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.