Wednesday 20th July 2011

(12 years, 9 months ago)

Lords Chamber
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Baroness Hanham Portrait The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Hanham)
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My Lords, I beg to move that the House do now resolve itself into a Committee on the Bill.

Lord Bassam of Brighton Portrait Lord Bassam of Brighton
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My Lords, it is now 3.09 pm, the House is arranged to close at 7 pm today, it being a Thursday—

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Baroness Gardner of Parkes Portrait Baroness Gardner of Parkes
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We had every intention of debating it and, as noble Lords will know, I complained about having to wait day after day in the hope of getting to this amendment. Yesterday it was quite clear that we were running out of time. This Bill is terribly important and it is important that we get to Report stage. It was because of the degree of importance that we decided to take action and seek an assurance from the Minister that we would be guaranteed sufficient time to debate it on Report. It will be debated then.

Baroness Hanham Portrait Baroness Hanham
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My Lords, just about everything that could be said has been said on this matter. The noble Lord, Lord Berkeley, asked about gas extraction. I will have a letter written to him before the next stage so that he knows the situation.

Lord Berkeley Portrait Lord Berkeley
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I am grateful to the Minister. I beg leave to withdraw the amendment.

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Lord McKenzie of Luton Portrait Lord McKenzie of Luton
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We had a canter round this yesterday—at least it seems like it was yesterday. We are very supportive of these amendments.

Baroness Hanham Portrait Baroness Hanham
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My Lords, we did indeed discuss this yesterday and we had a bit of discussion on the subjective nature of design decisions. I think we all agree that design is an enormously important part of planning, as indeed it is an important part of developing and ensuring how a community looks and what an area is like.

I have great admiration for the noble Lord, Lord Best, but I think this amendment is unnecessary. As he has already pointed out, planning authorities get independent expert advice from the Design Council, and local planning authorities are already able and indeed encouraged to submit applications to design review panels and to heed their impartial, expert advice. I am not sure that putting any more legislation forward on this will do anything. However, we will undertake to give encouragement to local authorities to make sure that they understand that design review panels are a good thing. So there really is no reason for this. We need to keep it out of legislation. I understand the purpose behind it but there are already proper ways of dealing with this. I hope that the noble Lord will feel able to withdraw his amendment.

Lord Best Portrait Lord Best
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My Lords, I take some comfort from the Minister’s undertaking to ensure that strong encouragement is given to local planning authorities to take on board the value of design review panels. For the moment, I beg leave to withdraw the amendment.

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Baroness Hanham Portrait Baroness Hanham
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My Lords, the noble Lord has introduced an interesting amendment which rustles between two responsibilities. If this were a very big application, such as those in the first part of the amendment—sites, ports, airfields—that would not be the responsibility of local authorities, that would be for the new planning inspectorates or commission. On the other applications, I think that that would happen already—it is all part and parcel of our planning considerations—and while we understand the concern about balancing the transport system in favour of sustainable transport, which the noble Lord mentioned, he should understand that is only part of what is included.

Many of these areas are already taken into account—I am trying to go back to my own limited experience from years ago—and most are things that the planning committee would be interested in, while the bigger applications will be dealt with by other means, although local authorities will, of course, be able to comment on them as they go along. I hope the noble Lord will withdraw his amendment.

Lord Berkeley Portrait Lord Berkeley
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I am very grateful to the Minister for that response. She is absolutely right that on big projects, these things should be taken into account in the whole, but I still have a concern about something falling between two stools, if that is the right analogy. Perhaps I can have a discussion with her between now and Report, or read Hansard. In the mean time, I beg leave to withdraw the amendment.

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Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark
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My Lords, first, I thank the noble Earl, Lord Attlee, for his kind words from the Government Front Bench. They are much appreciated. The Opposition fully support the amendment in the name of my noble friend Lord Whitty. The proposal is strategic and practical. It sets up a context for the debate and other sections of the Bill. It provides both the Government and the local authority with valuable information for assisting the planning for housing need in the future. I hope that the noble Baroness will be able to accept my noble friend’s amendment. If not, I hope that she will feel able to take it away and look at it over summer, maybe in the terms referred to by the noble Lord, Lord Shutt of Greetland, in the previous amendment.

Baroness Hanham Portrait Baroness Hanham
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My Lords, welcome to the noble Lord, Lord Kennedy. He was sharp, swift and brief—brilliant. We will have more of the noble Lord, if we might. On the amendment of the noble Lord, Lord Whitty, supported by the noble Lord, Lord Shipley, I am once again going to say that we do not need it. While I admire the verve with which the noble Lord, Lord Whitty, has presented his case, there are already statutory provisions.

Local authorities are already under statutory provisions to provide plans for the housing needs of their population and to discharge their housing functions in accordance with their strategic priories as detailed in their housing strategies. Section 13 of the Planning and Compulsory Purchase Act 2004 requires local planning authorities to keep under review matters that are likely to affect the development of their area, including size, composition and distribution of the housing for their population. In addition, planning policy statement 3 and the associated guidance on strategic housing assessment make clear that local authority plans should be informed by a robust evidence base of housing need and demand in its area for market and affordable housing.

Section 87 of the Local Government Act 2003 provides a power for the Secretary of State to require all local housing authorities to have a housing strategy, so the provision is there already. It is well understood that local authorities should be more than clear about the requirements in their area in this regard. The current guidance on local housing strategies in England stresses that the local housing strategy is the local housing authority’s vision for housing in its area. It should set out objectives, targets and policies on how the authority intends to manage and deliver its strategic housing role, and provides an overarching framework against which the authority considers and formulates other policies on more specific housing issues. That is the strength of my argument in saying that we do not need the amendment. However, I understand the concern that lies behind it and behind the comments of the noble Lord, Lord Shipley. We are dramatically underhoused.

The noble Lord, Lord Shipley, has drawn attention to the limited housebuilding that has occurred over a number of years. Last year we had one of the lowest housebuilding programmes since 1923. We are trying to boost housebuilding. We have introduced the new homes bonus and are trying to encourage building through various means such as shared ownership and buy now pay later schemes. There are all sorts of plans to increase housing but you cannot do it overnight; it takes time to develop. However, there is no misunderstanding on the part of this Government that housing and a housing strategy are needed. With the assurance that this amendment is not necessary for the reasons I have given, I hope that the noble Lord will withdraw it.

