had 17 housing Ministers and three planning overhauls, and house building is at its lowest level for a generation.

[Lisa Nandy]

The Secretary of State wants to talk now—why did he not take the question? I suspect it is because he has again run into so much opposition from his Back Benchers about a story briefed only yesterday that he has had to abandon it. One hundred small and medium-sized house builders have been protesting to Downing Street and mortgages have gone through the roof. It really does take some brass neck to present that as anything other than an appalling record.

I have in my hand an analysis that shows that all this chaos will cost the economy £44 billion. Are the Government the only people left in Britain who cannot admit that the housing crisis, the mortgage crisis, the cost of living crisis and the economic crisis have one cause: Tory government?

[Rachel Maclean]

That was a flight of fantasy with several hundred questions. I am happy to engage with the hon. Lady on the detail of the clauses in the Levelling-up and Regeneration Bill, but I am proud of the Government’s record in bringing forward levelling-up across the whole country, with house building backed by billions of pounds of public funding and taxpayers’ money. As I said in answer to the hon. Member for Sheffield South East (Mr Betts), our house building record is greater than that of her party for the entire time they were in government.

[Ben Everitt (Milton Keynes North) (Con)]

17. What steps his Department is taking to end rough sleeping.

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[Andrew Lewer (Northampton South) (Con)]

T3. What assessment has the Department made of the use of cash retentions in the construction industry and of possible measures that could prevent the practice, which causes cash-flow issues and costly administrative burdens for subcontractors, including those involved in house building?

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

My hon. Friend will know that that policy area is led by the Department for Business and Trade. Nevertheless, it is important that we work closely with a wide range of stakeholders and businesses to achieve a consensus. It can sometimes be challenging, but we are clear that any solution must be a sustainable one that works for the industry and its clients, addressing the need for surety and fair payment.

[Christian Wakeford (Bury South) (Lab)]

T2. It has been more than 50 days since the Renters (Reform) Bill was introduced to Parliament. Despite ample parliamentary time, the Government have failed to set a date for Second Reading. In the last few weeks alone, the House has finished at 2 pm and 5 pm due to the Government bringing forward no business. Why do the Government not care about renters?

[Richard Fuller (North East Bedfordshire) (Con)]

T5. The recent transfer of the administration of home equity loans from Target to Lenvi has gone appallingly badly, with my constituents reporting unanswered emails and phones that ring out with no reply when they are looking to transfer their home in a time-critical phase. Will my right hon. Friend update me on what is going on with the administration?

[Rachel Maclean]

I have been having daily meetings with Homes England and the service provider. It is the case that there have been some issues with the transfer, as my hon. Friend highlights. I want anyone listening to this to know that they can contact either their local MP or the service line, and we will resolve it. I have insisted that additional call centre staff are available and extended working hours. We are very much seeing the issues being worked through at pace now.

[Mr Virendra Sharma (Ealing, Southall) (Lab)]

T4. According to figures from PricedOut, over the last 50 years housing has become over 13 times more expensive and tenants are now spending up to half their income on rent alone. If that trend continues, only one in three people born this year will own a home before they are 50. The Government’s scrapping of housing targets and surrendering to Back Benchers opposed to new housing will only make the situation even worse. When will the Government grow a backbone, stand up to those MPs and build the houses we need to avoid catastrophe?

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[Gareth Johnson (Dartford) (Con)]

T9. Property management companies are undoubtedly holding back home ownership. New homeowners are often obliged to sign up to contracts that they cannot leave. That leaves them stuck with inflated fees, and very often with poor services. I am sure the Minister agrees that management companies need their activities curbed; they need legislation imposed on them so that we can get back to a fairer system of housing.

[Rachel Maclean]

I agree entirely. I thank my hon. Friend for the excellent debate that he brought to Westminster Hall, in which we discussed these issues in detail. I am happy to reiterate to the House that we will legislate, when parliamentary time allows, to deal with many of the issues that he has raised that are affecting freehold homeowners.

[Mike Amesbury (Weaver Vale) (Lab)]

The Secretary of State said that he had the noble aim of abolishing the feudal leasehold system. Could he update the House on his progress on the abolishment of that feudal system?

Building Safety and Social Housing

Rachel Maclean Excerpts

Thursday 6th July 2023 Commons Chamber

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

It is a pleasure to conclude the debate on behalf of the Government.

Six years on—as the powerful and moving contributions to the debate have illustrated—the still unimaginable events of 14 June 2017 continue to demand searching answers from us as a country about who we are and who we aspire to be. They reaffirm the unshakeable commitment across this House to those most affected: the commitment to provide long-term support for recovery and the rebuilding of shattered lives, and to provide a legacy worthy of the 72 men, women and children who lost their lives. We honour their memory, and the courage and dignity of the bereaved and the survivors in the Grenfell community. I am pleased to see them represented here today; it was humbling and a privilege to have a conversation with a few of them before I came to the Chamber. Their quest for truth and justice and their campaigning, in the interests of others, to reform systems that so grievously failed them is humbling and inspiring in equal measure.

As we have heard, the issues raised by those in the Grenfell Tower community had been present for many years. Their calls for change went unanswered and their concerns were ignored. They were failed by the institutions and mechanisms developed to support and protect them. As the Secretary of State has said, we are determined to learn from the past so that no community ever again suffers as they have. More than anything, that must mean people being safe in their homes.

As the Minister responsible for housing, I am aware of the heavy debt we owe the Grenfell community. Over the past year, that has involved making homes with the most dangerous cladding safer, protecting leaseholders from unfair and punitive remediation costs, getting those responsible to face up to their financial and moral responsibilities, and fundamentally overhauling and strengthening the entire building safety system.

The Grenfell community has also rightly kept up the pressure on my Department to ensure that we never again ignore the voices of people living in social housing, and that it provides the safe, decent homes and respectful, good-quality services that they expect and deserve. Awaab Ishak’s tragic death underlined the urgency of that work, which we are taking forward through the Social Housing (Regulation) Bill, amended to include Awaab’s law—new requirements for social landlords to address hazards such as damp and mould within a fixed timeframe.

There is, of course, much more to do, and I do not underestimate the toll that six long years of waiting for the truth and for justice to be done has taken on the people of North Kensington. Like them, we keenly await the publication of the Grenfell Tower inquiry’s final report—we have already begun implementing recommendations in the phase 1 report—and the outcome of the ongoing Met police investigation. We also look forward to seeing a fitting and lasting memorial delivered at the Grenfell Tower site through the Grenfell Tower Memorial Commission, working in partnership with the community. I join the Secretary of State in paying tribute to the commission’s work. However, beyond truth and justice, the greatest legacy we can deliver is a continued commitment to listening, learning and acting to secure a better future for all—a profound commitment that I know is shared across the House.

Let me turn to some of the points raised by hon. Members in the debate. We heard from the hon. Member for Hammersmith (Andy Slaughter), from the SNP spokes- person, the hon. Member for Glasgow South West (Chris Stephens), and from the hon. Member for Putney (Fleur Anderson), as well as from the two Labour spokespeople, the hon. Members for Greenwich and Woolwich (Matthew Pennycook) and for Liverpool, Wavertree (Paula Barker). I thank them all for their contributions.

We recognised that sprinklers could play a greater role, so we lowered the threshold for the provision of sprinkler systems in new blocks of flats from 30 metres to 11 metres in 2020, following a consultation on sprinklers and fire safety measures, through changes to approved document B. Sprinklers are only one of a range of measures that can be provided in buildings, and building owners are already bound by a clear obligation to ensure that existing buildings have a suitable and sufficient fire risk assessment in place. Retrofitting sprinklers is not always the right option; other fire safety measures, such as measures recommended by phase 1 of the Grenfell Tower inquiry, may be more appropriate for an individual building.

I was asked how people living in buildings under 11 metres can be helped when they face expensive bills for remediation. It is the ultimate responsibility of building owners to ensure that residential buildings of all heights are safe, and the consensus is that the level of risk tallies with the height of the building. The risk to life is usually lower in buildings under 11 metres in height, which are very unlikely to need costly remediation to make them safe. Indeed, a fire risk appraisal of external walls conducted in accordance with the PAS 9980 principles will often find that lower-cost mitigations are more appropriate in low-rise buildings. Nevertheless, my Department has committed to looking at buildings under 11 metres where remediation costs are involved on a case-by-case basis. We think that is the right approach.

We have banned ACM cladding on all new builds. At the end of May 2023, 96% of all identified high-rise residential and publicly owned buildings in England had either completed or started work to remove and replace unsafe cladding, and 450 buildings—92%—no longer have unsafe ACM, with 84% having completed ACM remediation work. We continue to keep up the pressure to ensure that that job is finished.

[Fleur Anderson]

Is there a date by which the Minister would like to reach 100% removal of ACM cladding?

[Rachel Maclean]

Of course, we would all like to see that happen much more quickly. That is why we are continuing with the legislative measures that we have set out, including the Building Safety Act and all the other work that goes behind that, as the Secretary of State said.

I was asked about social housing regulation. The direction of travel is clear: residents have spoken and reform is coming to the social housing sector. We are committed to implementing the new regulatory regime enabled by the Social Housing (Regulation) Bill. I thank Opposition Members for assisting us with passing the Bill. The new regime will be implemented in 2024. The Secretary of State will consult on any directions to the regulator, and the regulator will then need to consult on its proposed consumer standards. That is just part of a wider programme of work to drive up the quality of social housing and reduce the number of non-decent rented homes by 50% by 2030. That includes tougher regulation and a strengthened housing ombudsman service, a review of the decent homes standard, and providing residents with more performance information.

