Building Homes

Wendy Morton Excerpts

Thursday 12th December 2024 Commons Chamber

[Matthew Pennycook]

My hon. Friend makes a good point. Viability is stalling development in lots of areas in the country. We need to look at what support can be put in place for particular schemes—our new homes accelerator, for example, is providing planning capacity support and other forms of support—and at why some schemes, particularly consented or near-consented large schemes, are being held up. As I have said before in the House, we are giving further thought to how we examine these issues, and to what more we can do to ensure that consented schemes are built out in good time.

[Wendy Morton (Aldridge-Brownhills) (Con)]

This centrally driven intervention drives a coach and horses through green belt areas such as Aldridge-Brownhills and through local democracy. How will the Minister ensure that local communities are respected and have a voice, so that we build the right homes in the right places?

[Matthew Pennycook]

I return to a point that I have made several times during this statement. The onus is on local communities and elected leaders to put in place up-to-date local plans that shape where development is to take place. I know from previous conversations with the right hon. Lady that she wants brownfield-first developments—so do we. We have put in the framework published today a number of targeted changes to support the delivery of brownfield sites. We have also consulted, through a working paper soft consultation, on proposals for a brownfield passport to further accelerate and fast-track brownfield development. Local areas can look to bring forward and densify brownfield sites. However, in response to the point that there are not enough such sites, or that communities cannot work across boundaries with neighbouring authorities, we are saying, “Please look at the release of low-quality land within the green belt.”

Oral Answers to Questions

Wendy Morton Excerpts

Monday 2nd September 2024 Commons Chamber

[Mr Speaker]

I call Mel Stride. Sorry; he is not here.

[Wendy Morton (Aldridge-Brownhills) (Con)]

Our high streets are undoubtedly changing. Conservative-led Walsall Council is working hard to secure positive change in areas such as Brownhills and the regeneration of Ravenscourt, and we have a new civic square. What additional resources will the Minister make available to councils? The regeneration of our high streets, both residential and commercial, is an excellent way of helping to protect green-belt land by also regenerating important town centres.

[Alex Norris]

The right hon. Lady is exactly right. The future of the high street is not about returning to how things were. There must be a place for leisure, a place, of course, for retail and a place for residential properties, and councils of all political persuasions throughout the country are trying to find that perfect alchemy. We have inherited an extremely difficult funding situation, but we are working our way through it, and future funding decisions will be made in the Budget on 30 October.

Building Homes

Wendy Morton Excerpts

Tuesday 30th July 2024 Commons Chamber

[Angela Rayner]

Parts of this consultation look at how we can strengthen section 106, and we want to do that in conjunction with local authorities. As I mentioned in my statement, we are also bringing forward, at a later date through this Parliament, measures on strategic planning and the planning and infrastructure Bill. This is the start of the process, but we know there is a lot more to do. I look forward to my hon. Friend’s engagement with that.

[Wendy Morton (Aldridge-Brownhills) (Con)]

I am no nimby, but what we are seeing today is a lurch back to top-down mandatory targets that will ride roughshod through local communities such as those that I represent across Aldridge-Brownhills, and through local decision making. I do agree with the Deputy Prime Minister, though, when she says that the first port of call must be brownfield land, so will she confirm that she will give full financing to brownfield land remediation and reclamation?

[Angela Rayner]

We think we can use brownfield funding better, but this is not about riding roughshod over local decisions and what local people want; having mandatory housing targets and plans means that people will be able to decide. What we are saying, and what we said at the general election, is that we will build 1.5 million homes; we said that clearly, and we have a mandate to do it. We think that the new method for calculating housing targets works better; we think it will deliver for people, and that includes the affordability test. Therefore, we will deliver the houses that the right hon. Lady’s constituency needs, and I would encourage her to engage in the process with her local authority.

Oral Answers to Questions

Wendy Morton Excerpts

Monday 22nd April 2024 Commons Chamber

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Simon Hoare)]

This is a tremendously serious issue. My Department and other Government Departments, led by the Security Minister in the Home Office, are spending a huge amount of time, effort and resource in ensuring the safety of candidates; the safety, security and robustness of the process; and that all those who wish to take part in our democratic functions, in whichever fora they happen to manifest themselves, can do so safely and securely. That is a very firm commitment. The hon. Member will know that we are dealing with that as a serious matter.

[Wendy Morton (Aldridge-Brownhills) (Con)]

T9. In constituencies such as Aldridge-Brownhills, our green belt is precious; and once it has gone, it has gone forever. But in the west midlands, thanks to the leadership and vision of Mayor Andy Street and his “brownfield first” approach, we have seen 16,000 new homes built, and thousands of new jobs on brownfield land. Does my right hon. Friend agree that that clearly demonstrates that we can build the new homes we need and protect the green belt, and that it is Andy Street who is setting the pace and leading the way in the west midlands?

[Michael Gove]

That is spot on. It is Andy Street and Conservative councils in Walsall, Dudley and Solihull that are delivering houses and protecting the green belt. That is better for economic growth, better for the environment, and better than bankrupt Labour Birmingham.

