(3 years ago)
Lords ChamberMy Lords, I apologise for not being able to take part at Second Reading.
Amendment 178A, in my name, is about the City of London, where local authority housing functions are carried out by the City of London Corporation through its Court of Common Council. The City is subject to the same member rules governing participation in discussion or voting on local authority housing matters, where a member has a pecuniary interest, as those which apply to councillors of local authorities. These rules are contained in the Localism Act 2011.
The rules include an ability for local authorities to issue dispensations to allow councillors to participate and vote where it is right for them to do so to fulfil their democratic responsibilities. However, this ability to issue dispensation does not apply to the City because an additional provision, contained in what is now Section 618(3) and (4) of the Housing Act 1985, bans City members outright from voting on such matters. The contravention of this ban constitutes a criminal offence.
The history of the Housing Act provisions have been examined by the City’s law officers and discussed with officials, but their origin remains unexplained. They have simply been repeated without comment in successive consolidations of housing legislation over the years. My amendment seeks to address this anomaly by removing them. This will make the City of London subject to the same regime as local authorities. It is clearly only right that City residents should have the same entitlement to be represented in housing matters as applies elsewhere. I hope that my noble friend will agree. I beg to move.
My Lords, with apologies, and being aware of the hour, I will be brief. I oppose in the strongest terms the amendment moved by the noble Lord, Lord Naseby.
The City of London is the last rotten borough. The elections to the City of London can in no way be described as democratic. There is also the City of London cache, a massive fund amassed over many centuries and explicitly excluded from freedom of information. The last figure that I have, from 2012, is of a £100 million per year income.
The rights of the City of London go back to William the Conqueror, who said that he would maintain all the rights and privileges that the citizens had hitherto enjoyed. It is about time that we finally modernised and got past that. In 1894, it was recommended by a royal commission that the City of London Corporation be abolished. I put on the record my desire to work with any noble Lord who wishes finally to reach that obvious conclusion.
My Lords, as my noble friend has explained, Amendment 178A seeks to remove voting restrictions on either housing issues or related planning decisions applying uniquely to members of the common council of the City of London who are also tenants of the City of London Corporation. Sections 618(3) and (4) of the Housing Act 1985 mean that, while an individual can be a councillor of the City of London if they are a housing tenant of the corporation, they cannot apply for a dispensation to vote on housing or related planning decisions. Voting in breach of Section 618 is a criminal offence. This is not dissimilar to the regime that applies under the Localism Act 2011 which also creates a criminal offence where a member fails, without reasonable excuse, to comply with the requirements to declare their disposable pecuniary interests, and takes part in council meetings.
Councillors in any authority elsewhere in England, operating under the disposable pecuniary interest regime in the Localism Act 2011, can apply for a dispensation to vote on matters where they have a declared interest—but there is no such discretion for the City of London to grant a dispensation where Section 618 applies. In short, this means that City of London councillors are being treated differently from all other councillors in England. I am aware that the City of London has raised the issue on previous occasions. I am grateful to my noble friend for his amendment. Between now and Report, I undertake to give the matter proper consideration and would be happy to arrange a discussion with my noble friend if he would find this helpful.
My Lords, I am extremely grateful to my noble friend on the Front Bench. I willingly accept his kind offer of further discussions. I beg leave to withdraw my amendment.
(3 years, 1 month ago)
Lords ChamberI thank the noble Lord. I do remember his question and I am sorry I have not checked up on this recently. I will do so and will respond to the noble Lord.
My Lords, can we not acknowledge that the debenture issue is not new but has been going on for years? In this section of the housing market, both tenants and landlords do not know their mutual responsibilities. Is it not time for a draft Bill, so that there can be proper detailed discussions and action can be taken for the benefit of both parties?
The Government recognise the strength of feeling in this House in particular, and the other place, on the leasehold issue, but it is complex and needs careful consideration. The Government have said that we will bring a Bill forward in this Parliament and that is what we intend to do.
(3 years, 2 months ago)
Lords ChamberMy Lords, the Bill is highly aspirational, but I am pleased that I have on the Front Bench someone who has worked in local government and been a representative and therefore knows a fair amount of the subject matter we have before us and the depth of what is in the Bill.