Mr Deputy Speaker, 72 months since the Grenfell community lost 72 family members, friends and neighbours, the enormity of what happened that night in June 2017 remains inescapable. Those who never made it out of the tower paid with their lives, in the homes where they should have been most safe, for collective failings, including on the part of the Government, for which we have apologised. Six years on, those left behind continue to wait for answers and for those responsible to be held to account, not just today but every day, as they count the cost of precious lives cut short—six years of missing seeing loved ones grow up or grow old; missed life milestones; meals unshared; ordinary, everyday memories unmade. No apologies—no words—are enough to right those wrongs.

As the Secretary of State said, we will be judged not on our words but on our actions—actions to make homes safer and greener; to improve social housing and amplify the voices of residents; to make sure that those responsible step up or face the consequences; to provide long-term support for the Grenfell community for as long as it takes; to learn from the past, get to the truth and see justice done; and to ensure that everyone in our society has a safe, secure place to live that they are truly proud to call home. Let that be Grenfell’s abiding legacy.

Question put and agreed to.

Resolved,

That this House has considered building safety and social housing.

Freehold and Leasehold Reform

Rachel Maclean Excerpts

Wednesday 5th July 2023 Westminster Hall

[Jeremy Corbyn (Islington North) (Ind)]

It is a pleasure to take part in the debate. I thank the hon. Member for Dartford (Gareth Johnson) for securing it, and every one of us could amplify everything he said with very similar experiences from our own communities, even though the areas we live in are often very different geographically.

My constituency is spread between about 40% social rented, 30% owner-occupation and 30% in the private rented sector. The debate is essentially about owner-occupation and leaseholds, but within that 30% very few, or certainly a declining number, are in what I would call traditional freehold properties—where somebody owns the house and land, and their costs are their mortgage, if they have one, and all the relevant bills, but there are no service charges because there is no other involvement.

Any place that is now sold in my constituency as a single-family home inevitably gets bought by a property company and is divided up into a number of flats. Dividing a place up into flats is not of itself wrong, but the quality of the conversion is often a problem as is the resulting ownership issue. In my constituency, people who have bought a flat either in a new development or in a converted property are suffering appalling levels of stress; they believed they were going to have to pay a reasonable ground rent and reasonable service charges and management fees but then find after a very short time living there that they have no control whatsoever over any of those issues.

The system is very badly designed. Indeed, perhaps it was not designed at all, but it is so badly in existence that there is a positive incentive to manage badly, charge extortionately and be abusive towards those who live in these leasehold properties. This has been recounted by the hon. Members for St Ives (Derek Thomas), for Ellesmere Port and Neston (Justin Madders) and for Dartford and I can absolutely relate to it.

Many people have got in touch with me about this and I want to give an example. In a sense, the business model of those who buy into the leasehold sector is appalling and offers incentives in all the wrong directions. There are five examples of that. The company that owns the property sets out charges to the leaseholders in the property and will directly benefit from having unnecessary work done in the building. Totally unnecessary work is created by the management company, and the leaseholder has no say in whether it is done and no say in the contractor who does it, yet they have to pay for it. There is an incentive for the company to choose the most expensive contractor and then charge on for it. Some of these companies are also incredibly litigious and threaten to take flat owners to court to start proceedings for repossession as soon as there is any element of late payment. Remember that many people who buy leasehold flats for the first time are young and have young families. They are in the most expensive and difficult times of their lives, and there is the greatest pressure on them as a result, so the stress levels are huge. The companies consistently use the same small set of suppliers across many of their properties, and those suppliers are also complicit in the running up or invoicing of ridiculously high charges across their whole estate portfolio. When residents try to communicate with the companies, they get fobbed off, blocked, or threatened with legal action and legal letters. The stress levels are appalling.

Let me give an example about electricity:

“In our most recent service charge 3 months ago, we were collectively billed £4k for commons parts electricity”—

the common parts have the amazing total of 10 LED lightbulbs in them, and:

“This was 10x the estimated expense for the period. Upon inspection it became clear that the power provider…chosen for us failed to take a single meter reading for the entire year and ‘estimated’ our bill.”

When the residents highlighted that, the company demanded they pay the total figure anyway. They are now in dispute over it.

There are many examples of excessive charges for minor or often unnecessary works or, as the hon. Member for Dartford pointed out, ludicrous charges for the almost non-existent cleaning of common parts. That can be just running a hoover over the carpet once a month, yet people are told to pay several hundred pounds a year for that kind of thing. It is the same with refuse collection, rubbish collection and so on. There must be some big changes to that.

The last testimony I will give is from somebody who bought a flat that they believed would be affordable. They then discovered that the company was

“proposing decorating works on our building at a cost of £19800. We received a quote of £7600 for exactly the same work from a local contractor. Although we nominated this contractor, as is our right, they have chosen to go ahead with the company that they always use. We can challenge this at tribunal but we would need £8-£10000 upfront costs”.

They have to pay that even to get a hearing. If ever there was an area that needed substantial investigation and reform, it is surely this one. People feel disempowered, angry and frustrated. They cannot sell and cannot move, and they have no idea what charges are coming down the road.

I have dealt with many cases of leaseholders who either bought their place from the local authority under right to buy or who bought it from somebody else who did. They often dispute the capital works charge or service charge. Sometimes they are right and sometimes they are not, but there is a clear process by which they can make that complaint. They can make it to the local authority, which is accountable. It is not always perfect, but there is usually agreement at the end, because there is a degree of accountability. With the companies, there is no accountability whatsoever. Every power lies with the person who has invested money to make a vast return, and the returns that are being made on leasehold properties are enormous.

I hope that the Minister will recognise that the stress that we are expressing—

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

indicated assent.

[Jeremy Corbyn]

I see the Minister nodding; I thank her. I hope that she understands that the issue is not isolated to any one part of the country. The whole country is suffering from this, and we urgently need a serious process of leasehold reform that gives people some power over their own lives and in their own homes.

--- Later in debate ---

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

It is a great pleasure to respond to this debate and to serve under your chairmanship, Mr Sharma. I thank my hon. Friend the Member for Dartford (Gareth Johnson) for securing today’s debate, in which there is strong parliamentary interest. As many Members have highlighted, I have spoken about these matters many times in this Chamber and the main Chamber, but I am happy to set out in a lot more detail the Government’s position.

I thank the other Members who have contributed, including my hon. Friends the Members for St Ives (Derek Thomas) and for Congleton (Fiona Bruce), the hon. Member for Ellesmere Port and Neston (Justin Madders), the right hon. Member for Islington North (Jeremy Corbyn), and the hon. Member for Strangford (Jim Shannon), who highlighted many of the things that we can learn from working across our United Kingdom. I am grateful to him, as ever.

There is a broad consensus on the case for change. I want to reassure Members that the Government remain committed to creating a fairer housing system that works for everyone. We will introduce further reforms in this Parliament to address the historical imbalance in the leasehold system.

As this debate has shown, the imbalance stems from the unequal power dynamic inherent in leasehold ownership, in a system with landlords often acting in their own interests and leaseholders bound by a lease that can be decades old and not easily changed. As we have heard today, particularly from my hon. Friend the Member for Dartford, freehold owners may also be subject to the will of third party interests.

We have already taken important steps to address the matter, having introduced the Leasehold Reform (Ground Rent) Bill in May 2021—I thank the hon. Member for Greenwich and Woolwich (Matthew Pennycook) for his and his party’s support in passing that Bill. Since coming into force on 30 June 2022, it has prevented landlords in most new leasehold homes from charging any financial ground rents at all. That was a very important first step, but there is more to do to tackle the power imbalance.

We are committed to improving leasehold tenure—by helping existing leaseholders to better understand and challenge their charges or the services they pay for, take control of their homes or buy their freehold—and to providing a freehold alternative from the outset, with improved rights for those that pay estate charges.

As a tenure, residential leasehold is time-limited and control is shared with the landlord. The leaseholder’s decisions about their home, including the charges that they pay for services, are usually made by someone else—the landlord or the managing agent working for the landlord—but paid for by the leaseholders. The landlord might not even live in the building or have the same priorities and motivations in mind. We have heard multiple examples today about how that negatively impacts leaseholders. My hon. Friend the Member for Congleton is completely right to say that those are decent, hard-working people who have done the right thing and deserve to live in their homes in peace and security. It is the largest asset they are likely to buy, so it is wrong that they are being ripped off—if that is a parliamentary term.

High service charges are being levied for carrying out simple requests. Managing agents are not providing a level of service that leaseholders should expect. Urgent repairs are being neglected, crippling costs are levied for buying out or extending a lease and leaseholders are charged exploitative and increasing ground rents in exchange for no services at all. For freehold homeowners who already have an expectation of control over their properties, we understand the concerns raised today and we will act. We will continue our programme of action to remedy those abuses and provide the vision of home ownership that leaseholders should expect, which is greater control over their own home, greater accountability or involvement in key decisions on what they are paying for and, ultimately, a place of safety, comfort and security for them and their family.

[Gareth Johnson]

The Minister says in her speech that the Government will act to deal with the abuse by management companies and the imposition of fees for freeholders. Does she mean by “act” that legislation can be expected?

[Rachel Maclean]

I ask my hon. Friends and other Members for a little patience while I proceed through my speech. I want to set out precisely the Government’s commitment to legislation because I know that is the question that everybody wants to be answered and I have limited time in which to do that.

