Temporary Accommodation Costs

Lord Young of Cookham Excerpts

Wednesday 31st January 2024 Lords Chamber

[Baroness Scott of Bybrook (Con)]

I think I have already answered most of that. We have increased the amount of money going to the base budgets of local authorities across the country this year. We are giving money to prevent homelessness—which is as important as dealing with the issue. As I have said, we are giving money to councils so that they can build better properties and access better temporary accommodation. We are doing all we can in what has been quite a difficult economic climate. However, we are coming out of it, things are beginning to look better, and houses are being built.

[Lord Young of Cookham (Con)]

My Lords, my noble friend will not be surprised to hear that I think we should be building a lot more houses. In the meantime, should we not consider amending the Renters (Reform) Bill, now in another place, to increase substantially the amount of long-term institutional investment in private renting and relieve some of the pressures on the market that we have been hearing about?

[Baroness Scott of Bybrook (Con)]

My noble friend is absolutely right. The Government will support institutional investment in the private sector as well as in the social rented sector, provided, of course, that they stick to the rules and we can regulate them. That includes Build to Rent homes, which can boost supply and drive up standards. We are offering support through the £1.5 billion levelling up home building fund being delivered through Homes England to provide loans, equity investment and joint ventures to encourage such institutional investment companies and to support new Build to Rent developments. I think they will be a growing part of the market.

Private Rented Sector Ombudsman

Lord Young of Cookham Excerpts

Thursday 18th January 2024 Lords Chamber

[Baroness Scott of Bybrook (Con)]

The noble Baroness asked a number of questions. First, we have sought extensive procurement and legal advice on this, and we are confident that the approach we are taking is in line with procurement regulations. I can only reiterate that this work is still in its very early stages, and no decisions have been made. Of course, we will talk to stakeholders throughout the whole of the process. If the noble Baroness or any other noble Lord would like to meet me and my team, I am happy to do so as we go forward.

Secondly, the question on the interaction between schemes is very interesting. We envisage that, where a complaint covers both landlords and letting agents, the separate schemes will work together to triage the complaint effectively and, if necessary, have a joint investigation. Importantly, we want to make sure that, where it is not clear which scheme a tenant should complain to, there is no wrong access point. We will work together to make sure that the tenant gets the service that they require.

[Lord Young of Cookham (Con)]

My Lords, I too welcome the Bill’s proposal to establish a private rented sector ombudsman service. There will be an opportunity when the Bill reaches your Lordships’ House to discuss the issues raised by the noble Baroness, Lady Warwick, as to where this service should best be provided. What powers will the ombudsman have to enforce his or her findings? Who will bear the cost?

[Baroness Scott of Bybrook (Con)]

I thank my noble friend. He is absolutely right: the Bill will come to this House shortly and I am sure we will have many more debates on this issue. As far as powers are concerned, the Bill says that the ombudsman’s enforcement powers will be to expel the landlord from membership of the organisation unless they deal with their obligations and then rejoin, and they will be liable for civil and, in the worst cases, legal penalties if they continue to operate without that membership. Those are quite strong powers that will back up local authorities’ powers. On the scheme’s funding, it will be a landlord membership scheme, as is the Housing Ombudsman scheme. Membership of that scheme is at £5.75 per unit.

Long-term Plan for Housing

Lord Young of Cookham Excerpts

Thursday 11th January 2024 Lords Chamber

[Lord Young of Cookham (Con)]

My Lords, there is much to welcome in the Statement—namely, the increase in planning resources—but it represents a major change in government housing policy, which was not there when the levelling-up Bill was introduced. As the noble Baroness, Lady Taylor, said, this was introduced to head off a rebellion in the other place. As a result, the targets are advisory, not mandatory, and we are already seeing a result—not just in plans being withdrawn but in South Oxfordshire doing something unheard of in planning by deleting from its plan for development sites that had already been included. We may end up with more up-to-date plans eventually, but they will have fewer homes in them than the country needs. How will a democratically elected Government, committed to building 300,000 new homes a year, deliver that if they are totally dependent on the good will of local authorities that do not share that commitment?