Lord Whitty Portrait Lord Whitty
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My Lords, I thank the noble Lord, Lord Shipley, and my noble friend Lord Kennedy for their support for the amendment. I also thank the Minister for at least appreciating what lies behind the amendment. I understand that bits and pieces of the requirement for a strategy are in various bits of existing legislation. However, the most coherent expression is to be found in the planning guidance. Indeed, I have sought to gather some of the themes of the planning guidance in one place and to give it statutory backing. The noble Baroness says that the amendment is not necessary. I may return to it but for the moment I accept that. As she rightly says, this is a long-term problem. It has arisen over a long time and will take a long time to resolve. Those of us who are veterans of the housing debate know that I was not particularly supportive of various aspects of the previous Government’s policy in this regard. I have yet to be convinced that the new Government’s policy is likely to deliver more housing, particularly affordable housing for the kind of people I have talked about.

There is a need for a strategic framework here. The Localism Bill, in so far as it redefines the decisions that are to be taken locally, is probably the right place for it. I will consider carefully what the noble Baroness has said. However, at some point in this whole housing policy debate and in the Localism Bill we will have to re-emphasise the fact that the national drivers—in so far as they worked—have largely gone, and that the real driving force in solving what is admittedly a long-term housing problem now rests with our local authorities. If I have at least got that message across and the Government follow it through, I will have achieved something. I have taken 20 minutes over this amendment, for which I apologise. I may return to it at Report, but at this stage I beg leave to withdraw the amendment.

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Baroness Gardner of Parkes Portrait Baroness Gardner of Parkes
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I too have heard these speeches although I have not been present in the Chamber. I wanted to comment on Amendment 173A, tabled by the noble Lord, Lord Best, relating to the suitability of accommodation. It would be terrific if we could do it. However, going back 40 years, when I had housing responsibility, we found that the only thing we could offer homeless people then was bed and breakfast. We ran out of central London bed-and-breakfast accommodation and people had to travel quite a lot further out. So although “suitable accommodation” is the ideal, I do not know how it can ever be realistically achieved. That is the worry about what the future might be for this.

Baroness Hanham Portrait Baroness Hanham
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My Lords, this is clearly a debate that needs a lot more time than we have got tonight. I have listened to some very moving and knowledgeable speeches on the amendments and I understand fully the points that people have been making. The trouble is the time constraints—the way these have been grouped in this large bunch makes it almost impossible for me to deal with all the many points that have been raised in the manner in which I would have wished to do so. As a result, I will probably be quite general in my comments, but if there are issues which I think need further application, and I have not dealt with them properly, I will look at those in Hansard and will try to make sure there is a response. I think my response will be dry—it is not meant to be and I do understand all the points that have been made. I know that my colleagues in the House of Commons have made some quite sympathetic statements and I am not going to undermine any of those. However, in the interests of time, at this stage, I am going to respond to the amendments briefly. I ask people to forgive me for not going into great detail on what they have said, since it is inevitable that I shall not be able to do so.

I shall start quickly with Amendments 171D, 172A, 173ZE, 173ZF, 171B, 171C and 173. We all understand that the people who face homelessness need suitable accommodation, but they do not always require social housing. Therefore, local authorities should have the flexibility to take case-by-case decisions. The changes in these amendments would undermine the intention of the proposed measures. This would be unfair to households on social housing waiting lists, who would have to wait longer to have their housing needs met. This is a balance that housing authorities have to make all the time. It would be unfair to the taxpayer who would have to fund expensive temporary accommodation that is often completely unsatisfactory, as noble Lords know. By housing people in social housing who might manage in the private rented sector, we would stop somebody who needs social housing, probably on a lifetime tenancy, from getting it.

Our reforms strike a sensible balance between the additional safeguards for homeless households offered in the private rented sector accommodation, ending the main duty, and fairness to other households in need. It is not practical to expect private landlords to be prepared to offer tenancies for an initial fixed term of more than 12 months to tenants they do not know, although it will be possible and very probable that local authorities will want and need to negotiate longer tenancies where they can, if 12 months does not prove to be sufficient time.

I turn to Amendments 172, 173A, 173AA, 171D and 172A, and apologise for not attributing them to the relevant noble Lords. Existing safeguards will apply before the duty can be brought to an end with a private rented sector offer. The authority must be satisfied that the accommodation is suitable for the applicant and his or her household. In considering suitability, authorities must by law consider whether a specific property is suitable for the applicant and their household's individual needs. This includes considering whether the accommodation is affordable for the applicant, as well as its size, condition, accessibility and location. A lot has to be taken into account before the offer is made. On affordability, the local authority must by law consider the applicant's financial resources and the total cost of accommodation in determining whether the accommodation is suitable.

Statutory guidance, to which local authorities must have regard by law, sets out the factors on location and standards that should be taken into account. It also states that housing authorities should consider that a property would not be affordable if a claimant's residual income after rent and associated costs would be less than the level of means-tested benefit. Tying down criteria in legislation would restrict the ability of the local authority to make decisions on what is reasonable affordability, balanced against the availability of properties.

I understand the concerns about the issue of physical standards. I have laid a Statement in the House Library confirming that we are prepared to use existing order-making powers and setting out the factors that could be included in such an order. In doing so, we will work closely with organisations such as Shelter and Crisis to make sure that that is all workable.

Amendments 173ZZD, 173ZBA, 173ZA, 173ZB, 173ZD 173ZC and 173AB would place specific requirements on local authorities to provide advice and assistance and to collect data. This is too bureaucratic and I will resist the amendments for that reason.

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Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark
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My Lords, I rise to speak briefly in support of Amendment 173B moved by the noble Lord, Lord Best, and on other welcome amendments in this group.

