Housing and Planning Bill

John Bercow Excerpts

Tuesday 12th January 2016 Commons Chamber

[Dr Roberta Blackman-Woods (City of Durham) (Lab)]

I beg to move amendment 131, page 29, line 14, leave out clause 67.

This amendment, together with other amendments leaving out all the clauses in this chapter, would prevent vacant high value housing from being compulsory sold.

[Mr Speaker]

With this it will be convenient to discuss the following:

Amendment 92, page 29, line 21, at end insert

‘that shall include—

(i) the repayment of capital debt on any high value properties sold

(ii) the cost of replacing any high value properties sold on a one for one basis within the same local authority.’

The amendment would ensure the replacement of property locally and it would also ensure appropriate deductions are included in legislation.

Amendment 51, page 29, line 21, at end insert—

‘(2A) The total payment required from all affected local authorities in any financial year shall not exceed the total grant paid in that year to private registered providers in respect of right to buy discounts.’

The amendment would avoid powers being used a general means of taxing councils and tenants for the benefit of the Exchequer.

Amendment 93, page 29, line 32, leave out from ‘regulations’ to ‘for’ and insert

‘require a local housing authority in England to define “high value” in its area’.

The amendment would enable local housing authorities to define high value property in line with local housing market conditions.

Amendment 94, page 29, line 33, at end insert

‘that will not apply to more than 10% of the total authority properties in the local housing authority area’.

The amendment would safeguard a proportion of local authority housing stock in high value areas.

Amendment 53, page 29, line 35, at end insert—

‘(10) Regulations under subsection (8) may not define a dwelling as “high value” if its sale value is less than the cost of rebuilding it and providing a replacement dwelling with the same number of bedrooms in the same local authority area.’

The amendment would ensure that the cost of replacement dwellings is not specified as one of the costs and deductions to be made as required by sub-section 67(2) and would allow for one-for-one local replacement.

Amendment 132, page 29, line 36, leave out clause 68.

See explanatory statement for amendment 131.

Amendment 55, in clause 68, page 30, line 11, at end insert—

‘(5) Regulations under subsection (2)(b) shall specify that housing shall be excluded where it forms part of a housing regeneration scheme or consists of specialist housing or recently improved housing.

(6) In this section—

“housing regeneration scheme” means a programme of regeneration or development of an area which includes the provision or improvement of housing and for which finance may be available under section 126 of the Housing Grants, Construction and Regeneration Act 1996;

“specialist housing” means any housing designed for or intended for occupation by older persons or persons needing care or support or persons with mental health problems or learning disabilities, or which has features which are designed to make it suitable for occupation by a physically disabled person, or which it is the practice of the landlord to let for occupation by persons with special needs;

“recently improved housing” means housing where there has been substantial works of repair or improvement carried out on the relevant dwelling or group of dwellings within the previous two years.’

The amendment would exclude certain types of property from inclusion in the high value homes determination.

Amendment 133, page 30, line 12, leave out clause 69.

See explanatory statement for amendment 131.

Amendment 134, page 30, line 28, leave out clause 70.

See explanatory statement for amendment 131.

Amendment 135, page 31, line 2, leave out clause 71.

See explanatory statement for amendment 131.

Amendment 136, page 31, line 12, leave out clause 72.

See explanatory statement for amendment 131.

Government amendment 112.

Amendment 137, page 31, line 20, leave out clause 73.

See explanatory statement for amendment 131.

Amendment 138, page 31, line 28, leave out clause 74.

See explanatory statement for amendment 131.

Amendment 139, page 32, line 2, leave out clause 75.

See explanatory statement for amendment 131.

Amendment 140, page 32, line 16, leave out clause 76.

See explanatory statement for amendment 131.

Amendment 141, page 32, line 28, leave out clause 77.

See explanatory statement for amendment 131.

Government amendments 130, 9 and 11.

Government new clause 59—Reverting to original rent levels.

Government new clause 60—Private providers: policies for high income social tenants.

Government new clause 61—HMRC information for private registered providers.

