Enterprise and Regulatory Reform Bill

John Bercow Excerpts

Tuesday 16th October 2012 Commons Chamber

The House proceeded to a Division.

[Mr Speaker]

I ask the Serjeant at Arms to investigate the delay in the Aye Lobby.

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[Jo Swinson]

I beg to move, That the clause be read a Second time.

[Mr Speaker]

With this it will be convenient to discuss Government amendment 33.

[Jo Swinson]

New clause 15 amends the definition of “estate agency work”, which determines the application of the Estate Agents Act 1979. This fulfils our commitment to introduce a measure on this issue following our recent targeted consultation, which was developed as part of the disruptive business models/challenger businesses theme of the red tape challenge.

New clause 15 extends a current exemption to that definition of estate agency work. Intermediaries, such as internet portals for private sales, will be out of the scope of the Estate Agents Act if they merely enable private sellers to advertise their properties and provide a means for sellers and buyers to contact and communicate with one another. Such intermediary businesses will therefore not be obliged to comply with requirements that are relevant to full service estate agency businesses, such as the disclosure of any self-interest in a property transaction and membership of a redress scheme for residential estate agents. These private sales businesses are not actively involved in property transactions, but offer a lower-cost alternative of enabling individuals to market their own property and buy and sell privately.

Those intermediary businesses will be able to provide a means for the seller and prospective buyer to contact one another, for example online; to provide a branded for sale board to the seller to assist this process; and to pass on to a prospective buyer solely the information provided by the seller in their advertisement, by whatever channel of communication. If, however, the intermediary offers any personal advice to a seller or a buyer, or other ancillary services, such as preparing property particulars or photographs or an energy performance certificate, the intermediary will be in the scope of the Estate Agents Act and bound by its obligations. The Estate Agents Act will therefore continue to apply to businesses that are involved in or have scope to influence property transactions.

The Government have found uncertainty and a range of views among stakeholders as to the application of the Estate Agents Act to intermediary businesses, particularly online. This is unhelpful to consumers who might wish to use an intermediary, and unhelpful to businesses, whether intermediaries or more traditional estate agents, or those interested in entering the market. Stakeholders are also concerned that consumers should be protected where they rely on a service provider in relation to a transaction as valuable and important as a house sale or purchase. Clearly, for most people it is the highest value and most important purchase they will make. The Estate Agents Act will continue to apply to businesses providing personal advice about a potential sale or other ancillary services.

For those reasons, this is a limited deregulation. It addresses the perceived uncertainty as to the scope of the Estate Agents Act and it brings benefits to consumers and to the industry, but, crucially, it does not unduly reduce consumer protection in relation to services that involve the service provider in the property transaction.

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[Matthew Hancock]

I beg to move, That the clause be read a Second time.

[Mr Speaker]

With this it will be convenient to discuss the following:

Government new clause 10—Listed buildings in England: certificates of lawfulness.

Government new schedule 1—‘Local listed Building consent orders: procedure.

Government amendments 38 to 40, 42, 43, and 48 to 50.

[Matthew Hancock]

I shall speak to new clause 9 and new schedule 1 in the first instance. Those provisions are intended to improve the effectiveness of the listed building consent regime and they follow the Penfold review of non-planning consents. They introduce a new system of national and local class consents, and received broad support during consultation. The new system is designed to reduce the number of listed building consent applications for works that have neither a harmful nor significant impact on a building’s special interest. It will be possible to grant consent automatically for certain categories of work or buildings—where the extent of the special interest is well understood—without the need to make an additional application. Thus, the new provisions will protect listed buildings. I, like many others in this House, have a special adoration for the heritage of our listed buildings in this country, not least the one in which we are standing. Our approach will also improve the operation of the regime. [Interruption.] I suppose that I should declare an interest, although it is not the one that the hon. Member for Hartlepool (Mr Wright) thinks; I work in a wonderful listed building and I want to ensure that it is protected.

