Lord Beecham
Main Page: Lord Beecham (Labour - Life peer)
Lord Williamson of Horton
My Lords, we are now coming to the vital questions of homelessness and overcrowding, but this amendment is a little different. It is a general amendment dealing with housing strategy. It does not deal only with the problems of homelessness and getting on the housing ladder: it deals with the whole structure in a local area of what is happening in the housing domain.
I see a lot of merit in this amendment for ensuring that in one way or another we can guarantee that this sort of information is available at the local level. No doubt the Minister will comment on that point because that is the issue underlying this amendment. Is this information seriously available at a local level? For myself, issues such as employment trends, not in the country as a whole but in a region or local area, are quite different. These issues are important for the planning and future analysis of how we can have the houses that we need for the population in individual areas.
Similarly, there is the question of empty properties. We now have town centres with hundreds of empty shops which could easily be converted into housing. Will they be converted into housing? We do not know, but that should be featured in the knowledge available to the local authority. I am not pressing for the exact words, but I am sympathetic to this idea and I hope that the Minister will comment on that in his reply.
Lord Beecham
My Lords, I support the amendment moved by my noble friend Lord Whitty and will make a couple of observations—one in relation to something that was touched on in the amendment and another that is implicit. In the first case I refer to subsection (2) in the amendment, where my noble friend suggests:
“All local housing authorities must draw up an analysis of housing supply and demand in their areas and neighbouring areas as far as is relevant”.
In many cases that is a fundamental point which was made more difficult by the abolition of the regional spatial strategies. We know of authorities that are currently having considerable difficulties. In earlier debates I cited the case of Stevenage, which was looking to increase its housing stock. It cannot do so within the narrow confines of the borough, and it is not finding a warm welcome from the adjoining borough of North Hertfordshire. There are other cases of that kind.
In looking at housing needs, as has previously been indicated, it is sometimes necessary to look beyond the confines of an individual housing authority and to make proper provision for at least a sub-regional area. That is an important part of the amendment. I would be grateful for some assurance from the Minister that, even if she is not prepared to accept the amendment as it stands—and I hazard a guess that she might not be—the Government will look at how these cross-boundary issues of determining housing need can be adequately addressed.
The other issue could be wrapped up within subsection (2)(f) of the amendment:
“broad demographic and employment trends in their areas”.
One change in the housing situation in many towns and cities with universities and colleges is the high demand for student accommodation. Some of that is met by purpose building—by the university or private institutions—but a lot of it is met by the occupation by students of what in normal circumstances would be family housing.
As with immigrants, there is certainly a strong case to be made for the contribution made by students, and higher and further education, within the local economy. However, they absorb a considerable amount of housing accommodation that was originally designed for families and put additional pressure on the local housing stock and the local housing market. In the light of changes to be made to housing benefit and welfare benefits generally, that pressure is likely to increase because private landlords may well find students a readier purchaser of rented accommodation, as it were, and more able to afford it, than ordinary families and ordinary individuals seeking housing. I think my noble friend Lord Whitty would agree that this should be included in the demographic trends and analysis that he suggests authorities should make. Again, it would be helpful if the Minister were able to comment on this issue.
Finally, the issue of the number of vacant properties has already been touched on this afternoon. This was referred to this morning in a meeting convened by the Minister, with her right honourable friend the Minister for Housing. Mr Shapps rightly pointed out that waiting lists have grown to something like 1.2 million. He also said that there were a million empty properties in the country—correcting me, appropriately; I thought it was somewhat less than that—which would virtually take care of the waiting list.
Of course there are good reasons why some properties will remain vacant for some time—while they change hands, for example—but there is a real issue over bringing into use the empty properties that could help deal with the housing problem. I regret that the Government’s policies on empty dwelling management orders, for example, make it more difficult, not less, for local authorities to address the issue of properties that have been left vacant for some time. They now have to be vacant for two years or more and include an element of environmental degradation before a council can take action. Again, dealing with empty properties is referred to in the housing strategy, but it would be welcome if the Minister would indicate whether there are proposals currently in the Government’s mind to facilitate the use of empty accommodation and to speed up the process of dealing with empty properties.
Baroness Hanham
My Lords, I got us off to a really good start, and the noble Lord, Lord Whitty, has taken that on as well. This is a general amendment on a very serious and specific subject, and I recognise all that has been said across the House and the analysis of the housing situation. In all fairness, I should point out that this is not just a short-term problem. This has been a long-term problem over the years, and both the previous Government and this Government have been trying very hard to address at least some of the issues that have been raised.
