My hon. Friend makes an excellent point. I hope that we are able look at that this afternoon, because it would be interesting to hear what the Minister has to say about it.
Traditional secured tenancies are not tenancies for life. They are invariably subject to a probation period of at least a year. If there is antisocial behaviour during the tenancy, the court has the power to take away security of tenure and reduce the tenant’s rights in a demoted tenancy, so there are already measures that enable local authorities to end tenancies if there is a problem with the tenant. Indeed, the Local Government Association wrote to us to say:
“The Localism Act 2011 introduced flexible tenancies in acknowledgement that ‘a one size fits all model on rents and tenancies is not the best answer to the wide range of needs and circumstances of those accessing the social rented sector’. Councils should retain this freedom to manage locally their Tenancy Policy and decisions over tenancies. Every housing market is different and blanket national enforcements may risk impacting on coordinated local efforts to balance efficient use of stock while building stable neighbourhoods and communities. The requirement to review each tenancy every five years would be a significant administrative burden on councils. We would like to support the Government to work with councils in order for it to understand the impact of fixed-term tenancies and to then be able to use the information to inform future tenancy strategy.”
The new clause is not only profoundly unfair and unjust for people who need and are fortunate enough to get social rented tenancies, but profoundly anti-localist. That is what the local councils themselves say.
The 2011 Act gave local authorities flexibility. If, because of local circumstances, they have not used that flexibility to the degree that the Minister would like, under localism that should not give the Minister the right to legislate for them to do things differently. I want the Minister to explain why he thinks it is appropriate to introduce these new clauses on the last day of Committee stage. What work has been carried out with local authorities and tenants’ organisations to understand the impact of the proposals? What is he going to do from now on in terms of both the impact assessment and having the important discussions that must take place before the proposals go any further?
If a 46-year-old woman becomes a war widow, and her family fly the nest with the exception of one child, would she be asked to move out with the remaining child in due course? Would she pay the price of the Government’s social mobility policy by losing her marital and family home? What would she say to the child? Does my hon. Friend have any advice on that?
At this point, I do not—in fact, I was going to ask the Minister about that. Another question is: what about adult children who have been living in the house as their home for a very long time?
I shall finish with the following point. The reason why Margaret Thatcher offered secure tenancies in the 1980s is that she understood the need for tenancies that would offer families stability. There was a lot of discussion in the run-up to the 1979 election about what would happen to people in the social rented sector, and it was a good thing. It was the result of many years of lobbying and of knowing how important secure tenancies are to the stability not only of households but of communities that the legislation was introduced. It was introduced after a long period and a lot of deliberation, and it is critical that we do not legislate this morning to just get rid of it on what appears to be the whim of a Minister, a particular set of Ministers, or even the Prime Minister. It requires careful consideration, and we have not had the opportunity to consider the full implications of the measures.
My family had years of private rented accommodation and of being moved on, with young children. Getting a secure council tenancy was critical in giving all of us stability and good opportunities for social mobility. I cannot see where social mobility comes into these clauses. We know that making life more insecure does not lead to greater social mobility.
I thank my hon. Friend for that helpful intervention, which demonstrates the clear difference between Opposition and Government Members: we appreciate the value of social rented housing to many individuals and families in this country, and how important it often is in enabling people to turn their lives around and in giving stability, particularly to families on low incomes seeking to do their best in difficult circumstances. It is not simply a product that can be used one way and then another; it is important for whole families and for their life choices.
Security of tenure often gives people time, as my hon. Friend said, to think about what options and opportunities might be available to them, such as education or retraining. It is critical that we do not remove that important support mechanism and pull the rug from under people, particularly when they might be facing difficulties. We should ensure that they get the support they need.
The more I think about it, the closer I come to the word to describe it. Does my hon. Friend agree that asking local authorities and registered social landlords to go to people and effectively move them out of their houses is pusillanimous, to say the least?
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.