My hon. Friends the Members for Dartford and for Congleton pointed out that freeholders on new estates must pay charges towards the maintenance or upkeep of communal areas. The obligation to pay those charges might be provided by a deed of covenant or through an estate rent charge that forms part of the purchase contract. The Government believe that when buying a home, it should be clear to potential purchasers what the arrangements are for the maintenance of roads and upkeep of open spaces, public or otherwise. That information is most often set out in a freehold management inquiry form, which is published by the Law Society and widely used across the sector. However, I know that that information was not provided to some, or perhaps not drawn to their attention, at the point of purchase. Furthermore, in many cases contracts do not specify, limit or cap those freeholder charges. To compound matters, when people receive an invoice, they are not provided with information about what the charges cover. Much as with leaseholders, that lack of transparency, both at the homebuying stage and when people have settled into their property, leaves homeowners in a vulnerable position and is something that the Government intend to address.

Leaseholders already have certain protections and rights that will enable them to hold management companies to account. Freehold homeowners have no equivalent, even though they might be paying for the same or similar services, as highlighted in the remarks by my hon. Friends. The current situation is unfair. Where they are required to contribute, it is not appropriate that people have limited rights to challenge those costs, and we are committed to introducing legislation to plug that gap. We intend to create a new statutory regime for freehold homeowners based on the rights that leaseholders have, ensuring that estate management charges are reasonably incurred, that services provided are of an acceptable standard and that there is a right to challenge the reasonableness of charges at the property tribunal.

We will also give a right to change the provider of maintenance services by applying to the tribunal for the appointment of a manager. That might be useful if a homeowner is dissatisfied with the service they are receiving or there is a significant failure by the estate management provider in meeting their obligations. We will also consider the option of introducing a right to manage for freehold homeowners. It is not only estate management charges that need to be reasonable; that principle must also apply to administration fees that individual homeowners may face in their dealings with the estate management company.

Turning back to leaseholders, as highlighted by the hon. Member for Ellesmere Port and Neston and the right hon. Member for Islington North, there is a similar situation. Leaseholders complain of unreasonable and excessive service charges and we strongly believe that service charges should be transparent and communicated effectively, with a clear route to challenge or redress if things go wrong. Many landlords and managing agents already demonstrate good practice and provide relevant information, but too many do not and are failing to provide sufficient information or clarity to leaseholders, especially over fees and service charges.

We recognise that the existing statutory requirements do not go far enough to enable leaseholders to identify and challenge unfair costs. That is why we will take action to support and empower leasehold homeowners. We will take action to increase service charge transparency to help leaseholders better understand what they are paying for, make it harder for landlords or managing agents to hide rip-off charges and enable leaseholders to more effectively challenge unreasonable fees or charges. I also want leaseholders to know that they can seek free advice from an organisation funded by the Government, the Leasehold Advisory Service, if they are concerned about charges that they are asked to pay.

[Jeremy Corbyn]

That sounds like a very promising development. Is the Minister aware that there is sometimes a problem with the ability to challenge because of legal processes or the enormous costs involved, so some people, such as the residents I was referring to, do not have the power to make a challenge even though that would be very justified?

[Rachel Maclean]

I thank the right hon. Gentleman for that point and he is absolutely right. He will hear about some of the things we are going to do to make it easier and fairer and not as expensive to challenge, and I shall to set out some more detail now.

When leaseholders challenge their landlord, we know, as the right hon. Gentleman said, that they are sometimes subject to unjustified legal costs, and we are committed to ensuring that leaseholders are not subject to them and, where appropriate, can claim the legal costs from the landlord, which certainly seems fairer than the current situation. Currently, if set out in the lease, leaseholders might be liable to pay their landlord’s legal costs regardless of the outcome of a dispute—even if they win the case. That is a classic case of heads you win, tails you lose. Also, the circumstances in which a leaseholder can claim their own legal costs from a landlord are currently very limited. That may lead to leaseholders facing higher bills than the charges being challenged in the first place and can deter leaseholders from taking their concerns to the courts or property tribunal, as the right hon. Gentleman says.

Whether on freehold estates or in leasehold or commonhold blocks, we are committed to raising professionalism and standards among all property agents, protecting consumers while defending the reputation of good agents from the actions of rogue operatives. I know that my hon. Friend the Member for Dartford has been working on that issue in his constituency, and I can assure him that I will continue to work with industry—I have regular dialogue with it—on improving best practice across the sector, including on codes of practice for property owners.

Ground rent was particularly highlighted by the hon. Member for Ellesmere Port and Neston, and we are concerned about the escalating costs of ground rents for leaseholders who still pay them. As many will know, we asked the Competition and Markets Authority to investigate the potential mis-selling of homes and unfair terms in the sector and it has been successful in securing commitments benefiting over 20,000 leaseholders, including removing doubling ground rents.

Both enfranchisement and the right to manage help give leaseholders greater control. In most cases managing agents would still be used, but they would be accountable to leaseholders directly, rather than a third-party landlord, ensuring that interests are aligned. For those who want greater control over their homes, many leaseholders find the process for extending their lease or buying their freehold prohibitively expensive, complex or lacking in transparency and we equally understand that many right-to-manage applications fail on technicalities attributed to overly detailed procedure, which is why we asked the Law Commission to look into that. It has since published reports on enfranchisement, valuation and the right to manage.

To reduce the cost of enfranchisement, we are committed to tackling the problems with these existing arrangements at their root. We will abolish marriage value and cap ground rents in enfranchisement calculations, so that leaseholders who currently pay onerous ground rents do not also have to pay an onerous premium to buy their freehold. These changes will result in substantial savings for leaseholders, particularly those with less than 80 years left on their lease. These changes will also make sure that sufficient compensation is paid to landlords to reflect their legitimate property interests.

To make the process simpler and more transparent, we will introduce an online calculator to help leaseholders understand what they will pay to extend their lease or buy it out, and the Government are committed to reforms to improve access to the existing right to manage, whereby leaseholders may take over the management of their block without having to buy the freehold. We want to make the process of exercising the right to manage simpler, quicker and more flexible, and make the operation of it more effective. To that end, we are carefully considering the detail of the Law Commission’s recommendations.

To give homeowners greater control, we want to make sure that the benefits of freehold ownership are extended as far as possible. We remain committed to banning the sale of new leasehold houses so that, where possible, all new houses are provided as freehold from the outset. For flatted developments, we want to reinvigorate commonhold so that it can become a mainstream and widespread freehold alternative to leasehold for both new and existing flats. Again, we are reviewing the Law Commission’s detailed recommendations, which propose legal fixes that will make commonhold a desirable alternative in more and more settings. We have established the Commonhold Council, made up of consumer and housing industry experts, to advise the Government on how to prepare both consumers and the market for the widespread use of commonhold. Furthermore, the Leasehold Reform (Ground Rent) Act 2022 is levelling the playing field for future commonholds as well as benefiting new homeowners. It removes ground rents from new leaseholds, and the associated financial incentives for developers to build leasehold over commonhold, where ground rents were never permitted.

I thank my hon. Friend the Member for Dartford for prompting such a vital debate and everybody for their contributions, and I am pleased that we have been able to discuss these issues properly. We plan to introduce reforms in the King’s Speech, which will take place in the autumn, so the reforms should take place within this Parliament. I recognise that every single Member would like a more detailed timeline, but I will continue to have these discussions, as Members have implored, both with my colleagues in the Department and with those across other channels who are responsible for tabling legislation.

[Fiona Bruce]

Would the Minister be willing to have a discussion with the residents I have referred to in more than one debate? I would be very grateful.

[Rachel Maclean]

Of course. I would be absolutely delighted to meet my hon. Friend’s residents. I implore her to contact my office so that we can arrange that as soon as we can.

I hope this debate has demonstrated to the House, leaseholders and homeowners on freehold estates across the country our continued commitment to reform and to making things better. I am grateful to Members across the House, campaign groups and members of the public for highlighting the difficulties that homeowners face. As I am sure Members can appreciate, this is a significant undertaking, and I look forward to coming to the House with more detail as soon as I am able to.

Housing Infrastructure: Essex

Rachel Maclean Excerpts

Wednesday 21st June 2023 Westminster Hall

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

It is a huge pleasure to respond to my former colleague in the Home Office, my right hon. Friend the Member for Witham (Priti Patel), and if you will indulge me for one moment, Dr Huq, to congratulate her from the Dispatch Box on her recent honour. She is now a dame, which is incredibly well deserved. I also thank her for her kind words about my work as a Minister. If I am a good Minister, it is because I learned it all from her. I saw her work as the Home Secretary, which is definitely the most difficult job in Government.

Back to matters connected to Witham, we share my right hon. Friend’s desire for the housing and planning system to work for absolutely everybody. We want to make this a country of home ownership. We are the party of home ownership, and we completely agree with her that we want to enable young people to buy a home of their own, and for families to have peace of mind that where they sleep is safe. Housing is at the heart of our efforts to level up growth across the country, including in Essex. That is the power of levelling up: it sees no community left behind. Essex is a thriving and growing area that contributes to the Treasury, as my right hon. Friend pointed out. It is one of the fastest growing parts of the country.

The Government are standing behind the ambitions of Essex and enabling it to unlock even more potential for its residents and people who would like to live there. That is why we have invested significantly in the renewal of town centres across the county. She mentioned a few of them, as did my hon. Friend the Member for Thurrock (Jackie Doyle-Price). One example is the £85 million investment that we are putting into Harlow, Colchester and at Grays and Tilbury in the Thames estuary through the towns fund. A further £80 million will be invested in four levelling-up fund projects in Southend, Harlow, Colchester and Tendring. Essex is also the only county set to benefit from the creation of not one but two freeports: Thames Freeport in the south of the county and Freeport East in the north-east. I know that those will be huge economic drivers for the county.

My right hon. Friend the Member for Witham talked in huge detail about all the knotty issues connected to the planning system, and I fear that I will detain the House for too long if I elaborate at great length, so I will pick out a few key points. I will, however, happily respond to her invitation and meet with her, and with some of the groups that she mentioned, such as the all-party parliamentary group for the east of England, to discuss the matter in more detail. She is right in her central observation that we cannot do this in our Department alone; we have to bring together all the different levers of Government—Government funding, the Treasury, the Department for Levelling Up, Housing and Communities, and transport, as she specifically mentioned.

