Social Housing and Building Safety

Siobhain McDonagh Excerpts

Thursday 9th June 2022 Commons Chamber

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

I join all Members in this House in sending our condolences to the people from Grenfell Tower in the Gallery and to all the family and friends of those they have lost.

My day today began well: I got a phone call from Merton Council housing department to tell me that Miss S’s case would go into band A on the housing register and she would be the highest medical priority. Miss S lives in a one-bedroom flat that is rodent infested and covered in condensation, which she shares with her three children, two of whom have autism. They are now in band A—great! Only it is not so great, because I calculate that she will be 37th in the three-bedroom category in band A on Merton’s housing register, and I know the other 36 because I fought to get them there. Last year, Merton Council had 32 three-bedroom properties to offer to the entire housing register. At that rate, I calculate that Miss S probably has another six or seven years before she will ever successfully bid for a property. That is the reality we face.

The word “crisis” is overused in this Chamber, but when it comes to housing it could not possibly be more justified. Every Friday at my weekly advice surgery, I meet family after family on Merton’s 10,000-strong housing waiting list to whom I struggle to offer any hope that they will ever get a place to call home. I reflect on how I deal with their cases: do I tell them the truth and explain the system, or do I try to leave them with some hope to make them feel better? I would welcome anybody’s advice, because I have become the citizens advice or housing advice authority giving the news to people that they do not want to hear, but I believe it is my obligation to give that advice in the best way I can.

When I bring those cases to Parliament, I cannot help but question the priority the Government give this issue, given that the average tenure for a Housing Minister over the last 12 years has been slightly less than a year. Maybe I am dreaming, but finally it sounds as though it is time for some housing policy—who knew Sue Gray’s partygate report would have such far-reaching consequences? —but, as ever, the proof is in the pudding, and the pudding costs money.

Let us start on a positive note. I am delighted finally to see progress for social housing tenants living in properties in disrepair and battling endless hurdles in their fight for a safe, habitable place to live. This would simply not have happened without the determination of my constituent—I am proud to say that—Kwajo Tweneboa, who is here today, and Daniel Hewitt of ITV News in shining a light on the appalling conditions in which Kwajo, his neighbours and thousands of social housing tenants are living. Disrepair is the biggest issue in my inbox, thanks in part to a complaints process so rigorous and so tilted in favour of the landlord that my office now holds a weekly meeting with Clarion Housing Association to go through cases one by one.

I say to the Minister that, if I had rain pouring through my roof, I really do not think my patience would withstand a call centre with nobody responsible for my complaint, a two-stage written process, an eight-week wait to begin a complaint to the ombudsman, who looks only at whether correct processes have been followed, and a regulator who signposts me back to the ombudsman. So a truly strengthened regulator would be unreservedly welcome, finally giving a voice to some of the most vulnerable people in our communities. But we must be under no illusion: this would not build a single new home. There were just 5,955 new social rented homes last year—one of the lowest numbers on record—and at that rate, it would take 192 years to house everyone on the waiting list.

As I have always said, it is people’s real-life examples that bring this stuff home, and I would like to give two more examples. The first is Mr and Mrs B and their three children. Their eldest son has muscular dystrophy. He cannot walk or use a bathroom independently, but he lives in a house in which his bathroom and toilet are downstairs and his bedroom is upstairs. Each day, his tiny, diminutive mum puts him on her back and climbs the stairs to his bedroom. At night, she carries him downstairs on her back for him to be able to use the bathroom. She is in band A—the ubiquitous band A —on the register. Because I was so distressed at explaining the situation to her, I visited her home with the head of the Merton housing department, Mr Brunton, and together we tried to explain why she could not be helped. That is not something I would want to do too often. She is at the top of the list, but she will go no further.

There is Miss T, who lives with her three children in a combined living room-kitchen while her former partner, who is the tenant of the flat and has multiple sclerosis, is in the bedroom. Of those three children, one is severely autistic. Miss T herself has a neurological brain disorder. She is in band A on the housing register, but there are 32 families in front of her. Her wait has to be put into perspective: last year, Merton had 32 three-bedroom properties to offer to all the bands. Even though Miss T is at the top of the list, it will take until her children are teenagers before she is likely to be successful, so she and her three children will be sleeping in the living room until then.