I have been momentarily knocked off track by the hon. Gentleman’s final comments. We have been debating most of the Bill without the detail we need because most of it is coming in regulations, so I hope he will address those comments to his Ministers.
I rise to support new clause 24, which was tabled by my hon. Friend the Member for Dulwich and West Norwood, and to speak briefly to new clause 31. The hon. Member for Croydon South might want to think about why so many planners from local authorities are leaving to join the private sector, because that used not to happen. It is a fairly recent phenomenon that so many local authority planners have been moving on. The reason is that local authority planning departments are in a very, very pressed situation, with reduced resources, greater pressure and increasing insecurity because they do not know when the next round of Government cuts is going to mean that they will lose their job. The only way to address that is to resource local authority planning departments properly—something that developers speak to me about all the time.
If the hon. Member for Peterborough is upset by the Local Government Association backing my hon. Friend’s new clause, he will be even more upset by the fact that the District Councils Network has come out very strongly in favour of the idea that there should be some cost recovery at a local level:
“Having a system where Whitehall dictates to local councils what planning fees they can charge is very unfair for local taxpayers around the country who are left paying the shortfall where fees don’t cover costs. Letting councils set their own fees is a much fairer system for both the applicant and the local taxpayer and will ensure there is flexibility in the system to recover the actual costs of applications.”
In 2010, a major review, which was instigated by the last Labour Government, was carried out of how local planning fees should operate. Instead of bringing forward a plan for the localisation of planning fees, as had been suggested throughout the consultation exercise before 2010, the Government merely revised the fee levels in 2012. That did not carry with it the degree of localism that we all wanted to see. As my hon. Friend has pointed out, London Councils has stressed that point recently, because of the impact of the increasing number of planning applications that local authorities are having to deal with, particularly in the London area:
“We believe the government should localise fee setting and scheduling controls so as to support boroughs that commit to boost the supply of housing. This would produce a more effective, swifter and consistent planning service, and ensure a properly resourced and more efficient planning system in the context of development control in London having seen an estimated net shortfall of around £37-£45 million annually”.
London Councils has stated that,
“if planning fees for large scale housing regeneration projects were charged on a full cost recovery system enabling councils to meet all 13 week planning targets, this would save developers up to £486 million per year in delayed development costs, while adding only £65 million in planning fees. Full cost charging could also be used to fund the kind of pro-active multi-borough teams that supported the work”
of the Olympic Delivery Authority. Developers, the LGA, London Councils and the District Councils Network —more or less everyone involved in the planning and development system—think that local authorities should be able to set planning fees locally, but the Government do not. We can find no rationale for that. The District Councils Network has helpfully set out for the Government some principles that could be applied.
Does my hon. Friend agree that there are contradictions all over the place? For example, the Government are quite happy to let local authorities raise 2% for social care, but they do not seem to take the same view on matters such as this.
My hon. Friend makes a good point. As we have discussed several times in Committee, the Government’s approach is not necessarily consistent.
The District Councils Network has requested that four common principles be adopted. Principle 1 is the ability to have full cost recovery as a minimum, with full transparency as to method of fee calculation, which could be achieved through an earned autonomy approach. Principle 2 is that council tax payers should not subsidise commercial activities or companies. Principle 3 is that, wherever possible, charges should be determined locally. Principle 4 is that if central Government continue to determine charges at a national level, there should be an agreed annual indexation mechanism. If we do not want to go all the way down the road of local charging, some of those principles could be applied to move us some of the way down that road. I am interested to hear what the Minister has to say about that, particularly as the Government seem to be in an isolated position once again.
Thank you, Mr Gray.
We know that the Government’s productivity plan indicated that the proposals for permission in principle would relate specifically to brownfield land, but the Bill itself—I think the Minister confirmed this on Thursday—places no such limitations upon it. Given the three methods that can now lead to permission in principle, this could be fairly widely applied. If it is going to be so widely applied, I hope that in his summing up the Minister will say what will happen to local communities, how they will have a say, and in particular what will happen if they are really unhappy about some of the details. My hon. Friend the Member for Dulwich and West Norwood was right to say that although people might have concerns or objections about building in a particular area, often these can be alleviated or ameliorated with some discussion about the type of materials to be used, or by more land being given over for environmental benefits or something of that nature. We are absolutely not clear how that happens in this case.
