National Planning Policy Framework

Tessa Munt Excerpts

Thursday 16th July 2026 Westminster Hall

[Tessa Munt (Wells and Mendip Hills) (LD)]

I beg to move,

That this House has considered the impact of changes to the National Planning Policy Framework.

I am pleased to see you in the Chair, Sir Desmond. I am grateful for the time to introduce this debate on the impact of the changes to the national planning policy framework. I called for this debate following a decision affecting the village of Yatton in the north of the Wells and Mendip Hills constituency, with 190 homes set to be built on a site known as Rectory Farm, Yatton Batch. Yatton Batch is in flood zone 3a, which is the highest level of risk, according to the Environment Agency. The consequences of this decision affect not just the people of Yatton, as I believe it sets a precedent for every other community living with flood risk across this country.

I will give the Minister some context to the geography of my constituency, which matters enormously. Wells and Mendip Hills falls roughly in two parts. One part comprises the limestone Mendip hills and the rest, the majority of the constituency, is wetlands and coastal plains: the Somerset levels and the North Somerset levels. Fifty-one per cent of my constituency is less than 20 metres above sea level.

I will send the Minister a map, on which he will see that the Somerset levels are a man-made landscape. The monks, led by the Abbot of Glastonbury, drained the land hundreds of years ago by digging what locally we call “rhynes”, which is why the map shows the waterways as straight lines in my part of the world. It does not take a PhD in geography to work out that low-lying coastal wetlands are prone to flooding. It has taken centuries of careful management and regular maintenance of the local waterways to keep this land habitable at all.

[Sir John Hayes (South Holland and The Deepings) (Con)]

On the subject of keeping land habitable, the hon. Lady will be familiar with the fact that the Lincolnshire fens, and particularly South Holland and The Deepings, are entirely flat, without even the undulation equivalent to the Mendip hills. Our land is drained, and much of it is reclaimed from the sea, yet there are perpetual attempts to put critical infrastructure on it, including solar, pylons and suchlike. That is incompatible, and those things cannot be reconciled. I entirely endorse what the hon. Lady says about the character of the land, its propensity to flood and what we should do with it.

[Tessa Munt]

I take the right hon. Gentleman’s point. I will suggest to the Minister that, if he wishes to pursue a policy of building on land that will almost certainly flood, we need to put those buildings on stilts. That is not impossible, and there is certainly one very beautiful house on the levels that sits on stilts.

Yatton, the village subject to the decision, sits within the North Somerset levels, barely 2 km from the Bristol channel. On Friday 12 June, the High Court handed down its judgment permitting the development of 190 homes in this flood-prone area, on a site that failed the flood risk sequential test. The judgment follows the NPPF exactly, as the judge had to, and prioritised building homes over protection from flooding. It imperils not only the new homes—I should explain that the judge said that homeowners threatened by flooding had sufficient time to vacate their houses before the floodwater reached them—but the homes and businesses in and around the Yatton site. The impact of flooding does not disappear just because people can get away safely. This is about property as well as people. The damage to wellbeing and mental health takes its toll on those affected, as does the damage to property, which can take months and sometimes years to remedy and replace.

I would not want the Minister to think that this is a case of nimbyism and anti-development sentiment by those in rural areas. My Lib Dem colleagues and I agree with the Government’s desire to meet the huge need for housing across the country. There are 12,800 people on the Homefinder list in Somerset, which covers 66% of my patch, and a similar proportion on the North Somerset list.

I am chair of the all-party parliamentary group on flooding and flooded communities. Many of our discussions centre on the Flood Re scheme, which was a great initiative that meant insurers could cover flooding claims and the premiums for home insurance in high flood risk areas were not astronomical. The scheme comes to an end in 2039, and the Government have been very clear that it will not be extended. As set out in legislation, homes built after 2009 are not covered by the scheme. As we get closer to that 2039 date, more and more homes built in high flood risk areas are not covered by the scheme and so risk becoming uninsurable and consequently unmortgageable. The consequences for developers and those who have already bought the homes will be awful. And the Yatton decision compounds the problems with the NPPF in allowing the need for home building to override common sense.

To press the point, it is very likely that residents of new homes built on floodplains, such as those in Yatton, will face flooding damage in the coming years. Not only will they not be able to make an insurance claim, but any new buyers will likely struggle to access a mortgage. Residents may well end up trapped, unable to sell a home that might cost them thousands of pounds in repairs every winter. The Minister knows the weather experts say that what we are experiencing now is the most stable weather that we are ever going to see.