I want to concentrate on housing, not least because I was once a junior housing spokesman. I sat for a new town, Northampton, and was chairman of the housing committee and leader of the London Borough of Islington. Inevitably, I want to start with the macro. I am not quite sure what we call the target for the moment—it is not a target, it is an aspirational figure. As I understand it, it is 300,000, and in the last year we completed 175,000 nationally, according to the figures from the Library.
If we look at affordable housing, which is the crunch area at the moment, in my judgment, the National Housing Federation is looking for 145,000 homes to be built. In the last year, the figure is 31,200 and 1,590 built by the local authorities on top of that. The important part is that 50% of those were financed by the Section 106 agreement, which is going to be replaced by some new form. The noble Lord, Lord Berkeley, who is not in his place at the moment, mentioned the West Country situation. As I holiday regularly in the West Country, I took the trouble to find out that it needed 17,000 and last year built 4,159.
I looked up the figures for London, and even there Mayor Khan was given £4.8 billion in 2016 to start 116,000 houses by March 2023. At the moment, according to my calculation, he is jolly nearly 20,000 short, with about two months to go. So I ask the question: what happens to the money that is not yet spent? Surely, if money is short, that should come back into the main pot and be sent to those who are producing homes.
I wonder slightly about the County Councils Network, but others have mentioned their concerns in that area. I do not think anybody has raised the issue of the construction industry yet. It is very important that the major developers continue. There is a big row going on about Grenfell and who should pay for what. I say to my noble friend on the Front Bench that there must be some banging of heads and a decision made. We as a country need the major developers, and it is no good somebody sticking their head in the sand and saying that they should pay even more; after all, that cladding was approved by a government authority.
Small builders have not yet been mentioned, either. They are disappearing. Back in the period around 1980, they did 40% of construction. Today it is 10%. Yet they are the people who understand the local community. They understand the sensitivities; they probably live there. So we should have a closer look at that, and I hope my noble friend will talk to the Federation of Small Businesses.
I have already mentioned new towns. I believe we need a little bit of creative thinking there. I wonder whether we should not look for a current equivalent of the original work that was done on Welwyn Garden City. For want of a better term, I call them “new garden towns”, rising alongside our small towns that need to expand. There may well be bigger options like Milton Keynes or Northampton, or indeed Stevenage.
Wherever they are developed, one thing is certain: we still need policies to encourage owner occupation. That market is a private enterprise market. It is vital because every young couple in this country want their own home. We therefore need continual creative thinking about incentives. For those of you who read the Metro today, it may have been interesting to see the insert about a new solution from Fairview. I do not know Fairview, but it has a scheme for buyers to save for a deposit while actually living in their new home. That is good thinking. Shared ownership was a success, with just a 5% deposit. Deposit Unlock was another good scheme, while the Government’s First Homes scheme seems to have gone well too. There is a continual need, and we have a role and a responsibility to ensure that young couples, wherever they are in the UK, can own their own home and have the life that they wish to live.
(3 years, 2 months ago)
Lords ChamberI am afraid that I have to answer the noble Lord that it is not up to me to agree to a debate, but I am sure that the Front Bench along from me has listened to what the noble Lord said. It would be an interesting debate.
My Lords, I recognise my noble friend’s sincerity in her initial Answer. Nevertheless, 95,000 families are living in temporary accommodation. In recent months, we have seen rent rises nationally of 17% and as high as 59% in some boroughs of London. Will my noble friend put some motion and activity behind a proper analysis so that we can produce an urgent way forward?
The Government have made it clear that, within this Session, they will bring forward the private renters Bill, which will look at the issues that my noble friend raises, as well as many others. The Government have allocated £654 million in funding this year and next year on homelessness and people in temporary accommodation. Recently, because of those issues that we know are happening, we have topped that up in December by another £50 million. We are doing everything that we can in this difficult time to support these vulnerable people.
(3 years, 5 months ago)
Lords ChamberMy Lords, the more that noble Lords row with each other, the less time there is to answer questions. I did say my noble friend Lord Naseby next, and then the noble Lord, Lord Foulkes.
