Oral Answers to Questions
Felicity Buchan Excerpts(1 year, 5 months ago)
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Wera Hobhouse (Bath) (LD)
The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Felicity Buchan)
On behalf of the Department, I would like to wish every good luck to the England and Wales football teams. I have just heard the latest update, and I understand that England are leading 4-0.
In line with the Conservative manifesto, we remain fully committed to ending section 21 to ensure that renters feel secure in their homes and are empowered to challenge poor standards and unjustified rent increases. That is rightly a priority for the Government and we will bring forward legislation during this Parliament.
Sarah Green
I thank the Minister for her response and echo her good wishes for the England and Wales football teams.
Three years ago, the Government pledged to ban section 21 no-fault evictions and it is good to hear that they are committed to doing so. During this time, YouGov estimates that 227,000 people in England have been served such notices. I recently spoke to representatives from a local homelessness charity who were concerned about the rising demand for their homelessness prevention service. May I push the Minister a little further and ask her to confirm when in this Parliament the Government will put an end to no-fault evictions and what additional support will they be providing to those working to end homelessness?
Felicity Buchan
We are committed to taking forward this legislation, which is why we published the White Paper in June. Our consultation on the decent homes standard concluded on 14 October and we are currently evaluating the responses to it. We will introduce the legislation as soon as parliamentary time allows. I want to give the hon. Lady a personal commitment: I am very focused on the private rental sector and the issues in it, and I am determined that we will reduce the number of non-decent homes in that sector.
Wera Hobhouse
In asking my question, I refer Members to my entry in the Register of Members’ Financial Interests.
The tragic death of Awaab Ishak has highlighted the deadly consequences of poor-quality housing. Many tenants in the private sector face similar if not worse problems with damp and mould, but do not dare to speak up due to fear of being evicted. Is it not high time that the private rental sector is also more tightly regulated and that the tighter inspection regime and penalties that the Secretary of State announced last week should apply to that sector, too?
Felicity Buchan
I wish to give all my condolences to the family of Awaab. Clearly, it is simply unacceptable in today’s world that a young boy can die in that way. I am committed, as I have said, to implementing a decent homes standard and to making sure that the enforcement of it is strict.
Sir Christopher Chope (Christchurch) (Con)
How will abolishing section 21 increase the supply of rented housing?
Felicity Buchan
We are looking to abolish section 21 at the same time as we strengthen the grounds for landlords to take possession of their properties if they have a good reason to do so—that could be because of antisocial behaviour, rent arrears, or needing to sell the property. The two go in tandem, but it is absolutely imperative that we go ahead with the abolition of section 21.
Paula Barker (Liverpool, Wavertree) (Lab)
Later this week, the Department is scheduled to release stats for the second quarter of the year on section 21 evictions. The emerging picture is clear: section 21 evictions are going up. We saw a 26% increase during the first quarter of this year. We are now three years down the track from the publication of the 2019 Conservative manifesto promising to end section 21. I note that the Minister has committed today to ending section 21 in this Parliament, but may I push further and urge the Department to commit to bringing forward emergency legislation early in the new year to end this scandal, working with the Opposition to do so? Will those on the Government Benches accept that, through their inaction, the Department is leaving tenants vulnerable to eviction in the meantime?
Felicity Buchan
As I have said, we are committed to abolishing section 21 in this Parliament at the earliest opportunity.
Dr Luke Evans (Bosworth) (Con)
Damian Green (Ashford) (Con)
The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Felicity Buchan)
The Government remain committed to our 10-year vision for the reform of adult social care, and we are taking forward proposals in the “People at the Heart of Care” White Paper. As my right hon. Friend will appreciate, following last Thursday’s fiscal statement, Departments are reviewing specific spending plans, and details will be announced in due course.
Richard Burgon (Leeds East) (Lab)
Bob Blackman (Harrow East) (Con)
Felicity Buchan
I congratulate my hon. Friend on his Bill passing its Second Reading on Friday. This is clearly an important sector and there is no question that we need to put in place the licensing regime, on which I made a commitment that we would lay regulations within 18 months. However, it is critical that the taxpayer gets good value for money.
Tony Lloyd (Rochdale) (Lab)
I strongly welcome the Secretary of State’s letter to local authorities over the weekend. It is right and proper that mould should be seen as a serious hazard to health. Does he agree that we also need regulatory powers, with resources to allow local government to implement those powers? Without that, we are simply using words and not action.
Mary Robinson (Cheadle) (Con)
The renters reform Bill will make private tenancy arrangements fit for the 21st century. Will my right hon. Friend set out what steps the Government are taking to ensure that such tendencies are also up to a decent standard? How will that be backed up with monitoring and enforcement?
Felicity Buchan
We are committed to legislating for a decent homes standard, which is critical. I agree that enforcement is terribly important, which is why we have strengthened councils’ enforcement powers, including through penalties of up to £30,000.
Marsha De Cordova (Battersea) (Lab)
Awaab Ishak’s death was shocking, and such things should not be happening in our country in 2022. Everybody deserves a warm, safe and decent home to live in. His case shows what happens when people living in social housing are disregarded, as has been the case in my constituency after decades of Conservative control of Wandsworth Borough Council, which has allowed social housing stock to go into decay. What is the Secretary of State’s Department doing to assist investment in social housing?
Supported Housing (Regulatory Oversight) Bill
Felicity Buchan Excerpts(1 year, 5 months ago)
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The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Felicity Buchan)
I start by warmly congratulating my hon. Friend the Member for Harrow East (Bob Blackman) on his incredibly important Bill reaching Second Reading. I pay tribute to everything he has done to get the Bill to Second Reading and for everything he has done in the sector. It is great to see members of his team in the Gallery, and his wife was also there earlier—it was so great to see her.
I pay tribute to my predecessors, my hon. Friend the Member for Walsall North (Eddie Hughes) and my right hon. Friend the Member for Pendle (Andrew Stephenson), who is on the Front Bench with me as the Lord Commissioner of His Majesty’s Treasury. It is great to see him here. I also pay tribute to everyone else who has worked so hard on the Bill, including the Select Committee, Crisis and the councils that worked on our pilot projects.
I pay tribute to the thoughtful contributions from so many Back Benchers, including the hon. Member for Birmingham, Ladywood (Shabana Mahmood), who I know has worked intensively in the sector. On my Benches, we heard from my hon. Friends the Members for South West Hertfordshire (Mr Mohindra), for Truro and Falmouth (Cherilyn Mackrory), for Runnymede and Weybridge (Dr Spencer), for Bosworth (Dr Evans), for Ipswich (Tom Hunt), for Heywood and Middleton (Chris Clarkson), for Penrith and The Border (Dr Hudson) and for Keighley (Robbie Moore), as well as my hon. Friend the Member for Milton Keynes North (Ben Everitt), who is on the Select Committee, and my hon. Friend the Member for Grantham and Stamford (Gareth Davies), and that is not to miss out the hon. Member for Croydon Central (Sarah Jones).