I mentioned that the current neighbours would also be affected due to the simple fact that the floodwater must go somewhere. If developers choose to build up the land on which they wish to develop, the floodwater may well not hit those homes precisely, but will cause the existing homes and businesses in the area to be flooded more greatly. I have a lovely set of photographs of the land I am speaking about, which I will send to the Minister, showing exactly how it floods every year.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Lady for the ambition she has put forward. Does she not agree that there is a risk of severe regulatory divergence? If the English planning system undergoes massive deregulation and introduces a faster, rules-based yes by default to major projects, capital will do what it always does and flow through the path of least resistance. The Government and the Minister need to ensure that the possibility she outlines for her constituents does not happen elsewhere.

[Tessa Munt]

I thank the hon. Gentleman for his intervention. The point I would like to make to the Minister is that, if developers choose to raise the level of the land on which they wish to build, we make a complete mockery of the Environment Agency’s work in relation to the LiDAR data that it uses to measure flood risk. There will be little pockets that are no longer in flood zone 3a, for example, but everybody else is then in a more problematic area for flooding. The current neighbours would be affected, because floodwater has to go somewhere. In the event of flooding, if the properties are lifted above sea level by raising the land, the displaced water goes straight into existing homes and businesses.

The Association of British Insurers has been clear that, while it supports the Government’s ambition to deliver 1.5 million homes, it has serious concerns about allowing developers to bypass the flood risk sequential test in areas at high risk of surface water flooding, which is precisely the kind of decision we have seen play out in Yatton. The scale of the risk to which it points is sobering.

The Environment Agency’s national assessment of flood and coastal erosion risk shows that 6.3 million homes in England are already at risk of flooding, 4.6 million of them from surface water alone. In just the first quarter of this year, insurers paid out £846 million in property claims, with the average weather-related claim reaching £6,040—the highest first quarter figure on record. Subsidence claims, often linked to the same extreme weather, rose 9% year on year to £17,820. Research commissioned by Aviva suggests that 11% of new homes built between 2022 and 2024 are already at risk of flooding, and that figure is projected to rise to one in seven by 2050, once climate change is factored in.

That is why I believe the Association of British Insurers, together with UK Finance and flood campaigners, has written directly to the Secretaries of State for Environment, Food and Rural Affairs and for Housing, Communities and Local Government to raise the alarm. The message is simple: rather than weakening the sequential test, the Government should mandate sustainable drainage systems, finally implementing schedule 3 to the Flood and Water Management Act 2010. That legislation has been in the ether, unimplemented, for nearly 16 years. It is telling that 66% of the public already say that they do not believe the country or their local area is prepared for future flooding. Ignoring the industry that pays out when floods happen is really not the way to change people’s minds.

I put it to the Minister that Somerset council is required to deliver 75,000 new homes in the next 20 years, and I believe that North Somerset has to produce nearly 25,000 new homes in the next 15 years. To repeat something that one of my colleagues on Somerset council says, it has taken since the dawn of time for the population of the Somerset council area—not including the North Somerset council area—to reach 560,000. I am keen to know why the Minister and his Government believe that the population will grow by more than 75,000 people in the next 20 years. That is a 13% increase, when it has taken centuries to get to 560,000. It is a ridiculous population increase, and it is not realistic in the slightest. For context, the Office for National Statistics projects that the entire population of the United Kingdom will grow from around 70 million to around 72 million over the same period—a rise of just 2.8%.

I am the first to recognise that Wells and Mendip Hills is a lovely place to live—actually the best—but, even allowing for that huge appeal, I struggle to understand why the Government believe that such a disproportionately rural area will see growth at almost five times the national rate. The NPPF changes will affect much more than just flood risk—our area and its green spaces will be under pressure.

It seems especially disproportionate when I look at Bristol, my local city, which I love dearly. Its population is projected to grow by about 10%, which is again above the national average. It seems that those in Somerset and North Somerset will be asked to take a huge number of new residents. I do not know where they are coming from, and I cannot quite see how the Government have come to those figures. I would be grateful if the Minister could write to me on how his team has come to that assumption.

The last matter I would like to raise is that farmers run factories. Those factories are the agricultural land—it is just that we do not have roofs on them. That is no different from any other part of the country that has some sort of manufacturing. Farmers use fields, and they do not have roofs, so it is quite hard for people to spot the fact that they are food factories. In the interests of an honest debate, I acknowledge that many in the farming community welcome what is set out in the new NPPF, but that comes with real caveats. It is worth the House hearing what they are.

A lot of our greenhouses are more than 40 years old and in urgent need of modernisation, yet large glasshouse developments are still routinely treated as major infrastructure projects, which triggers huge delays that again undermine our domestic food production. My colleagues will need no second invitation on this point: food security is national security. I am really glad that the Government recognised that in February. Ensuring that our farmers can produce the food this country needs is of critical importance in what is a very unstable world.

