(1 year, 3 months ago)
Lords ChamberMy Lords, the noble Lord, Lord Sikka, mentioned a shortage of 251,000 skilled construction workers if the Government are to hit their target. Modern methods of construction have the potential to help meet that shortage and drive up productivity, but have had a mixed reception in this country because of a lack of sustained demand. As many of the 1.5 million houses will come from the public sector, can the Government use their purchasing power to relaunch modern methods of construction with a sustainable level of demand, to meet the productivity requirement and give the country the homes it needs?
I am grateful to the noble Lord for giving me the opportunity to say that I went to visit British Offsite with Weston Homes in Braintree earlier this week. What a fantastic example of British innovation, using recycled steel to build MMC products. MMC is an important opportunity to improve productivity in the construction sector, to deliver quickly the very high-quality energy-efficient homes we need, and to create new and diverse jobs. We are working to address the strategic barriers to the further uptake of MMC, including improved supply chain confidence, clarity for warranty and insurance markets, and planning reform. We will say more about that in the long-term housing strategy next year.
(1 year, 3 months ago)
Lords ChamberMy Lords, I am grateful to the noble Baroness, Lady Warwick, for sponsoring this debate and introducing it in such a compelling and moving way. Like her, I also look forward to the valedictory speech from the most reverend Primate the Archbishop of Canterbury. I pay tribute to the work of the Church under his leadership in raising the profile of housing and identifying some solutions, and, in particular, to the report of his commission on housing, Coming Home, which was published in 2019. I am sure he will want to develop some of those themes in his speech today.
This debate follows a similar one in March this year, which I initiated. I started that debate by saying:
“I want to outline what steps might be taken in the next Parliament to improve housing outcomes for everyone”.—[Official Report, 14/3/24; col. 2208.]
I then outlined a large number of policy changes and, in response to three of my suggestions, the noble Baroness, Lady Taylor, then in opposition, said:
“He raised some important issues around downsizing incentives, incentivising to sell properties from the private rented sector and institutional finance, especially pension funds. That is something we definitely have to look at”.—[Official Report, 14/3/24; col. 2231.]
So I will briefly refer to those three initiatives and gently inquire about progress.
I begin with the last, as the need for institutional finance for rented accommodation has been underlined by the passage of the Renters’ Rights Bill. I support that Bill, as I did its predecessor, the Renters’ Reform Bill, but, as I said then, it must be accompanied by measures to increase supply. All the evidence is that private landlords are exiting the market—a process accelerated by the recent Budget. The number planning to sell is predicted to grow exponentially next year, with a massive 41% of private landlords planning to sell at least some rental properties and only 6% planning to buy.
This has an important impact on rents. Recent figures from Zoopla show that there are now 21 households bidding for every property to rent. Recent Budget decisions were branded as “disappointing” by Paul Johnson, the director of the IFS. Referring to stamp duty, he said that
“at least part of the consequence will be to reduce the supply of rental housing and so increase rents”.
We need to put the private rented market on a much more sustainable basis.
Other countries have a different model, which we should progressively adopt. In Europe, long-term institutional finance provides secure, well-managed rental accommodation. In this country, it provides just 2% of the rented stock. We need progressively to reduce our overdependence on the private landlord, who can release this capital only by selling, and get the financial institutions to invest in what historically would have been an even better investment than equities. At the meeting that the Minister was kind enough to hold with me last week, she explained that she was working on this with the Treasury, which also wants pension funds to invest more in the country’s infrastructure—so where better to start than housing? Local authority pension funds have an interest in increasing housing supply, in turn helping the Government to achieve their ambitious target of 1.5 million new homes. We need urgent progress on that front.
I turn next to downsizing initiatives. There are 3.6 million homes with two or more spare bedrooms. Many older people want to trade down or rightsize, freeing up their homes for young families. An older person triggers a chain of movements promoting labour mobility and making better use of the country’s housing stock. In the medium term, the planning system should be much more proactive in ensuring the right mix of new build, and we look forward to next week’s NPPF to see whether there is a step in that direction. Professor Mayhew estimated that we need 50,000 homes per year for older people who want to rightsize, but we are producing only 8,000.