The matter we are here to discuss is one of the utmost seriousness and importance to the Government. I am pleased to confirm that the Government fully support the Supported Housing (Regulatory Oversight) Bill, and I look forward to continuing to work together with my hon. Friend the Member for Harrow East and Opposition Members to get the Bill through Committee and to get these crucial and necessary measures into law.
As many hon. Members have said, when done well, supported housing provides a safety net for people who require help to live independently or need help in transitioning to mainstream housing. It is also a crucial factor in reducing rough sleeping and homelessness, and in reducing pressure on health and social care services. It is a better alternative to institutional care and prevents poor outcomes such as homelessness and delays in leaving hospital.
The many good supported housing providers must not be lumped in with the rogue landlords that I and many hon. Members want out of the sector. But, unfortunately, as we have heard, there are some rogue landlords, and it is completely unacceptable for their abuse of the supported housing system to continue. To them, I say that their time is up.
Through the Bill and subsequent regulations, we intend to drive out substandard providers. It is intolerable that certain landlords are trying to profit at the expense of vulnerable people. The Government’s priority will always be to protect the welfare of its most vulnerable citizens. We will prevent disreputable landlords from exploiting people who find themselves living in accommodation that is poor and, at times, of dangerous quality and lacking in safety and security. People in supported housing have a right to be treated with decency and respect, to have their needs properly assessed and to receive proper, tailored support. We will ensure that residents of supported housing can be confident in the standard of both their accommodations and their support. Driving up standards is crucial, given the wider repercussions that the worst of the shoddy accommodation can have both on the individuals living there and on surrounding communities.
As we have heard, neighbourhoods that experience high concentrations of poorly managed supported housing can become a magnet for antisocial behaviour and criminal activity. On Tuesday, I visited Coventry and met senior council officers and councillors. I heard about the wide range of supported housing, from the very good to the unacceptable, and about how they are working to help substandard providers to get up to scratch. Coventry will be one of the recipients of our supported housing investment programme. In Coventry, I also had the opportunity to meet people who had previously experienced homelessness but have benefited from good quality supported housing services, which have helped them to move on with their lives. I was struck by the impact that that has made on an individual level. It underlined the significant difference that this type of housing can make to people’s lives.
Let us not forget that the financial benefit gained by substandard providers rests on exploitation of the rules on housing benefit, as the hon. Member for Birmingham, Ladywood explained. Ministers at the Department for Work and Pensions agree that it is totally unacceptable for large amounts of public money to be paid out in housing benefit to rogue landlords who are gaming the system and doing little or nothing to support vulnerable residents. We must do all we can to ensure that vulnerable residents get the support that they need and that standards are driven up. We must also ensure that better value for money is delivered for taxpayers.
A key issue is how we can align measures in the Bill with any changes to housing benefit regulations, to stop those who are gaming the system being able to do so. At the same time, we will ensure that the measures set out in the Bill are implemented and deployed proportionately. It is crucial that we avoid unintended consequences in the sector, and also avoid placing unnecessary burdens on the many good providers out there.
The Government have already acted to tackle rogue landlords. In October 2020, we published the national statement of expectations, setting out the Government’s vision for the planning, commissioning, and delivering of good quality accommodation in supported housing. In the same month, we launched the supported housing pilots. Between October 2020 and September 2021, we funded five local authorities with a total of £5.4 million to explore ways of improving quality and value for money in the supported housing sector, particularly in exempt accommodation.
We have continued to build on the success of the pilots. Last week we announced that we are funding 26 local authorities, including the five that took part in the pilots, through a supported housing improvement programme, awarding £20 million to some areas of the country most affected by problems with supported housing. That programme sends a clear message to unscrupulous providers that the Government will not tolerate poor-quality support, the exploitation of vulnerable people, or abuse of the supported housing system. This Government are sending a clear message: time is up for rogue landlords who take money from the taxpayer while exploiting vulnerable people.
Despite the success of the pilots, and enhancing the ability of other local authorities to begin to tackle this issue, we recognised that more is needed to drive out the unscrupulous profiteers. That is why in March this year we announced our intention to bring in standards for supported housing, including powers for local authorities to manage supported housing in their area, and to seek to make changes to housing benefit regulations.
Mr Mohindra
I thank the Minister for the reassurances she has given the House. Does she agree that this may not be a silver bullet, and is she confident that she will continue to keep an eye on this brief, in case there are unintended consequences or, more importantly, other things we may need to do in the future to ensure that this bad behaviour is stamped out?
Felicity Buchan
My hon. Friend makes an important point. We must continue to monitor this sector. Enforcement is important, as is consultation. We must get the regulations right because we want to target unscrupulous landlords, not the good providers. We had a written statement at the beginning of the year, and it very fortuitous that my hon. Friend the Member for Harrow East chose this issue for his private Member’s Bill. It is an excellent opportunity to take forward the necessary legislation to make this happen, deliver on that commitment, and build on the action that the Government have already taken. Once the measures set out in the Bill are implemented, there will for the first time be a set of national supported housing standards, issued by the Government, and a licensing scheme that local authorities can deploy, so that all residents and providers of supported housing know what good-quality accommodation and support is, giving confidence to residents and landlords alike.
Helping to oversee the implementation of the Bill will be the supported housing advisory panel, and I welcome this provision. The panel will bring together key players in the sector to advise and work in partnership with the Government. The board will be able to provide challenge, help with direction and hold us to account as we move to deliver the measures in the Bill. As many Members have alluded to, it will also help us to build a body of data and information at local and national level, which I agree is of the utmost import.
The Bill will require all local authorities in England to put in place supported housing strategies, which will help them to better understand their local supported housing market. The supported housing oversight pilots demonstrated that strategic planning is a valuable tool that enables local authorities to assess the type and stock of provision in their area, estimate the need for supported housing and look to future requirements.
While strategic planning is an essential tool that will provide greater intelligence and data on supported housing, it will not eradicate the problems with rogue providers. Hard enforcement is required, and that is where the licensing regime suggested in the Bill comes in. My hon. Friend the Member for Harrow East has been clear—and I completely agree—that, where licensing requirements are not met, penalties should apply. I am pleased to see that the powers in the Bill allow us to make provision for that in the licensing regulations.
The Bill enables regulations to be made so that local authorities will require providers of supported housing to obtain a licence to operate in their area. Providers will need to meet conditions on the adequacy and suitability of accommodation and on the support services set out in national standards, and they will also need to pass a fit and proper person test, which the hon. Member for Birmingham, Ladywood raised.
