Seema Kennedy
Main Page: Seema Kennedy (Conservative - South Ribble)Housing and Planning Bill
Seema Kennedy Excerpts
Dr Blackman-Woods
As the hon. Lady knows, many people in this country and, I am sure, in her constituency, are on council waiting lists. What we should be thinking about is how to build more council houses to meet that need.
Lords amendment 57 would increase the thresholds for pay to stay to £50,000 in London and £40,000 outside London in order to limit the damage that this dreadful policy will cause. Similarly, Lords amendment 58 would ensure that income thresholds would increase in line with the consumer prices index, not at the whim of the Secretary of State. We note that the Government will vote against those amendments, but we could do with more explanation of the basis on which they will increase the thresholds.
There are too many Government Lords amendments to comment on, given the time available, although that again demonstrates a problem with this Bill. I will highlight a few of the other amendments in the group, however. We are pleased that the Government adopted Lords amendments 26 to 36, which were tabled by Lord Kennedy and Baroness Grender. The amendments will enable information to be given to third parties when the recovery of abandoned premises is sought and provide a definition of a “tenancy deposit”. My hon. Friend the Member for Erith and Thamesmead (Teresa Pearce) and colleagues in the Lords worked hard to ensure that such measures were included in the Bill.
Government Lords amendments 38 to 43 replace the requirement for local authorities to sell off vacant high-value council housing with a requirement to sell off “higher value” vacant council housing. If selling off high-value housing was bad, selling off higher-value housing is much, much worse. Although the approach might help London a little, it will lead to more sell-offs in other areas. As the Public Accounts Committee noted, there is not enough information available on the impact of the policy or its scope to allow Parliament to vote sensibly on it. Shelter’s analysis found that to raise the £4.5 billion a year needed, each local authority could be asked to raise on average a massive £26 million. That corresponds to the sale of 23,503 council homes a year, which is six times more than it was estimated would be sold under the previous high-value regime.
Government Lords amendment 56 supports the exemption of some categories of persons—as yet unknown —from pay to stay provisions. Labour Members argued strongly for such a measure in Public Bill Committee. The amendment states that
“regulations may create exceptions for high income tenants of social housing of a specified description.”
Do such tenants include people aged over 65, people with a registered disability, people with seasonal contracts of employment, or people who have a household member in receipt of care? We have no idea what the Minister intends, and that is not satisfactory.
Government Lords amendments 215, 217 to 221 and 233 amend proposals on ending security of tenure. Although we recognise that allowing 10-year tenancies, and longer tenancies if there is a child in the home, is a step forward, we still think that the whole policy is dreadful. Many people are commenting that what is really important about social housing, and council housing in particular, is that it provides security of tenure, and enables communities to be stable and to thrive. One can only wonder what will happen to parents when their children reach the age of 19, and what will happen if a young person wants to live at home beyond that age. The policy fails to acknowledge that we are talking about people’s homes. The Government should bring forward proposals to extend security of tenure in the private rented sector, rather than reducing that security for council housing tenants, with all the social upheaval and personal anxiety that that brings with it.
Lords amendments 90 and 91 deal with electrical safety checks. I am pleased that the Government were forced by the action that we took in the Commons, and by their lordships, to adopt the amendments, which would put a duty on private landlords to ensure that electrical safety standards are met, and that checks are carried out at a reasonable frequency and by people with the proper expertise. We should thank Baroness Hayter and others for tabling those amendments and arguing for them in the Lords.
Finally, I am pleased that their lordships have insisted that the regulations that we are still to receive—there are many—that will set out much of the detail of the Bill must, in the main, be subject to the affirmative procedure. This includes measures on banning order offences, and determinations and regulations relating to vacant higher-value housing, high-income social tenants, electrical safety, client money protection and planning freedoms. I thank the Lords for ensuring that the Government’s nasty habit of putting through important regulations under the negative procedure ceases.
As the whole housing world has acknowledged, the Bill does little to solve our housing crisis, yet will make things a whole lot worse for the supply of genuinely affordable housing. According to Inside Housing, the Bill has been producing headaches for the Prime Minister, but I am sure he will be pleased to know that he will not need a junior doctor to cure his headaches—all he needs to do is to drop this dreadful Bill.
Seema Kennedy (South Ribble) (Con)
I draw Members’ attention to my entry in the Register of Members’ Financial Interests.