[Baroness Penn (Con)]

My Lords, we announced a number of different changes at the end of last year. However, as I said to both the noble Baronesses, the standard method for assessing housing need remains the starting point for local authorities. It is only in exceptional circumstances that we would expect them to move away from that, and that must be well evidenced. In such circumstances, where it is not appropriate for that area, there is a way and method for those local authorities to put forward a well-considered and well-thought-out local plan, which would have a much better chance of being delivered than something that does not command local support and does not suit the needs of the local area.

We have made other changes that may result in the changes that my noble friend talked about—for example, by removing the buffers needed on land supply set out in local plans. They go over and above the amount of land needed to deliver against the assessed housing need for an area. Where local authorities have done the right thing, put a plan in place and identified the land they need to deliver against the local housing need in their area, it is not the right way forward to require those local authorities to hold a 5% or 10% buffer on top.

Leasehold Reform

Lord Young of Cookham Excerpts

Thursday 11th January 2024 Lords Chamber

[Baroness Scott of Bybrook (Con)]

My Lords, I will not apologise; the measures in the Bill will benefit owners of flats and houses alike. The majority of houses have always been provided as freehold, and there are few justifications for building new leasehold houses, so the Government will ban them, other than in exceptional circumstances. However, flats have shared fabric and infrastructure and therefore require some form of arrangement to facilitate management. This has been facilitated by a lease. None the less, the Government recognise the issues in the leasehold system and remain committed to reinvigorating the commonhold system so that developers and home owners have an alternative to leasehold ownership.

[Lord Young of Cookham (Con)]

My Lords, further to the question from the noble Lord, Lord Kennedy, the Secretary of State made his views absolutely clear when he said:

“I don’t believe leasehold is fair in any way. It is an outdated feudal system that needs to go”.


But the Bill does not do that—it does not even mention commonholds. When I asked about this in the previous exchange, I was told by the noble Baroness, Lady Penn:

“When it comes to reforms to commonhold, we continue to consider the Law Commission’s report in detail to find the best way forward”.—[Official Report, 30/11/2023; col. 1180.]


The commission reported in 2020. When will we learn the Government’s conclusion?

[Baroness Scott of Bybrook (Con)]

I assure my noble friend that we remain committed to continuing our leasehold and commonhold reforms, and the Bill is a major step forward. The Government remain committed to a widespread take-up of commonhold for flats, and we have been reviewing the Law Commission’s recommendations to reinvigorate commonhold as a workable alternative to leasehold, alongside working with the Commonhold Council to consider practical steps to prepare consumers and the markets.

Social Housing: Mould

Lord Young of Cookham Excerpts

Wednesday 10th January 2024 Lords Chamber

[Baroness Scott of Bybrook (Con)]

My Lords, there are differences between the rented housing tenures. Almost half of private rental landlords own a single property and the vast majority own fewer than five so, unlike social housing landlords, very few will have in-house or contracted repair and maintenance teams, which makes it more difficult. We have to consider proportionate timescales in legislation for the private rented sector. However, we are taking action to improve the safety and decency of private rented homes through the Renters Reform Bill, which will be in this House shortly. We have introduced an amendment to the Bill to apply a decent homes standard to the private rental sector for the first time and to give local councils enforcement powers to deal with non-decent homes. As I say, that Bill will be introduced to this House shortly. We will also set up a new private rented sector ombudsman through that Bill, which will also have extra powers.

[Lord Young of Cookham (Con)]

My Lords, I welcome my noble friend back to the Dispatch Box. I welcome the speed with which the Government have implemented Awaab’s law and issued the consultation documents. Is there not now a dilemma facing social housing tenants who want their landlord to effect repairs? They can either go to the social housing regulator or to the Housing Ombudsman, which have different regimes but overlapping powers. Will my noble friend issue guidance so that social housing tenants can use the new powers the legislation has given to them?