Will the Minister consider the points that I have made and write to me about the population figures? I want to make absolutely certain that he does not misunderstand me; this is not a sentimental case for nature and green spaces. It is very realistic damage that is happening to Somerset.

[Several hon. Members rose—]

--- Later in debate ---

[Brian Mathew (Melksham and Devizes) (LD)]

It is a pleasure to serve under your chairship, Sir Desmond. I thank my hon. Friend the Member for Wells and Mendip Hills (Tessa Munt) for securing this important debate. Planning and local development is one of the most commonly raised issues in my email inbox, as I am sure is the case for many others in the room.

First, I would like to make it clear that I am completely aware of the dire need for housing in this country. Many young people have expressed to me their fears that they will never get a foot on the property ladder, or that they are having to move away from the communities they know and love to find affordable places to rent. Affordable housing is a need, not a luxury.

However, new homes do not need to come at the cost of the community that is already there, and nor should they be placed on flood plains. Local people and local elected officials should have a role in deciding the future of their area, because they best understand it. When local people are given the opportunity to help shape their future, it can be a roaring success. In the village of Holt, in my constituency, a neighbourhood plan shaped the development of a derelict, unused tannery site into an award-winning mixed-use development, combining homes and new commercial space, while still preserving the village’s distinct character and acknowledging its history. Meanwhile, in Seend, near Devizes, the village’s community land trust has delivered affordable homes for local residents, built to the highest passive house standards of energy efficiency. That demonstrates what rural communities can achieve by working with partners, such as local councils and Homes England, for the benefit of residents and the environment.

Although there is a lot of good in the framework, I am particularly concerned that it fails to commit to new homes being zero-carbon or held to the highest energy efficiency standards, as was shown to be possible by the development in Seend. It also contains no clear commitment to deliver actually affordable homes, and it risks encouraging more executive housing to make more money for developers, while failing to tackle the housing crisis.

I welcome the proposed presumption in favour of development near railway stations. Transport-oriented development is precisely the kind of planning approach needed to move away from car-dependent housing estates located far from town centres.

[Tessa Munt]

It is a very good idea to have development near railway stations. However, I have another application on the horizon in Yatton, which is the village I was discussing earlier, that involves a plan to build on the railway station car park. Does my hon. Friend think that that is a good idea?

[Brian Mathew]

It does sound most odd, if I may say so.

That principle lies at the heart of the Bath and Wiltshire metro proposal, which I support. It has the potential to unlock brownfield regeneration in Melksham town centre, revitalise the riverside and strengthen the high street through sustainable, rail-connected growth. However, if that ambition is to be realised, local areas must have access to the resources needed to develop robust transport business cases, masterplans and infra- structure programmes. I am therefore concerned that the removal of funding for sub-national transport bodies risks creating a significant obstacle to the station upgrades, service improvements and strategic transport planning required to support the housing and regeneration opportunities that the policy seeks to encourage. Without adequate investment in the transport network itself, the benefits of transport-oriented development may be difficult to deliver in much of the country.

--- Later in debate ---

[Matthew Pennycook]

We have had this debate many times. I will come on to housing targets and the fact that if there is an up-to-date local plan in place, the housing targets do not need to be immediately revised. On the specific point about rural affordable housing, the framework makes it easier for rural exception sites to come forward through clearer national policy. It makes it far easier for rural authorities to require affordable housing on smaller sites, including removing the need for legislative designation.

We have received over 20,000 responses to the consultation. We have made very good progress in analysing the responses and making final policy decisions, but unfortunately, as a result of the announcement made by the Prime Minister on 22 June that he was resigning as Prime Minister and leader of the Labour Party and the associated constraints on Government business in the period ahead of the summer recess, including the prohibition on initiating new policy commitments, it has not been possible to respond to the consultation and publish the final framework before the summer recess. We will seek to do so in due course.

The issue of flooding, which was raised by the hon. Member for Wells and Mendip Hills, is of particular concern in her constituency, as she made clear. The NPPF outlines a sequential approach to flood risk management, requiring inappropriate development to be directed away from areas at highest risk and providing strong safeguards where development is necessary in those areas. In plan making, a sequential approach should be employed. That involves applying the sequential test and, if needed, the exception test. In decision making, where necessary, planning authorities also apply the sequential test and, if needed, the exception test to ensure that flood risk is minimised and appropriately addressed.

[Tessa Munt]

I wonder how the High Court came to its decision over the site in Yatton. What the Minister says sounds good to me, but it can be swept away because the NPPF is what the judge decreed was the way to go and, because there is a need for homes, the sequential test can be completely ignored.