The changes will also reduce burdens on applicants and free up local planning authority resources to focus on the listed building consent applications that really matter. The Secretary of State will be required to consult English Heritage before making a national order and will be able to apply conditions to consent granted by an order, as with listed building consent at the moment. Both the Secretary of State and any local planning authority will be able to direct that an order does not apply to a specified building, or to buildings of a specified type or in a specified area. The Secretary of State will have the power, at any time, to revoke a listed building consent order, having first served notice on the local planning authority and given it an opportunity to make representations.

The Secretary of State or the local planning authority must have special regard to the desirability of preserving the listed buildings to which the order applies, as well as their setting and any features of special architectural or historic merit that might be affected. We envisage that the processes leading to a class consent will involve the same level of public notice, engagement and consultation as applies to listed building consent currently. These provisions will reduce regulatory burdens without diminishing protection for important heritage sites and buildings. New clause 9 also restates, with minor technical changes in some of the consequential Government amendments, provisions on heritage partnership agreements which were already in the Bill.

New clause 10 introduces a new certificate of lawfulness of proposed works to listed buildings, which will provide certainty to owners and developers of listed buildings—this proposal also received support during consultation. Works to a listed building that do not affect its character as a building of special architectural or historic interest do not require listed building consent. However, interpretations of whether or not consent is needed can vary, and local planning authorities are often reluctant to give a view because it is ultimately a matter for the courts to determine. That means that those seeking to make changes to listed buildings are sometimes required to submit a formal application for listed building consent in order to gain certainty as to whether or not proposed works would affect the special interest. We hope that certificates of lawfulness of proposed works will provide a simple, straightforward mechanism for owners and developers of listed buildings to gain the certainty they require, while reducing the number of unnecessary consent applications. I therefore trust, not least given the widespread support we had in the consultation, that hon. Members will support these new provisions, and I commend them to the House.

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[Several hon. Members]

rose—

[Mr Speaker]

Order. I remind the House that there is no protected time for a ministerial response. I would like the Minister to be able to respond to a number of points raised by hon. Members, but we are working to the Government’s timetable, approved by the House. Therefore, if the Minister is to reply, a certain self-discipline will hereafter be required.

[John Mann (Bassetlaw) (Lab)]

I am Mr Self-Discipline, but someone needs to break this ridiculous, cosy consensus over the tax grab that is being proposed, and I suggest that the House should get into the real world. I live in a listed building and deal with local authorities, and week by week, across the country, pre-planning advice from those local authorities is being charged for.

At the moment, if I want to splice one little piece of wood in one window in my house, I require planning permission costing £400. The Government’s new clause means that, if I want to splice one little bit of rotten wood, I will be charged £400 for pre-planning advice by my authority. That is happening with authorities all over the country. It is total nonsense.

Authorities are finding new ways of making money and new taxes. It might not be the Government’s intention, but that is what happening. Authorities are finding new ways that they never bothered about before to say, “You’d better seek some advice before doing things.” My neighbour has been told that a slight change in the colour of his paint requires planning consent. My house is 400 years old and I have a brick wall that is 30-years-old. I was told this week that if I want to add a brick to it, I will need planning consent. Where is the heritage in a 30-year-old 1970s brick wall in a 400-year-old house? There is none.

This is a tax grab by local authorities. Added to the affordable housing tax grab and the community infrastructure levy tax grab, it means that those who live in listed properties will not be able to afford to do anything with them. It is about time someone spoke up against the additional taxes that this evil coalition is bringing in.

[Paul Maynard (Blackpool North and Cleveleys) (Con)]

rose—

[Mr Speaker]

Order. I fear I must now call the Minister—I am sorry to disappoint the hon. Gentleman.

[Matthew Hancock]

In the very short time available, I shall first deal with the previous two speeches. I agree with every word spoken by my hon. Friend the Member for Weston-super-Mare (John Penrose) and am grateful for his intervention, but I disagree with almost everything that the hon. Member for Bassetlaw (John Mann) said, not least because the Government’s measures will make his situation easier, and because changes other than where there is a special interest will no longer require consent in the same way. That will make his life easier.