Social Housing and Building Safety

Clive Betts Excerpts
Thursday 9th June 2022

(1 year, 9 months ago)

Commons Chamber
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Michael Gove Portrait Michael Gove
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I am very grateful to the Father of the House. I have received hundreds, if not thousands, of letters and postcards highlighting the plight of park home residents and referencing the work that he has led. There is much more that can be done there; I will not say more from the Dispatch Box today, but I look forward to working with him on that.

On the question of enfranchising leaseholders, the Father of the House is right, and so is the hon. Member for Wigan (Lisa Nandy), my shadow, that we need to legislate to enfranchise them. We are going to do so in the next parliamentary Session—within this year, as it were. It is important that we do. That is a commitment we must uphold. There are urgent measures, which we debated yesterday, about housing supply, but it is absolutely right that we end the absurd, feudal system of leasehold, which restricts people’s rights in a way that is indefensible in the 21st century.

Clive Betts Portrait Mr Clive Betts (Sheffield South East) (Lab)
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I apologise to the House for being late to the debate; I have been chairing a meeting of the House of Commons Members’ Fund, which I gave prior notice of. The Secretary of State rightly talks about help for leaseholders and others living in blocks that have been affected by Grenfell-style cladding, other cladding and other building safety defects. That is an important issue, but coming back to social housing, he is aware that there is still a problem: apart from ACM cladding, there is no automatic right to funds for social housing landlords. Ministers have said before that that is still under consideration. If it is not provided, there will be a massive black hole, particularly in housing association funding, which means they will build fewer houses than we want them to.

Michael Gove Portrait Michael Gove
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The Chairman of the Select Committee is right to draw attention to that issue. One of the important questions is making sure that, even as we crack down on those social landlords who may not be fulfilling their responsibilities, we also understand that the overwhelming majority of people who work for and in housing associations are striving every day to provide a quality service and to ensure that more people can have a safe roof over their head. We must make sure that they have the resources required, including the resources necessary to meet their building safety obligations. I look forward to working with the National Housing Federation and the Chartered Institute of Housing to see what more we can do to help them in that area, and in others.

I know we only have three hours or so for this debate and there are a number of other hon. Members who want to speak, so I will conclude by saying thank you, again, to the bereaved, the relatives and the survivors of this tragedy for the immense forbearance, dignity and courage they have shown. I hope we will have an opportunity at least every year to report back to this House on the progress we are making on the issues for which they have fought. I am sure I speak for everyone across the House when I say that on the 14th all of us will pause, reflect and honour everything through which they have been. Our commitment to ensure that a tragedy like that never happens again is universal across this House.

Lisa Nandy Portrait Lisa Nandy (Wigan) (Lab)
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On 14 June 2017, every single person in this country watched in horror as a blaze in London became, within hours, one of the worst disasters of modern times. Some 72 people lost their lives that day and dozens more were injured. Among them, as the Secretary of State has said, were young children, GCSE students, retired couples and entire families. As the family of 78-year-old Ligaya Moore poignantly put it, it was a tragedy that turned “laughter into silence”.

I join the Secretary of State in welcoming some of those families to the Chamber today. It always feels uncomfortable, at moments such as this when we stand here and speak, that their voices are not heard and ours are, but I have heard from many of the families affected by this appalling tragedy over the past few years that what they want most is to hear from us the action we will take to honour those lives and build a fitting legacy. I am determined that we will work with the Secretary of State and with all political parties across this House in order to turn that commitment that we have all respectively made into reality.

There has rightly been much soul-searching about how such a tragedy was possible in modern Britain. The public inquiry is still under way and must be allowed to do its work without political interference. However, that must never be allowed to become an excuse for delay or for justice denied, because this was not the first fire in a block with similar cladding. The Government were aware of problems as early as 1986, well before a block of flats in Merseyside caught alight in 1991. That fire, at Knowsley Heights, was followed by similar fires spanning three decades, from Irvine in Scotland to Southwark in south London, where six people lost their lives. In those intervening decades, the alarm was raised many times. One parliamentary inquiry led by the former Member for Southend West, David Amess, who is much missed in all parts of this House, warned that it should not

“take a serious fire in which many people are killed before all reasonable steps are taken towards minimising the risks.”