The Government believe that action to stop the problems in supported housing needs to be taken as quickly as possible. We will launch a formal consultation on measures in the Bill as quickly as possible following Royal Assent. I commit today at the Dispatch Box to laying regulations for the licensing regime within 18 months of the Bill being passed.
Providers will need to demonstrate that they are meeting national supported housing standards. Those standards will look at the quality of accommodation and the quality of care, support or supervision that people are receiving. I am pleased to say that my officials have already been working closely with the sector on what those standards might include, but it will be a complex task, and we will consult widely to ensure we get it right and do not place undue burdens on providers that are already providing excellent services to residents.
Mr Mohindra
I thank the Minister for that excellent update. After that consultation with the industry, will she commit to share with the relevant local authorities best practice in other parts of the country, so that they do not need to reinvent the wheel?
Felicity Buchan
That is a very important point. We will have national standards. We will also have best practice guidelines, so that local authorities throughout the country can adopt those practices.
How people become residents of supported housing is an important aspect of this work. It is unacceptable that disreputable providers are advertising on Gumtree and Twitter and taking advantage of vulnerable people who are experiencing a crisis in their lives for their own profit. Referral pathways into supported housing are a very important issue and one we will look at as part of the introduction of the Bill.
We will, of course, be consulting on what national supported housing standards might include and how the licensing regime will work. We will ensure that people living in supported housing have the opportunity to have their views heard, as well as providers of supported housing, local authorities and other stakeholders. I know there is concern in the sector around the types of supported housing scheme that licensing requirements will apply to. To that end, we will be able to make provision for exemptions from the requirement to apply for a licence. The Government will take great care with that and, where we are convinced that other satisfactory oversight arrangements already exist and that the risk of exemptions being exploited is low, we will set out which specific types of housing are exempt.
Many Members discussed housing benefit. As I said, DWP Ministers are also keen to see an end to this exploitation, and we welcome the fact that the Bill makes it clear that the interaction between licensing and housing benefit regulations will be carefully considered as details of the licensing regime are developed. As with the other licensing requirements, we will consult fully on that.
Many Government Members talked about the need to improve national data. The Government already have research under way to provide an up-to-date estimate of the size and cost of the supported housing sector across Great Britain, as well as estimates of future demand. In addition, DWP has made changes to the way local authorities provide housing benefit data on supported housing claims, which will ensure that over time we have better data on exempt accommodation, which relates to the point raised by the hon. Member for Croydon Central.
I want to spend a few minutes talking about the intentionally homeless provision in the Bill. Members will be aware that my hon. Friend the Member for Harrow East brought forward the Homelessness Reduction Act 2017. That important legislation placed a duty on local authorities to try to prevent and relieve a person’s homelessness. I am sure that Members on both sides of the House will agree that should vulnerable people find themselves in poor quality supported housing, they should not be afraid to challenge their landlord. Where this leads to adverse consequences, people in that position should be able to look to their local authority for help. The Bill also sets out that a person will not be treated as intentionally homeless if they are leaving supported exempt accommodation because of the poor quality of the accommodation or the poor quality of the support, and that the accommodation and support
“does not meet National Supported Housing Standards.”
This will ensure that residents feel confident in leaving poor quality supported housing provision and challenging those landlords who are not providing the accommodation and support that we expect.
Before I conclude, I want to pick up on a few points that were raised by Members. My opposite number, the shadow Minister, the hon. Member for Greenwich and Woolwich (Matthew Pennycook) asked my hon. Friend the Member for Harrow East why there were “mays” as opposed to “musts” in the Bill. I just want to address that. I want to be clear that we are required to consult on the regulations. We do need to make a progress report within 12 months. As I have said at the Dispatch Box, I am today making a firm commitment to lay the regulations within 18 months. I believe that the hon. Member for Greenwich and Woolwich alluded specifically to clause 5 being drafted as “may”, but that is because it deals with the consultation, so we want to allow for flexibility to form the most appropriate regulations.
The hon. Member for Birmingham, Ladywood talked about the necessity for a fit and proper person clause. As I have already mentioned, there is one in clause 5(2). I reassure her that the Department for Work and Pensions has committed to defining “care,” “support” and “supervision” to improve the quality of that care, support and supervision, and to ensure that taxpayers get value for money.
My hon. Friend the Member for Runnymede and Weybridge talked about the importance of having a link with integrated care systems. I assure him that my officials are working closely with the Department of Health and Social Care, which will be very much involved in developing the advisory panel and the strategies and regulations we put in place. My hon. Friend the Member for Bosworth also mentioned that, and I see him nodding.
My hon. Friend the Member for Heywood and Middleton asked about money being made available to local authorities. I reassure him that there will be an assessment under the new burdens doctrine. Local authorities will be compensated if it is determined that they have new burdens. I also reassure him that the licensing regime will be a fee-paying scheme, so its ongoing operation should be self-funding.
A number of Members talked about the importance of national consistency. As I said, we will have a national standard and there will be guidance. A few Members raised the possibility of a national regulator, and the advisory panel will clearly have it within its remit that it can advise the Secretary of State.
This is a very important Bill, and it is only too clear that poor-quality supported housing is having a very real and harmful impact on certain vulnerable people in parts of the country. I express my gratitude to the Levelling Up, Housing and Communities Committee for its report and recommendations, to which the Government will formally respond in due course.
I said at the outset that the Government fully support the Bill introduced by my hon. Friend the Member for Harrow East, and I repeat our support here. We must work together to drive up standards and to make it clear that time is up for rogue providers who take public money while failing vulnerable people.
Private Rented Sector White Paper
Felicity Buchan Excerpts(1 year, 6 months ago)
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The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Felicity Buchan)
I thank the hon. Member for Brighton, Kemptown (Lloyd Russell-Moyle), my hon. Friend the Member for Dover (Mrs Elphicke) and the Backbench Business Committee for securing this important debate on the proposals in our White Paper. I thank Members who have spoken for their considered and constructive tone and for speaking powerfully on behalf of their constituents. I also thank hon. Members for their warm words about my hon. Friend the Member for Walsall North (Eddie Hughes), who worked so hard on the White Paper. I pay tribute to my right hon. Friend the Member for Pendle (Andrew Stephenson), who took that work forward.
The Government are determined to deliver a new deal for tenants and landlords in the private rented sector. Hon. Members have made a number of points about reform and I hope to address as many of them as possible in the time I have. If I do not reach some of the points, I am happy to sit down with hon. Members on a one-to-one basis.
I want to make a couple of observations about the sector as a whole. As Members know, the private rented sector has grown significantly in recent decades. It has doubled in size since the early 2000s, with landlords and tenants becoming increasingly diverse. The sector provides a home for 11 million people—19% of all households. At least 1.3 million of those are families with children. However, the sector is also the least secure and has some of the lowest-quality housing. Too often, the current system does not work for tenants, or for the many good landlords operating in the sector.