Amendment 173B adds an important protection to exempt vulnerable and older people from flexible tenancies. Amendment 173CA in the names of the noble Baroness, Lady Doocey, and the noble Lord, Lord Shipley, adds an additional protection to extend those terms from two to seven years. Amendment 173CB in the name of the noble Baroness, Lady Doocey, seeks to have protection regarding previous tenancy arrangements. In his Amendment 173D the noble Lord, Lord Best, also seeks to add a protection for the review decision so that it proceeds,

“on the basis of a presumption that a new flexible tenancy for a term at least equivalent to the current or previous”,

terms of the tenancy. The noble Lord, Lord Rix, highlighted in his amendment the exemptions for vulnerable or older people from flexible tenancies.

As I said in my previous remarks, the Opposition are very concerned about this Bill, and particularly this housing section. We very much hope that the Government are listening to what has been said in the House today. I hope that the Minister can either accept these amendments or give the House an assurance that she is going to take them away, reflect on them, and bring these matters back at Report.

Baroness Hanham Portrait Baroness Hanham
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My Lords, before I respond to the debate, I move the government amendments that are in my name—

Baroness Hayman Portrait The Lord Speaker (Baroness Hayman)
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If the noble Baroness forgives me, you can only move amendments at the point at which they come in the Marshalled List. You can speak to them with the greatest of pleasure.

Baroness Hanham Portrait Baroness Hanham
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My Lords, I shall learn after another few years if I have not learnt before. My apologies to the House.

I will speak to the amendments in my name. Government Amendments 174N and 174P are small amendments which remove requirements on landlords to register a tenancy with the Land Registry and execute the tenancy by deed. They reflect concerns from the National Housing Federation that requirements to register tenancies with a term of more than seven years and execute by deed those with a term of more than three years would discourage landlords from granting longer-term tenancies. There are, in these circumstances, no practical advantages to a social tenant from either the tenancy being registered or executed by deed since they cannot deal in their tenancy—that is, tenancies in social housing may not be bought and sold. These amendments simply put fixed-term social tenants on the same footing as secure or assured social tenants in this regard.

I turn to government Amendments 173CAA, 173CC, 173CD, 174B, 174C, 174D, 174E, 174F, 174G, 174H, 174J, 174K, 174L and 174M. These amendments make small corrections to the existing text of the Bill and provide additional clarification where parliamentary counsel considers this helpful. They make no change to our policy intention. Those are the government amendments; I now turn to the debate on this part of the Bill which, as I expected, was again half understanding but also slightly quarrelsome. I will again seek to answer the amendments as well as I can.

The amendment spoken to by the noble Baroness, Lady Doocey, would be an unhelpful restriction on local authority landlords’ flexibility to use their social housing stock in a way which best meets the needs of individual households and their local area. This question was about the two-year minimum-term offers. I need to explain that we believe that there is some advantage in seriously exceptional circumstances—and I stress these will be very exceptional circumstances—for landlords to be able to provide for a short period of housing when it is felt it is needed and proper protection.

We have consulted landlords on this and they have made it clear that the great majority would only issue two-year tenancies under exceptional circumstances. As we expect and mean that to be exceptional, as I will say later on, we will look to see what we need to do to underline that. We continue to affirm that we expect longer tenancies of five or 10 years, and of course lifetime tenancies, to be the norm. Those are particularly for vulnerable households or those with children.

Of course the vulnerable will be protected. We intend to require landlords in their tenancy policies to take specific account of the needs of those who are vulnerable through the provision of tenancies that provide a reasonable degree of stability. Two-year tenancies might be appropriate in particular and probably quite exceptional circumstances—for example, helping young people to enter employment; for a family who need a larger home for the short term; or perhaps for someone who has had a serious accident, cannot manage in their own home for a short period and needs access to accessible housing for a short term before they return home. As regards larger housing requirements, people’s children often leave home and therefore the tenancy may not be needed any more. We know that some local authorities are considering how fixed-term tenancies could help them to develop support packages for recovering drug addicts, for example.

I want to underline firmly that we are looking for these provisions to be applied in exceptional circumstances and, in the light of today’s debate, I will reflect on how we can ensure that social landlords grant only tenancies with a term of less than five years in exceptional circumstances. We probably will not be able to put that in the Bill because it may not make sense; but there will be strong guidance about what we mean by exceptional two-year tenancies. I will discuss this matter with officials and consider the best way of dealing with it because I want to make it absolutely clear so that people are not concerned any more. I know that they have been.

Amendments 173B, 174A and 174 propose new clauses that would create categories of individuals and families who could not be offered a flexible tenancy. They would always have to receive a lifetime tenancy. We recognise that the needs of older people and the needs of those with a disability, for example, are likely to remain broadly constant over the long term. Lifetime or long-term tenancies are, of course, likely to be appropriate for these households in the vast majority of cases. More importantly, landlords recognise that too. In only the most exceptional cases will two-year tenancies be granted, but they will usually be for significantly longer or a lifetime for those with ongoing needs. As a safeguard, our draft direction to the social housing regulator sets out our intention to require landlords in their tenancy policies to take specific account of the needs of the vulnerable. Indeed, we have strengthened our proposed terms for the tenure standard, having listened carefully to the views expressed. That is a better way forward than seeking to prescribe centrally categories of people who should always be granted a lifetime tenancy.

The new clauses proposed by Amendments 173B and 174A include a new ground for possession to be available for secure tenancies and provided to some new tenants if a property is more extensive than is reasonably required by the tenant and if the landlord can supply a suitable alternative. I support the intention behind these amendments. We need to do more to make best use of social homes, but we do not believe that these amendments are the right way forward. Flexible tenancies will be a far better means of tackling overcrowding and underoccupancy. They offer a straightforward deal between landlords and tenants, particularly on underoccupancy. A landlord could, for example, offer a family a large family home on a 15-year tenancy on the clear understanding that they would be required to move to a smaller social property at the end of that term when their children had left home and, therefore, they had more space than was necessary.

Amendment 173CB seeks to put into legislation for some existing tenants the guarantee of continued security on moving home. We by contrast are putting in place through regulation a guarantee of continued security for all existing tenants who move to a social rented home. I hope that that answers the concerns of the noble Baroness, Lady Doocey. We are upholding our promise that existing tenants’ rights would be protected and respected, and that includes guaranteeing the same level of security to existing tenants who move to another social rented property. We will do that through a direction to the housing regulator on the new tenancy standard, which we have now published for consultation. All social landlords will be required to meet the tenancy standard, which will guarantee continued security to existing secure and assured tenancy, unlike this amendment.