Does my hon. Friend agree that this is one of the most centralising pieces of planning legislation that this country has ever seen, dressed up as localism?
Indeed, it is almost Maoist. Does my hon. Friend the Member for City of Durham agree that the reality is that local people would rather trust local decision makers than centralised diktats from Secretaries of State?
My hon. Friend makes a powerful point and comes to the nub of what I want to ask the Minister. As requested by Wildlife and Countryside Link and many other organisations, he needs to confirm that the measures are not a contravention of article 6 of the Aarhus convention, which was ratified by the UK Government in 2005. I am sure the Minister knows, because he studies the convention over breakfast in the morning to ensure that all planning decisions that come to the Department do not contravene it, that the article sets out standards for public engagement, with particular regard to ensuring a strong local agenda. It is public engagement in its widest sense.
People are concerned that the Government proposals simply ditch the entire localism agenda and that they are instead adopting, as my hon. Friend just said, a highly centralist and top-down approach to how planning permission is granted.
Returning to public participation, because of the many ways in which people can get planning permission, the new system will be difficult to navigate not only for the public, who may want to have a say, but for developers, who will have to choose between three or four routes—we do not yet know how many—of getting planning permission. That seems unhelpful.
To emphasise what my hon. Friend the Member for Dulwich and West Norwood said earlier, we learned from the Minister on Thursday that there are no time limits, so if a developer gets permission in principle through a mechanism about which we are not entirely clear at this point, it is possible that nothing will have happened 15 years down the line. What incentive does the system offer for a developer to build once it has permission in principle? It could simply do as developers do at the moment and hold on to pieces of land until the market improves. According to its market model, a developer may want to build 400 houses in a neighbouring borough and hold on to the piece of land until there is a downturn or something of that nature. The National Housing Federation wrote specifically about the proposal that it
“should be time-bound to incentivise delivery.”
We totally agree. Without time limits, we cannot see how the change will speed up planning and the delivery of new housing, which is what we all want. Planning is one thing, but getting houses built is what is really important. We just do not see how the measure will achieve that end without some timeframes.
I want to speak in support of paragraph (a) and also briefly on paragraph (b) proposed in amendment 285. It is incumbent on all of us, but in particular the Minister, given that it is his responsibility, to ensure that if additional burdens are placed on planning departments or a strong role is required from them to make these measures work, local authorities are given the resources to undertake that work. We know that they have had a 46% cut in funding in the last five years and that fees are not set at full cost recovery, so taxpayers make up the approximately £450 million needed to make planning departments function. A number of people have told us that this is a serious issue. It needs a serious response from the Government about how they are going to get the necessary resources into planning departments so that they can deal with planning well, respond quickly and easily to inquiries from the public and, critically, from developers, and turn round planning applications, technical details consent or anything that the new system requires of them both quickly and professionally. Without any measures in the Bill to tackle the lack of resources we cannot see how local authorities can respond in the way that the Minister expects.
My hon. Friend mentioned wellbeing, which made me recall a speech by the Prime Minister—I pay huge attention to his speeches—in which he talked about wellbeing. He said:
“I am excited about this, because it’s one of those things you talk about in opposition, and say that this is something we ought to try and measure, get right, and understand”.
Does she agree that the Prime Minister is spot on in trying to ensure that wellbeing is at the front of Government policy?
Well, is not that interesting? We obviously have a convert to the cause in the Prime Minister, who will clearly join us in our efforts to get the pursuit of happiness built into the planning system. Let us hope he will send a quick text to the Minister so that we can get agreement on the amendment, because an excellent outcome to our deliberations would be to ensure that we got a planning system with some vision for the future built around sustainability principles, with wellbeing at its centre.