My right hon. Friend expressed the frustration of her constituents when they see development that is not in line with the local plan. That is why we are working to strengthen the role of local plans in the system through all the measures in the Levelling-up and Regeneration Bill. That is absolutely right, because residents feel frustration when local plans are not in place, or cannot be enacted. Speculative development then comes in, leaving local communities feeling ignored. Communities in Witham are very fortunate to have such an effective champion, so their concerns are being heard here. That is why we are making changes to the planning system through the Levelling-up and Regeneration Bill, including to strengthen the role played by neighbourhood plans, which are a valuable means for communities to shape their surroundings.

The national planning policy framework includes important protections for neighbourhood plans where speculative applications have been submitted and conflict with the plan. For instance, if a local planning authority cannot demonstrate a five-year supply of housing sites, which is currently required, a neighbourhood plan may benefit from protections. We are consulting on proposed changes to the paragraph 14 protections in the framework, which, as my right hon. Friend will know, will extend the time period that qualifying neighbourhood plans are afforded under paragraph 14 from two to five years, in recognition of the time it takes to produce a neighbourhood plan. We propose removing the requirement that a local planning authority has at least a three-year supply of deliverable housing sites and that its housing delivery is at least 45% of what was required over the previous three years. That will enable more neighbourhood plans to benefit from those protections, and I hope her residents will find that change reassuring.

The changes will empower local communities and place them at the heart of the planning system, and will remove barriers to building more homes. I will make a few remarks on the five-year land supply because, again, my right hon. Friend has effectively said how controversial that can be and how it can lead to developments coming forward in a way that does not come under the support of local areas. We propose removing the requirement for local planning authorities to maintain a five-year housing supply when they have an up-to-date local plan. We intend to make changes to simplify the policy as well as to clarify the use of historical over-supply in five-year housing land supply calculations. We will come forward with the outcome of our consultation analysis. That will provide yet more incentives for local authorities to work closely with their communities to agree local plans.

It is sometimes reported that we have dropped house building targets. That is not the case. I assure colleagues that we are absolutely committed to building the homes this country needs—the 300,000 homes that we need to be building. We are delivering them through a plan-led system with the consent of local communities that commands the support of Parliament, our colleagues and local democracy, which is at the heart of what we are doing.

[Jackie Doyle-Price]

I welcome the emphasis on local decision making—we all share that sentiment. The proposed Purfleet development in my constituency will result in 2,500 new homes on the River Thames, 45 minutes from the City of London, and they will sell like hot cakes. That is supported by the Government through the housing infrastructure fund and the development has been gifted the public land on which to build. The community wants it and fully supports the planning application, but National Highways is blocking it. What can we do to ensure a proper joined-up approach from Government so that the homes we need are delivered, because some other Departments are getting in the way?

[Rachel Maclean]

My hon. Friend raises an issue that I do not have any personal knowledge of, and it would be inappropriate for me to comment on a planning application. However, if she will allow me, I will investigate that issue and see what more I can do to unblock it in my capacity as planning Minister. If she is referring to the housing infrastructure fund, I may be able to assist her.

I will finish by raising the issue of the class Q permitted development raised by my right hon. Friend the Member for Witham. The part 12 class Q committed development right permits development by or on behalf of the Crown for up to 12 months in response to an emergency. There are two key considerations. It must be an emergency defined as an event or situation that threatens serious damage to human welfare in a place, the environment of a place or the security of the United Kingdom. To make use of the right, the land must be Crown land. I am aware, as she is, that the Home Office has sought to use the right to provide temporary accommodation for asylum seekers. The House will need to forgive me because this is a live issue and it is subject to live legal proceedings. I therefore cannot comment on it due to fear of prejudicing this issue. My right hon. Friend has rightly brought the views of her constituents to this place, and I and other Ministers have taken note of them.

I would like to finish by thanking my right hon. Friend. It was an enormous pleasure and privilege for me to work with her for an all too brief period in the Home Office. It is a huge pleasure now to be working with her and other colleagues collaboratively to support her ambitions to ensure that Essex remains a fantastic place to live and work, and to be represented by her.

Question put and agreed to.

Housing: Rhondda

Rachel Maclean Excerpts

Wednesday 21st June 2023 Westminster Hall

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

It is a great pleasure to serve under your chairmanship, Ms McVey, although I have not had the pleasure of serving in the youth theatre either with you or with the hon. Member for Rhondda (Sir Chris Bryant). That is extremely disappointing, but I am not able to rectify that now. Nevertheless, I very much thank the hon. Member for his speech on behalf of his constituents and the way he has conveyed the sense of pride in place for his constituency, which I am sure we all recognise as Members of Parliament. He has done a great job. I have visited his constituency, and although I have not spent a lot of time there I recognise the picture he paints. I look forward to receiving his report and I will study it. On issues such as housing, which he cares so much about—as do we all—it is important that we work across our United Kingdom. I want to reassure him that we work closely with the Welsh Government through our Interministerial Standing Committee channels.

The hon. Member has raised a wide variety of issues relating to different policy areas and Government Departments. Some of them are the responsibility of the Westminster Government and some sit with the Welsh Government. I know that everyone will have heard his remarks and will have been reminded of the importance of working together. These might be separate policy areas, but ultimately, they come together in someone’s home, and that is how we have to think about it. In this area, we value the strength of our Union and see its importance. Devolution both reinforces and strengthens the powers of his local authority, Rhondda Cynon Taf, supporting it with funding and enabling local authorities to make decisions close to the people they serve.

What are the Westminster Government doing to alleviate and respond to the concerns the hon. Member has raised? The most important thing is the way we support all the devolved nations via the block grant, which for the Welsh Government amounts to £19 billion just for this financial year. That grant is for them to spend on devolved matters such as housing, schools and transport. We also provide additional infrastructure investment, not only to deliver the homes we need but to nurture strong communities throughout the UK. It is important that we work closely to level up growth, opportunity and pride; that is at the heart of this Government’s vision and a central mission for all of us. The people of the United Kingdom expect us to come together. This is a great opportunity to see how we are doing that and to draw on the combined strengths of the United Kingdom.

Let me focus on the economic context, which is at the heart of what the hon. Gentleman spoke about. He talked about the financial pressures on all our citizens, as well as mortgages, rents and the cost of living; all of those interact. The UK Government are taking determined steps to beat inflation. Ultimately, inflation is the enemy we must all defeat because it has a direct impact on people’s ability to pay their mortgages. The hon. Gentleman highlighted the high rate of home ownership in his constituency, and of course the rate of home ownership is affected by people’s ability to meet their mortgage payments, or their rental costs if they are in the private rented sector. Help with mortgages is available for certain people via the support for mortgage interest scheme, and the Chancellor is taking significant action in that space by talking to mortgage lenders. I encourage people to talk to their mortgage lenders, which have been instructed to deal with their customers fairly, especially at this time of severe economic stress.

It is also important to recognise the support the Government have put into helping people across the UK, including those on low incomes or no income, whether or not they are homeowners. There is a high number of people on lower incomes in the hon. Gentleman’s constituency, and for those most in need we have put in place a generous UK-wide support package, which includes up to £900 in cost of living payments for households on eligible means-tested benefits this year, a disability cost of living payment of £150 in the summer, and an additional £300 cost of living payment to pensioners to help with the coming winter. To protect the most vulnerable, we have uprated working age and disability benefits by 10.1% from April. That equates to an additional £1 billion of funding, including the Barnett impact, to help households with the costs of their essentials. In England, that funding goes towards the household support fund. It will be up to the Welsh Government to decide how to use the extra Barnett funding.

Energy costs are an additional pressure on household budgets. The hon. Gentleman rightly raised the issue of some homes being more difficult to insulate, owing to the way in which they were constructed, and their not being up to certain current standards. We want his constituents to be warm and dry, regardless of the age of the property they live in, and the UK Government have taken significant steps to help people with their energy bills.

As the Chancellor announced in the spring statement, the Government are maintaining the energy price guarantee at £2,500 until the end of June. That will save households an additional £160 and bring Government support with energy bills since October 2022—so including the most extreme periods of the winter, when people will have needed to have their heating on—to £1,500 for a typical household. Those measures ensured that households across the UK were supported through the spring, and certainly while retail energy costs remained high. Hopefully, those costs are starting to turn downward, and we hope that continues.

The hon. Gentleman also raised a number of issues about the private rented sector—the commercial rented sector—notwithstanding the fact that his constituency contains a relatively high proportion of homeowners. The private rented sector plays a vital role in any housing market across the UK, and I recognise the fact that the Welsh Government have their own schemes. The hon. Gentleman touched on some of those, and they are obviously for the Welsh Government to administer. He talked about the impact of the empty homes grant. There is also Help to Buy in Wales, and the leasing scheme.

There are a number of ways in which any Government can help citizens, and we are always happy to talk to our counterparts in Wales. I believe I have a meeting quite soon with my counterpart in the Welsh Administration, and our officials meet regularly to discuss how the schemes work and what is the best way to get help to people who really need it.

The hon. Gentleman talked about section 21 no-fault evictions. He will be aware, as will the House, that we intend to fulfil our manifesto commitment to ban section 21 evictions. We have introduced the Renters (Reform) Bill to Parliament for its First Reading, and we are looking forward to the Bill progressing so we can begin the process of enacting those provisions. My understanding is that we are working closely with the Welsh Government so that they may align their measures, should they choose to do so, with the measures we are taking through English legislation. We want and expect the provisions in the Renters (Reform) Bill to cover Wales as well as England.