New clause 39—Living Rent Commission—

‘(1) The Secretary of State shall appoint a body, to be known as “the Living Rent Commission”, to discharge the functions conferred under this section.

(2) The Secretary of State shall refer to the Living Rent Commission to determine a definition of “affordability”, based on which it shall make recommendations on rent levels for all housing provided by local authorities and private registered providers in England, at a level of locality considered appropriate and practicable by the Commission.

(3) Before arriving at the recommendations to be included in the report produced under subsection (4), the Living Rent Commission shall consult—

(a) such organisations representative of providers of affordable housing as they think fit;

(b) such organisations representative of affordable housing occupants as they think fit; and

(c) if they think fit, any other body or person.

(4) The Living Rent Commission shall, after considering the matter referred to it under subsection (2), make a report to the Prime Minister and the Secretary of State which shall contain the Commission’s recommendations regarding affordable rents.

(5) The Secretary of State may by regulations implement the Commission’s recommendations on affordable rents for private registered providers and local authority provided housing.

(6) If, following the report of the Living Rent Commission under subsection (4) above, the Secretary of State decides—

(a) not to make any regulations implementing the Commission’s recommendation, or

(b) to make regulations which do not relate to a recommendation of the Commission,

the Secretary of State shall lay a report before each House of Parliament containing a statement of the reasons for the decision.

(7) The definitions determined and recommendations made under subsection (2) shall be reviewed annually by the Living Rent Commission.’

This new clause would set up a Living Rent Commission to define and determine affordable rents.

Amendment 144, page 33, line 12, leave out clause 79.

This amendment, together with amendments 145 to 153, would leave out Chapter 4 of Part 4.

Government amendment 113.

Amendment 95, in clause 79, page 33, line 15, at end insert—

‘(1A) Any regulations made by the Secretary of State under this section will not apply—

(a) to people aged over 65;

(b) to people who have a registered disability;

(c) to people on zero hours contracts;

(d) to people with seasonal contracts of employment;

(e) to households where one or more members is in receipt of ESA;

(f) where a household member is in receipt of care

(g) where a member of the household is a carer for another household member;

(h) to those living in supported housing; and

(i) to households in receipt of housing benefit.’

The amendment would establish exemptions from the application of high income rents system.

Amendment 57, page 33, line 19, at end insert—

‘(d) to be increased on a tapered system relating to income and level of rent charged.’

The amendment would introduce a taper scheme into the application of high income rents to prevent huge jumps in the rent level being charged with only modest increases in income.

Amendment 58, page 33, line 19, at end insert—

‘(d) to take into account the need to promote socially cohesive and mixed communities.’

The amendment would enable local authorities and social housing providers to take into account the need to promote and encourage a degree of diversity in their communities.

Amendment 59, page 33, line 19, at end insert—

‘(d) take into account local affordability.’

The amendment would establish that rent levels should reflect local affordability.

Amendment 60, page 33, line 22, at end insert—

‘(3A) The Secretary of State must make regulations to provide for the external valuation of high income rents.’

The amendment would establish that the application of a higher income rent should be subject to external valuation.

Amendment 96, page 33, line 22, at end insert—

‘(3A) Any regulations made by the Secretary of State under this section must include provisions for—

(a) a notice period of one year before the new rent becomes payable; and

(b) transitional protection and arrangements as the tenant moves to the higher rent.’

The amendment would make it appropriate for tenants deemed to have a high income to be given time and a degree of transitional protection to enable them to relocate to another property or increase their income further

Government amendment 114.

Amendment 61, page 33, line 27, at end insert—

‘(6) All provisions in this section shall only apply—

(a) for new tenancies commenced after 30 April 2017; and

(b) where the tenant has been provided with a new tenancy agreement.’

The amendment would establish that the high income rent regime would only apply to new tenants from April 2017 and where they have been given a new tenancy agreement.

Amendment 145, page 33, line 29, leave out clause 80.

See statement for amendment 144.

Amendment 97, in clause 80, page 33, line 30, at beginning insert ‘subject to subsection (1A)’.

See amendment 98.