Leasehold and Freehold Reform Bill

Wendy Morton Excerpts

Report stage
Tuesday 27th February 2024 Commons Chamber

[Wendy Morton (Aldridge-Brownhills) (Con)]

I am really grateful for this news from the Minister. It certainly goes a long way towards addressing my new clause 13. He speaks specifically about banning leasehold sales of new houses, but what consideration will he give to extending that ban to leasehold flats? I know that that is a concern for a number of us on both sides of the House.

[Lee Rowley]

I know that my right hon. Friend has campaigned extensively for the ban on leasehold houses, as many in this Chamber have done, and she has spoken up in this place on the issue before. I am grateful for her support for it. She also rightly talks about the extensive debate about the potential extension of the ban to flats. The Secretary of State has said at this Dispatch Box on numerous occasions that the Government remain keen to make progress on finding an alternative workable solution to leasehold flats—most people in this place recognise that that will probably be commonhold—and work will continue on that. We hope to make further progress on that in the future—

--- Later in debate ---

[Lee Rowley]

I am very happy to write to the hon. Gentleman about the specifics.

In addition to the building safety measures and the ban on new leasehold houses, the Government have tabled a number of consequential amendments to refine and improve the Bill.

With the leave of the House, I will mention three key issues among the many that were brought to our attention in Committee. I understand these issues will be subject to further debate today, but I want to acknowledge that they are: capping existing ground rents, which has already been raised; leaseholder forfeiture, which I know will be raised; and support for the residents of freehold estates, which has already been extensively addressed.

I know that Members will have questions about the Government’s plan to address ground rents, and we have consulted on introducing a cap on ground rents in the Bill. We extended the consultation on request and, as a result, we are still considering our next steps. We will say more shortly.

[Wendy Morton]

The Minister is generous in giving way. Can he give us an indication of the timescale? Many Members will be interested to know the answer. And does he anticipate being able to introduce something when the Bill reaches the other place?

[Lee Rowley]

Although I cannot give the specific assurances that my right hon. Friend seeks, we are trying to work through this at speed. We recognise that it is an important issue, and we recognise that it is vital to today’s discussion. I know that hon. and right hon. Members will recognise that this is a hugely contested area in which there has already been significant discussion. People have very different views, so we want to make sure that, while we are moving at speed, we take our time so that we reach a conclusive decision through the right methodology and process.

--- Later in debate ---

[Janet Daby (Lewisham East) (Lab)]

I can see that, across the Chamber, there is strong concern for leaseholders who are caught up in very difficult situations. I will first speak to new clause 67, which I tabled after a case came to my attention late last year. I will then speak in support of new clause 5 and amendments 4, 5 and 8 tabled by the official Opposition. These amendments relate to issues that have not been properly addressed by the Government, including forfeiture, the right to vary ground rent to a peppercorn, and deferment rates.

My motivation for tabling new clause 67 stems from what has happened to residents of Lee Court, a purpose-built art deco mansion block in my constituency dating back to the early 1930s. Many will remember the cold snap at the start of the year, when temperatures went below zero and Arctic winds swept across the country. Until mid-January, residents of Lee Court had not had any heating all winter. Furthermore, they did not have access to hot water for weeks and, prior to that, hot water provision was very patchy. This has seriously impacted many vulnerable residents, including the elderly, young families, people with medical conditions and many others.

Leaseholders at Lee Court repeatedly raised these issues with Drivers & Norris, the block’s former managing agent, and Grandpex, the building’s freeholder that has ultimate responsibility for the central heating system, yet little progress was made until it came to my attention and the attention of the national media. The residents’ plight included: a neglected communal area; a door leading to the roof that was hanging off its hinges; broken windows; exposed openings for rodents; weeds and plants growing through the drains; roof leaks; damp, mould and rot in communal areas; and the lack of heating and hot water that I have already mentioned.

Even though my constituents have now taken on the building maintenance and appointed a new managing agent, this situation illustrates the difficulty for leaseholders in securing recourse from freeholders who have responsibility for central heating and other maintenance issues. As a result, my new clause 67 seeks to open up a discussion on how to ensure that such situations never happen again to residents. It would require the Secretary of State to commission an independent evaluation on holding freeholders financially liable for long-lasting central communal heating failures, where the freeholder has a responsibility for this upkeep.

It is important for the Government to know that I am not asking for them to impose measures straightaway, but rather that I want them to pay closer attention to the problem at hand via an independent evaluation. There is clearly something wrong when vulnerable residents are left without heating for months on end despite raising their concerns with the managing agent. The only way they seem to be heard is by going to the media, and that is not acceptable. Residents’ health and wellbeing needs were put at risk by the failure to restore Lee Court’s central heating. The Government have a duty to look at how we can rectify this situation, so that it never happens again. Will the Minister say whether he would like to strengthen the voice of leaseholders? Leaseholders would like that—they need it.