Finally, on incentivising to sell properties from the private rented sector, many families have to rent but, as I have said, private landlords are leaving the market due to high interest rates, concerns about impending legislation, a less attractive tax regime and new energy efficiency standards. We should say to private landlords that, if they sell to their tenant, no capital gains tax and no stamp duty would be paid. This would be not a right to buy but an incentive to sell. This would have a dramatic effect on home ownership for those who would prefer to own and not rent; it would almost certainly lower their housing costs and enable them subsequently to move up the home ownership ladder. The landlord could realise their capital without having to give notice to the tenant. It would be a win-win policy that I would gladly allow the Government to adopt.
I look forward to hearing from the Minister about the progress on the three initiatives that she commended only a few months ago.
(1 year, 3 months ago)
Lords ChamberThe full details will be published in the English devolution White Paper, but the intention is that mayors will have some strategic powers over major infrastructure in their areas and land use planning for housing. Noble Lords will see the details in the English devolution White Paper, which will be out shortly.
My Lords, the Government are planning a new generation of new towns to help achieve their targets, at the same time as they are planning to devolve more powers to regional mayors, as we have heard. The location of these new towns will be decided by central government and the new homes will be delivered by development corporations run by central government. Is there not some tension between their policies on new towns and on regional mayors, about which we heard a few moments ago?
As a new town girl, I absolutely celebrate the drive for new new towns. I know that Sir Michael Lyons, who is in charge of the task force for new towns, is working hand in glove with mayors and combined authorities to deliver this new generation of new towns. He will undertake significant consultation with them about both planning and location. The mayoral strategic development strategy will be part of this process as well. There is no conflict between new towns and devolution; they work very well together.
(1 year, 3 months ago)
Lords ChamberI thank my noble friend for his question. I agree with both him and Nye Bevan: this is a very important issue, and we need to set out how we support the transition to a low-carbon future in a changing climate. The National Planning Policy Framework will set that out, including the ways that both shaping places and building homes can contribute to radical reductions in greenhouse gas emissions and support renewable and low-carbon energy and associated infrastructure. The place-making aspect is very important. As someone from a new town, I have seen the benefit of good place-making. Of course, when my town was built, the idea of net zero was not on the scene, but we now need to take that into account too. We have consulted widely on the future homes standard, and we are currently considering further representations on solar. As I said, we will publish the NPPF before Christmas and the future homes standard early in the new year.
My Lords, as the noble Baroness just said, the Government will publish their conclusions on the NPPF by the end of this month. The consultation document suggested important new policies on housing targets, the grey belt, solar energy and wind farms. Will the House have an opportunity to debate the Government’s conclusions?
I thank the noble Lord for his contribution to all the discussion on this issue during the passage of the Levelling-up and Regeneration Bill. The NPPF will be published before Christmas and there will be an Oral Statement to both Houses, so there will be a chance to question that Statement then. I will take back his point about a debate on this subject, but of course, any noble Lord is able to submit any topic for debate, as we know.
(1 year, 4 months ago)
Lords ChamberTo ask His Majesty’s Government what progress has been made on remediating flats with dangerous cladding.
My Lords, I wish the noble Lord better—I know he is not feeling so great today. The pace of remediation has been far too slow, with only 50% of identified buildings beginning or completing works, and just 29% fully remediated. This has caused untold distress and expense for all those concerned. Further strong measures will be detailed in the forthcoming remediation acceleration plan. As set out by the Prime Minister, we are willing to legally require those responsible to assess their buildings and promptly enter remediation schemes. We will bring the full power of government to bear on this task.
My Lords, I am grateful for that reply. In the debate on Grenfell on Friday, the Minister’s colleague, the noble Lord, Lord Khan, said:
“Yesterday the Ministry of Housing, Communities and Local Government published its monthly remediation statistics. They show that, of the 4,834 residential buildings 11 metres and over in height with unsafe cladding that the department is monitoring … 50% … have still not started remediation”.—[Official Report, 22/11/24; col. 431.]