The amendment specifically asks the Minister to ensure that: urban development corporations have land value capture attached to them; there is community ownership of land and long-term stewardship of assets; there are mixed tenure homes affordable for ordinary people; there is a strong local jobs offer in the garden city; and there is high-quality, imaginative design and generous green space, linked to a wider natural environment, including a mix of public and private networks of well managed, high-quality gardens, tree-lined streets and open spaces.
The Opposition think it is extremely good that Ebbsfleet is being put forward as a garden city. The Labour party thought about that and put down the foundations for it about a decade ago. It is great to see that coming to fruition, but calling something a garden city does not make it a garden city. If it is going to be a garden city, it has to have high-quality gardens, tree-lined streets and open spaces, as well as
“opportunities for residents to grow their own food, including generous allotments”,
a strong cultural offer, and
“recreational and shopping facilities in walkable neighbourhoods”.
I do not think that we have touched on this so far in our deliberations, but if we are to produce and build truly sustainable communities, we have to think about how we encourage people to walk or cycle, or how we connect them through good, publicly accessible transport systems.
We need built into the legislation the principles of what will make up a garden city such as Ebbsfleet or any future developments that will come under UDCs. Otherwise, I am not sure—the Minister might know another way—how it will deliver a garden city as opposed to a UDC that will simply deliver new homes. Those new homes are very welcome—we are not against them—but we are concerned about the fact that there is nothing to ensure that a garden city emerges in any way at all.
The Minister seems to think I do not get out enough, so I just want to reassure him that I do sometimes go to see new developments and I did go to see Ebbsfleet. The developers are very keen to have good infrastructure underpinning that development. However, the urban development corporation that underpins Ebbsfleet does not require them to do any of this. That does not seem satisfactory. It is called a garden city, yet there is nothing that makes it a garden city.
If I have missed something in what the Minister is bringing forward for these new development corporations, I apologise and he can correct me, but as I read what is in clauses 109 and 110, I cannot see anything that aims to put into the Bill that these urban development corporations must address issues of sustainability. We want, for example, to see really good-quality houses built, but we also want to see zero-carbon homes. That is what was meant—I quote the Government expressly—when they said their aim for Ebbsfleet and garden cities generally was to provide
“high quality, attractive and sustainably constructed housing”.
How can the Minister be sure that that will be achieved without having something in the Bill about how these development corporations must address issues of sustainability?
Opposition Members feel strongly about this issue. We have argued long and hard for a new generation of garden cities. Many organisations, including the Campaign to Protect Rural England, have written to the Minister and to the Committee urging them to take on board what is in the amendment and to put more in the Bill so that we can ensure that we have the sort of development we want to see—an attractive environment with workable housing and social facilities, an amazing, visionary new place to live, an amazing regeneration of an area that we can all be proud of.
Once again, my hon. Friend hits the nail on the head. We often forget that we are talking about planning places that we hope will exist for generations to come. We want to be proud of the quality of the new developments and it behoves all of us, including the Minister, to ensure that garden city principles underpin the new developments.
I fully recognise those aims. Not far from where I live, the Criddle’s Estate was developed by a well-known socialist in our neck of the woods. It remains a beacon to the way developments can occur, if you get things right. The houses are solid, well sought after and an integral part of the community. We owe it to our children and grandchildren to make sure that, when we build garden cities, or developments that are not garden cities, we set out the principle clearly for everyone to see.
The amendment is perfectly reasonable. It sets out a framework for future development and I hope the Minister, even if he does not agree with it completely, understands and accepts the principle on which it is based.
The point housing associations were making, I think, was how difficult it was to get some of that information. It is interesting to question why the proposed thresholds are so much lower than the thresholds that were in the original consultation document. Last month the Government introduced a further consultation document on the new thresholds of £40,000 a household in London and £30,000 outside London. Part of the reason for the lower thresholds, I suspect, is that not many people on very high incomes live in social rented housing. Presumably, at some point in our discussions on this part of the Bill, the Minister will explain to us why the Government have consulted on much lower thresholds than were in the original consultation document.
