(8 years, 1 month ago)
Public Bill CommitteesI beg to move amendment 22, in clause 7, page 6, line 23, leave out subsection (5).
This amendment would ensure that local authorities are still able to make necessary pre-commencement conditions on developers.
Thank you for that direction, Mr McCabe. I will address my comments not only to amendment 22, but to some of our wider concerns about clause 7.
The Minister knows, because he heard the evidence, as we did, that clause 7 was the one bit of this relatively short Bill that concerned people who gave evidence to the Committee. In fact, a number of people thought that the clause was just as likely to slow down development as it was to speed it up. Councillor Newman, who represented the LGA, said:
“The whole perspective of what I am seeing in the Bill looks very much like a sledgehammer to crack a nut approach—another layer of red tape.”
It is a pleasure, Mr McCabe, to serve under your chairmanship. Is not that exactly the opposite of what has been said? We are trying to get rid of the complexity of the system. Clause 7 creates conditions of good practice, where people sit down together and make an agreement. If a council is being reasonable and a developer is reasonable, there will be no issue. There will be written agreement and things will move forward. If either party is being unreasonable, an inspector will be able to look at that and judge for the other party. It is in everybody’s interests to sit down and get a sensible agreement on the conditions. Is not that a sensible piece of legislation?
The hon. Gentleman has described the situation that exists at the moment, not the position in which we will all be in after the Bill is enacted. The Bill puts in writing the agreement between the local authority and the developer. Significantly, as we have all been discussing, it gives powers to the Secretary of State to intervene in the process by producing regulations that will say something about the conditions that can be attached.
I agree with the hon. Gentleman that the system is working well at the moment because, as Councillor Newman reminded the Committee,
“nine out of 10 permissions are given, and 470,000 permissions are already granted for homes up and down the land that await development for various reasons.”
All those reasons are not pre-commencement planning conditions.
Hugh Ellis said:
“From our point of view, the concern about conditions is that they are fairly crucial in delivering quality outcomes.”––[Official Report, Neighbourhood Planning Public Bill Committee, 18 October 2016; c. 23, Q31.]
He also said that he had no evidence whatever that conditions result in delay. Duncan Wilson from Historic England said that local authorities are usually reasonable already. He did not feel that unnecessary conditions were being imposed, and he believed that that particular assertion could be challenged. That is what we have been attempting to do thus far today.
It is not just Her Majesty’s Opposition saying that all this is unnecessary; it is the Town and Country Planning Association, the LGA, Historic England and the British Property Federation, which said that it saw an issue with the discharge of conditions, but could not give us much detail on pre-commencement conditions.
I want to outline the evidence we have been given on why the clause is unnecessary. Various people who gave evidence said that they felt that if an application was turned down because an agreement could not be reached with the developer, it could take longer to argue about the condition and determine it than under the current set of arrangements. I point out to the hon. Member for Thirsk and Malton that that point has been made not only by me but by lots of other people.
(8 years, 1 month ago)
Public Bill CommitteesHas the hon. Lady spoken to some of the small developers in her constituency? I have certainly spoken to some in mine, and they, too, cite pre-commencement conditions as critical to their ability to get a speedy resolution to planning applications.
I was just about to come to the Federation of Master Builders, which looks after smaller builders; I was dealing with the HBF first because it tends to deal with the volume builders. We heard in oral evidence the opinion of some of the volume house builders, although we did not get from the HBF any examples of what types of conditions were proving problematic.
May I finish responding to the previous intervention? To answer the hon. Gentleman’s second point, I talk to the small home builders—in fact, builders generally—in my constituency a lot. When we are looking at evidence, we have to look at it really carefully. Builders will often say to me, “We have to do a bat survey”—it is usually a bat survey, but occasionally a newt survey. Sometimes I ask them how long it takes and they say, “Well, it depends on the time of year, so it can be a bit problematic.” Generally, though, something has been done locally that they can tap into. Bats are usually the worst, but if we can find a way to deal with that without it being too onerous, perhaps such a drastic clause would not be necessary.
The hon. Lady mentions bat surveys. In September, one of my constituents was required to carry out a bat survey on a building that was due to be demolished. When it came to granting planning permission in December, the planning officer decided that there were no bats around in September so they would have to wait until May to do the survey again. Having carried it out once, they had to wait until the bats came back to see whether any bats were there in the first place. The hon. Lady asked for specific examples. A small developer was asked for a landscaping scheme before he was allowed to start building the houses, and that was not in a conservation area. These things clearly are an issue. We cannot just reject out of hand the fact that they are causing problems.
I would like to reassure the hon. Gentleman that we are not dismissing those examples out of hand. My first point is that we are struggling to find examples. My second point is that, when we find examples, we have to decide whether they should be dealt with under a particular clause, such as clause 7, or whether we should find some other way of minimising the impact on the conditions set by the local authority.
The only example that the FMB was able to give us was of landscaping. However, landscaping is often what makes what might be a non-acceptable development acceptable to the local community. Communities want to know at the outset what a development will look like in the end, as the hon. Member for Thirsk and Malton must know from his constituents—I know it from mine. If a building has an unsightly façade or a high wall, or if there is something that people are unhappy with, they will ask at the earliest stage, “What sort of screening will there be so that we don’t have to look at that ugly edifice?” Far from landscaping being a good example for the hon. Gentleman, it actually helps our case. He and builders might think that pre-commencement conditions are unnecessary, but our constituents think that they are really important.
That was a very helpful and, in some ways, enlightening response from the Minister. Unfortunately, we ended up having evidence presented to us that was not evidence and examples that were not examples, but instead a typology of circumstances in which the clause may or may not be applied. That is in a consultation document that sits outwith the Bill at this point.
What does the hon. Lady regard as evidence? The submissions of developers, district councils, small and large builders—are they not evidence? Does she not recognise them as such?
The only example that has been given to us in the Committee, apart from the ones I speculated on myself, was landscaping. I think we dealt with why landscaping is so vital to know about at an early stage in the process.
(8 years, 2 months ago)
Public Bill CommitteesIt is a pleasure to serve under your chairmanship, Mr McCabe.