We do not believe Amendments 173D and 173E are necessary. A review of the original decision must be carried out by a more senior officer not previously involved to ensure that the decision was fair and in line with the landlord’s published tenancy policy. Should the reviewing officer conclude that the decision is not in line with the landlord’s policy then the landlord will have to reconsider. If he does not then a tenant can approach a local councillor, MP or tenancy panel for assistance and have their case referred to the Housing Ombudsman. The Bill makes clear that where a landlord seeks possession of a tenant’s property, despite a review concluding that they were not acting in line with their own policy, then of course the court will refuse that application. The inclusion of a reference to comply with human rights is therefore not necessary. Landlords will need to ensure their decisions on tenancies are proportionate in human rights terms. Recent judgments make clear that a tenant of a local authority will be able to raise a proportionality defence in possession proceedings.

Amendment 173CE would widen the scope of the review available to a tenant or prospective tenant on the length of a tenancy being offered by a local authority. As the Bill stands, the review gives the individual an opportunity to request a review if they consider that the length of the tenancy they are being offered is not in line with the landlord’s published tenancy policy. That policy must set out the kinds and length of tenancies the landlord will grant in different circumstances. If a decision by the landlord appears to be out of line with the policy then it is absolutely right that a prospective tenant should be able to challenge it. If a prospective tenant has concerns that the tenancy policy is not fair, they are free to pursue the issue through the landlord complaints procedure.

Amendment 173CF changes the wording of the Bill to request a review on the length of tenancy. We are covered with that; as it stands, a person seeking a review could argue that their tenancy should be for life.

I will respond to Amendment 174AA although I am not sure whether it was spoken to. While I agree it makes sense that when a tenancy will be for life, a tenant should be compensated when the tenancy is for a fixed term, a right to compensation makes less sense. Perhaps we did not discuss compensation but I will finish nevertheless. This is about flexibility for the landlord, making sure they can make best use of their stock. Forcing a landlord to pay for improvements made by a tenant who may shortly be moving on is just not practical.

I have spoken in some detail—perhaps more than anybody would have wished— but I hope that having done so it will set the base for future debate. I ask that, with those responses, noble Lords will not press their amendments.

Lord Best Portrait Lord Best
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My Lords, I am very grateful indeed to the Minister for that very long and valuable exposition of the many ways in which things may turn out for the best at the end of this process. I welcome her reassurance that lifelong tenancies will still be very much the bread and butter of what social housing is all about; not just for those with extremely important ongoing needs, such as older people and those with disabilities, but for families with children, for whom a tenancy for life—a proper family home—is so important. Where social landlords do use flexible tenancies, she makes it clear that these will seldom be for less than the full five years. In any case, they will be relatively exceptional.

The noble Baroness mentioned the guarantee that those who move or transfer their home will take with them the same security of tenure. That is very important. She made a lot of reassurances that we will be able to read at our leisure during the summer, which I hope we will find satisfactory. The Minister explained that a lot of those ministerial intents will be put into practice through the regulator having the power to issue firm requirements on social landlords in relation to tenure. That is an extension of the way in which the regulator works at present. None of the three noble Lords whose names were above mine who were to oppose the Question that Clause 133 should stand part of the Bill rose to do so—I do not suggest that they do now. The noble Baroness explains the value of the regulator having that role. She gives me a dilemma because, as a matter of principle, many people are opposed to the Secretary of State giving more and more instructions to the regulator and are aware of the dangers that that has of taking away the independence of the social housing landlords. Perhaps we could debate those matters when some of us oppose Clause 134 standing part of the Bill. In the mean time, with all those reassurances from the noble Baroness, I beg leave to withdraw the amendment.

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Lord Best Portrait Lord Best
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My Lords, I apologise for speaking again, but I shall do so only briefly. Amendment 173C is supported by the Local Government Association and the National Housing Federation. Clause 131 places a duty on every local authority to draw up a tenancy strategy for its area. The social landlords, the registered providers of social housing, must then have regard to that tenancy strategy in formulating their tenancy policies. Neither local authorities nor housing associations are in favour of that idea. Pursuing a theme affecting the whole Bill, I oppose the centralist tendency at work here in dictating the process and instructing local authorities on how to act—in this case, making them produce a new strategy.

Local authorities do not want to be told what to do in their procedures. Equally, housing associations are not keen on that prescriptive approach when they know that better results can be achieved by forging locally tailored partnerships. Bodies such as the Chartered Institute of Housing have strongly encouraged local authorities to reduce tenant strategies for some time, and those voluntary arrangements are working well. Therefore, the replacement clause in my amendment is intended to get local authorities and social housing providers to work together, with councils taking the strategic role in identifying housing requirements and the tenancy policies that flow from understanding those data. Such an approach goes with the grain of localism and recognises the very different housing strategies already been brought together by a number of local authorities, from the Derbyshire Dales to the London Borough of Hackney, to create mutually agreed approaches with their partners. This is how it should be. I beg to move.

Baroness Hanham Portrait Baroness Hanham
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My Lords, I have a swift answer for the noble Lord. A tenancy strategy will not be onerous. There is no requirement for it to be in a specific format or of a particular length or particular content. Many local authorities have indicated that they want to build on the existing policies and strategies, and Clause 131 rightly requires the authority to consult housing associations before adopting strategy. I therefore ask the noble Lord to withdraw his amendment.