Is my hon. Friend aware that the Association of Retained Council Housing has said that the unresolved practical difficulties are likely to complicate things further, and that the administrative process will not justify the likely income?
Indeed. That is a succinct critique of the whole scheme in one sentence.
As we know from the most recent consultation document on pay to stay, the Government have accepted the need for a tapering scheme, but we have no idea whether that is a firm reassurance that a taper will be applied. Many of those who responded to the consultation said that there is a danger that families will fall off the cliff if they exceed the given threshold and there is no taper in place.
The Committee has received extensive written evidence from Tower Hamlets Council, saying how difficult things will be for tenants, particularly in London, where there is a substantial difference in many areas between a social rent and a market rent. A family in London might have a household income of £40,000, which, let us be honest about it, is low for London—it is about half the average wage.
On the concerns expressed by the hon. Member for Lewes about subsidies—not that I accept that her principle is about subsidies—does my hon. Friend agree that there seems to be a dislocation between what Government Members say about marginal subsidies for some people and about subsidies of £14.5 billion, according to the Government’s own figures, to train operators, subsidies to defence firms and grants to businesses? If the hon. Lady is so concerned about subsidies, would it not be best to get a grip on those figures first, rather than challenging the ones we are discussing?
My hon. Friend makes an interesting point.
I would direct all members of the Committee to the detailed briefing we received from Tower Hamlets Council. I should have said before that it is just one example of the many briefings we have received demonstrating the impact that these measures will have on housing stock and tenants. It is worth Members reading that evidence, because it shows that many people, in many areas of London, will be plunged immediately into poverty levels of income if the scheme is applied as currently outlined. Indeed, that will happen not only in London but in any area with fairly high market rents, which means most of our cities. It also means some of our more rural areas, because there is such a dearth of social housing that there is real pressure on housing stock, so market rents are quite high. It is important, therefore, that we take time to look at the impact of these measures.
We have also had an important briefing from the Joseph Rowntree Foundation, which says:
“The threshold at which ‘high income’ is reached will be…important.”
It also says that its research shows
“that this proposed threshold may be too blunt to accurately reflect the differing needs of households. Each year, we ask members of the public to help us define a Minimum Income Standard, showing how much money people need, so that they can buy things that members of the public think that everyone in the UK should be able to afford. The results of this exercise for 2015 show that a couple with two children would need to earn at least £20,000 each to achieve a basic standard of living.”
Yet here we have people earning much less than that having a lot more of their income taken up by housing costs. The foundation says that the measure will plunge more people into poverty.
I beg to move amendment 218, in clause 76, page 31, line 1, leave out subsection (3).
The amendment would reduce the scope of regulations made under this section.
I can be very brief about this amendment. As the Committee knows, because we have mentioned it a few times, we are concerned about the powers being given to the Secretary of State to do all sorts of things. We are worried about the scope of the regulations under clause 76(3)(b) that enable the Secretary of State to say exactly what type of information and evidence might be required regarding people’s income, as well as
“the time within which and the manner and form in which the information or evidence is to be provided”.
That is an extraordinary intrusion by the Secretary of State into how housing associations and local authorities run their affairs. We are going to have regulation and the Secretary of State will be able to say, “This is the information that you are going to require. This is the evidence—two payslips, three payslips, four payslips, five payslips.” We do not know. Presumably at some stage we will see the regulations. Alternatively, the Secretary of State might say, “I’m sorry. No, we do not think that payslips are good enough. We want an employer to estimate an annual income. We want an employer to give a statement of exactly how the pattern of earnings accrued to that person throughout the year.”
The Secretary of State is going to tell housing associations and local authorities exactly how to get the income and in what way, whether practical or not, and the time, manner and form in which the information or evidence is to be provided. The possibilities of what this could mean under clause 76(3)(b) are endless. Will it all have to be electronic?