As the Minister knows from our discussions on Tuesday, we do not see neighbourhood planning and the provisions relating to it as the most controversial aspect of the Bill. Nevertheless, we have a couple of questions embodied in the amendments on which we would like some clarification from the Minister.
Amendment 4 seeks to amend the clause to ensure that the local authority will only have to have regard to neighbourhood plans when they are found to be consistent with the local plan. I am sure that in his response the Minister will say that it is already enshrined in legislation that they have to pay attention to the local plan, but we are seeking clarity on at what stage that needs to happen.
Let me start by saying that we are very supportive of neighbourhood plans and the measures in the Bill to make them more efficient in delivering housing, delivering it where local people want it and having it underpinned by the relevant infrastructure. We feel that planning is always more successful when people feel a part of it, rather than planning being something that is done to them and imposed from above. This point was made powerfully on Tuesday by the National Association of Local Councils, which also reminded the Committee that during the passage of the Bill we probably need to push for greater clarity on the exact role of neighbourhood plans and get some statements about the importance and significance attached to them and, in particular, their relationship to local plans.
The amendment would ensure that neighbourhood plans are only considered if they are in line with the overall strategic aims and visions within a local plan. As we are all no doubt aware, local plans set out a framework for the future development of an area, addressing needs and opportunities relating not only to housing, but to the local economy, community facilities and infrastructure. We are specifically asking the Minister to what extent neighbourhood plans are then being written to address not only the broader strategic aims of the local plan, but what it says about community facilities and infrastructure—that is, if it does. It might not, and if not, is the Minister clear that there is then a key role for the neighbourhood plan to ensure that those less strategic issues are addressed for the locality?
An underlying purpose of the amendment is to try and tease out from the Minister whether he thinks neighbourhood plans could, in fact, be a building block for local plans. There are distinct advantages for planning at a community level for housing supply, if that incorporates real local knowledge and that local knowledge is then put into a wider picture that is able to address local authority-wide needs. Hugh Ellis from the Town and Country Planning Association spoke on Tuesday about the real advantages that could have, saying:
“Neighbourhood plans are great at articulating community aspiration inside the local plan framework. When both work together very powerfully, that can be a very strong framework for a community.”––[Official Report, Neighbourhood Planning Public Bill Committee, 18 October 2016; c. 32, Q50.]
Ruth Reed from RIBA said it would be better for local and neighbourhood plans to be “in sync” to
“ensure coherence and strategy across a local authority to provide housing where it is needed.”––[Official Report, Neighbourhood Planning Public Bill Committee, 18 October 2016; c. 43, Q71.]
Local plans are also only adopted after public consultation and, in my experience, usually very lengthy—in fact, often more than one—public inquiries. As the Minister and all on this Committee will know, they do have considerable weight. It would be very helpful for communities to be able to feed in their vision for development at an early stage in that local plan-making project and process. We also do not want to find ourselves in a situation where strengthened neighbourhood plans are undermining local plans, leading to lots of competing visions of what an area could look like or deliver. Again, we feel that being very clear about the degree to which they have to follow a local plan might help to iron out some of those possible conflicts. As the Local Government Association has pointed out,
“It is important that any proposals do not have the unintended consequence of undermining the ability of a local planning authority to meet the wider strategic objectives set out in an emerging or adopted Local Plan”.
According to the Department’s own figures, about 200 neighbourhood plans that have progressed to the referendum stage have been approved by voters; I suspect the figure is a lot higher now. That shows a really positive reception for neighbourhood planning. I pay tribute to the Minister and his Department for bringing the whole concept forward. However, given the number of neighbourhood plans now being considered—I think it is a few thousand—and the way the Government rightly want to extend them, it seems likely they could end up competing with one another. We are trying to ensure, through the amendment, that that does not happen.
The guidance tells us that it is very important for a neighbourhood plan or order to follow a local plan, but they are not often tested against policies in an emerging plan. I will give an example from my constituency, where we are in precisely this situation, which is partly what prompted my question. A local plan went through a public inquiry and was thrown out by the inspector. The authority was directed to go back to first base in terms of drawing up the local plan, so it is out to consultation at the moment on some of the underpinning objectives, but a number of neighbourhood plans are about to go to referendums. Will those plans simply rely on saved local policies? Will they have to look at the local plan that was thrown out, or will they be tested against the underpinning objectives, which are quite wide-ranging at this stage? It would be interesting to hear from the Minister on that point. There is a need for further clarity, particularly with regard to the stage that the local plan is at.
These are very much probing amendments, as I am sure Committee members have determined. Amendment 5 would mean the local authority need not have regard to the local plan, unless it is consistent with the national planning policy framework and national planning policy guidance. This is a straightforward amendment. We should seek to put best practice at the forefront of neighbourhood planning by requiring that the plans are compatible with the NPPF and any relevant guidance.
Is the hon. Lady aware that paragraph 16 of the NPPF states that neighbourhoods should
“develop plans that support the strategic development needs set out in Local Plans”?
Is that not quite clear?
I am trying to tease out the extent to which the Minister thinks it is important right at the outset for neighbourhood plans to tell us how they are addressing the basic thrust of the NPPF and any relevant policies in it and taking on board guidance that underpins some of those policies. I do not think the issue of guidance is quite so clear. Perhaps it is generally assumed that the NPPF would be followed but not to the degree that planning guidance would have to be taken on board.
(8 years, 2 months ago)
Commons ChamberThat is a question that I would like the Minister to put to his constituents. People surrounding new developments very much want to know what the development looks like, what the quality of the build will be, what materials are going to be used and whether they fit into the surrounding landscape. If he is serious about neighbourhood planning and giving people a say over what happens in their area, pre-commencement planning is important. Some of the measures could lead to more delays in the planning system, rather than speeding it up, which I think is what the Minister is trying to do.
The hon. Lady mentioned landscape. One of my SME developers was required to submit a landscape scheme before starting on the development itself, as a pre-commencement condition. Does she not see that some of these conditions are completely inappropriate?
The problem is that we do not know why the local authority required that particular condition. It could have been worried that no plan might ever be produced.
