Grenfell Tower Fire
Debate between Andy Slaughter and Karen Buck(5 years ago)
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Ms Karen Buck (Westminster North) (Lab)
I congratulate my hon. Friend the Member for Kensington (Emma Dent Coad) on securing the debate and on the work she has championed since she was elected. She was plunged into this catastrophe just days after being elected—probably one of the biggest challenges any Member of Parliament has had to face. She knows how much it matters to me, too. My previous constituency boundary included Grenfell Tower. As the neighbouring constituency, many residents in my constituency watched in horror from tower blocks around Harrow Road as the fire claimed those lives. The trauma affects my constituents, too.
The night that Grenfell burned and 72 people died in a modern, refurbished tower block, at the heart of one of the wealthiest communities in one of the most prosperous cities the world has ever known, is seared into our national consciousness. It is a defining moment of modern British politics. It should have been the event that changed everything. It should have brought about a wholly new attitude to housing, social housing and meeting housing need, the duty of care we have to people in high-rise accommodation, risk and deregulation in housing. I let myself believe that that would be true. It should have been a defining moment and it has not been.
Of course, some action has been taken, as my hon. Friend the Member for Sheffield South East (Mr Betts), the Chair of the Select Committee, said: the inquiry is under way; we have had the interim report from the Hackitt review; and the Government have today launched a consultation. I am grateful for the fact that the Government backed my private Member’s Bill, the Homes (Fitness for Human Habitation) Act 2018, which allows tenants legal recourse when their homes, including the common parts of flats, are unfit and threaten their health and safety. That includes fire risk. We have also had the £200 million fund for cladding removal in private blocks.
What has not happened, however, is a seismic shift in attitude and action from the Government. That falls into two parts and I will briefly refer to both of them.
The first is the meeting of housing need relating specifically to Grenfell. On the day after the fire, we convened in Westminster Hall—Parliament was still prorogued; it was just after the election—and a number of us spoke to Ministers about the aftermath. I recall saying to Ministers that one of the things that needed to be understood was how many of the residents in Grenfell Tower and around Grenfell had direct or close experience of homelessness, and how critically important it was that immediate action was taken to provide permanent accommodation for them. In addition to the trauma of the fire, the dislocation of moving from one home to another and the experience of being in emergency or temporary accommodation would only compound what they had experienced. I remember placing that in the context of rising homelessness across London and the importance of not making other vulnerable families in housing need wait longer for a home because of the demands posed by Grenfell. Heads nodded.
We know now, two years later, that not all those housing needs have been met. Of the 202 households from Grenfell, 14 remain in temporary accommodation. Of the 129 evacuated from the wider area, 41 are still in temporary accommodation. That is unacceptable. It sits in the wider context of homelessness across London, which is detailed, as my hon. Friend the Member for Kensington said, by the Shelter commission. That should also have been a wake-up call and a demand for immediate action to tackle housing need.
We have seen very little action. There has been a collapse in social housebuilding under this Government. It was inadequate beforehand—I am happy to say that—but there has been a collapse since then, with record lows in housing delivery and an acute homelessness crisis. The needs of the Kensington and Grenfell families should be seen in that context. In a new era for social housing that Grenfell should have generated, we have not seen action from the Government.
The second legacy, as we have heard, is the Government’s commitment that such a catastrophe should never happen again and that people should not fear that it will happen again. They should not live under the shadow of safety concerns in their own blocks, yet two years on that is exactly where we are. We know that 60,000 people live today in blocks with potentially dangerous cladding. We know that eight out of 10 of the blocks that had cladding have yet to have it removed. We know that 16,400 private apartments are wrapped in potentially dangerous cladding. In a question to the Mayor of London two weeks ago, Assembly Member Andrew Dismore found that London Fire Brigade paid 1,200 visits to high-rise premises with suspected flammable cladding, of which 316 confirmed flammable cladding. That is at its most acute in three boroughs: Tower Hamlets, where there are 65; Greenwich, where there are 45; and my own borough of Westminster, where there are 26.
The £200 million the Government recently announced is welcome—it came just under the wire for the second anniversary—but it is clearly not enough to ensure that either the ACM cladding blocks or those in potentially non-ACM flammable cladding can be dealt with.
We have heard from the Select Committee about the generally deregulatory attitude of the building industry. It was very, very concerning to see a survey in Building, which showed how little the business industry had risen to the challenge of safety concerns and how little change there has been in the way it works.
Andy Slaughter (Hammersmith) (Lab)
My hon. Friend is absolutely right that the industry has not taken responsibility. It is a shame that past Ministers are on record as putting the onus on industry, saying it is not for the Government to regulate but for the industry to self-regulate. Does she agree that we have to end that, and that if industry will not take responsibility the Government will have to act?
Section 21 Evictions
Debate between Andy Slaughter and Karen Buck(5 years, 6 months ago)
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Ms Buck
It is very much a concern. I will come on to retaliatory evictions in a minute when I talk about why we are concerned about the use of section 21 and the balancing alternatives.