Does my hon. Friend agree that this seems to be in complete contradiction to the Prime Minister’s view that local authorities should be trusted to get on with the business of the day? To repeat a phrase I have used in the past, it shows an anal retention of the detail of what a form should look like, when it should be sent out and what it should and should not include. Does she agree that it is about time the Government started to chill out?
My hon. Friend introduces a very good phrase that we might use more often in Committee: “chill out”.
No—I am not going down that route.
I would have thought that local authorities and housing associations should be allowed to manage their own affairs in respect of how they collect information about income so that it suits their tenants. The Secretary of State could decide that all information should be supplied and obtained electronically, but a lot of tenants might get weekly payslips, so that would be extremely difficult for them. He might decide that the timeframe should be three months, which could be extremely difficult for those with fluctuating earnings.
This subsection is nonsense, because to make the scheme operate all the Secretary of State has to say is that housing associations and local authorities must determine the income of their tenants and apply higher rents, rather than telling them what kind of information or evidence will be required and the time and form in which they must get it.
That is an interesting point of view, but it is rather at odds with what we often hear from the Government about localism, letting a thousand flowers bloom and letting local authorities get on with the job of managing things. In fact, it probably runs counter to the whole devolution agenda, so the next time the Secretary of State gets up to expound the many benefits of devolution—I totally concur: all of us want to see more devolution—I might be tempted to remind him that subsection (3) is at odds with the devolution ethos. It is incredibly prescriptive, because not only does it require particular information from local authorities or housing associations, but it requires that in a particular way.
If I could push this point, does my hon. Friend agree that the Government are effectively saying to local government, “You are going to fund yourselves via council tax or business rates,” so all the responsibility goes to them, but at the same time the Secretary of State and Minister seem to be telling local government what the colour of their forms should be?
My hon. Friend puts it very well indeed. I will not labour the point further. We are clear that this is an unnecessary intrusion into the operational practices of local authorities and housing associations, and in fact—this is the main reason why we tabled the amendment—it could be unworkable, because the Secretary of State could set a way of collecting data that is impossible for small housing associations. I will be interested to hear how the Minister will defend the inclusion of the clause in the Bill and how he squares it with the devolution agenda.
In 2007, the then shadow Cabinet agreed to a document entitled “Freeing to Compete”. One of the things it said was:
“Before imposing traditional ‘heavy’ regulation, government should always consider whether the ends could be achieved by less burdensome means, such as through competition, incentive schemes, or self-regulation.”
Does my hon. Friend think that this measure goes with the spirit of that quote?
Absolutely not. Lots of housing associations and local authorities have written to us to say that they are concerned about how the new public body will operate and how onerous interacting with it will be. One said:
“Administrating Pay-To-Stay…will be a near impossible demand upon our self-managed community. Inevitably we would need to look at outsourcing much of this work which will further add to the demise of”
their community.
“It will also be a drain on”
their resources. The point they are making is that they are concerned that the new public body, which will probably be very bureaucratic, will set up a lot of new systems with which social landlords will have to interact and which could put onerous burdens on housing associations and local authorities.
That is an interesting concept. It is so interesting that I am tempted to withdraw my amendment, so that we can come back and have a much fuller discussion about what a flexible public body looks like and what the flexibility encompasses. On that basis, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Clause 77 ordered to stand part of the Bill.
Clause 78
Power to increase rents and procedure for changing rents
My hon. Friend makes an important point about how lifetime homes could be funded. That is extremely important. We heard evidence in the early stages of the Committee that some funding streams for supported accommodation were disappearing because of the cuts to local authorities, making it harder for them to provide that much-needed accessible housing.
Does my hon. Friend agree that the issue is not only about resource, although I completely accept that that is important? Local authorities do not go out of their way to be difficult in terms of planning processes. In the main, they genuinely try to reflect on what their local communities say now.