Everyone in our society deserves to live somewhere decent, warm, safe and secure. The Government are determined to make that vision a reality.
Hon. Members will know that the White Paper sets out a 12-point action plan, and I note that it has received support from Members on both sides of the House. The changes that it sets out amount to a significant shake-up of private renting. We know how important it is to get it right. We are grateful to our partners across the housing sector who have worked closely with us on developing the reforms. We will continue to consult them closely as we move the process forward.
Several hon. Members raised the issue of the poor quality of some privately rented homes. The majority of landlords and agents treat their tenants fairly and provide good-quality, safe homes, but that is not always the case. Too many of the 4.4 million households who rent privately live in poor conditions and pay a large proportion of their income to do so. Poor-quality housing undermines renters’ health and wellbeing. It can affect their educational attainment and it reduces pride in local areas.
I am proud of the action that the Government have already taken to put things right. We have strengthened local authorities’ enforcement powers by introducing fines of up to £30,000, extending rent repayment orders and introducing banning orders for the most serious and prolific offenders. We have introduced new regulations, which require landlords to install smoke and carbon monoxide detectors and ensure that the electrical installations in their properties are safe. We are concluding our overhaul of the housing, health and safety rating system, which is the tool used to assess hazardous conditions in rented homes. That will make it more accessible to tenants and landlords and allow more efficient enforcement.
The Homes (Fitness for Human Habitation) Act 2018 empowered all tenants—private and social—for the first time to take their own action against landlords who let unfit properties. As a result, conditions have improved over the past 10 years, but we know that there is more to be done. Alongside this we have consulted on introducing a legally binding decent homes standard in the private rented sector. That consultation closed on 14 October and we are currently reviewing responses.
Many hon. Members talked about tenancy reform and, clearly, that is critical. Our reforms will provide tenants with security. They will also ensure that good landlords are still able to gain possession when necessary.
Hon. Members have rightly mentioned the insecurity caused by section 21 no-fault evictions. It is not right that a landlord can ask a tenant to leave without giving a reason. The Government are clear that they want to support the majority of landlords who act responsibly, but it is not right that tenants live in fear that their lives may be uprooted at the whim of the minority of rogue landlords. That is why, as we have set out in our manifesto and confirmed in this House, the Government have committed to abolishing section 21 of the Housing Act 1988 and giving millions of private renters a secure home.
At the same time, the White Paper proposes to simplify complex tenancy structures. It will move all tenants who currently have an “assured” or “assured shorthold” tenancy on to a single system of periodic tenancies. Periodic tenancies will allow either party to end the tenancy when they need to. That will enable tenants to leave poor-quality properties without remaining liable for the rent, or to move more easily when their circumstances change—for example, to take up a new job opportunity. Landlords will always have to provide a specific reason for ending a tenancy.
Good landlords play a vital role in providing homes for millions of people across the country. We want to reassure them that the new system will continue to be a stable market for landlords to invest and remain in. No one will win if our reforms do not support landlords as well as tenants. It is only right that landlords should be able to get their properties back when their circumstances change, or when tenants break the rules. A number of hon. Members mentioned the real issues attached to antisocial behaviour. We will reform grounds of possession so that they are comprehensive, fair and efficient, and we will streamline the possession process, removing unnecessary restrictions on landlords seeking to recover their property.
Alongside that, we will continue to listen to landlords and students, as mentioned by a number of hon. Members —landlords provide much-needed accommodation to thousands of students every year—to ensure that the sector continues to work for those in higher education, and I will continue to have those conversations.
I am sure that hon. Members will agree that going to court should be a last resort, when all other avenues have been exhausted. But we know that sometimes it is unavoidable, and that court proceedings can be costly and time consuming for landlords. That is why we are working with the Ministry of Justice and HM Courts and Tribunals Service to streamline the process and ensure that the most serious cases are prioritised. I just checked on the fax point and can assure Members that people can email or make paper submissions. Alongside that, we are reviewing the bailiff process. That is currently a big source of frustration and delay.
Many Members have mentioned issues surrounding the cost of living—
Lloyd Russell-Moyle
Will the Minister give way on the legal question?
Lloyd Russell-Moyle
Does the Minister not recognise that the lack of legal aid is a huge problem for people in the private rented sector? In the last Session, I introduced a Bill that would have cost the Government nothing but provided £20 million in legal aid and early legal support for private renters by taking the interest from the £2 billion- worth of deposits held in this country and putting it into a special, reserved fund for legal aid for renters. Would she look at that measure, so that the court process is supported?
Felicity Buchan
The hon. Gentleman will recognise that legal aid does not fall within my remit, but I am happy to meet him and have a conversation.
We empathise strongly with those affected by the cost of living issues. That is why the Government have provided over £37 billion in cost of living support this year to those who need it the most. We have given unprecedented support to protect households from high energy prices. For tenants who are unable to afford their rental payments, there is a range of potential support available through the welfare system.
My hon. Friend the Member for North Devon (Selaine Saxby) and the hon. Member for York Central (Rachael Maskell) both raised the issue of second homes and holiday lets. I am aware of the pressures in their constituencies. The White Paper contains a proposal on that issue, and I point both hon. Ladies to the Department for Digital, Culture, Media and Sport’s call for evidence on the topic.
Rachael Maskell
The DCMS call for evidence has closed, but I have a private Member’s Bill before the House. Will the Minister’s Department work with me to ensure that we can regulate short-term holiday lets?
Felicity Buchan
Specifically, that falls under the DCMS, but I am happy to have a conversation with the hon. Lady.
Selaine Saxby
The DCMS consultation took months to see the light of day, and my local council submitted pages of evidence. I recognise that the issue falls within the remit of the DCMS, but one of the reasons constantly given for the inability to tackle it is that it lies with a different Department, either LUHC or DCMS. If anything can be done to bring the Departments together to enable progress to be made, we would be most grateful.
Felicity Buchan
I hear my hon. and good Friend, and I will do everything I can to facilitate that.
I hope that all Members present today recognise that this Government are committed to reforming the private rented sector in a fair and balanced way, abolishing no-fault section 21 evictions and strengthening and clarifying landlords’ rights when seeking possession.
Felicity Buchan
I am sorry, but I have been told that I need to conclude.
The Government are committed to giving tenants the security and peace of mind they need to settle down with confidence and make their house a home. We are committed to empowering tenants so that they can make informed choices and raise concerns, and to supporting responsible landlords. As I said at the outset, we stand by our manifesto commitments to abolish no-fault evictions and to ensure that landlords have rights to repossess when that is required. We published the White Paper in June and we are discussing it with interested parties. The consultation on the decent home standard closed on 14 October, and we are reviewing the responses. We will publish the next steps in this extremely important sector in due course.