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Moved by
173CAA: Clause 135, page 127, line 30, leave out “secure” and insert “flexible”
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Moved by
173CC: Clause 135, page 127, line 39, leave out “(“the original flexible tenancy”)”
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Moved by
174B: Clause 136, page 131, line 23, leave out subsection (6)
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Moved by
174N: Before Clause 137, insert the following new Clause—
“Creation of tenancies of social housing
(1) In section 52 of the Law of Property Act 1925 (requirement that conveyances of land and interests in land be made by deed) in subsection (2) (exceptions) after paragraph (d) insert—
“(da) flexible tenancies;(db) assured tenancies of dwelling-houses in England that are granted by private registered providers of social housing and are not long tenancies or shared ownership leases;”.(2) After that subsection insert—
“(3) In this section—
“assured tenancy” has the same meaning as in Part 1 of the Housing Act 1988;
“dwelling-house” has the same meaning as in Part 1 of the Housing Act 1988;
“flexible tenancy” has the meaning given by section 107A of the Housing Act 1985;
“long tenancy” means a tenancy granted for a term certain of more than 21 years, whether or not it is (or may become) terminable before the end of that term by notice given by the tenant or by re-entry or forfeiture;
“shared ownership lease” means a lease of a dwelling-house—
(a) granted on payment of a premium calculated by reference to a percentage of the value of the dwelling-house or of the cost of providing it, or (b) under which the lessee (or the lessee’s personal representatives) will or may be entitled to a sum calculated by reference, directly or indirectly, to the value of the dwelling-house.””
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Baroness Hanham Portrait Baroness Hanham
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My Lords, before responding, I wonder whether I may speak to the amendments in this group that stand in my name—Amendments 178ZA, 178ZB, 178ZC and 178ZD. Amendments 178ZA and 178ZB are minor and technical, and tidy up Clause 139.

Amendment 178ZC ensures that there will be no statutory succession in the case of shared ownership properties, as this could conflict with the rights of a beneficiary in a deceased shared owner's will. Amendment 178ZD ensures that where there is no eligible successor but someone inherits the balance of a fixed-term tenancy as part of the deceased tenant's estate, the landlord can recover the property. Amendment 178ZD helpfully deals with an issue raised by the Opposition in the other place. When someone who is not a spouse or partner succeeds to a local authority property which is larger than they reasonably need, the landlord can move them to a more suitably sized property between six and 12 months after the death of the original tenant.

The amendment deals with cases where the successor tenant withholds news of the death of the tenant from the landlord until after the recovery window has closed, thereby preventing the landlord reclaiming the property. It does this by allowing a court to decide whether the window is deemed to have opened six months after the original tenant died or six months after the landlord became aware of the death. I hope that is reasonably clear.

I can reply to the amendments quite quickly. Our proposals guarantee one succession to a spouse or partner and importantly also allow landlords a freedom to grant more successions, as they see fit; for example, allowing a succession to someone as the noble Lord, Lord Rix, has said, who has given up their own home to move in and care for the tenant. We believe that the proposals are clear, simple and fair: one guaranteed succession to a spouse or partner and anyone else if the tenancy agreement says so. That will allow landlords to ensure properties go to those in actual need and Amendments 175 to 178, tabled by the noble Lord, Lord Rix, would reintroduce a prescriptive approach which would prevent landlords considering individual circumstances in reaching sensible decisions. Once again, social landlords are social landlords and are meant to be considering the best interests of those who live in their properties. With that explanation, I hope that the noble Lord, Lord Rix, will be willing to withdraw his amendment.

Lord Rix Portrait Lord Rix
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My Lords, I have no desire to delay your Lordships’ holidays any longer, so I beg leave to withdraw my amendment.