[Matthew Pennycook]

That is not quite my reading of the Yatton judgment. The judge confirmed that even if a site fails the formal sequential test for flood risk, elements of the exception test remain valid material considerations that can outweigh flood risk under the tilted balance in paragraph 11(d). The High Court made a judgment in that case on the application of the policy, but it applies, as I have set out—[Interruption.] I will give way briefly, but I do want to cover the other issues raised in the debate.

[Tessa Munt]

Will the Minister meet me and those in my constituency who are particularly concerned about this to discuss it?

[Matthew Pennycook]

If I remain in post after the summer recess, I will be more than happy to meet the hon. Lady.

Where the sequential and exception tests have been applied as necessary and are not met, the framework is clear that development should not be allowed. I want to push back gently on the assertions made by the hon. Lady and the Liberal Democrat spokesman, the hon. Member for Taunton and Wellington, that we have weakened the sequential test. We have not weakened the sequential test in any way. We have clarified through changes to the PPG the triggers for the sequential test as well as its application, but we have not weakened it. If it is found necessary to build homes in areas of flood risk, the statutory guidance accompanying the building regulations promotes flood-resilient building work in flood-prone areas through approved document C, and the framework makes it clear that developments of all sizes should use sustainable drainage techniques where the development could have drainage impacts.

The draft NPPF that we have consulted on includes a dedicated chapter on planning for flood risk and coastal change. This seeks to clarify how existing policies should operate and aligns the NPPF with recent updates to planning guidance. It also included policies incorporating a new requirement that sustainable drainage systems should be designed in accordance with the national standards for sustainable drainage systems to provide a consistent basis for improving their design.

On the presumption in favour of sustainable development, we are trying to drive up the coverage of up-to-date local plans. Several hon. Members have spoken today who represent areas that do not have up-to-date local plans and five-year housing land supplies. We are making great progress in driving up plan coverage. Over 60% more local plans are at examination now than at this time last year, but it will take time to boost coverage. It is important, where policies are not up to date or where there is an insufficient supply of land, that there is a fallback to encourage planning permission to be granted, and that is what the presumption provides for.

However, the NPPF we published in December 2024 not only improved the operation of the presumption by clarifying the circumstances in which it applies, but introduced new safeguards to make it clear that its application cannot justify poor-quality development. Under the revised draft presumption published for consultation last year, the default support in principle is turned off in certain situations, including where the development would conflict with sites allocated for specific uses or would use parks and open space or land identified for flood risk management. It would also be disapplied where development does not achieve acceptable standards in relation to harm to nature, heritage assets, flood risk, design and being an effective use of land.

I have only a short time available to me and a wide range of other issues were raised. I will touch on each briefly. On our housing target and the standard method we have introduced, in our view the new method better responds to affordability pressures by using a higher affordability adjustment in its calculation. That recognises the importance of housing affordability in assessing housing need and helps direct more homes to where they are most needed and least affordable. It also provides greater certainty to the sector through more stable and predictable housing numbers, compared with the previous approach that relied on out-of-date demographic predictions and unevidenced and arbitrary judgments.

On brownfield, grey-belt and green-belt land, the hon. Member for Orpington knows full well that we strengthened the policy in the December 2024 NPPF on brownfield land. We have gone further in the draft framework that is out for consultation. It is not the case that there is enough brownfield land, particularly not viable land in the right locations on brownfield land registers across the country. In certain exceptional circumstances, local authorities need to release green-belt land. We ask them when they do so to explore all options in maximising brownfield land, working with neighbouring authorities and where necessary reviewing their green belt.

The definition of grey belt is set out in the glossary of the NPPF. There is no confusion about what it means. Where grey belt is being brought forward, it cannot fundamentally undermine the policies of the green belt across the wider plan area; we included that safeguard in the framework.

On train stations, the right hon. Member for East Hampshire (Damian Hinds) was right that we want more development to come forward in sustainable locations around train stations. We obviously took a different approach to all stations, as opposed to well-connected stations, where we are looking for higher minimum densities to come forward. I must be clear that the proposals do not grant automatic permission on suitable sites or remove appropriate local oversight of the development control process. They add weight to what needs to be considered as part of an overall planning judgment, as is the case with all material considerations.

I will not dwell on rural or urban housing targets. I have said before and say again that across city regions the new standard method increases targets by 20% and, through that, housing growth is directed to a wider range of urban areas and smaller cities as well as our larger city areas.

I commend the hon. Member for Wells and Mendip Hills and the Backbench Business Committee for giving the House an opportunity to debate these important matters. Over the past two years, the Government have sought to revamp the planning system to ensure that it will facilitate the delivery of high and sustainable rates of house building and high-quality infrastructure in the years ahead. To the point on infrastructure, the new NPPF strengthens expectations in that area as well.