This series of failures spanned all political parties and successive Governments over many decades. We should have heard that and we should have acted. I therefore join the Secretary of State in saying, on behalf of my party, that we are sorry that we did not hear it and sorry that we did not act sooner.

But how did those warnings go unheeded by so many for so long? The Government’s lawyer told the official Grenfell inquiry that

“within the construction industry there was a race to the bottom, with profits being prioritised over safety.”

It makes me angry to hear that that can be admitted with such candour now but nothing was done before. I share the Secretary of State’s passion to go after those who recklessly disregarded people’s lives and put their profits and their own interests before safety. If they broke the law, acted recklessly or acted immorally, then I will join him in going to the ends of the earth to make sure that they pay a heavy price for doing so.

We have to ask ourselves, too, standing here in the centre of power: who permitted that to happen? Over 30 years and five different Governments—Labour, coalition and Conservative—how did it come to pass that profits were allowed to matter more than people. How could the concerns and lives of people in the centre of one of the wealthiest boroughs in the wealthiest city in one of the wealthiest countries in the world be ignored—effectively rendered invisible by decision makers only a few short miles away? The appalling tragedy suffered by the people of Grenfell is undeniable evidence of the unequal society that we live in, where lives are allowed to be weighed against profit on a balance sheet and come out the worst, and where those who lack money also lack power. When I talk to social housing tenants up and down the country, this what I hear so often—that they are not seen or heard by decision makers, and that when they raise their concerns and bang on the doors of the corridors of power, those concerns still go unheeded. One social housing tenant said to me: “We simply do not count.” This has to be the day when we stand up together and say, “This ends now.”

There are 4 million families in rented social housing in England. Every single one of them deserves a decent, safe home, and, more than that, the power to drive and shape the decisions that affect their own lives. We should be scandalised that so many homes are not up to a fit standard, not just on fire safety but in being cold, damp and in a state of disrepair that shames us all in modern Britain: homes with black mould and water running down the walls; homes that are unsafe; homes that are damp and overcrowded. I recently heard from a teacher about a child who was coming to school covered in rat bites. The school is using its pupil premium to send people round to make sure that these children are clothed, fed and protected from rats. What have we come to in Britain in the 21st century? It is an absolute disgrace.

The Secretary of State is right that we should take a zero tolerance approach to social landlords who do not live up their obligations—who do not do everything within their power to make sure that those issues are dealt with. But I also gently say to him, in a constructive tone, given the gravity of what we are dealing with today, that the Government have to do their bit as well. That means reversing some of the cuts that have been made to councils and housing associations in recent years which mean that repair budgets are virtually non-existent in many parts of the country, and that good people have been lost and expertise has gone.

We welcome the decision to publish a social housing reform Bill to try to tackle some of these issues, although we are concerned that it has not materialised in advance of this debate. We were led to believe that we would have that Bill before we stood up to speak today. If there are problems within Government—if there are wranglings taking place behind closed doors—my offer to the Secretary of State is this: we will work with him and support him in whatever battles he has to make sure that this Bill sees the light of day, and quickly. That also goes for the renters reform Bill, which must, as my hon. Friend the Member for Brentford and Isleworth (Ruth Cadbury) said, deal with the appalling standards in many private rented homes up and down this country. Some of that, I have to say to the Secretary of State, has been caused by Government policies such as the bedroom tax, which forced many people out of the secure social home that they had lived in for many years, close to friends, family and children’s schools, and into private, rented, often overcrowded and substandard accommodation that, absurdly, cost the public more than it did to house them in their own home.

We welcome some of the measures that the Secretary of State has proposed, particularly the promise to beef up the role of the regulator. This is a welcome step forward giving it the power to inspect, to order emergency repairs, to issue limitless fines, and to intervene in badly managed organisations. But we have to do more to tilt the balance of power back towards tenants to give them not just a voice but real power to shape and drive the decisions that affect their lives, their homes, their families and their communities. The measures on tenant satisfaction and a residents’ panel that meets Ministers three times a year are welcome, but well short of a dedicated tenants’ organisation that is put on a statutory footing and exists to be a voice to champion their interests. Such a body existed under the last Labour Government but was scrapped by the Secretary of State’s Government in 2010. I ask him please not to close his mind to perhaps revisiting previous methods that worked. Let us work together with tenants to get this right once and for all.

