Draft Mayoral and Police and Crime Commissioner Elections, Recall Petitions and Referendums (Ballot Secrecy, Candidates and Undue Influence) Regulations 2023 Draft Representation of the People (Franchise Amendment and Eligibility Review) Regulations 2023 Draft Representation of the People (Postal and Proxy Voting etc.) (Amendment) Regulations 2023 Draft Local Elections (Northern Ireland) Order 2023 Draft Representation of the People and recall Petition (Northern Ireland) (Amendment) Regulations 2023

Baroness Maclean of Redditch Excerpts

Tuesday 12th September 2023 General Committees

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

I beg to move,

That the Committee has considered the draft Mayoral and Police and Crime Commissioner Elections, Recall Petitions and Referendums (Ballot Secrecy, Candidates and Undue Influence) Regulations 2023.

[The Chair]

With this it will be convenient to consider the draft Representation of the People (Franchise Amendment and Eligibility Review) Regulations 2023, the draft Representation of the People (Postal and Proxy Voting etc.) (Amendment) Regulations 2023, the draft Local Elections (Northern Ireland) Order 2023 and the draft Representation of the People and Recall Petition (Northern Ireland) (Amendment) Regulations 2023.

[Rachel Maclean]

It is a great pleasure to serve under your chairmanship, Sir James.

[The Chair]

Order. It is very kind of you, but I am not Sir James—perhaps one day; you never know. Unless you know something that I do not, just Mr Gray will be fine.

[Rachel Maclean]

Thank you for correcting me, Mr Gray. Clearly there is something wrong with the universe; let us hope that it is now listening to my plea. It is a pleasure both to serve under your chairmanship and to bring forward these important regulations.

The Government are committed to protecting the integrity of our democratic process, and we have delivered on that commitment. Last year, Parliament passed the Elections Act 2022, which includes safeguards to prevent individuals from exploiting the absent voting process and stealing votes. Today I am delighted to bring forward five statutory instruments that flow from that Act. I will talk through each instrument in detail, turning first to the draft Representation of the People (Postal and Proxy Voting etc.) (Amendment) Regulations 2023.

The Elections Act introduced a requirement to reapply for a postal vote at least every three years in Great Britain, as a result of which identifiers—in particular, the elector’s signature—will also be updated. This will help electors to stay alert about arrangements they have in place, ensure that a person’s eligibility to vote by post is reviewed on a regular basis, and reduce the risk of redundant postal ballots being issued. I appreciate that it will mean a change for long-term postal voters, but empowering them to stay informed and in control of- their vote is a positive step. The measure will help prevent voters from being unduly pressured into having a postal vote and using it under duress. To make the transition as smooth as possible, this statutory instrument allows existing long-term postal voters’ arrangements in Great Britain to continue until 31 January 2026, giving them more time to make a fresh application under the new system. Electoral registration officers will be required to make those whose postal vote is due to expire aware in advance and outline the new application process.

The instrument also introduces a limit to the number of electors for whom a person may act as a proxy. That limit is four, of which no more than two can be domestic electors—that is, an elector who is not registered as an overseas or service voter. The regulations will update all relevant prescribed forms to make sure the new limits are set out. Two of the instruments that I will turn to shortly will implement this limit in Northern Ireland. There is a concern that under existing arrangements, electors can be coerced into appointing a proxy to control how they vote. The new arrangements will ensure that the scope for fraud is reduced by limiting the number of electors that a person may act as a proxy for.

[Ian Lavery (Wansbeck) (Lab)]

Will the Minister clarify a point? Is there any Government evidence to prove that there has been interference with proxy and postal voters? It seems to me that the change to the legislation is based on something. Is there any tangible evidence?

[Rachel Maclean]

That is a valid question. The hon. Gentleman will recall that there have been multiple parliamentary debates in both Chambers on the principles of the Elections Act. That Act was passed by both Houses and we are now implementing these detailed proposals. I refer him to those debates for much more information than I am able to provide in this narrowly focused Committee.

The regulations also introduce an identity check at the point of application or reapplication for a postal or proxy vote, mirroring similar checks that are already in place in Northern Ireland. The elector will be required to provide their national insurance number, which will be checked against Department for Work and Pensions data. Where the elector cannot provide that information, they will need to give a reason as part of the application. Where an individual does not have a national insurance number, the electoral registration officer may request other specified documentary evidence or an attestation to demonstrate their identity.

In addition, we are committed to ensuring that our elections are modern and accessible by creating a new digital route for electors in Great Britain to apply online to vote by post or by proxy. The new digital system will remove the reliance on cumbersome paper-based processes and will operate similarly to the register to vote service, passing absent vote applications on to the relevant electoral registration officers for processing. The revisions of postal and proxy rules will apply to all elections reserved to the UK Government in Great Britain, as will the online application service.

[Ian Paisley (North Antrim) (DUP)]

We already have this digital process in Northern Ireland, as the Minister knows. It is very good, but there is an issue; when someone loses their digital number, it is not like resetting a lost password on a computer—the person actually has to make contact with the Electoral Office for Northern Ireland and it can take days before that digital number is returned to them. Is there any way of speeding up that process or enabling instantaneous access to a digital number, given that if it is the day before the election, that person essentially loses their vote?

[Rachel Maclean]

I thank hon. Gentleman for raising that very relevant point. Of course, all of us in this place are deeply concerned with those practicalities of voting. We have all been knocking on doors and have all experienced glitches in systems, which is why we are making improvements. I am sure that he will be aware that I am not normally the Minister leading on this policy area. I am standing in for the Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for Bishop Auckland (Dehenna Davison), who is unfortunately not well today, but I am happy to pass that request to her to see whether she can continue to work with him and the devolved Administration to tackle some of the problems that he has rightly raised.

The proxy voting rules will also apply in Northern Ireland and the digital service will be introduced in Northern Ireland at a later time. Two of the instruments that I bring before the Committee—the draft Local Elections (Northern Ireland) Order 2023 and the draft Representation of the People and Recall Petition (Northern Ireland) (Amendment) Regulations 2023—make provisions that are specific to Northern Ireland elections. It is necessary to split the provisions into two instruments, as Northern Ireland local elections changes must be made by a separate Order in Council. In addition to implementing the proxy voting limit to a maximum of four people, and a number of smaller measures to ensure consistency across elections and recall petitions, the two statutory instruments relating to Northern Ireland also make two Northern Ireland specific changes.

The Elections Act places a duty on the chief electoral officer to provide dates of birth lists to polling stations in Northern Ireland for the purposes of checking a voter’s or proxy’s exact date of birth in specific circumstances. These instruments ensure the protection of the sensitive personal information that the lists contain, so that only the police and the courts may access them. In a further Northern Ireland specific measure, the existing provisions allowing retention of entries on the Northern Ireland register following a canvass is being extended. This will avoid a cliff-edge loss of electors from the register. Data checking has given the chief electoral officer a high degree of confidence that the voters concerned are entitled to remain on the register, and the Electoral Commission is supportive of extending the period of retention.

I turn to the EU voting and candidacy rights instrument, the draft Representation of the People (Franchise Amendment and Eligibility Review) Regulations 2023. The Elections Act amended the franchise to reflect the UK’s new relationship with the EU and protect the rights of UK citizens living in EU countries, and this moved us to the principle of a mutual granting of rights through agreements with individual EU member states. Qualifying EU citizens from EU member states that have bilateral agreements with the UK will have the right to vote and stand in relevant elections.

We also preserve the existing rights of all EU citizens who choose to make the UK their home prior to the end of the implementation period. As such, EU citizens with retained rights will continue to have the right to vote and stand. [Interruption.] I would like to add for the record that it is good to welcome the shadow Minister, the hon. Member for Vauxhall to her place. I know she has missed my opening remarks, but she can refer to Hansard to see what has been read into the record. The long-standing voting rights of Irish citizens remain unchanged. Likewise, the voting rights of Maltese and Cypriot citizens, as Commonwealth citizens, are not affected by these changes.

On ongoing registration, this instrument provides for a new registration process for EU citizens, which includes clear information about the new eligibility criteria for electors. Persons applying under the retained rights criteria will have to make a legal declaration that they have been legally resident in the UK since the end of the implementation period. Registration officers will be able to accept that declaration as sufficient evidence of eligibility, or if they deem it necessary, they will be able to require further information and evidence from the individual to make a determination.

Electoral registration officers have a legal duty to ensure that the electoral register remains accurate, so the instrument requires them to conduct a one-time review to determine the eligibility of all registered EU citizens. The bespoke eligibility review process is designed to be fair and transparent for review subjects, and to minimise burdens on registration officers. As far as possible, it has been based on, and benchmarked against, existing practice and processes.

Initially, registration officers will use data already available to them to confirm an elector’s continued eligibility without the need for an elector to take any action. Where a registration officer is unable to confirm eligibility using existing data, the instrument requires them to contact the elector to request the information necessary to determine eligibility. In the event of no response, a registration officer must make at least three attempts to contact the elector in writing and at least one attempt to contact the elector in person before they may determine them to be ineligible. All those reviewed will be notified of the franchise change and the review outcome, with the contents of all review communications prescribed for consistency.

Where a person is deemed ineligible and removed from the register on the basis of non-response, they will be invited to reapply if they believe they are eligible to do so. We anticipate that the end-to-end review process will take up to three months to complete. Registration officers will have a nine-month implementation window, from 7 May 2024 to 31 January 2025, to undertake the one-time review. The SI requires registration officers to report on the operation of the review process to the Electoral Commission upon completion.

The instrument will apply only to polls that are reserved to the UK Government. That includes UK parliamentary elections, all local elections in England, and police and crime commissioner elections in England and Wales. A separate instrument will apply the franchise changes to Northern Ireland elections, and that was laid in the House on 4 September.

I turn to the draft Mayoral and Police and Crime Commissioner Elections, Recall Petitions and Referendums (Ballot Secrecy, Candidates and Undue Influence) Regulations 2023. This instrument is largely technical in nature and updates the relevant electoral conduct rules to implement measures in the Elections Act 2022 and the Ballot Secrecy Act 2023.

The Elections Act updated the existing offence of undue influence for reserved elections and referendums, including UK parliamentary and local government elections, and all elections in Northern Ireland. The revised offence better protects voters from improper influences to vote in a particular way, or to not vote at all. It also provides clearer legal drafting to assist authorities in enforcing the offence. The purpose of the regulations is to apply the updated offence to police and crime commissioner elections, recall petitions, local authority referendums and neighbourhood planning referendums.

Political intimidation and abuse have no place in our society, which is why part 5 of the Elections Act introduced a new disqualification order aimed at offenders who intimidate those who participate in public life. The order introduces a five-year ban on standing for or holding public office. The Elections Act also extended the powers of returning officers to hold a nomination paper invalid where a candidate is disqualified under the new order, and requires candidates to declare that they are not disqualified under the order. The changes applied to Northern Ireland, local and UK parliamentary elections.

The Act also amended the relevant vacancy rules, including for UK parliamentary elections, to reflect the timing of vacancies occurring as a result of the new order and to ensure that those disqualified vacate office. The SI replicates the changes for nomination for police and crime commissioner elections as well as local and combined authority mayoral elections, and updates the vacancy rules for combined authority mayors.

In addition, the Elections Act introduced a new measure to permit greater flexibility in the use of commonly used names by candidates on nomination and ballot papers. The change means that candidates can use their middle name as a commonly used name and amends the existing rules for UK parliamentary elections, elections to the Northern Ireland Assembly and local elections in Northern Ireland. The instrument makes the same change to the conduct rules for local and combined authority mayoral elections in England, and police and crime commissioner elections in England and Wales. It also amends the nomination paper completed by candidates at those polls to reflect the new provisions.

I now turn to the provisions concerning the Ballot Secrecy Act 2023; I pay tribute to my hon. Friend the Member for Peterborough (Paul Bristow)—I had thought he was behind me, but in fact he is not in the room—for his work on this important new measure. The 2023 Act introduced two new offences: the first, for a person to be with another person at a polling booth; and the second, for a person to be near a polling booth while another person is at that booth—with the intention, in both cases, of influencing that other person to vote in a particular way or to refrain from voting. The Act, which applies to UK parliamentary elections and local elections in England, as well as elections in Northern Ireland, aims to provide polling station staff with a firmer basis on which to challenge suspected inappropriate behaviour in polling stations.

The provisions complete the implementation of the Act by extending the new offence to police and crime commissioner elections in England and Wales, MP recall petitions across the UK, and local government, council tax and neighbourhood planning referendums in England. I hope that, in setting out the details of these three statutory instruments, I have enabled the Committee to appreciate their careful and considered design. I commend them to the Committee.

--- Later in debate ---

[Rachel Maclean]

It is a pleasure to respond to the shadow Minister, the hon. Member for Vauxhall, and the hon. Member for North Antrim. I thank the shadow Minister for her constructive remarks, and for her general support for our shared aim of ensuring that our elections are free and fair and that we protect them from abuse by anyone who wants to disrupt them—surely a vital task in this day and age.

The shadow Minister asked some detailed questions about the portal for the online voter application system. I assure her that we have worked closely with everybody involved in getting that up and running, but she is right to say that we need to be concerned about and get right the practical impacts. The digital service will go live when the regulations come into force. It is currently undergoing significant testing before it goes live, as we need to learn lessons from the process and ensure that it is fit for purpose. I set out in my earlier remarks how existing postal voters will transition to the new arrangements. The objective is to make applying for an absent vote more efficient for both electors and administrators; there is no difference in the principle of applying to register to vote, which we all agree and accept has been an established feature of our democracy for a long time.

It is important that the message goes out from this place that the measures will not—and there is no evidence that they will—disadvantage anybody who wishes to take part in our democracy. The provisions have been agreed on by both Houses and it is important that we send that message again today. We believe that these processes will bring time-saving benefits to administrators, and that may bring a welcome reduction in costs for those services. We anticipate that administrators will be required to process fewer paper forms as a result of the availability of the online application route. I assure the shadow Minister that grant funding was provided to local authorities in August to initiate the implementation phase of the policies, and further grant funding will be provided in April 2024 ahead of the May 2024 elections. Although we do not think the funding will be insufficient, but if it is—for example, if application volumes are higher than anticipated—local authorities will be able to apply for further funding via a justification-led bid process later in 2024.

I commend the instruments to the Committee and thank Members for their consideration of them.

Question put and agreed to.

DRAFT REPRESENTATION OF THE PEOPLE (FRANCHISE AMENDMENT AND ELIGIBILITY REVIEW) REGULATIONS 2023

Resolved,

That the Committee has considered the draft Representation of the People (Franchise Amendment and Eligibility Review) Regulations 2023.—(Rachel Maclean.)

DRAFT REPRESENTATION OF THE PEOPLE (POSTAL AND PROXY VOTING ETC.) (AMENDMENT) REGULATIONS 2023

Motion made, and Question put,

That the Committee has considered the draft Representation of the People (Postal and Proxy Voting etc.) (Amendment) Regulations 2023.—(Rachel Maclean.)

Nutrient Neutrality: Levelling-up and Regeneration Bill

Baroness Maclean of Redditch Excerpts

Tuesday 5th September 2023 Commons Chamber

[Caroline Lucas (Brighton, Pavilion) (Green)]

(Urgent Question): To ask the Secretary of State for Levelling Up, Housing and Communities if they will make a statement on the Government’s decision to use the Levelling-up and Regeneration Bill to scrap environmental protections on nutrient neutrality.

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

The Secretary of State for Levelling Up tabled a written ministerial statement yesterday on the Government’s plans, but I am happy to provide an update to the House. In proposing these amendments, we are responding to calls from local—

[Mr Speaker]

Order. May I just say that it is very good of you to offer to give that update? I decided that it was an urgent question—I expect Ministers to come to the House, as I did not think a written ministerial statement was the way to inform the House.

[Rachel Maclean]

I am delighted to be here to answer this urgent question.