More needs to be done to transform the failing housing system we inherited, but the revised NPPF we published in December 2024 and the wholly restructured framework we will publish in due course are integral to our plans to improve housing availability, affordability and quality in this Parliament. I thank all hon. Members for their considered contributions today and wish them all, and you, Sir Desmond, an enjoyable and productive summer recess.

[Tessa Munt]

I am grateful to you, Sir Desmond, and to the Minister for everything he has said. I very much hope that he stays in his place because we would like to carry on the conversation; I want him to stay exactly where he is. I know that the Government are not in favour of leaving notes, but if in a ghastly moment the Minister decides that something is not right and moves on, will he leave a long note for his successor?

I do not particularly wish to argue in the last moments of the debate, but as I understand it the national planning policy guidance permits surface water flooding sequential tests to be disapplied. I need to continue that conversation with the Minister, if I may. I point out that our local plans are up to date until such time as the housing numbers change, and then of course the local plans will not be in date any longer. In Somerset alone—I am not talking about North Somerset—18,000 new homes have passed planning but have not been built, which all relates to phosphate stuff. Those homes do not seem to be taken into account at all, given that we have another 75,000 on top of those, which seems inappropriate. I note the Minister’s comments about station parking; I really hope that we do not build on station car parks, as that would be mad. There are a number of other points that I would have liked to make—

[Sir Desmond Swayne (in the Chair)]

Order.

Motion lapsed (Standing Order No. 10(6)).

Foreign Interference in UK Politics

Tessa Munt Excerpts

Monday 6th July 2026 Commons Chamber

[Samantha Dixon]

Yes, I can.

[Tessa Munt (Wells and Mendip Hills) (LD)]

I welcome the Minister’s statement. Has she considered the merits of establishing an office of the whistleblower, which would create new legal protections for those who declare wrongdoing and promote greater public awareness of whistleblowers’ rights? Will the Government ensure that there are criminal sanctions on officeholders who fail to whistle blow when they know or become aware of political interference or wrongdoing?

[Samantha Dixon]

The hon. Lady raises an important point. As the independent regulator for our democracy, the Electoral Commission is always willing to hear from members of the public, political parties and other sources about anything that people believe may have been done incorrectly, whether inadvertently or deliberately. I refer the hon. Lady to the Electoral Commission, but I take her point.

Commonhold and Leasehold Reform

Tessa Munt Excerpts

Tuesday 27th January 2026 Commons Chamber

[Matthew Pennycook]

It is certainly not our intention to allow any loopholes into the legislation. That is precisely why we have brought forward a draft Bill rather than a final product. Such is the complexity and technical nature of the reform we are enacting that the additional and enhanced scrutiny to be provided by the Housing, Communities and Local Government Committee will be invaluable.

[Tessa Munt (Wells and Mendip Hills) (LD)]

I welcome the Minister’s announcement and I know that it will bring some joy, particularly with the further announcements he is going to make later in the Parliament, to many of the residents in my part of the west country. May I draw his attention to the housing with care sector? I am talking not about those gated communities that have a caretaker or somebody who cuts the grass, but about charities such as the St Monica Trust that provide some affordable rents and shared ownership but mostly provide leasehold purchase with a guaranteed buy-back and resale. This gives them a way of updating their contracts for residents and maintaining affordability. These organisations are really concerned that there will be an unnuanced ban on new leasehold care-led retirement living apartments. What consideration has the Minister given to the housing with care sector having some protection, and his attention?

[Matthew Pennycook]

The draft Bill, as published, includes exemptions that mirror the ground rent exemptions for new leases entered into since 30 July 2022, based on that previous Act of Parliament, but we will consider through the pre-legislative scrutiny process whether other exemptions would be appropriate for a small number of leases granted for specialist purposes. I can assure the hon. Member that I have given consideration, and will give further consideration, to the matter she raises.

English Devolution and Community Empowerment Bill

Tessa Munt Excerpts

Report stage
Monday 24th November 2025 Commons Chamber

Somerset has been dealing with a financial emergency over the past few years, in large part due to the mess left by the previous Conservative-led county council’s financial neglect. Rising costs and demand for essential services have put budgets further under severe pressure.

[Tessa Munt (Wells and Mendip Hills) (LD)]

In Somerset, we were set back enormously by six years of council tax freeze during the early 2010s, under the Conservative-led council—[Interruption.] Council tax was frozen for six years, way in excess of what the Government had anticipated, leaving council finances in Somerset in dire straits.

[Sarah Dyke]

My hon. Friend will know that Somerset county council was near bankrupt in 2018. Indeed, we suffered a lot under the previous Conservative-led county council’s tenure because of its financial neglect. The rising costs and demand for essential services have put budgets under severe pressure, despite the significant transformation and savings now being delivered by the Liberal Democrat-led unitary council.