I am pleased to support the Bill. The passions raised in Committee and now in the Chamber are testament to the fact that we know that we need to build more homes. Many of our constituents want to get on the housing ladder and the Bill does great service for that cause. There is no doubt that house building took a hit following the recession that began in 2008, but I am pleased to note that as our Committee stage was winding up in December last year, housing building completions were at their highest level since 2008, with 143,000 completions in that calendar year. That is to be applauded, but there is still much more work to be done to fulfil the aspirations of the 86% of our fellow Britons who want to own their own home.
Starter homes are an essential part of that offering, to allow young people to own their homes, rather than renting for years on end or perhaps for ever.
Meg Hillier
Most of us on the Opposition Benches would agree that a starter home for a young family is a great thing. Does the hon. Lady not regret that over the past eight years, under a Conservative Mayor of London, we have seen a lot of housing built, but it is for private sale at inflated prices—luxury homes sold to overseas developers, and in no way within reach of local people in my constituency or across London?
Seema Kennedy
I have great respect for the hon. Lady and the work she does on her Committee, but, with great respect to the Opposition, this is not a debate just about London, as my hon. Friend the Member for Rossendale and Darwen (Jake Berry) pointed out. Much of the debate in Committee and the Chamber has been about London. There are affordable houses, and I know that in London there are many. However, there are 590 MPs who represent areas outside London.
Mr Jackson
It was a great pleasure to serve with my hon. Friend on the Bill Committee. She touches on an interesting point. Does she agree that none of our witnesses was able definitively to demonstrate that, leaving aside London and most of the south-east, starter homes with the right vehicle, such as Help to Buy, would be unaffordable? For the vast bulk of England, they were affordable.
Seema Kennedy
Indeed. Those happy days in November and December that we all spent together in Committee were an unalloyed joy. With the right vehicle, such as the Help to Buy ISA, and with shared ownership, starter homes are affordable in many areas, including developments that I have visited in my constituency of South Ribble. For the generation between 20 and 40, which has been disproportionately affected by the increase in house prices, starter homes are a way to get on the property ladder, and we should all welcome the commitment to build these 200,000 homes.
Dawn Butler
I am a London MP. It might be difficult for Members who are not London MPs to understand how difficult and how unaffordable it is to live in London, but that is why London MPs make the points they do. It may be of interest that Londoners will be voting on Thursday in what is almost a referendum on the housing crisis in London.
Seema Kennedy
I will let other London MPs respond more fully on the particular London issues.
Seema Kennedy
I will make a little progress—otherwise, I will be up and down like a fiddler’s elbow.
Let me turn quickly to amendment 1. A 20% discount over 20 years does not really take account of the practicalities of people’s lives—20 years is far too long. We are talking about starter homes, so one would hope that people are not going to live in them for 20 years. As the Minister said, the average time people live in a house is seven years, not 20. The amendment places restrictions on starter home owners, who are precisely the generation—those aged 20 to 40—whom the Bill aims to empower. I am glad the Government are consulting on the duration of the discount and the taper. If we want builders to build and lenders to lend, we need to take a practical, not an ideological, approach—the policy has to work.
Lords amendments 9 and 10 would replace the national requirement with a requirement that is set locally, depending on local housing needs and viability assessments. That completely undermines our manifesto commitment to build these 200,000 homes, but, as my right hon. Friend the Member for Wokingham (John Redwood) mentioned, that policy is very popular. Constituents come to us saying, “I want to get a starter home. How can I get my foot on the ladder?” If we were to remove the national requirement, I fear we would delay the process.
Andrew Gwynne
Earlier the hon. Lady actually made the case for a more localist approach. She said she was not a London Member and that circumstances in her constituency were very different from those in the capital. Surely, if there are different circumstances in different parts of the country, we need a local approach.
Seema Kennedy
I have the greatest respect for the hon. Gentleman, but the Lords amendments would hold the process up; we would get to 2019, and no starter homes would have been built—I really fear that that would happen. The amendments would slow things down, but we need to start building now.
As we know, house prices have risen exponentially, particularly in London, but that is because of a lack of supply. The picture is complicated, and one could not say that things have happened for one particular reason, but the lack of supply is a fundamental block, and we touched on that all the way through Committee. We need to get more houses built—and quickly.
There was much debate in Committee about permission in principle—the new consent model of planning—which will provide certainty.
Marie Rimmer (St Helens South and Whiston) (Lab)
Will the hon. Lady give way?
Seema Kennedy
I am afraid I am going to make a little more progress.