In proposing the amendments, we were responding to calls from local councils, which want the Government to take action to allow them to deliver the homes their communities need. At present, legacy EU laws on nutrient neutrality are blocking the delivery of new homes, including in cases where planning permission has already been granted. This has affected home building of all types, whether that is the redevelopment of empty spaces above high street shops, affordable housing schemes, new care homes or families building their own home. The block on building is hampering local economies and threatening to put small and medium-sized local builders out of business. Nutrients entering our rivers are a real problem, but the contribution made by new homes is very small compared with that of other sources such as agriculture, industry and our existing housing stock, and the judgment is that nutrient neutrality has so far done little to improve water quality.

We are already taking action across Government to mandate water companies to improve their waste water treatment works to the highest technically achievable limits. Those provisions alone will more than offset the nutrients expected from new housing developments, but we need to go further, faster. That is why, as well as proposing targeted amendments to the habitats regulations, the Government are committing to a package of environmental measures. Central to that is £280 million of funding to Natural England to deliver strategic mitigation sufficient to offset the very small amount of additional nutrient discharge attributable to up to 100,000 homes between now and 2030. We have also announced more than £200 million for slurry management and agricultural innovation in nutrient management and a commitment to accelerate protected site strategies in the most affected catchments.

In our overall approach, there will be no loss of environmental outcomes, and we are confident that our package of measures will improve the environment. Nutrient neutrality was only ever an interim solution. With funding in place, and by putting these sites on a trajectory to recovery, we feel confident in making this legislative intervention.

[Caroline Lucas]

I find it extraordinary that the Minister can stand there and make that statement with a straight face. Over the past eight years, Ministers have stood at that Dispatch Box and promised time and again that leaving the European Union would not lead to a weakening of environmental standards. Those of us who raised our concerns have repeatedly been told that we were scaremongering. As recently as 12 June, the Solicitor General said in relation to the Retained EU Law (Revocation and Reform) Bill that

“we will not lower environmental protections.”—[Official Report, 21 June 2023; Vol. 734, c. 828.]

Yet here we have it: proposals to unpick the habitats directive and to disapply the nutrient neutrality rules that protect our precious rivers and sensitive ecosystems.

The Office for Environmental Protection has itself made clear that the proposals

“would demonstrably reduce the level of environmental protection provided for in existing environmental law. They are a regression.”

I underline that point to the hon. Member for Redcar (Jacob Young), who is chuntering from his seat on the Front Bench. The proposals go directly against the “polluter pays” principle by forcing the taxpayer, rather than house builders, to foot the bill for mitigating increased water pollution from house building in environmentally sensitive areas. What is particularly infuriating is that, as the name suggests, the nutrient neutrality rules were not even about improving our environment, but simply about trying to prevent pollution from getting worse.

Let me ask the Minister some important questions. On transparency, will the Government follow the OEP’s call for them to make a statement, as required by section 20(4) of the Environment Act 2021, admitting that they can no longer say that the Levelling-up and Regeneration Bill would not reduce environmental protections in law? Will the Minister explain how the Government will meet their objectives for water quality and protected site condition when they are at the same time weakening environmental law? What advice did Ministers receive from Natural England before the amendments were tabled? Will she explain why there has there been a complete lack of consultation with environment groups? Will she also explain what consultation there was with house builders, whom Members will have noticed are cock-a-hoop about the announcement and the subsequent boost to their share prices?

Will the Minister admit that it is a false choice to pit house building against environmental protection when there are successful projects under way to address nutrient pollution? Will the Government provide evidence for their unsubstantiated claim that 100,000 homes are being delayed as a consequence of these rules? Will she recognise that money, which can easily be taken away at a later stage, is not the same as a legal requirement to stop pollution getting into our rivers?

[Rachel Maclean]

I thank the hon. Lady for her long list of questions; I am happy to respond to all of them in detail. On our approach, I stand by what I and the Government have said: we stand by our pledges to the environment, and we do not accept that, as she stated, we will weaken our commitment to the environment at all. It is important to consider what we are talking about here, which is unblocking 100,000 homes that add very little in terms of pollution. To be clear, our approach means that there will be no overall loss in environmental outcomes. Not only do the measures that we are taking address the very small amount of nutrient run-off from new housing, but at the same time, we are investing in the improvement of environmental outcomes. We do not agree that this is regression on environmental standards. We are taking direct action to continue to protect the environment and ensure that housing can be brought forward in areas where people need it.

The hon. Lady asked about engagement. Ministers across Government, the Secretary of State and I have had numerous meetings with all parties involved, and we have had meetings with environment groups as part of Government business. It is worth the House noting the significant enforcement steps taken on the water companies by colleagues at the Department for Environment, Food and Rural Affairs. Since 2015, the Environment Agency has concluded 59 prosecutions against water and sewerage companies, securing £150 million in fines. The regulators have recently launched the largest criminal and civil investigations into water company sewage. We are taking action against water companies to protect our rivers, leave the environment in a better state than we found it, and build the affordable houses that the country so desperately needs, including in her constituency.

[Philip Dunne (Ludlow) (Con)]

The Minister will recognise that I and many other colleagues on the Government side of the House share the admirable objectives of the hon. Member for Brighton, Pavilion (Caroline Lucas) in ensuring that the water quality of our rivers improves year by year under the Government and their successors. The Minister’s proposals to amend the Levelling-up and Regeneration Bill are not about damaging the status of our rivers; as I understand it, they are about dealing with a particular and specific interpretation of the EU habitats directive by the European Court of Justice in connection with a case in Holland prior to the time we left the EU. If that is the case—she has referred to the litigation and measures she has undertaken—does she agree that in special areas of conservation such as the River Clun catchment in my constituency, where no planning consent has been granted for nine years, these measures will help to unlock that while preserving the quality of the river in the catchment?

[Mr Speaker]

You have taken longer than the person who asked the question.

[Rachel Maclean]

I thank my right hon. Friend very much. He is right in his observation that this has been a judgment imposed on the United Kingdom after we left the European Union. This is not a long-standing convention in any shape or form. He is also right to highlight the measures we are putting in place to protect our rivers and the environment more broadly. We are also putting in place a substantial package to help farmers to farm more sustainability, manage their slurry infrastructure more effectively and be able to drive the circular economy in farming that we all want. He mentioned specific catchments in his area. We have committed to bring forward a Wye catchment plan shortly, which I hope will address the issues he is referring to.

[Mr Speaker]

I call Clive Betts. [Interruption.]

--- Later in debate ---

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

Thank you, Mr Speaker. As a result of the Government’s failure over many years to make decisive progress in tackling the main sources of problem nutrients, namely farming and waste water treatment works, the requirements for nutrient neutrality in sensitive river catchments present a challenge to securing planning permission for new housing development. It is therefore right in Labour’s view that the operation of the rules around nutrient neutrality is reviewed with a view to addressing problematic delays and increasing the pace at which homes can be delivered in these areas.

However, we have serious concerns about the approach that the Government have decided on. Not only does it involve disapplying the Conservation of Habitats and Species Regulations 2017, but it does not legally secure the additional funding pledges to deliver nutrient management programmes and does not provide for a legal mechanism to ensure that housing developers contribute towards mitigation.

I put the following questions to the Minister: what advice did the Government receive from Natural England about potential reform of the laws around nutrient neutrality? Did it offer a view on the Government’s proposed approach? Given the amount of mitigation currently available in the pipeline, which is estimated at allowing for approximately 72,000 homes, did the Government consider an approach based on the habitat regulations assessment derogation and a revised credit mitigation system to front-load permissions and provide for future compensatory schemes? If so, why did they dismiss that option? What assessment have the Government made of the impact of their proposed approach on the nascent market in mitigation credits, and investor confidence in nature markets more generally? Why on earth do Ministers believe developers will voluntarily contribute to mitigation under the proposed approach?

Finally, the Government claim their approach will see 100,000 planning permissions expedited between now and 2030. Given that house building activity is falling sharply and the pipeline for future development is being squeezed—not least as a result of housing and planning policy decisions made by this Conservative Government—what assessment has the Department made of the number of permissions that its disruptive approach will unlock within the first 12 months of its operation?

[Rachel Maclean]

I thank the hon. Gentleman for his questions and remarks. I take them to mean that he will support the measures when they come before the House. I am delighted to hear his support for our sensible, practical and pragmatic approach to unblock much needed housing across the country. He asked about our engagement with Natural England; we have had detailed discussions. He asked about the current legal framework; we have looked at and discussed a number of options to make the changes, and we are taking what we believe is the right approach to unblock planning permissions more quickly than the current situation allows.

The hon. Gentleman referred to nature markets; he is right to highlight the groundbreaking work we are doing across that piece. We are continuing with our commitment to those nature markets, which are a very important part of the Government’s plan to keep our environment, protect it and leave it in a better state than we found it. That is what the Conservative Government have always been committed to and continue to be.

The hon. Gentleman is right to say that we have spoken to developers, who, of course, support our objectives. We have very constructive dialogue with the developers, who are happy to contribute. We will have those discussions with industry, as I am sure he has heard from developers, because I know he has spoken to them all. We are on the side of those builders. It is important to say that the developers most affected by the disproportionate ruling from the European Court of Justice are not the big developers but the small and medium-sized enterprises—the small builders—some of which have gone bust. It is right that we stand behind them.

[Sir Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

I warmly congratulate the Government on taking action on this very serious issue. I welcome sincerely the remarks from the Opposition spokesperson offering qualified support for what is being done. We have an issue whereby 100,000 homes, spanning 74 council areas, are being blocked. Those homes have planning permission already granted, but cannot be built because of the perverse legacy ruling. More to the point, could my hon. Friend confirm that there is no environmental impact, because we are doubling investment in the nutrient mitigation scheme? That is as well as developing protected site strategies for those catchment areas affected most severely by the nutrients issue, which overwhelmingly is not caused by new housing. Does she agree that the real challenge should be laid down to the hon. Member for Brighton, Pavilion (Caroline Lucas) on what she would say to all the hundreds of thousands of young families out there who cannot buy a home in the places they need and want, at a price they can afford?

[Rachel Maclean]

My right hon. Friend has considerable expertise in this matter. He is right to focus on the mechanisms we need to bring forward to enable the much needed planning permission to take effect. His region in particular is affected by this issue, and I know his constituents and people across the region will be desperate to see those homes built, to allow people a step on the property ladder. We are about building a property-owning democracy.

My right hon. Friend is also right to say that we can do that at the same time as protecting the environment, which is why we have doubled the funding for Natural England’s nutrient mitigation scheme. We are investing £200 million in slurry management infrastructure and we are helping farmers with a £25 million sustainable package to help them invest in innovative farming techniques to manage their nutrients more sustainably, which can be of benefit to their farms and agricultural processes. We are going much further on those protected sites, so that we deal with the problem at source. That is what we need to focus on.

[Mr Speaker]

I call the Chair of the Levelling Up, Housing and Communities Committee.

[Mr Clive Betts (Sheffield South East) (Lab)]

This is hardly a new problem, is it? The Court decision was in 2018, yet last year we had the levelling-up Bill, which was really a planning Bill with a bit of levelling up added on—no mention of the issue there. In December we had major consultations on changes to the national planning policy framework—no mention of the issue there. The Committee wrote to the Minister and asked how many more consultations on planning issues there would be this year. We were given nine of them—no mention of the issue there. If it is such a serious issue, why has it taken the Government so long to act? It looks like the Government are making it up as they go along. This is a panicked response from the Government to the collapsing numbers of housing starts which the Minister simply wants to do something—anything—about.

[Rachel Maclean]

I very much value the hon. Gentleman’s scrutiny of the Government’s record and I very much enjoy coming before his Committee. We have discussed this issue, and many others, with his Committee in the past. It is right that we are taking this action. It is a serious and complex issue, and we needed time to consider all the legal aspects of it. However, what I come back to time and time again is that we need to unblock planning permissions. We need housing all over the country. We are doing that at the same time as protecting the environment and I very much hope to have further dialogue with him about this in the future.

[Chris Grayling (Epsom and Ewell) (Con)]

It is always baffling to hear those who believe in environmental improvement saying that only the EU way works. Does the Minister agree with me that outside the EU we have been able to adapt our laws to what works for this country, and also make improvements such as marine protected areas and provide support to agriculture outside the common agricultural policy? To say that leaving the EU has meant a degradation in our approach to the environment is simply nonsense.

[Rachel Maclean]

My right hon. Friend speaks from vast experience on this issue. I can do no more than agree strongly with every word. Leaving the EU allows us to make the laws that are right for our country, most specifically in the area of building the homes we need across his area and across the whole country. The point here is also that the EU legacy judgment has not improved the quality of the water. That is why we are taking further steps to mitigate the problem at source. Everybody who cares about the quality of water should welcome that.

[Fleur Anderson (Putney) (Lab)]

The UK is one of the most nature-depleted countries in the world. The Government have just set up the Office for Environmental Protection—I was on the Environment Bill Committee when we did that—which says that this planning change is a regression in environmental protections. We should not just throw out the rules when they are a bit difficult. What advice did the Government receive from Natural England—the Minister said she spoke with it—on its approach to problem nutrients? Did Natural England green-light the proposals or is it being ignored, along with the Office for Environmental Protection?

[Rachel Maclean]

Natural England is a Government partner. We work very closely with it, as well as with local planning authorities. We rely on Natural England to carry out some of the mitigation schemes, the nutrient credit schemes, and many others. In response to the Office for Environmental Protection, we have a different view. The Secretary of State for Environment, Food and Rural Affairs, my right hon. Friend the Member for Suffolk Coastal (Dr Coffey) set out very clearly her response to the Office for Environmental Protection. We do not agree with it. Fundamentally, we do not agree that this is a regression in environmental outcomes overall.

[Mrs Flick Drummond (Meon Valley) (Con)]

It is perfectly possible to make housing development nitrate neutral in the first place. Bearwood development in my constituency contains over 2,000 new houses and is nitrate neutral through sustainable drainage and building techniques, so we can have new homes without compromising our environment and without taking good-quality farm land out for mitigation. Will my hon. Friend ensure that planning law matches that ambition?

[Rachel Maclean]

I thank my hon. Friend very much. She is right to focus on some of the very good work that is already taking place through some individual projects I am aware are being brought forward. She is also right to highlight the role that sustainable drainage can take and we have committed to looking at that more broadly to see what more can be done with that particular policy. Planning law is very clear. It has to leave the environment in a better state than it finds it, not only in her area but across the country.

[Jon Trickett (Hemsworth) (Lab)]

Of course we need more housing, but in my constituency the sewers are over capacity, Victorian and clapped out. I invite the Minister to meet some of the households where in times of heavy rain raw sewage not only pollutes the environment but floats around the streets, the gardens and even the kitchens. It is simply not acceptable to imagine we can somehow wave a wand to solve the housing problem. Finally, may I draw the attention of the House to an excellent website called “Top of the Poops”, which states that in my constituency there were 4,468 hours of sewage last year alone? That is completely unacceptable.

[Rachel Maclean]

DEFRA Ministers have been at this Dispatch Box multiple times to update colleagues on the work that the Government are proud to do as part of the plan for water. This is the most ambitious and stringent package that has been brought forward to tackle this abhorrent issue. We agree with the hon. Gentleman that storm overflows and sewage overflows are wrong. That is why the £2.2 billion of new accelerated investment will be directed into vital infrastructure. We are clear that the volume of sewage discharge into our waters is unacceptable and that is why we have taken action in terms of stronger regulation, more fines and tougher enforcement across the board to tackle every source of river and sea pollution.

[Mr Ian Liddell-Grainger (Bridgwater and West Somerset) (Con)]

As the Minister knows, the levels of Somerset are some of the most environmentally enhanced areas in the UK. Natural England has destroyed chances for development. We are about to start building the Tata factory, the largest factory that this country has seen for a long time. That needs to be sorted and I would like the Minister’s thoughts. Conversely, the reality also slips. South West Water, which is an abomination, has just announced it will stop pollutants from 120,000 hectares by 2025. Can we please have a grip on the reality of both sides of this issue? If we do not, nothing will be developed in parts that are environmentally sensitive.