More widely, this overdue Bill is welcome, but the Government’s planned reforms do not go far enough. This is why I particularly support new clause 5 which would abolish the right of forfeiture in respect of residential long leases where the leaseholder is in breach of covenant. I have heard the Minister say that the Government are working on this and will be looking at the issue, but the Law Commission proposed a repeal in 2006 and there has been no action to progress this for some 18 years.

Additionally, amendments 4 and 5, on deferment rates, are very important, because during a housing and cost of living crisis, with many families struggling to get by, it is important for leaseholders to acquire their freehold or extend their lease at the lowest possible cost.

Lastly, amendment 8 is important, because we must ensure that all leaseholders, not just those with residential leases of 150 years or over, have the right to vary their lease to replace their rent with a peppercorn rent. That is because the most common forms of lease are those of 90, 99 and 125 years, and so the Bill, as it stands, will mean that leaseholders with the most common forms of lease will not be able to enjoy the right to vary their ground rent to a peppercorn.

In conclusion, in contrast to the Government’s approach, a Labour Government will enact the Law Commission’s recommendations in full. Labour will make commonhold the default tenure for all new properties, in order to reform the leasehold system fundamentally and comprehensively. In my constituency, what has happened to the residents of Lee Court shows that the current leasehold system is not working. I suggest that the Government accept my new clause, as well as the Labour amendments.

[Wendy Morton]

I rise to speak to new clauses 13, 23 and 41, which stand in my name. I wish to place on record my thanks to those right hon. and hon. Members who supported me with my amendments and to the Public Bill Office for assisting with advice on their drafting.

Today’s Bill is important and I think we would all agree that it is long-awaited. I spoke on Second Reading, when I declared that I, like probably many others here, am one of almost 5 million leaseholders in this country. I am also one of the many who has gone through that awfully stressful process of extending a lease—that was prior to my being an MP. What I have learnt since becoming an MP is that the issue of leasehold affects not just London and our great cities, but constituents in places such as Aldridge-Brownhills. It affects people who have bought a house on a leasehold basis and many apartment blocks that were built perhaps 20 or 30 years ago. That is why I have taken such a keen interest in this piece of legislation. Buying a home is the biggest financial commitment that most people will make in their lifetime, but they are probably unaware of some of the complications they may experience later down the line.

I raised many questions on Second Reading and I wrote to the Secretary of State. My hon. Friend the Minister has been very engaged with me, but I gently say to the Department that a bit more engagement with Back-Bench Members would help enormously. That said, I am clear that I want the Bill to succeed, although in common with many other hon. Members I still believe it could and should go further. I will not push my amendments to a vote today, but I want to make a few points in relation to them.

On new clause 13, the prohibition on new leasehold homes within three months of the passage of the Act, I appreciate and welcome what the Minister said from the Dispatch Box. The Government have long been committed to the provisions in that new clause and I have sought clarity about what exactly they intend to do. I have heard welcome news today, but I will continue to press the point about commonhold because that matters. Moving forward, if we are to continue to look at this legislation and get it through this place, we will have to revisit this topic to ensure we get the best for our constituents, whatever type of housing or home they live in.

New clause 23 seeks a report on disadvantage suffered by existing leaseholders. In effect it was the sunset clause I referred to on Second Reading. The extent of the number of leaseholders who started the process of extending their lease during the passage of the Bill and the impact on them is unclear. Many will have been waiting to see the outcome of this legislation. Quite feasibly, that group will include people who have been forced to extend their lease in order to sell their home because, as we know, it is very difficult, if not impossible, to get a mortgage on a short lease. I am certain some leaseholders will not have been able to wait for the Bill to reach Royal Assent. Such leaseholders risk being seriously disadvantaged, so new clause 23 would take steps to assess and remedy any unfairness by considering issues such as marriage value, legal costs and other charges. I do not think we fully appreciate the size of this group compared to the number of people who will extend their leasehold after Royal Assent.

Similarly, new clause 41 seeks to redress the imbalance and unfairness of marriage value for those leaseholders who extended their leases many years ago or prior to the Bill passing through this place. By seeking to produce a report on disadvantage due to payment of marriage value, I hope we can better understand the extent of some of challenges around a system that, as we have heard today, is feudal, difficult to navigate and has disadvantaged many leaseholders over the years. It is important that we do not lose sight of the need to address the issue of marriage value.

The fourth area of concern is ground rent. I did not table an amendment on this issue but I will touch on it again. Many colleagues on both sides of the House have mentioned it. The Minister was clear in his response to me, but we need to continue to push forward for change.

I will support the Bill and I welcome the steps that have been taken. However, from the many examples that colleagues on both sides of the Chamber have highlighted today and the examples we have all seen sent to our inboxes by constituents, particularly around the challenges of service charge, it is clear that we need to go further. I will continue to gently nudge the Minister; he is nodding his head. He does a really good job and I am certain he gets the issue, but let us continue to work together for the benefit of our constituents.

[Mr Deputy Speaker (Mr Nigel Evans)]

I have nine Members trying to catch my eye, so if people speak for about five minutes, that will allow everyone to get in roughly equally. There has been some slippage, I can see that.