Abolishing section 21, which my remarks are aimed at, would, in practice, make fixed-term tenancies irrelevant. I know that the Government are also interested in, and have consulted on, longer tenancies, in order to provide greater security in the private rented sector. Although I am sympathetic to that idea, I am increasingly of the view that, rather than adopt an arbitrary target for the length of tenancies, we should change the framework completely and ensure that the default is a longer tenancy, unless and until the landlord has a legitimate need to recover the property or if there is a fault on the part of the tenant. However, as I will remark later, that must be balanced with other changes that meet the legitimate concerns of landlords.
Why do we need to change this framework? A Conservative Government introduced section 21 of the Housing Act 1988 as part of a deregulatory approach to the housing sector, at a time when the private rented sector was in a very different place from now. It had been in long-term decline over a great many decades, and the Government felt that deregulation would be one way to boost it. Indeed, the sector has been utterly transformed from the landscape we saw 30 years ago, doubling to 4.7 million households. That is by no means solely the result of deregulation; the obvious decline in the social housing sector and the crisis in the affordability of home ownership are also important factors.
The sector also now has a very different profile, compared with a few decades ago. For many of us, renting was a transitional housing tenure. When starting out in life, many of us rented privately—I certainly did for several years—but often on the way to home ownership. Very few of us, particularly those who were bringing up families, expected or wanted to be in the private rented sector for life. However, we are now seeing a change in that profile, with four in 10 private renters now families with children. The recent Rugg review demonstrated that the private rented sector is also home to a growing proportion of highly vulnerable tenants who have been discharged into the private rented sector who would previously have been accommodated through the homelessness route. We are also seeing, inevitably, an increase in the number of older tenants who expect to live out their retirement in the private rented sector, which was extremely unusual at the time of the 1988 Act.
If the sector has changed beyond recognition, policy towards it must also change, to address some of the unforeseen consequences of those developments and to make sure that the sector works well and fairly for both tenants and landlords. A healthy rental sector is important for the housing mix, and it is important to acknowledge its flexibility, often as a starter accommodation. It is also absolutely essential to recognise that most landlords are good and responsible and provide a decent quality of accommodation.
Andy Slaughter (Hammersmith) (Lab)
My hon. Friend is right that most landlords are responsible, but that is not really the point. The point is that the 1988 Act, and section 21 in particular, allowed housing to become a commodity. Landlords can simply treat it as an asset to be traded and sold to increase their profits or income. Housing has no structure as a home under that Act. That is the basic flaw.
Ms Buck
That is absolutely right. It is important to address the points from landlords. Having seen some of the concerns expressed by landlords in the social media commentary in the build-up to the debate, and having spoken at the Residential Landlords Association conference and at other conferences, one hears from landlords that they feel unfairly treated and tarred with the same brush as the rogue minority, which I think is probably fair. Unfortunately, the rogue minority bring down the sector as a whole. However, addressing section 21 is not about the behaviour of the small minority; it is about recognising that there is now a structural imbalance in tenancies that unexpectedly provide long-term homes for a much wider spectrum of society than was previously the case.
Ms Buck
That point is absolutely central to the argument, and I will come to it in a minute.
On the point about the behaviour of a minority of landlords not doing a great deal for the cause of the majority, there was also on social media the letting agent who said in respect of the payment of a tenant’s renewal fees:
“As far as I can see if the tenant doesn’t pay the renewal fee, DON’T renew the tenancy. Simples… You could always serve S21 and replace them.”
That cavalier attitude to security of tenure is completely unacceptable, but we have a legislative framework that allows a number of landlords to behave in that way. I say to people who are doing that, “Guys, you are really not helping your own cause or the cause of the business sector for private rented tenure, and I would advise you to think very carefully about the way you express yourselves.”
What has happened to the use of section 21 over time, and why do we need to consider our longer term approach? It is extremely hard to obtain accurate information from landlords about their use of section 21 notices, and the large majority of tenants who leave assured shorthold tenancies do so after the service of a notice without court proceedings. I think that in the private rented sector debate last week the hon. Member for Harrow East (Bob Blackman) said—I believe this to be true, and have seen anecdotal evidence that it is true—that there are landlords who issue section 21s routinely at the end of a six-month period in order to be prepared for exercising those rights at the end of 12 months. That builds in to tenants’ experience instability of exactly the kind that hon. Members have mentioned today.
The actual number of section 21 notices served is unknowable. However, we know that in 2017 there were 21,439 possession claims under both section 8 and section 21 and 6,260 actual possessions, and a further 29,601 claims and 12,953 possessions under the accelerated procedure. That is a lot of uses of section 21.
We also know from Government homelessness statistics that the ending of a private tenancy on a no-fault basis has become the single largest cause of homelessness, currently representing more than half of all homelessness applications. That is critical. An analysis by Generation Rent claims that 92% of the rise in homelessness cases caused by the end of a private tenancy in London, which of course has the largest share, regionally, of national homelessness cases, can be explained by no-fault evictions. The figure is only slightly lower—88%—outside the capital.
Andy Slaughter
The major trauma, of course, is for the tenants being evicted, but there is also an impact on local authorities, because if a landlord is using the section 21 process—often the notices are served at the beginning of the tenancy as protective notices—they are simply using it as a way of regulating their business, knowing that if the tenant is in priority need, they will be picked up in some way by the local authority, which obviously puts additional costs on the taxpayer.