[Rachel Maclean]

I am aware that my hon. Friend represents an area with acute environmental sensitivities and he is right to raise those concerns on the Floor of the House. We work across Government not only to tackle the storm overflow issue to which he refers, but to find a way to allow house building and other types of building that is much needed to drive jobs and investment, and to support businesses in his constituency, without that having a weakening effect on our environment.

[Tim Farron (Westmorland and Lonsdale) (LD)]

I wonder if I could pick up on something the Minister said a moment ago. Natural England is not a Government partner; it is a Government agency. So far as this issue is concerned, it is literally the Government. This rule has existed since 2019 and the Government’s guidance on it has indeed got in the way of genuinely affordable, environmentally sustainable housing schemes in the Lake District and, I am sure, elsewhere. The answer was not to scrap it but to change the guidance to make it more intelligent, so that we protect our waterways and our landscapes from pollution without preventing vital development. Why did the Government spend four years dithering before panicking, overreacting and then acting in line with their own nature by damaging British nature?

[Rachel Maclean]

The hon. Gentleman makes his points in his usual way, but without confronting the reality of the situation that affects his constituents. Of course Natural England is a Government partner and a Government body. We work in partnership with Natural England. We work constructively with it to tackle these complex legal issues. I am sure he would be the first to jump up and complain if we took action too quickly without considering the consequences. As it is, what we are doing is a sensible, proportionate measure to allow much needed development in the Lake District: homes for his constituents that have the planning permission to be built—finally.

[Jason McCartney (Colne Valley) (Con)]

Labour-run Kirklees Council is sitting on millions of pounds of unspent section 106 developer contributions for local infrastructure. Much of that unspent cash is for environmental projects. What confidence should we in my area have that our shambolic Labour-run Kirklees Council will be able to deliver these mitigation environmental projects when it is actually not delivering for our local environment as it is?

--- Later in debate ---

[Rachel Maclean]

My hon. Friend is completely right to raise the record—in his words, the shambolic record—of his local Labour-run council. What I can say to reassure him and other colleagues is that I have engaged with local authority leaders to explain to them exactly what this change means for them, what we expect them to do, and what they should be doing on behalf of their residents to make sure the money is spent properly to protect the rivers, seas and lakes, and get houses built.

[Mike Amesbury (Weaver Vale) (Lab)]

Is it not the case that the only ones blocking the development of the houses that we need, including genuinely affordable social housing—a pitiful number were built last year; I think it was just over 7,000—are those on the Government Benches? It is the Tory Government who are the blockers of housing development to meet housing need. That is the case, is it not, Minister?

[Rachel Maclean]

It might sound very nice on the hon. Gentleman’s Facebook clip, but if he actually looks at the facts he will find it is Conservative-run councils that have, on the whole, delivered more houses over the last few years in responding to the needs of their constituents, and Labour-run councils that are experiencing significant failures in delivering the houses that their residents need.

[Sir Desmond Swayne (New Forest West) (Con)]

The Minister has lifted a blight from my constituency, but as a result of these measures we are all going to be swimming in cleaner water as well, aren’t we?

[Rachel Maclean]

We are, and I look forward to joining my right hon. Friend in swimming in some cleaner water very soon.

[Rachel Hopkins (Luton South) (Lab)]

The Minister rightly said that too many house building companies were going bust, but may I gently suggest that that is a consequence of the Government’s crashing the economy last year, inflation pushing up the cost of materials, and a skills shortage? The Government claim that their approach will see 100,000 permissions expedited between now and 2030, but given this context, what is that assessment actually based on, and has the Minister consulted local authorities?

[Rachel Maclean]

Yes, we have consulted local authorities, and I make no apologies for standing up and taking action when it is needed to help small builders in particular. The diversity of the sector in this country, unlike that in other countries, is disproportionately skewed towards larger developers, and it is therefore right for us, as a Conservative Government, to back small businesses. We understand what people go through to start a business, which is why we are taking action to help them.

[Damian Green (Ashford) (Con)]

I welcome the Government’s balanced approach, which will improve the long-term quality of the River Stour in my constituency while allowing much-needed planning permissions for new homes to start again. Thousands of people, very sensibly, want to live in Ashford, and they want to see new homes built, not least in accordance with the local plan rather than being built opportunistically around the place, which is what the delays in permissions have led to. Can the Minister give us some indication of a timescale and when councils such as Ashford can start granting planning permissions again?

[Rachel Maclean]

My right hon. Friend is entirely correct and I thank him for his support. We need to wait for the Levelling-up and Regeneration Bill to achieve Royal Assent—it must, of course, undergo parliamentary scrutiny in both Houses—but we are working apace. We have already started that engagement with local authorities and partners, Natural England and others, to ensure that they have all the operational detail that they need. What we need to see are spades in the ground as soon as possible.

[Mr Ben Bradshaw (Exeter) (Lab)]

It is clear from the Minister’s replies that her statutory adviser, Natural England, opposed this move, so will she please publish its advice? Instead of letting developers and water companies off the hook and pouring even more sewage into our waterways, why does she not take the advice of her right hon. Friend the Member for Middlesbrough South and East Cleveland (Sir Simon Clarke) and reverse the Prime Minister’s disastrous decision to scrap local housing targets, which has given nimby councils carte blanche to do nothing?

[Rachel Maclean]

What I take issue with in the right hon. Gentleman’s questions—plural—is his comment that we scrapped housing targets. We have done no such thing. We are committed to building 1 million homes during this Parliament, and we have the target of building 300,000 homes every year. That is a very important target that we stand by. What we are doing, unlike the Labour party, is taking account of local communities. What Labour would do is build all over the green belt, and I can tell the House that its own MPs are not in favour of that: they are blocking developments in their constituencies. What we have is a sensible, proportionate approach—to build the right houses in the right places.

[Siobhan Baillie (Stroud) (Con)]

What the negative social media debate about all this has masked is the fact that a significant amount of work is being done to create, conserve and improve wetlands around the country. The all-party parliamentary group for wetlands, which I chair, is supporting the drive by the Wildfowl & Wetlands Trust to create 100,000 additional hectares of wetlands in this country, and we would also like to see a dedicated domestic wetlands team in DEFRA to repeat its successes in peat productivity. Will my hon. Friend give us more information about how expert organisations such as the WWT in Slimbridge, in my patch, can apply for the £280 million to continue positive progress on environmental matters, and will she assist my efforts to get the wetlands team up and running?

[Rachel Maclean]

I know that my hon. Friend does extremely good work on behalf of Slimbridge and other wetlands in her area. I should be delighted to meet her, and to read any of the reports produced by her APPG. I think it important to stress again that the packages to be delivered through the work of Natural England and the credit scheme must continue, and we will be boosting them because we know of the benefit that they have for my hon. Friend’s area and many others.

[Kerry McCarthy (Bristol East) (Lab)]

Does the Minister accept that the proposed investment in the Natural England nutrient mitigation scheme covers only 15% of the total mitigation requirement to 2030? Where will the additional funds required to address the shortfall come from?

[Rachel Maclean]

I do not accept that figure, and I do not know where the hon. Lady got it. Those schemes are very much in progress at the moment, on an ongoing basis. We are working through some of the details. I should also mention that as well as the Natural England scheme we have the Government’s own scheme, administered by my Department, which we will be able to deliver throughout the country.

[Paul Maynard (Blackpool North and Cleveleys) (Con)]

Does the Minister agree that there is a flaw in the way in which the Office for Environmental Protection has reached its determination in this matter? It can take into account only what is in the Bill. It cannot take into account the other measures that the Minister has mentioned, the Natural England nutrient neutrality programme and the investment in slurry management. Surely, to form a more coherent view of the environmental impact of these measures, it is necessary to look at all measures in the round, not just legislative measures.

[Rachel Maclean]

My hon. Friend is of course extremely perceptive and he is absolutely correct. We presented an ambitious package overall, and that means we can meet head-on the challenge of delivering the much-needed planning permissions that my hon. Friend will no doubt welcome in his area—which I know needs more housing—and also protect and enhance our environment. In its recent comments, the Office for Environmental Protection has interpreted this in a very narrow fashion, and we do not necessarily agree with its assessments.

[Stella Creasy (Walthamstow) (Lab/Co-op)]

I know that the Minister has struggled previously with what constitutes retained EU legislation, but what we are talking about today is an amendment to the Conservation of Habitats and Species Regulations 2017. The challenge before the Minister is that this Government pledged, on the record, not once but seven times during the debate on the Bill that became the Retained EU Law (Revocation and Reform) Act 2023, that they would not reduce those explicit environmental protections. Will she say now whether that pledge to match those environmental protections directly remains, or does she want to take this opportunity to correct the record and admit that the Government’s word on the environment is not worth the paper it is written on?

[Rachel Maclean]

I think that what I am struggling with is the fact that the hon. Lady clearly did not listen to my previous comments on this matter. I have said a great many times that we do not agree that this is a regression in environmental outcomes, and we stand by that. We are the Conservative Government, and we are committed to leaving the environment in a better state than the one in which we found it. That is backed up by a strong package of action across numerous areas.

[Duncan Baker (North Norfolk) (Con)]

My constituency was one of the worst-affected places in the entire country, with 2,000 planning applications held up and thousands of people at risk of losing their jobs. We are talking not about large construction companies, but about everyday jobbing builders—people with families to feed. This is a great step towards getting the country moving again and solving an intractable problem.

May I ask the Minister a very simple question? If I build a small house, or put a little extension on the side of my current house, am I really damaging the watercourses to the same degree as pig farming and chicken farming? Are these well-intended laws completely missing the mark of what they were intended to do in the first place?

[Rachel Maclean]

The simple answer to my hon. Friend’s question is that he is right. The existing legal framework that has been hindering us has had a disproportionate effect on planning permissions and house building when the main source of the pollution lies elsewhere. Overall, this package will be able to deliver house building and extensions in my hon. Friend’s constituency, help the smaller builders and, of course, protect our rivers.

[Alex Cunningham (Stockton North) (Lab)]

In an industrial area such as Teesside, environmental standards are critical, including around water quality and our riverside. Will the new policy framework lead to increased funds for the Canal & River Trust, which has seen its budgets decimated in recent years, leading to huge cuts in its activities and the removal of every single litter bin on its land around the River Tees?

[Rachel Maclean]

I thank the hon. Gentleman for raising the concerns of the Canal & River Trust. I am sure that his comments will have been heard by DEFRA Ministers, but I will be happy to take those concerns back to them and ask them to provide an answer.

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

Following the question from the hon. Member for Stroud (Siobhan Baillie) on mitigation, the Government’s focus seems to be on wetlands, but if we are honest it will take a long time to fully mitigate the possible additional pollution. What will be done in the interim to deal with this pollution before the wetlands become fully operational?

[Rachel Maclean]

The hon. Lady is right to highlight the fact that there is a focus on wetlands but other projects are in scope of the credit scheme. However, she has hit the nail on the head: the key point is that some of these things take a very long time to come on stream but we need to start unblocking those houses now, which is why we have taken this proportionate approach with the amendments.

[Mohammad Yasin (Bedford) (Lab)]

Over the summer, I met members of the Bedfordshire Great Ouse Valley Environment Trust. They are concerned that our river is the fifth most polluted in England with forever toxins—the level is a shocking 10 times that considered safe—not to mention raw sewage and nitrate and phosphate contamination. Can the Minister explain to my constituents why the Government are decreasing protections for our beautiful river when what is needed is an urgent plan to clean up our dirty waterways?

--- Later in debate ---

[Rachel Maclean]

I can assure the hon. Gentleman and anyone else listening to this, including his constituents, that the package we are bringing forward will protect the river and enable it to be in a cleaner state. That is backed up by our plan for water and the further announcements we are putting in place today. What is more, I know from his correspondence that his constituents also want to see affordable housing being built, and that is what this will enable.

[Cat Smith (Lancaster and Fleetwood) (Lab)]

My constituents, whether they live in urban Lancaster or in one of the rural Wyre villages, recognise the need for housing across north Lancashire, but they also recognise the ripping up of environmental protections when they see it, and they do not like that. The Minister seems to be very concerned about small house builders who are going bust, so will she take this opportunity to apologise on behalf of her Government, who crashed the economy, pushed up inflation and made materials more expensive and who have not dealt with the land banking that is really holding back house building?

[Rachel Maclean]

What I would like to see from Members on the other side of the House is an apology for talking this country down, which they have done repeatedly. I am not sure whether the hon. Lady was able to tune in to Treasury questions recently when the Chancellor set the record straight on how we now have one of the fastest-growing rates in the G7. It is this Conservative Government who will get every industry going, including the house building industry and small and large builders. We are on the side of the builders, not the blockers.

[Richard Foord (Tiverton and Honiton) (LD)]

The Minister refers to the doubling of investment in a nutrient mitigation scheme, with £200 million put into slurry management, yet 80% of phosphates in the UK’s rivers are from households and only 15% are from agriculture. Is this just another example of this Government passing the buck and blaming farmers for pollution in our rivers?

[Rachel Maclean]

I would be happy to sit down with the hon. Gentleman and explain to him what is meant by slurry management grants. We are helping farmers to build a circular economy. He will know that this is a valuable resource. Farmers will welcome this intervention because they know that it could help them to farm more sustainably. Most farmers I talk to want to work in harmony with nature. That is what we are doing. I do not know what the Liberal Democrats’ policy is, though.

[Anna McMorrin (Cardiff North) (Lab)]

This Tory Government are failing on housing and the environment pays the price. It is not an either/or. Our Welsh Labour Government are delivering on both in Wales. They have been working strategically with all stakeholders, with high-level nutrient management boards set up to tackle precisely this issue, sometimes chaired by the First Minister himself—they are always chaired by Ministers—as well as bringing through regulations to improve agricultural water quality and getting homes built as well. If the Welsh Labour Government can do both, why can’t this Government?

[Rachel Maclean]

The Welsh Labour Government have a shocking record on house building, as they have on many issues. What is more, they are not tackling the issue at source, which is why we are bringing forward our catchment plans and our protected site strategies. A lot of the rivers that are draining from Wales are impacting negatively on constituencies in England. The only thing I agree with in the hon. Lady’s rather stilted comments is that this is not an either/or. If she had listened to what I was saying, she would know that we are doing both. We are protecting the environment, protecting our rivers and bringing forward housing.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I thank the Minister for answering the urgent question.

Cost of Living: Private rented sector

Baroness Maclean of Redditch Excerpts

Tuesday 18th July 2023 Westminster Hall

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

It is a great pleasure to serve under your chairmanship, Dr Huq, and to respond to the debate on behalf of the Government. As is traditional, I thank the hon. Member for Stretford and Urmston (Andrew Western) for securing the debate on this important issue, which matters to all of us, including those of us who serve in the Government. He spoke passionately on behalf of his constituents, as did the other Members who have spoken, and I will come on to their contributions before I conclude my remarks.

The hon. Gentleman’s concerns reflect my determination to make sure that the Government deliver a strong, functioning private rented sector. As has been reflected during the course of the debate, private rented accommodation is the second largest housing sector in England, providing homes for 4.6 million households and an estimated 11 million tenants. It plays a vital role in supporting people to study away from home, explore new locations or move to find work, which is why we are ensuring that tenants have the security they need and enjoy a positive experience of renting a home.

As has been alluded to, the Government recently introduced the Renters (Reform) Bill to Parliament. The Bill will help change the landscape of the private rented sector. It is the most significant reform to the private rented sector for a generation, and it will deliver on the Government’s commitment to a better deal for renters. The Bill will make a fairer, more secure and higher quality private rented sector, fit for the 21st century. It will end section 21 “no fault” evictions and move to periodic tenancies, allowing landlords and tenants to end tenancies when they need to. This means that tenants can rent decent, secure homes and put down roots in their communities, while being empowered to challenge poor practice without worrying about retaliatory eviction, or they can leave if the landlord fails to meet their basic responsibilities.

