Housing: Private Rented Sector
Lord Carrington Excerpts(1 year, 3 months ago)
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Lord Carrington
To ask His Majesty’s Government what assessment they have made of the demand and supply of housing in the private rented sector in the implementation of their housing policy.
Lord Carrington (CB)
My Lords, I declare my interests in rural rental properties as set out in the register, and I beg leave to ask the Question standing in my name on the Order Paper.
The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)
Our priority is to ensure that everyone lives in a decent and secure home. The proportion of private rented sector households has remained relatively stable for nearly a decade, currently accounting for 19% of households. At present, demand for PRS properties is greater than the available supply due to a range of factors, and we continue to monitor the market. We will publish a full impact assessment, setting out the costs and benefits, of our planned private rented sector reforms.
Lord Carrington (CB)
I thank the Minister for her response. Clearly, the supply of houses for rent is an increasing problem. I want to focus on the methodology of energy performance certificates used by the Government for upgrading efficiency. By an early date yet to be confirmed, all rental properties must have an EPC rating of C, which is likely to be both very expensive and unachievable for many properties. EPCs were introduced in 2007 to measure the efficiency of a house based on average energy consumption. While there have been adjustments, the relevant standards still take little account of the age and character of the house, or the carbon embodied in it, so all houses are assessed on the same basis. Therefore, EPC remedies are often based on inappropriate standard assumptions. Please could the Minister tell us how and when this blunt tool will be replaced by a measurement that is fit for purpose?
Baroness Scott of Bybrook (Con)
My Lords, I do not agree that it is a blunt tool. We propose to apply to new tenancies a requirement for an EPC rating of C and raise the maximum spend that landlords are required to invest to £10,000 from April 2025, and to all tenancies by April 2028—the noble Lord is right. If we are going to meet our net-zero strategy, we have to commit even further to consulting on phasing in even higher minimum performance standards. That will take place through the social housing sector but also through the private rented sector.
Renters Reform Bill
Lord Carrington Excerpts(1 year, 5 months ago)
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Lord Carrington (CB)
My Lords, whilst welcoming an enormous amount that is in the proposed legislation, I am very concerned about the capacity of the courts to undertake the justified evictions under Section 8. Currently, the waiting times are simply enormous, and this is putting off a lot of private landlords.
Baroness Scott of Bybrook (Con)
The noble Lord makes a very good point. When court action is needed for landlords to gain possession of their properties, the courts should provide fair and efficient access to justice. We are working with the judiciary, the Ministry of Justice and HM Courts & Tribunals Service to introduce reforms to make the possession process much more efficient for landlords, while maintaining essential protections for tenants built into the court processes.
Housebuilding: Target
Lord Carrington Excerpts(2 years ago)
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Lord Greenhalgh (Con)
My noble friend has extensive experience of housing. The department recognises the importance of modern methods of construction, both volumetric and non-volumetric as well as those designed for manufacture and assembly, and we have a target within the affordable homes programme of delivering around 25% through these methods. Obviously, we recognise the need for housing of all types and tenures, and both supported and private housing for the elderly, and retirement communities are a very important part of getting the built environment right.
Lord Carrington (CB)
My Lords, in order to maximise the funding for the building of affordable housing, there is a need to bring in willing and able institutional investors. However, the Government must create a level playing field in terms of the tax positions and grant agreements between housing associations and institutional investors to encourage much-needed collaboration between the two. Please could the Minister comment on this and other measures to attract private investment?
Lord Greenhalgh (Con)
My Lords, I recognise the important role that registered providers have played in building affordable housing but also note that, increasingly, councils are building council homes again, which is a good thing. We will look at whatever it takes to remove those barriers to enable people who are building affordable housing to access institutional investment.
Land Use Framework
Lord Carrington Excerpts(2 years, 6 months ago)
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Lord Carrington (CB)
My Lords, I declare my interests as a farmer and landowner as set out in the register. I am absolutely delighted to follow the noble Lord, Lord Harlech, and to hear his excellent and informative maiden speech. He is a shining example of the ability of the much-criticised hereditary election system to introduce young, experienced and highly qualified new Members. I welcome the noble Lord.
Like others, I thank the noble Baroness, Lady Young of Old Scone, for bringing about this debate. It follows her interesting amendment to the Environment Bill, which unfortunately I was unable to support as I thought it might be too prescriptive and therefore have undesirable side effects when it came to farm diversification and other issues. However, I think she is absolutely correct to explore the need for an overarching land use framework. The devil will inevitably be in the detail—hence a broad framework is a sensible aim. I agree with so much of what she said during her excellent speech, together with that of just about every other noble Lord and noble Baroness who has contributed to this debate.
The need for some top-down planning has been identified by a number of people, including Henry Dimbleby in the recent National Food Strategy, although I do not agree with his complicated three-compartment model for land use, which takes no account of the requirement for land on which to build houses, infrastructure and industry. However, top-down planning on its own and on the scale envisaged is not practical. Careful thought needs to be given to how a land use framework will overlap with the local nature recovery strategies that the Environment Bill already introduces, as well as planning and housing White Papers and legislation and much more—and, of course, the Agriculture Act. We do not want to see a conflict or duplication of effort in any of these areas.