Sharing Economy: Short-term Letting
Felicity Buchan Excerpts(1 year, 10 months ago)
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Nickie Aiken (Cities of London and Westminster) (Con)
I beg to move,
That this House has considered short-term letting and the sharing economy.
I have called this debate to once again draw attention to the negative impact on our neighbourhoods up and down the country caused by the abuse of short-term lettings. Short-term lettings are when property is let on a nightly or weekly basis usually for leisure and tourism purposes. We are seeing them pop up on a variety of platforms, including Airbnb, Booking.com, Tripadvisor and Expedia. Since the Deregulation Act 2015, we have seen an increasing number of properties, which would otherwise have been rented out on a long-term basis, being turned into basically holiday accommodation. Between 2015 and 2020, the number of Airbnb listings in London alone grew by 378%. Research by London Councils found that by 2019, there were more than 73,000 listings for short-term lets in London across six of the largest online letting platforms. That is equivalent to one in every 50 homes in the capital.
Felicity Buchan (Kensington) (Con)
Does my hon. Friend agree that one issue with short-term lets is that they take housing stock out of the market? I have the neighbouring constituency of Kensington, and in the tourist areas, particularly around the South Kensington museums, there are streets that are almost exclusively Airbnbs. Many of those are one or two-bedroom properties, and that is aggravating the housing crisis because young people who would typically buy those properties simply cannot get access to them.
Nickie Aiken
My hon. Friend is absolutely right. With the explosion in the number of short-term lettings, a whole host of problems associated with such lettings have become more widespread across our neighbourhoods. I shall highlight a number of the issues we are seeing, which include increased pressure on housing stock, leading to higher property and rent prices—that is what my hon. Friend referred to. They also include a rise in associated antisocial behaviour, noise complaints and dumped rubbish, and an increasingly unfair playing field in the accommodation sector, which is placing more and more pressure on hotels and private bed-and-breakfast businesses.
Since coming into force, the Deregulation Act 2015 introduced several changes that were designed to free businesses from the burdens caused by regulation and existing laws, including relaxing planning permission in London for short-term lets. When the Bill was going through Parliament, Westminster City Council predicted that homes would be, en masse, turned into lettings for tourists. We knew that those lettings would soon basically be turned into mini hotels, without any of the oversight or regulation that genuine hotels have to adhere to. That is why it was a relief in some contexts to see short-term lettings in London limited to just 90 nights per year under the Deregulation Act, following a sustained lobbying campaign by Westminster City Council. That was not enough, however, and sadly our worst fears have come to fruition.
Without the right tools to enforce the Act our biggest concerns have become a reality for many local people, and many landlords involved in short-term lettings are ignoring the law. Research from 2019 estimated that 23% of 11,200 Airbnb listings in London alone were occupied for more than 90 nights in that year. With the number of short-term lettings skyrocketing, it is clear that we need urgently to get a grip of the situation, because it is becoming unsustainable.
This is obviously not just a London issue. As my hon. Friend the Member for North Devon (Selaine Saxby) recently highlighted, 4,000 homes have come out of private rent in Devon since 2016, and 11,000 have joined the short-term holiday listings. I know from speaking to colleagues across the country that we are seeing that trend up and down the United Kingdom, particularly in places such as Cumbria and the south-west. This issue affects our whole country, and although problems such as strain on housing availability and the cost to local authorities may be the same nationwide, the diverse nature of the issue means that there will be no one-size-fits-all approach to resolving the problem. What we need, in my humble opinion, is for local authorities to be given the powers to do what they feel is right for their unique areas. For example, here in Westminster we need a licensing scheme much like those seen in other countries. Such schemes are generally set at a local level and ensure that standards are adhered to and that the market is not overwhelmed.
We see key examples around the world. In Lisbon, the city council has implemented containment zones that limit the amount of short-term let accommodation within them. In Barcelona, landlords are required to have their properties inspected and approved before they can be let out. Closer to home, the Scottish Government have legislated for local authorities to introduce a short-term lets licensing scheme by October. It will be interesting to see how that works when it is implemented, and how successful it is.
While such schemes differ from one another, they all suit their local needs, seeking to balance the sharing economy with the rights and amenity of local residents. That is what we should strive for across the UK, balancing tourism with the desire and need of locals to have a comfortable and quiet neighbourhood.
We also see examples around the world where that has been taken further. In Atlanta in the United States, a tight licensing regime has been introduced with strict conditions. For example, hosts in that city have to hold a permit and pay an annual $150 fee. They face a $500 fine if a tenant violates city rules. They may have a maximum of two properties, one of which must be the host’s permanent residence. That is probably what we need for London.
Across the world, we see that there is a full spectrum of examples and solutions, and it is about finding what works best in a local authority area. As it stands, the spirit of the Deregulation Act is not being met. We are seeing not the rise of individuals opening their spare rooms or their homes while they are on holiday, as the Government had hoped would happen under the Act, but a gradual increase in commercial businesses snatching up properties for the short-term letting market. Here in Westminster, 64% of hosts on Airbnb have at least two listings.
Nickie Aiken
I do not often agree with the hon. Gentleman, but I certainly do on this.
We are aware that, in Westminster and across central London, landlords can often skirt around the 90-night rule by posting their property on multiple sites or re-registering it in a location a few metres away. In turn, I am deeply worried that we are witnessing a hollowing out of central London, as the hon. Member for Hammersmith (Andy Slaughter) referred to regarding his local area, as properties convert all too easily from homes to holiday lets.
At the start of 2022, the number of properties listed to rent across London was 35% lower than in pre-pandemic times. As I am sure hon. Members will appreciate, the housing market in my constituency and across the capital is already squeezed on both affordability and availability. We currently have over 4,000 households on the Westminster social housing waiting list in the same area that has 7,230 available properties on Airbnb. The average house price in the two cities has risen by £32,000 a year over the past 25 years. The most troubling issue is that, according to SpareRoom, average rents have now risen in the capital by 13% in the last year alone. That is why I find it increasingly frustrating that, while I can easily find plenty of examples of hosts with 50 or even 100 properties available, I cannot find a home to rent on a long-term basis in my constituency in the same areas.
The dramatic increase in the number of properties converting to the holiday accommodation market and away from the private rented sector is ensuring that people are forced out of central London. It is getting so bad that I fear the only realistic possibility of the young finding a property in central London is by playing Monopoly. I do not mean to be flippant, but it is getting that bad. For those lucky enough to be able to find a property, there is an increasing likelihood that they will still find themselves living close to short-term letting properties, no matter where they are. As I am sure it is for many of my colleagues, that is reflected in my mailbag by constituents who find themselves having to live next door to short-term letting properties.
