Deregulation Bill

Karen Buck Excerpts

Monday 23rd June 2014 Commons Chamber

[The Solicitor-General]

As I think was said in another part of the country today, London is a super-city: it is an enormous city and it does have unique circumstances. The Government recognise the necessity of working with the London boroughs to design the provision to ensure we achieve the right balance between increasing the freedoms for Londoners and protecting London’s housing supply. We would not want that to be undermined. We are trying to ensure that speculators are not able to buy homes meant for Londoners and rent them permanently as short-term lets.

[Ms Karen Buck (Westminster North) (Lab)]

Is the Minister aware that central London authorities such as Westminster, as the hon. Member for Cities of London and Westminster (Mark Field) will know, Kensington and Chelsea, Camden and Islington, backed almost unanimously by the amenity and neighbourhood associations in those boroughs, have all expressed extremely strong reservations about these proposals, precisely because of the fear that they will lead to a loss of residential stock in what are already highly stressed neighbourhoods?

[The Solicitor-General]

Yes, the Government are aware of that, and we have tried to respond, first of all by making the point, as the Department has done, that the London boroughs must be fully involved in the process and also by allowing the regulations to be subject to the affirmative procedure, which means that the hon. Lady and other colleagues will have an opportunity to consider the detail of the changes and whether they are appropriate.

Turning to Government new clauses 22 and 23, the Electoral Commission and the Local Government Boundary Commission are independent bodies established by Parliament and overseen by the Speaker’s Committee on the Electoral Commission. Currently, both bodies have to provide a five-year corporate plan. The Committee has reviewed governance and suggested a five-year corporate plan should be produced in the first financial year of a Parliament, and the duty to update it and produce a new plan on an annual basis should be removed, although the Committee would retain the right to request updated plans outside this cycle. Value for money studies would take place at the beginning of the five-year period, not annually, and provision would be made to allow the Local Government Boundary Commission to appoint independent members to its audit committee and other committees. These changes are supported by the Electoral Commission and the Local Government Boundary Commission.

I shall now turn—briefly—to the subject of poisons and explosives precursors. New clause 24 introduces the new schedule inserted by new schedule 2, which abolishes the statutory requirement for a poisons board under the Poisons Act 1972 and introduces a common licensing system for poisons and explosive precursors to streamline the regimes and bring them into line with the latest EU regulations.

I am sure the hon. Member for Brighton, Pavilion (Caroline Lucas) will wish to comment on new clause 8 and the preserved right to buy and the idea that within one year of Royal Assent a plan should be laid to replace homes that have been sold under right to buy and review the effectiveness of it. Since the revitalisation of right to buy, 19,500 households have achieved their home ownership aspirations, but this is not just about buying; it is also about building. More than £419 million from the right-to-buy sales has been ring-fenced to fund new homes, and I assure the hon. Lady that the Government are committed to keeping the reinvigorated right-to-buy scheme under review.

The impact assessment sets out a wider perspective on right to buy and how the policy will work. The Department for Communities and Local Government publishes quarterly statistics on right-to-buy sales in England and annual statistics on preserved right-to-buy, and live data tables are on the Department’s website. The hon. Lady will be pleased to know that, on future stock transfers, the Department for Communities and Local Government has recently published a stock transfer manual. So the Government have set out their position very clearly and the intention is that for transfers completing after 30 September 2014, net proceeds from preserved right-to-buy sales are, within three years, to be used to fund new affordable housing at no greater subsidy cost than under the main affordable homes programme.

--- Later in debate ---

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

I will be a little briefer than I would have ideally liked, but I am extremely obliged to you, Mr Deputy Speaker, for giving me the opportunity to speak to amendment 2, which stands in my name. It would prevent the Government stopping local authorities specifying a higher standard of energy efficiency in new build properties until after the zero-carbon homes policy came into effect. To be clear, the Bill is intended to prevent local authorities from having autonomy, and my amendment would ensure that local authorities must adhere to as high a standard as possible.

The UK’s housing stock is the least efficient in Europe. As a result, we have some of the worst fuel poverty statistics in Europe—only Estonia does worse than we do at the moment—because our housing stock is so old. A great deal of the discussions that take place here are about the challenge of retrofitting, whether through supplier obligations or things such as the green deal. Surely that puts a premium on us to ensure that the new build standards are as high as possible.