My Lords, is this not now a golden opportunity for the new Government to recognise the success of Milton Keynes as a new town/city, Northampton as a new town, and Welwyn Garden City? That concept can be modernised and is an opportunity —to pick up the point made by my noble friend—for social housing to be in the lead? Should not every one of the roofs in these new towns be appropriate for dealing with Covid, et cetera?
New towns have been around for many years, and are a part of the solution if local people are happy to have that in their area. I will take my noble friend’s views back to the department; we will discuss it further and I will talk to my noble friend.
(3 years, 9 months ago)
Lords ChamberI recognise that we cannot look at housing in isolation; we need to get investment in the infrastructure and other factors to allow for growth. It is a good start to have had a £10 billion investment in housing supply since the start of this Parliament, but there is also investment to enable brownfield sites to be built out rather than the—sometimes easier—greenfield sites. We want to see brownfield development and that requires infrastructure, and the money is in place to do precisely that.
My Lords, is it not time that we had a meaningful new towns project which would benefit both owner-occupation and social housing throughout the United Kingdom?
I think we need to find ways of coming up with new town projects but to do that we need the infrastructure, the transport, the roads and the rail, and that is why we recognise that a programme just to build homes is not enough. We need to get that in the round, and we are taking it forward as part of the Levelling-up and Regeneration Bill in this Session.
(3 years, 9 months ago)
Lords ChamberThe purpose of the Elections Act was to ensure that we did not have this arbitrary cut-off point. Those living abroad have always been able to vote in elections for up to 15 years, which we have now extended as part of that legislation. People cannot vote in local elections if one of their properties is, let us say, in Spain, so I do not think that arises.
My Lords, as one who was first elected to the other place with a majority of 179, after three recounts, and later in that year by 141, is not the proposition from the noble Lord on the Liberal Benches correct? Otherwise, there will be tactical voting by students in marginal seats.
(3 years, 11 months ago)
Lords Chamber
Lord Blencathra (Con)
My Lords, simply look at the Bill that came from the other place, then take a look at what we are sending back. It has changed beyond all recognition. I pay tribute to my noble friend the Minister and his boss, my right honourable friend Michael Gove, for that extraordinary transformation. I also thank my noble friend Lord Young of Cookham and noble Lords and noble Baronesses on all sides of the House, and the right reverend Prelate, for the many amendments they have made, many of which have been accepted by the Government. We are sending back some important amendments that the Government might not quite like as much as we would like them to. However, I appeal to the other place to accept them and not to remove them, especially the zero amendment proposed by the noble Baroness, Lady Hayman of Ullock.
The Government, apparently, have had legal advice on the dangers of breaking the ECHR if we changed the cap figures, but we heard, I submit, even better legal advice that that is not so. In any case, as the noble Lord, Lord Marks of Henley-on-Thames, said, some developers will challenge the figure in court no matter what level the Government set.
We also need to do more on enfranchised leaseholders. They were encouraged to purchase their freeholds, and they must not be treated like rapacious landlords. Nevertheless, this Bill now gives leaseholders infinitely better protection. With a few further tweaks it could give them full protection. When I see the contribution my noble friends have made to the Bill, I am reminded of the words of Shakespeare’s Julius Caesar, or almost his words:
“Antonius! … Yond”
noble Lord, Lord Young of Cookham,
“has a lean and hungry look … Let me have men about me that are fat”.
I commend this Bill and hope the other place will improve it further.
My Lords, as one who has been involved in housing policy for over 50 years, I pay tribute to my noble friend for his time, care and effort, and his listening qualities, which have not always been a feature of those on either Front Bench. I offer sincere thanks to my noble friend.
My Lords, I start by thanking the cladding and building safety campaigners who have been resolute and unremitting, since the Grenfell fire tragedy, in pursuing justice for leaseholders and tenants. Without them, this Bill would not be in the shape it is today. It has been transformed but not transformed enough, as we have heard from others. Across the House, people have worked together to make it a better Bill. I thank them for the way we have worked together to make improvements, but it is not yet enough.
I, too, urge the Government to accept the amendments that we accepted on Report. I, for one, am not giving way. I hope that the Government, at the other end, will say that the argument has been made for a nil cost to all leaseholders. That is where I shall firmly stand to the bitter end. Leaseholders are the innocent victims; they must not pay a penny.