There are all sorts of reasons behind a lack of housing and none of us would disagree that the present situation is pretty difficult. It is pretty difficult in the private market. It is very difficult, as has already been said, for young people to get on to the housing ladder; it is very difficult for them to afford mortgages. There is a big problem for that age group and for people starting off on their housing lives.
As has already been said, and was admitted by the Minister this morning, there are empty properties that need to be brought back into use. There is a lot of pressure on housing requirements all round. As the Minister also said, in reality we cannot build ourselves out of these difficulties in the short term. One hundred and seventy thousand homes are being built through the affordable homes programme for social housing, and they will make some contribution towards it. The waiting lists have gone up and, as has been said already, a million homes are required, which is a big problem. The amendment in the name of the noble Lord, Lord Whitty, is about drawing attention to that and identifying what is required. He said that in Committee I said that this amendment would not be needed. It will not surprise him when I say now that it is not needed. Already, there are statutory provisions requiring local authorities, which the noble Lord mentioned, to collect evidence on housing need and demand in their areas for market and affordable housing. That is in planning policy statement 3 and is included in the guidance.
Baroness Gardner of Parkes
I thought that the noble Lord, Lord Kennedy, might wish to speak. I would rather hear from him first. However, I listened with interest to the noble Lord who moved the amendment. I noticed that one of the categories to which he referred comprised those who had fled violence, which comes back to the asylum seekers we discussed earlier. People who have waited years and years for housing feel great resentment in that regard. Their local authority may have placed them in private sector housing. That was certainly the situation in a case of which I know. The people in that case have found the situation in the private sector impossible as the landlady is not prepared to reduce the rent to the housing benefit rate and has already had an eviction order confirmed by the court. The tenants have been told that they must stay in the accommodation and be made homeless as otherwise the council will have no obligation to them at all, and that if they leave the accommodation they will be regarded as being voluntarily homeless. They have gone everywhere to try to find alternative accommodation. I am talking about central London, which has particular problems in this regard. For some reason we all automatically come to central London because it has a great charm. Whether that is because someone else from your country came here previously and you would like to be in a little group with everyone else, I do not know. I was never in “Kangaroo Valley” in Earls Court, but that was a well known fact even there.
However, it concerns me that people who have for years been deserving cases are not getting any opportunity or help. The people who I am talking about are now being offered an opportunity, after 16 years in other accommodation—they are well over 50—of a possible place in a hostel, although they have not been promised that. They are elderly people—well, they are in their 50s, but the husband is not well and has a heart condition.
Why should that happen to people who see accommodation offered to an asylum seeker, who is in a category of being very grateful to this country? It was said by the noble Lord, Lord Shipley, when he moved the amendment, that there are areas where social housing is in plentiful supply. When, years ago, I was on Westminster Council and had responsibility for housing, we decided to offer people the right to live in Liverpool where a lot of accommodation was available. They could be offered that rather than bed and breakfast in London, which was all that we could offer here. They were all offered buses and were supposedly taken off to Liverpool. Only 50 per cent of them ever arrived. The other 50 per cent were never seen again, never made any further application to the council, and I have no idea what happened to them. But why was what proved to be an attractive offer for 50 per cent totally unattractive to the other 50 per cent?
We therefore have to be careful when considering anything regarding homelessness that we do not overlook the people who have become homeless after perhaps years of having somewhere to live, or the people who would qualify if we passed the Government’s proposals in the Bill, of which I am a strong supporter. They would make it possible for councils to attach value to various things that they think are important locally, such as the connection with an area over time. I am worried by this sort of amendment. I am not directly opposed to it because I have every sympathy with homeless people, but we have to look wider and think about the full implications.
Lord Beecham
My Lords, my experience of the housing of asylum seekers in the city of Newcastle certainly does not lead me to the view that they have been given wonderful accommodation for which there was a great deal of demand by those in housing need locally. On the contrary, NASS, the national body charged with responsibility for housing asylum seekers, seemed—if I may put it this way—rather less than careful in its choice of the landlords it engaged and the standards of accommodation that the asylum seekers were given. That reinforces the views of some of us that, while we join the noble Lord, Lord Shipley, in recognising that there is a perfectly reasonable place for the private rented sector in helping to rehouse homeless people, it is imperative that the standards of that housing be adequately assessed and continually monitored.