Felicity Buchan
Does my hon. Friend agree that there are other attendant problems with short-term lets, such as antisocial behaviour, properties being taken over essentially for large parties, rubbish being put out on the wrong day and littering the street, and, sometimes, a lack of respect for the neighbourhood?
Nickie Aiken
My hon. Friend is absolutely right. One of my constituents from Pimlico who wrote to me recently shares that view:
“There has repeatedly been antisocial behaviour in the Airbnb-type flats in Tachbrook Street. The residents have no interest in the wellbeing of their neighbours. The flats are without doubt let throughout the year and the 90-day rule is completely ignored.”
Post-pandemic complaints have increased in my constituency, with noise, rowdy parties, serious overcrowding, dumped rubbish and even sex work occurring within nightly let properties. From Mayfair to Marylebone and from Hyde Park to Covent Garden, no neighbourhood in Westminster is now free from the short-term let blight.
On the ground, we have seen some pretty clear signals that short-term lets are increasingly causing social damage to our neighbourhoods. A YouGov study from 2019 found that 40% of Londoners felt that such accommodation was having a negative impact on the local sense of community. Worryingly, it also showed that one in five Londoners, when asked, felt that short-term lets had had a negative impact on safety in their local area. If these properties were rented out for just a few days a year, this issue might be manageable. However, as mentioned earlier, we know that is not the case. Local authorities lack the tools necessary to enforce the 90-night rule. As such, complaints are rising and communities are suffering.
On antisocial behaviour, yes, the police and local authorities have powers to tackle it with antisocial behaviour and noise orders, but we do not always have the information needed to identify those involved. Of course, it is very hard for us to make general statements about what we would or would not think was a good idea, because this is a complex issue, but as I said earlier it is about flexibility. It is about giving local authorities the tools they need to protect their local areas. We have to be practical when it comes to enforcement measures. Right now, what continues to frustrate me, and I know thousands of my constituents, including councillors and officials in my local council, is that enforcement is virtually impossible, particularly when we do not know who is undertaking the antisocial behaviour. The lack of data makes it extremely hard for local authorities to identify them and then begin enforcement action.
We need a change in the law to allow local authorities to fine landlords of properties that violate the rules, such as those on dumping rubbish. At the moment, responsibility lies with the tenant, not the landlord, even though the tenant will be long gone after having rented the property for a couple of nights—they have dumped the rubbish and they have gone. What we need is exactly what the former leader of Westminster City Council, Councillor Rachael Robathan, called for in response to more than 2,000 breaches of short-term letting rules—namely, to allow councils to go after the landlord rather than the short-term letter. That would help resolve the issue.
The issue of tax compliance is also of concern. As the home sharing phenomenon becomes more mainstream, an important taxation revenue stream needs to be captured. As it stands, it is possible for landlords to hide their activities from Her Majesty’s Revenue and Customs and to perhaps not tell the truth on their self-assessment forms. If local authorities were able to collect data on what properties are being let out on a short-term basis, HMRC could access that data and ensure that no one was able to avoid paying tax on any money raised.
In 2018, the Government issued a call for evidence on the role of online platforms in ensuring tax compliance by their users, but there do not appear to have been any major developments since then. Ensuring proper compliance would go some way to levelling up the playing field with other parts of the tourism economy. As highlighted by UK Hospitality:
“Between the short-term lets, hotel and B&B sectors, a regulatory mismatch has also occurred in terms of health and safety and taxation.”
I appreciate that there is a degree of self-regulation in the industry, but that is not enough. While hotels and B&B businesses must go through all sorts of checks and regulations to ensure the safety and wellbeing of their guests, the same oversight does not exist for short-term letting. For example, while Airbnb insists on things such as insurance indemnity, proper fire precautions and safety certificates for gas and electricity, I have met Airbnb hosts who have not once been asked by a platform to prove that they meet those requirements. If we were able to collect tax receipts from short-term lets, that could and should help in the enforcement of laws. It is not just about tax collection; we also need to make sure that landlords are on the same playing field as bona fide hotels and B&B businesses.
I want to make it very clear that I am not against short-term letting. I absolutely recognise the many positives. As an Airbnb user in the past, I have benefited from being able to rent a home while on holiday. Short-term letting has provided and does provide an innovative and imaginative competition to the accommodation industry. However, the bottom line is that those positive impacts are paired with negative impacts, including lower health and safety standards; unfair competition for other hospitality providers; general economic issues such as mixed tax revenues and less availability of long-term rentals; increased rents and house prices; and pricing ordinary local people out of their area’s housing and rental markets. That is happening not just in central London but across the UK. In many cases, neighbourhoods have changed, with issues including antisocial behaviour, overcrowding of properties and transient communities.
A sustainable approach, hopefully in the form of evidence-based, data-driven regulation and policy making, should address some of those issues. As I said earlier, there is no easy fix, no one-size-fits-all approach, but there are certainly stepping stones that we need to introduce. I hope that the Minister will pay serious attention not just to what I have said but, more importantly, to what we will hear later in this debate from Members of all political parties.
Grenfell Tower: Fifth Anniversary
Felicity Buchan Excerpts(1 year, 10 months ago)
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Felicity Buchan (Kensington) (Con)
The last few days have been very intense, emotional and difficult for my constituents as we remember the 72 men, women and children who lost their lives so horrifically and so needlessly. You will never be forgotten.
It has been my great privilege over the course of the last few years to get to know many of the bereaved and survivors. They have borne so much with so much dignity. It was humbling to spend time with them at Westminster Abbey on the anniversary on Tuesday, and a few days before that at Al-Manaar mosque in north Kensington in my constituency. Their individual accounts of what happened to them that evening are truly harrowing. I do not think that any of us can imagine the pain, anguish and suffering that people went through that night, or indeed the pain and anguish that relatives, friends and the community continue to suffer from.
On the morning of the anniversary, I went to Grenfell Tower. It was 7 o’clock in the morning, but there were already students from the neighbouring Kensington Aldridge Academy there, paying their respects. KAA, as it is known, lost five students in the tragedy. In total, 18 children died, their lives cut horrifically short.
We will never be able to right the wrongs of the past, but we can ensure that there is a lasting legacy from Grenfell. I am very clear that that legacy must be that everyone has a right to be safe in their homes, and that the voices of all residents and all communities need to be heard.
Last week we had a debate on building safety and social housing. I will not repeat the remarks that I made then, but I did say that I had been very frustrated over the last five years at the speed at which many of the changes were being implemented. There is no question but that we have made progress. We have enacted the Building Safety Act 2022 and the Fire Safety Act 2021, and lots of developers have said that they will contribute towards the cost of remediation. However, there is a lot more to be done, and it needs to be done quickly.