The hon. Gentleman highlighted the impact of section 21 evictions on his constituents, which he has seen through his casework and surgeries. That is why we want to bring the Bill forward. We know that one of the most significant anxieties that private renters have is the fear of a section 21 eviction—the retaliatory eviction that we hear about so often. When tenants have to report a significant problem or fault with their property, whether it is damp or mould, a broken boiler or something else that makes the property dangerous, they fear that instead of fixing it, the landlord will simply evict them and make them homeless. That adds to the pressure on homelessness services and temporary accommodation, which, as the hon. Gentleman brought to life, exists in Wales as well. That is why we are taking action to remove that section 21 power.

At the same time, we need to be completely fair to landlords who need to regain their property if tenants are abusing it. Just as there are good and bad landlords, there are good and bad tenants, if I can put it that way. If a landlord is renting their property in good faith to a tenant, and that tenant has damaged it in some way or is engaging in antisocial behaviour, it is absolutely right that the landlord can regain their property to restore that confidence that it will not be damaged. They should also be able to move back into their property or sell it on the open market if they wish to do so.

The hon. Gentleman also talked about social housing. We recognise that it is a vital addition to any housing market, which is why we in England are investing considerable sums of money to ensure that there is social housing across the nation for the people who need it. We have delivered our £11.5 billion affordable homes programme in England, and I encourage the Welsh Government to follow in our footsteps and deliver more social housing to meet the need of people in the hon. Gentleman’s constituency and across Wales. I thank the hon. Gentleman and I look forward to reading his report.

Question put and agreed to.

New Housing Supply

Rachel Maclean Excerpts

Monday 5th June 2023 Commons Chamber

[Mr Clarke]

I think it is much more about the developers seeking to make sure that they can sell the homes that they are building and about their having a supply of land predictably available to allow them to build into the future. Developers are obviously very constrained at the moment by the scarcity of supply.

The consequence of where we find ourselves is that, according to Schroders, the last time house prices were this expensive relative to earnings was 1876, the year that Victoria became Empress of India. That should make us all reflect on what kind of society we have become. Clearly, part of the problem is that we need to control immigration more strictly, and I strongly believe that the numbers announced just before recess were unsustainably high, but this is fundamentally a home-grown problem. Our society does not build the homes that we need to accommodate our existing population, and therefore we need to establish clear targets for housing supply. Doing so is not some kind of Stalinist five-year plan; it is the best way we have yet identified to prevent councils from backsliding on their responsibilities and caving in to what are often small, if noisy, pressure groups. It is my view that the regrettable decision taken by the Prime Minister last year to weaken those targets by removing their legal force was a mistake that has already had far-reaching consequences.

I am prepared to have a sensible debate about how we set our housing targets. We could change our approach and take as our starting point the existing occupied housing stock of an area and apply a rate at which it should be increased in line with the national house building target of 300,000 homes a year. Urban areas would see the highest levels of need, allowing a brownfield-focused policy, and no part of the country would be asked to contribute more than its fair share. This stock-led starting point for a standard method would remove the reliance on discredited housing projections, and it could be nuanced with carve-outs for AONBs, sites of special scientific interest and places with high concentrations of holiday lets or, indeed, where historic drivers of demand, such as university expansion, have ceased to exist.

One thing I would say is that we cannot insist that the green belt should be out of bounds wholly and completely, as the Prime Minister implied recently. The green belt was a 1940s mechanism to prevent urban expansion, pretty crudely drawn on the map. It is not—I repeat, not—a sophisticated environmental protection measure. It is, however, the beneficiary of effective branding. We have to raise awareness that about 11% of our brownfield land lies within the green belt and that 35% of the green belt is intensive agricultural land of minimal environmental significance. The public deserve to know that. Perhaps areas of the green belt that do not have genuine environmental value could be designated as orange or amber belt, capable of being developed in exchange for substitution elsewhere.

There are other things I could talk about. I could talk about the onerous nutrient neutrality rules, which are blocking huge swathes of housing from the Solent up to Darlington.

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

indicated assent.

[Mr Clarke]

I can see my hon. Friend the Minister nodding from the Front Bench. I urge the Government to act on this issue. There could be a grand bargain, whereby we carve house building out of the Conservation of Habitats and Species Regulations 2017 in exchange for more robust action on the actual polluters—that is to say, our water companies and bad farming practice. I will say no more on that.

As we heard from my hon. Friend the Member for Carlisle (John Stevenson), we need the appropriate infrastructure to make sure that new developments succeed. That is certainly something I want to see in Coulby Newham in my constituency, where new homes are in contemplation at scale. I agree with my right hon. Friend the Member for North West Hampshire (Kit Malthouse) on the importance of aesthetics. We need to build beautifully to win the argument with communities that we can build well. I also agree with my right hon. Friend the Member for Haltemprice and Howden about new garden towns and cities. Where is the ambition that led to Welwyn Garden City or Milton Keynes? It is vital that we try to concentrate developments where they can make the most difference, which will often be around the capital.

My final point—I crave your indulgence on this, Madam Deputy Speaker—is that this is a cross-party issue. It is an area where we need to work together and not take cynical advantage where politicians or councils of the opposite party try to do the right thing, because it is the easiest campaign in the world to fight new house building, but it is against the interests of this country. We risk becoming a profoundly unequal society, fractured on the twin fault lines of low home ownership and unaffordable rents for cramped, undesirable properties. That is not progress. That is not something of which any of us can be proud. I do sense that the mood in the House is changing on this question. I profoundly hope that Government policy will follow suit.

--- Later in debate ---

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

It is a pleasure to respond on behalf of the Government. I thank my right hon. Friend the Member for Haltemprice and Howden (Mr Davis) for securing this important debate. It is a tribute to him that so many people have come to the Chamber to reflect the experiences of their constituents and to speak about local housing conditions.

I thank the hon. Member for Stretford and Urmston (Andrew Western); the two former Housing Ministers who spoke, my right hon. Friends the Members for North West Hampshire (Kit Malthouse) and for Middlesbrough South and East Cleveland (Mr Clarke); the hon. Member for North Antrim (Ian Paisley); my hon. Friend the Member for Northampton South (Andrew Lewer); the hon. Member for Weaver Vale (Mike Amesbury); my hon. Friend the Member for Rugby (Mark Pawsey); the hon. Member for North Shropshire (Helen Morgan); my hon. Friend the Member for Carlisle (John Stevenson); the hon. Member for York Central (Rachael Maskell); my hon. Friends the Members for Milton Keynes North (Ben Everitt), for South Thanet (Craig Mackinlay) and for Waveney (Peter Aldous); my right hon. Friend the Member for Chelmsford (Vicky Ford); and my hon. Friends the Members for Isle of Wight (Bob Seely) and for North Devon (Selaine Saxby). All of them gave thoughtful, constructive, knowledgeable and, in some cases, rightly challenging contributions.

The points that have been raised today have underscored the importance of this Government’s mission to drive up housing supply and to deliver on our manifesto commitment of delivering a million additional homes by the end of this Parliament. They have emphasised the urgency of our work to build more homes of all tenures in the places where they are so desperately needed. [Interruption.] Is somebody trying to intervene?

[Bob Seely]

I was looking for a point to come in to show my support for the Minister. I remind her that this Conservative Government have averaged 222,000 homes a year, when new Labour managed about 171,000. Therefore, even when we are doing allegedly badly, we are still 50,000 ahead of Labour.

[Rachel Maclean]

I am grateful to my hon. Friend for making that point, which I was just about to make.

The Government remain committed to our ambition of delivering 300,000 homes a year—homes fit for a new generation, as my right hon. Friend the Member for Haltemprice and Howden said. I agree with him: as a Conservative, I support a property-owning democracy, and despite the economic challenges of the pandemic, the war in Ukraine and global inflation, we have made real progress towards that target. In 2021-22, more than 232,000 homes were delivered—the third highest yearly rate in the last 30 years. Since 2010, more than 2.3 million additional homes have been delivered. That is the achievement of a Conservative Government, and it is fantastic compared with the woeful record of the last Labour Government.

At the same time, we are not complacent about the scale of the challenges that have dogged England’s housing market for decades, as many hon. Members have mentioned: demand outstripping supply, local shortages and residents being priced out of the places they grew up in. That is why we have committed £10 billion of investment to increase housing supply since the start of this Parliament to unlock, ultimately, more than 1 million new homes.

Hon. Members will know how committed the Government are to the supply of affordable housing. I think every single hon. Member who spoke referred to that. That is why, through our £11.5 billion affordable homes programme, we will deliver and are delivering tens of thousands of affordable homes for both sale and rent.

Moving on to the specific campaign or proposal from my right hon. Friend—

[Mike Amesbury]

Will the Minister give way?

[Rachel Maclean]

I will not at this point, if the hon. Gentleman will forgive me, because I have a lot to get on the record.

My right hon. Friend the Member for Haltemprice and Howden has passionately advocated for new towns. We agree that an ambitious pipeline of housing and regeneration opportunities is crucial. I am a representative of a new town, Redditch, which currently houses about 70,000 people, so I know how successful and how important those developments can be. That is one of the reasons why we are already supporting delivery at scale along the lines he suggested through several funds, including the garden communities programme, which will support the delivery of more 3,000 homes by 2050, most of them in the north, the midlands and the south-west.

To pick out a couple of examples, Halsnead garden village in Knowsley will deliver more than 1,600 new homes in Merseyside, along with new businesses. Another, West Carclaze garden village, will support up to 1,500 new homes in an innovative and sustainable new community that promotes the health and wellbeing of its residents. My right hon. Friend the Member for Chelmsford noted the fantastic development in her local area, and I look forward to continued active discussions with her about the proposals in her Affordable Housing (Conversion of Commercial Property) Bill.