The need for a framework is absolutely clear, as we have three broad areas of economic activity pressing for their share of the land cake—an asset, as has been pointed out, that will never increase in area but will increase in value, which is a further complication and consideration.
First—and to my mind probably the most important, in view of our experience in two world wars and more recently with Covid—is the production of our own food, rather than relying on imports maybe at lower costs but almost certainly produced to lower standards and coming from considerable distances, with logistical dangers as serious possibilities in an unstable world. According to a recent NFU survey, 60% self-sufficiency in food seems to be a sensible guideline. In addition, as has been pointed out, agriculture occupies 70% of our land.
Secondly, there are the environmental activities, so important with climate change, which may be complementary to farming but may also be in direct competition. By this, I mean tree planting or solar or wind farms on arable or pasture lands.
Finally, there is the most important requirement of housing, industry and infrastructure, often driven by demographics, technological change and the whole levelling-up agenda. Who can drive up the M1 through Buckinghamshire and not be amazed by the work they can see being done on HS2 or the number of new sheds being built around Milton Keynes?
Inevitably, as a farmer my greatest concern is the maintenance of sufficient land for food production. Currently, as the old basic payment system of support for farmers is phased out, farmers are in a sort of hiatus until the environmental land management scheme is rolled out in 2024. They have insufficient detail on ELMS, particularly on profitability. This was confirmed in the recent report from the National Audit Office and has caused the NFU to call for a delay in the reduction of the basic payments.
The result, not surprisingly, is that most farmers are sitting on their hands. This is greatly encouraged by the current high prices for many commodities that farmers sell, such as wheat, barley, rape and livestock. Why risk uncertainty until details of ELMS are known? Why enter the unknown unnecessarily when you are still making a decent profit, although most would accept that the high prices may not last for ever? There is an old adage in farming that sticking to what you know how to do best is the safest course of action in uncertain times. Farmers, on the whole, are there for the long term, not just for a year or two.
Those looking at stable high returns are likely to be exploring such activities as solar or wind farms or housing, which could remove good agricultural land from production. This is the point: whether we are talking about high-return activities such as housing, solar and wind or lower-return activities such as tree planting, rewilding or carbon storage, all these may be difficult to reverse back into commercial agriculture if a food crisis occurs; hence the importance of protecting productive agricultural land.
Any land use framework should be positive and enabling, allowing land managers to deliver more from their land, whether for the environment, food or other economic activity, rather than negative and restricting the progression of farming and the diversification of farming businesses, let alone other rural businesses. However, a fixed land use framework can never succeed in circumstances where there are going to be changes in technology, climate conditions, consumer demand and business viability, to name just a few considerations. All this could happen in very short order. Hence, a land use framework needs to be flexible, with top-down and bottom-up input.
I believe that the basic presumption in the planning system regarding land use should be that productive agricultural land graded 1 and 2 should stay in food production, while grade 3 should be considered for wider uses. Lower grades should be the favoured areas for non-farming activities, although I am thoroughly aware that some species of trees are likely to thrive better on good land rather than chalky banks. Obviously, small parcels of land, field corners, land adjacent to hedges and existing woods—whatever the grade designation —should be exempt and available for environmental planting, including trees, as envisaged by the Agriculture Act and ELMS.
It is particularly worrying that there have been an increasing number of land sales, as the noble Baroness, Lady Young, pointed out, to purchasers with no doubt worthy environmental backgrounds who have converted the land from arable and pasture to rewilding or trees. This certainly may be the correct usage in some cases, but the economic use of land should be dictated not by the whim of the new owner but by the correct classification of the most suitable use of that land. Integrating the planning system with building, agriculture and environment through a framework of land use makes perfect sense.
Very careful thought needs to be given to bring all these competing uses for land together and decide on the criteria of suitability, viability, necessity, strategic considerations and much more. Nothing should be set in stone, as flexibility is essential as circumstances change, but clear guidelines on a land use framework should be set, based on consultations with all stakeholders in these various sectors. I would therefore welcome the setting up of a committee or commission to explore the land use framework issue in greater detail. I would be most interested to hear the Minister’s views on this.
Rent Arrears: Covid-19
Lord Carrington Excerpts(2 years, 11 months ago)
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Lord Carrington
To ask Her Majesty’s Government what further financial support they are considering to help private sector residential tenants clear rent arrears accrued since the introduction of restrictions to address the COVID-19 pandemic.
Lord Carrington (CB) [V]
My Lords, in begging leave to ask the Question standing in my name on the Order Paper, I declare my interests as set out in the register.