Long-term Plan for Housing

Wendy Morton Excerpts

Tuesday 19th December 2023 Commons Chamber

[Lee Rowley]

My hon. Friend is absolutely right. That is one reason why we have been clear with a number of councils today that they need to get on with things. The whole point is that we put in place a process and a system that work and, for those actors that do not go through it, there are consequences.

[Wendy Morton (Aldridge-Brownhills) (Con)]

In constituencies such as mine, the green belt is vital to protecting us from the urban sprawl of Birmingham, so I welcome the statement, so far as it goes with its protections for the green belt. However, can the Minister provide greater clarity on the matter of targets? It would be very helpful to have a clear understanding of what is meant by the advisory starting point and its impact on any ongoing mechanisms to impose the quotas of other authorities on a neighbour.

[Lee Rowley]

On my right hon. Friend’s second point—I am grateful to her for raising it—the duty to co-operate has been superseded. The point of the advisory starting point is to be very clear that individual circumstances might apply within the context of the need to build more homes in the right place. I cannot pre-empt or suggest exactly what that will mean in all instances. There is an example in the NPPF of where we think that is likely to be relevant, but obviously that will be discussed on a case-by-case, council-by-council basis.

Leasehold and Freehold Reform Bill

Wendy Morton Excerpts

2nd reading
Monday 11th December 2023 Commons Chamber

[Wendy Morton (Aldridge-Brownhills) (Con)]

There is much to welcome in the Bill. It is all too easy to believe that leasehold affects only London and the larger cities across the country, but that is not so. In the past 30 to 40 years in particular, many more properties have been built on a leasehold basis. Many leaseholders are now facing the dilemma of whether to extend. It is estimated that there are 4.98 million leasehold properties, equating to 20% of the housing stock. That includes properties in my constituency, and I have raised the matter in the House previously. I also have a personal interest as a leaseholder. Many years before coming to this place, I had the unpleasant experience of extending our own lease. The Government made good progress with the Leasehold Reform (Ground Rent) Act 2022, which limited ground rents to a peppercorn on all new leases. The Bill that we are considering today does not include the same limitation to protect existing leaseholders from onerous and potentially very expensive ground rents. Without that, up to 4.98 million homeowners will be left saddled with unfair ground rents.

My right hon. Friend the Secretary of State, who is no longer in his place, said that

“liberating leaseholders forms a vital part of the government’s long-term plan for housing.”

We cannot have a situation in which we are liberating future leaseholders while leaving existing homeowners trapped. This is an urgent problem. The Government’s own consultation in 2017 identified it as a trend leaving leaseholders facing significant and unsustainable increases in ground rents, which often affects the saleability of their homes, so I hope it will be addressed.

On new leasehold houses, I welcome the Government’s commitment to ending the creation of new leasehold houses. It is time we moved on from what other hon. Members have also described as an archaic system that holds homeowners back. However, I was concerned that measures to do that have not appeared in the Bill as drafted. My understanding is that the Government intend to bring forward amendments for that purpose, but I would also like an assurance from my hon. Friend the Minister at the Dispatch Box that that will be the case.

I am also concerned that new leasehold houses may still be permitted under exceptional circumstances. I ask my hon. Friend the Minister to tell me exactly what those circumstances cover, and to assure me that safeguards will also be put in place. We need to ensure that that exception is used sparingly, if at all, and does not become a loophole for developers who simply wish to push more leaseholds in through the back door.

Turning to the extension of existing leases or the acquisition of freeholds, an important and necessary part of the proposed changes will be the extension of the lease, with a new standard 990-year lease with zero ground rent. The removal of the marriage value from the premium calculation is also welcome and much needed, and potentially represents a fair and equitable change for leaseholders. As you may recall, Mr. Deputy Speaker, I raised my concerns in the debate on the King’s Speech that those reforms are long overdue. I am disappointed that they have come forward so late in this Parliament, especially when we promised reform as far back as February 2017.

I for one would not want to see current leaseholders, who have no choice but to renegotiate their current leases now, unfairly left out in the cold by our legislating so late in this Parliament. I therefore ask the Minister to consider a sunset clause in the Bill, to allow anyone who has had to negotiate since the start of the current Parliament to be afforded a right of passage under the reforms to extend their lease to the new standard.

Like my hon. Friend the Member for Redditch (Rachel Maclean), who is no longer in her place, I would welcome the introduction of an online calculator for calculating the cost of an extension. I believe that would make the process simpler and more streamlined for those who are seeking to extend their lease or acquire the freehold. However, it must also be quick and inexpensive for leaseholders to calculate and find out the cost of an extension, because currently that is not the case. Put simply, the current system of using archaic graphs is another way to set the system against the leaseholder—and, sadly, too much of the current system is weighted in favour of the freeholder. That is why this legislation is so badly needed.

The change to ensure that legal costs be shared, as opposed to the current system whereby the leaseholder bears all the costs, is also welcome. We also need to end the weighting of independent arbitration through the Tribunals Service in favour of the freeholder. In considering this Bill, we have the opportunity to shape legislation and create a level playing field for both parties.