I look forward to the Minister’s answer to my hon. Friend’s question.
Such people, however, will be faced with a situation in which even a modest rise in income will result in a significant hike in rent. We spoke to a couple with a combined income of just over £40,000—one was a part- time cleaner and the other a sales associate. They want their children to go to university and just do not know how they will manage that in London if their rent moves towards a market one which, in their area, would represent an increase of 400%.
Does the hon. Lady agree with the principle of means-testing tenants in properties that are set aside for people on lower incomes? I am talking about social rented properties.
As the hon. Gentleman sat on the Bill Committee, he should know that a voluntary scheme is already in place for local authorities and housing associations to do that very thing.
The tenants also object to their housing being seen as subsidised. In response to a written question, Baroness Williams said:
“Local housing authorities do not receive subsidy from the Exchequer; the Localism Act 2011 abolished Housing Revenue Account Subsidy.”
This housing is not subsidised, and in any case it is there to meet needs. It is outrageous that the Government are taxing tenants in such a way while claiming to stand up for hard-working people.
(8 years, 10 months ago)
Commons ChamberI am not going to give way to the hon. Gentleman, because he would not take an intervention from me.
The only north-east council to benefit from the £150 million additional funding announced on Monday is Northumberland. That is staggering, especially as Durham is also a substantially rural area. It is odd, then, that Northumberland is the only council to benefit from the rural fund. Indeed, if we look across the country, the areas to benefit most are Surrey, with £11.9 million; Hampshire, with £9.4 million; North Yorkshire, with £9.2 million; and Devon, with £8.3 million. Examples of the reduction in core spending tell a similar story: Durham had a reduction of minus 4.1%; Newcastle minus 4.4%; and Sunderland minus 4.3%. Compare that with Surrey, which has a decrease of only minus 1.1% and North Yorkshire minus 0.3%.
I will not give way to the hon. Gentleman, just because we are very short of time.
It is very clear from those figures that shire county areas and southern authorities have received below-average reductions in core spending power, while deprived areas have received above-average decreases, continuing the unfair trend set by the coalition Government. As we have heard from other Labour Members, the very councils suffering the highest cuts have a higher demand for children’s services, evidenced by severe cuts to our children’s centres, with most closed under this Government, and greater demand for adult social care and higher levels of need for good public health. That is not, however, reflected in core spending power per dwelling. The average across the country is £1,838, but for Durham, an area of high disadvantage, it is only £1,608. By comparison, the whole of Surrey gets more than £2,000 per dwelling, while Richmond upon Thames receives £1,866. Based on current forecasts, Durham’s total savings target for the next four years is £105 million, so there will have been £260 million of cuts since austerity began—figures so large that they are difficult to comprehend.
Figures are important to understanding the gross unfairness in Government funding, but we need to take a moment to consider what this means for people who need council services. Even by dipping into council reserves, Durham faces severe challenges with regard to social care charges, the provision of essential youth services and support for vital bus services. I say to the hon. Member for Beverley and Holderness (Graham Stuart) that Durham is a rural area, too. It needs to support its bus services, but the Government are not allowing for that in the current formula, not to mention any access to leisure facilities.
The council will do its best to ensure that the most vulnerable people are protected and that, where it can, capital will be used to promote economic growth and tourism, but the Government should take no comfort from that. The statement on Monday was a disgrace in that it failed to address the needs of some of the most disadvantaged people in the country. The settlement leads to the extraordinary position whereby residents in more affluent areas are receiving services of higher standards and greater volume than in areas where a lot of the people are low waged or where historically they have high levels of poor health. That cannot be fair and no amount of loquaciousness and tongue twisting from Government Members will make it so. It is time for a fair local government finance settlement based on need, not the political colour of the local authority.
I thought the Minister was going to make a serious intervention about the content of the new clauses. The point I was making is that the Government new clauses, which are wide ranging and controversial and have an impact on lots of people’s lives, should not have been brought to this Committee on the last day of its deliberations without any consultation, without an impact assessment and without any background information. It really is extraordinary. It is extremely bad practice and not good policy making.
It is the content of the clauses that concerns and outrages me. As my right hon. Friend the Member for Wentworth and Dearne (John Healey) said this morning:
“People will be astonished that Ministers are legislating to deny families a stable home. This will cause worry and upheaval for tenants, and break up communities.”
Because the new clauses have not been in the public domain for long, people are only now trying to catch up with what the impact might mean for people. However, some housing lawyers have contacted us to say:
“Presently, local authorities generally grant periodic secure tenancies. Such tenancies have no automatic end date, rather, they end only when the court makes an order for possession or when a tenant gives up the tenancy. Moreover, if you are the spouse or civil partner of a local authority tenant then, on the death of that tenant, you can succeed to the tenancy on the same terms.”
I will give way to the hon. Gentleman in a moment. I want to finish what I am saying about this particular issue. The housing lawyers who have contacted us said:
“The new clauses end both of these rights. If the new clauses are accepted, local authorities will only (save for limited exceptions which will mostly be dealt with in secondary legislation)”—
as we heard from the Minister earlier—
“be able to grant tenancies for a fixed term of between 2 and 5 years. Towards the end of the fixed term (defined as between 9 and 6 months before it ends) the landlord will decide whether to offer another fixed term. Whilst there is a right to ask a landlord to review a decision not to offer another fixed term, there is no right to challenge the decision, e.g. by appeal to a court.”
Therefore, the spouse or civil partner of a local authority tenant, on death of that tenant, might get a five-year tenancy, or they might not.
The lawyers continue:
“This is a major reform of housing law, probably the most important since local authority tenants were given security of tenure in the Housing Act 1980. It requires much more detailed (and technical) consideration than just being dropped in for debate on the last day of the Committee Stage. There are, for example, two unintended consequences”—
my hon. Friend the Member for Harrow West has just raised one. There is great concern about the potential impact on the right to buy, but there is also major concern about provisions for recovery of possession at the end of the fixed term and for recovery of possession against a successor.
The lawyers say that the current proposals are simply unworkable because
“where a local authority grants a fixed term tenancy, possession proceedings operate by way of forfeiture. Yet the Bill excludes forfeiture from the remedies available against these fixed term tenancies.”