I absolutely accept that. My hon. Friend is absolutely right to remind me that local authorities do a very good job in trying to assess local housing need. The purpose of the new clause is to make sure that in doing so they understand the need for accessible homes, and perhaps look at ways of adapting future stock to meet the needs of people over a lifetime, rather than only having to think about specialist housing. It is about how the definition is made.
New clauses 14 and 15 need to be considered together. Through new clause 15, we seek, in the light of clause 96 on the power to direct amendment of a local development scheme, to test the Minister on whether the local plan will have primacy in local planning, or whether clause 96 will give primacy to another body or document. With these new clauses, the Opposition want to assert the primacy of the local plan in plan making in this country. We think that local authorities best understand the needs of local communities. Although the local plan-making process could be improved—I will talk about improvements that could be made in a moment—what we like about it is that local authorities have to consult their local communities extensively when they put their local plans together. Therefore, all parts of the community are involved in the creation of those plans.
There are lots of different methods that local authorities can use to ensure that the community is not only involved in putting together the local plan, but actively participates in it. Committee members have had information about the charrette system, which can help local communities to participate actively in the plan making. There are excellent examples from across the country. In the south of my region, Scarborough is a very good example. With new clause 15, we are asking the Minister, in the light of clause 96, to ensure that primacy is still given to the local plan.
(9 years, 1 month ago)
Public Bill CommitteesAt a later stage of the Bill. Unfortunately, the hon. Lady’s sentiments are not shared, particularly by some of the larger housing associations. They have already said publicly that the combined measures of the Bill and the Welfare Reform and Work Bill mean that they are so unsure about their future income and their future ability to borrow to invest in that sector that they are pulling out of building social rented housing completely. We also know that many local authorities are already borrowing to the maximum against their housing revenue account. Because they are facing cuts and because of loss of income, they are simply saying that they do not have the resources to invest in new housing.
Is it the Minister’s expectation that all the 245,000 houses that we need each year will be built by the private sector? If that is not the assumption underpinning the Bill, how does he expect homes to be built for social rent? Who does he expect to build them? Those are the questions underpinning the amendment, and I would like to hear what he and other Members have to say.
Reference was made by the hon. Member for Peterborough to anecdote, but I do not see—I am sure that my hon. Friend the Member for City of Durham can comment on this—how housing associations, such as Riverside in my area, which has 59,000 houses, are coming along with anecdotes, because they have to base things on facts. Riverside said to the Committee that the Bill will not do enough to stimulate new housing development and urged the Government to introduce a national housing supply strategy by 2016. It went on to talk about how that could be financed and so on. The reality is that the Bill does not do enough. Would you agree?
(9 years, 1 month ago)
Public Bill CommitteesWill my hon. Friend be at all surprised to learn that the Mayor of London fully agrees with her in his submission to this Committee?
I know the Mayor of London has made that submission. Indeed, it was partly as a result of his intervention in the discussion that I thought he might find it extremely helpful for me to include him in the amendments. Consultation about price caps and so on would have to take place not only with local authorities, but with the Mayor of London. Of course, it again begs the question of what will happen when we get greater devolution, because we will have a mayor for Manchester and a mayor for Liverpool. Is the Minister saying that, even though they will be directly elected mayors who have responsibility for housing in their area, their views about what the price cap should be or who should be defined as in need of a starter home will not be heard, and that the decisions will be whipped away from them and given to the Secretary of State without any opportunity whatever for the mayors to have a say in the process?
Given the advance of time, I will not go through the many examples of people who made representations to the Committee that we need to amend the power given to the Secretary of State to limit that to a smaller range of circumstances. If he is carrying out those responsibilities, we need amendments in the Bill or in regulations to say that that can happen only in consultation with local authorities or mayors and—this is a critical point—with the agreement of local councils or mayors, because they are the people who know best what is needed in their areas.