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Moved by
178ZA: Clause 139, page 134, line 44, leave out from beginning to end of line 5 on page 135
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Moved by
178ZC: Clause 140, page 136, line 48, at end insert—
“(7) This section does not apply to a fixed term assured tenancy that is a lease of a dwelling-house—
(a) granted on payment of a premium calculated by reference to a percentage of the value of the dwelling-house or of the cost of providing it, or(b) under which the lessee (or the lessee’s personal representatives) will or may be entitled to a sum calculated by reference, directly or indirectly, to the value of the dwelling-house.””
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Moved by
178ZD: After Clause 140, insert the following new Clause—
“Secure and assured tenancies: recovery of possession after tenant’s death
(1) In section 90 of the Housing Act 1985 (devolution of fixed term secure tenancy) after subsection (4) insert—
“(5) The following provisions apply where a tenancy that was a secure tenancy of a dwelling-house in England—
(a) has been vested or otherwise disposed of in the course of the administration of the secure tenant’s estate, and(b) has ceased to be a secure tenancy by virtue of this section.(6) Subject as follows, the landlord may apply to the court for an order for possession of the dwelling-house let under the tenancy.
(7) The court may not entertain proceedings for an order for possession under this section unless—
(a) the landlord has served notice in writing on the tenant—(i) stating that the landlord requires possession of the dwelling-house, and(ii) specifying a date after which proceedings for an order for possession may be begun, and(b) that date has passed without the tenant giving up possession of the dwelling-house.(8) The date mentioned in subsection (7)(a)(ii) must fall after the end of the period of four weeks beginning with the date on which the notice is served on the tenant.
(9) On an application to the court for an order for possession under this section, the court must make such an order if it is satisfied that subsection (5) applies to the tenancy.
(10) The tenancy ends when the order is executed.”
(2) In Part 3 of Schedule 2 to that Act (grounds on which court may order possession of dwelling-house let on secure tenancy if reasonable and if alternative accommodation is available) after Ground 15 insert—
“Ground 15AThe dwelling-house is in England, the accommodation afforded by it is more extensive than is reasonably required by the tenant and—(a) the tenancy vested in the tenant by virtue of section 89 (succession to periodic tenancy) or 90 (devolution of term certain) in a case where the tenant was not the previous tenant’s spouse or civil partner, and (b) notice of the proceedings for possession was served under section 83 (or, where no such notice was served, the proceedings for possession were begun) more than six months but less than twelve months after the relevant date.For this purpose “the relevant date” is—(a) the date of the previous tenant’s death, or(b) if the court so directs, the date on which, in the opinion of the court, the landlord (or, in the case of joint landlords, any one of them) became aware of the previous tenant’s death.The matters to be taken into account by the court in determining whether it is reasonable to make an order on this ground include—(a) the age of the tenant,(b) the period (if any) during which the tenant has occupied the dwelling-house as the tenant’s only or principal home, and(c) any financial or other support given by the tenant to the previous tenant.”(3) In section 7 of the Housing Act 1988 (orders for possession of assured tenancies) after subsection (6) insert—
“(6A) In the case of a dwelling-house in England, subsection (6)(a) has effect as if it also referred to Ground 7 in Part 1 of Schedule 2 to this Act.”
(4) In Part 1 of Schedule 2 to that Act (grounds for possession of dwelling-houses let on assured tenancies: grounds on which court must order possession) in Ground 7 (devolution of tenancy under will or intestacy)—
(a) in the first unnumbered paragraph, after “tenancy)” insert “, or a fixed term tenancy of a dwelling-house in England,”,(b) in the second unnumbered paragraph—(i) omit “periodic”, and(ii) after “period” insert “or length of term”, and(c) after that paragraph insert—“This ground does not apply to a fixed term tenancy that is a lease of a dwelling-house—(a) granted on payment of a premium calculated by reference to a percentage of the value of the dwelling-house or of the cost of providing it, or(b) under which the lessee (or the lessee’s personal representatives) will or may be entitled to a sum calculated by reference, directly or indirectly, to the value of the dwelling-house.””
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Moved by
181B: After Clause 161, insert the following new Clause—
“Tenants’ depositsTenancy deposit schemes
(1) The Housing Act 2004 is amended as follows.
(2) In section 213 (requirements relating to tenancy deposits)—
(a) in subsection (3) (landlord’s requirement to comply with initial requirements within 14 days of receipt of deposit) for “14” substitute “30”, and(b) in subsection (6)(b) (landlord’s requirement to give tenant information within 14 days of receipt of deposit) for “14” substitute “30”.(3) Section 214 (proceedings relating to tenancy deposits) is amended as follows.
(4) In subsection (1) (grounds for an application to a county court) for paragraph (a) substitute—
“(a) that section 213(3) or (6) has not been complied with in relation to the deposit, or”.(5) After subsection (1) insert—
“(1A) Subsection (1) also applies in a case where the tenancy has ended, and in such a case the reference in subsection (1) to the tenant is to a person who was a tenant under the tenancy.”
(6) In subsection (2) (conditions for a remedy)—
(a) in the opening words—(i) for “Subsections (3) and (4)” substitute “Subsection (3) (subject to subsection (3A)) and subsection (4)”,(ii) omit “such”, and(iii) after “application” insert “under subsection (1)”, and(b) for paragraph (a) substitute—“(a) is satisfied that section 213(3) or (6) has not been complied with in relation to the deposit, or”.(7) After subsection (3) insert—
“(3A) Subsection (3) does not apply in a case where the tenancy has ended at the time of the application under subsection (1), and in such a case the court may order the person who appears to the court to be holding the deposit to repay all or part of it to the applicant within the period of 14 days beginning with the date of the making of the order.”
(8) In subsection (4) (amount of penalty payment)—
(a) omit “also”, and(b) for “equal to” substitute “not less than the amount of the deposit and not more than”.(9) Section 215 (sanctions for non-compliance) is amended as follows.
(10) In subsection (1) (prevention of service of notice under section 21 of the Housing Act 1988)—
(a) at the beginning insert “Subject to subsection (2A),”, and(b) for paragraph (b) substitute—“(b) section 213(3) has not been complied with in relation to the deposit.”(11) In subsection (2) (prevention of service of notice under section 21 of the Housing Act 1988) at the beginning insert “Subject to subsection (2A),”.
(12) After subsection (2) insert—
“(2A) Subsections (1) and (2) do not apply in a case where—
(a) the deposit has been returned to the tenant in full or with such deductions as are agreed between the landlord and tenant, or(b) an application to a county court has been made under section 214(1) and has been determined by the court, withdrawn or settled by agreement between the parties.”(13) In Schedule 10 (provisions relating to tenancy deposit schemes) in paragraph 5A(9)(b) (modification of section 213(3)) for “14” substitute “30”.”
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Moved by
182LA: Clause 169, page 160, line 45, leave out “, as from time to time amended,”
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Moved by
182LB: Schedule 19, page 379, line 12, at end insert—
“Greater London Authority Act 1999 (c.29)35A The Greater London Authority Act 1999 is amended as follows.
35B (1) Section 38 (delegation) is amended as follows.
(2) In subsection (2) (persons to whom functions exercisable by the Mayor may be delegated) before paragraph (e) insert—
“(db) the Homes and Communities Agency;”. (3) In subsection (3) (cases where delegation to body requires its consent) after “In the case of” insert “the Homes and Communities Agency,”.
(4) In subsection (7) (power to exercise delegated functions where no existing power to do so) before paragraph (c) insert—
“(bb) the Homes and Communities Agency,”.(5) Before subsection (9) insert—