How does the Minister intend to increase supply? One ambition appears to be reopening up current supply, with the Secretary of State vowing this morning to end the “scourge” of unoccupied second homes. If only rhetoric matched reality I would be dancing on the rooftops. Earlier this week, the Chancellor confirmed that he is handing out multiple energy bill discounts to those who own multiple homes. Aside from costing hundreds of millions to the taxpayer, does the Minister really think that this will discourage second home ownership?

Another suggestion is to give housing association tenants the right to buy, a proposal that categorically requires Government funding. However, the findings of the Government’s trial run in the midlands were indisputable: the number of replacement homes did not match the number of sales housing associations said they would likely need to be able to put their own resources into a part-funded replacement scheme, and the replacement homes were smaller and more expensive. Don’t get me wrong: I am a fan of home ownership. I am one of few on the Opposition Benches who regularly speak in favour of the right to buy. I know how liberating it is for people to own their home, and I know how it gives them independence and choice. As the daughter of a woman whose proudest achievement was not getting one daughter into the House of Commons or her younger daughter into the House of Lords, but owning her own home, I will never be a person who objects to home ownership. However, what we really need is the absolute copper-bottomed guarantee that there will be like-for-like replacement of every single property that is sold.

Finally, the Secretary of State heralded an ambition to return to a Macmillan era of housing—an era when 300,000 new homes were built a year. That is the very same target that the very same Secretary of State scrapped last month. Is it not about time that we stopped playing the hokey-cokey with the most fundamental human right—a secure place to live and bring up your children?

--- Later in debate ---

[Sir Robert Neill]

The hon. Gentleman is right, and I hope Ministers will do that. Again, the Secretary of State—who I am delighted to see back in his place—and his colleagues have shown real energy on this, but we need to keep the pressure on; that is key.

I am grateful to Lord Greenhalgh, who has been in correspondence with me a good deal on these matters. He pointed out that back in January the Financial Conduct Authority and the Competition and Markets Authority had been called upon

“to conduct a review of the buildings insurance market for medium and high-rise blocks of flats to get to the bottom”

of this concern. That is good of course, and the wider issue was recognised by Lord Greenhalgh, who wrote:

“Where the risk has demonstrably decreased, so should the premium.”

But that is not happening at the moment. While we want that review to be thorough, it must also be implemented in a timely fashion. I was advised by Lord Greenhalgh that the Department expects the FCA and the CMA

“to provide advice and recommendations within the next six months.”

He wrote that in a letter sent last month. I hope we can keep the pressure on so that it happens well within six months, rather than at the far end of that period. The risk, of course, is that some of the stakeholders in the industry will not have the greatest of incentives to move swiftly on this matter, so the duty therefore falls on the Government to do that. I know the Secretary of State has been more than willing to flex muscle with the sector when necessary to get movement, and I hope he will do so on this. I also hope that the Minister will confirm in winding up the debate that once the advice and recommendations from the CMA and FCA have been received, there will be prompt and urgent action to implement them in whatever form is necessary to address this genuine problem.

There is a related matter on the operation of EWS1 forms. In my constituency there is a firm called the Frankham Group. Steve Frankham MBE, a constituent of mine, has done a great deal of work in this field and has been recognised for his service in the industry and charitable works around these matters. His firm is anxious to do the right thing but it, and many others in the sector who have contacted me, are concerned about the real difficulty they are finding, as responsible contractors employed by the registered social landlord sector or the private sector to carry out the EWS1 surveys, in getting both accreditation and professional indemnity insurance.

At the beginning of the year, the Royal Institution of Chartered Surveyors set up accreditation for technicians and surveyors who will be carrying out the scheme. Despite firms such as Frankham having participated in meetings and sent in assessment forms as required, nothing as yet has been forthcoming from RICS to set the scheme properly in place. At the same time, insurance premiums have increased exponentially, which is, in some cases, making large contracts less viable than would otherwise be the case.