I pass on my thanks to the Minister for being so free with his time, discussing the various amendments, and to the officials from various parts of the Government for explaining the detailed changes that had been proposed. Particularly, I thank Sarah Pughe in the Liberal Democrat Whips’ Office, and my noble friend Lord Stunell. Without their expertise, knowledge and experience, we would not have been able to do the job that, between us, we have done. I look forward to the Bill coming back, having been accepted by the Commons.
(4 years, 1 month ago)
Grand CommitteeMy Lords, I shall speak to my Amendment 65, which would modify the major statement in government Amendment 64. I was greatly encouraged when my noble friend the Minister sent the letter on 14 February. I thought, “Ah, here’s a good letter”, because it says clearly:
“The key principles that I outlined were a more proportionate approach to building safety risk”,
and
“the need to protect leaseholders”.
That is in the first paragraph. The second paragraph even starts:
“I committed to protect leaseholders”.
So I thought, “Oh, good, we’ve got there now”. But then, of course, I looked at the letter in more detail—and what is proposed in new subsection (2)(d) proposed by government Amendment 64 will have a major adverse effect on buy to let.
I remind my noble friend, who has been in housing for many years, as I have—I first got elected to the London Borough of Islington in 1968—that it was in 1993, under the Major Government, that the whole concept of buy to let was produced. That was at a time when, as all of us who were involved in housing would have known, there was a terrible situation for private tenants. They were basically exploited. We remember Rachman, De Lusignan and the others at that time. Here, it was not launched with trumpets or anything; nevertheless, it started in 1993 and it built up, because it offered good-quality housing for people to rent in the private sector. We now have a situation today, which I find really amazing, having done a bit of donkey work on this, where there are more than 2 million buy-to-let properties that are mortgaged and successful.
I will not take much of the Committee’s time, but I will just highlight that over the past 25 years, landlords have made a tangible improvement to the whole rented sector, so now we have a situation where millions of tenants today are proud of their home, although they have it on a buy-to-let basis. That is all fine and dandy, except that when you look at what is actually proposed at the moment, the net result is that, basically, buy-to-let landlords, or some of them, will not qualify for the remit of the cladding scheme that was announced in January. If they rent out no more than one flat in a block, they are okay, but if they have any more, they are in trouble. I have had strong representations, of course, from the National Residential Landlords Association, which states:
“We still fail to see why the Government is making it so difficult for buy-to-let landlords who are leaseholders to access the same level of support as all other types of leaseholders.”
The reality is, if you are a buy-to-let landlord renting out however many flats, or an owner-occupier leaseholder, you have been treated unfairly by the developers that installed dangerous cladding on blocks of flats. What Her Majesty’s Government are doing, as matters stand in Amendment 64, is introducing a very dangerous principle, basically stating that there are worthy and unworthy victims of the cladding crisis. I ask my noble friend to reflect that the Government should make it clear that any and all leaseholders should be treated the same. That is why I have tabled this amendment. I have not sought any publicity on this at all, but people have read the Bill, thankfully, and I have just brought a small sample of the huge number of emails I have received. Each is an indication of a case. The first is from a retired solicitor—so this is a perfect gentleman—who had a flat on buy to let. His wife bought one as well, and they now have two flats and are facing a problem. He says it is vital that all leaseholders are treated equally, and I do not think I can disagree with that.
Another one comes from a lady who was affected. She had a one-bedroom flat, which she bought in St Albans when her mother died, and then they bought one more, yet they are caught again. Then there is one from a lady called Katherine Wilde in Croydon. A single-parent family, two sisters, bought a flat jointly, then another flat jointly, then another flat jointly. They are caught. I could go on, although I have not brought many. It is clear. This is from a gentleman called Paul Bullock. It is clear that all these people are victims of this national scandal. As further evidence from the Grenfell inquiry comes to light, it is obvious that many parties have played a role in creating this crisis, the only innocent party being the leaseholders who purchased the flats after being guaranteed that everything was in order, only to find out that this was not true. There are moving words at the end of this email:
“Personally, I am caught up in this mess. I can’t even start to explain the toll of the past two years on my physical and mental health”.