Clive Betts Portrait Mr Betts
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My hon. Friend is absolutely right about the body—the Tenant Services Authority—that used to exist and was in place to do that. Let me return to the point that I made to the Secretary of State in an intervention: this is about resources. Councils and housing associations are short of resources. They cannot bring their homes up to a proper standard—the new decent homes standard—build new homes, and do all the necessary building safety and other works with the money they have. Will my hon. Friend join me in pressing the Secretary of State—hopefully he is listening, as he said he was—to make sure that social housing landlords have the same access to funds to deal with safety works that are now, quite rightly, available to the private sector?

Lisa Nandy Portrait Lisa Nandy
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My hon. Friend is absolutely right. I would add to the many challenges currently facing councils and housing associations the challenge of decarbonisation and the goal of net zero. These things are keeping well-meaning, good people who work in our councils and housing associations awake at night trying to work out how they are going to square the circle, and they deserve more support from their Government.

Nor is it acceptable that the measures are silent on how many new social housing properties will be built. We have a chronic shortage of affordable rented homes, with some of the challenges that my hon. Friend outlined. It is really concerning that today the Prime Minister said that the big idea to solve this is to allow people to use benefits to get a mortgage—not because we disagree with the principle of extending home ownership much more widely to those who want to grasp it, but because he seems to have forgotten to talk to the lenders. The Secretary of State will know that this has been the problem with previous announcements that have aimed in similar ways to help people to get mortgages. If mortgage lenders are not on board, they simply will not do it. The Prime Minister may not have reached out to mortgage lenders, but I am sure the Secretary of State will. When he does, will he talk to them about the very real difficulties of people on universal credit—all of whom, by definition, have savings of less than £16,000, with most having very little in savings, if anything at all—and about how they get a mortgage without any kind of deposit, and whether that is indeed viable? The Prime Minister appears to have forgotten to talk to mortgage lenders; I think it is possible that he also forgot to talk to the Secretary of State before he made the announcement. I do not envy the Secretary of State the task of trying to sort this out, but I am sure that he will go at it with his characteristic tenacity, and I wish him well in the endeavour.

I also wish the right hon. Gentleman well in realising the ambition he set out today: that when the Government extend the right to buy on a voluntary basis to housing association tenants, they will ensure that the homes are replaced, like for like and one for one. I was pleased to hear him say that he had secured that commitment, because Government figures suggest that while just over 2,500 council homes were built in 2010, over 11,000 were sold off under the right to buy; and, as he knows, in the Government pilots of the extended scheme, only half of the homes were replaced and the replacements were more expensive and inferior in standard to the ones that were sold. So how is the Secretary of State able to give this commitment today? What is the estimate of the cost of doing that, and where will the money be found? He knows better than anyone how squeezed his existing budget is. Given that full replacement of right-to-buy homes has never been achieved, how does he intend to pull that off this time? Surely, with 1 million people stuck on social housing waiting lists and a shortage of 1.5 million homes, he is not going to pursue measures that make the situation worse for most families?

Clive Betts Portrait Mr Betts
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There are two important questions here. First, will participation by housing associations be voluntary? They are independent organisations, not part of the public sector. Secondly, replacing one for one, like for like, a family home for a family home, is not just about the Treasury making up the discount. Talk to housing associations: the cost of building a replacement is often greater than the market value of the home sold. There is another gap, which the Government have to fill.

Lisa Nandy Portrait Lisa Nandy
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I think my hon. Friend, the Chair of the Select Committee, is making the Secretary of State’s day. We can add that to the very long list of problems. I think his question was more for the Secretary of State than for me, and I am sure he will ensure that it is addressed in the winding-up speeches, but I add my voice to his in saying that one of the reasons we were very concerned about the scheme is that it reaches only a very small number at a very high price.

We have a housing crisis in Britain and, as the Secretary of State knows, it manifests in a multitude of ways—in people who have been mis-sold leasehold properties, people who face soaring rents and are crippled by housing costs and the cost of living, and people in totally unsuitable exempt accommodation. Those loopholes have still not been closed while people continue to milk the system and claim housing benefit while allowing communities to fall into rack and ruin.