Amendment 98, page 33, line 32, at end insert—

‘(1A) High income” must be set with reference to average incomes in the area with high incomes being defined by income falling in the top quartile of incomes in the area.’

The amendment would establish that high incomes will reflect the top quartile of income levels.

Amendment 62, page 33, line 32, at end insert—

‘(1A) For the purposes of this Chapter high income cannot be set at a level lower than median income.’

The amendment would establish that the high income level cannot be set a level lower than average/median salaries.

Government amendment 115.

Amendment 146, page 34, line 6, leave out clause 81.

See statement for amendment 144.

Government amendments 116 to 120.

Amendment 147, page 34, line 19, leave out clause 82.

See statement for amendment 144.

Government amendments 121 to 123.

Amendment 63, in clause 82, page 34, line 27, leave out subsection (c).

The amendment would establish that the creation of a public body to transfer information from the HMRC to a local authority or registered provider of social housing is not necessary.

Government amendments 124 to 126.

Amendment 148, page 35, line 15, leave out clause 83.

See statement for amendment 144.

Government amendments 127 and 128.

Amendment 149, page 35, line 28, leave out clause 84.

See statement for amendment 144.

Amendment 64, in clause 84. page 35, line 30, leave out ‘estimated’.

The amendment would establish that payments to the Secretary of State would not be made on an estimation of income receipts.

Amendment 65, page 35, line 38, leave out subsection (5).

The amendment would establish that it will not be possible for payments to be made to the Secretary of State based on assumptions that are not borne out by reality.

Amendment 150, page 36, line 1, leave out clause 85.

See statement for amendment 144.

Government amendment 129.

Amendment 152, page 36, line 31, leave out clause 87.

See statement for amendment 144.

Amendment 153, page 37, line 7, leave out clause 88.

See statement for amendment 144.

Amendment 142, page 37, line 20, leave out clause 89.

This amendment, together with amendment 143, would enable councils to be free to manage flexibly tenancies in a way that drives best value from stock whilst supporting strong local communities.

Amendment 143, page 37, line 32, leave out clause 90.

See statement for amendment 142.

Amendment 105, page 86, line 1, leave out schedule 4.

To remove this schedule from the Bill.

Amendment 106, page 99, line 20, leave out schedule 5.

To remove this schedule from the Bill.

Amendment 107, page 27, line 21, leave out clause 61.

This amendment would remove the ability of the Secretary of State to make grants with respect to Right to Buy discounts to private registered providers including housing associations.

Amendment 88, in clause 61, page 27, line 23, at end insert

‘with the exclusion of—

(a) supported housing for older people;

(b) supported housing units (including self-contained homes where floating support is provided for vulnerable people);

(c) key worker housing (which includes self-contained flats subject to nomination agreements with third parties);

(d) units that form part of major regeneration schemes planned or already under way;

(e) rural settlements;

(f) homes built for charitable purposes without Government grant and homes provided through S.106 agreements requiring stock to be kept as social housing in perpetuity;

(g) cooperative housing;

(h) ALMOS (arm’s length management organisations); and

(i) Alms houses.’

The amendment would exclude the listed categories of specialised housing from being subject to the Right to Buy provisions of the Bill.

Amendment 89, page 27, line 25, at end insert—

‘(2A) The conditions at subsection (2) must include a condition that money equivalent to the market value (disregarding any discount) of a dwelling sold under right to buy and to which the grant applies is spent by the private registered provider on the provision of affordable housing in the same local authority area or London, including at least one new home replacing that sold which is—

(a) of the same tenure,

(b) located in the same local authority area or London borough, and

(c) in accordance with assessed local housing need.’

The amendment would require housing associations offering the Right to Buy to their tenants in London and elsewhere to re-invest all the money received as a result of the sale in replacement affordable housing, including a guaranteed like-for-like home in the same local authority area or London borough.

Amendment 50, page 27, line 28, at end insert—

‘(4) Grants must not be payable on properties bought and turned into buy-to-let dwellings within ten years.”

The amendment would prevent property sold under Right to Buy from being converted into buy to let dwellings for a period of ten years.

Amendment 108, page 27, line 29, leave out clause 62.