On commonhold we also need to do more. Reform would give the leaseholders of flats the right to acquire and manage the common parts of the building. That is potentially a welcome change, provided that protections against the abuse of service charges are in place. However, when it comes to disputes, there is a clear need to revamp the tribunal system. It does not fulfil what it was set out to achieve. The tribunal system was created to strengthen the rights of long leaseholders, and to provide a cheaper and quicker way to resolve disputes, yet in reality it is the antithesis of that.

Leaseholders often avoid the tribunal system altogether, due to fear of becoming liable for the freeholder’s tribunal costs, and regrettably there are many cases where freeholder landlords recruit high-powered barristers and simply pass their fees on to the leaseholders, regardless of whether they win or lose. It is also fair to say that that leads to leaseholders worrying that they will be unable adequately to defend their position on, for example, raising a dispute over unreasonable administration charges. That needs to change. We need a renewed and refreshed tribunal system that empowers and protects leaseholders.

There are additional things that we can also do to see improvements now for those with leaseholds. The right to manage is an important part of our toolkit, and I welcome measures in the Bill to improve that process. The current claims process is complex, and leaseholders can find their attempts frustrated by rogue freeholders who block them from exercising their rights. I would like to see more of the Law Commission’s recommendations implemented, particularly where we can make the process cheaper and less complicated to implement. Let us be bold and include more measures to help our homeowners to take back control.

There is also a strong need for a new regulatory model for managing agents. Under the current system, anyone can become a managing agent, regardless of experience. Unfortunately, many leaseholders report countless problems with their agent, from high service charges to lack of transparency or exclusion from decision making. Of course, there are some managing agents who perform well and choose to sign up to standards of practice, but there are many who do not. This, for me, is a clear case of a moral hazard. It must be addressed, and we have the opportunity to do so through this Bill.

I am pleased that the Government have committed to regulating managing agents through a single, mandatory and legally enforceable code of practice. Managing agents will be required to have a nationally recognised qualification to practice, which will be overseen by an independent regulator. By requiring them to adhere to minimum standards through a professional body, we can expect to see higher levels of professional conduct among all managing agents.

Finally, I want to mention housing associations. I would hope to see under this new legislation a requirement for greater transparency on service charges and the replacement of building insurance commissions for managing agents or landlords, with transparent administration fees, to benefit leaseholders who have exercised their right to buy within the social housing sector and those within the leasehold retirement bracket. Recently, I have come across numerous examples in my own constituency where leaseholders in those sectors have been left with unexplainable and unjustifiable bills—something that this legislation must stamp out.

To conclude, we have an opportunity with this Bill to get rid of archaic processes and systems, to renew and refresh the legislation on leasehold and to create a level playing field. There is much to welcome, but I still believe there is more that we can do through this legislation.

Levelling-up and Regeneration Bill

Wendy Morton Excerpts

Consideration of Lords amendments
Tuesday 17th October 2023 Commons Chamber

[Rachel Maclean]

I have set out that, of course, the planning system puts the environment and net zero at the heart of all its work.

[Wendy Morton (Aldridge-Brownhills) (Con)]

I am grateful to my hon. Friend for giving way. I just want to go back to the point about the Government coming forward with the NPPF. She indicated that it would appear very quickly after Royal Assent. Presumably the Bill will receive Royal Assent very quickly, so surely that piece of work must be almost ready. Why can we not see it sooner rather than later?

[Rachel Maclean]

My right hon. Friend is absolutely right. We very much hope we will, with the consent of the House after these debates, see the Bill receive Royal Assent. We are working at pace to bring forward the long-awaited detail that she and others are rightly pressing for.

--- Later in debate ---

[Dr Fox]

It is an absolute pleasure to follow the hon. Member for Somerton and Frome (Sarah Dyke). We have all been through either the thrill or the ordeal of our maiden speech, and many of us will look back with different emotions—pride, affection or regret. Hers was certainly one to be proud of. I am sure that the whole House will recognise that we have in her a Member of great calibre when it comes to speaking in the House. She paid a very generous tribute to her immediate predecessor, which I am sure many of us would echo. She spoke in staunch defence of the cider industry, which is perhaps one area in which I can genuinely offer my personal help for the profitability that she seeks. She set out a wide range of rural matters that are extremely important to those of us who represent different parts of Somerset.

The hon. Lady, in placing herself in context with a range of well-known predecessors from the part of the country that she represents, who were accomplished in different walks of life, demonstrated a lack of self-absorption that she will find somewhat rare in the House of Commons. I hope that she retains the refreshing self-effacing attitude that she brought to the House today. In the light of her top-to-bottom description of her constituency, if she were ever to leave this House, voluntarily or involuntarily, she is certainly likely to get a place on the Somerset tourist board.