The lawyers direct the Minister to read “Flexible Tenancies and Forfeiture” by Andrew Dymond in volume 17 of the Journal of Housing Law so that he can see how the drafting is flawed.
The lawyers continue:
“a 2 year fixed term means, in reality, only 15 months of security (since the decision whether to extend your tenancy can start with 9 months remaining on the term)”.
A two-to-five-year churn, as my hon. Friend the Member for Harrow West pointed out, has huge implications for the stability of families and communities. It is important that the Minister addresses some of the points about what churn could mean in practice for the stability of families.
As my hon. Friend the Minister pointed out, there are 1.4 million people on the housing waiting list. Does the hon. Lady recognise that there is a real need to make the best use of our housing stock? People’s lifestyles change, as they go from living in a larger family to perhaps living on their own in a house that is larger than they need. Are these not sensible proposals to make sure we make best use of our housing stock?
Local authorities already have the power to grant fixed-term tenancies if they wish to do so. The issue we have been struggling somewhat to get across in the Committee to date is that, if there is a huge need for social rented housing, the way to deal with that need is to build more social rented housing units, not to make life more difficult for those who already occupy social rented housing by kicking them out using a whole variety of mechanisms.
Let me finish the point.
Increasing rents to a level that people will not be able to afford and having the bedroom tax in place means that a lot of people have to move out of their homes. Now, on the last day of our deliberations, we have this extraordinary set of measures, which seek to take secure tenancies away from people in the social rented sector. This is an extraordinary change. What I would say to the hon. Gentleman is that the way of dealing with acute housing need is to build more housing across all tenures, including for social rent, and I hope he will accept that.
I absolutely accept that. Does the hon. Lady therefore welcome the 55% rise in the number of affordable houses—25,000 more properties— built in 2014-15 versus 2013-14?
A further thing I have been trying to do in the Committee is to make it clear that there are social rents and there are affordable rents. Affordable rents are not necessarily what we would all understand as affordable, because, in a lot of areas, 80% of the market rent is not affordable. Of course, that also applies to other measures for low-cost home ownership. Throughout the Committee’s deliberations, we have been questioning whether the Government’s definition of low-cost home ownership actually is low-cost home ownership.
Yes. If this is the result, the circumstances will be absolutely dreadful. Whether or not families are ultimately moved on, they will now have to live with the insecurity of knowing that they could be moved on at any time. That is what is particularly pernicious about the measures. They are part of a continuing vendetta against social tenants in this country. That is what we must assume from how the measures have been introduced and their content.
The hon. Member for Erith and Thamesmead made the point beautifully. We all understand the need for social housing. She needed social housing at one time in her life, and the property was available. The measure is about making the best use of our housing stock.
We dealt with that earlier. I ask the hon. Gentleman and his colleagues to turn their attention to how we can deliver more social rented housing.
My hon. Friend’s point is completely accurate. Many commentators are very much against the scheme in principle and because it does not make a great deal of sense economically. We understand the context of the clause and this part of the Bill: the Government want to establish a rent regime where people on incomes of, initially, £60,000 or more would pay higher rents. However, the measures in the Bill go further than that.
I am confused about the hon. Lady’s personal view. Does she not feel that the public might reasonably expect social housing providers to check if the people living in those taxpayer-funded houses are able to move into full market value homes and therefore reallocate those much needed resources to people who need that support? Does she feel that is a reasonable position?
I am certain that I have already said at least three times this morning that there already is a discretionary scheme in place that allows local authorities and housing associations to do that, and that we think that is the sensible way forward.
If I could come back to what is in the proposed legislation that we are scrutinising—
I will give way to the hon. Gentleman later, once I get through this argument. We are scrutinising this proposed legislation.
Interestingly, there was a consultation that showed no support for a package of measures, but now we have a set of more extreme measures in the Bill. The provisions of chapter 4 give the Secretary of State regulation-making powers to set out a lot of detail: specify the level of rent payable by a high-income tenant; provide that the level of rent may be different in different areas and for tenants with different incomes; require the landlord to have regard to guidance issued by the Secretary of State; define what is meant by a high income and how it will be calculated; give registered providers of social housing the power to require tenants to provide information or evidence of their income, with failure to provide that information perhaps resulting in the landlord charging the tenant a market rent; give registered providers of social housing the power to increase rents in line with regulations; and require local housing authorities to pay any estimated increase in income as a result of rent regulations. I could go on but, basically, huge powers are to be given to the Secretary of State to get directly involved in the operational management of local authority housing departments or housing associations. That does not seem to me a very localist approach or one that shows much confidence in our registered social housing providers.
I will give way to the hon. Gentleman before going on to discuss amendments 199 and 200.
The hon. Lady heard evidence from housing associations clearly stating that they were currently not using the opportunity to establish whether people in these houses could afford to move to a full market value home.
I have written to the Minister to ask whether the regulations can be made available before the Committee finishes its deliberations, and, helpfully, I received a letter from him yesterday. He told me that, unfortunately, he could not provide us with the regulations before we finished our deliberations in Committee. I have not yet thought about how I will respond, and I do not want to take up the Committee’s time by thinking about that. I will respond in due course, because I need a fuller explanation from the Minister as to why the regulations cannot be provided earlier so that we know exactly what we are talking about. As we have said a number of times in the Committee, we are working in the dark, because so little information is available. That is why we tabled these amendments—to see whether we can get a bit more information from the Minister.
Amendment 201 is designed to establish, in a pretty similar way to amendment 198, what the Government think should be taken into consideration in rent level setting, whether they will take local circumstances into account and whether their intention is that the scheme that is eventually applied will have been subject to a consultation exercise involving tenants.
How would the hon. Lady ensure that the system was fair? If housing associations in neighbouring parts of the country had different graduated scales, would that not be just too complicated? Clause 74(2)(b) already refers specifically to
“a proportion of the market rate”.
In other words, there will be a taper. The Minister has already given evidence to the Select Committee that there will be a taper. Is there really any need to overcomplicate the Bill in this way?