However, we know that the overwhelming majority of landlords provide a good service, and we recognise that good landlords play a vital role in providing decent homes for millions of people across the country. That is why we will introduce comprehensive, fair and efficient grounds to ensure that landlords have confidence that they can regain possession of their property when it is reasonable to do so. We also want to simplify the system for both tenants and landlords, which is why all rent increases will take place via one mechanism. We will allow rent increases once per year in periodic tenancies and increase the notice that landlords must give to two months, giving tenants more time to plan and to seek advice. That will create a fairer system that allows both parties to negotiate rents effectively, while protecting security of tenure. I want to be clear: this Government do not support rent controls. Some Members asked me to set out our position on that. We recognise, however, that most people want to buy their own home one day. We are therefore firmly committed to helping generation rent to become generation buy.

We are working towards delivering on our commitment of 300,000 homes a year. Despite all the doom and gloom that may be reported, we are making strong progress. There is always more to do, but it is important to recognise that annual housing supply is up 10% compared with the previous year, with more than 232,000 net additional homes delivered in 2021-22. That is the third highest yearly rate for the past 30 years. We have also announced £10 billion of investment in housing supply since the start of the Parliament, and the Government are on track to deliver thousands of affordable homes to rent and buy across the country through our £11.5 billion affordable homes programme. A large number of those are for social rent.

I want to address the—if I may put it this way—nonsense stated by a couple of contributors to this debate, who said that money has been handed back to the Treasury. That is simply not the case. The money referred to was re-profiled, which is a normal part of Government accounting —[Interruption.] Opposition Members might want to listen and find out how Government funding and finance work. That money will be recycled and refocused into the 2016 to 2023 affordable homes programme. I hope that we will hear no more of that kind of comment.

A healthy housing market thrives on having a range of tenures. That is why we have launched the £1.5 billion levelling-up home building fund, which provides loans and takes out equity in house builders that would otherwise struggle to access finance. The Government have made a range of interventions to support the sector over the past decade. The construction of new Build to Rent homes will play an important part in helping to ease demand pressures in the private rented sector and is already providing thousands of much-needed new quality homes.

We know that right now meeting immediate housing costs is a huge struggle for some people, and that a higher proportion of income is being spent on rent by those on lower incomes in particular. In April 2020, therefore, we raised local housing allowance rates—a significant investment of almost £1 billion—and that increase has been maintained since then. Where tenants are unable to meet their housing costs and need further support, discretionary housing payments are available from local councils. Since 2011, the Government have provided almost £1.6 billion in discretionary housing payment funding to local authorities. For those who need additional support, the Government are providing another £1 billion of funding—including any Barnett impact, as colleagues from the devolved nations have spoken today—to extend the household support fund in England into the next financial year, bringing total funding to £2.5 billion.

[Beth Winter]

Will the Minister give way?

[Rachel Maclean]

I will not give way, if the hon. Lady does not mind, because I have a lot to get on the record.

Cost of living pressures go beyond housing costs, and that is why we have taken decisive action to support households, totalling £94 billion or £3,300 per household on average, across 2022-23 and 2023-24. We uprated benefits and state pension by 10.1% in April. For 2023-24, the Government are providing additional means-tested cost of living payments of up to £900. We also provided significant support for households with their energy bills, covering about half of a typical household energy bill this past winter. I utterly reject comments to suggest that the Government are not interested in helping people on low incomes. I have set out how we are doing just that with billions of pounds of taxpayers’ money.

I will touch on the Members who have spoken. I thank the hon. Members for Pontypridd (Alex Davies-Jones), for Cynon Valley (Beth Winter), for Barnsley East (Stephanie Peacock), for Birmingham, Erdington (Mrs Hamilton) and for Leicester East (Claudia Webbe), the Front Benchers of the SNP and the official Opposition, the hon. Members for Glasgow South West (Chris Stephens) and for Greenwich and Woolwich (Matthew Pennycook), and my hon. Friend the Member for Christchurch (Sir Christopher Chope).

[Sir Christopher Chope]

Will the Minister give way?

[Rachel Maclean]

I am about to refer to my hon. Friend’s comments, if he will allow me, so he can come back to me after that. He asked about the RPC and the impact assessment. I agree with him that this is about supply, and I assure him that the number of PRS properties increased by 11,000 in 2022 compared with the previous year. The data from UK Finance shows that the number of buy-to-let landlords reached a record high at the end of last year. There is no evidence that private rented landlords are leaving the market. Our Bill is fair to decent landlords, and the RPC has estimated the net cost to landlords to be just £10 per property. The committee has given the Bill a green rating, and I do not think £10 per property is a significant sum that is going to force landlords to leave the market.

[Sir Christopher Chope]

rose—

[Rachel Maclean]

If my hon. Friend wants to challenge me further, I will allow him.

[Sir Christopher Chope]

I want to ask the Minister about her aspiration to move from generation rent to generation buy. When does she expect the Government to deliver the voluntary right to buy for housing association tenants, which was first promised in 2015?

[Rachel Maclean]

I refer my hon. Friend to my earlier remarks, which set out that we are building record numbers of houses both to buy and for rent. We will make further announcements on that point in due course.

I gently remind the other Members who have spoken that all of them, I think, represent areas that have Labour-run councils, or else represent areas in the devolved nations. Their own councils have considerable powers, funding and tools, especially in enforcement, to tackle a lot of the issues that have been raised in their casework.

I was struck by the complaint made by the hon. Member for Birmingham, Erdington about the way her own city council, which is run by the Labour party, is allowing HMOs to be delivered. I suggest that she takes that up with her own Labour-run council—likewise for the hon. Member for Stretford and Urmston, whose constituency is of course part of the Greater Manchester Combined Authority, which is run by Labour Mayor Andy Burnham, who has considerable powers, influence and devolved funding from the central Government.

[Beth Winter]

rose—

[Rachel Maclean]

I briefly give way to the hon. Lady, who has been very persistent.

[Beth Winter]

Is the Minister aware that the devolved nations have been underfunded by billions of pounds? Going back to the point that the Minister made earlier, the local housing allowance is a reserved matter, and it has been frozen since 2020, since which time we have had a cost of living crisis. People are struggling. My question, though, relates to the report by the Levelling Up, Housing and Communities Committee, which stated:

“If the Government believes the PRS is the right place for those on the lowest incomes, it should…make sure housing benefit…covers benefit recipients’ housing costs.”

The Committee is still awaiting a response from the Government. When will the Government respond?

[Dr Rupa Huq (in the Chair)]

Order. We need to allow the Minister to respond and Andrew Western to wind up the debate.

[Rachel Maclean]

I am afraid that I do not agree with the premise of the hon. Lady’s question, which is that the devolved nations have been underfunded. Her Government in Wales is led by the Labour party, and it is up to them to deliver housing for people who live in Wales. I suggest that she address her comments to their door.

We recognise the struggles that renters have faced in recent months, which is why we have taken decisive action to offer vital support where it is desperately needed. More importantly, we are making the most significant change to the private rented sector in over 30 years to provide the stability and security that renters need, as well as continuing to build new affordable homes so that many more people can own their own home. I therefore look forward to working with Members from across the House to achieve that goal, which we all share. I thank all Members who have contributed.

[Andrew Western]

I thank all colleagues who have taken the time to contribute to what has been an important and insightful debate into an issue that affects all our constituents very acutely. I will not speak to all the contributions from Opposition colleagues, but they have all accurately reflected the plight of private renters, both in terms of the impact of the cost of living crisis on their living standards and ability to pay for basics such as food, energy and rent, and in terms of the condition of the properties that many constituents have to live in. Many constituents are unable to afford to move and terrified to challenge their landlords on the need for repair.

I want to spend rather longer, though, on the comments of the hon. Member for Christchurch (Sir Christopher Chope). He is absolutely right to state that we need additional supply in the housing market. He seemed to suggest that I had not referenced that when I set out the need to scrap the Town and Country Planning Act 1990 to build, build, build, to utilise the green belt, and to drive up housing supply in a way that delivers significantly more affordable and social homes. None the less, we agree on that point. I stress that because it was probably the only part of his contribution I agree with. He will appreciate that I am not in a position to comment on many of the changes made 40 years ago in the 1980s; sadly, I was not born until 1985. However, it is certainly the case that the interventions made back then have done nothing to ease the terrible situation for those at the sharp end of private rent, who are experiencing this cost of living crisis, often on very low incomes.

I also object to the suggestion that immigration, or indeed any form of demand issue, is driving the housing crisis. It is simply a fact that the biggest driver of demand for private rent is the 307,000 young people looking to move out of their parents’ homes in 2022, which was caused by many of them staying at home for longer during covid, as well as the impacts on their employment during that time and so on. Although that is the biggest aspect of demand, it is important to remember that the housing crisis is always fundamentally about supply.

I am sure the hon. Member for Christchurch will be aware of this, given that he has already subjected us to one history lesson. If I point to the history of house building in this country, we have not been building enough homes for the past near 70 years. In some of those years we had net migration out of the country, so to suggest that immigration is a driver of the housing crisis does not bear any alignment with the evidence before us. It was wholly unsurprising to hear that the hon. Gentleman stands against the Renters (Reform) Bill—not only from his contribution today, but from the significant delay in bringing the Bill forward for both First and Second Reading. We know now that it is the Tory Back Benchers who have caused significant delay to this important legislation.

I thank the hon. Member for Glasgow South West (Chris Stephens) for his comments. I am not going to speak to the merits of the system that has been brought forward in Scotland, other than to note the significant difference between the interventionist approach there and the inertia from the Government here in bringing forward their proposals.

Again, I thank the Opposition spokesperson, my hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook), who was absolutely correct to highlight the ONS data showing that private renters are five times more likely to be struggling, and that 2.5 million of them are struggling to pay their rent. I know he understands that, which is why he is pressing so hard for the Renters (Reform) Bill to come forward, as he did today.

In many ways, the Minister echoed that desire to see the legislation come forward, which leaves one wondering why there has been such a delay. I appreciate that we have had a number of Housing Ministers over the past few years; I can only hope that she is still in the job on Monday. The issue with that many changes, and with the number of Prime Ministers over the past few years, is that this legislation has been kicked down the road time and again. When people are in desperate need and struggling to pay their rent, that is simply not good enough.

I was interested by what the Minister said about the £1.9 billion not actually being clawed back, but reprofiled. I am sure that will be of great reassurance to the many people struggling to get on the housing ladder and to access social and affordable property, not least because the Minister promised that the money will be available from 2026. How wonderful!

[Rachel Maclean]

I did not say that.

[Andrew Western]

I believe that the Minister said it was from 2026 to 2030.

--- Later in debate ---

[Rachel Maclean]

What I said was that the programme is from 2016 to 2023. It is already delivering affordable housing. I will send the hon. Gentleman a copy of my speech, and he will find it in Hansard.

[Andrew Western]

I am grateful for that and I apologise if I misheard the Minister. However, the fundamental point is that there is still much work to do. Yes, we need to see the Renters (Reform) Bill come through urgently. We also desperately need to see the support package that is being brought forward to stop mortgage holders being evicted extended to renters. Of course, we also need to build, build, build social and affordable homes in a way that gets them back to the second largest form of tenure in this country, giving the housing security that people desperately need.

Question put and agreed to.

Resolved,

That this House has considered the cost of living and the private rented sector.

Draft Building Safety (Leaseholder Protections etc.) (England) (Amendment) Regulations 2023

Baroness Maclean of Redditch Excerpts

Monday 17th July 2023 General Committees

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

I beg to move,

That the Committee has considered the draft Building Safety (Leaseholder Protections etc.) (England) (Amendment) Regulations 2023.

It is a pleasure to serve under your chairmanship, Mrs Murray. The draft regulations amend the existing leaseholder protection regulations made under the Building Safety Act 2022 to clarify and simplify some provisions in the light of experience and to address points made by the Joint Committee on Statutory Instruments and in the two stayed judicial review applications. I will start by providing some context and background to the draft regulations.

As hon. Members know, the Government introduced the leaseholder protections to protect many leaseholders from the cost of remedying historical safety defects in their building, either entirely or with liability firmly capped. The Joint Committee on Statutory Instruments reported the 2022 affirmative regulations for cases of suspected defective drafting and doubtful vires. Notwithstanding the Committee’s concerns, the Government were satisfied that no issues with the regulations would prevent the process from operating successfully.

My predecessor, my right hon. Friend the Member for Nuneaton (Mr Jones), committed to introduce changes if it became apparent that they were necessary. I therefore laid the regulations before us to address the issues that I have mentioned, and they were engaged in two rounds of correspondence with the Joint Committee, culminating in a memorandum of response set out in the appendix to the Joint Committee’s 44th report of the 2023 Session, published last Friday.

To summarise, the Joint Committee reported the regulations for one case of defective drafting in relation to a lack of consequence for failure to notify the landlord associated with the developer of their liability. The Government are grateful to the Joint Committee for its careful scrutiny of the regulations and have considered the issue carefully. As set out in the memorandum published by the Committee, the Government are satisfied that no issue with the regulations will prevent the process from operating successfully.

It is imperative that the regulations come into force before the summer recess so as to alleviate the issues facing named managers and landlords. We will of course monitor closely the progress of future cases and, if it becomes apparent that further changes are necessary, we will come back to Parliament with proposals.

The regulations can be considered in three parts. First, they address points made in the Joint Committee’s report of July 2022. They make it clear that to recover the remediation amount, L—the body responsible for managing the building—must issue a notice to the landlord with the liability to pay. The notice must include the prescribed information on both the amount to be recovered and the appeals process. The regulations clarify the powers of the first-tier tribunal in determining the outcome of an appeal: if the appeal is unsuccessful, the appellant has to pay the amount set out in the notice; if the appeal is successful, the appellant has to pay either nothing or an alternative amount determined by the tribunal.

The Joint Committee considered regulation 6(1) of SI 2022/859, which purports to allow a leaseholder voluntarily to provide a leaseholder deed of certificate to their landlord, to be ultra vires, so the draft regulations remove that provision. I should make it clear, however, that nothing prevents a leaseholder from providing a certificate to their landlord at a time of their choosing. The regulations clarify that the prescribed evidence is required as part of the leaseholder deed of certificate and that failure to provide a completed leaseholder deed of certificate and the required evidence will result in the lease being treated as if it were not a qualifying lease. The regulations also provide that “shared ownership lease” has the same meaning as that used in schedule 8 to the 2022 Act.

Secondly, the regulations address points made in the two stayed judicial review applications. They provide for named managers to recover the cost of relevant measures in relation to relevant defects from landlords in the same way as resident management companies and right-to-manage companies. They also provide for L to be able to recover notified amounts from landlords as a civil debt and for L to be able to pursue a remediation contribution order against the landlord to recover costs. The regulations also provide that a landlord who is associated with the developer must be notified of its liability to pay for relevant measures or relevant defects. However, nothing in the regulations prevents L from instead pursuing another liable landlord if, for example, they feel that funds are more likely to be recovered in that way.

Thirdly, the regulations deliver additional detail to clarify and simplify some of the provisions in the 2022 regulations. They enable Homes England—the Department’s delivery partner for remediation work outside London—to apply for a remediation order or a remediation contribution order. They provide that a landlord may apply to the first-tier tribunal for a 30-day extension to the appeal process, to give time for out-of-court engagement. They also provide that the landlord must update the landlord certificate to reflect a lease’s qualifying status within four weeks of receiving a leaseholder deed of certificate.

Finally, amendments are made to the 2022 regulations so that the current landlord does not need to provide certain evidence where they accept liability for a relevant defect, and the existing landlord certificate is replaced by the schedule to these regulations to reflect that. This change reduces the information-sharing requirement to that which is essential for a leaseholder and L to determine liability. The regulations also provide that current landlords must provide L with copies of the landlord and leaseholder certificates within a week of completion or receipt, to enable L to apportion costs in line with the 2022 regulations. Where the current landlord fails to comply, the regulations provide that their share of costs cannot be passed on to leaseholders.

[Barry Gardiner (Brent North) (Lab)]

The Minister will be aware that many landlords have sold or gone into liquidation and referred on, and the current landlord may now be in a very different jurisdiction and may often be difficult to get at. Has the Minister considered the effect of that on these regulations, and how the notifications and periods she has set out will impact on leaseholders if, as she has just said, it will be possible for the cost to be passed on to them in this situation?