As the Secretary of State acknowledged, five full years after the Grenfell tragedy thousands of people remain stranded in homes covered in similar cladding, facing ruinous costs because of a scandal that was not of their making. The right hon. Gentleman is right that developers, not leaseholders, should pay. He has pushed that further than any of his predecessors and he has my full support in doing so. As long as he continues down that road, we will support him in the fight. However, I understand that so far 45 homebuilders have paid £2 billion to fix fire-related safety defects, which is roughly half of what he told the House would be needed. Where will the other £2 billion come from? What assurances and guarantees does he have that the developers who have agreed to pay cannot backtrack on any of the agreements?

The Government’s plans are missing several elements that need to be addressed and added to existing measures in the Building Safety Act 2022. The Secretary of State will be aware of those. There is still far too little support for the significant number of leaseholders who face huge bills to fix non-cladding defects.

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Robert Neill Portrait Sir Robert Neill (Bromley and Chislehurst) (Con)
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It is a privilege to speak in this debate. I, too, pay tribute to the families and survivors of the Grenfell tragedy, and I think all of us who served in Government at any time before that tragedy would join both Front Benches in the apology that is offered to them; there was a systemic failure that let them and many others down.

As the shadow Secretary of State generously said, my right hon. Friend the Secretary of State has shown real energy in seeking to address these matters now, and I pay tribute to him for that. We have therefore seen marked progress, which I welcome, but I also want to put on record some areas in which I know the Minister currently on the Front Bench, my hon. Friend the Member for Walsall North (Eddie Hughes), will be keen to press for yet further progress.

The first of them relates to cladding. We have come a long way, and my constituents are very grateful for that. We have had campaigns, which I have raised in this House, for the residents of Northpoint in my constituency, and others are affected in other buildings, too: Iconia House and Azzura House in Homesdale Road; and William House and Henry House in Ringers Road. They happen all to be in the centre of Bromley, so this is not purely an inner-London issue; it affects town centres and suburban centres across the country. It is therefore all the more important that we get it right.

Eventually, after a very long campaign, the remediation work is starting at Northpoint, but it will take perhaps a year or so to complete. The landlord of the occupiers of Northpoint was a property company that was an offshoot of the Tchenguiz family trust, not an organisation noted for its generosity towards its tenants. It stood upon its legal rights and insisted upon the flat owners—the lease- holders—covering the costs, for example of a waking watch.

It is certainly to be welcomed that future costs of waking watches and remediation will be picked up, but these leaseholders are out of pocket to the tune of tens of thousands of pounds for the waking watch that they installed because the London Fire Brigade, in exercise of its duty, issued a notice saying that without it the property would not be habitable. They were caught between the devil and the deep blue sea: what else were they to do but acquire that waking watch? Otherwise their homes would have been unsafe, which would have been unfair on them. The mental and health pressures on some of these people was immense. Their landlord was remote and frankly not possible to go after. It was not signed up to the scheme that the Secretary of State has worked so hard on and responsible developers have joined. The occupiers of Northpoint therefore had to dip into their own pockets when most of them already had mortgages, especially as many of them were first-time buyers, and when the flats were unmortgageable—they could not increase the mortgage on them because nobody would lend on them—and until this work was done they were effectively uninsurable too.

So these people had been left in a hopeless situation, and while it is right that the Government seek to recover every penny they can from developers and builders who fail to come up to the standards, where there has ultimately been a failure of governance in the broadest sense over a period of many years it is legitimate for the state to stand behind those who have lost out. Where there is such a corporate failure, the state must pick up the ultimate responsibility. So I hope the Minister will look again at means of coming to the aid of such people for retrospective costs where it is clearly not realistic to pursue the builder or developer. There will be a number of such cases. In this instance the freehold had been sold on many times. There will also be cases where developers who may be at fault will no longer be in business; they may have wound up or amalgamated. In those circumstances, the moral and corporate responsibility must fall on the state.

There are also areas where there has been progress but there is more to do. Members have referred to building insurance. There has been a marked increase in premiums across the board. People have had major—threefold or fourfold—increases in their premiums. Again, these people are often in flats that are unmortgageable and unsellable, and now, on top of their service cost charges to pay for steps such as a waking watch, they are facing massive increases in their insurance premiums. The question has to be raised—many of my constituents have done so—whether the market is operating effectively. How genuinely competitive is the market in these areas? There is a real concern that at the very least there is an excessive risk-averseness now: having gone from having too lax an approach in the past perhaps, now the insurers’ approach is too risk-averse, resulting in unrealistically and unfairly high premiums for many flat owners. That, too, is an area where it is legitimate for the Government and regulators to step in.