This amendment would remove the ability of the Greater London Authority to make grants with respect to Right to Buy discounts to private registered providers including housing associations in London.

Government amendment 111.

Amendment 90, in clause 64, page 28, line 24, at end insert—

‘( ) The discount should remain in perpetuity’

The amendment would ensure that homes sold under the Right to Buy remain as discounted housing in perpetuity.

Amendment 91, page 28, line 24, at end insert—

‘( ) A dwelling must not be sold under the Right to Buy without the Housing Association having the ability to—

(a) verify the source of funding for purchase,

(b) establish who is occupying the property,

(c) check that the person/s seeking to purchase the property under Right to Buy has no interest in another property,

(d) has sufficient time to carry out checks for fraudulent activity, and

(e) be able to prepare reports on (a)-(d) for the Housing Association Board of Trustees to consider.’

The amendment would ensure that housing associations are able to carry out proper checks before proceeding with the Right to Buy offer.

Amendment 109, page 28, line 24, at end insert—

‘( ) A dwelling must not be sold under the Right to Buy without the Housing Association having first—

(a) identified the dwelling that will become the replacement for the dwelling sold, where—

(i) the replacement dwelling may be an existing dwelling or a planned new-build,

(ii) the tenure of the replacement property is presumed to be the same as that of the dwelling sold under Right to Buy, unless a different tenure can be justified on the basis of local needs, and

(iii) the replacement dwelling is located in the same local authority area as the dwelling sold; and

(b) communicated the replacement plan to the Regulator.’

This amendment would ensure that a home cannot be sold under Right to Buy until a suitable replacement home has first been found or planned.

[Dr Blackman-Woods]

It is a pity that we are dealing with the four most contentious aspects of the Bill in one two-hour session, and that the Government did not accept our alterations to the programme motion, which would have made it a bit more sensible.

I shall begin by considering the forced sale of high-value social housing, covered in chapter 2 of part 4 of the Bill. As the Government will be aware, we tabled a number of amendments to chapter 2 on a range of issues relating to the forced sale of such housing. Amendment 92 would ensure that the replacement of property locally with appropriate resourcing was included in legislation. Amendments 93 and 94 would give local authorities more agency over defining “high value” and would limit the number of houses sold in a particular area to 10% of the stock.

--- Later in debate ---

See Member’s explanatory statement for amendment 27.

[Mr Speaker]

Consideration completed. I will now suspend the House for about five minutes in order to make a decision about certification. The Division bells will be rung two minutes before the House resumes. Following my certification, the Government will be tabling the appropriate consent motions, copies of which will be available shortly in the Vote Office and will be distributed by Doorkeepers.

--- Later in debate ---

On resuming—

[Mr Speaker]

I can now inform the House that I have completed certification of the Bill, as required by the Standing Order, and that I have made no change to the provisional certificate issued yesterday evening. Copies of my final certificate will be made available in the Vote Office and on the parliamentary website.

Under Standing Order No. 83M, consent motions are therefore required for the Bill to proceed. Copies of the motions are available in the Vote Office and on the parliamentary website, and they have been made available to Members in the Chamber. Does the Minister intend to move the consent motions?

[Brandon Lewis]

Yes.

[Bob Stewart (Beckenham) (Con)]

Thank goodness.

[Mr Speaker]

I am always happy to hear the Minister’s voice, but a nod suffices for the purpose.

Under Standing Order No. 83M(4), the House must forthwith resolve itself into the Legislative Grand Committee (England and Wales) and thereafter into the Legislative Grand Committee (England).

The House forthwith resolved itself into the Legislative Grand Committee (England and Wales) (Standing Order No. 83M).

[Mrs Eleanor Laing in the Chair]

--- Later in debate ---

[Several hon. Members rose—]

[Mr Speaker]

I need speeches of nearer to three minutes, because I wish to call the hon. Member for Hornchurch and Upminster (Dame Angela Watkinson) and then to accommodate the hon. Members for Westmorland and Lonsdale (Tim Farron), for Brent North (Barry Gardiner) and for Sheffield, Brightside and Hillsborough (Harry Harpham).