We must also work to unlock large complex sites through initiatives such as our housing infrastructure fund, which my hon. Friend the Member for Carlisle has welcomed in his area. The fund delivers the infrastructure needed to ensure that new communities are well connected and supported by local amenities.

New towns, as my right hon. Friend the Member for Haltemprice and Howden rightly asserted, can deliver high-quality, sustainable urban development and make an important contribution to housing supply. However, they require considerable resources and co-ordination, a long-term vision or masterplan, strong local support, enabling infrastructure and a significant capacity and capability commitment that is often beyond the abilities of local authorities.

For all those reasons, the Government believe that new towns can be part of the solution, but not the whole solution, to alleviate housing demand. They should be considered alongside regeneration opportunities to make the most efficient use of brownfield land and maximise the benefits of existing transport infrastructure. All our reforms are based on the principle that we will deliver housing only with the consent of communities and elected representatives at all levels. We know that wherever development takes place, local people will express the same concerns, so we have to get it right.

[Kit Malthouse]

Would the Minister at this point like to address the issue that a number of us have raised about the removal of hard targets and the uncertainty that that creates, particularly for the industry? For example, as she will know, gearing up to deliver 300,000 homes a year is a huge logistical exercise that requires massive capital investment to produce bricks, building machines and all sorts of stuff. That requires a very long horizon of certainty of delivery. If there are no targets, how is she going to give that certainty to industry?

[Rachel Maclean]

My right hon. Friend will, I hope, hear the remarks about that later in my speech.

Unfortunately, I cannot do justice to all the questions that are being asked, but I will touch on the importance of a healthy and diverse housing market, including the SME builders that were rightly mentioned by my hon. Friend the Member for Northampton South. We have launched the levelling up home building fund, which provides £1.5 billion in development finance to SMEs and modern methods of construction builders. Our Levelling-up and Regeneration Bill makes changes to the planning system to make it much easier for SMEs to operate.

Every Member has spoken about the importance of a modern, responsive and transparent planning system. I think it vital that our reformed planning system helps to bring certainty to communities and developers. That will enable them to take those positive steps towards building more housing, regenerating their local areas and supporting economic growth.

To address the point on which my right hon. Friend the Member for North West Hampshire challenged me, he will know that we have just concluded a consultation on the NPPF. A number of those policy questions are live and the Government will respond as quickly as possible to provide that certainty to the market and to local authorities. However, it is a huge consultation and it is important that we get it right.

[Mike Amesbury]

Does the Minister believe that building 35 first homes for first-time buyers is sufficient or ambitious?

[Rachel Maclean]

I am very proud of the Government’s record of building affordable homes and homes for young people.

I am aware that I need to conclude my remarks, so let me reiterate my huge thanks to my right hon. Friend the Member for Haltemprice and Howden. He is absolutely right to articulate so powerfully the case for driving up housing supply. That is our ambition—to build the homes that this country needs—and that is what this Conservative Government, working with Members on all sides of the House, will achieve.

Oral Answers to Questions

Rachel Maclean Excerpts

Monday 5th June 2023 Commons Chamber

[Dr Luke Evans (Bosworth) (Con)]

6. For what reason he has written to 10 planning authorities in England warning of designation.

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

The Government expect all local planning authorities to deliver an efficient and effective planning service. On 12 April, my right hon. Friend the Secretary of State wrote to 10 local authorities that did not meet the required performance levels for speed of decision making on non-major applications. Those local authorities have been given the opportunity to demonstrate improved performance. If the performance falls below the required threshold, the Secretary of State will use his powers to designate the local planning authority later this year.

[Dr Evans]

There are 329 local planning authorities in England, 315 of which performed above the 70% expected performance rate. With others in Leicestershire all above 84%, my local council, the Lib Dem-run Hinckley & Bosworth Borough Council, was at 46%, which is the lowest level in the country. The staff in the department are doing their best with the Lib Dem failures, but what more can a local MP and the Government do to help support the staff and our community to get the support they need?

[Rachel Maclean]

I thank my hon. Friend for bringing this important matter to the House’s attention. Where authorities fall behind, as in the case of that Lib Dem-run local authority, which he has highlighted effectively, we will not hesitate to take action. We are working to provide all local authorities with the support they need, including by increasing planning fees and ensuring that planning departments have the skills and capacity they need. I am happy to meet him to discuss this further.

[Anthony Mangnall (Totnes) (Con)]

7. Whether his Department is taking steps to change the balance between short and long-term rentals.

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

We are consulting on a registration scheme for short-term lets and on the introduction of a short-term let use class and associated permitted development rights. Those changes would give councils more control over the number of new short-term lets and help them to meet local housing needs.

[Anthony Mangnall]

I appreciate the Minister’s response, but where we have non-unitary councils it turns out that the Government’s measure of 200% council tax will see 92% go to counties and only 8% to districts. Will that be looked at? In addition, will we also examine how we can incentivise long-term landlords? We demonise landlords at our peril and we need to make sure that if we are going to repeal section 21, we do it in a way whereby we can offer them justice on being able to remove tenants where they need to do so.

[Rachel Maclean]

My hon. Friend is right to highlight the Government’s progress on all the work we are doing to be fair, not only to landlords, but to tenants, who have suffered some appalling experiences in many cases. That is why we are bringing forward the legislation, which will be a balanced package, but he is right to highlight the issue of council taxes and I know he is having discussions with the Treasury on that matter. We are determined to make sure that local authorities have the right balance between having those holiday and tourist areas, and homes for local people.

[Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)]

We are only a few months away from having millions of people surging to the west country, and to rural and coastal communities right across the land. That puts enormous income into rural and coastal economies, which is very welcome, including in places such as Plymouth. However, it is also another nail in the coffin of people being able to locally rent and locally afford a home, as more homes are flipped to be second homes and more Airbnbs are created by chucking families out of long-term rentals. Will the new measures that the Minister has announced and is consulting on be in place by the summer recess, so that families know that when they visit a location they are not taking away the possibility of living locally for the people who provide the services on which those tourists will rely?

[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.

[Nickie Aiken (Cities of London and Westminster) (Con)]

There is no clearer example of the need for leasehold reform than in my constituency. The leaseholders from Rathbone Square and their affordable housing neighbours at 14 Newman Street are having a nightmare with their co-owners, WestInvest and Deka, and the managing agents, CBRE. There is no transparency. The affordable housing residents are being charged five times more for their energy. Does my right hon. Friend agree that we do need to ensure that there is a complete shake-up of leasehold reform and of property management in general?

[Rachel Maclean]

Yes, my hon. Friend is absolutely right and I thank her for bringing the concerns of her residents to the Floor of the House. We are determined to reform this system. It is a hugely complex reform. I point out to the House that Labour had the opportunity to do this in its 13 years in government and did nothing.

[Rachael Maskell (York Central) (Lab/Co-op)]

Almost every country in the world has banned leaseholds. We are tired in York of nearly every development putting in place new leasehold arrangements, extracting thousands of pounds from residents, so that when they move into what is often their “forever” home, they are having to pay out more and more, which then leaves them trapped in that form of accommodation. When will the Government bring forward commonhold, because we have been waiting for it for far too long and seen no action?

[Rachel Maclean]

It is right to point out to the hon. Lady that, since the Government’s announcement in December 2017 that we would ban the sale of leasehold houses, the number of newbuild leasehold houses coming on to the market has significantly decreased. Land Registry records show that 1.2 % of newbuild houses were registered as leasehold in 2020 compared with 17% previously, so the Government’s reforms are already working, but we need to bring forward more legislation, and we will do so.

[Duncan Baker (North Norfolk) (Con)]

Perhaps the Minister could clarify the situation at the Dispatch Box today. She could say that this is a priority of the Government and that the leasehold reform Bill will come forward in the next King’s Speech, because, after 21 years of not seeing any reform, it is high time that we had some.

[Rachel Maclean]

I thank my hon. Friend for his question. Obviously, as a Minister at the Dispatch Box today, I cannot pre-empt what is in the King’s Speech, but I am sure that my hon. Friend will recall the number of times that not only I, but my right hon. Friend the Secretary of State, have stood at this very Dispatch Box and made those commitments very strongly and I am happy to repeat them today.

[Mr Speaker]

I call the shadow Minister.

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

In an Opposition Day Debate that took place before the recess, the Minister claimed that there has been no Government U-turn on leasehold reform. She also refused to commit to the fundamental and comprehensive reform package that leaseholders had been led to expect was forthcoming. Can she give the House and the country a straight answer today: will the Government legislate to implement all of the Law Commission’s recommendations on enfranchisement, commonhold and the right to manage before the end of this Parliament—yes or no?

[Rachel Maclean]

The hon. Gentleman will remember I am sure the detailed debate that we had on this very issue where we dug into many questions that he and many others asked. I have given my answers from this Dispatch Box. I have been very clear that we will bring forward comprehensive reforms to leasehold, which is something the Opposition failed to do for the whole time they were in Government. We have made a start, and we will make good on that promise.

[Tom Randall (Gedling) (Con)]

9. What steps he is taking to reform the national planning policy framework.

--- Later in debate ---

[John Penrose (Weston-super-Mare) (Con)]

10. If he will take steps to increase house building through densification of urban areas through the use of local authority-approved building codes that pre-approve buildings.

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

We are committed to ensuring that the planning system promotes the efficient use of land and creates more well-designed places in collaboration with local people. We are introducing street vote powers in the Levelling-up and Regeneration Bill to allow residents to come together and propose additional developments on their street in line with their design preferences.