Ms Buck
Of course it does. As we have been discussing in the context of the Homelessness Reduction Act 2017, local authorities, because of the sheer pressure of homelessness applications, are also expecting tenants to wait until the court order has been issued and to wait until the bailiffs have been instructed and a date for the bailiffs to arrive has been received before they will consider the homelessness application. Landlords hate that, and one can understand exactly why—because of the insecurity about what happens to their rental payments. But the tenants absolutely loathe it and find it wholly traumatic to have to wait, often with their children, for the bailiffs to turn up before they can be rehoused by the local authority.
Research by the Joseph Rowntree Foundation last year found that the number of private tenants being evicted had risen by one fifth, that the overwhelming majority of the increase in possessions was driven by section 21, and that that was highly concentrated, with four out of five such repossessions being in London and the south-east, where rents are highest. It is precisely that concentration of section 21 use in certain areas correlating with the areas where market rents have risen most rapidly that I think is a real cause for concern.
The London boroughs identified by the Joseph Rowntree Foundation were all in the top 10 for the largest and fastest market rent increases from an initially low level. Although correlation must be treated cautiously, it is hard not to conclude that there is causation between increases in market rent levels and the use of section 21, whether that involves evicting tenants in rent arrears because of high rent levels, or evicting tenants in order to raise rents.
If anything, the flattening off of possession claims over the period 2015 to 2017—that has flattened from a period when it rose very steeply—has happened at a time when the private rental market has been under pressure from several other directions. It tends to reinforce the point that section 21 use reflects wider trends in relation to rents and that, crucially, we cannot stop worrying about it because there has been something of a flattening off in the last couple of years. If anything, now is the moment when we need to review the law, because if rents start picking up again, as over the longer term they almost certainly will, we will find that there will be a further acceleration in its use.
The Residential Landlords Association makes the case that its research shows that in half of all places where section 21 notices are served, that is because there is an alleged fault, such as rent arrears, but that argument is somewhat undermined by the local authority homelessness experience, because local authority acceptances of people who have been evicted from the private rented sector will happen only after there has been an inquiry into the cause of homelessness and it has been found that the homelessness is not a result of fault on the part of the tenant.
Homelessness is therefore a major factor in our wanting to reconsider the use of section 21, but it is of course only the sharp end of a much wider experience of insecurity. Unchosen ends of tenancies are disruptive, expensive and often traumatic for those involved. Having to make frequent moves, especially for families with children and for vulnerable and older tenants, is a deeply negative experience, even when it has not been imposed by a court order.
Shelter estimates that 27% of renters with children have moved three or more times in the past five years. That takes a toll on physical and mental wellbeing and on educational achievement. It also undermines communities and civic engagement. A very powerful case was made a few years ago by the Electoral Commission on the impact of high turnover and churn in the private rented sector. I know from my own casework, as I am sure all hon. Members do, just how distressing parents—it is not only parents, but it is parents in particular—find it to have to move around, changing schools and disrupting support networks. I could have chosen dozens of cases from my own case load to illustrate that point, but I have chosen the details of just one to read out— it is only a few paragraphs—with your permission, Mr Hollobone.
My constituent says:
“I have lived in this area for over 30 years. Due to overcrowding in our family home I was asked to leave in 2010, at which point I made a housing application to”
the local authority. They continue:
“The Council accepted a…duty and provided us with temporary accommodation in East London. We stayed in Dagenham for a short while before being lured back to Westminster by the Private Sector Team, reassuring us that this was a better option…When we signed a private tenancy we were promptly notified that the council has discharged its duty towards us because we have accepted private rent. We only rented for a year before the Housing Benefit was reduced under the new welfare reforms. As we could no longer afford the rent, we were obliged to find alternative accommodation”.
Despite their need for three-bedroom accommodation, they moved into two-bedroom accommodation. The council said that it
“could not and would not help us. I have a local connection as I have my family here. I look after my elderly father”,
who has cancer.
“I have 3 dependent children…attending local schools. I sit on the board of governors and play an active role in the…running of the school. I am…a member of the Parent Council.”
My constituent says that they are
“employed…and have served 18 years”
in their job in the local area. They say they have been served another
“Section 21 Notice by the landlords Agents requiring possession of the flat on 02nd October.”
That will be the family’s fifth move in eight years. It is a simple example. It involves no fault, no arrears, no bad behaviour on the part of the tenants, but an imposed move of a vulnerable local family, and it is only too typical.
Renting privately is overall less secure than other tenures. Some 860,000 tenants moved between private rentals in 2016, up from 465,000 20 years ago, and one in 10 movers said that their move was down to being given notice by their landlord.
My hon. Friend the Member for Leeds North West (Alex Sobel) talked about retaliatory eviction. A significant minority of tenants fear retaliatory eviction if they make a complaint and so may be deterred from pursuing their rights for fear of the consequences. That unfortunately undermines efforts to improve standards in the private rented sector, despite its having, of all tenures, the highest level of substandard accommodation.