That is 250,000 families living in buildings that are not safe, in flats which they cannot sell, and who are confronted with high insurance premiums and service charges; and some of them are also confronted with unlimited remediation costs.
None of these leaseholders are responsible in any way for the difficulties they find themselves in. The NAO has now said that it may take until 2037—20 years after the Grenfell fire—for all the dangerous cladding to be put right, and we still have not identified all the dangerous buildings. I appreciate that the Minister has come to this relatively recently, but does she accept that if we do not get a grip on it, it will be the next major national scandal?
My Lords, I am very glad to say that we now have a Government, and a Deputy Prime Minister who is responsible for this area, who take this incredibly seriously. We will soon be publishing a remediation acceleration plan, which outlines the specific measures we are going to take to increase the pace of remediation, to find all the at-risk buildings quicker and to ensure that the residents at the heart of this terrible issue are supported in the process. There is no longer any excuse for those responsible failing to fix dangerous cladding on their buildings. The message is clear: use the routes we have created to get buildings fixed, and get on with the job.
The Deputy Prime Minister recently held a national roundtable with mayors, regulators and national building safety bodies to press home the urgency of this work, and most developers have now signed up now to the plan that she set out. But please be assured that we will not hesitate to use enforcement measures, and we have provided local authorities with funding to undertake the enforcement necessary.
(1 year, 4 months ago)
Lords ChamberI thank the noble Lord for his comments. My honourable friend Minister McMahon is very clear that we need to set up a fairer funding settlement for local government. It is our choice to do it this way, rather than by a complicated and time-consuming reform of council tax. In this year’s funding settlement, the noble Lord will hear news about reshaping the way that funding is distributed, and there will be further news on it in the spending review next year.
My Lords, further to the questions posed by the noble Lords, Lord Clarke and Lord Tyrie, if the Government are not prepared to do a wholesale revaluation, and I understand why, could they not at least introduce two new higher bands of council tax to produce more revenue for social care?
The noble Lord has made this point in the House before. It is a good point; it needs to be considered alongside further reform of council tax. That is not our priority at the moment, but when it comes to be done, I am sure that his point will be taken on board.
(1 year, 4 months ago)
Lords ChamberMy Lords, if Gypsies and Travellers are not to camp illegally then, of course, authorised sites must be provided by local councils. After legislation was introduced some 50 years ago, there was a count of how many Traveller and Gypsy caravans there were in England, and the answer was 8,045. There are now 20,000 authorised sites, but 25,000 Traveller and Gypsy caravans. What is behind this increased demand for a nomadic Gypsy and Traveller lifestyle?
The noble Lord will know that we face the most acute housing crisis this country has ever had. I cannot help but feel that the issue of further caravan provision is partly to do with that. However, there is a difference between that and the culturally specific provision that needs to be made. I cannot answer directly his question about the numbers, but there may be some further insight in the department. I will ask that question and write to him if there is more information.
(1 year, 5 months ago)
Lords ChamberMy Lords, there are multiple reasons why properties may be empty, but it is important that we bring as many homes as possible into use. Councils are being given greater powers to charge additional council tax for empty properties, and I know that they will be looking very carefully at the stock of housing to make sure that it is brought into use as quickly as possible. We are also looking at things such as compulsory purchase order powers and so on. Councils already have those but it is very important that we give councils as many tools in their armoury as possible to prevent houses falling into dereliction or simply being left empty because they have been bought as investments and are not let out or used.
My Lords, the Minister said a few moments ago that she could not anticipate the Budget Statement, but did not the Sunday Times do that yesterday, with an authoritative leak that local authorities are to spend £1 billion more on council houses? I welcome that, but how confident is she that there is enough capacity in the construction workforce to respond to that demand?
The noble Lord makes an important point. I will not comment on leaks, to the Sunday Times or anywhere else, but I have been talking extensively with the development industry about skills in that area, not just for traditional methods of construction but to deal with modern methods of construction and the whole range of new skills that we will need to fit properties to make sure that they are net zero. We are looking right across the board at that and working with the construction industry to see what needs to be done to help it develop the level of skills that we know we are going to need.