Clive Betts Portrait Mr Betts
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Will the hon. Gentleman give way?

Robert Neill Portrait Sir Robert Neill
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Of course; I happily give way to the Chairman of the Levelling Up, Housing and Communities Committee.

Clive Betts Portrait Mr Betts
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We raised the issue of insurers at the Select Committee. Premiums have gone up by ridiculous amounts, often for buildings that are now safer than before the premium increases. The Association of British Insurers could not tell us how much more the insurance companies have paid out in the last three or four years on high-rise blocks, so we have no idea how much has been paid out, but we do know there have been massive premiums increases. Does the hon. Gentleman agree that we should encourage Ministers to take further action with the ABI and others to start sorting out these unreasonable premiums increases?

Robert Neill Portrait Sir Robert Neill
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The hon. Gentleman is right, and I hope Ministers will do that. Again, the Secretary of State—who I am delighted to see back in his place—and his colleagues have shown real energy on this, but we need to keep the pressure on; that is key.

I am grateful to Lord Greenhalgh, who has been in correspondence with me a good deal on these matters. He pointed out that back in January the Financial Conduct Authority and the Competition and Markets Authority had been called upon

“to conduct a review of the buildings insurance market for medium and high-rise blocks of flats to get to the bottom”

of this concern. That is good of course, and the wider issue was recognised by Lord Greenhalgh, who wrote:

“Where the risk has demonstrably decreased, so should the premium.”

But that is not happening at the moment. While we want that review to be thorough, it must also be implemented in a timely fashion. I was advised by Lord Greenhalgh that the Department expects the FCA and the CMA

“to provide advice and recommendations within the next six months.”

He wrote that in a letter sent last month. I hope we can keep the pressure on so that it happens well within six months, rather than at the far end of that period. The risk, of course, is that some of the stakeholders in the industry will not have the greatest of incentives to move swiftly on this matter, so the duty therefore falls on the Government to do that. I know the Secretary of State has been more than willing to flex muscle with the sector when necessary to get movement, and I hope he will do so on this. I also hope that the Minister will confirm in winding up the debate that once the advice and recommendations from the CMA and FCA have been received, there will be prompt and urgent action to implement them in whatever form is necessary to address this genuine problem.

There is a related matter on the operation of EWS1 forms. In my constituency there is a firm called the Frankham Group. Steve Frankham MBE, a constituent of mine, has done a great deal of work in this field and has been recognised for his service in the industry and charitable works around these matters. His firm is anxious to do the right thing but it, and many others in the sector who have contacted me, are concerned about the real difficulty they are finding, as responsible contractors employed by the registered social landlord sector or the private sector to carry out the EWS1 surveys, in getting both accreditation and professional indemnity insurance.

At the beginning of the year, the Royal Institution of Chartered Surveyors set up accreditation for technicians and surveyors who will be carrying out the scheme. Despite firms such as Frankham having participated in meetings and sent in assessment forms as required, nothing as yet has been forthcoming from RICS to set the scheme properly in place. At the same time, insurance premiums have increased exponentially, which is, in some cases, making large contracts less viable than would otherwise be the case.

The last thing we want is for rogue operators to come into the market and undercut the responsible contractors who carry out this essential work, so we need both a realistic and fair insurance market operating in the sphere and, in parallel, a proper accreditation scheme in place. Otherwise, the temptation for the cowboys to undercut responsible people will be the greater. We need urgent action on that. I will happily share with the Minister and the Secretary of State the correspondence that I have had from my constituents, with the technical detail that they set out on what they have been doing to try to get the scheme working. I had a look at an EWS1 form myself, and it is quite complicated. We could not expect a group of residents to deal with it—they need professional advice to do it properly—but we must ensure that the professionals are accredited and insured properly to be able to undertake the work. I hope that we can flag that up, because I am not sure that enough attention has been given to it.

The other matter that relates to specific building safety issues is the position of small landlords, who are sometimes referred to as portfolio landlords. I appreciate that there has been movement to improve the number of landlords included in the Government’s support schemes for remediation, but the current definition for those who can come into the scheme is those who have their own property but own only one other property, which they do not live in. Constituents have contacted me about that.