Andy Slaughter
To add to that interesting argument, section 21 has been abolished in Scotland, which is a different jurisdiction and a different housing market, and has been replaced by a regime in which there are mandatory and discretionary grounds for possession. As I understand it, the objections from many landlords are about the complexity and the expense of the court process as much as anything. It is quite a difficult argument to put forward—although I am sure that the hon. Member for Cheltenham (Alex Chalk) would do it well—that it is simply too difficult for landlords and it should be unrestricted for that reason.
Ms Buck
I am grateful to my hon. Friend for that point. Certainly the landlord associations and landlords make the argument that the court process takes too long and is too complicated and, in many cases, too expensive for them to operate. I am unconvinced by that argument, because the figures that the landlord associations have put forward for the period of waiting for a court date or until a warrant can be issued are significantly different from the figures that the Library has provided for the debate. I am not sure that the associations are not using a different definition of average to make their case.
Obviously, once a landlord has decided that they want to recover a property, they will want to do so as quickly as possibly—that is inevitable—but whether the period that landlords have to wait and the quality of evidence that they have to provide if they are seeking a fault-based eviction should be lowered to make it easier for them, to the point where it effectively allows them to act without due regard for the rights of tenants, is a highly moot point.
Andy Slaughter
My hon. Friend is right. We tend, rightly, to focus on bad landlords. I think we all agree that they are a minority, but there is some shocking practice out there. That is nothing new—some of us can still remember the age of Hoogstraten and Rachman. However, I do not think that that is what the debate is primarily about. As I said in my intervention, it is about changing the climate in the private rented sector for good and bad landlords. It is about changing the way in which the private rented sector operates, which is long overdue.
I am often asked to act both for landlords and for tenants in relation to assured shorthold tenancies. A whole industry grew up, partly fuelled by the excellent housing columns in the magazine Legal Action by their honours Nic Madge, who recently retired, and Jan Luba, who is still a sitting judge. Systematically, over many years, they indicated all the areas of housing law where practice was changing and precedents were being set in the higher and lower courts.
A whole industry developed around section 21 notices, which are actually quite difficult to get right. Landlords who think that they can do it themselves often get them wrong. Although they cannot be challenged on the basis that it is a no-fault eviction—the tenant has been a model tenant, and all the other things that we have heard—they can be challenged if they have got it wrong procedurally. Often they have, but it does not get found out.
That should be spotted, frankly, by the judge, even if they are looking at the case on paper—the accelerated procedure for section 21 notices means that often such matters are not heard in court at all. Without the benefit of legal aid and legal advice, it is difficult to expect the tenant to know the process, but often the landlord does not either and it is, in fact, defective. However, it is an indictment of the way in which the housing market runs if we are reliant on catching landlords out on such procedural matters to give people security.
Ms Buck
Is it not also the case that, because tenants do not necessarily know their rights or have access to advice, many people leave their properties, and a much larger number of people feel that they have to, upon the issuing of a section 21 notice, before it goes to court, or at the point of receiving a warrant? They then find themselves judged by the local authority to be intentionally homeless because they did not stay until they were required to leave.
Andy Slaughter
I know that my hon. Friend is, like me, a great rooter around inside plastic carrier bags when they are brought into her surgery. Often one can find, among many other papers, half a dozen possession notices. Social landlords are better at this—or worse, depending on how one looks at the matter—because they often rather lazily issue notices seeking possession with no intention of pursuing them, the only purpose perhaps being to terrify the tenant. However, private landlords do it as well. They will issue section 21 notices like confetti, either as protective notices, or to try to scare the tenant off or something of that kind.
Although my hon. Friend is right that the advice should always be to stay put, to try to get what legal advice is available and to talk to the local authority housing adviser, one thing that the landlord will say is, “If you don’t go now, there will be costs when, at the end of the two-month period, I issue proceedings, or after that when I issue the bailiff notice, and you’ll have to pay them. It will be several hundred pounds at least, and if you challenge, or attempt to challenge, the action it could be more than that.”
Homes (Fitness for Habitation) Bill
Debate between Andy Slaughter and Karen BuckFriday 26th October 2018
(5 years, 7 months ago)
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Ms Buck
I totally agree with my hon. Friend on that. It is also fair to say that the majority of good landlords are happy to endorse that view, because their reputation is dragged down by the behaviour of the rogue minority.
The Bill is not intended as a replacement for the work of local authorities but is complementary to it, enabling tenants to take action where the council has not done so or cannot do so. For all new tenancies after the Bill comes into force, it would make it a right to have a home that did not create a risk to the health and safety of its occupants. As the excellent House of Commons Library briefing on the Bill says:
“The Grenfell Tower fire has focused attention on housing standards in the social rented stock and also in privately owned blocks of flats.”
So I am also pleased to say that the Bill was amended in Committee, with the support of the Government, to extend the fitness obligation to the building within which the dwelling forms part. So the tenant of a flat, a room or part of a shared house will be able to enforce against defects, including fire risks, that threaten their health or wellbeing in their home, even if the defect is in another part of the building.