One of the first things that I did when I got to this place was to give a speech on Grenfell. It was January 2020, following my election in December 2019. I called then for all the recommendations of the Grenfell inquiry to be implemented, and to be implemented at speed, and I reiterate that call today.
What we collectively need to do is to ensure that a tragedy of this kind can never be allowed to happen again, and I am determined that I will do what I can to ensure that such a tragedy does not happen again.
Social Housing and Building Safety
Felicity Buchan Excerpts(1 year, 10 months ago)
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Felicity Buchan (Kensington) (Con)
Tuesday is the five-year anniversary of the Grenfell tragedy and I start by paying tribute to my constituents—the 72 men, women and children who lost their lives in such appalling circumstances. I also pay tribute to the bereaved, the survivors, the residents and the broader community in north Kensington and Kensington, who have borne so much with so much dignity. I welcome the families and residents to the Gallery; it is an honour to have them here.
We need a lasting legacy to come out of the Grenfell fire tragedy, which must be that everyone has a right to be safe in their homes, that all residents’ and tenants’ voices need to be heard, and that communities need to be involved in decision making when it comes to their communities. In the two and a half years since I was elected, I have said in this Chamber on a number of occasions that I have been frustrated by the length of time it has taken for some of the changes to building, fire safety and cladding remediation to be implemented. I say again that it is incumbent on all of us to have a sense of urgency when we go about this task.
I am glad to say that we have made substantial progress in the last few months. In April, we enacted the Building Safety Act 2022, which is a landmark piece of legislation. As part of that Act, we extended to intermediate buildings the statutory protection for leaseholders such that they will not have to pay for cladding remediation, which I welcome. I also welcome the establishment of a regulator for construction products. I have been shocked and horrified by some of the revelations that have come out of the Grenfell inquiry about the building products sector, so I am glad that that regulator has been put in place.
I thank the Secretary of State for his efforts with building developers and owners. It is good that 45 of the largest building developers have signed up to the new regime to provide at least £2 billion of funding for buildings in whose development they were involved. It is also positive that we now have the building safety levy, which will raise £3 billion-plus for buildings that have been orphaned. That is all good progress.
My constituents and I were pleased to see the Social Housing (Regulation) Bill in the Queen’s Speech, for which activists in my constituency have been calling for a long time. It is very important that social housing tenants’ voices are heard and respected, and that the regulator is given tougher enforcement powers. I am glad that there can be unlimited fines and that, for the big social housing providers, there will be regular inspections along the lines of Ofsted inspections.
We are making progress, but there is more to be done. In my constituency, there are buildings where the remediation is still in progress. We need a sense of urgency in addressing every single building in the country that has fire safety defects. Every building needs to be properly assessed. It is important that we are proportionate in that fire risk assessment—it needs to be accurate and to reflect the real risks—but once we have it, we need to get on with the job of remediating the defects. I understand that, in London, approximately 1,100 buildings would require simultaneous evacuation, and we need to get on with the job of remediating them.
It is also important to address the broader picture—not only the remediation, but the other attendant issues. I talked to a constituent this morning who lives in a building that does not require remediation, but the insurance companies believe there is sufficient risk for them to have put up the insurance premiums multiple times. That broader context needs to be looked at. We need to ensure that the recommendations of the first phase of the Grenfell inquiry are implemented. I understand that 21 of the 46 have been, but we need to ensure that the rest are implemented urgently.
We have made substantial progress, particularly in the last few months, but there is a lot more to be done. This needs to be a collective endeavour on both sides of the House, because we owe it to the Grenfell families and the Grenfell community that such a tragedy never be allowed to happen again. We as the legislators need to ensure that.
Oral Answers to Questions
Felicity Buchan Excerpts(1 year, 11 months ago)
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Mr Speaker
Secretary of State, don’t spoil a good day. You are having a good day so far, don’t ruin it.
Felicity Buchan (Kensington) (Con)
The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Eddie Hughes)
My hon. Friend is right to say that the social housing Bill will help social housing tenants in Kensington to hold their landlords to account, but we are not waiting for the new legislation; we are driving the “Make Things Right” campaign to make sure that tenants understand—[Interruption.] I am disappointed that Opposition Members think it is funny, as I think it is completely appropriate that tenants are able to hold their landlords to account. We are making sure that they understand how to do so and how to escalate complaints to the housing ombudsman should that be necessary.
Levelling Up
Felicity Buchan Excerpts(2 years, 3 months ago)
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Michael Gove
I do not think Wales loses out as a result of HS2. I think north Wales in particular benefits significantly because of increased connectivity. However, I respectfully say to the hon. Gentleman that the Labour party needs to sort out its position on HS2. When the Leader of the Opposition was campaigning to be elected in Camden, he said that one of top priorities was to oppose HS2, and then when we brought forward proposals to extend HS2, he criticised them. There is an inconsistency in the Labour party’s position on infrastructure investment. I know that the hon. Gentleman’s heart is in the right place, but the Labour party’s HS2 policy currently is not.
Felicity Buchan (Kensington) (Con)
I represent a London constituency with two of the most deprived wards in the entire country. Does my right hon. Friend agree that levelling up is also about deprived areas in our inner cities? Will he back my campaign for step-free access at Ladbroke Grove tube station?
Michael Gove
Absolutely. My hon. Friend is right. One of the things that the White Paper brings out in a look at the borough of Kensington is the fact that it contains both some of the wealthiest areas in the country and some of the poorest. Without wanting to stray into another important area—although it is important to refer to it—the suffering of Grenfell families and the community around them is a reminder of our need to ensure that opportunity and security are extended to those who have suffered in the past, and they have had no better champion in this House than my hon. Friend.
Building Safety Bill
Felicity Buchan ExcerptsWednesday 19th January 2022
(2 years, 3 months ago)
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Patricia Gibson (North Ayrshire and Arran) (SNP)
Let me begin by echoing the sentiments expressed earlier. We must be mindful of all those who died tragically in the Grenfell fire, which prompted much of the work that we are debating today.
The majority of the Bill relates only to England or to England and Wales, so I will necessarily keep my remarks on behalf to the Scottish National party short. I am sure that that will be music to many ears in the Chamber.
We can all agree on the necessity and the importance of raising the standards of conduct of developers. House buyers need to have confidence in the safety and quality of their homes, which is why the Scottish Government support the principle of the new homes ombudsman scheme proposed in part 5 of the Bill. Housing is devolved to the Scottish Parliament, who could devise their own provisions for a Scottish system, but the benefits of having a single system to operate on a UK-wide basis are self-evident. However, it is also true to say that the scheme must fully meet the needs of Scotland, so this Bill ought to confer greater powers to Scottish Ministers, similar to those of the Secretary of State. It is essential for part 5 to acknowledge and respect the devolution settlement. The Secretary of State and, I am sure, the Minister will understand that SNP co-operation in relation to the new homes ombudsman scheme in no way diminishes our opposition to the form and intention of the United Kingdom Internal Market Act 2020.