[John Penrose]

I am delighted that street votes, which I and others have campaigned for for many years, is in the Levelling-up and Regeneration Bill. However, we need even stronger measures to stimulate housebuilding now that housing targets are rightly going to be much weaker. Will my hon. Friend consider building up, not out, which is street votes on steroids and is supported by many in the construction industry as the fastest, greenest and cheapest way to build many more beautiful urban homes for owner-occupiers and renters alike?

[Rachel Maclean]

I thank my hon. Friend for his determination in bringing forward this innovative measure, which will enable the Government to meet their ambition of delivering the houses that are needed all over our community. He is right to say that local communities should be able to set their own local design codes. That will be a fantastic way for them to create a huge number of houses, building up, out and possibly around and across as well.

[Kerry McCarthy (Bristol East) (Lab)]

Bristol is committed to building more houses, and we know that density is very much part of that, but with that comes pressure on local infrastructure. Can the Minister update the House on what the successor is to the housing infrastructure fund and on what funds will be available to ensure that local communities can cope with that new density?

[Rachel Maclean]

The hon. Lady is quite right: not just in Bristol, but across the country, pressures on infrastructure are one reason why communities sometimes have concerns about new housing developments. It is right that we are reforming the planning system to make that infrastructure available in advance of developments so that we can deliver the housing the country needs, in Bristol and elsewhere.

[Dan Carden (Liverpool, Walton) (Lab)]

11. If he will take steps to extend Awaab’s law to the private rented sector.

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

Any preventable death of a child is heartbreaking. Awaab’s law will require social landlords to remedy hazardous conditions quickly. For private rentals, we have given councils strong powers to force landlords to remedy hazards, and the Secretary of State has made it clear that he expects councils to use them.

[Dan Carden]

May I remind the House of the tragic case of Awaab Ishak? He was a two-year-old boy, living with his parents in a one-bedroom flat in Rochdale, who tragically and needlessly died following prolonged exposure to mould. Despite several complaints from his family over a number of years, his social landlord took no action and shamelessly blamed the extensive mould on the family. The coroner in Awaab’s case stated that damp and mould are not simply a social housing problem, but a significant issue in the private rented sector. My understanding is that the decent homes standard will not appear in the Renters (Reform) Bill and there is no equivalent to Awaab’s law either. Will the Secretary of State go back to the Department and put in proper measures to ensure that we have decent homes in the private rented sector?

[Rachel Maclean]

I think the whole House is united in expressing our sincere sympathies about the tragedy that occurred in the case of Awaab Ishak. It is completely wrong that people are living in homes that do not meet decent home standards. I thank the hon. Gentleman for the debates that we have had in this place. We are improving the quality of properties all across the private rented sector. We are introducing a decent homes standard. We will do that at the first legislative opportunity and we will be the first Government ever to do so.

[Mr Speaker]

I call the shadow Minister.

[Rachel Maclean]

The hon. Lady highlights the problem of homelessness, which, of course, the Government take extremely seriously. I point out to the Opposition that we have already introduced the Renters (Reform) Bill, which is the biggest reform of the private rented sector in a whole generation. That key measure will abolish section 21 evictions, which are one of the major causes of homelessness. We, on the Conservative Benches, are going to end them.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

13. What assessment his Department has made of the impact of changes introduced in the Elections Act 2022 on the local elections in May 2023.

--- Later in debate ---

[Karin Smyth (Bristol South) (Lab)]

14. What steps he is taking to increase the provision of social rented housing.

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

The Government are committed to increasing affordable housing of all kinds, which is why we are investing £11.5 billion, through the affordable homes programme, to deliver tens of thousands of homes for rent and sale right across the country.

[Karin Smyth]

The availability of social rented and affordable housing is the No. 1 issue that my constituents contact me about. Although Bristol’s Labour council is building more social homes for the future, the Government’s decision to scrap targets means that neighbouring authorities are not rising to the challenge. What analysis has been conducted by the Department on the impact on local housing supply of the Government’s decision to water down its housing targets?

[Rachel Maclean]

I would like to gently correct the assertion that the hon. Lady made about watering down housing targets. The Government are committed to building 300,000 houses across the country. We are building them in the right places, with community support. We understand the importance of social rented housing, and that is why we made a commitment in our levelling-up White Paper to ensure that more are built with the £11.5 billion of Government funding that her Labour-run council is no doubt benefiting from.

[Sir Christopher Chope (Christchurch) (Con)]

T1. If he will make a statement on his departmental responsibilities.

--- Later in debate ---

[Ben Everitt (Milton Keynes North) (Con)]

House prices are all over the headlines yet again, but affordability is the key issue. Does my hon. Friend the Housing Minister agree that when we do get new houses built, often taking years and years to go through planning, they all look like identikit estates, just like the estates we have already? We need affordable homes that local people can aspire to and retirement homes for later living. Does she agree that we need to build the right houses in the right places?

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

I thank my hon. Friend very much. He represents a new town, as I do—I am very proud to represent the new town of Redditch. We are absolutely committed to building the right houses in the right places, and that includes enabling local communities to have more say over the design and type of housing. We are doing that through the Levelling-up and Regeneration Bill: through design codes, street votes and reforming the planning system. I am pleased to report to my hon. Friend that I have also launched a taskforce for older people’s housing to address the housing needs of older people.

[Andy McDonald (Middlesbrough) (Lab)]

T4. I do not think that the staggering complacency of the Secretary of State in dismissing legitimate, serious complaints and concerns about the use of hundreds of millions of pounds of taxpayers’ money will have passed anybody’s attention. I warn him that that type of response may well come back and bite him. However, if there is to be any possibility of this House and the people of Teesside having any confidence in the findings of the inquiry that he has commissioned, that inquiry must have all the powers it needs to demand and secure whatever evidence and documentation it determines is necessary, and anyone must be able to submit that evidence to the inquiry. Will the Secretary of State give those commitments?

Private Rented Sector: Regulation

Rachel Maclean Excerpts

Wednesday 24th May 2023 Westminster Hall

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

It is a great pleasure to serve with you in the Chair, Mr Davies, and to have the opportunity to make my remarks. Of course, I thank the hon. Member for Liverpool, Walton (Dan Carden) for securing this debate. I also thank the other Members who have spoken, who I will turn to in just a moment. They have spoken passionately about the need for greater security for tenants and improved standards in the private rented sector.

I am grateful to the hon. Gentleman for bringing his considerable experience to this debate. He has a long history of campaigning and speaking on this issue in Parliament, and I say to him and to any Member that of course the Government will listen to constructive dialogue from all parties in the House. That is the right thing to do as we go forward and get this legislation right.

I thank the other Members who have spoken—the hon. Members for Stockport (Navendu Mishra), for Bath (Wera Hobhouse), for East Londonderry (Mr Campbell), for Brighton, Pavilion (Caroline Lucas) and for Erith and Thamesmead (Abena Oppong-Asare)—who all made useful contributions. We all agree there is a considerable amount of consensus that we need to provide a better deal for renters, which is exactly what we are doing through the Renters (Reform) Bill. Members have brought to the House’s attention, again, the very good reasons why we need to act and are acting.

The private rented sector is the most expensive, least secure and lowest quality of all housing tenures. A fifth of renters pay a third of their income to live in substandard accommodation. That is the reality and it is unacceptable. We are determined to crack down on irresponsible and criminal landlords and to make the private rented sector a better place to live and work. That is why I am delighted to talk about the vital measures we are bringing forward to meet the needs of renters and good landlords.

The hon. Member for Liverpool, Walton brought to my attention, as did other Members, the experiences of constituents. I assure him and the House that I have spoken to many tenants who have faced situations similar to the ones he described. I visited tenants in Leeds last week and saw for myself some of the conditions and why we need to act. It is worth reminding the House that the reforms are the biggest in a generation and the biggest in the sector for many years. They have been welcomed by tenants’ groups, people who represent tenants, Shelter and many others that have been referenced by Members. They have also been welcomed by groups who represent landlords. It is important to get that balance right.

I know that feeling safe and secure in a home is vital to a person’s wellbeing and so that they are able to put down roots in a community. The threat of a section 21 no-fault eviction with just two months’ notice hangs over many renters and prevents them from complaining about poor standards. The Renters (Reform) Bill will deliver our manifesto commitment to end section 21 no-fault evictions. Tenants will be able to challenge poor standards without fear of retaliatory eviction. We will abolish fixed terms and move to periodic tenancies that allow either party to end the tenancy when they need to.

As Members have highlighted, there are legitimate reasons why landlords could or would need to regain their properties, which is why we are reforming the grounds so that they are fair, comprehensive and efficient. In future, landlords will be able to regain possession only if one of the grounds for possession defined in law applies. We will introduce a new ground for use when the landlord intends to sell the property and extend the existing moving-in ground so that it can also be used if close family members of the landlord intend to live in the property.

We have changed the rent arrears grounds so that they are fair and proportionate, striking a balance between protecting tenants’ security and supporting landlords who face undue financial burdens. We have retained the existing mandatory rent arrears ground that allows a landlord to serve notice once a tenant is in two months’ rent arrears, and introduced a new ground for repeated rent arrears.

To ensure that landlords can swiftly gain possession when a tenant’s antisocial behaviour is causing problems for their neighbours and communities, we are allowing landlords to make a possession claim to the courts immediately, and we have lowered the discretionary ground to include behaviour capable of causing nuisance or annoyance. We are considering further changes to the way the courts handle antisocial behaviour possession cases, including in respect of prioritisation and the matters that judges must consider when deciding whether to award possession under the discretionary ground. There are other grounds, and I encourage Members to look at the information that the Government have published.

We understand that rent is likely to be a tenant’s biggest monthly expense. It is important that tenants have notice of any rent rises so that they are able to plan effectively. Our reforms will simplify the system for tenants and landlords. All rent increases will take place via one mechanism. We will retain existing legislation that allows rent increases once per year in periodic tenancies, and increase the notice that landlords must give to two months, thereby giving tenants more time to plan and seek advice.