It has been marvellous to have secured Government backing for this Bill, even to the point of strengthening it. We have had support from across the spectrum. It has come from bodies ranging from the National Landlords Association and the Residential Landlords Association, to the Chartered Institute of Environmental Health—CIEH—the Association of Residential Letting Agents, Shelter, Generation Rent, the Law Society, Mind, the National Housing Federation, the Local Government Association, Citizens Advice and others.
Andy Slaughter (Hammersmith) (Lab)
I am delighted to say that the Government have now got behind the Bill, as that is very welcome. Does my hon. Friend agree that it would also be useful if they gave more security to private tenants, because that is necessary to ensure that they are not evicted as a result of reporting faults, and if they restored early legal advice for housing matters, because without that it is going to be difficult to enforce this?
Ms Buck
I totally agree with my hon. Friend on that. This Bill is one tool and there are many others we need to adopt to ensure that tenants have a full range of rights and, indeed, are protected against retaliatory eviction. That is outwith the scope of this Bill, but there is much more we will seek to do and will no doubt be pressing the Government to do, on matters ranging from security of tenure protection to the provision of legal aid and advice services
I have always believed that politics is a collective effort. For most of us, most of the time, what we do in here is part of a team effort. Although that can sometimes drift into tribalism, there is no shame in the fact that politics is not primarily about what we do as individuals. Private Members’ Bills are one of the few ways in which we, as individual Back-Bench MPs, can make a difference, but in truth this, too, has been a team effort. I am grateful to the Minister and to the officials, who have been brilliant; it has been a joy working with them on this Bill. I also thank all the MPs, from both sides of the House, who spoke on Second Reading, who served in Committee and who are here today to see us through Third Reading.
Social Housing and Regeneration: Earl’s Court and West Kensington
Debate between Andy Slaughter and Karen Buck(6 years, 3 months ago)
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Andy Slaughter (Hammersmith) (Lab)
I beg to move,
That this House has considered social housing and regeneration in Earl’s Court and West Kensington.
It is a pleasure to serve under your chairmanship, Mr Owen. Last Thursday, Property Week carried the story that Capital & Counties Properties plc, the promoter of the Earl’s Court development, is about to sell the Empress State building to the Mayor’s Office for Policing and Crime for around £240 million. Capco confirmed the leak. Indeed, using the “cui bono?” test, Capco was responsible for the leak, which gave a glimmer of good news to its shareholders, who have only had bad news in recent years, ahead of its full-year figures for 2017 being published later this week.
At over 30 storeys, Empress State was the tallest commercial building in London when it was built in the early 1960s. When it was vacated and sold by the Ministry of Defence, the Metropolitan police rented it from its new commercial owners. When Capco acquired the freehold in 2014, it gave notice to the Met and got consent from a complicit Conservative administration—with only weeks to spare before they lost control of Hammersmith and Fulham Council—to approve Empress State’s redevelopment as 440 mainly luxury flats.
Why give up now on luxury residential development, which was previously seen as not just another licence to print money, but a way of integrating the key Empress State site into Capco’s master plan for Earl’s Court and West Kensington? The answer is that throwing in the towel on Empress State is the clearest sign yet that not just the master plan, but Capco itself is in serious trouble and is seeking to cut and run to save its own skin.
This is a story about arrogance and greed; about politicians who thought they could treat people as commodities, units of production and pieces on an electoral chessboard; about developers who could not believe their luck and then fell prey to changing political and market forces; about a vibrant part of London full of industry, commerce and entertainment that was ordered to be razed and replaced with monotonous high-rise blocks as safe deposit flats for the investment market; and about a proud community of 2,000 people who have stood firm for 10 years against the threat of their homes and community being demolished and dispersed.
Ten years ago, Capco conceived a master plan for 77 acres of land straddling the borders of Hammersmith and Fulham and Kensington and Chelsea. It was dubbed Earl’s Court, although the majority of the land lay in the marginal North End ward of Hammersmith and Fulham. It was billed as the biggest urban development outside China, with an estimated built-out value of £12 billion.
The plan was audacious, because although designated as an opportunity area, this was no derelict, brownfield land. One third of the site comprised the Earl’s Court exhibition centre, including its iconic 1930s entrance, which is now sadly demolished despite the UK having only a third of France’s exhibition space and a quarter of Germany’s. One third comprised the maintenance, manufacture and stabling of a significant part of London Underground in the Lillie Bridge depot, which was a major employer of skilled labour. One third comprised two estates of predominantly council housing: Gibbs Green and West Kensington. Around 2,000 of my constituents live there in 760 good quality, spacious, affordable 1950s, 1970s and 1990s low or medium-rise homes.
In place of all that, Capco promised 7,500 high-rise flats, of which only 11% would be additional affordable homes that stretched that definition to its limits by, for the most part, offering nugatory discounts on extortionate market prices. Interestingly, now Capco is aching for a deal—any deal—to get out of the scheme, it does not say, as most developers do, “Look at our viability assessment. It is all that we could afford.” It says, “We did what Conservative politicians asked, and they wanted precious little affordable housing and not one new social rented home.”