As I said, these are probing amendments. They are designed to elicit from the Minister exactly how the rent setting scheme will operate in practice. The important point about amendment 201 is that a new rent regime is to be set up for people living in social housing. I want to know whether the Minister thinks it would be appropriate to take some account of local circumstances and, importantly, to subject the scheme to a consultation involving the tenants who will be affected by it and seek their agreement. That is only fair. Tenants would expect, if they are to be subject to a different regime, that their voices would be heard when the scheme is being set up. That is the main purpose of amendment 201.
Amendment 202 is designed to establish whether the Minister intends future rent levels to relate only to income, using fairly arbitrary thresholds. While I am talking about thresholds, I want to correct the point made earlier by the hon. Member for Lewes. The threshold of £30,000 is not the earnings of an individual. It might be an individual, but it is based on the earnings of a household. That is critical. We are not talking about an individual income of £30,000. It could be—
I absolutely agree. The Joseph Rowntree Foundation emphases the point about not having a cliff edge and notes that schemes can be carefully tapered. That has happened to a degree with universal credit, so a model that could be applied is already in place. The other point it makes strongly is:
“The threshold for ‘pay-to-stay’ requires sensitive definition, and a taper for rent increases should be included to avoid work disincentives.”
To counter the point made by Conservative Members earlier, there could be huge work disincentives if we do not get the thresholds and tapers correct. Otherwise, if someone were to move from a social rent of £90 a week to a market rent of £200 a week and get only a marginal increase in their income, they would have to think twice about taking on additional hours or a promotion at work. It is therefore important that the detail of the scheme is right.
The hon. Lady and the hon. Member for Greenwich and Woolwich mentioned the word “blunt”, but we have already received evidence that the measure will not be a blunt instrument. There will be a taper—provisions in the Bill say that. Is there any point in constantly repeating that same line?
We are trying to get some information from the Minister about the nature of the taper and how it will apply.
Amendment 204 would ensure that the application of measures in the clause will take into account the need to promote socially cohesive communities. A number of people have written to the Committee about that. Those communities are vital for our towns and cities. We all want to live in neighbourhoods with high levels of social inclusion, because that has been shown to improve mental health, lower crime rates and increase resident satisfaction.
We want to ensure that the scheme, once introduced, does not encourage people to move unnecessarily out of the neighbourhood they have lived in all their lives, where they might be contributing to civic life. Interestingly, the Coin Street Secondary Housing Co-operative said in its written evidence:
“We believe that Pay to Stay, in the context of fully-mutual housing co-operatives, would be divisive and contrary to the underlying philosophy of mutuality and shared rights and responsibilities. It would erode the stability and range of skills that underpin the effective functioning of co-operatives.”
Another housing association wrote to us to say:
“We are a happy, functioning, self-reliant community. We epitomise the big society. Pay-To-Stay will cause tensions with some members paying more for exactly the same services.”
It also said that the right to buy “undermines the fundamental principles” of its community. That is a real challenge to the Government.
I want the Minister to say something in his response about socially cohesive and mixed communities, which I will talk about in the context of amendment 205. Many housing associations have written to us with concerns about there no longer being mixed communities, particularly in terms of different income levels, in housing stock, because once people have a market rent applied to them, they will have to move out in many, although not all, circumstances.
Mulberry Housing Co-operative wrote to us, saying, “We have health workers, carers and teachers. They are very important to our local community.” I am sure that it could add nurses to that list, to help the hon. Member for Lewes. It does not want those people to have to move out of the area because their children go to local schools and they have a positive effect on
“the fabric of the wider community.”
It also points out, interestingly, that this is a significant “disincentive to work” and to people’s aspirations.
Does the hon. Lady accept that there have been no Government cuts to planning departments? That is a choice for local government. Does she also accept that such cuts are a false economy, because planning departments are there to drive the economic prosperity of an area and therefore of the local authority?
I have already outlined the choices that many local authorities throughout the country are having to make. Many councillors are facing the extremely difficult to decision of whether to cut the planning department, care services or education services. Although the hon. Gentleman is right to the extent—
I would like quickly to sound the Minister out on what might be a key issue and a key opportunity—a further step on planning in principle for the brownfield register. This is really an opportunity for small and medium-sized enterprise house builders. I am a very strong advocate for SMEs, coming from a small-business background, but this is not just ideological. SMEs used to build around 100,000 homes a year in the UK, but now only build about 18,000, so this is a key opportunity. It is not just about building homes, but about who we find to build them.
Members will remember the evidence given to the Committee by Brian Berry from the Federation of Master Builders, who said:
“The brownfield register is a positive step, because there are very small parcels of land which our”—
SME—
“members could build on…That would encourage more development.”––[Official Report, Housing and Planning Public Bill Committee, 10 November 2015; c. 50, Q122.]
However, all that assumes that those plots of land are going to be released and made available to buy. We need to persuade local authorities, the NHS, Network Rail and the Ministry of Defence to give up their dominion over this land. It has been very interesting to hear the shadow Housing and Planning Minister talk about their dominion over their residential housing stock. We are trying to put that housing stock to better use, talking about a tax or a levy, but this is in public ownership. How can we tax something that is already in public ownership?
I took the opportunity to look up the stock for Durham County Council. There are 18,500 residential homes—I know recently there has been a stock transfer—and 9,234 commercial sites. There is a list of all those commercial sites all under Durham County Council’s ownership.
Will the hon. Gentleman outline what evidence he has that those sites are not being efficiently used at present?
I am not saying that all those sites are developable, of course, but 6,500 of those sites are occupied by Durham County Council and 200 are vacant today. Why can those properties not be put to better use? I am not just focusing on Durham. Southwark Council owns 43% of the land in Southwark—there are 10,000 garages. We need to put that to better use.
Challenging does not mean impossible. There are great challenges in the housing market and we need to rise to those challenges. As for one-for-one replacement, I feel that replacement is the wrong term: it should be an addition. It is an additional home, because the people who are buying that home were previously renting, and were locked out of the housing market with no prospect of getting on to the housing ladder. They are buying that home and will still live in that home. They will benefit from the place where they have lived, and most of them will live in that home for many years to come.