The last thing we want is for rogue operators to come into the market and undercut the responsible contractors who carry out this essential work, so we need both a realistic and fair insurance market operating in the sphere and, in parallel, a proper accreditation scheme in place. Otherwise, the temptation for the cowboys to undercut responsible people will be the greater. We need urgent action on that. I will happily share with the Minister and the Secretary of State the correspondence that I have had from my constituents, with the technical detail that they set out on what they have been doing to try to get the scheme working. I had a look at an EWS1 form myself, and it is quite complicated. We could not expect a group of residents to deal with it—they need professional advice to do it properly—but we must ensure that the professionals are accredited and insured properly to be able to undertake the work. I hope that we can flag that up, because I am not sure that enough attention has been given to it.

The other matter that relates to specific building safety issues is the position of small landlords, who are sometimes referred to as portfolio landlords. I appreciate that there has been movement to improve the number of landlords included in the Government’s support schemes for remediation, but the current definition for those who can come into the scheme is those who have their own property but own only one other property, which they do not live in. Constituents have contacted me about that.

Let us say that a retired couple have bought four small flats, as many people may have done, all in their joint names. In retrospect, I suppose they could have put them in their sole names and had two each, but, perfectly straightforwardly, they chose to put them in joint names. Had they bought two larger flats, they might well have fallen within the scheme. As it is, because they happened to invest in that type of property, they fall outside the scheme’s scope. I wonder whether the Secretary of State could think again about the definition of a portfolio landlord. Most of us might think they are someone with 20, 30 or 40 flats for whom that is their principal business and think, “Well, they will have to take the commercial risk on that.” They are not the large-scale landlord chains that we see, either. They are generally small investors, often moving into semi-retirement, who are not in anything like the same position to bear the costs. The principle behind the scheme is admirable, and it would be a shame if the ship was spoiled for a ha’porth of tar, meaning that entirely straightforward people who were caught out are left bearing a cost when someone with a slightly different configuration of their retirement investment would be able to benefit.

Finally, I turn to a broad point that echoes one made by the hon. Member for Mitcham and Morden (Siobhain McDonagh). As well as dealing with the building safety situation, we need to look at the maintenance of much of our social housing estate. Constituents have been in touch with me repeatedly about the difficulty they have in particular with some of the large RSLs. They have also been in touch with the Secretary of State’s Department in relation to the largest RSL in my area, Clarion. I deal with Clarion, and I see that the shadow Minister, the hon. Member for Greenwich and Woolwich (Matthew Pennycook), has come across it as well. We have also recently seen it in the press. It is one of the largest social landlords in the country, but, I am sorry to say that, despite sometimes having had constructive dealings with it, many of my constituents who are its tenants do not find it constructive to deal with. There is a continual issue of poor maintenance, with contractors who simply do not do the job properly and have to revisit time and again. In one estate in Mottingham in my constituency, we have had problems getting things done, which have been running for about four years—they are only partially done, then revisited and more is done. Clarion is quick to send removal notices for pot plants and garden sheds that may have been put in place without permission. It is sharp in doing that. It is also quite quick to serve statutory notices for the costs of significant capital works such as renewing roofs and other matters, but I am sorry to say that it is remarkably slow to sort out basic repairs, never mind some of the more serious issues such as when damp gets in.

That makes me wonder whether some of our RSLs have not in fact become too big to be accountable. The stock in Bromley was originally transferred by Bromley Council to an RSL called Broomleigh. Actually, it was one of the first RSLs, and that was one of the first stock transfers to take place. The whole point of Broomleigh was that it was locally based, with local directors and local offices. What we have seen over a period of time is a series of RSL mergers, so they have become much larger.

[Siobhain McDonagh]

Does the hon. Member agree that the drive for merger is directly due to housing associations’ funding, their lack of capital funding, their greater reliance on the equity in their own stock and their ability to borrow? We have the housing associations that our legislation and funding deserve.