Localism Bill

Dan Rogerson Excerpts

Wednesday 18th May 2011 Commons Chamber

[Andrew Stunell]

I understand the hon. Lady’s concern, but I think that it undervalues the history of tenants in the private rented sector. There is certainly a lot of churn, but there are also many people who spend long periods in very successful private rented sector accommodation. We must be careful not to generalise and should recognise that, if there is a need as a result of a tenancy breaking down, the duty on the authority to deal with that situation remains in the Bill and is part of the protection that tenants have.

[Dan Rogerson (North Cornwall) (LD)]

Does my hon. Friend agree that the Government could perhaps do a little more to look at other ways of encouraging the private sector to offer longer tenancies—for example, through more work on real estate investment trusts—so that people can invest in property in a way that is more long term, rather than having buy-to-let properties with one or two landlords, which I think is the sort of thing that concerns Opposition Members? That might offer some assistance and I would like the Government to do more on that.

[Andrew Stunell]

Yes, I entirely agree that there is scope for innovative solutions. It is by no means the Government’s position that in a majority of cases it will be appropriate for social landlords to follow this route, but where it is clear that there is an obvious disadvantage to tenants who are stuck in the temporary accommodation loop, it is surely right to take steps to deal with that more effectively, and I hope that the House will agree.

The homelessness code of guidance provides that the location of accommodation will be relevant to the suitability of the tenancy and that the appropriateness of the location relates to all members of the household, who must all be considered. Employment, schooling, and family and social connections are all relevant matters that will be taken into account.

New clause 3 and new schedule 1 relate to changes in the governance of arm’s length management organisations, and I hope that I can be helpful to hon. Members as far as that is concerned. New clause 3 would oblige all councils with ALMOs to undertake a statutory ballot of their tenants and seek the consent of the Secretary of State before an ALMO can be closed down. I have listened to the comments that have been made and read the amendment and the briefing from the organisation. I am sympathetic to a number of the arguments put forward, particularly the need to protect tenants and have a consistent consultative model for ALMOs in cases where local authorities are minded to change their status and take them back in house.

For those councils that hold a ballot before establishing an ALMO, it seems reasonable that they should hold a ballot when they are minded to wind up such an organisation. I understand that of the 61 ALMOs that are currently extant, around 30 were formed following such ballots. The principle of “ballot in, ballot out” does not seem a bad one to hold on to. For those councils that did not hold a ballot, our departmental guidance already stipulates that they should consult widely with tenants before an ALMO is wound up. It does not stipulate what specific format the consultation should take. I have asked my officials to look again at that guidance and the options for strengthening it so that all tenants can be assured of their rights.

--- Later in debate ---

[Dan Rogerson]

The key to social housing is longer-term tenure, which gives families, and particularly those with young children, confidence that they have a home for their family for the future. That is why we need to focus on the fact that social housing is meant to be not for short-term crisis accommodation but for family homes.

I should preface my remarks by saying that I absolutely accept that my hon. Friend the Minister’s intention is to tackle the waiting list problem, which is a huge—[Interruption.] I hear an Opposition Member say, “Build more homes,” but as we all know, the waiting list is longer than it was when the Labour Government took office 13 years ago. We can therefore take that with a pinch of salt.

I absolutely understand the Government’s aspirations to increase the availability of social housing, but we need to look at how we can increase and stretch shorter-term tenancies in the private sector, rather than reducing social housing tenancies to equivalent levels.

I also accept that the Government are saying that the minimum level would not be an expectation, but, as we have already heard, some providers of social housing are taking it as such. Good councils and the better registered social landlords will not do that, but some will be waiting to implement that measure, which concerns me. I am worried about tenants when providers take that proposition seriously.

We have more second homes than council houses in my area. The previous Government failed to tackle that huge problem, but I hope that this Government listen to what Cornwall Members and Members for other rural areas say about it. We need to look at how to ensure that those who are fortunate to get a social tenancy can have confidence that they can raise their family without fear of being moved on. People live in fear of being pushed into assured shorthold tenancies in the private sector, where they might be asked to move on every six months or so. We must avoid that situation.

Although my hon. Friend the Minister’s intention is to provide good local authorities with the flexibility to use the measure when that might help, my worry is that the measure is not robust enough to stop others misusing it and making it the norm. That is where my concerns with new clause 21 lie.

This is not Third Reading, but I should say that I am very keen on many aspects of the Bill. However, I am very concerned about the provisions on tenure. I should like a great deal of reassurance in that regard from those on the Treasury Bench before I join the Government in the Division Lobby.

[John McDonnell (Hayes and Harlington) (Lab)]

In two minutes, I shall try to make three points. I apologise for not being in the Chamber throughout the debate. I was here at the beginning, but then I attended a debate in Westminster Hall and chaired a meeting elsewhere.

My first point is a warning, and it comes from the excellent speech by the hon. Member for Brigg and Goole (Andrew Percy). He asked whether tenants will be evicted when councils come round to inspect a property. The answer is that they will be—that is what will happen. Just as universities increased fees to £9,000, the bulk of councils will seize upon the two-year tenure rule. As a result, we will see the invidious inspection of properties to see how much people are earning, and there will be evictions. I give this warning to hon. Members: if this measure is enacted, MPs will be the first people those tenants will come to. On Monday, I tied to prevent a constituent from being evicted from a private rented property. She was being evicted not because she had not paid the rent and or because of antisocial behaviour, but simply because the landlord wanted the property back so that he could re-let it at a higher rent. That will happen time and again, and those who are evicted will come to our surgeries. I warn Members to be careful what they vote for tonight. The measure will cause untold suffering that will land on our doorsteps.

My second point is a statement. The reality is that tonight is the end of council housing as we know it. The argument has been made that there is a turnover of 5% a year in tenancies. If so, within a generation nobody will be given a secure tenancy. We need to be aware of what voting for this legislation would mean: let us admit that it is the end of council housing.

Thirdly, as someone who is proud to have been brought up in a council house in a thriving community, I do not understand why council tenants should be discriminated against in this way. We are not a different type of people: we, too, want secure accommodation; sometimes when our children grow up and leave, we enjoy that extra bedroom, or when things go wrong and they want to come home, we want them to be able to do so—but above all people want security. This is discriminatory legislation, and to be frank it discriminates on class grounds. As my hon. Friend the Member for Sheffield South East (Mr Betts) said, it is as though council house tenants are second-class citizens, yet their rents cover the costs of their properties—in fact, they subsidise others because of the amount they pay in relation to the cost of the property itself.

For those three reasons, people need to think very carefully before voting tonight. People will interpret this measure as an attack on a large number of people, some of whom are vulnerable, and it will undermine the basis of housing in our country for a long time to come.