Let us say that a retired couple have bought four small flats, as many people may have done, all in their joint names. In retrospect, I suppose they could have put them in their sole names and had two each, but, perfectly straightforwardly, they chose to put them in joint names. Had they bought two larger flats, they might well have fallen within the scheme. As it is, because they happened to invest in that type of property, they fall outside the scheme’s scope. I wonder whether the Secretary of State could think again about the definition of a portfolio landlord. Most of us might think they are someone with 20, 30 or 40 flats for whom that is their principal business and think, “Well, they will have to take the commercial risk on that.” They are not the large-scale landlord chains that we see, either. They are generally small investors, often moving into semi-retirement, who are not in anything like the same position to bear the costs. The principle behind the scheme is admirable, and it would be a shame if the ship was spoiled for a ha’porth of tar, meaning that entirely straightforward people who were caught out are left bearing a cost when someone with a slightly different configuration of their retirement investment would be able to benefit.

Finally, I turn to a broad point that echoes one made by the hon. Member for Mitcham and Morden (Siobhain McDonagh). As well as dealing with the building safety situation, we need to look at the maintenance of much of our social housing estate. Constituents have been in touch with me repeatedly about the difficulty they have in particular with some of the large RSLs. They have also been in touch with the Secretary of State’s Department in relation to the largest RSL in my area, Clarion. I deal with Clarion, and I see that the shadow Minister, the hon. Member for Greenwich and Woolwich (Matthew Pennycook), has come across it as well. We have also recently seen it in the press. It is one of the largest social landlords in the country, but, I am sorry to say that, despite sometimes having had constructive dealings with it, many of my constituents who are its tenants do not find it constructive to deal with. There is a continual issue of poor maintenance, with contractors who simply do not do the job properly and have to revisit time and again. In one estate in Mottingham in my constituency, we have had problems getting things done, which have been running for about four years—they are only partially done, then revisited and more is done. Clarion is quick to send removal notices for pot plants and garden sheds that may have been put in place without permission. It is sharp in doing that. It is also quite quick to serve statutory notices for the costs of significant capital works such as renewing roofs and other matters, but I am sorry to say that it is remarkably slow to sort out basic repairs, never mind some of the more serious issues such as when damp gets in.

That makes me wonder whether some of our RSLs have not in fact become too big to be accountable. The stock in Bromley was originally transferred by Bromley Council to an RSL called Broomleigh. Actually, it was one of the first RSLs, and that was one of the first stock transfers to take place. The whole point of Broomleigh was that it was locally based, with local directors and local offices. What we have seen over a period of time is a series of RSL mergers, so they have become much larger.

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Clive Betts Portrait Mr Clive Betts (Sheffield South East) (Lab)
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Thank you for calling me, Mr Speaker. I did apologise for being late for the beginning of the debate, for reasons that I explained.

Let me first welcome the Grenfell residents who are with us today. We must never forget those who died, those who were injured, and those who were bereaved by that tragedy. The Levelling Up, Housing and Communities Committee has done a great deal of work and produced a great many reports about building safety since Grenfell, and indeed we carried out pre-legislative scrutiny of the Building Safety Bill, now the 2022 Act. That, I think, shows the strength of Parliament working together, with the Government presenting legislation and Select Committees scrutinising and trying to improve it. However, Grenfell did not just highlight problems relating to building safety; it highlighted fundamental attitudes towards social housing.

Essentially, social housing was believed, by some in positions of authority, to be poor housing for poor people, and that was an attitude that stuck. I remind the Secretary of State that there was a time when the Government’s approach was to sell off high-value council housing, because if it was high-value the presumption was that it was too good for council tenants to live in. I hope that we have moved on since then, but there are lessons to be learned. As the Grenfell residents have told us time and again, when they approached their landlords with problems and concerns, they were ignored—because they were just council tenants, and they would not know what they were talking about, would they? Unfortunately, that attitude is still present to some extent among social housing landlords, whether they be councils or housing associations: it is a case of “We will do things to you, as tenants; we will not do things for you and with you.” That attitude needs to change fundamentally.