The lack of funding for local government is not unique to Somerset. It is a national problem that requires a national solution, with councils still waiting for the delayed details of the local government finance settlement. The current funding model is broken and it needs fundamental change. That has not been achieved in this Bill, but amendments 61 and 62, in the name of my hon. Friend the Member for Guildford, would ensure that councils designated as a single foundation strategic authority receive appropriate funding to facilitate their transition, and combined authorities receive adequate funding to facilitate their establishment. I urge all right hon. and hon. Members to support such amendments to the Bill.

Housing, Communities and Local Government

Tessa Munt Excerpts

Wednesday 4th December 2024 Written Corrections

The following extract is from Topical Questions on 2 December 2024.

[Tessa Munt (Wells and Mendip Hills) (LD)]

Non-qualifying leaseholder status gets slapped on a property in perpetuity long after the required safety works are completed. That status means that it is almost impossible to acquire a mortgage—solicitors advise very strongly that purchasers steer clear of such properties, which are very often flats—and the status is inherited by successive owners in perpetuity. Has the Minister considered what this status does for the housing crisis?

[Alex Norris]

I completely understand the challenge. Drawing a line between qualifying and non-qualifying leaseholders—between people who own a property and therefore suffer from things that have been beyond their control, and landlords that are businesses and therefore have multiple assets—will always be a difficult job. At the edge, where the boundary between qualifying and non-qualifying becomes blurred, there are some difficult cases. As a new Government, we are committed to working with people to understand better how we can go forward on that. As for the substantive point on where the liability should lie, it is about finding the right balance between those who built the building and those who live in it.

[Official Report, 2 December 2024; Vol. 758, c. 24.]

Written correction submitted by the Under-Secretary of State for Housing, Communities and Local Government, the hon. Member for Nottingham North and Kimberley (Alex Norris):

Oral Answers to Questions

Tessa Munt Excerpts

Monday 2nd December 2024 Commons Chamber

[Alex Norris]

As my hon. Friend knows, I am very keen on community ownership, and I am sad to hear about the situation in his community. I would definitely steer him towards the “asset of community value” process in the immediate term, and of course, I would be very happy to meet him and campaigners on this issue.

[Tessa Munt (Wells and Mendip Hills) (LD)]

Non-qualifying leaseholder status gets slapped on a property in perpetuity long after the required safety works are completed. That status means that it is almost impossible to acquire a mortgage—solicitors advise very strongly that purchasers steer clear of such properties, which are very often flats—and the status is inherited by successive owners in perpetuity. Has the Minister considered what this status does for the housing crisis?

[Alex Norris]

I completely understand the challenge. Drawing a line between qualifying and non-qualifying leaseholders—between people who own a property and therefore suffer from things that have been beyond their control, and landlords that are businesses and therefore have multiple assets—will always be a difficult job. At the edge, where the boundary between qualifying and non-qualifying becomes blurred, there are some difficult cases. As a new Government, we are committed to working with people to understand better how we can go forward on that. As for the substantive point on where the liability should lie, it is about finding the right balance between those who built the building and those who live in it.

Grenfell Tower Inquiry

Tessa Munt Excerpts

Monday 2nd December 2024 Commons Chamber

[Tessa Munt (Wells and Mendip Hills) (LD)]

I associate myself with the remarks of the Deputy Prime Minister and my hon. Friend the Member for Taunton and Wellington (Gideon Amos) in recognising the pain, grief and hurt caused to so many connected to the Grenfell Tower tragedy, in which 72 lives were lost. I have heard the sombre comments in this debate and mean no disrespect by raising a specific matter relating to the understanding and interpretation of the legislation passed subsequently—namely, the anomaly of non-qualified leaseholder status, as it affects some constituents of mine.

My constituents own a one-bedroom flat in north Somerset. It is not a penthouse or anything luxurious; it is simply a home. They purchased it in 2015 with a 999-year lease, and it was a new build, so it was theoretically covered by the NHBC 10-year guarantee. They believed it would be an ideal long-term rental property, without too many maintenance issues ahead.

A neighbouring flat went up for sale in August 2024, and the buyer’s solicitor asked for an up-to-date fire risk appraisal. This prompted the management company to organise an assessment of the external walls, and the report strongly recommended cladding remediation work. My constituents would have known none of that, had it not been for the seller keeping them in the loop.

The new financial protections in the Building Safety Act 2022 apply to leaseholders in buildings above 11 metres, or five storeys in height, with historical safety defects. From 28 June 2022, qualifying leaseholders in England could no longer be charged for cladding remediation, and there are legal protections for non-cladding costs. The accompanying secondary legislation came into force on 20 and 21 July 2022.