[Rachel Maclean]

I thank the hon. Gentleman for his contribution. He will be aware that this is a very specific provision in the regulations, which serve the specific purpose of providing the detail needed to clarify and simplify some of the provisions in the existing leaseholder protection regulations.

To continue—

[Barry Gardiner]

Will the Minister give way again?

[Rachel Maclean]

No, I am not going to give way again, if that is okay, Mrs Murray.

The regulations also address concerns raised by the Joint Committee last July and the two stayed judicial review applications. That will enable landlords to complete a shortened landlord certificate and enable L to take civil action against non-compliant landlords.

I hope hon. Members will join me in supporting the draft regulations, which I commend to the Committee.

--- Later in debate ---

[Rachel Maclean]

I thank the hon. Gentleman for his comments and will address his points. He asked why we are amending leaseholder protections again. He is right that mistakes were raised by the JCSI last July, with correcting regulations in February and now these draft regulations. The Government committed in the House last summer to making any necessary amendments to the leaseholder protection regulations, and that is exactly what we are doing.

The Building Safety (Leaseholder Protections) (England) (Amendment) Regulations 2023, which came into force in February, corrected an error in the definition of “associated persons” to ensure that complex corporate structures cannot avoid liability. That was always the Government’s intention. Those regulations were able to be dealt with under the negative procedure, which is why we were able to bring them into force the day after laying them. It was important to do that to ensure that landlords could not avoid the new requirements. Today’s draft regulations, considered under the affirmative procedure, do the opposite: they minimise information-sharing requirements for landlords and provide clarity to ensure the protections have effect in the way originally intended.

The hon. Gentleman asked about Homes England. It will not be taking over from the Department, but it will be able to apply, where it thinks it appropriate to do so, and we constantly review the enforcement arrangements and resourcing. I put it on the record that no money has been handed back to the Treasury, as the hon. Gentleman stated incorrectly. Homes England funding is being reprofiled, which is a normal process of Government funding and a responsible way to account for public money, and all the money will be spent on affordable housing. I hope that sets hon. Members’ concerns straight on that point.

As I said earlier, these draft regulations deliver additional detail to clarify and simplify some provisions in the existing leaseholder protection regulations. There is of course more to do in this area, some of which will require primary legislation, and the Government will come back to the House with further proposals in due course. I hope the Committee will welcome these important and necessary regulations.

Question put and agreed to.

Freehold Estate Management Fees

Baroness Maclean of Redditch Excerpts

Thursday 13th July 2023 Westminster Hall

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

It is a great pleasure to respond to this debate and to serve under your chairmanship, Dr Huq.

I start by thanking the hon. Member for North Shropshire (Helen Morgan) for securing this debate on an issue that she feels passionately about. Indeed, many of us feel passionately about it, and it is a testament to the persistence and determination of many colleagues in the House that we are again debating this vital issue.

As the hon. Member did during the recent Opposition day debate, she brought to the House’s attention powerful examples from her area; I think that it is particularly on the Brambles estate in Whitchurch where the current system is not working for homeowners. I am hugely frustrated at the situation that those homeowners find themselves in.

I thank my hon. Friends the Members for North East Bedfordshire (Richard Fuller) and for Buckingham (Greg Smith) for the discussions we have had about this issue and for the attention to detail they have brought to our process of scrutinising and preparing the legislation that we very much hope to introduce soon. I will come on to that shortly.

The Opposition Front-Bench spokesperson, the hon. Member for Greenwich and Woolwich (Matthew Pennycook), correctly highlighted the cross-party support on this issue. He has been supportive and constructive in his tone, both today and other occasions. I welcome that, because it makes the case for all of us to pursue the legislation and to ensure that it is brought to the House swiftly.

There was a broad consensus on the need for change. Let me use this opportunity to assure Members that fairness remains at the heart of our ambition for the housing market. We all know that we need to drive up housing supply so that we have the homes that the country needs, but while doing that, we need to ensure that buyers are getting high-quality and safe housing on modern, beautiful estates—if that is what is being built—that they can enjoy for years to come. Unfortunately, too many homeowners who bought their properties in good faith have not had their expectations met.

In the past, as Members have highlighted, it was typical for councils to adopt local infrastructure and shared spaces, but the system has changed in recent years. I recognise that on more and more estates, it is common for the shared spaces to be owned and managed by another party. The ownership of the land varies between developments. On some estates, it is owned and managed by a resident-led management company, often with the support of a managing agent, which provides expertise and services to the residents in the running of the estate. On other estates, the land is owned and managed by private management companies. Some have connections to the original developers; others are third-party companies.

It is often not down to the homeowners themselves to decide which type of management arrangement is in place on the estate. Commonly, that is set by the developer before any of the houses are sold. Either way, as has been pointed out, homeowners on these estates must pay a charge to cover the upkeep of open green spaces, roads, sewerage, drainage and other shared infrastructure, such as balancing ponds and play areas, which have been highlighted. In such circumstances, we must ensure that homeowners get a fair deal and do not end up in a vulnerable position as a result of these arrangements.

My hon. Friend the Member for Buckingham and the hon. Member for North Shropshire called for local authorities to be compelled to adopt all communal facilities on a new estate. It is worth pausing to consider why that does not happen at the moment. Our current planning arrangements exist to support new developments. When a new development is granted planning permission, the local authority can obtain section 106 planning obligations to secure a commitment from the developer. That means that the local authority does not have to adopt and maintain the land at its own expense. Local authorities no doubt take such financial considerations into account when they make these decisions, but it is up to developers and the local planning authority to agree on specific issues such as timescales for development and appropriate funding arrangements, and it is clear to me that, in a lot of cases that have been brought to our attention, that process is breaking down.

The local authority has powers to ensure that the developer builds and maintains communal facilities to the standards and quality set out in the planning permission. It is worth noting that the maintenance of communal areas, and of roads in particular, can be a significant financial burden. This is why it is right that the decision about adoption should rest with the local authority. The Department for Transport has recently issued guidance on the circumstances in which local authorities should be adopting roads. Again, I note that this can be a fraught area in some situations; I have seen that from my correspondence.

We need transparency. We need a system that consistently delivers clarity to potential purchasers and arms them with information about the arrangements for the maintenance of shared spaces on private estates. That information should be set out as part of the conveyancing process. Many already use the freehold management enquiries form, the FME1, published by the Law Society. I know that the form is used widely across the sector, but I have heard that for some buyers the information was not provided, or perhaps not drawn to their attention, at the point of purchase. That may have been the experience of some of the constituents my hon. Friends and colleagues have spoken about.

If a homeowner is unhappy with the service that they received from their conveyancer or solicitor, and the internal complaints process cannot resolve the issue, the legal ombudsman may be able to help. That needs to happen within six months of the homeowner’s final response from their conveyancer or solicitor. My hon. Friend the Member for North East Bedfordshire highlighted the issues with buying and selling homes, the process for which in England and Wales can be expensive, time-consuming and stressful. For that reason, we committed to improving the process in the levelling-up White Paper.

We have committed to work with industry to ensure that potential buyers have access to the critical information that they need in an accurate and timely format. That will help them to make an informed decision about whether to purchase a property, reducing the likelihood of the sale falling through. Some of that work is already taking place, but the Government are committed to continuing to create a fair and just housing system for everybody.

Too often, once a homeowner has moved into their home, they are asked to pay charges without an effective breakdown of what they cover. This is a matter of basic fairness and justice. Homeowners deserve to know what they are paying for on their estate. As with leaseholders, a lack of transparency, both at the homebuying stage and when people are settled in their property, leaves homeowners in an unfair and often vulnerable position.

[Helen Morgan]

That is the crux of the matter. If rogue management companies acting in bad faith do not provide that information and do not have an AGM, there is no remedy for homeowners to challenge what they are up to, or to take control of the situation. If those basic Companies Act requirements are not being fulfilled, could there be some legislative remedy for homeowners that does not involve them incurring the enormous expense of going to court? For example, could they take on the management of the company if basic Companies Act requirements are not complied with?

[Rachel Maclean]

I thank the hon. Member again for reminding us of this issue. I hope that she will bear with me, as I am coming on to our intended legislative remedy, through which we intend to drive up transparency for homeowners. Better transparency will help people to be better informed about buying a home on a managed estate and empower them to question or challenge the charges when they are billed. Alongside that, they must have better rights to challenge, as the hon. Member just said.

Freeholders on managed estates are currently at a disadvantage compared even with leaseholders, for whom the system is not perfect by a long way, regarding their ability to challenge costs and poor service. Leaseholders already have certain protections and rights that enable them to hold landlords and management companies to account, yet freehold homeowners have no such equivalent, although they may be paying for very similar services. The situation is clearly unfair, and we are committed to introducing legislation to plug the gap.

Let me come on to what we intend to do, which I am sure Members are keen to hear. We intend to create a new statutory regime for freehold homeowners based on the rights that leaseholders have. We will give homeowners the right to challenge the reasonableness of the estate management charges at the first-tier tribunal, and the right to change the provider of management services by applying to the tribunal to appoint a new manager. That will be an important power when a homeowner is unhappy with the service that they are receiving and there is a significant failure by the estate management provider in meeting its obligations.

The hon. Member for North Shropshire mentioned existing homeowner rights, which will depend on the ownership of the land and the terms of the transfer. People should seek independent advice on the options available to them. For example, if a management company is not complying with its obligations, homeowners may be able to use contract law and make an application to the county court for an injunction for specific performance. That will require the management company to comply with its obligations.

Resident-led management companies are independent companies to which residents are appointed as directors. Sometimes the articles of association, which set out how the company will run, will specify that homeowners are automatically part of the company and so can vote at the AGM. Homeowners may also be able to call extraordinary general meetings, and they can apply for an injunction for specific performance if the company is not complying with the articles of association of any management agreement. But we know we must do more, which is why we will consider introducing a right to manage for freehold homeowners. That will follow from our consideration of the Law Commission’s report and recommendations on changes to the right to manage for leaseholders.

It is not only estate management charges that need to be reasonable. As I mentioned in last week’s Westminster Hall debate, the principle must also apply to the administration fees that individual homeowners may face in their dealings with estate management companies. Therefore, we will legislate to require that all administration charges must be reasonable, which will mean that they may be challenged at the first-tier tribunal.

I want briefly to mention the Competition and Markets Authority’s house building market study.

[Richard Fuller]

Before the Minister moves on from charges, I wish to make the point that I made earlier, although she may not wish to comment now. If those changes are made, is it the Government’s intention that people who have been charged excessively, or can make the case that they have been, prior to that legislative change will be provided with access to those tribunal options?

[Rachel Maclean]

My hon. Friend’s point is very much in my mind. He is right to make it—he has made it to me multiple times—because it is a very important point. While the legislation is being prepared, I cannot comment specifically on the individual measures that will be in it, but I have no doubt that when we bring it forward, he will probe and challenge every part of it. I very much hope that we can achieve a successful situation at the end of that process.

In February, the Competition and Markets Authority launched a market study on house building, as part of which it will examine the fairness of estate management fees charged for unadopted roads and amenities. It will make recommendations about policy and regulatory changes. My hon. Friend the Member for North East Bedfordshire may be interested to find out about those.

There is also an issue of redress in relation to the fit and finish of residents’ homes on new estates. Invariably, the problems are the result of inadequate quality control. People have encountered unfinished roads, half-built playgrounds and a lack of recourse to resolve those issues, all of which are unacceptable. We have been clear that new housing developments should be finished on time and to a high standard. If things go wrong, homebuyers must be treated promptly and fairly.

There are existing routes to redress, which we are strengthening through the Building Safety Act 2022. We have included a provision for a statutory new homes ombudsman, which will make developers more accountable and make it easier and simpler for new home buyers to seek redress when things go wrong. We are considering the arrangements for the statutory scheme and are working on the next steps, which we will set out in due course. In the meantime, the independent New Homes Quality Board has established the voluntary new homes ombudsman service, which launched last autumn. It can handle complaints from homebuyers about new homes built by developers that have registered, and it is 100% free for homebuyers to use.

Let me turn finally to the most important matter for hon. Members: the timing of these changes. Unfortunately, I do not have much to add to what I have already said, which is that legislation for the next Session will be set out in the King’s Speech. Everybody in the Chamber will have heard the Secretary of State and I say that it is our intention that the King’s Speech will contain a Bill that will address the issues that have rightly been raised. That remains our priority.

Fairness needs to be at the heart of the housing system. The arrangements for the upkeep of open spaces and roads on freehold estates should always be clear to potential homebuyers, and costs charged must be transparent and reasonable. Homeowners need to have access to redress when things go wrong and be empowered to hold their estate management companies to account. That is why we remain committed to legislating as soon as we can. I thank all colleagues for their consistent advocacy and campaigning on this vital issue, which, as has been said, affects a million people around the country.

Oral Answers to Questions

Baroness Maclean of Redditch Excerpts

Monday 10th July 2023 Commons Chamber

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

The Government are committed to increasing the supply of affordable housing, which is why, through our £11.5 billion affordable homes programme, we will deliver tens of thousands of affordable homes for both sale and rent in communities up and down the country. When it comes to Chesterfield, I am aware that the local plan was adopted in July 2020, but ultimately local authorities are responsible for plan preparation and decision making, and they interpret national policy and guidance according to local circumstances.

[Mr Perkins]

I am grateful, but that is not really an answer to my question of whether the Minister considers that the amount of affordable housing is adequate. Under the Conservatives, the number of new social rented homes has fallen by over 80%, and there are now 27,000 fewer socially rented homes built each year than there were under a Labour Government. Meanwhile, hard-pressed mortgage holders are facing the highest interest rates in a generation. Is it not clear that neither renters nor buyers can afford another year of this Tory Government?

[Rachel Maclean]

I do not know whether the hon. Gentleman is aware that Chesterfield Borough Council is under the control of the Labour party, which, with the assistance of significant Government grant funding, is responsible for delivering affordable housing in the area. It is up to Chesterfield Labour party, in control of that council, to work with developers to make sure that planning obligations deliver the houses that local people need.

[Tom Hunt (Ipswich) (Con)]

We know that a lack of affordable housing can contribute towards an increase in homelessness. Of course, it is a big responsibility for different areas to tackle homelessness, and I am proud of what Ipswich does, particularly through organisations such as the Ipswich Housing Action Group. I am concerned to hear, though, that neighbouring authorities in the eastern region are sending their homeless people to Ipswich. Does the Minister agree that those authorities should shoulder the responsibility to tackle homelessness in their own areas and not send those homeless people to Ipswich? Will the Minister confirm that the Labour-led council can stop that happening if it wants to do so?

[Rachel Maclean]

I thank my hon. Friend for bringing this vital issue to our attention on the Floor of the House. Of course, we expect local authorities to work together to tackle homelessness and to alleviate those pressures on the most vulnerable people. It is right for his Labour council to work with any other council that has responsibility for that.

[Patrick Grady (Glasgow North) (SNP)]

11. What assessment he has made of the strength of the Union.

--- Later in debate ---

[Paul Holmes (Eastleigh) (Con)]

24. What steps his Department is taking to support house building.

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

House building is a priority for this Government. We have announced £10 billion-worth of investment in the housing supply since the start of this Parliament, and ultimately, our interventions are due to unlock over 1 million new homes. We are also investing £11.5 billion in the latest affordable homes programme, to provide tens of thousands of new homes across the country.

[Jane Stevenson]

As my question concerns Wolverhampton, with your permission, Mr Speaker, I would like to pay tribute to Councillor Ian Brookfield, the leader of City of Wolverhampton Council, who sadly passed away last week, aged only 57. Ian worked with many Ministers and the Secretary of State when the Ministry’s second headquarters moved to the city of Wolverhampton. He will be greatly missed by many people.

The Government have made a series of big investments in Wolverhampton, and that has positioned it as the centre of the home building industry. That includes millions of pounds for the National Brownfield Institute, the city learning quarter, and the Modern Methods of Construction taskforce. Will my hon. Friend the Minister support my campaign for an investment zone in Wolverhampton North East, stretching from Springfield brewery to the science park? That would help attract businesses to Wolverhampton, where they could capitalise on the expertise that our city now has in home building technology, and attract high-quality jobs to my constituency.