The reason we talk so much about replacement is that there is a huge shortage of affordable and social homes to rent in this country. Right to buy stops a social home for rent from being available; that is why we talk about replacement. We are not against the right to buy itself, but it needs to be accompanied by a like-for-like replacement.
I am very pleased to hear that. If the hon. Lady visits the Inside Housing website, she will see evidence from David Orr, who says that these provisions will
“ease pressure in all parts of the market, including the rental market.”
The measure will help to improve that supply. It will also help to provide affordable homes to buy for people who are locked out of the market.
The top 100 housing associations employ an average of 1,000 people. Is it not reasonable to expect that they might be able to find efficiencies of about 1% per year among those employees?
The hon. Gentleman needs to make that point to the housing associations themselves. They have told us in their evidence to the Committee and to the Communities and Local Government Committee that, on the basis of what has happened with both the Welfare Reform and Work Bill and the Housing and Planning Bill, they will re-profile their activity and adjust their business plans, unfortunately moving away, it appears, from the provision of social housing for rent.
As I have already said to the hon. Lady, the amendment looks at replacement like for like in terms of tenure located in the same area and in accordance with assessed housing need. What those houses might actually look like is a very interesting discussion—one which, in terms of ensuring the quality and sustainability of products, I am very happy to have, although I fear that the Chair might rule me out of order if I did so.
The review of evidence that was asked for by the Communities and Local Government Committee, which is looking at right to buy, is being carried out by Professor Ian Cole and his colleagues at Sheffield Hallam University. The review noted that right to buy
“has contributed to a substantial reduction of the social housing stock, which—in the absence of countervailing new build programmes—has caused supply problems”
and
“a loss of relets…The scale of the decline in LA relets in recent years is marked, and declined from 221,000 lettings to new tenants in 2000/01 to 83,000 lettings in 2013/14.”
Although Government Members might get very exercised—as the hon. Member for Croydon South did—about what happened under the Labour Government, it might be better if they were exercised about what has happened in the last five and a half years. It was in those years that we saw the huge decline in the number of re-lets.
It is interesting that while we have had a reduction in re-lets in the social housing sector, we have also had a decline in the proportion of home ownership, which has fallen from 70% in 2002 to just 64% in 2013. The coalition Government not only presided over a huge loss in lettings and re-lettings in the social rented sector, but presided over a huge reduction in home ownership. That seems to be a pretty comprehensive failure in their housing policy. It does not seem to be a one-dimensional failure—it is a multi-dimensional failure.
Does the hon. Lady regret the 47% drop in first-time buyers between 2007 and 2008, and welcome the record numbers of first-time buyers published in August this year—the highest since October 2007?
However the hon. Gentleman wants to play this, home ownership fell from 70% in 2002 to 64% in 2013. I would have thought that he and his colleagues would want to share some responsibility for that awful state of affairs.
The hon. Gentleman makes an interesting point. However, PlaceShapers and other housing associations say that not all requests for a right to buy are accompanied by a mortgage application. They want to ensure that the source of money, if not through a mortgage, is from a bona fide source. That is a very real concern. We want to hear how the Minister thinks the right-to-buy scheme will address this particular set of concerns.
The hon. Lady will be aware that the conveyancing solicitor also has a responsibility to check the identity of the client and the source of funds, to prevent money laundering offences from taking place.
I simply reiterate my point that housing associations want to ensure that they can carry out due diligence and are seeking, as are we, some guidance from the Minister about what might be appropriate. In passing, I should say that the amendment is largely probing to test whether the Government have thought about how the scheme will work in practice, and whether the concerns of the housing associations that will have to operate it are being taken on board.
(9 years, 1 month ago)
Public Bill CommitteesThe hon. Gentleman has brought great clarity to the debate. We do understand—in fact, that is where we were some hours ago—that this was a manifesto commitment. What I am trying to tease out, if at all possible, is what factually led to the change in the policy between March and May this year. If the Government, presumably with the same information available to them in March as they had in May, thought that it was a good policy to have starter homes on exception sites in March, why did they not think that in May? We need to understand better the basis on which that policy change was brought about.
It is true that although most people—78% of respondents during the consultation process—answered yes to the question,
“Do you agree in principle with the idea of a new national Starter Homes exception site planning policy to deliver more new low cost homes for first time buyers?”
they were agreeing to an exception site planning policy to deliver the homes, not a priority on all sites. A number of people gave their reason for agreeing: it was because they considered that it would be bringing back into use land that might not be used.
Some other issues were raised about the exception site policy. Some people were concerned that if only starter homes were placed on brownfield sites, that could lead to a lack of a mix of housing in the community. There was also concern about where these particular plots of land could be available. In other words, if they were not really desirable plots of land generally to be developed, is that somewhere that we would want to place people who are getting on the housing ladder for the first time? It could be that the sites were not adequately serviced and therefore it might be difficult, again, to have first-time homeowners placed in the area. There is a whole range of reasons that might have led the Government to change their policy, and one can understand that. However, no mention was made of that policy or taking on board any of those issues that people raised in response to the consultation paper. There was a note that the issues had been raised and that a greater mix might be needed, and that was a good thing, but there was no indication in March that there would be a wholescale dropping of the exception site policy and that instead of having that policy, we would go to the other end of the scale—to the opposite extreme—which is where we have ended up, with a complete prioritisation for starter homes on almost all other developments. I am not sure that we have yet got an answer on that and I am not sure that we will get an answer, but it is an issue that the Minister needs to address.
Amendments 64, 68 and 69 raise questions about the Government’s approach to the general issue of providing enough affordable housing. Hon. Members know already that it is a major contention of the Opposition that there is too narrow a focus on starter homes as the way to increase affordability in housing. There should be consideration of a range of housing products.
Amendment 64 says that a reference to,
“any other type of property considered appropriate by the local authority to provide housing on a first time basis”
is needed. There should be a duty not only to provide starter homes. There should also be a duty on local authorities to support any other type of property considered appropriate to provide housing on a first-time basis. That could involve a number of ways of increasing home ownership: equity sharing, rent to buy and so on.