The Government are clear that developers must pay to fix buildings that they had a role in developing or refurbishing, even when they no longer own the building. That seems right. The Act ensures that building owners who are, or are associated with, the developer must pay for the remediation of historical defects. The courts have been granted new powers to extend liability to associated companies, ensuring that civil cases for claims against defective buildings can be brought against companies associated with a developer, preventing the use of complex corporate structures to avoid that liability.

Qualifying leaseholders are protected from all cladding system remediation costs. Those whose property is calculated to be worth less than £175,000 outside London, or £325,000 in Greater London, or whose building owner has a group net worth of more than £2 million per relevant building as of 14 February 2022, are exempt from all historical safety remediation costs. The Act also includes a robust package of measures designed to ensure that those responsible finally put right the buildings they have contributed to making so dangerous, and that leaseholders are firmly protected from the unfair costs of remediation that they previous faced. No one could disagree that, on the face of it, that is fair.

Unfortunately, the previous Government failed to notify any leaseholders, qualifying or non-qualifying, of the implications of the Building Safety Act 2022, which came into force on 28 June 2022. However, four months ago, my constituents had no knowledge of the non-qualified leaseholder status that had been bestowed on them. Without any prior notice or consultation, my constituents’ legal rights as leaseholders had been significantly changed, backdated to 14 February 2022. That is because, as of that date, the threshold for non-qualified leaseholder status cuts in at ownership of four properties.

It is very hard to find definitions of non-qualified leaseholder status on the Government website. There is plenty about qualified leaseholder status, but very little about non-qualified leaseholder status. The Under-Secretary of State for Housing, Communities and Local Government, the hon. Member for Nottingham North and Kimberley (Alex Norris), has confirmed that, weirdly, under the previous Government’s legislation, a couple can own five properties, provided that they own their primary home jointly and two other properties each. However, a couple who own four properties jointly become non-qualifying leaseholders. Who on earth can think that is fair? That will discriminate against couples and families as compared with sophisticated business entities, which are probably the intended target of the legislation.

[Manuela Perteghella (Stratford-on-Avon) (LD)]

Does my hon. Friend agree that the Grenfell Tower inquiry has laid bare the failure of successive Governments in their duty of care to their citizens and revealed a catastrophic culture of carelessness that has caused untold suffering? Does she agree that the Government must act urgently to assist all leaseholders, including those currently excluded, such as non-qualifying leaseholder residents, like my constituents, who are unfairly left in financial and emotional turmoil through no fault of their own?

[Tessa Munt]

Yes, I agree with my hon. Friend, and I will come on to some of those issues.

Sophisticated business entities are probably the intended target of the legislation, so there is good news for people who have divided their property assets, and bad luck for those who jointly own their property investments, which is a terribly random criterion. It was shocking enough for my constituents to find out that the nine-year-old building in which their flat sits had a cladding issue, but due to the fact that they jointly owned four properties on 14 February 2022, they were left largely unprotected. They are not like the developers or cladding suppliers. Not only that, but their status as non-qualifying leaseholders has been attached to their flat in perpetuity. Even after all the remediation work has taken place, centuries have passed—currently, this is another 990 years on the lease —and they have departed this world, every future owner of their flat will inherit the same diminished lease, while neighbouring flats are protected from the costs of making the building safe.

The impact of the legislation is profound. Solicitors are advising their clients not to buy any flat with the non-qualified leaseholder status attached, even after the fire safety work has been completed. Lenders are refusing to lend on properties of that status. The values are expected to reduce considerably, possibly by as much as 50%. Estate agents realise that trying to sell properties with this status is pretty much a lost cause. Non-qualified leaseholders cannot sell their flats—they are mostly flats—and cannot mitigate the risks they have been exposed to. If a leaseholder has a 75% mortgage and the value drops by 50%, it is easy to see how financial crisis can hit ordinary people who saved hard, invested in bricks and mortar and are providing homes for rent all over the country, helping alleviate our housing crisis. Insurance premiums are sky high. If this continues, it is likely that lenders will not want to take possession if there is a default on the mortgage, because they themselves would become liable. Leaving a flat with this status in a will may expose family and friends to long-term problems associated with its status, as they will potentially inherit a liability not an asset.

The legislation has removed a whole tier of property from the ever-increasing number of young buyers and those who want to downsize, such as older citizens. It is clear that without the support of surveyors, agents, solicitors and lenders, it will become increasingly hard to secure one’s first or last home. Whatever one’s political ideals, surely we all agree that there is a terrible shortage of affordable homes, and the affordable end of the market often comes in the shape of a leasehold flat. I cannot find the path of logic through this legislation. I have no idea who tried to think this one through—I recognise that it was not the Minister. It seems deeply unfair that someone’s legal rights can be different from those who own flats in the same building, just because my constituents had four or more properties in their ownership on 14 February.