I thank all those who brought the Bill this far. During her speech, the Minister referred to local plans, which are extremely important for my constituency. She said that it is not just the assessed housing need that matters but how much of that need can be accommodated in any one area. That matters hugely to a number of us. In North Somerset, for example, 40% of land is green belt, 30% is floodplain and 12% is in an area of outstanding natural beauty. One reason we are so delighted that the Government are abolishing the national housing targets is that they cannot be applied equally to areas with a lot of land that can be built on and areas where there are natural constraints. Such constraints are imposed by Government, who say, “You cannot build on green belt and you cannot build on floodplain.” It makes a lot of sense to hand the power back to local areas so that they can make decisions for themselves.

The removal of the five-year land bank is also an important increase in freedom for local authorities. I am delighted that, throughout the passage of the Bill, including in the other place, the Government put the protection of the green belt at the centre of what they were doing to stop urban sprawl—which, of course, we face in North Somerset as we are so close to Bristol—to protect our environment, as has been mentioned in relation to a number of issues, and to stop inappropriate development. That is likely to become an important election issue given that the Labour party has said that it will build on the green belt, and the Liberal Democrats have said that they will reintroduce national house building target numbers if they are able to do so.

I echo what a number of my colleagues said about encouraging nature recovery strategies in the amendments, as well as about banking hubs, which have been raised on a number of occasions. It is important in rural areas and small towns, particularly for the elderly, for those who are not necessarily computer-literate, and for those who find it difficult to travel, that we maintain some form of connection with traditional banking. I fully accept the Minister’s argument that these are market decisions to be taken by individual banks, but we cannot have banking deserts when our constituents need access to banking services.

[Wendy Morton]

We often think about rural communities when discussing banking hubs, but my right hon. Friend’s point about banking deserts is equally important to constituencies such as mine, which now has only one bank left. Some in the banking sector think it is fine for my constituents to have to drive into Walsall or Sutton—it is not.

[Dr Fox]

My right hon. Friend makes an important point. It is incumbent on us all to work with Government and the banking sector to ensure that our constituents have access. She makes a good point: the lack of access was previously more pertinent to rural locations, but then it applied to smaller villages, then smaller towns, and now even larger towns face the situation that she describes.

I wish to make two points to the Minister, one of which I raised during an intervention when I asked, “When will we see the new NPPF?” She indicated that we will see it as soon as the Bill receives Royal Assent. I hope that means that we will have the new NPPF by the time we get to Prorogation, which is not far off. I am sure that we will all hold the Minister to account for the very welcome timeline that she placed on that today.

I would like the Minister to consider one issue above all else, and to respond to it during the debate. There will be a hiatus between the passage of the legislation and its implementation date, but planning permission requests for housing developments will still be made. Will the Minister make it clear that the Planning Inspectorate needs to take into account this legislation, rather than the previous NPPF, when considering such planning applications? It would be quite wrong and profoundly undemocratic if both Houses produced legislation along the lines that the Government have proposed but planning inspectors applied an older version of the NPPF, thereby allowing planning applications that are clearly against the expressed will of Parliament to be approved. We cannot have unelected inspectors making decisions against what this Parliament has clearly decided. I hope that the Minister will give an assurance in her wind-up that, for any planning applications in that hiatus, instructions will be given to the planning inspectorate that it is expected to follow what the Government have set out in the legislation.

[Daisy Cooper]

First, I associate myself with the remarks of the Father of the House, the hon. Member for Worthing West (Sir Peter Bottomley). I agreed with almost all his points, including on having the right measures in place to stop opportunistic developers, on supporting virtual meetings of local government, and especially on leaseholders.

May I reiterate my support for some of the comments made by the right hon. Member for North Somerset (Dr Fox), particularly his call for a timeline for the national planning policy framework update? The Minister will be aware that I have tabled a number of written questions asking her to clarify for the record the status of that consultation. She has very kindly confirmed that it is just a consultation. There is a lot of confusion among my constituents, who believe that the NPPF has already been updated when it has not. I therefore associate myself with the other Members across the House who want to see the NPFF updated—in the Minister’s words—“as soon as possible”.

I rise to oppose the Government’s motion to reject Lords amendment 82, on planning application fees. Ministers will know that I originally tabled this amendment to the Bill 11 months ago, and in March I also tabled a presentation Bill that would have had the same effect. I had a number of meetings with the Minister to explain the reasoning behind this amendment.

My amendment, ultimately, is very simple. At the moment, a Government-imposed cap on planning fees means that local authorities cannot charge big developers the true cost of processing their applications, and the result of that is scandalous. In 2020-21, council tax payers across England effectively subsidised big developers to the tune of almost £2 billion. In St Albans district alone, the figure was a shocking £3.2 million. That’s right: during the biggest cost of living crisis in recent history, taxpayers in St Albans district are subsiding big developers to the tune of £3 million a year.

The Government themselves have recognised this problem. They have run a consultation and agreed to raise the cap on planning fees, but they still refuse to scrap it altogether. According to a “Dear colleague” letter that was circulated yesterday, the reasons are twofold. The first is that the costs might become inconsistent between local authorities. All I would say to that is that planning fees are less than 5% of all professional fees, and that would not cause a huge problem. The second argument is that it would not provide any incentives to tackle inefficiencies in planning departments. I think it is fair to say that local authorities are not awash with cash at the moment, so that is a pretty spurious argument.