The Minister of State, Home Office and Ministry of Housing, Communities and Local Government (Lord Greenhalgh) (Con)
I declare my residential and commercial property interests as set out in the register. The Government have provided an unprecedented £352 billion support package, keeping millions in work and temporarily bolstering the welfare safety net by more than £1,000 a year for families most in need. Financial support from private rented sector tenants remains in place. The job retention scheme and universal credit uplift are available until the end of September. For renters who require additional support, £140 million of discretionary housing payments are available.
Lord Carrington (CB) [V]
I thank the Minister for his response, but the recent housing resilience survey suggested that the proportion of private renters in arrears increased from 3% in 2019 to 9% in 2020. Will the Minister accept that allowing arrears to grow in this way is not sustainable for tenants or landlords? The Budget announced a pilot no-interest loan scheme to help vulnerable consumers who would benefit from affordable short-term credit to meet unexpected costs. Will the Minister consider a similar loan scheme to support tenants who are now in arrears but do not claim benefit support?
Lord Greenhalgh (Con)
My Lords, I point out that two-thirds of the tenants identified in the survey have two months or less of rent arrears. We have preferred to avoid encouraging further debt, instead providing non-repayable financial support through furlough and the welfare system.
Queen’s Speech
Lord Carrington Excerpts(2 years, 11 months ago)
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Lord Carrington (CB) [V]
My Lords, I declare my farming interests as set out in the register. I, too, enormously look forward to hearing the maiden speeches of the noble Lords, Lord Coaker and Lord Morse.
I welcome many of the measures outlined in the gracious Speech, particularly the opportunity to consider the Environment Bill, which forms part of a trio of measures—including the Agriculture Act and the energy White Paper—moving from the environmentally damaging basic payment scheme to sustainable farming and the enhancement of the environment.
However, the Agriculture Act and the Environment Bill are enabling legislation and, therefore, lack sufficient detail to allow land managers the tools to plan a forward business strategy. Despite this regrettable deficiency, farmers and land managers are doing their best to prepare by carrying out capital audits, improving soil structure, mitigating methane, researching carbon offsetting opportunities and investing in forestry and trees.
However, without detail, much of this preliminary work, which is often done at considerable expense, is totally at their own risk. For instance, in the case of soil condition, methane measurement, carbon sequestration and wider natural capital audits, there appears to be no agreement on the recommended measuring tools and standards. Surely this is fundamental to the success of environmental legislation. We need to know more about regulatory standards and financial incentives as a matter of urgency.
In the Environment Bill, there are many areas that need further thought. For instance, the only reference to trees is in Clause 100, which covers tree felling and planting, except that there is no further information on tree planting. Surely this is the opportunity to place the new English tree strategy in the Bill. The planting and maintenance of woodland are central to policies on climate change and carbon capture, and much more, but further commercial realism is required for planting at scale in England to succeed, due to the likely devaluation of land and farm income by switching from farming to forestry. Although grants largely cover the cost of establishment and early maintenance, there is no current return to the grower. I therefore urge the Government to investigate the reintroducing of basic annual payments for up to 25 years that existed under the farm woodland scheme of the 1980s. That was successfully brought in to counter the huge loss of elm trees by incentivising the creation of new woodland.
On biodiversity net gain—BNG—which is central to the Bill, farmers and growers should be in prime position to provide developers with BNG. However, pressure on land use needs to be carefully considered, as environmental policies must recognise the importance of food security. Details of how the BNG market will work are scarce. The measurement—again—and financial benefits are very unclear, but the likely cost of implementation will undoubtedly be high. We await the updating of Defra metrics. Other issues, such as what happens at the end of the scheme, how tenant farmers can be involved and taxation, all need resolving before BNG can be effective.
The Bill needs also to address the issue of field drains, which impact on farm productivity, flooding and much more. In many instances, field drains benefit net zero and are very important in underwriting domestic food security. This issue should also be in the Bill, as it is not really something that should be dealt with under the Agriculture Act or the environmental land management schemes.
Finally, I believe that public education is key in just about every aspect of the Environment Bill and climate change in general. I urge the Government to review and update the national curriculum as required to achieve this, as use of knowledge and behavioural change are cheaper than remediation.
Housing: Rent, Evictions and Covid-19
Lord Carrington Excerpts(3 years, 6 months ago)
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Lord Greenhalgh (Con)
My Lords, I thank the noble Baroness for this helpful policy point about the Spanish experience. I shall write to her on that matter.
Lord Carrington (CB) [V]
My Lords, I declare my interests as set out in the register. Many landlords have mortgages and ongoing repair costs. What measures are proposed to protect them from the hardship imposed on them by those tenants who are financially able but who have decided that they are not willing to pay their rents in the knowledge that they can shelter under the new government umbrella from any immediate consequences?
Lord Greenhalgh (Con)
My Lords, that is precisely why the evictions moratorium had to end. We have to protect landlords from egregious rent arrears as well as from cases of abandonment, fraud, anti-social behaviour and, in the social sector, domestic abuse. That is why the judiciary called for a start on proceedings, to focus on the most difficult cases first.