We have made some progress. Hopefully some of the moves towards ensuring that tenants’ voices are heard, both locally and nationally, will bear fruit. This is not a new development. When I was chair of housing in Sheffield in the 1980s, there were a number of widespread tenants associations and a tenants federation. Sheffield still has the unique system whereby tenants pay a levy on their rents, voluntarily, towards the funding of their tenants associations. They are not reliant on the council’s benevolence: they are entitled to that money to run their own associations, and I think that that is a good approach that might be looked at more widely.

We have clearly made progress on making buildings safer throughout, and the Secretary of State has made further changes. However, when the Select Committee looks at the numbers, we will see gaps in the legislation whereby some properties are not covered by it. As my right hon. Friend the Member for Leeds Central (Hilary Benn) pointed out, lower-level properties are still not covered. There is also the question of the speed of our progress. Are we really achieving the speed that is necessary to make people safe in their homes? They have been under such pressure over the last few months. This is not just about the buildings; it is about the people who live in those buildings and the mental stress and strain that they are experiencing, not knowing whether their home is safe and whether they can afford to make it safe. Those matters ought to be of fundamental concern to us all.

Let me return to the point that I made earlier about social housing and the need to find the necessary resources. If we really believe that social housing tenants are as entitled to good homes as anyone else, we must recognise that they are entitled as anyone in the private sector to receive Government help, and help from those who were responsible for the problems in the first place, to make their homes safe; or else the landlords should pay for the work by diverting money from other sources. The tenants should not have to pay for it out of their rents.

If we want to ensure that social housing tenants have safe homes, we must also ensure that they have good-quality homes. We heard some appalling stories from my hon. Friend the Member for Mitcham and Morden (Siobhain McDonagh) about her problems with housing associations in her constituency, and the Select Committee has heard from Dan Hewitt from ITV News and from tenants about the conditions in which people are having to live, which are completely unacceptable. We need to make buildings safe and more energy-efficient; we need housing associations and councils to ensure that they are fit in live in; and we will need to address the decent homes standard when it is introduced; but the money simply is not there to do enable all those things to be done, and it is certainly not there to pay for building safety work on top of that.

The Committee heard from Placeshapers, a group of middle-ranking housing associations that are more locally based in their communities, but none of them can afford to make their buildings into zero-carbon homes by 2050. They do not have the budgets; the money simply is not there. We have to listen and learn from that. We have heard from the National Housing Federation that it will cost at least £10 billion to deal with fire safety building work. That money will have to come from somewhere in the budgets unless the Government find it. All those challenges, which social housing providers will have to meet, will not be met by the current budgets. Once again, social housing tenants are being treated as second-class, second-rate citizens, which is simply not acceptable.

Then there is the issue of new housing. My hon. Friend the Member for Mitcham and Morden described the devastating position in which so many of her constituents find themselves, but we are all seeing those circumstances. People who are in desperate need of housing cannot get a home to live in from their councils or housing associations. It was interesting to hear the council house figures from my right hon. Friend the Member for Leeds Central. We are seeing exactly the same in Sheffield. When I was housing chair in the 1980s we had more than 90,000 council houses, but the number is now down to 45,000. By and large, it is the nice family homes in the suburbs that have been sold under the right to buy; not many inner-city flats have been sold. When I was housing chair, we would not let a flat to a family with children and ask parents to lug prams up the stairs to a second or third-floor flat or maisonette; they would be given a family home. That is not possible now. People come to me and say, “Mr Betts, we have a family and we need a house with a garden”, and the answer is “There are not any to let.”

Matthew Offord Portrait Dr Matthew Offord (Hendon) (Con)
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The right hon. Member for Leeds Central (Hilary Benn) made this point. In the London borough of Barnet and other London boroughs, there are no three-bedroom houses. So many people come to me, and to other Members of Parliament, seeking such houses, but, as the hon. Gentleman says, only flats are available. Sometimes councils, including the previous Conservative council in Barnet, were accused of social cleansing, but the reality is that people were encouraged to go to other parts of the country because there was no stock available in Barnet.

Clive Betts Portrait Mr Betts
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It is a problem that is replicated nowadays. At one stage it was just a London problem, but it is now a problem in many other places as well.

Although Sheffield Council has an ambitious programme to build 3,000 council homes, which was pioneered, eventually, by my good friend and colleague Councillor Paul Wood, the cabinet member for housing, that will not address the problem quickly. More money needs to be provided, and more needs to be done.