With amendment 68, we again think it is important that local authorities consider providing starter homes in addition to other types of affordable housing, and that they should be required to do that. In doing so, they should carry out an assessment of need, which I will come to in a moment.
As I mentioned previously, the Prime Minister specifically stated that he wanted to move away from affordable homes meaning only homes that are for rent, but of course “affordable homes” has never meant only homes for rent. Affordable homes can also be affordable homes to buy. We just need to be clear about what affordability means. We might table an amendment in due course to try to find out what the Government mean by affordability. It would be extremely helpful to all of us, in terms of knowing what we are talking about, to have affordability defined in the Bill, because over the years affordability has come to mean many different things. Indeed, a number of people in the housing sector are now telling us that it is hardly worth talking about affordable housing because nobody really knows what it means and, because it means different things in different contexts, it is pretty useless as a concept. I am not sure that I totally agree, but it is very important that at some stage the Minister clarifies what he means by affordable in terms of starter homes, low-cost home ownership and rented accommodation. We try to distinguish what is genuinely affordable to people by talking about social rents, because at least people understand what that means.
Does the hon. Lady accept that in the past there has been too great an emphasis on providing affordable homes to rent and not enough emphasis on providing affordable homes to buy?
That is a very revealing comment. It is hard to find any evidence to back up that point. As I said—
I will take the intervention by the hon. Member for Thirsk and Malton first.
The hon. Lady has presented much evidence of the need for affordable homes to buy in her evidence on owner-occupation. Is that not the evidence on what the clauses are meant to address—the fall in owner-occupation?
No, I do not, but that is an interesting twist on what I was actually saying, which was about the need to enable a local authority to meet housing need across all tenures in its locality. I am sure that in some areas that would include support for starter homes to be sold at a discount—below the market level. It could also include many other types of affordable housing that are needed in the area. I am rehearsing the very real concern, expressed by many people who gave evidence, that the starter homes policy will crowd out other types of development that might be needed locally, or indeed types of development that a local authority might think should take precedence over starter homes in certain areas because of the make-up of the local housing market. We are arguing for more flexibility in the affordable products that are delivered and a greater say for local authorities in determining need. The intention behind amendment 69 is pretty much to say, “Shouldn’t we be delivering what we think is considered necessary by the local authority?”
Amendment 70 points to the need for the affordable housing provided to relate directly to a robust assessment of the affordable housing needed by a local area. It would ensure that developments are then brought forward to match that need. It is fairly clear to me that the Bill should reflect that analysis of local need should be properly determined and based on a consideration of average and low incomes in a particular area. Instead—I am coming back to the same situation—precedence might be given to starter homes even if there is a pressing need for some other type of accommodation locally, which is then crowded out. That does not seem to be a very sensible approach to producing housing stock.
The hon. Lady seems to be implying that starter homes are the only form of development that will be carried out in our local communities, but we have heard evidence from a number of witnesses from housing associations who have said that they will increase the rate of house building. David Orr said,
“our offer to the government will see an increase in the number of…homes built, which has the potential to ease pressure in all parts of the market, including the rental market.”
But he also said—I think he made those comments in relation to the right to buy—that if homes are lost through the right to buy, although he might be able to guarantee a replacement, it would not necessarily be in the same area. A number of us thought that was probably not a satisfactory response. The last thing we want is the loss of genuinely affordable homes in a particular area, which are then replaced by starter homes or some other type of properties that are not affordable. That is a very real risk, but I will not go down that road any further as we will deal with those points in more detail when we get to the clauses that relate to the right to buy.
Surely the reason that the NPPF asks local authorities to carry out an assessment of housing need is so that it is able to reflect that housing need in its planning policies and in the determinations made in Committee. It seems somewhat contrary to the demands of the NPPF to simply say, “Thou shalt have starter homes. There shall be this many on that site. It doesn’t matter whether there is need for those homes or not. We are going to ignore the assessment of housing need that has been carried out by that local authority on type, tenure and size, in the interest of starter homes, because we think starter homes are more important and have to be delivered at the expense of everything else.” What is the point of local authorities carrying out a detailed assessment of housing need in their area if they cannot then reflect that need in the decisions they make or in the land set aside for development?
It is hard to see how a centrally defined target for starter homes fits with the NPPF. It is also hard to see what role evidence plays in bringing forward these starter homes. That is not to say that we should not have starter homes, but they should be based on a proper assessment of housing need—what is required locally and, indeed, what form starter homes should take—rather than a simple numbers game of trying to meet what could be fairly arbitrary targets. Of course, if those targets are not hit, there are all the compliance measures and threats to local authorities in clause 6, as well as further down the line.
This is not a zero-sum game for local authorities. This is the dead weight of central Government pressing them down and saying, “Thou shalt deliver starter homes in these quantities, or all sorts of really horrible things will happen to you as a local authority.” That seems completely contrary to not only localism but the whole underpinning basis of the NPPF.
We heard evidence from PlaceShapers, which said that local authorities need,
“the flexibility to have local solutions…to determine what is needed in that area, including a range of social rented housing, home ownership options, market rent and sale.”––[Official Report, Housing and Planning Public Bill Committee, 10 November 2015; c. 29, Q64.]
That puts the case forward very clearly. We cannot assume the housing needs of one area are the same as another area. We heard from a wide range of councillors and local authorities in the evidence sessions that there is no one-size-fits-all solution to the housing crisis. For example, we heard from Councillor Glanville of Hackney Council that his council has a waiting list of 11,000 households and more than 2,000 homeless households living in temporary accommodation within Hackney, elsewhere in London, and in some instances, regrettably, outside London.
It seems that for those types of council, the priority might not be starter homes for every single development. Their priority is, as it is for many councils around the country, to get people out of totally inappropriate temporary accommodation and get families out of bed-and-breakfast accommodation, which is totally unsuitable, into socially rented homes where they have some security of tenure and are able to put down links and roots, get their children into school and be active members of the local community. I thought Councillor Glanville made a powerful point to the Committee about that being the council’s priority.