It is fully expected that meaningful consultation will minimise the risk that the ombudsman scheme is contrary to the wishes and aspirations of the Scottish Government, so that homeowners in Scotland can benefit from it. If that turns out not to be the case, the Scottish Government have the option to withdraw from the scheme without contractual penalties and other repercussions. No one would wish to see that happen, and we need to be assured that the Minister and the Department will work, and continue to work, in a collaborative, consultative and collegiate way with the Scottish Government to deliver the scheme for Scotland.
In that spirit, I say to the Minister that given the confusion and delay over issues of cladding, nearly five years since the tragedy of Grenfell, we need a clear commitment that he will work constructively with the Scottish Government to provide clarity about consequential funding, so that the Scottish Government can plan their response appropriately. Will he tell us how much funding there will be, and when it will be delivered to Scotland?
I understand that the Secretary of State has committed himself to working with the Scottish Government on these matters—and no doubt the Minister has done so as well—but certainty is important. I am sure the Minister will understand that, so I am keen to hear what he has to say about the timing, levels and delivery of the funds that Scotland can expect.
Felicity Buchan (Kensington) (Con)
Let me begin by paying tribute to my constituents and the community of north Kensington.
I welcome the Bill, and I welcomed last week’s announcements that leaseholders in intermediate buildings would not have to pay for the remediation of cladding and other fire safety defects. I understand from the Minister that this will be incorporated in legislation in the other place. I want to stress how crucial it is that we get that right: it is critically important that we have robust legal protection for leaseholders. I welcome the statement that those on the Front Bench will listen to all good ideas, but it is important for us to be able to put this into practice quickly and effectively. I ask the Minister, as did my hon. Friend the Member for Harrow East (Bob Blackman) and the Chair of the Levelling Up, Housing and Communities Committee, the hon. Member for Sheffield South East (Mr Betts), to ensure that when the Bill comes back to this place, there is the opportunity for full debate and full scrutiny.
A number of Members said that some developers and freeholders have been behaving very badly, and I have such a situation in my constituency. Leaseholders in Collier House have paid for the remediation and the building is eligible for an existing fund, yet the building owner, outrageously, will not apply for those moneys. He does not want to get involved because the leaseholders have already paid. Such situations are clearly wrong in terms of how people should behave. I ask the Minister, as colleagues have, to ensure that we look to remedy situations where leaseholders have paid and take that into consideration. We need to find solutions, because they paid thinking that they were doing the right thing, and they may now be out of pocket as a result.
In conclusion, I very much welcome the direction of travel. However, it will be critically important to get the proposals right in the other place, and I ask that we have the opportunity for full scrutiny of what the other place decides.
Matt Rodda
I offer my support to the hon. Member for Kensington (Felicity Buchan). My thoughts are still with her community five years after the disaster. I am sure that the whole House would echo that support for her community.
I also thank the Minister for allowing me to intervene and for partially addressing my points. However, I want to expand on them, because they are very relevant to our discussions. The challenges for many people in my community will come from the sheer complexity of the situation. It is extremely stressful for many leaseholders and tenants, as Members across the House have said. It is very difficult for them to live in buildings with enormous problems. In many cases, they have suffered from these problems for some years, living in a period of prolonged stress and difficulty—both emotional and financial stress—and I look forward to working with the Minister and the Government to try to deal with this very serious problem.
I will highlight some of the practical difficulties that we need to tackle, as the shadow Minister, my hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook), mentioned. The great difficulty for many residents in my constituency and others is that the routes to redress are limited. In many cases, the legal route that the Minister outlined will be extremely difficult.
Perhaps I can describe the type of blocks that I am referring to. Many of the cases in Reading and in Woodley—a town next to the main town of Reading—involve low-rise blocks, so there has been a delay because they are lower- rise. There are problems from issues other than cladding, and many tenants and leaseholders live in these blocks. In one of the biggest neighbourhoods in Reading, there is a large area called Chatham Place, with a series of blocks and a series of different problems, including wooden cladding, balconies and a range of other things. There is also a combination of leaseholders and social housing tenants in the same block. There are multiple problems, and the Minister is right to explore the legal route to redress, but there are very serious challenges because of the difficulty of getting a group of people together to take action and of tracing the legal entities, companies, developers—in some cases, the developers are overseas—architects and the range of others involved. I ask the Minister to work with Opposition Members to look at the issue again and explore other avenues for toughening up the Bill. I look forward to the Lords amendments and I ask him to come back and look at this Bill again in more detail.
I wish to make two other points, also on behalf of local authorities and housing associations. The first point, which was raised with me by a local council that represents a town centre ward in Reading, was the difficulty, even now, for local authority officers to understand the exact guidance on different types of cladding. The issue of flammable insulation in walls was raised with me and there does not seem to be a clear answer on that. Secondly, in my area, housing associations were some of the first building owners to take action. However, as was rightly mentioned, these housing associations and their tenants could inadvertently be penalised. Please will the Minister look into that and provide reassurance?
Building Safety
Felicity Buchan Excerpts(2 years, 3 months ago)
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Michael Gove
I am very grateful to the hon. Lady for her points. We certainly will work with the devolved Governments. Of course, the residential property developer tax, like all UK-wide taxes, is distributed appropriately in line with the Barnett formula and other requirements, but we will certainly work with devolved Governments. I should say that I am very grateful to the Scottish Government, the Welsh Government and the Northern Ireland Executive for the work they have already done on this issue. We all have much to learn from one another.
Felicity Buchan (Kensington) (Con)
I welcome the direction of travel in the statement, specifically that leaseholders will not have to pay for cladding remediation. I am also glad that building product makers are now coming within the scope of Government, not only property developers. I have been personally shocked by some of the revelations coming from the Grenfell inquiry and I think that potentially we need to address the building products sector. May I stress to my right hon. Friend that speed and delivery here is critical? It is now four and a half years since the tragedy in my constituency. What is important is not only having a good plan, but executing it quickly and efficiently.
Michael Gove
My hon. Friend is absolutely right and I am very conscious of the need for speed. I quite agree. If we look at the behaviour of some of the cladding firms, the behaviour of people who work for Kingspan and Arconic, and the evidence presented to the Grenfell inquiry, we see that it is truly dreadful. The individuals concerned must take responsibility. She represents a constituency in which there are many, many people who are effectively trapped because of the failure of the property market to effectively address all these problems. In the interests of her constituents and so many more, and in particular in the interests of the Grenfell community and its fight for justice, I am very conscious of the need to move as fast as we possibly can.