We did another report in the Select Committee in which we said we needed to build at least 90,000 social houses a year in this country, but that to do that, the Government would need to put in funding of £10 billion a year, which is much more than they are currently putting in. That is the reality. Unless we build those 90,000 homes a year in the social sector, we are not going to hit the 300,000 target nationally, because the private sector is not going to build anything like 300,000; historically, it has not done so. So there is a challenge on these issues as well.

I want to say one or two words about the right to buy. I have mentioned the consequences of the right to buy in the past. If the Government want to go ahead, and if they genuinely feel that it provides the best value for the Government’s money to subsidise discounts for housing association tenants to buy their homes, I would like to see the impact statement that goes with that. I would like to see where that Government money is going to come from. Will it be diverted from existing housing budgets? If so, instead of the extra money for social housing that I am arguing for, are we going to get less money in those budgets? Will the Government provide a replacement for the discounts given to housing tenants when they buy their homes, and will they also make the money available for the full cost of replacing each home sold? Talking to many housing associations, I understand that the cost of replacing is greater than the market value of the homes when they are sold. That point is often lost. I am not sure where those assurances will come from, but hopefully we will get them.

Are housing associations going to be allowed to say no to this? They are private organisations—some of them are charities—and they have to meet particular requirements. In the past, there was a voluntary agreement with the National Housing Federation when the pilot scheme was introduced. Is it going to be a voluntary agreement again? I am not aware that NHF has been consulted about this scheme or its details. I assume that those conversations are going to happen, but it will be interesting to see what the approach actually is.

I would like to make one completely separate, important point. It goes back to Dame Judith Hackitt’s report on the Grenfell disaster. One of the things she said was absolutely fundamental: she talked about the golden thread running through all housing developments and construction and said that there had to be absolute transparency. The Select Committee has had a disagreement with the Government about building control. We believe that building control inspectors should be independently appointed and not appointed by the developer. The Government have conceded that point—or, I think, proposed it—in relation to the highest-rise, most vulnerable buildings, for which the new building safety regulator will be responsible for appointing building control officers, but not for the rest of the sites.

I have a problem in my constituency at a development called Owlthorpe Fields, about which I have challenged the Housing Minister before in relation to non-compliance with planning conditions. Some residents were concerned about the way the foundations were going in, so I asked the National House Building Council, the appointed building control organisation, whether it could give me some information about the number of visits it had made, the number of inspections it had carried out and the history of its work on the site. The answer I got from the NHBC stated:

“I am sorry to inform you that NHBC is not able to provide this information. The information we hold in respect of Owlthorpe Fields is not a matter of public record and cannot be released without prior approval from Avant Homes.”

Avant Homes is the developer. In other words, everything is secret unless the developer decides to make it transparent.

That is not acceptable. If we are in favour of transparency, as I believe the Secretary of State and the Housing Minister are, this issue needs addressing. If something goes wrong in the future, everyone will ask why, and the answer will be that no one was allowed to see what was happening in the process. I am just raising that as an issue. Thank you for the opportunity to speak, Mr Deputy Speaker.

This has been a very thoughtful debate. I come back to the point that we need to start treating social housing and social housing tenants as a priority for investment in order to build more of the decent homes that they ought to be able to live in.

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Eddie Hughes Portrait Eddie Hughes
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The best commitment I can make is that the regulator will be properly funded to discharge its duties. We can discuss what mechanism will be used to arrive at that position, but we are determined to make sure it has the staff and resources to deal with the problems it faces.

There has been considerable discussion of the voluntary right to buy. I insert the word “voluntary” because I understand that is how it would have to operate given that the Government do not own or control the housing associations. I fully appreciate some of the points that have been raised, but the pilot was in the west midlands and I have spoken to a number of my constituents who took the opportunity to buy their property. Home ownership is a significant aspiration for people across the country, and we should not shy away from the idea of considering any and all mechanisms to make it work.

Eddie Hughes Portrait Eddie Hughes
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I see that the Chair of the Select Committee is desperate to discuss this further.

Clive Betts Portrait Mr Betts
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I thank the Minister for always being courteous in giving way. Is it not true that in the pilot there was nothing like a one-for-one, let alone a like-for-like, replacement of the property sold? That is one of the reasons why the pilot was stopped, is it not?