(1 year, 5 months ago)
Lords ChamberMy Lords, I too am grateful to the noble Baroness, Lady Tyler, for initiating this debate, the importance of which was underlined by the sheer volume of the high-quality briefing that we have all had for it. There is a fairly common analysis in those representations: declining funding for the sector over many years, leading to delays in assessment and then unmet need, in turn putting pressure on carers, aggravated by workforce pressures, which is made worse by poor pay and conditions for the workforce. The whole problem is compounded by decades of indifference by successive Governments.
In the time available I want to focus on young carers. In another place, I met a group of impressive young people, Andover Young Carers. They were different from older carers. Older carers know that they are carers; they see themselves as carers. These young carers did not see themselves as carers at all but as brothers and sisters, sons and daughters, and grandchildren. They looked after their relative because that is what they had always done; for them, that was life. Unlike older carers, they had never been non-carers. A further difference was that these young people were coping with the demands of full-time school and college, and at the same time coping with the challenges of the transition from child to adult. Their needs are very different, and I hope that we will not forget them in the short debate today.
The 2021 census showed over 50,000 young carers caring for over 50 hours a week—that is more than the standard working week. Worryingly, within that figure of 15,000, 3,000 were aged between five and nine. The Carers Trust has shown that those young carers at school are at risk of a poorer attendance record and lower academic achievement, and also more liable to social isolation and, sadly, bullying.
What do we do about it? The APPG of which I was the vice-chairman did an inquiry, and we met lots of young carers last year. They told us that, on average, it took three years before their needs were identified and up to 10 years before some of them even got support. That is inexcusable. They also told us that that support came only when they reached absolute crisis point, so we need to identify their needs much earlier, downstream. There needs to be consultation between the various settings of adult services, children’s services and education. There is a memorandum of understanding called No Wrong Doors for Young Carers, which is designed to improve joint working between adult services, children’s services, integrated care boards and other statutory organisations. Despite a requirement for local authorities to have such joint working arrangements in place, recent research by the Carers Trust found that only 7% of local authorities appear to have done so. I will ask the Minister just one question. Does she agree that all local authorities should sign up to that memorandum so that young carers get the support they need?
(1 year, 8 months ago)
Lords ChamberMy Lords, there is a lot to welcome in what the noble Baroness has said. I welcome the reintroduction of housing targets, unwisely abandoned by my party 18 months ago. I welcome the flexibility on RTB; receipts for streamlined planning application; cost recovery on planning application; and the long-term housing strategy, on which I hope the Minister will consult widely, particularly with the recent Church document.
On neutrality, what the Minister sounds as if she wants to do is very much like what she voted down last September. Labour said in its manifesto that it would
“implement solutions to unlock the building of homes affected by nutrient neutrality”.
We await that, but the key question, and the missing element in this, is resources. We all want to do what the Minister has said, but her department is unprotected. The forecast is for a 1.6% to a 2.9% reduction every year for the next three years. What she has announced is going to cost a lot of money. I welcome a reinvigorated council house programme. She wants more affordable houses and fewer houses for sale, and within affordable housing she wants more social houses on social rents. That is going to cost. How confident is she that she has the resources? When she goes to the Chancellor, might not she say what she said yesterday? She said that
“if we cannot afford it, we cannot do it”.—[Official Report, Commons, 29/7/24; col. 1036.]
I thank the noble Lord for his comments and question. The point is that, without growing the economy, as we need to do, we will not be able to afford any of the public services that we need. That is the first priority of this Government. But we have an immediate housing crisis, so we will do what we can to solve it now, and develop things further as we begin to create the economic growth we need to solve it. But it is not just a problem of government funding; we need to create that affordable housing. The noble Lord will be as aware as I am that it has been more and more difficult to deliver the social and affordable housing that we need through things like Section 106 agreements and other forms of planning gain, so we will need to assist with that as well. But it is a priority that we tackle the homelessness crisis now and we start on the journey of improving the housing supply, because that is the only long-term way to solve the housing crisis in this country. It will take some time to develop the economic background to do that fully, but we can make a start right now.