Developers and builders want certainty and speed. One brake on development is the lack of certainty and the slowness of certain planning departments. The whole essence of the Bill is to get the country building homes—to increase the supply and to make more people home owners.
This measure is particularly effective for small builders, who do not have the scale to have in-house planning departments. Measures to encourage those who might build 10 or 20 homes in a village are particularly effective.
Seema Kennedy
I agree. Given how small builders are funded and run, they are not land banking in the same way. They want to build homes and move on, whereas the large multiples have a different approach because they are land investors as well as builders. I think there is very much a cross-party consensus that we need more units built. That is the whole essence of the Bill.
I welcome the Lords amendments that exclude the winning and working of minerals, which covers fracking. In areas such as South Ribble and the Bowland basin, where companies have made initial exploratory attempts, that will give reassurance to some of my constituents.
We need to build more homes. The Bill will provide some hope and, hopefully, some homes for the many of our constituents who aspire to own a home of their own.
Mr Betts
The most astounding thing about the Government’s proposals is that we are expected to make decisions about them today without any idea of the costings. When the Minister came to the Communities and Local Government Committee, he said the Government would produce costings in due course—I think he actually said spring was the likely time. Well, here we are in the spring, and I have not seen any figures.
It is astounding that we should hear from the Government over and over again that the sale of a, now, higher-value council home will pay for the replacement of that home, the replacement of a housing association property that is sold and the £1 billion fund for remedial work on brownfield land. If the Government are clear that that is what their policies will do, will they please show us the figures? If they are clear that that is what will happen, they must have the figures to have made their promises on. Or are they simply telling us they believe that that is how things will work out, but without any clear evidence to support that?
That is a matter of great concern. It was a concern to the Select Committee, which, having heard the evidence, correctly said:
“We have not seen evidence that the Government has fully costed the proposals and we call on it to do so as a matter of urgency.”
That was agreed at the beginning of February; we are now three months further on, but we still have no figures. The Public Accounts Committee made exactly the same point in its report, and it seemed a very reasonable point, regardless of whether we think the PAC should look at policy before or after it is implemented. The Committee said:
“The Department should publish a full impact assessment containing analysis in line with the guidance on policy appraisal in HM Treasury’s Green Book, to accompany the proposed secondary legislation”.
When will we see the figures? We have not got them for the Bill. Will we have them before any secondary legislation comes before the House for approval? Will the Minister make a firm promise that that will be the case? He referred to further secondary legislation on higher-value council homes. Will these proposals be thoroughly and properly costed before we reach that point? This is a serious matter—the right of the House to have information before it passes legislation.
Let me come now to starter homes. Again, it has been a little hard to understand how the Government’s policy will work. When the Minister came before the Communities and Local Government Committee, he said that local authorities meeting developers to discuss section 106 agreements would have discretion over what mix of affordable housing would be built. Can we have some clarity on that? Will starter homes take absolute priority, with local authorities having no choice but to build them to hit the Government’s 200,000 target, and if there is a bit of money left, perhaps putting one or two affordable homes for rent on the site? Or will local authorities, as they are currently allowed to, come to their own view about section 106 agreements and about the right mix of affordable homes on the site, whether that means starter homes—now defined as affordable homes—homes to rent or shared ownership? What is actually going to be the case?
What about areas of land in my constituency where there is no requirement for any affordable housing at present because the sites are not considered to be viable, yet viability is an important test under the national planning policy framework guidelines that local authorities have to work to? Will the Government insist that starter homes are built on a site where it is not currently considered viable to have any section 106 provision for affordable housing? How is that going to work—or will there be local discretion in that regard as well? We need some clarity.
We also need clarity about the replacement of the higher-value council homes as to precisely what sort of homes they will be replaced with, how that will be defined, and what the negotiation process between Government and local authorities will look like. Will it be a case of starter homes at all costs, or are we going to be in a position where affordable homes to rent can be part of the replacement situation, going back to “like-for-like”?
The Chartered Institute of Housing produced evidence to the Select Committee in which it estimated that during the course of this Parliament there would be 300,000 fewer social homes to rent than there were at the beginning. The Minister likes to take credit for the previous coalition Government having built more council homes than were built under the Labour Government, but let us get to the point: during this Parliament, will there be 300,000 fewer social homes to rent, not just council homes but housing association properties, as the Chartered Institute of Housing has estimated? The Government disagree with that figure, but will they say what they expect their policies to produce by the end of this Parliament?