I will not read the rest, but I will say to my noble friend that there is a problem here and I hope that he will have another look at it. I think that when he was introducing the letter of 14 February, he said that some of it had been done in a bit of a rush—so I think there ought to be an opportunity to have another look at this issue.
Lord Blencathra (Con)
My Lords, my Amendment 59 is concerned with the first two lines of paragraph 5 of Schedule 8, which begins:
“Building safety costs may be taken into account in determining the … building safety charge payable by a relevant tenant”.
You can bet your life they will be. Leaseholders know that every other week a notice comes from the managing agents to say that the freeholder or landlord has decided that the corridor lighting needs updating, new lines need to be painted in the car park, the entry phone system needs replacing and so on, ad nauseam. This schedule gives them another excuse for possibly unnecessary, gold-plated, so-called safety improvements and contracts let to their favourite contractors. That is why my amendment seeks to add these words at the end of the sentence I have just quoted:
“only if they are below a maximum as specified in regulations made by the Secretary of State”.
It is another plea for the Government to take a permissive power so that, if it proves to be the case that service or safety charges have been jacked up, they can use a regulation to put a control on it.
These regulations may not be necessary—I hope they are not—but the power should be there just in case it is needed. If your Lordships just google “leasehold scandals”, up will pop names such as McCarthy & Stone and Peverel, now calling itself FirstPort—I can assure your Lordships that Mr Tchenguiz has not made his millions by being nice to leaseholders.
My Amendment 66A adds to the definition of “relevant defect” in new subsection (2) in Amendment 66. At the moment it says:
“‘Relevant defect’ means a defect as regards a building that … arises as a result of anything done (or not done), including anything used (or not used), in connection with relevant works, and … causes a building safety risk.”
I propose to add at the end:
“which may relate to but is not limited to … external cladding … internal walls and the materials contained inside any walls … fire doors … balconies … a lack of sprinklers, fire detection and control systems … inadequate escape routes.”
Quite simply, I believe that builders should pay for all fire safety remedial work and not just external cladding. But I also hope that common sense can prevail and the Government can lay down the law that wooden decking on a steel balcony is not a fire risk, and that potentially flammable materials sandwiched inside non-combustible inner and outer walls do not need to be removed. There are a lot of excessive suggestions on fire risk materials going round at the moment, and that needs to be stamped on.
My Amendment 86 seeks to insert a new clause to prevent managing agents charging excessive amounts for undertaking fire risk assessments or preparing applications for assistance. In particular, I suggest that the regulations may include—again I stress “may”:
“setting limits on the charges managing agents may impose for fire risk assessments … setting limits on the charges managing agents may impose for making applications to the Building Safety Fund or any other source of funding for fire risk remedial works … setting limits on the charges managing agents may impose for inviting tenders for fire risk remedial works … preventing service charges being inflated by fire risk remedial works.”
I suggest that these are all reasonable. My noble friend the Minister knows what managing agents are like. If we are not careful, this Bill will be a licence for them to print money: charging for the work of the accountable person and for drawing up the strategy, coming into all our homes to look for safety dangers, and a host of other things they will be able, quite legitimately, to charge leaseholders for. While they can do so, I suspect that the charges will be excessively high. Thus, the backstop of a regulatory power is essential.
I commend Amendment 131 from my noble friend Lord Young of Cookham. He made a compelling case for a short, sharp inquiry into the charges for fire safety work which leaseholders have had to pay and which are not covered by this Bill. That is eminently sensible stuff.
(4 years, 1 month ago)
Lords ChamberMy Lords, I cannot give a guarantee around retrospective application, but through these measures we are ensuring that many hundreds of thousands of leaseholders do not face eye-watering bills. These measures are about ensuring that that does not happen.
Is my noble friend aware that this problem has been with us for over four years? Is he confident that this demand that Her Majesty’s Government are making on the construction industry is the right way forward? Using the law, as every Member of this place knows, takes an awfully long time. Would it not be better if everyone sat down round the table and found an answer without implying the use of a new law?
My Lords, that is an incredibly helpful point, because in fact it is exactly what I did on Friday. On Friday we sat down to a virtual meeting with the developers and sought precisely that: to understand how we could ensure that we brought resolution to this crisis, which has taken over 30 years to evolve. In seeking voluntary contributions, that is precisely what is happening: engagement at every level.