Social Housing and Building Safety

Debate between Siobhain McDonagh and Robert Neill

Thursday 9th June 2022 Commons Chamber

[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.

Planning Blight

Debate between Siobhain McDonagh and Robert Neill

Monday 24th January 2011 Commons Chamber

[The Parliamentary Under-Secretary of State for Communities and Local Government (Robert Neill)]

May I congratulate the hon. Member for Mitcham and Morden (Siobhain McDonagh) on securing this debate? I am grateful for the chance to set out the Government’s position on “Planning blight and large property owners”, which is the title on the Order Paper.

First, before going into more detail, it is as well to set out the background and to distinguish between planning blight, a term of art describing a form of statutory blight under part 6, chapter 2 of the Town and Country Planning Act 1990, and the kind of blight that occurs where buildings and sites are left vacant and unmaintained, adversely affecting the environmental quality of an area. It is the latter issue with which we are largely concerned this evening.

The hon. Lady mentioned planning permissions and it is worth bearing in mind that such permissions are normally granted for a period of three years from the date of decision, although this can be increased or decreased at the discretion of local authorities. In determining whether to permit a longer period, local authorities may wish to consider the economic circumstances and the ability of a developer to deliver the development. The Government consider that three years is a fair period to give the developer time to secure the necessary finance and to make arrangements to get on site and proceed with the development. It strikes the right balance between the commercial pressures that developers face and the need of the community to ensure that the development that they are promised materialises.

If developers are unable to proceed within the time period specified by the local planning authority, in certain circumstances they are able to apply for a replacement planning permission. That procedure was introduced in 2009 and its scope was expanded in October last year. A replacement planning permission is similar to a new planning permission but has less arduous consultation and information requirements, because principle and design have already been agreed. Local authorities have a lot of discretion over that procedure and how it applies in individual cases.

If a developer is unable to proceed with work on site, they face the prospect of the cost and uncertainty of having to apply for a new or replacement planning permission. That in itself is a major incentive for developers to get on site and start work within the allotted period. Sometimes, however, even with the best of intentions, things can go wrong for developers. Economic circumstances change, developers get into financial difficulties and projects can get stalled. It is important that the Government do what we can to remove bureaucratic barriers and support developers in delivering the housing and commercial developments that this country desperately needs.

We recognise, however, that there can also be circumstances in which landowners are not interested in progressing developments at all. They might simply try to make a profit on a site by waiting for it to increase in value, and might have no interest at all in what the site looks like in the intervening period. I think that that is the root of the hon. Lady’s concern.

Where sites fall into disrepair, there can be a detrimental effect on local communities. As the hon. Lady rightly says, unused buildings can become a haven for drug users and other undesirable elements. The risk of falling masonry can pose a danger to passers-by, and general degradation of the environment can result. Where a building is dangerous and a threat to the local area, it is worth bearing in mind the provision for local authorities to serve a notice on the building owner to carry out works to remove that danger or demolish the building, under sections 77 and 78 of the Building Act 1984. I do not know whether that is appropriate in the case to which the hon. Lady refers, but the power is available generally to local authorities.

The Government take such degradation of buildings very seriously, and our first priority is to prevent such situations from happening in the first place. The Government have worked hard to prevent developers from building up banks of land, by making sure that they are required to start work on site within a timely period from the granting of planning permission. Where the state of the site has led to the quality of the environment being adversely affected, however, local authorities have a number of remedies available to them. The hon. Lady referred to the provisions under section 215 of the Town and Country Planning Act 1990, under which a local authority can, in certain circumstances, take steps to make good the loss of public amenity. If it appears that the amenity or part of the amenity of an area is being adversely affected by the condition of neighbouring land and buildings, the authority can serve a notice on the owner requiring that the situation be remedied. Such notices set out the steps that need to be taken, and the time within which they must be carried out.

The use of section 215 notices by local planning authorities is discretionary. It is up to the local planning authority to decide whether a notice under those provisions would be appropriate. The hon. Lady says correctly that at least one extant notice is still in operation in relation to the site to which she refers. For that reason, the House will understand why it is not appropriate for me to comment further on the case.

Other remedies are also available to local authorities when development has already begun and has stalled for one reason or another. For example, a local planning authority can—with the agreement of the Secretary of State—issue a completion notice, which will terminate a planning permission at the end of a specified period if the development is not completed. If it is not completed within the specified time limit, there will be no planning permission for the remainder of the development. Local authorities can take enforcement action once the completion notice comes into effect if the development is resumed at a later date.