Our reforms will also prevent revenge or forced evictions by the small minority of landlords who may look to use rent hikes to force a tenant out once section 21 can no longer be used. That will create a fairer system that allows both parties to negotiate rents effectively, while protecting security of tenure. Where the landlord has served notice on the tenant to increase their rent, the tenant may refer the notice to the tribunal. The tribunal will assess what the landlord could expect to receive if re-letting the property on the open market and will determine the rent. That will help to avoid the large rent increases used by a minority of landlords as a back-door method of eviction. We will update the guidance to ensure that tribunal users have the confidence and information they need to engage with it effectively. That includes helping parties to understand how they can provide evidence of comparable rents.

The Conservative party does not support rent controls. Evidence suggests that they would discourage investment in the sector, lead to declining property standards, and be negative for both tenants and landlords. We are absolutely committed to outlawing the unacceptable discrimination against families with children and people in receipt of benefits through blanket bans, but we want to ensure that landlords retain the final say over who they rent to. Members have asked for more clarity on that, and we are carefully considering how we get it right. We will introduce legislation at the earliest opportunity.

Members raised local authority enforcement. We expect local councils to take a proactive approach to enforcement and make it a priority. Substantial civil penalties will be available if landlords fail to comply with our reforms. Local councils are able to keep the revenue they receive from civil penalties; it is ringfenced for further enforcement activity. In accordance with the new burdens doctrine, we will ensure that, where necessary, the net additional costs that fall on local councils as a result of our reforms are fully funded, and we will continue to explore how best to create a sustainable self-funding system over the long term, including through fees.

Members will be interested to hear that we are providing £14 million to 10 pathfinder projects that have been designed to build capacity and team capabilities and to test and disseminate innovative enforcement approaches. I am pleased that one of those pathfinder projects is being led by Liverpool City Council, which covers the constituency of the hon. Member for Liverpool, Walton. It is working with a number of other key players locally to create a multi-agency, intelligence-led model for proactive enforcement in the PRS. That will ensure that enforcement is streamlined more effectively, particularly against landlords engaged in serious criminality. I have seen for myself the effectiveness of the selective licensing scheme in Leeds, to which Members referred, and how effectively the housing teams work to deal with issues.

[Navendu Mishra]

The Minister is generous to give way. Will she address the point that, over the past 13 years, local authorities have lost hundreds of millions of pounds in central Government funding? My local authority in Stockport has lost a significant amount of money since 2010, when the Conservative-Liberal Democrat coalition came in.

The Government do not seem to have a sense of urgency in addressing the loopholes in the Renters (Reform) Bill and the crisis in the private rented sector. There are no Conservative Back Benchers in this debate; they must have either local authorities that are financially secure or tenancies that are long-term and reasonably priced.

[Rachel Maclean]

I gave way to the hon. Gentleman because I thought he was going to ask a question about the issues in front of me. I am happy to address them. I will continue my remarks, which will address the substantive issues of this debate.

Information is key when it comes to regulating effectively and efficiently. That is why the Bill will legislate for a new private rented sector database that will support the new privately rented property portal digital service. That service will support the Government’s aim of reducing the number of non-decent rented homes by 50% by 2030, and will give local councils tools to drive criminal landlords out of the private rented sector. It will help landlords to understand their obligations and give tenants the information they need to make informed choices.

My team is working hard to develop the portal, which recently passed its Government Digital Service assessment. It was assessed against standards to ensure that it meets clear user needs, is simple to use, is designed securely to protect privacy, and uses tools and technology that are fit for purpose. We will take forward the development of that service and continue to engage with end users to ensure we get it right.

[Abena Oppong-Asare]

I welcome some of the proposals, particularly the private rented database, but one of my concerns is that some of my constituents in private rented accommodation are living in poor-quality housing, and there is nowhere for them to go that will advocate for them and take that further. It is particularly important to have some sort of ombudsman for the private rented sector so that constituents can take their cases further and hold private landlords to account.

[Rachel Maclean]

I hope the hon. Lady will listen carefully to what I am about to say: we will introduce a new PRS ombudsman to enable all private tenants to escalate complaints when their landlord has failed to resolve a legitimate complaint, which is exactly what the hon. Lady talked about. That complaint may relate to property standards, repairs, maintenance, and poor landlord practice or behaviour. That will give all tenants free access to justice, so that they have control over the standards and service they are paying for.

All private landlords who rent out property in England, including those who use a managing agent, will be required to join the ombudsman scheme. Landlords committed to providing a decent home and a good service to their tenants will benefit from a swift and impartial decision maker having the final say on their tenants’ issues, maintaining tenant-landlord relationships and, ultimately, sustaining tenancies.

As we all know, pets can bring a huge amount of joy to their owners. That is why our reforms will ensure that private landlords do not unreasonably withhold consent when a tenant requests to have a pet in their home. We will give tenants the right to challenge unreasonable refusals. We know that some landlords are concerned about the potential of pets to cause damage; therefore, landlords will be able to require insurance covering pets, which will provide them with reassurance that any damage caused by a pet will be taken care of by the tenant, on whom responsibility for damage will fall. Alternatively, landlords could deduct damage costs from deposits, as is already possible.

Let me conclude—

[Wera Hobhouse]

Will the Minister give way?

[Dan Carden]

Will the Minister give way?

[Rachel Maclean]

I will not give way. Can I ask for your guidance, Mr Davies, because I believe the hon. Member for Liverpool, Walton will have time to sum up at the end?

[Dan Carden]

I have a question for the Minister.

[Rachel Maclean]

I give way briefly.

[Dan Carden]

I am grateful to the Minister and I recognise that she has given a full response but, as she said she was concluding, I wanted to pick up on two points that I do not think she covered. I apologise if I am incorrect. The first point was on the ability of landlords to repossess properties if they declare they are going to sell them or if they or a family member are going to move in. They currently need to give only three months’ notice; will the Department consider extending that to 12 months?

Secondly, I mentioned the Secretary of State’s amendments to the Social Housing (Regulation) Bill to impose timeframes on landlords to investigate hazards and make repairs. I will table an amendment to the Renters (Reform) Bill; I would appreciate time with the Minister to discuss how we can use the Bill to ensure those protections in the private rented sector.

[Rachel Maclean]

I thank the hon. Gentleman. On his first point, we believe that we currently have the right balance. Of course, the Bill will proceed through the House. On his intention to table an amendment, I am of course happy to meet him to discuss that.

A number of Members referenced housing issues more generally. The Opposition Front-Bench spokesperson, the hon. Member for Luton North (Sarah Owen), referred to the affordable eco-homes being built by her local council. The House must be made aware—I am sure it is already—that those affordable homes are being built with support from the Conservative Government through the affordable homes programme. We are delivering homes all across the country.

[Sarah Owen]

Will the Minister give way?

[Rachel Maclean]

No. I need to wind up. This Conservative Government have made the provision of affordable housing part of our plan to build more homes across the country, including in Luton, so that we can provide aspiring homeowners with a step on to the housing ladder. The affordable homes programme is worth £11.5 billion and will deliver thousands of affordable homes to rent or buy.

The Government are committed to increasing the supply of social rented homes. A large number of the new homes delivered through the affordable homes programme will be for social rent. We have a strong record of building homes all over the country since we have been in Government. We intend to continue that.

I thank all Members for their contributions and look forward to working with colleagues from all parties as we take the Renters (Reform) Bill through Parliament.

Looked-after Children: Accommodation

Rachel Maclean Excerpts

Tuesday 23rd May 2023 Written Statements

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

I, with the support of my right hon. Friend the Secretary of State for Education, wish to set out the Government’s commitment to support the development of accommodation for looked-after children, and its delivery through the planning system.

The planning system should not be a barrier to providing homes for the most vulnerable children in society. When care is the best choice for a child, it is important that the care system provides stable, loving homes close to children’s communities. These need to be the right homes, in the right places with access to good schools and community support. It is not acceptable that some children are living far from where they would call home (without a clear child protection reason for this), separated from the people they know and love.

Today we use this joint statement to remind local planning authorities that, as is set out in paragraph 62 of the national planning policy framework, local planning authorities should assess the size, type and tenure of housing needed for different groups in the community and reflect this in planning policies and decisions. Local planning authorities should consider whether it is appropriate to include accommodation for children in need of social services care as part of that assessment.

Local planning authorities should give due weight to and be supportive of applications, where appropriate, for all types of accommodation for looked-after children in their area that reflect local needs, and all parties in the development process should work together closely to facilitate the timely delivery of such vital accommodation for children across the country. It is important that prospective applicants talk to local planning authorities about whether their service is needed in that locality, using the location assessment (a regulatory requirement and part of the Ofsted registration process set out in paragraph 15.1 of the guide to the children’s homes regulations) to demonstrate this.

To support effective delivery, unitary authorities should work with commissioners to assess local need and closely engage to support applications, where appropriate, for accommodation for looked-after children as part of the authority’s statutory duties for looked-after children. In two tier authorities, we expect local planning authorities to support these vital developments where appropriate, to ensure that children in need of accommodation are provided for in their communities.

Children’s homes developments

Planning permission will not be required in all cases of development of children’s homes, including for changes of use from dwelling houses in class C3 of the Town and Country Planning (Use Classes) Order 1987 where the children’s home remains within class C3 or there is no material change of use to class C2. An application to the local planning authority can be made for a lawful development certificate to confirm whether, on the facts of the case, the specific use is or would be lawful. Where a certificate is issued, a planning application would not be required for the matters specified in the certificate.

[HCWS795]