“(8B) An authorisation given by the Mayor under subsection (1) above to the Homes and Communities Agency in relation to a function does not prevent the Mayor from exercising the function.”
35C (1) In section 73(6), in the substituted subsection (2) of section 5 of the Local Government and Housing Act 1989 (reports by monitoring officer), the definition of “GLA body or person” is amended as follows.
(2) Before paragraph (d) insert—
“(ca) the Homes and Communities Agency, when exercising any function of the Greater London Authority in consequence of an authorisation under section 38 of the Greater London Authority Act 1999;”.(3) Before paragraph (h) insert—
“(gb) any committee or sub-committee of the Homes and Communities Agency when exercising any function of the Greater London Authority in consequence of an authorisation under section 38 of the Greater London Authority Act 1999;”.(4) Before the closing words insert—
“(mb) any member, or member of staff, of the Homes and Communities Agency when exercising, or acting in the exercise of, any function of the Greater London Authority in consequence of an authorisation under section 38 of the Greater London Authority Act 1999;”.”
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Moved by
182LD: Schedule 20, page 383, line 16, at end insert—
“4A In section 38(8) (application of section 101 of the Local Government Act 1972) after paragraph (a) insert “or”.”
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Moved by
182QA: Clause 177, page 165, line 39, at end insert—
“(aa) subsection (4) does not apply to the exercise of a function by an MDC in consequence of an authorisation under section 38 of the Greater London Authority Act 1999 (delegation by Mayor),”
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Moved by
182S: Clause 194, page 174, line 36, leave out “, as from time to time amended,”
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Moved by
182T: Schedule 22, page 387, line 35, at end insert—
“Local Government Act 1974 (c. 7)2A In section 25(1) of the Local Government Act 1974 (authorities subject to investigation by a Local Commissioner) after paragraph (bd) insert—
“(bda) a Mayoral development corporation,”.”
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Moved by
184A: After Clause 206, insert the following new Clause—
“Part 7ACompensation for compulsory acquisitionTaking account of planning permission when assessing compensation
(1) The Land Compensation Act 1961 is amended as follows.
(2) In section 14 (assumptions as to planning permission)—
(a) before subsection (1) insert—“(A1) This section applies only if the relevant land is in Wales.”, and (b) in the side-note for “permission” substitute “permission: land in Wales”.(3) After that section insert—
“14A Taking account of actual or expected planning permission: England
(1) This section is about assessing the value of land in accordance with rule (2) in section 5 for the purpose of assessing compensation in respect of a compulsory acquisition of an interest in land in England.
(2) In consequence of that rule, account may be taken—
(a) of planning permission, whether for development on the relevant land or other land, if it is in force at the relevant valuation date, and(b) of the prospect, on the assumptions set out in subsection (5) but otherwise in the circumstances known to the market at the relevant valuation date, of planning permission being granted on or after that date for development, on the relevant land or other land, other than—(i) development for which planning permission is in force at the relevant valuation date, and(ii) appropriate alternative development.(3) In addition, it may be assumed that planning permission is in force at the relevant valuation date for any development that is appropriate alternative development.
(4) For the purposes of this section, development is “appropriate alternative development” if—
(a) it is development, on the relevant land alone or on the relevant land together with other land, other than development for which planning permission is in force at the relevant valuation date, and(b) on the assumptions set out in subsection (5) but otherwise in the circumstances known to the market at the relevant valuation date, planning permission for the development could at that date reasonably have been expected to be granted on an application decided—(i) on that date, or(ii) at a time after that date.(5) The assumptions referred to in subsections (2)(b) and (4)(b) are—
(a) that the scheme of development underlying the acquisition had been cancelled on the launch date,(b) that no action has been taken (including acquisition of any land, and any development or works) by the acquiring authority wholly or mainly for the purposes of the scheme,(c) that there is no prospect of the same scheme, or any other project to meet the same or substantially the same need, being carried out in the exercise of a statutory function or by the exercise of compulsory purchase powers, and(d) if the scheme was for use of the relevant land for or in connection with the construction of a highway (“the scheme highway”), that no highway will be constructed to meet the same or substantially the same need as the scheme highway would have been constructed to meet.(6) In subsection (5)(a) “the launch date” means whichever of the following dates applies—
(a) if the acquisition is authorised by a compulsory purchase order, the date of first publication of the notice required under section 11 of the Acquisition of Land Act 1981 or (as the case may be) paragraph 2 of Schedule 1 to that Act,(b) if the acquisition is authorised by any other order—(i) the date of first publication, or(ii) the date of service,of the first notice that, in connection with the acquisition, is published or served in accordance with any provision of or made under any Act, or (c) if the acquisition is authorised by a special enactment other than an order, the date of first publication of the first notice that, in connection with the acquisition, is published in accordance with any Standing Order of either House of Parliament relating to private bills;and in paragraph (a) “compulsory purchase order” has the same meaning as in the Acquisition of Land Act 1981.(7) In subsection (5)(d) references to the construction of a highway include its alteration or improvement.
(8) If there is a dispute as to what is to be taken to be the scheme mentioned in subsection (5) (“the underlying scheme”) then, for the purposes of this section, the underlying scheme is to be identified by the Upper Tribunal as a question of fact, subject as follows—
(a) the underlying scheme is to be taken to be the scheme provided for by the Act, or other instrument, which authorises the compulsory acquisition unless it is shown (by either party) that the underlying scheme is a scheme larger than, but incorporating, the scheme provided for by that instrument, and(b) except by agreement or in special circumstances, the Upper Tribunal may permit the acquiring authority to advance evidence of such a larger scheme only if that larger scheme is one identified in the following read together—(i) the instrument which authorises the compulsory acquisition, and(ii) any documents published with it.(9) For the purposes of the references to planning permission in subsections (2)(a) and (b)(i) and (4)(a) and section 14B(1)(c), it is immaterial whether any planning permission was granted—
(a) unconditionally or subject to conditions, or(b) on an ordinary application, on an outline application or by virtue of a development order,or is planning permission that, in accordance with any direction or provision given or made by or under any enactment, is deemed to have been granted.14B Planning permission to be assumed for acquiring authority’s proposals
(1) In a case where—
(a) the relevant land is in England,(b) the relevant interest is to be acquired for purposes which involve the carrying out of proposals of the acquiring authority for development of the relevant land or part of it, and(c) planning permission for that development is not in force at the relevant valuation date,it is to be assumed for the purposes of section 14A(2)(a) and (b)(i) and (4)(a) that planning permission is in force at the relevant valuation date for the development of the relevant land or that part of it, as the case may be, in accordance with the proposals of the acquiring authority.(2) For the purposes of subsection (1)(b), no account is to be taken of any planning permission so granted as not to enure (while the permission remains in force) for the benefit of the land and of all persons for the time being interested in the land.”
(4) In section 15 (assumptions not directly derived from development plan) before subsection (1) insert—
“(A1) This section applies only if the relevant land is in Wales.”
(5) In section 16 (special assumptions in respect of certain land comprised in development plans)—