At the start of the process in 2008, Capco told me with similar candour that it did not want to include the estates in the master plan. Developing the exhibition centre and depot meant negotiating with a single partner, Transport for London. Bringing in the estates meant not only a political minefield, but buying up the land interests of the hundreds of freeholders and leaseholders who had bought the desirable homes, flats and maisonettes on Gibbs Green and West Ken.
Why did Capco succumb? Because the ideologically driven council in Hammersmith and Fulham decided to attract the attention of its political masters in the Department for Communities and Local Government by showing that whole areas of social housing could be wiped and reconceived as luxury developments—they called it “sweating the asset”. For Capco, demolishing the estates was the price of the Tories’ co-operation with the scheme.
Capco drove a hard bargain. The inequality of arms between developers and local authorities is not unique to Hammersmith. The deal done with TfL on the exhibition sites was hugely preferential to Capco, despite TfL owning the freehold—perhaps the right hon. Member for Uxbridge and South Ruislip (Boris Johnson) was also not trying too hard—but that looks like a master stroke compared with the deal that the Hammersmith Tories did for the estate land.
In 2013, Hammersmith and Fulham Council made a deal to receive £90 million for the estates, plus space in the new development to replace the homes lost. Uniquely in the experience of most planners and developers, however, that sum was not index-linked—as if property prices never rise in central London.
Moreover, the council needed to deliver vacant possession of the land. That meant buying out 171 leasehold and freehold homes, which is normally the developer’s task. The maximum needed to acquire the homes was budgeted as £60 million, although valuation experts assessed the true figure as between £150 million and £174 million. The council has already purchased 26 homes at an average price of £552,000, excluding compensation, which is well in excess of the estimated £350,000.
The true value of the land is not recorded, but reading across from the valuation of the exhibition centre site, which is, suggests that a more accurate figure is around £1 billion. By accepting no more than 10% of the land’s value and by underestimating the costs of acquiring vacant possession, the council could now be left with a zero receipt and a maximum of 672 replacement homes for residents of the estates, having sold 88 homes to cover its shortfall. That will also not guarantee a home for all residents in the new scheme.
For reasons of time, I must return another day to what I regard as one of local government’s great financial scandals: how not just prime land, but whole communities were sold for a song to serve an extreme political agenda of gerrymandering and social engineering. Most of the guilty men of the previous Conservative administration—and they were all men—have taken their poisonous philosophy elsewhere, but Capco still squats on Earl’s Court and West Ken like a toad.
Capco is represented by its chairman, Ian Hawksworth, who is now most famous for being on the guest list for the President’s Club dinner, and Gary Yardley, its managing director, who is quick to pick up lavish bonuses for the granting of planning consents with negligible community benefit and huge community loss. Its development partners are even less savoury. They include Hong Kong-based mega-developers Kwok Family Interests. One of the family, Thomas Kwok, is currently serving a five-year sentence for bribery.
Although I have referred, and will continue to refer, to Capco as the developer, in fact the estates were purchased through an obscure entity called EC Properties LP. The sole partner capital contributed to EC Properties LP is £2 paid in cash by Jersey-registered EC Properties LP Ltd. These and further labyrinthine arrangements appear designed to put Capco in control while shielding it from liability and allowing it to take advantage of offshore tax arrangements.
Before being tempted by the prospect of rich pickings in Earl’s Court, Capco’s business was commercial and retail estate management, specifically through its ownership of Covent Garden. It has no experience as a major land developer, and it shows. It does not have control of the master plan site; it has no option on Lillie Bridge depot, which is owned by TfL; the estate residents, through their lawyers, dispute that the conditional land sale agreement for the estates is enforceable; and now the deliverability of its scheme has been further undermined by the sale of the Empress State building.
Capco’s scheme, the value of which fell by 20% in 2016, includes £1.8 billion of enabling infrastructure costs. At £148 per square foot, that is more than three times the cost of larger development schemes in London. Other residential developers have commented on Capco’s extreme construction costs, which are thought to be 30% to 45% above the market rate.
Capco’s assumptions for residential value, which are significantly higher than the local market and schemes elsewhere in London, have not been realised. Sales are slower than expected: flats have been selling at a rate of less than one a week. At one point it was selling one flat a fortnight, at which rate it would take more than 150 years to sell the entire scheme, yet the business plan relies on a high sales rate of 480 private homes a year. Unsurprisingly, Capco has tried in recent months to sell some or all of the site to overseas investors in America, South Africa, Japan, China and Saudi Arabia, but it has had no takers. Frankly, any developer, however much of a gambler, would be beyond reckless to take any of the Earl’s Court site off Capco’s hands.
With no money in the scheme and none from outside, Capco’s only other option is to return to planning and come up with a new master plan with increased heights and density. Sadly for Capco, that option also looks like a dead end. With Eric Pickles at the Department for Communities and Local Government, the right hon. Member for Uxbridge and South Ruislip as Mayor in City Hall, and Stephen Greenhalgh in Hammersmith Town Hall, anything was possible, but the political weather has changed. Now Sadiq Khan is Mayor and has very different ideas about what constitutes affordable and sustainable development. He has also made a strong commitment to tenants’ ballots and said that he wants
“to make sure people living on social housing estates…are at the heart of any decisions”
involving demolition. Stephen Cowan, the Labour leader of Hammersmith and Fulham Council, has described the Earl’s Court scheme as “unviable” and “undeliverable” and called on Capco to return the estates to the council. He has the full support of the North End ward Labour candidates, Councillor Larry Culhane, Councillor Daryl Brown and Zarar Qayyum. It appears that he also has the support of the deputy leader of Kensington and Chelsea, Councillor Kim Taylor-Smith, who spoke about the scheme at a meeting of the full council on 24 January.