The fact is that planning services up and down the country are operating on a shoestring. Funding cuts mean that in many cases, planning departments can no longer even meet their statutory time limits to determine planning applications. Developers and householders find their proposals delayed, in some cases for many months, as councils lack the resources to process them. The Local Government Association says that the current Government caps are

“resulting in significant capacity and skills challenges”

and “undermining” councils’ ability to deliver the quality housing and infrastructure that communities desperately need. It also says that

“councils must have the ability to set planning fees at a level which cover the true costs of processing applications”

if they are to improve the system to the benefit of both communities and developers.

This amendment would allow local councils to put an end to developer subsidies and take steps to pass on the costs of planning applications to those who submit them. Let us look at one specific example. As it stands, a multibillion-pound developer with an incredibly complex development is not obliged to contribute any more than £116 to have each of its planning conditions discharged. In 2014, the Conservative Government decided that a freight terminal the size of 480 football pitches should be built in my constituency of St Albans.

Where the Government decide to build a big piece of infrastructure in a constituency, it is up to the developer to decide whether it wants to enter into a voluntary planning performance agreement and to agree to pay non-statutory fees—effectively volunteering to pay additional fees—for the delivery of a larger site. Some developers do enter into such agreements, but some do not, and there is currently no obligation for them to do so. Where they do not, there are considerable resource implications for local authorities that are trying to discharge planning conditions imposed by Whitehall. Many constituents can face years of misery and chaos due to the construction of a large site and end up paying the developers’ planning costs. It is absurd, and it is unfair.

This vast underfunding also leaves effective planning enforcement activity a distant memory for most people in England. I am sure colleagues across the House will recognise that portrait. What is more, as planning departments across the country struggle with fewer qualified planning officers, developers and applicants say they are willing to pay what it costs to ensure they get a better service. In the light of big developers being prepared to pay this money, it is inconceivable that the Government would tie local authorities’ hands behind their backs by rejecting the amendment.

Government’s refusal to allow local councils to pass on the true costs to developers is lumbering local people with poor planning services and delaying the delivery of sustainable housing, with unscrupulous developers not brought to account for breaching planning conditions in a timely way. All the while, local residents are subsidising big developers. There is no excuse for that to continue. I urge Members across the House to support Lords amendment 82 and oppose the Government’s attempts to vote it down.

[Wendy Morton]

There are many amendments to consider this afternoon, but I assure you that I will keep my comments very brief and specific, Madam Deputy Speaker. I rise to speak about Lords amendment 44, which was clearly designed to address what some of us see as a deficit when it comes to scrutiny.

--- Later in debate ---

[Wendy Morton]

rose—

[Rachel Maclean]

I am supposed to be winding up, but I will take one final intervention.

[Wendy Morton]

I am grateful and will be brief. During an earlier intervention, I asked the Minister for clarity on the specific question of the duty to co-operate. Can she give me that clarity before she winds up?

[Rachel Maclean]

I can confirm for my right hon. Friend that we will scrap the duty to co-operate for the reasons that she mentioned. We will consult on how we expect local authorities to work together. I urge her to work with us and to contribute to that consultation when we bring it forward in due course.

The Bill devolves powers to all areas of England, modernises the planning system and strengthens environmental protection. We have, of course, heard hon. Members’ points, which we will consider carefully as the Bill completes its passage. The Government are on the side of the builders, communities and homeowners —present and future—across our country. I commend it to the House.

Amendment (a) made to Lords amendment 117.

Government amendments (b) to (d) made to Lords amendment 117.

Lords amendment 117, as amended, agreed to.

After Clause 214

Power to replace Health and Safety Executive as building safety regulator

Amendment (a) proposed to Lords amendment 231.—(Rachel Maclean.)

Question put, That the amendment be made.

Leasehold Reform

Wendy Morton Excerpts

Tuesday 23rd May 2023 Commons Chamber

[Wendy Morton (Aldridge-Brownhills) (Con)]

I think for many years, many of us thought leasehold was an issue affecting London and other cities across the country, where there are big blocks of flats, mansions and apartments, but that is not the case. In the past 30 or 40 years, many properties have been built on a leasehold basis. In fact, in 2020-21 there were an estimated 4.86 million leasehold dwellings in England, equating to 20% of the English housing stock. Of those 4.86 million, 2.82 million, or 58%, were in the owner-occupied sector and 1.79 million, or 37%, were privately owned and let in the private rented sector. The remainder were owned by social landlords.

That gives an indication of the size of the sector and the number of constituents who could be affected. My office undertook research and found that in the west midlands, 5.7% of houses and 56.4% of flats—or the equivalent of 14.4% of the total dwellings in our region—are leasehold. In my constituency we have many residents and homeowners who have contacted me to raise this issue. One of the things that concerns them most is the uncertainty about what is happening and when. They need some clarity and they need it soon.