A key driver of the localism agenda is giving communities a stake in the future of their areas, and enabling them to achieve real change. We are giving communities the ability and the incentive to plan positively for their futures, and to safeguard the things that matter to them. The measures announced in our Localism Bill should ensure that the desires and intentions that people express in regard to their local environment through the planning system result in real change on the ground, and that developments are delivered in a timely manner to the benefit of all concerned.

I know the hon. Lady will understand that we must strike a balance between the need to support developers in the challenging economic circumstances that we have inherited and the need to ensure that local communities have sufficient power and resources to protect themselves from the loss of amenity that comes with boarded-up and vacant sites. As I have said, discretionary powers exist to help local authorities to achieve that, and ultimately it is for the community to work with them to ensure that the problems associated with vacant buildings are dealt with in a fair, proportionate and responsible way.

[Siobhain McDonagh]

The Minister’s use of the word “proportionate” suggests that we are discussing parties with equal power, but I hope that I have conveyed our feeling of powerlessness in the face of a large and wealthy organisation that is willing to go to law and has access to expert legal advice. Residents do not have that capacity, and local authorities are often frightened to engage with those who are very litigious.

[Robert Neill]

The hon. Lady will appreciate that planning policy relates essentially to land use. We cannot have a system that is determined by the economic capacity of the parties as such. What is important is that the local authority, in particular, has powers. While I realise that the scope of individual community groups may be limited, I understand that the London borough of Merton has taken powers in serving section 215 notices in relation to this case, so it has a remedy.

We propose to give local communities much more control over developments of this kind in the first place through our changes to the planning system and, in particular, our concept of neighbourhood planning. I suspect that had neighbourhood plans been established in Colliers Wood, a different view of such developments might well have been taken. The fact is, however, that this is an existing development with an extant permission, and the local authority must deal with the situation with which it is currently confronted.

[Siobhain McDonagh]

The point is, surely, that if a company has funds that enable it to invest in property and to do nothing with the planning applications that it receives other than sit and wait for the property price to rise, the planning process does not help. What local authorities need are greater powers of enforcement, and greater powers to require developers to be good neighbours.

[Robert Neill]

A number of steps have been taken in that regard. Until 2004, developers could extend the life of planning permissions by varying time limit conditions attached to existing planning consents. Because of concerns about land banking, the last Government amended section 73 of the Town and Country Planning Act 1990 in the Planning and Compulsory Purchase Act 2004 to prevent it from being used to vary such conditions. I have no issue with that. Those sort of steps were taken, and we also have to bear in mind that concern was expressed that action should be proportionate.

In addition, steps have been taken to examine the default length of planning permissions. As I say, the default length is three years, but local authorities have discretion under section 91 of the 1990 Act to grant permission for another period, having regard to the provisions of the development plan and other material considerations. The Department has previously issued letters to the chief planning officers reminding them of their discretion in this regard. Precisely because this issue is discretionary for the local authority it would be wrong for them or certainly for a Minister to try to fetter that. We can simply put in place the tools for them to use, if appropriate, and remind them if they are available. I do not know what consideration Merton council gave to those matters, but it is clear that it did take steps in relation to the section 215 notices in this case.

I understand the hon. Lady’s frustration. It may well be that when the Government consult in due course on the changes that we are making to the planning framework with our national planning priorities framework, both her local council and others who are concerned about this matter will wish to make representations as to what further can be done. One has to bear in mind that because proprietary interests are affected, whatever the rights and wrongs of the issue, any action has to be taken in a manner capable of being sustained, because it has to be justiciable. Therefore, the authority has to act in a quasi-judicial fashion and the Department has to make sure that any advice it gives in any legal framework that it sets in place is consistent with our legal obligation to fairness on both sides.

It is always difficult in a debate such as this to deal with individual cases, particularly while there are existing proceedings. These have the potential to result in court proceedings, because a fine can be imposed if they are not complied with. Although it is not possible to be more specific about particular cases, I can assure the hon. Lady that the Government are alert to these issues and are, of course, always looking to see whether there are sensible means of keeping these rules up to date. I hope that the pressure being applied and the good work that is clearly being done by people in Colliers Wood and the neighbourhood action group, together with their councillors, will have an effect on the owners of the building. Equally, I am sure that she will understand why it is not appropriate for me to say more than I already have about the particular circumstances of a case where, in effect, enforcement-type proceedings— section 215 proceedings—are ongoing.

Question put and agreed to.