On Monday, I wrote to the chief executive of EC Properties, whose parent company is Capco, to seek a meeting to consider the site’s future. I told him that on 14 June the facts on the ground in Kensington had changed. I wrote:
“I want to make it very clear that I do not believe the continuation of this development under the current terms is right. And, as a minimum, if this is to continue I want to see more social and more truly affordable housing included in this scheme.”
I am pleased to see my hon. Friend the Member for Kensington (Emma Dent Coad) present, because part of the site is in her constituency. As she knows, my reference to 14 June was to the Grenfell Tower fire.
So what happens now? It is too late for the exhibition centres that were demolished in an act of vandalism, but it is not too late to build an acceptable replacement on the site. It is far from too late for the Lillie Bridge depot, which is still owned by TfL, to undergo sympathetic redevelopment to preserve necessary infrastructure for the tube and new affordable homes. If hon. Members will forgive me, however, I will turn my focus to the estates, or rather to the people who live there.
I first got to know West Ken and Gibbs Green in 1985 as the newly selected council candidate for Gibbs Green ward. The first campaign that I had to fight was to stop the then Tory council putting a relief road through the West Ken estate. It has been a pleasure to represent the area as a councillor and MP for 28 of the past 32 years. Although on aggregate it is a low-income community, it includes people from every walk of life, ethnicity, nationality and profession.
Residents reacted with horror to the prospect of demolition of their homes. At first, there was no guarantee of rehousing in the area—only the statutory requirement to rehouse secure tenants in suitable alternative accommodation. Even when residents were told that homes would be available on the site, there were strings attached. Homeowners, private tenants and households who moved into the estates after the land sale agreement was signed in 2013 have no guarantee of finding a replacement home in the area on eviction. Secure council tenants who move into the first phase of replacement homes could see their service charges triple to between £2,500 and £3,500 a year on top of rent. Having been initially promised like-for-like replacement homes, residents who currently have spacious flats and houses built in the 1960s and 1970s, some of which have gardens and off-street parking, have now been told simply that replacement homes will meet the legal minimum size standard. Even if the developer had the finances and political support to begin evicting residents tomorrow, redevelopment of the estates would still take at least 20 years to complete.
Residents have done everything they can to make it very clear what they do not want: demolition. In December 2009, a year after learning of the possible demolition of their homes, residents from 83% of households on the West Kensington and Gibbs Green estates signed a petition to oppose it. In March 2012, 80% of residents who responded to the council’s consultation on the scheme said no to demolition.
Residents have also been very clear about what they want instead: community ownership. In March 2011, they formed West Ken Gibbs Green Community Homes, a community-controlled not-for-profit organisation with membership from more than two thirds of households on the estates. It was set up with the intention of exercising council tenants’ right to transfer.
Ms Karen Buck (Westminster North) (Lab)
I congratulate my hon. Friend on his powerful speech. Does he agree that residents could do a lot worse than learn from the community ownership experience in a neighbouring estate? Walterton and Elgin Community Homes was set up in the face of a threat from Westminster City Council in the late 1980s. It has proved to be one of the most successful and popular models for social housing in the country. Does he agree that that experience shows exactly the approach we should take when estates are threatened?
Andy Slaughter
It is a pleasure to see my hon. Friend in the Chamber. I am not surprised to hear her champion one of the most successful community-held developments in the country. I will say a little more about that development before I conclude my speech.
The right to transfer allows council tenants to choose a different landlord for their area. The objective of West Ken Gibbs Green Community Homes is to become the community-controlled landlord for its members’ homes. For four years, it lobbied the Government to implement the necessary legislation to enable it to use the right to transfer under the Housing Act 1985, as amended by the Housing and Regeneration Act 2008. The necessary regulations came into force in December 2013, and in March 2015 members voted 100:1 to serve a right-to-transfer proposal notice. That is a comfort to those whose priority is simply to remain in their homes. Some residents have lived on the estates with friends and neighbours for 30, 40 or even 50 years and dread the disruption of redevelopment and forced transfer.
Estates are home to people who are the lifeblood of our towns and cities. Many residents are people on minimum wage or zero-hours contracts, who feel the rising costs of living the most. Demolishing and marginalising social housing will not work; more importantly, it dehumanises an entire category of people. Certain councils and developers generalise about social housing tenants. They assume they know better than the tenants what is good for them, and they tell them to be grateful when their homes are under threat. That is what the Conservatives did before agreeing the sale to Capco, describing estates as “not decent neighbourhoods”, “barracks for the poor” and “ghettoes of multiple deprivation”. Is it any wonder that communities such as West Kensington and Gibbs Green are bidding to take control and ownership for themselves?