Will the Minister try to explain the logic, though I recognise he did not write the legislation? It would be nice if his opposite number, the hon. Member for Ruislip, Northwood and Pinner (David Simmonds), would have a crack at trying to tell me how it works—I just do not get it. It is a bit like someone having their car recalled for a safety issue and having to pay to correct the problem and any other safety problem in the future due to the fact that they and their family have three other cars between them, and they might want to sell the car once the safety fault is fixed. This is madness.

The Minister is on the record as having confirmed that the Building Safety Act 2022 was written to safeguard the health and safety of those who lived in the affected buildings. If a non-qualified leaseholder has a leasehold flat as their principal flat, they are protected. What about the tenants who live in the flats owned by private landlords who are in this trap? Are they not important enough to be protected, too? The Minister further confirmed in a letter last month that once the property is brought up to standard and safety remedies are completed, in the years ahead

“the expectation is that the qualification point should essentially become moot”.

There is plenty in the Government’s guidelines about non-qualifying leasehold status remaining with the property in perpetuity. I can find absolutely nothing about it becoming moot. I wonder how the Minister sees that being legislated for.

On the subject of Government guidelines, they are so complicated and hard to interpret that solicitors are at loggerheads over their ramifications. My constituents’ management company initially confirmed that they would be liable for all the costs associated with cladding remediation works, even if the building were accepted into the cladding safety scheme—that is, until my constituents were able to get the Ministry of Housing, Communities and Local Government to write to them confirming that they would be protected under the cladding safety scheme. However, it fell to my constituents to get proof and to convince their management company.

Worse than that, the Department advises owners to contact LEASE—the Leasehold Advisory Service—to establish their rights. LEASE confirmed both on the phone and in writing that my constituents did not qualify for any help or support in the cladding safety scheme. They were advised by others in the same predicament to contact the Ministry of Housing, Communities and Local Government. Can the Minister confirm who should indicate whether non-qualifying leaseholders are covered by the cladding safety scheme?

These Government Departments are set up to help and guide people such as my constituents, yet they are giving completely conflicting advice. That situation has caused my constituents anguish, sleepless nights and constant worry about the possible life-changing financial burden that may be heading their way. If the Government do not sort that out so that advice is clear and consistent, we are all lost. Will the Minister meet my constituents and me to further discuss non-qualified leaseholder status as soon as possible?

[Several hon. Members rose—]

Oral Answers to Questions

Tessa Munt Excerpts

Monday 28th October 2024 Commons Chamber

[Richard Foord (Honiton and Sidmouth) (LD)]

12. What steps she is taking with Cabinet colleagues to ensure that every property has access to either gigabit broadband or a 4G or 5G mobile signal.

[Tessa Munt (Wells and Mendip Hills) (LD)]

15. What steps she is taking with Cabinet colleagues to ensure that every property has access to either gigabit broadband or a 4G or 5G mobile signal.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Alex Norris)]

It is essential to keep pace with growing demand for internet bandwidth and mobile data from local businesses, residents and those who visit our communities. That is why the Government’s ambition is to reach national gigabit and national 5G coverage as soon as possible, by committing to support investment in high-quality, reliable digital connectivity, so that communities can benefit from faster economic growth and greater social inclusion. My right hon. Friend the Secretary of State for Science, Innovation and Technology is leading that work and will provide an update in due course.

--- Later in debate ---

[Alex Norris]

The hon. Gentleman rightly refers to our manifesto commitment, and he has heard a commitment today that we want to see full gigabit and full national 5G roll-out as soon as possible. We are getting on with it, but I am sorry to hear that there are issues. As I am keen to meet the hon. Member for Taunton and Wellington (Mr Amos), I may well meet him too, if he is similarly keen.

[Tessa Munt]

Third time lucky: it is Somerset here. I know that the Government want services—finding a home, looking for help, paying taxes, working, and even learning during covid—to be accessed online, but in my part of mid and north Somerset, people can only dream of gigabit broadband; they would be really happy if they had superfast. Can the Minister investigate how to inspire a national broadband roll-out programme that is realistic? Is it time for a new national plan, as access to superfast broadband has so many holes and still costs billions?

[Alex Norris]

I am grateful for the hon. Lady’s question, and I think of the challenges in my own constituency, where my constituents ask me questions in a similar vein. To be very clear, the Government know that the market will be able to provide considerable coverage across the country, but that there will always be communities—including her own, I suspect—where that has traditionally been a challenge, and we are committed to making sure that that gap is filled. We have the same aspiration and, as I say, we intend to meet it as soon as we possibly can.