I have casework relating to a number of leasehold properties, both apartments and houses. I am sure Ministers will have seen some of my casework of late; I must admit that I regularly put in parliamentary questions asking for an update on the leasehold reform Bill and I will continue to do so. I can see the Ministers on the Front Bench nodding, and I know they take the matter seriously.

In our manifesto, we included a pledge that we would continue our work on reforms to leasehold, including implementing our ban on the sale of new leasehold homes, restricting ground rents to a peppercorn and providing necessary mechanisms of redress for tenants. I welcome the progress to date, particularly the Leasehold Reform (Ground Rent) Act 2022, which put an end to ground rent for most new long residential leasehold properties, but we must keep it going.

My reason for speaking in this debate is to highlight the cases in my constituency, not only so that my constituents know that I am raising those issues in this place, as they would expect me to, but to nudge my right hon. and hon. Friends on the Front Bench to continue to take this issue seriously. We know that the formal process of extending a lease must be made easier and cheaper. I suppose I must declare an interest here, Mr Deputy Speaker, because before coming into this place, I went through the really painful process of trying to extend the leasehold on our apartment. It is not something I would want to go through again in a hurry.

Why do we need to speed up progress? Doing so would help to remove the uncertainty that constituents such as mine face, especially since the problem becomes more and more apparent with every year that goes by. For every extra year that reform takes, more people will face the dilemma: “Should I extend or should I not? Should I wait for action or should I take action now? Will it cost more now or will it cost more later down the track?”

As a lease reduces, there is a question of the impact on sales and mortgages. That is another question I am regularly asked, because the shorter the lease, the more difficult it is to get a mortgage and the more difficult it can be to sell a property. Most lenders will not lend on properties with a lease under 70 years and will want the lease to be extended for at least 40 years after the end of the mortgage term.

As I mentioned earlier, the process of negotiating a leasehold extension and working through the whole process of marriage value is anathema to most people. I had no clue about it until I started going down that track, but people have to engage two sets of solicitors and pay for both of them, and it can be difficult and stressful. Obviously, when they have gone through it, they have the benefit of having extended their lease, but it is time that we continued to make some progress on this issue.

On the broader point, as we have heard from others today, there are questions to be addressed about the need to ensure the independence of legal advice. That is something else that constituents have raised with me, because there are developers who suggest using a certain, supposedly independent, legal adviser. That cannot be right at all.

In short, for too long leaseholders have really felt that they are being held to ransom by freeholders. They are being left to pay unjustifiably high ground rents, exorbitantly high costs for leasehold extensions and management charges that go up and up, and they have very little control over or input into them.

My request in this debate is simple. Can the Minister in her winding-up speech confirm—I believe it is true, but I would like to hear it from the Dispatch Box today—that the Government remain committed to making the leasehold reform changes that constituents such as mine in Aldridge-Brownhills and right across the country so badly need and deserve? Can we get a move on with it, and see some progress this year?

Oral Answers to Questions

Wendy Morton Excerpts

Monday 27th March 2023 Commons Chamber

[Michael Gove]

Talking of the same coin, we have the same coins in England and Scotland because we are one United Kingdom, and it is the SNP that wants a separate currency for Scotland as part of its plans for separatism. I have to say that there are excellent SNP councillors in Scotland, but they are being let down by the Scottish Government. The hon. Lady is absolutely right: the Convention of Scottish Local Authorities is up in arms at the way in which the Scottish Government have undermined local authorities, in contrast to here in England where we are working in partnership with local Government to devolve more power to the frontline. I refer the hon. Lady to the paeans of praise for our approach that we had from Labour leaders of local government just last week. In contrast to that, I am afraid local government in Scotland has been let down by the SNP. It was a key feature of Kate Forbes’s leadership race that she said more powers should be devolved within Scotland, and I hope the new First Minister will take note.

[Wendy Morton (Aldridge-Brownhills) (Con)]

5. What steps he is taking to build new homes on regenerated brownfield land.

[Vicky Ford (Chelmsford) (Con)]

9. What steps he is taking to build new homes on regenerated brownfield land.

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

This Government are committed to making the most of brownfield land. The national planning policy framework sets out that planning policies and decisions should give “substantial weight” to using suitable brownfield land, and through our brownfield funds we are investing significantly in supporting redevelopment and release of brownfield sites for housing. We have also committed to launching a review to identify further measures that would prioritise the use of brownfield land.

[Wendy Morton]

Under the leadership of West Midlands Mayor Andy Street and Conservative councils such as that in Walsall, we are demonstrating the value of regenerating brownfield land to create the homes we need while regenerating communities and protecting precious greenfield in areas such as mine around Streetly and Aldridge. I welcome the £100 million deal we received as part of the trailblazer devolution deal, but will my hon. Friend continue to look at the possibility of creating a register of brownfield land, as a further tool to deliver a brownfield-first approach?

[Rachel Maclean]

I thank my right hon. Friend for her consistent advocacy in championing this vital issue. That is absolutely what the Government are doing. We are introducing a number of measures, as she set out, to support that brownfield-first approach, including requiring every local authority to publish a register of local brownfield land suitable for housing in their area.