So residents came up with the people’s plan, which shows the professionals how new development ought to be done. At the outset, Community Homes brought more than 100 residents into workshops and site visits with architects. Residents and architects together identified space for up to 327 new homes and devised plans for improvements to their homes, streets and community spaces. The plans were costed and valued, and residents were able to show that they could help to pay for improvements and subsidise the building of new homes at social rent levels through sales. Residents from 65% of households provided written feedback on these proposals, and 90% of respondents said that the plans were “excellent” or “good”, and “better” or “far better” than the Capco scheme. Here is some of their feedback:
“Everybody is trying to save our homes from these rich people. What do you want to destroy people’s lives for? For money?”
“I like that there is a plan to build new homes but I can keep my home. I don’t understand why they are going to demolish decent homes.”
“The most important thing is that we get to stay. I love it here. We know each other and look out for each other.”
I have two final things to say. First, I thank everybody in the community at West Kensington and Gibbs Green, and their supporters and advisers, for the struggle of the last 10 years. It has been gruelling, and 2,000 people have had their lives on hold, unable to move on with everything from modernising their home to planning their family’s future. However, it has created a fantastic community spirit and inspired people to create their own vision for the future.
Even before the political climate began to thaw, I knew that we would win, because I have known people such as Sally Taylor and Diana Belshaw, the chairs of the West Ken and Gibbs Green residents’ associations, and Keith Drew, the chair of West Ken Gibbs Green Community Homes Limited, for 20 years and more. They are strong Fulham people who are standing up for their communities, and they are not daunted by the dirty tricks of the developer and its political cipher.
I am delighted that so many residents have been able to attend this debate. I apologise if I cannot name them all, but they stand for the hundreds and thousands of people on the estates who have fought for their homes and their livelihoods over many, many years. That battle is not over, but there is at least some light at the end of the tunnel.
As I say, there are too many people for me to name, but I cannot leave out Jonathan Rosenberg, the community organiser for these 10 years, who brought not only his absolute focus and determination to an often exhausting David and Goliath battle, but 30 years of experience of community housing. As my hon. Friend the Member for Westminster North (Ms Buck) knows, Jonathan is the chair of Walterton and Elgin Community Homes, which is in her constituency. He is a slayer of Shirley Porter and a champion of tenants’ rights. Jonathan has been ably assisted by a number of professional advisers—accountants, architects and planners—and by community activists across both boroughs, and indeed by residents who have turned up, often when everything looked hopeless and bleak, time and again to assert the identity of their community.
I must also mention Dave Hill, the former Guardian journalist who now runs—I will give it a blatant plug—the “On London” website, which he is crowdfunding for. Dave has written dozens and dozens of articles to expose what has gone on in West Ken and Gibbs Green over the last 10 years. I do not always agree with everything that he says—he is a good, independent journalist—but he has chronicled what I am afraid to say lazier and more partisan journalists would have otherwise missed. It is good that we have it all on the record.
In conclusion, I have only a couple of simple requests to put to the Minister. I know that, new as he is to his post, he will have listened attentively. From my time holding the justice brief, I know that he is serious and has intellectual weight, and I hope that he will give me good news today. First, will he please determine the Community Homes application for the right to transfer, which his Department has been waiting to determine for more than two years? When he does so, can he please heed the residents’ call for him to uphold their legal right to take back control—a phrase I am sure he is keen to hear in this Chamber—of their community, so that they can deliver the homes that we need?
Secondly and more broadly, I ask the Minister to get the Government, including his Department, to work with the residents, the boroughs and the Greater London Authority—they are all now of one mind, a very different mind from the one of 10 years ago—to provide decent, genuinely affordable homes across the Earl’s Court site for families? That perhaps includes families from Grenfell, and thousands of others who are in overcrowded, unfit and unaffordable accommodation in two of London’s most expensive boroughs.
This situation should not be seen as a tragedy but as an opportunity. If there is going to be redevelopment, it should be sympathetic and sustainable, and in the interests of the people who need it most. They are the people who need social and affordable housing in Hammersmith and Fulham, and in Kensington and Chelsea.
Homes (Fitness for Human Habitation and Liability for Housing Standards) Bill
Debate between Andy Slaughter and Karen BuckFriday 19th January 2018
(6 years, 4 months ago)
Commons ChamberRead Full debate Homes (Fitness for Human Habitation) Act 2018 View all Homes (Fitness for Human Habitation) Act 2018 Debates Read Hansard Text
Andy Slaughter (Hammersmith) (Lab)
All of us, and our constituents, owe a debt of gratitude to my hon. Friend for promoting this Bill and for her perseverance because it is not the first time she has done this. Legal aid is already severely restricted for disrepair. The Government notes to the Bill say that it contains no financial provision—that is probably why they support it—but should we not meet the remedy that the Bill provides with the funds to allow tenants to enforce it?
Ms Buck
We expect that tenants whose conditions meet the criteria equivalent to disrepair would be able to seek legal aid, and I will be making separate representations about legal aid overall. My hon. Friend and I, and many other Labour Members, feel very strongly about this issue.