[Rachel Maclean]

I join my hon. Friend in paying tribute, on my behalf and on behalf of all Ministers in the Department, to Councillor Ian Brookfield.

I thank my hon. Friend very much for her question. She is an absolutely superb advocate for her constituents and the city of Wolverhampton. I am pleased to tell her that the investment zone programme is under way; a shortlist of eight places in England selected for inclusion in the programme was announced in the spring Budget, and the west midlands is one of them. We are co-developing proposals, and we will look very carefully at her proposal, for the reasons that she set out.

[Maggie Throup]

I draw my hon. Friend the Minister’s attention to the uncertain future of the housing development in Long Eaton in my constituency. It has been at a standstill since the termination of the house builder’s contract 10 months ago. What further support is available to encourage the site owner to complete the more than 100 homes planned for the site, so that the development is not left to deteriorate beyond repair?

[Rachel Maclean]

I am of course concerned to hear about the situation that my hon. Friend highlights, and I would be pleased to discuss it with her in more detail, if that would be helpful. More generally, we are introducing a range of measures to increase transparency about build-out, to ensure that when development proposals are brought forward, the development actually gets built.

[Jason McCartney]

Labour-run Kirklees Council is taking in millions of pounds from housing developers through the section 106 levy, but local people are losing confidence in the system, as they just do not see the money being spent on local schools, local roads or local health services. Does the Minister agree that developer contributions, which are given to improve local infrastructure that is affected by major housing developments, should be spent on just that?

[Rachel Maclean]

My hon. Friend highlights a most unsatisfactory state of affairs from Labour-run Kirklees Council. We are introducing a new infrastructure levy that will bring much-needed transparency. Local authorities, including Kirklees, should be spending that precious money on the infrastructure needed for local people.

[Kate Kniveton]

With the growth in development of new housing across my constituency, we must ensure that adequate provisions are in place to meet the essential needs of residents, such as at the Bramshall Meadows development, where residents are waiting for the play space they were promised, and at Branston Locks, where new healthcare services are needed to support that development. Can the Minister provide an update on what is being done to guarantee the successful and timely integration of these vital facilities in new housing developments?

[Rachel Maclean]

My hon. Friend highlights well on behalf of her constituents the vital and pressing need for the Levelling-up and Regeneration Bill, which includes measures to tackle exactly the issues she has highlighted. It will introduce a new infrastructure levy, which will reform the system of developer contributions, bringing certainty and transparency over the infrastructure needed to be delivered alongside development.

[Peter Aldous]

To address the housing crisis, we need to be building more homes for social rent, and planning departments must be properly resourced in personnel and funding. Will my hon. Friend set out the steps she is taking to address those two specific issues?

[Rachel Maclean]

My hon. Friend speaks with considerable expertise on these matters. We know that many local planning authorities are facing capacity and capability challenges, which is why we have developed a programme of support, working with partners across the planning sector, to put more skills and capacity into planning authorities. Our levelling up White Paper is committed to increasing the supply of social rented homes across the country.

[Paul Holmes]

Lib Dem-run Eastleigh Borough Council, which is developing 2,500 homes on Horton Heath, last week passed a planning amendment to recklessly remove all affordable housing obligations, despite its being the developer of the site. Will my hon. Friend condemn that cynical move and assure me that no Homes England money will be used to backfill the gap?

[Rachel Maclean]

I thank my hon. Friend for highlighting the reckless behaviour of his Liberal Democrat-run council. I completely agree that it is a disgraceful state of affairs. The council should be using that funding secured to deliver the affordable housing that his residents rightly need and deserve. As he suggested, Homes England will definitely not be contributing to backfilling that need.

[Mr Speaker]

I call the Chair of the Select Committee.

[Mr Clive Betts (Sheffield South East) (Lab)]

I do not doubt the Minister’s good intentions on house building, but does she accept that, according to her own Department’s figures, housing starts fell by 12% year on year in the first three months of this year? That is down to a figure of just more than 37,000 starts, which is half the figure needed to hit 300,000 homes a year. On that basis, does she conclude like me that not merely is her policy not succeeding in hitting the housing targets, but it is considerably contributing to their failure?

[Rachel Maclean]

The hon. Gentleman brings his considerable knowledge to this matter, but I will take no lectures from him and the Labour party on house building. This Government delivered 242,000 houses in 2019-20—that is the highest level for more than 30 years, including the entire time that the Labour party was in government.

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

We do not just need to build affordable homes; we also need to build high-quality homes that are fit for the future and climate-resilient. In the past six years, the average cost of repairing a home from flood damage has been £60,000 a property, and Aviva calculates that one in four homes is now at risk of flooding. Will the Government ensure that their proposed national planning policy framework will finally prevent unprotected homes from being built in flood risk areas?

[Rachel Maclean]

The hon. Lady raises an important issue. The consultation on the NPPF has been well subscribed. We are analysing the responses now, but I am sure we will be able to say more in due course.

[Tim Farron (Westmorland and Lonsdale) (LD)]

In Westmorland and Lonsdale, average house prices are 12 times average household incomes. The danger we have is that when we see houses developed, we are meeting demand, but not need. Should the Government not give us far greater planning controls, so that we can ensure that we do not see 100 homes built that are a waste of bricks going into the second home market? Instead, we should ensure that they are affordable homes, socially rented for local families.

[Rachel Maclean]

Local authorities have a huge amount of freedom. They have been given the tools by the Government through legislation, through developer contribution powers and through Homes England grants to deliver affordable homes. The hon. Member will also know about the wider work we are doing on second homes to enable local authorities to raise council tax. I hope he can see that the direction of travel will help alleviate some of the pressures he has highlighted.

[Rachael Maskell (York Central) (Lab/Co-op)]

The Government are notoriously bad at disposing of public land—I need only look at NHS Property Services and the seven-year wait on the Bootham Park hospital site, and at Ministry of Defence land—so will the Minister look at how that can be co-ordinated and handed over to Homes England so that we can get building the housing that is desperately needed in places such as York?

[Rachel Maclean]

The hon. Lady will be pleased to hear that this is a priority for us. I take issue slightly with her comment that we have a poor record of disposing of public land. Often, that public land is needed by hospitals and the MOD. So we are working closely and looking at where such land can be brought forward for housing. If it can, we absolutely will be doing that.

[Peter Grant (Glenrothes) (SNP)]

Among the SNP failures that the Secretary of State chose not to mention is the fact that, since the SNP came to government in 2007, we have been building new council and social-rented houses at nine times the rate of any Government covering England. Does the Minister accept that if successive Labour and Tory Governments had followed the SNP’s example in Scotland, the housing crisis in England would be far less than it currently is?

[Rachel Maclean]

No.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister very much for her responses. One of the key issues is for urgent planning decisions to be made. The Minister has a keen interest in Northern Ireland, where the population has risen by about 100,000 up to 1.9 million. One thing that needs to be done is on infrastructure decisions, which need to be made here nationally, not regionally. What discussions has she had with the Northern Ireland Assembly to ensure that those decisions can be made to the benefit of all of us in the United Kingdom of Great Britain and Northern Ireland?

[Mr Speaker]

Only if the Assembly sits.

[Rachel Maclean]

I thank the hon. Gentleman so much. He is an active participant in all the debates we have on these issues. I continue to work closely with him and his colleagues in Northern Ireland, because we can work together and learn lessons from each other.

[Lisa Nandy (Wigan) (Lab)]

Do the Government realise how absurd all of this sounds? Their own flagship Levelling-up and Regeneration Bill, which is currently making its way through the House of Lords, has measures in it to block new homes from being built, and yet the Minister stands here berating councils for getting in the way. All of this is happening because Conservative Back Benchers have more control of housing policy than their Government. So when the local Conservative MP in Cambridge says that his latest scheme “will not happen”, he is probably right, is he not?

[Rachel Maclean]

I do not quite know how to give that a serious response. I have just set out in huge detail all the work backed by public funding—taxpayers’ money—going into delivering the houses that people need up and down the country. As far as I can see, the only people blocking housing development are those such as the hon. Lady, who is objecting to developments in her own constituency.

[Lisa Nandy]

It is literally in the Government’s own Bill—they are trying to block new houses from being built. They have had 17 housing Ministers and three planning overhauls, and house building is at its lowest level for a generation.

[Lisa Nandy]

The Secretary of State wants to talk now—why did he not take the question? I suspect it is because he has again run into so much opposition from his Back Benchers about a story briefed only yesterday that he has had to abandon it. One hundred small and medium-sized house builders have been protesting to Downing Street and mortgages have gone through the roof. It really does take some brass neck to present that as anything other than an appalling record.

I have in my hand an analysis that shows that all this chaos will cost the economy £44 billion. Are the Government the only people left in Britain who cannot admit that the housing crisis, the mortgage crisis, the cost of living crisis and the economic crisis have one cause: Tory government?

[Rachel Maclean]

That was a flight of fantasy with several hundred questions. I am happy to engage with the hon. Lady on the detail of the clauses in the Levelling-up and Regeneration Bill, but I am proud of the Government’s record in bringing forward levelling-up across the whole country, with house building backed by billions of pounds of public funding and taxpayers’ money. As I said in answer to the hon. Member for Sheffield South East (Mr Betts), our house building record is greater than that of her party for the entire time they were in government.

[Ben Everitt (Milton Keynes North) (Con)]

17. What steps his Department is taking to end rough sleeping.

--- Later in debate ---

[Andrew Lewer (Northampton South) (Con)]

T3. What assessment has the Department made of the use of cash retentions in the construction industry and of possible measures that could prevent the practice, which causes cash-flow issues and costly administrative burdens for subcontractors, including those involved in house building?

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

My hon. Friend will know that that policy area is led by the Department for Business and Trade. Nevertheless, it is important that we work closely with a wide range of stakeholders and businesses to achieve a consensus. It can sometimes be challenging, but we are clear that any solution must be a sustainable one that works for the industry and its clients, addressing the need for surety and fair payment.

[Christian Wakeford (Bury South) (Lab)]

T2. It has been more than 50 days since the Renters (Reform) Bill was introduced to Parliament. Despite ample parliamentary time, the Government have failed to set a date for Second Reading. In the last few weeks alone, the House has finished at 2 pm and 5 pm due to the Government bringing forward no business. Why do the Government not care about renters?

[Richard Fuller (North East Bedfordshire) (Con)]

T5. The recent transfer of the administration of home equity loans from Target to Lenvi has gone appallingly badly, with my constituents reporting unanswered emails and phones that ring out with no reply when they are looking to transfer their home in a time-critical phase. Will my right hon. Friend update me on what is going on with the administration?

[Rachel Maclean]

I have been having daily meetings with Homes England and the service provider. It is the case that there have been some issues with the transfer, as my hon. Friend highlights. I want anyone listening to this to know that they can contact either their local MP or the service line, and we will resolve it. I have insisted that additional call centre staff are available and extended working hours. We are very much seeing the issues being worked through at pace now.

[Mr Virendra Sharma (Ealing, Southall) (Lab)]

T4. According to figures from PricedOut, over the last 50 years housing has become over 13 times more expensive and tenants are now spending up to half their income on rent alone. If that trend continues, only one in three people born this year will own a home before they are 50. The Government’s scrapping of housing targets and surrendering to Back Benchers opposed to new housing will only make the situation even worse. When will the Government grow a backbone, stand up to those MPs and build the houses we need to avoid catastrophe?

--- Later in debate ---

[Gareth Johnson (Dartford) (Con)]

T9. Property management companies are undoubtedly holding back home ownership. New homeowners are often obliged to sign up to contracts that they cannot leave. That leaves them stuck with inflated fees, and very often with poor services. I am sure the Minister agrees that management companies need their activities curbed; they need legislation imposed on them so that we can get back to a fairer system of housing.

[Rachel Maclean]

I agree entirely. I thank my hon. Friend for the excellent debate that he brought to Westminster Hall, in which we discussed these issues in detail. I am happy to reiterate to the House that we will legislate, when parliamentary time allows, to deal with many of the issues that he has raised that are affecting freehold homeowners.

[Mike Amesbury (Weaver Vale) (Lab)]

The Secretary of State said that he had the noble aim of abolishing the feudal leasehold system. Could he update the House on his progress on the abolishment of that feudal system?

Building Safety and Social Housing

Baroness Maclean of Redditch Excerpts

Thursday 6th July 2023 Commons Chamber

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

It is a pleasure to conclude the debate on behalf of the Government.

Six years on—as the powerful and moving contributions to the debate have illustrated—the still unimaginable events of 14 June 2017 continue to demand searching answers from us as a country about who we are and who we aspire to be. They reaffirm the unshakeable commitment across this House to those most affected: the commitment to provide long-term support for recovery and the rebuilding of shattered lives, and to provide a legacy worthy of the 72 men, women and children who lost their lives. We honour their memory, and the courage and dignity of the bereaved and the survivors in the Grenfell community. I am pleased to see them represented here today; it was humbling and a privilege to have a conversation with a few of them before I came to the Chamber. Their quest for truth and justice and their campaigning, in the interests of others, to reform systems that so grievously failed them is humbling and inspiring in equal measure.

As we have heard, the issues raised by those in the Grenfell Tower community had been present for many years. Their calls for change went unanswered and their concerns were ignored. They were failed by the institutions and mechanisms developed to support and protect them. As the Secretary of State has said, we are determined to learn from the past so that no community ever again suffers as they have. More than anything, that must mean people being safe in their homes.

As the Minister responsible for housing, I am aware of the heavy debt we owe the Grenfell community. Over the past year, that has involved making homes with the most dangerous cladding safer, protecting leaseholders from unfair and punitive remediation costs, getting those responsible to face up to their financial and moral responsibilities, and fundamentally overhauling and strengthening the entire building safety system.

The Grenfell community has also rightly kept up the pressure on my Department to ensure that we never again ignore the voices of people living in social housing, and that it provides the safe, decent homes and respectful, good-quality services that they expect and deserve. Awaab Ishak’s tragic death underlined the urgency of that work, which we are taking forward through the Social Housing (Regulation) Bill, amended to include Awaab’s law—new requirements for social landlords to address hazards such as damp and mould within a fixed timeframe.

There is, of course, much more to do, and I do not underestimate the toll that six long years of waiting for the truth and for justice to be done has taken on the people of North Kensington. Like them, we keenly await the publication of the Grenfell Tower inquiry’s final report—we have already begun implementing recommendations in the phase 1 report—and the outcome of the ongoing Met police investigation. We also look forward to seeing a fitting and lasting memorial delivered at the Grenfell Tower site through the Grenfell Tower Memorial Commission, working in partnership with the community. I join the Secretary of State in paying tribute to the commission’s work. However, beyond truth and justice, the greatest legacy we can deliver is a continued commitment to listening, learning and acting to secure a better future for all—a profound commitment that I know is shared across the House.

Let me turn to some of the points raised by hon. Members in the debate. We heard from the hon. Member for Hammersmith (Andy Slaughter), from the SNP spokes- person, the hon. Member for Glasgow South West (Chris Stephens), and from the hon. Member for Putney (Fleur Anderson), as well as from the two Labour spokespeople, the hon. Members for Greenwich and Woolwich (Matthew Pennycook) and for Liverpool, Wavertree (Paula Barker). I thank them all for their contributions.

We recognised that sprinklers could play a greater role, so we lowered the threshold for the provision of sprinkler systems in new blocks of flats from 30 metres to 11 metres in 2020, following a consultation on sprinklers and fire safety measures, through changes to approved document B. Sprinklers are only one of a range of measures that can be provided in buildings, and building owners are already bound by a clear obligation to ensure that existing buildings have a suitable and sufficient fire risk assessment in place. Retrofitting sprinklers is not always the right option; other fire safety measures, such as measures recommended by phase 1 of the Grenfell Tower inquiry, may be more appropriate for an individual building.