(a) before subsection (1) insert—“(A1) This section applies only if the relevant land is in Wales.”, and(b) in the side-note after “land” insert “in Wales”.(6) In section 17 (certification of appropriate alternative development)—
(a) in subsection (1) after “an interest in land” insert “in Wales”,(b) omit subsections (10) and (11) (which relate to the Norfolk and Suffolk Broads), and(c) in the side-note for “development” substitute “development: Wales”.(7) After section 17 insert—
“17A Certificate of appropriate alternative development: England
(1) Where an interest in land in England is proposed to be acquired by an authority possessing compulsory purchase powers, either of the parties directly concerned may (subject to subsection (2)) apply to the local planning authority for a certificate containing whichever of the following statements is the applicable statement—
(a) that in the local planning authority’s opinion there is development that, for the purposes of section 14A, is appropriate alternative development in relation to the acquisition;(b) that in the local planning authority’s opinion there is no development that, for the purposes of section 14A, is appropriate alternative development in relation to the acquisition.(2) If—
(a) the authority proposing to acquire the interest have served a notice to treat in respect of the interest or an agreement has been made for the sale of the interest to that authority, and(b) a reference has been made to the Upper Tribunal to determine the amount of the compensation payable in respect of the interest,no application for a certificate under this section may be made after the making of that reference by either of the parties directly concerned except with the consent in writing of the other party directly concerned or the permission of the Upper Tribunal.(3) An application for a certificate under this section—
(a) must contain whichever of the following statements is the applicable statement—(i) that in the applicant’s opinion there is development that, for the purposes of section 14A, is appropriate alternative development in relation to the acquisition concerned;(ii) that in the applicant’s opinion there is no development that, for the purposes of section 14A, is appropriate alternative development in relation to the acquisition concerned;(b) must, if it contains a statement under paragraph (a)(i), specify—(i) each description of development that in the applicant’s opinion is, for the purposes of section 14A, appropriate alternative development in relation to the acquisition, and(ii) the applicant’s reasons for holding that opinion; and(c) must be accompanied by a statement specifying the date on which a copy of the application has been or will be served on the other party directly concerned.(4) Where an application is made to the local planning authority for a certificate under this section in respect of an interest in land, the local planning authority must not, without the agreement of the other party directly concerned, issue a certificate to the applicant before the end of 22 days beginning with the date specified in the statement under subsection (3)(c).
(5) If a certificate under this section contains a statement under subsection (1)(a) it must also—
(a) identify every description of development (whether specified in the application or not) that in the local planning authority’s opinion is, for the purposes of section 14A, appropriate alternative development in relation to the acquisition concerned, and (b) give a general indication—(i) of any conditions to which planning permission for the development could reasonably have been expected to be subject,(ii) of when the permission could reasonably have been expected to be granted if it is one that could reasonably have been expected to be granted only at a time after the relevant valuation date, and(iii) of any pre-condition for granting the permission (for example, entry into an obligation) that could reasonably have been expected to have to be met.(6) If a certificate under this section contains a statement under subsection (1)(a)—
(a) then, for the purposes of section 14A, development is appropriate alternative development in relation to the acquisition concerned if, and only if, it is of a description identified in accordance with subsection (5)(a) in the certificate, and(b) the matters indicated in accordance with subsection (5)(b) in the certificate are to be taken to apply in relation to the planning permission that under section 14A(3) may be assumed to be in force for that development.(7) If a certificate under this section contains a statement under subsection (1)(b) then, for the purposes of section 14A, there is no development that is appropriate alternative development in relation to the acquisition concerned.
(8) References in subsections (5) to (7) to a certificate under this section include references to the certificate as varied and to any certificate issued in place of the certificate.
(9) On issuing to one of the parties directly concerned a certificate under this section in respect of an interest in land, the local planning authority must serve a copy of the certificate on the other of those parties.
(10) In assessing any compensation payable to any person in respect of any compulsory acquisition, there must be taken into account any expenses reasonably incurred by the person in connection with the issue of a certificate under this section (including expenses incurred in connection with an appeal under section 18A where any of the issues are determined in the person’s favour).
(11) For the purposes of this section and sections 18A to 20, the Broads Authority is the sole district planning authority for the Broads; and here “the Broads” has the same meaning as in the Norfolk and Suffolk Broads Act 1988.”
(8) After section 18 (appeal to Welsh Ministers against certificate under section 17) insert—
“18A Appeal to Upper Tribunal against certificate under section 17A
(1) Where the local planning authority have issued a certificate under section 17A in respect of an interest in land—
(a) the person for the time being entitled to that interest, or(b) any authority possessing compulsory purchase powers by whom that interest is proposed to be acquired,may appeal to the Upper Tribunal against that certificate.(2) On any appeal under this section against a certificate, the Upper Tribunal—
(a) must consider the matters to which the certificate relates as if the application for a certificate under section 17A had been made to the Upper Tribunal in the first place, and(b) must—(i) confirm the certificate, or(ii) vary it, or(iii) cancel it and issue a different certificate in its place,as the Upper Tribunal may consider appropriate.(3) Where an application is made for a certificate under section 17A, and at the expiry of the time prescribed by a development order for the issue of the certificate (or, if an extended period is at any time agreed upon in writing by the parties and the local planning authority, at the end of that period) no certificate has been issued by the local planning authority in accordance with that section, the preceding provisions of this section apply as if the local planning authority has issued such a certificate containing a statement under section 17A(1)(b).”
(9) In section 19 (extension of sections 17 and 18 to special cases)—
(a) in subsection (1) (surveyor may apply for certificate) for the words after “certificate” substitute “under section 17 or 17A; and the provisions of sections 17 and 18 if the land is in Wales, or the provisions of sections 17A and 18A if the land is in England, apply in relation to an application made by virtue of this subsection as they apply in relation to an application made by virtue of section 17(1) or, as the case may be, section 17A(1).”,(b) in subsection (3) for “the said section seventeen” substitute “whichever of sections 17 and 17A is applicable”, and(c) in the side-note after “17” insert “, 17A”.(10) In section 20 (power to prescribe matters relevant to Part 3)—
(a) in the opening words after “seventeen” insert “, 17A”,(b) in paragraph (a) after “seventeen” insert “or 17A”, and(c) in paragraph (c) after “seventeen”, in both places, insert “or 17A”.(11) In section 22(2) (interpretation of sections 17 and 18) after “eighteen” insert “and 17A and 18A”.”
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Moved by
186CA: Clause 209, page 183, line 13, at end insert “or (Taking account of planning permission when assessing compensation);
(h) an order or regulations under section 210 which, in consequence of provision made by section (Taking account of planning permission when assessing compensation), amend or repeal a provision of an Act other than a local or private Act.”
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Moved by
187: Schedule 25, page 405, leave out lines 8 and 9