The Labour Government introduced the zero-carbon homes policy, with the intention of implementing it by 2016. It was an excellent policy, with a clear implementation framework that allowed the private sector to produce the plans to deliver it. This Government have successfully undermined that policy. The definition was changed substantially some time ago, and that was further diluted in the Queen’s Speech. I am afraid that I do not have a great deal of faith in this Government’s Department for Communities and Local Government to deliver zero-carbon homes, but even if the Government tried to do so, what would happen between now and 2016?

Many people will take a localist view, to which I am sympathetic. The constituency I represent covers a substantial part of the green belt between Greater Manchester and Derbyshire, and if that green belt comes under pressure from new build, I believe we should be able to argue that the standard should be as high as possible for those homes. However, I appreciate that that would widen the debate too much, and I hope that a focus on preventing clause 30 from coming into effect until zero-carbon homes are in operation will command as much support as possible.

Of course, if the Government are sincere in backing zero-carbon homes, they have nothing to fear from my amendment—it would make no difference to a Government committed to delivering an ambitious zero-carbon homes policy in 2016. However, the issues of sustainability, efficient use of energy, and fuel poverty, as well as public acceptance of new build housing, which affects all of us, are so important that I will, with your permission, Mr Deputy Speaker, seek to divide the House on my amendment, as well as appeal to the other place to give the matter the due attention it deserves.

[Ms Buck]

I want briefly to reinforce the points made by the hon. Member for Cities of London and Westminster (Mark Field) relating to concerns about the impact that the relaxation of the rules on short-term letting proposed by new clause 21 will have.

Most of the inner-London local authorities, across the parties, and the amenity and residential associations in Westminster have raised three main objections to the relaxation of the rules. The first relates to the loss of residential stock. As we have heard, the pressure on inner-London residential stock is already acute, and the amount of money involved in the hotel and tourism trade is such that the sector is already eroding extremely rapidly. A further relaxation of the rules is likely to lead to a further diminution of stock in areas such as Lancaster Gate, Bayswater, Maida Vale and St John’s Wood in my constituency and, of course, in south Westminster.

The second issue is the cost involved and the resources needed for enforcement. We already know from Westminster council that, as the rules stand, an average of about 500 enforcement actions have been taken against short-term lets. The Government’s proposed rule change is likely to make it even more difficult and even more expensive for local authorities to enforce the rules. They will have to demonstrate not that a property is being let short term, but that it is in habitual short-term use, which is a much more difficult and higher bar to overcome, and it is likely to lead to a burden on council tax and resources.

The third issue relates to residential properties such as mansion blocks, which are very attractive properties for the purpose of short-term letting. The rapid turnover of tenants resulting from short-term lets means that a sense of neighbourliness and community is being eroded. It also leads to a higher incidence of antisocial behaviour, such as problems with noise and rubbish collection. That is not necessarily because the tenants or holidaymakers are antisocial, but simply, in common with boarding houses, bed and breakfasts and hotels, because the situation generates more of that kind of behaviour. That will also lead to additional problems, and there are real concerns.

Of course, we do not want to have to take enforcement action. The classic example, raised on the back of the Olympics, is that people might want to do a home swap or let their property for a fortnight.

[Mr Andy Slaughter (Hammersmith) (Lab)]

I think that all inner-London MPs will agree with my hon. Friend and her fellow Westminster MP, the hon. Member for Cities of London and Westminster (Mark Field). The consequences may be unintended, but they will put more pressure on the private and rented market, where at the moment nobody is able to get a property with decent rent. This will simply make things more difficult and more complicated in that market.

[Ms Buck]

I absolutely agree with my hon. Friend—those are exactly what the consequences will be. No one wants enforcement action to be taken against someone who lets their home for a few days or a couple of weeks, or who does a home swap, but there will be unintended consequences in a high-value, high-turnover and high-pressured area such as central London. Kensington and Westminster councils have made it clear that it is not those sorts of letters against whom they would take enforcement action, but the persistent trade in short-term lets. I hope the Government will think very carefully when they draw up the regulations for the enforcement of this particular provision.

[Mr Nuttall]

Whether Sunday is special or not is a personal choice everyone must make for themselves. Let us not forget that for some people, choosing to go shopping on a Sunday evening may be what makes Sunday special for them. Personally, I hope that they will choose to go to church on a Sunday morning, but that is a matter for them. I hope that, regardless of the number of hours that a larger shop remains open, individuals will decide for themselves whether to go to church or to go shopping. It is a matter for them and—