[Baroness Scott of Bybrook (Con)]

My noble friend is right; this is all about communication, to make sure that tenants know what to do if they have an issue with their property. We have had a number of communications and marketing campaigns, such as Make Things Right, and the latest one is just being completed. That makes sure that all tenants know that, first, they should go to their social landlord, and if they do not get the right answer—or any answer, as sadly happens in some cases —they must go to the ombudsman. The social housing regulator will deal not with individuals but with bigger issues relating to individual housing associations.

Homelessness

Lord Young of Cookham Excerpts

Monday 18th December 2023 Lords Chamber

[Lord Bird (CB)]

Are the Government aware—

[Lord Young of Cookham (Con)]

My Lords—

[The Earl of Courtown (Con)]

My Lords, there is plenty of time. Can we have the noble Lord, Lord Bird, and then my noble friend Lord Naseby?

--- Later in debate ---

[Lord Young of Cookham (Con)]

My Lords, is my noble friend aware of the scheme that Westminster City Council has run for the last few years whereby there is a 24-hour helpline? Anyone who sees a rough sleeper can call that line and an experienced outreach worker will go out, contact that rough sleeper and try to persuade them to come into a hostel and help rebuild their life. Should not this sort of scheme be replicated throughout the country if the Government are to hit their target of ending rough sleeping by the end of next year?

[Baroness Penn (Con)]

My Lords, I am aware of the scheme. In fact, I have been out with some of the charities that respond to those reports and go and seek out people the next day and offer them further help and support. I think it is a very effective scheme, and I am sure we would want to look at what can be done to see it spread further if it is not available in different forms across the country.

Local Enterprise Partnerships: Funding

Lord Young of Cookham Excerpts

Monday 11th December 2023 Lords Chamber

[Baroness Penn (Con)]

I assure the noble Lord that the Government are confident that, in integrating the work done by LEPs into local authority or combined authority areas, we will not lose the benefits of the great work done by LEPs since their establishment. The aim is to integrate that with local democratic accountability. It is part of our broader agenda on devolution and we will continue to see some of that great work delivered over similar areas to now.

[Lord Young of Cookham (Con)]

My Lords, is it not the case that, since the LEPs were set up in 2011, more and more of their functions have been transferred to mayoral authorities and combined mayoral authorities, and have been included in devolution deals, many more of which are still on the way? Is that not a more democratic solution than the unelected LEPs?

[Baroness Penn (Con)]

My noble friend is absolutely right. In taking this decision, we conducted an information-gathering exercise with local authorities and LEPs to understand the impact of our plans. That identified great overlap between some of the functions discharged by LEPs, local authorities and combined authorities, as well as confirming a high level of integration of LEP functions in mayoral combined authorities. That is why we are taking the direction of travel that we are. The Government’s view is that there is likely to be scope for both greater join-up and efficiencies, and clarity for the private sector, by these functions being discharged in a joined-up way, and greater local accountability.

Home-ownership Rates

Lord Young of Cookham Excerpts

Wednesday 6th December 2023 Lords Chamber

[Baroness Penn (Con)]

My Lords, since 2010, more than 2.5 million additional homes have been delivered and, since 2018, we have had four of the highest annual rates of housing supply of the last 30 years. We are building more homes, because increasing supply is fundamental to helping more people on to the housing ladder—but there is more to do. We have our new affordable homes programme, which will deliver even more affordable homes to buy and for rent to help people on to the housing ladder.

[Lord Young of Cookham (Con)]

My Lords, further to my noble friend Lord Naseby’s Question, I point out that average house prices in London are now 13 times average earnings, and multiples have gone up throughout the country. As a result, many people have to rent, even though they would prefer to be home buyers, because they cannot afford the deposit. Many now pay more in rent than they would on a mortgage. Therefore, in addition to the schemes mentioned by my noble friend the Minister, do we not need some more ambitious schemes to enable more of these people to achieve their ambition of home ownership?