I was asked how people living in buildings under 11 metres can be helped when they face expensive bills for remediation. It is the ultimate responsibility of building owners to ensure that residential buildings of all heights are safe, and the consensus is that the level of risk tallies with the height of the building. The risk to life is usually lower in buildings under 11 metres in height, which are very unlikely to need costly remediation to make them safe. Indeed, a fire risk appraisal of external walls conducted in accordance with the PAS 9980 principles will often find that lower-cost mitigations are more appropriate in low-rise buildings. Nevertheless, my Department has committed to looking at buildings under 11 metres where remediation costs are involved on a case-by-case basis. We think that is the right approach.

We have banned ACM cladding on all new builds. At the end of May 2023, 96% of all identified high-rise residential and publicly owned buildings in England had either completed or started work to remove and replace unsafe cladding, and 450 buildings—92%—no longer have unsafe ACM, with 84% having completed ACM remediation work. We continue to keep up the pressure to ensure that that job is finished.

[Fleur Anderson]

Is there a date by which the Minister would like to reach 100% removal of ACM cladding?

[Rachel Maclean]

Of course, we would all like to see that happen much more quickly. That is why we are continuing with the legislative measures that we have set out, including the Building Safety Act and all the other work that goes behind that, as the Secretary of State said.

I was asked about social housing regulation. The direction of travel is clear: residents have spoken and reform is coming to the social housing sector. We are committed to implementing the new regulatory regime enabled by the Social Housing (Regulation) Bill. I thank Opposition Members for assisting us with passing the Bill. The new regime will be implemented in 2024. The Secretary of State will consult on any directions to the regulator, and the regulator will then need to consult on its proposed consumer standards. That is just part of a wider programme of work to drive up the quality of social housing and reduce the number of non-decent rented homes by 50% by 2030. That includes tougher regulation and a strengthened housing ombudsman service, a review of the decent homes standard, and providing residents with more performance information.

Mr Deputy Speaker, 72 months since the Grenfell community lost 72 family members, friends and neighbours, the enormity of what happened that night in June 2017 remains inescapable. Those who never made it out of the tower paid with their lives, in the homes where they should have been most safe, for collective failings, including on the part of the Government, for which we have apologised. Six years on, those left behind continue to wait for answers and for those responsible to be held to account, not just today but every day, as they count the cost of precious lives cut short—six years of missing seeing loved ones grow up or grow old; missed life milestones; meals unshared; ordinary, everyday memories unmade. No apologies—no words—are enough to right those wrongs.

As the Secretary of State said, we will be judged not on our words but on our actions—actions to make homes safer and greener; to improve social housing and amplify the voices of residents; to make sure that those responsible step up or face the consequences; to provide long-term support for the Grenfell community for as long as it takes; to learn from the past, get to the truth and see justice done; and to ensure that everyone in our society has a safe, secure place to live that they are truly proud to call home. Let that be Grenfell’s abiding legacy.

Question put and agreed to.

Resolved,

That this House has considered building safety and social housing.

Freehold and Leasehold Reform

Baroness Maclean of Redditch Excerpts

Wednesday 5th July 2023 Westminster Hall

[Jeremy Corbyn (Islington North) (Ind)]

It is a pleasure to take part in the debate. I thank the hon. Member for Dartford (Gareth Johnson) for securing it, and every one of us could amplify everything he said with very similar experiences from our own communities, even though the areas we live in are often very different geographically.

My constituency is spread between about 40% social rented, 30% owner-occupation and 30% in the private rented sector. The debate is essentially about owner-occupation and leaseholds, but within that 30% very few, or certainly a declining number, are in what I would call traditional freehold properties—where somebody owns the house and land, and their costs are their mortgage, if they have one, and all the relevant bills, but there are no service charges because there is no other involvement.

Any place that is now sold in my constituency as a single-family home inevitably gets bought by a property company and is divided up into a number of flats. Dividing a place up into flats is not of itself wrong, but the quality of the conversion is often a problem as is the resulting ownership issue. In my constituency, people who have bought a flat either in a new development or in a converted property are suffering appalling levels of stress; they believed they were going to have to pay a reasonable ground rent and reasonable service charges and management fees but then find after a very short time living there that they have no control whatsoever over any of those issues.

The system is very badly designed. Indeed, perhaps it was not designed at all, but it is so badly in existence that there is a positive incentive to manage badly, charge extortionately and be abusive towards those who live in these leasehold properties. This has been recounted by the hon. Members for St Ives (Derek Thomas), for Ellesmere Port and Neston (Justin Madders) and for Dartford and I can absolutely relate to it.

Many people have got in touch with me about this and I want to give an example. In a sense, the business model of those who buy into the leasehold sector is appalling and offers incentives in all the wrong directions. There are five examples of that. The company that owns the property sets out charges to the leaseholders in the property and will directly benefit from having unnecessary work done in the building. Totally unnecessary work is created by the management company, and the leaseholder has no say in whether it is done and no say in the contractor who does it, yet they have to pay for it. There is an incentive for the company to choose the most expensive contractor and then charge on for it. Some of these companies are also incredibly litigious and threaten to take flat owners to court to start proceedings for repossession as soon as there is any element of late payment. Remember that many people who buy leasehold flats for the first time are young and have young families. They are in the most expensive and difficult times of their lives, and there is the greatest pressure on them as a result, so the stress levels are huge. The companies consistently use the same small set of suppliers across many of their properties, and those suppliers are also complicit in the running up or invoicing of ridiculously high charges across their whole estate portfolio. When residents try to communicate with the companies, they get fobbed off, blocked, or threatened with legal action and legal letters. The stress levels are appalling.

Let me give an example about electricity:

“In our most recent service charge 3 months ago, we were collectively billed £4k for commons parts electricity”—

the common parts have the amazing total of 10 LED lightbulbs in them, and:

“This was 10x the estimated expense for the period. Upon inspection it became clear that the power provider…chosen for us failed to take a single meter reading for the entire year and ‘estimated’ our bill.”

When the residents highlighted that, the company demanded they pay the total figure anyway. They are now in dispute over it.

There are many examples of excessive charges for minor or often unnecessary works or, as the hon. Member for Dartford pointed out, ludicrous charges for the almost non-existent cleaning of common parts. That can be just running a hoover over the carpet once a month, yet people are told to pay several hundred pounds a year for that kind of thing. It is the same with refuse collection, rubbish collection and so on. There must be some big changes to that.

The last testimony I will give is from somebody who bought a flat that they believed would be affordable. They then discovered that the company was

“proposing decorating works on our building at a cost of £19800. We received a quote of £7600 for exactly the same work from a local contractor. Although we nominated this contractor, as is our right, they have chosen to go ahead with the company that they always use. We can challenge this at tribunal but we would need £8-£10000 upfront costs”.

They have to pay that even to get a hearing. If ever there was an area that needed substantial investigation and reform, it is surely this one. People feel disempowered, angry and frustrated. They cannot sell and cannot move, and they have no idea what charges are coming down the road.

I have dealt with many cases of leaseholders who either bought their place from the local authority under right to buy or who bought it from somebody else who did. They often dispute the capital works charge or service charge. Sometimes they are right and sometimes they are not, but there is a clear process by which they can make that complaint. They can make it to the local authority, which is accountable. It is not always perfect, but there is usually agreement at the end, because there is a degree of accountability. With the companies, there is no accountability whatsoever. Every power lies with the person who has invested money to make a vast return, and the returns that are being made on leasehold properties are enormous.

I hope that the Minister will recognise that the stress that we are expressing—

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

indicated assent.

[Jeremy Corbyn]

I see the Minister nodding; I thank her. I hope that she understands that the issue is not isolated to any one part of the country. The whole country is suffering from this, and we urgently need a serious process of leasehold reform that gives people some power over their own lives and in their own homes.

--- Later in debate ---

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

It is a great pleasure to respond to this debate and to serve under your chairmanship, Mr Sharma. I thank my hon. Friend the Member for Dartford (Gareth Johnson) for securing today’s debate, in which there is strong parliamentary interest. As many Members have highlighted, I have spoken about these matters many times in this Chamber and the main Chamber, but I am happy to set out in a lot more detail the Government’s position.

I thank the other Members who have contributed, including my hon. Friends the Members for St Ives (Derek Thomas) and for Congleton (Fiona Bruce), the hon. Member for Ellesmere Port and Neston (Justin Madders), the right hon. Member for Islington North (Jeremy Corbyn), and the hon. Member for Strangford (Jim Shannon), who highlighted many of the things that we can learn from working across our United Kingdom. I am grateful to him, as ever.

There is a broad consensus on the case for change. I want to reassure Members that the Government remain committed to creating a fairer housing system that works for everyone. We will introduce further reforms in this Parliament to address the historical imbalance in the leasehold system.

As this debate has shown, the imbalance stems from the unequal power dynamic inherent in leasehold ownership, in a system with landlords often acting in their own interests and leaseholders bound by a lease that can be decades old and not easily changed. As we have heard today, particularly from my hon. Friend the Member for Dartford, freehold owners may also be subject to the will of third party interests.

We have already taken important steps to address the matter, having introduced the Leasehold Reform (Ground Rent) Bill in May 2021—I thank the hon. Member for Greenwich and Woolwich (Matthew Pennycook) for his and his party’s support in passing that Bill. Since coming into force on 30 June 2022, it has prevented landlords in most new leasehold homes from charging any financial ground rents at all. That was a very important first step, but there is more to do to tackle the power imbalance.

We are committed to improving leasehold tenure—by helping existing leaseholders to better understand and challenge their charges or the services they pay for, take control of their homes or buy their freehold—and to providing a freehold alternative from the outset, with improved rights for those that pay estate charges.

As a tenure, residential leasehold is time-limited and control is shared with the landlord. The leaseholder’s decisions about their home, including the charges that they pay for services, are usually made by someone else—the landlord or the managing agent working for the landlord—but paid for by the leaseholders. The landlord might not even live in the building or have the same priorities and motivations in mind. We have heard multiple examples today about how that negatively impacts leaseholders. My hon. Friend the Member for Congleton is completely right to say that those are decent, hard-working people who have done the right thing and deserve to live in their homes in peace and security. It is the largest asset they are likely to buy, so it is wrong that they are being ripped off—if that is a parliamentary term.

High service charges are being levied for carrying out simple requests. Managing agents are not providing a level of service that leaseholders should expect. Urgent repairs are being neglected, crippling costs are levied for buying out or extending a lease and leaseholders are charged exploitative and increasing ground rents in exchange for no services at all. For freehold homeowners who already have an expectation of control over their properties, we understand the concerns raised today and we will act. We will continue our programme of action to remedy those abuses and provide the vision of home ownership that leaseholders should expect, which is greater control over their own home, greater accountability or involvement in key decisions on what they are paying for and, ultimately, a place of safety, comfort and security for them and their family.

[Gareth Johnson]

The Minister says in her speech that the Government will act to deal with the abuse by management companies and the imposition of fees for freeholders. Does she mean by “act” that legislation can be expected?

[Rachel Maclean]

I ask my hon. Friends and other Members for a little patience while I proceed through my speech. I want to set out precisely the Government’s commitment to legislation because I know that is the question that everybody wants to be answered and I have limited time in which to do that.

My hon. Friends the Members for Dartford and for Congleton pointed out that freeholders on new estates must pay charges towards the maintenance or upkeep of communal areas. The obligation to pay those charges might be provided by a deed of covenant or through an estate rent charge that forms part of the purchase contract. The Government believe that when buying a home, it should be clear to potential purchasers what the arrangements are for the maintenance of roads and upkeep of open spaces, public or otherwise. That information is most often set out in a freehold management inquiry form, which is published by the Law Society and widely used across the sector. However, I know that that information was not provided to some, or perhaps not drawn to their attention, at the point of purchase. Furthermore, in many cases contracts do not specify, limit or cap those freeholder charges. To compound matters, when people receive an invoice, they are not provided with information about what the charges cover. Much as with leaseholders, that lack of transparency, both at the homebuying stage and when people have settled into their property, leaves homeowners in a vulnerable position and is something that the Government intend to address.

Leaseholders already have certain protections and rights that will enable them to hold management companies to account. Freehold homeowners have no equivalent, even though they might be paying for the same or similar services, as highlighted in the remarks by my hon. Friends. The current situation is unfair. Where they are required to contribute, it is not appropriate that people have limited rights to challenge those costs, and we are committed to introducing legislation to plug that gap. We intend to create a new statutory regime for freehold homeowners based on the rights that leaseholders have, ensuring that estate management charges are reasonably incurred, that services provided are of an acceptable standard and that there is a right to challenge the reasonableness of charges at the property tribunal.

We will also give a right to change the provider of maintenance services by applying to the tribunal for the appointment of a manager. That might be useful if a homeowner is dissatisfied with the service they are receiving or there is a significant failure by the estate management provider in meeting their obligations. We will also consider the option of introducing a right to manage for freehold homeowners. It is not only estate management charges that need to be reasonable; that principle must also apply to administration fees that individual homeowners may face in their dealings with the estate management company.

Turning back to leaseholders, as highlighted by the hon. Member for Ellesmere Port and Neston and the right hon. Member for Islington North, there is a similar situation. Leaseholders complain of unreasonable and excessive service charges and we strongly believe that service charges should be transparent and communicated effectively, with a clear route to challenge or redress if things go wrong. Many landlords and managing agents already demonstrate good practice and provide relevant information, but too many do not and are failing to provide sufficient information or clarity to leaseholders, especially over fees and service charges.

We recognise that the existing statutory requirements do not go far enough to enable leaseholders to identify and challenge unfair costs. That is why we will take action to support and empower leasehold homeowners. We will take action to increase service charge transparency to help leaseholders better understand what they are paying for, make it harder for landlords or managing agents to hide rip-off charges and enable leaseholders to more effectively challenge unreasonable fees or charges. I also want leaseholders to know that they can seek free advice from an organisation funded by the Government, the Leasehold Advisory Service, if they are concerned about charges that they are asked to pay.

[Jeremy Corbyn]

That sounds like a very promising development. Is the Minister aware that there is sometimes a problem with the ability to challenge because of legal processes or the enormous costs involved, so some people, such as the residents I was referring to, do not have the power to make a challenge even though that would be very justified?

[Rachel Maclean]

I thank the right hon. Gentleman for that point and he is absolutely right. He will hear about some of the things we are going to do to make it easier and fairer and not as expensive to challenge, and I shall to set out some more detail now.

When leaseholders challenge their landlord, we know, as the right hon. Gentleman said, that they are sometimes subject to unjustified legal costs, and we are committed to ensuring that leaseholders are not subject to them and, where appropriate, can claim the legal costs from the landlord, which certainly seems fairer than the current situation. Currently, if set out in the lease, leaseholders might be liable to pay their landlord’s legal costs regardless of the outcome of a dispute—even if they win the case. That is a classic case of heads you win, tails you lose. Also, the circumstances in which a leaseholder can claim their own legal costs from a landlord are currently very limited. That may lead to leaseholders facing higher bills than the charges being challenged in the first place and can deter leaseholders from taking their concerns to the courts or property tribunal, as the right hon. Gentleman says.

Whether on freehold estates or in leasehold or commonhold blocks, we are committed to raising professionalism and standards among all property agents, protecting consumers while defending the reputation of good agents from the actions of rogue operatives. I know that my hon. Friend the Member for Dartford has been working on that issue in his constituency, and I can assure him that I will continue to work with industry—I have regular dialogue with it—on improving best practice across the sector, including on codes of practice for property owners.

Ground rent was particularly highlighted by the hon. Member for Ellesmere Port and Neston, and we are concerned about the escalating costs of ground rents for leaseholders who still pay them. As many will know, we asked the Competition and Markets Authority to investigate the potential mis-selling of homes and unfair terms in the sector and it has been successful in securing commitments benefiting over 20,000 leaseholders, including removing doubling ground rents.

Both enfranchisement and the right to manage help give leaseholders greater control. In most cases managing agents would still be used, but they would be accountable to leaseholders directly, rather than a third-party landlord, ensuring that interests are aligned. For those who want greater control over their homes, many leaseholders find the process for extending their lease or buying their freehold prohibitively expensive, complex or lacking in transparency and we equally understand that many right-to-manage applications fail on technicalities attributed to overly detailed procedure, which is why we asked the Law Commission to look into that. It has since published reports on enfranchisement, valuation and the right to manage.