Councils are deeply concerned about not only the loss of housing stock in their area, which we will come to later, but the fact that they could be forced to give valuable land over to a type of tenure that is not needed as much as socially rented homes. In the interests of brevity, I will not go through all the different authorities that wrote to us making similar arguments, but there is a strong argument, in totality, that we need sufficient and appropriate devolution of affordable housing priorities to local authorities, rather than ministerial direction. A growing number of authorities—the number is growing daily—have now accepted a devolution settlement from the Government, a number of which contain responsibility for housing, so it would be interesting, perhaps not this afternoon but later in the Committee’s deliberations, to hear how the Minister thinks those devolution settlements will affect the measures in the Bill. When combined authorities and mayors are given responsibility for housing, will they continue to be subject to central diktat on prioritising starter homes above all other sorts of housing?
I hope I have made the case that, in combination, this group of amendments seeks to tease out why the Government have not accepted a greater role for local authorities not only in determining local housing need but in meeting that need. The Government should give local authorities a greater role in choosing to accept or ask for starter homes on a particular site or asking for another housing product that better meets the range of housing needs in their area. I am especially interested to hear what the Minister would say to local authorities that have very high numbers of families on council waiting lists or in totally unsuitable temporary or bed-and-breakfast accommodation.
(9 years, 1 month ago)
Public Bill CommitteesQ 250 The CPRE has also expressed concern about the affordability of starter homes. Do you want to say anything more about that? Do you think the discount should be in perpetuity? Also, do you think that it will deliver more homes for rural areas?
Shaun Spiers: Our concern is particularly about rural affordable housing. The deal between the National Housing Federation and the Government to sell off rural affordable homes, which are affordable in perpetuity, will make it extremely hard to replace those rural homes, because it costs more to build a social house in a village. There is less land available, and there are relatively few specialist advisers. So if you sell the social housing in villages—in four fifths of villages there is no opt-out at all, and in one fifth of villages there is an opt-out but not a full exemption, so some of the larger providers who have only a few rural homes will have an incentive to sell them—it will be extremely difficult to replace those homes. Replacing them with starter homes that can be sold on the open market within five years, and which in any case will cost an average of eight and half times median rural wages—that is median rural wages, not lowest quartile wages—is no substitute.
The question for the Government and the Committee is, are we content to see villages become the preserve only of people who can afford to buy a home, or do we hold by the idea we have all had of villages for centuries, that they are genuinely mixed communities?
Q 251 Mr Spiers, on that point, you have obviously read the voluntary agreement between the Secretary of State and the National Housing Federation. It details the fact that housing associations would have discretion not to sell, for example where a property was in a rural area and could not be replaced. Does that ease your concern?
Shaun Spiers: It does not ease it at all, I’m afraid, for two reasons. One is that it is a discretion. Some specialist rural providers, such as Hastoe Housing, which gave evidence to the Committee last week—the chief executive of Hastoe and I are meeting the Minister tomorrow to discuss this point—have said that they will not sell. Other, larger providers, who have a few really high-value properties that are harder for them to maintain, because most of their stock is in urban areas—they might have those properties because of transfers or takeovers over the years—will be quite likely to sell them.
The other thing is that in the agreement between the National Housing Federation and the Government, the definition of “rural” is extremely narrow. It excludes about four fifths of what we would regard as rural areas, and it is almost impossible to get a rural area designated as rural by the Secretary of State under the current agreement. So the Rural Coalition, a group which includes the Campaign to Protect Rural England and the Country Land and Business Association, has proposed a much more comprehensive and much clearer definition of “rural” to the Government, but unfortunately the Government have not so far adopted it.
(9 years, 1 month ago)
Public Bill CommitteesQ 214 But with some safeguards, you think that it could be made accessible to the public? Would its secrecy not be a huge disincentive to the whole system, because only local authorities would have access to it?
Carolyn Uphill: I think that we need to reflect on that and respond in more detail.
Q 215 Mr Cox, you referred to the banning orders operating at a company level rather than an individual level. You want them to operate at a company level.
David Cox: No, we want them to operate at an individual level, which is the proposal in the Bill. This was not the proposal in the discussion paper earlier in the year. There is one reference in the Bill to a body corporate, but I am not quite sure where it comes from and where it ties in to all the other clauses. We certainly think that it should be at the level of the individual agent. Where it is offices of a company that have caused a problem, then again we could still ban the agent, not the agency. If you ban David Cox Lettings, for example, there is nothing stopping the company directors of David Cox lettings from setting it up again as David Cox Lettings and Property Management Ltd, at which point the agency has been banned but the agents are still trading. They could also go and work for another company. That is why we believe that it should be at the level of the individual agent, which it is in the Bill.
(9 years, 1 month ago)
Public Bill CommitteesQ 66 Can you see measures in the Bill that will speed up the planning process?
David Orr: I see measures that have the potential to speed up the planning process.
Q 67 At the moment, it seems as if homes sold under the right to buy will not have to be replaced in the same area. Do you have any concerns that that might lead to further regional disparities in the amount of affordable accommodation available? Would you like to see an amendment that would ensure that they are replaced in the same area?
Sinéad Butters: Our members certainly would. They are concerned about like for like replacements in the same geographical areas. The overriding factor is that local authorities working with their housing association partners can decide on what is appropriate for that community and have the flexibility to apply that. Some of the provisions in the Bill, such as the pay-to-stay provisions, are blunt instruments applied nationally which do not take account of local factors.
We would like to see that. Our members would be keen to ensure that those strong relations with local authorities in helping meeting housing need are maintained.
David Orr: I think this is a matter for individual housing associations and the conversations they have with local government partners and others. If, in any given local authority area, housing associations sell under the right to buy, I think how they are replaced is a matter for them in discussion with their local authority partners. I am not keen to impose unnecessary restrictions. It seems to me that we are under a great deal of pressure. There is much less public money going into new housing and we need to retain as much flexibility as we can. We have to look at the objectives and the pattern of behaviour of housing associations across the country. They mainly want to invest in the areas that they work in. That is what they care about, right across the country. I am anxious that we are creating a debate that will not turn into anything in real life because, in practice, if people sell they will want to try to replace in those areas where they can.