I beg to move amendment 71, in clause 4, page 3, line 15, at end of line insert—
“(5A) The regulations may provide that sites can be exempted from the requirement to promote starter homes where a site has a scheme that—
(a) is a “build to rent” scheme;
(b) contains supported housing for younger people, older people, people with special needs and people with disabilities;
(c) contains a homeless hostel;
(d) contains refuge accommodation; or
(e) contains specialist housing.”
The amendment would remove sites from the starter homes requirement where other types of affordable housing have already been planned for.
The amendment would alter clause 4, so that sites could be exempted from the requirement to promote starter homes where they are delivering a scheme that is either a build-to-rent scheme or one that contains supported housing—for younger people, older people, people with special needs or people with disabilities—or where it contains a homeless hostel, refuge accommodation or other forms of specialist housing. In a sense, this amendment is returning, albeit in a much more specific way, to the theme that we have already rehearsed a few times today, which is whether the starter homes requirement will crowd out other forms of housing that might be needed in a local area.
Clearly, anybody who is providing supported housing for older people or younger people, or specialist housing for people with particular needs or disabilities, is already discharging a very important function for society and for the local community in building and funding that type of accommodation. We just wonder whether there would be huge viability issues for sites if they are trying to build specialist accommodation, for example bungalows that are accessible for people with disabilities or for older people, or if the local authority wants specialist or supported accommodation for younger people or for people fleeing domestic or other forms of violence as part of a planning gain.
This is a genuine concern. The Minister will know that a number of different organisations are terribly worried about the fact that, for example, women’s refuges are suffering dreadfully from cuts to local government funding. They have urged the Government,
“to take a step towards securing the long-term future of the network of specialist accommodative domestic violence services. It is essential this money is spent properly”,
so that refuges and the provision of refuges do not suffer because of the requirement.
Since 2009-10, there has been a huge rise—I gave the figures earlier—of 26% in the number of people who are homeless. This is a truly shocking picture, as is the rise in the number of people who are sleeping rough. My question to the Minister is, is it not just as important that a new development contains, or funds, a homeless hostel or specialist and supported accommodation for people with specific difficulties and issues? That set of needs should not be overridden by the desire for starter homes. The issue is probably one of viability, which is why we need to hear from the Minister in some detail about how section 106 agreements for this type of accommodation will be forthcoming when there will also be discounts for the starter homes initiative, and there may be CIL contributions for infrastructure and section 106 agreements to meet other needs.
We are hearing from a lot of developers—the Minister must be hearing this too—that the finances are simply not going to stack up. There will simply not be enough uplift in the land values across the country to be able to ensure that the sorts of schemes mentioned in the amendment come forward through section 106 agreements. Is it the Minister’s intention that hostels and supported housing for young people, and specialist accommodation for people with disabilities will be funded in another way? Will he guarantee that funding is available, so that there is no shortage of refuge places for women fleeing domestic violence or of supported housing places for young people? If so, that would be extraordinary because there is a huge shortage of those places at the moment. Indeed, local authorities are already finding it difficult to secure the accommodation needed to support young people.
The Minister seems to be incredibly interested in Durham. I will go and do a bit of work on Durham’s budget and bring a bit of reality to the Committee about what Durham local authority is experiencing. It simply does not have the means to provide supported accommodation to young people in my constituency. It is a really desperate and growing need.
Actually, as the former leader of a council, I recognise the figures but I do not recognise the suggestion that those reserves are available. In fact, in my authority, we have up to £20 million set aside that we were required to set aside, which is included in those reserves, for land remediation to do the very things that we want to do in terms of building houses. So that is £20 million, my hon. Friend might like to know, that is set aside, that we cannot use, whether the Minister likes it or not.
My hon. Friend makes a pertinent intervention. As I said, the figures require further examination. I will do that in due course. The point I was making was that many local authorities are strapped for cash and look to their partners in housing associations and other specialist organisations to help them meet their housing need, particularly for vulnerable groups with special needs. It is not clear how those partnership agreements with developers and others will operate when they are working in a system that gives such priority to discounts for starter homes.