To reduce the cost of enfranchisement, we are committed to tackling the problems with these existing arrangements at their root. We will abolish marriage value and cap ground rents in enfranchisement calculations, so that leaseholders who currently pay onerous ground rents do not also have to pay an onerous premium to buy their freehold. These changes will result in substantial savings for leaseholders, particularly those with less than 80 years left on their lease. These changes will also make sure that sufficient compensation is paid to landlords to reflect their legitimate property interests.

To make the process simpler and more transparent, we will introduce an online calculator to help leaseholders understand what they will pay to extend their lease or buy it out, and the Government are committed to reforms to improve access to the existing right to manage, whereby leaseholders may take over the management of their block without having to buy the freehold. We want to make the process of exercising the right to manage simpler, quicker and more flexible, and make the operation of it more effective. To that end, we are carefully considering the detail of the Law Commission’s recommendations.

To give homeowners greater control, we want to make sure that the benefits of freehold ownership are extended as far as possible. We remain committed to banning the sale of new leasehold houses so that, where possible, all new houses are provided as freehold from the outset. For flatted developments, we want to reinvigorate commonhold so that it can become a mainstream and widespread freehold alternative to leasehold for both new and existing flats. Again, we are reviewing the Law Commission’s detailed recommendations, which propose legal fixes that will make commonhold a desirable alternative in more and more settings. We have established the Commonhold Council, made up of consumer and housing industry experts, to advise the Government on how to prepare both consumers and the market for the widespread use of commonhold. Furthermore, the Leasehold Reform (Ground Rent) Act 2022 is levelling the playing field for future commonholds as well as benefiting new homeowners. It removes ground rents from new leaseholds, and the associated financial incentives for developers to build leasehold over commonhold, where ground rents were never permitted.

I thank my hon. Friend the Member for Dartford for prompting such a vital debate and everybody for their contributions, and I am pleased that we have been able to discuss these issues properly. We plan to introduce reforms in the King’s Speech, which will take place in the autumn, so the reforms should take place within this Parliament. I recognise that every single Member would like a more detailed timeline, but I will continue to have these discussions, as Members have implored, both with my colleagues in the Department and with those across other channels who are responsible for tabling legislation.

[Fiona Bruce]

Would the Minister be willing to have a discussion with the residents I have referred to in more than one debate? I would be very grateful.

[Rachel Maclean]

Of course. I would be absolutely delighted to meet my hon. Friend’s residents. I implore her to contact my office so that we can arrange that as soon as we can.

I hope this debate has demonstrated to the House, leaseholders and homeowners on freehold estates across the country our continued commitment to reform and to making things better. I am grateful to Members across the House, campaign groups and members of the public for highlighting the difficulties that homeowners face. As I am sure Members can appreciate, this is a significant undertaking, and I look forward to coming to the House with more detail as soon as I am able to.

Housing Infrastructure: Essex

Baroness Maclean of Redditch Excerpts

Wednesday 21st June 2023 Westminster Hall

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

It is a huge pleasure to respond to my former colleague in the Home Office, my right hon. Friend the Member for Witham (Priti Patel), and if you will indulge me for one moment, Dr Huq, to congratulate her from the Dispatch Box on her recent honour. She is now a dame, which is incredibly well deserved. I also thank her for her kind words about my work as a Minister. If I am a good Minister, it is because I learned it all from her. I saw her work as the Home Secretary, which is definitely the most difficult job in Government.

Back to matters connected to Witham, we share my right hon. Friend’s desire for the housing and planning system to work for absolutely everybody. We want to make this a country of home ownership. We are the party of home ownership, and we completely agree with her that we want to enable young people to buy a home of their own, and for families to have peace of mind that where they sleep is safe. Housing is at the heart of our efforts to level up growth across the country, including in Essex. That is the power of levelling up: it sees no community left behind. Essex is a thriving and growing area that contributes to the Treasury, as my right hon. Friend pointed out. It is one of the fastest growing parts of the country.

The Government are standing behind the ambitions of Essex and enabling it to unlock even more potential for its residents and people who would like to live there. That is why we have invested significantly in the renewal of town centres across the county. She mentioned a few of them, as did my hon. Friend the Member for Thurrock (Jackie Doyle-Price). One example is the £85 million investment that we are putting into Harlow, Colchester and at Grays and Tilbury in the Thames estuary through the towns fund. A further £80 million will be invested in four levelling-up fund projects in Southend, Harlow, Colchester and Tendring. Essex is also the only county set to benefit from the creation of not one but two freeports: Thames Freeport in the south of the county and Freeport East in the north-east. I know that those will be huge economic drivers for the county.

My right hon. Friend the Member for Witham talked in huge detail about all the knotty issues connected to the planning system, and I fear that I will detain the House for too long if I elaborate at great length, so I will pick out a few key points. I will, however, happily respond to her invitation and meet with her, and with some of the groups that she mentioned, such as the all-party parliamentary group for the east of England, to discuss the matter in more detail. She is right in her central observation that we cannot do this in our Department alone; we have to bring together all the different levers of Government—Government funding, the Treasury, the Department for Levelling Up, Housing and Communities, and transport, as she specifically mentioned.

My right hon. Friend expressed the frustration of her constituents when they see development that is not in line with the local plan. That is why we are working to strengthen the role of local plans in the system through all the measures in the Levelling-up and Regeneration Bill. That is absolutely right, because residents feel frustration when local plans are not in place, or cannot be enacted. Speculative development then comes in, leaving local communities feeling ignored. Communities in Witham are very fortunate to have such an effective champion, so their concerns are being heard here. That is why we are making changes to the planning system through the Levelling-up and Regeneration Bill, including to strengthen the role played by neighbourhood plans, which are a valuable means for communities to shape their surroundings.

The national planning policy framework includes important protections for neighbourhood plans where speculative applications have been submitted and conflict with the plan. For instance, if a local planning authority cannot demonstrate a five-year supply of housing sites, which is currently required, a neighbourhood plan may benefit from protections. We are consulting on proposed changes to the paragraph 14 protections in the framework, which, as my right hon. Friend will know, will extend the time period that qualifying neighbourhood plans are afforded under paragraph 14 from two to five years, in recognition of the time it takes to produce a neighbourhood plan. We propose removing the requirement that a local planning authority has at least a three-year supply of deliverable housing sites and that its housing delivery is at least 45% of what was required over the previous three years. That will enable more neighbourhood plans to benefit from those protections, and I hope her residents will find that change reassuring.

The changes will empower local communities and place them at the heart of the planning system, and will remove barriers to building more homes. I will make a few remarks on the five-year land supply because, again, my right hon. Friend has effectively said how controversial that can be and how it can lead to developments coming forward in a way that does not come under the support of local areas. We propose removing the requirement for local planning authorities to maintain a five-year housing supply when they have an up-to-date local plan. We intend to make changes to simplify the policy as well as to clarify the use of historical over-supply in five-year housing land supply calculations. We will come forward with the outcome of our consultation analysis. That will provide yet more incentives for local authorities to work closely with their communities to agree local plans.

It is sometimes reported that we have dropped house building targets. That is not the case. I assure colleagues that we are absolutely committed to building the homes this country needs—the 300,000 homes that we need to be building. We are delivering them through a plan-led system with the consent of local communities that commands the support of Parliament, our colleagues and local democracy, which is at the heart of what we are doing.

[Jackie Doyle-Price]

I welcome the emphasis on local decision making—we all share that sentiment. The proposed Purfleet development in my constituency will result in 2,500 new homes on the River Thames, 45 minutes from the City of London, and they will sell like hot cakes. That is supported by the Government through the housing infrastructure fund and the development has been gifted the public land on which to build. The community wants it and fully supports the planning application, but National Highways is blocking it. What can we do to ensure a proper joined-up approach from Government so that the homes we need are delivered, because some other Departments are getting in the way?

[Rachel Maclean]

My hon. Friend raises an issue that I do not have any personal knowledge of, and it would be inappropriate for me to comment on a planning application. However, if she will allow me, I will investigate that issue and see what more I can do to unblock it in my capacity as planning Minister. If she is referring to the housing infrastructure fund, I may be able to assist her.

I will finish by raising the issue of the class Q permitted development raised by my right hon. Friend the Member for Witham. The part 12 class Q committed development right permits development by or on behalf of the Crown for up to 12 months in response to an emergency. There are two key considerations. It must be an emergency defined as an event or situation that threatens serious damage to human welfare in a place, the environment of a place or the security of the United Kingdom. To make use of the right, the land must be Crown land. I am aware, as she is, that the Home Office has sought to use the right to provide temporary accommodation for asylum seekers. The House will need to forgive me because this is a live issue and it is subject to live legal proceedings. I therefore cannot comment on it due to fear of prejudicing this issue. My right hon. Friend has rightly brought the views of her constituents to this place, and I and other Ministers have taken note of them.

I would like to finish by thanking my right hon. Friend. It was an enormous pleasure and privilege for me to work with her for an all too brief period in the Home Office. It is a huge pleasure now to be working with her and other colleagues collaboratively to support her ambitions to ensure that Essex remains a fantastic place to live and work, and to be represented by her.

Question put and agreed to.

Housing: Rhondda

Baroness Maclean of Redditch Excerpts

Wednesday 21st June 2023 Westminster Hall

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

It is a great pleasure to serve under your chairmanship, Ms McVey, although I have not had the pleasure of serving in the youth theatre either with you or with the hon. Member for Rhondda (Sir Chris Bryant). That is extremely disappointing, but I am not able to rectify that now. Nevertheless, I very much thank the hon. Member for his speech on behalf of his constituents and the way he has conveyed the sense of pride in place for his constituency, which I am sure we all recognise as Members of Parliament. He has done a great job. I have visited his constituency, and although I have not spent a lot of time there I recognise the picture he paints. I look forward to receiving his report and I will study it. On issues such as housing, which he cares so much about—as do we all—it is important that we work across our United Kingdom. I want to reassure him that we work closely with the Welsh Government through our Interministerial Standing Committee channels.

The hon. Member has raised a wide variety of issues relating to different policy areas and Government Departments. Some of them are the responsibility of the Westminster Government and some sit with the Welsh Government. I know that everyone will have heard his remarks and will have been reminded of the importance of working together. These might be separate policy areas, but ultimately, they come together in someone’s home, and that is how we have to think about it. In this area, we value the strength of our Union and see its importance. Devolution both reinforces and strengthens the powers of his local authority, Rhondda Cynon Taf, supporting it with funding and enabling local authorities to make decisions close to the people they serve.

What are the Westminster Government doing to alleviate and respond to the concerns the hon. Member has raised? The most important thing is the way we support all the devolved nations via the block grant, which for the Welsh Government amounts to £19 billion just for this financial year. That grant is for them to spend on devolved matters such as housing, schools and transport. We also provide additional infrastructure investment, not only to deliver the homes we need but to nurture strong communities throughout the UK. It is important that we work closely to level up growth, opportunity and pride; that is at the heart of this Government’s vision and a central mission for all of us. The people of the United Kingdom expect us to come together. This is a great opportunity to see how we are doing that and to draw on the combined strengths of the United Kingdom.

Let me focus on the economic context, which is at the heart of what the hon. Gentleman spoke about. He talked about the financial pressures on all our citizens, as well as mortgages, rents and the cost of living; all of those interact. The UK Government are taking determined steps to beat inflation. Ultimately, inflation is the enemy we must all defeat because it has a direct impact on people’s ability to pay their mortgages. The hon. Gentleman highlighted the high rate of home ownership in his constituency, and of course the rate of home ownership is affected by people’s ability to meet their mortgage payments, or their rental costs if they are in the private rented sector. Help with mortgages is available for certain people via the support for mortgage interest scheme, and the Chancellor is taking significant action in that space by talking to mortgage lenders. I encourage people to talk to their mortgage lenders, which have been instructed to deal with their customers fairly, especially at this time of severe economic stress.

It is also important to recognise the support the Government have put into helping people across the UK, including those on low incomes or no income, whether or not they are homeowners. There is a high number of people on lower incomes in the hon. Gentleman’s constituency, and for those most in need we have put in place a generous UK-wide support package, which includes up to £900 in cost of living payments for households on eligible means-tested benefits this year, a disability cost of living payment of £150 in the summer, and an additional £300 cost of living payment to pensioners to help with the coming winter. To protect the most vulnerable, we have uprated working age and disability benefits by 10.1% from April. That equates to an additional £1 billion of funding, including the Barnett impact, to help households with the costs of their essentials. In England, that funding goes towards the household support fund. It will be up to the Welsh Government to decide how to use the extra Barnett funding.

Energy costs are an additional pressure on household budgets. The hon. Gentleman rightly raised the issue of some homes being more difficult to insulate, owing to the way in which they were constructed, and their not being up to certain current standards. We want his constituents to be warm and dry, regardless of the age of the property they live in, and the UK Government have taken significant steps to help people with their energy bills.

As the Chancellor announced in the spring statement, the Government are maintaining the energy price guarantee at £2,500 until the end of June. That will save households an additional £160 and bring Government support with energy bills since October 2022—so including the most extreme periods of the winter, when people will have needed to have their heating on—to £1,500 for a typical household. Those measures ensured that households across the UK were supported through the spring, and certainly while retail energy costs remained high. Hopefully, those costs are starting to turn downward, and we hope that continues.

The hon. Gentleman also raised a number of issues about the private rented sector—the commercial rented sector—notwithstanding the fact that his constituency contains a relatively high proportion of homeowners. The private rented sector plays a vital role in any housing market across the UK, and I recognise the fact that the Welsh Government have their own schemes. The hon. Gentleman touched on some of those, and they are obviously for the Welsh Government to administer. He talked about the impact of the empty homes grant. There is also Help to Buy in Wales, and the leasing scheme.

There are a number of ways in which any Government can help citizens, and we are always happy to talk to our counterparts in Wales. I believe I have a meeting quite soon with my counterpart in the Welsh Administration, and our officials meet regularly to discuss how the schemes work and what is the best way to get help to people who really need it.

The hon. Gentleman talked about section 21 no-fault evictions. He will be aware, as will the House, that we intend to fulfil our manifesto commitment to ban section 21 evictions. We have introduced the Renters (Reform) Bill to Parliament for its First Reading, and we are looking forward to the Bill progressing so we can begin the process of enacting those provisions. My understanding is that we are working closely with the Welsh Government so that they may align their measures, should they choose to do so, with the measures we are taking through English legislation. We want and expect the provisions in the Renters (Reform) Bill to cover Wales as well as England.

The hon. Gentleman highlighted the impact of section 21 evictions on his constituents, which he has seen through his casework and surgeries. That is why we want to bring the Bill forward. We know that one of the most significant anxieties that private renters have is the fear of a section 21 eviction—the retaliatory eviction that we hear about so often. When tenants have to report a significant problem or fault with their property, whether it is damp or mould, a broken boiler or something else that makes the property dangerous, they fear that instead of fixing it, the landlord will simply evict them and make them homeless. That adds to the pressure on homelessness services and temporary accommodation, which, as the hon. Gentleman brought to life, exists in Wales as well. That is why we are taking action to remove that section 21 power.

At the same time, we need to be completely fair to landlords who need to regain their property if tenants are abusing it. Just as there are good and bad landlords, there are good and bad tenants, if I can put it that way. If a landlord is renting their property in good faith to a tenant, and that tenant has damaged it in some way or is engaging in antisocial behaviour, it is absolutely right that the landlord can regain their property to restore that confidence that it will not be damaged. They should also be able to move back into their property or sell it on the open market if they wish to do so.

The hon. Gentleman also talked about social housing. We recognise that it is a vital addition to any housing market, which is why we in England are investing considerable sums of money to ensure that there is social housing across the nation for the people who need it. We have delivered our £11.5 billion affordable homes programme in England, and I encourage the Welsh Government to follow in our footsteps and deliver more social housing to meet the need of people in the hon. Gentleman’s constituency and across Wales. I thank the hon. Gentleman and I look forward to reading his report.

Question put and agreed to.