[Baroness Penn (Con)]

My Lords, the Government completely recognise the issue that my noble friend has set out. The mortgage guarantee scheme is relatively new; it opened in April 2021 and was recently extended to June 2025. It extends the availability of 95% mortgages, which helps with that deposit issue because it reduces the amount that people need to save for their deposits. More than 39,000 households have been helped through that scheme already, and I expect many more to be helped in future. To give a sense of scale on the lifetime ISA and its predecessor—the Help to Buy ISA, our other main scheme to help with saving for deposits—I say that under the Help to Buy ISA we supported over 550,000 property completions, so these are not insignificant support schemes to help people in these areas.

Residential Leasehold for Flats

Lord Young of Cookham Excerpts

Thursday 30th November 2023 Lords Chamber

[Baroness Penn (Con)]

I do not draw that conclusion. Leasehold reform is complex. We have consulted widely and are taking time to get things right. I understand the desirability of bringing forward these clauses as soon as possible for Parliament’s scrutiny and that is what the Government intend to do.

[Lord Young of Cookham (Con)]

My Lords, I very much welcome the provisions of the leasehold Bill, which provide a better balance between the interests of freeholders and leaseholders. However, the Bill does not do what Michael Gove said it would. He said:

“I don’t believe leasehold is fair in any way. It is an outdated feudal system that needs to go. And we need to move to a better system and to liberate people from it”.


He wanted to replace leasehold with commonhold, but the Bill does not even mention commonhold. So will my noble friend be surprised if some of us seek to amend the Bill to deliver what her Secretary of State actually wants?

[Baroness Penn (Con)]

My Lords, I have tried to learn not to be surprised by any amendments tabled to government Bills by your Lordships’ House, but I would like to reassure my noble friend that this Bill is focused on helping leaseholders now by making existing leases fairer and more affordable. We have focused on legislating where we can make a genuine improvement to leaseholders’ daily lives right away. For example, we are making it cheaper and easier for leaseholders to purchase the freehold of their building or a 999-year lease on their property and take control of their building’s management from the freeholder. When it comes to reforms to commonhold, we continue to consider the Law Commission’s report in detail to find the best way forward and we are committed to taking forward that additional work.

Levelling Up: Project Delivery

Lord Young of Cookham Excerpts

Thursday 23rd November 2023 Lords Chamber

[Baroness Penn (Con)]

My Lords, the report itself highlights a number of issues that have delayed some of the delivery, including rising costs and inflation and other outside factors. That is why we are working with local authorities to address those issues. As I say, in the eight months since the report, the department has paid over £1.5 billion of further funding out to local places. We have already seen several projects completed or near completion, which are making a difference to the lives of people in those communities.

[Lord Young of Cookham (Con)]

Further to the Question asked by the noble Lord, Lord Kennedy, the NAO was not entirely critical of my noble friend’s department. It did say that evaluation was better and that the grant management process had improved. But it also said that a number of projects would not be completed by the proposed deadline. Where there are good reasons for that delay, will there be some flexibility in those deadlines? Otherwise, some very worthwhile projects will be abandoned.

[Baroness Penn (Con)]

I thank my noble friend for drawing out some of the positives of that report, as there were indeed some. He is right that, while we are keen to see the delivery impact of this investment as soon as possible, there have been some delays. For example, we have talked about inflationary pressures, so for the levelling-up fund, the prospectus for both rounds 1 and 2 said that we expected all funding provided to be spent by March 2024 and March 2025 respectively. However, those deadlines can be extended by one year on an exceptional basis. Similarly, for the future high streets fund, we have given a six-month extension for the spend deadline, taking it to 30 September next year, giving local places additional time to deliver their transformational projects.