I therefore strongly support the amendments—in particular the provision about the length of time for which the obligation to rehouse would remain. However, the reference of the noble Baroness, Lady Gardner, to Westminster’s generous offer to ship people up to Liverpool raises a question. It actually raises several questions, but the one for this afternoon’s purposes is whether it would be possible for an authority to discharge its duty under the Bill as it currently stands by offering accommodation outside the area of the authority in which the homeless person currently resides. I may be wrong, but I assume that that would be the case. One hears of authorities in London that are already faced with the possibility of tenants no longer being able to afford accommodation, given the impending changes, and are seeking to acquire or make arrangements for accommodation along the south coast and elsewhere—something that has happened in the past.
Can the Minister give an assurance that it would be at least the initial responsibility of the local authority to try to accommodate people within its boundaries unless the protected tenant or homeless person chooses otherwise? It would be unfortunate if the legislation were, no doubt unwittingly, to encourage the export of homeless people to other authorities, as that may well carry with it other local authority responsibilities—social care and the like—which will be a charge on those authorities, let alone the fact that the people involved may not want to move, at any rate, not for a considerable distance. As I read it—I am open to correction—although authorities are required to advise initially on what might be available locally within their area, if that does not work, they can allocate accommodation outside it. Presumably, if that is refused by the homeless person, the duty to find them accommodation would end. That seems an unsatisfactory conclusion, further compounding the difficulties which many people face.
Lord Best
My Lords, my name is against this amendment, in support of the sunset clause coupled with a report on the position of homelessness three years from now. The Minister said earlier that one of a local authority’s most important duties is towards the homeless. A pretty fundamental change in the way that that duty is to be discharged means that it must be a good idea to pause for thought three years down the line and see whether these quite important and significant changes have made a big difference.
At the moment, the local authority must find the family or householder a secure and affordable place in the social housing sector. In the future, they will be able to fulfil the requirement placed upon them by seeing that family into a place in the private rented sector. That, by definition, is not going to be secure in the long term. Understandably, landlords may wish to have the property back and security of tenure over the long term cannot be offered. It may be that that property, after the reforms to housing benefit and the local housing allowance, will prove to be unaffordable. There is a gap between what the tenant pays in rent and the amount that they receive in benefit, and the private rented sector option may not work out.
It may be that the dire warnings that we have heard from Shelter, Crisis, Homeless Link and others do not work out in practice, but there is a danger that those warnings prove to be entirely timely. We had a lot of discussion on these provisions earlier in the House. The noble Lords, Lord Shipley, Lord Rix, Lord McKenzie and Lord Kennedy, the noble Baronesses, Lady Doocey and Lady Greengross, and others all spoke on this matter in Committee. There is a great deal of concern about the fundamental changes to the duties upon local authorities.
I hope that noble Lords had a chance to look at Hansard over the summer. As I have said, noble Lords should regard reading the last debate as a bit of a teach-in on all the aspects of homelessness that we ought to think about. We were not able to secure all those different aspects as a whole series of amendments to the Bill but the Government have, in trying to ensure that accommodation is suitable in the private rented sector, come up with a code of guidance. That has some very good things in it. It does not go all the way down the line, but perhaps that will lead to a successful outcome for those who are placed in the private rented sector. This sunset clause would ensure that after a period of three years a thoroughgoing report is placed before Parliament, and that unless the Secretary of State revives these measures by order, those measures will fall.
Earlier this year I moved a Motion on the housing benefit regulations asking the noble Lord, Lord Freud, the Minister responsible, whether he would over the months and years ahead put in hand a fundamental reform along the lines of the housing benefit reforms in order to see what impact they had on homelessness, families, poverty, people’s incomes and the local authorities themselves. The noble Lord, Lord Freud, not only agreed to do that and to have a review, which is now under way and which will report in three stages over the next 18 months, but did it in a way that, I am pleased to report back to the House, met entirely with my approval and indeed that of others interested in these matters. He has brought together Professor Kemp from the University of Oxford and Professor Cole from Sheffield Hallam University; he has Ipsos MORI doing surveys and the IFS looking at the macroeconomics. It is a real, thoroughgoing review of the impact of these changes, which is just what we asked for and just what this House required. A comparable exercise to look down the line at how things are going would again be a triumph for the Government and a thoroughly commendable and useful exercise, which would provide the evidence and inform a decision on a sunset clause three years from now. Let us do it again. I strongly support the amendment.
Lord Beecham
I congratulate my noble friend Lord Kennedy and the noble Lord, Lord Best, on moving this amendment. Having paid that compliment, I hope that they will not mind if I claim paternity of the amendment itself.
There are two issues that really need addressing. One is affordability and the other is the quality of the accommodation that will be offered to people. They give rise to the need to review the situation, as noble Lords who have moved and spoken to the amendment have made clear. Nearly half those who are housing allowance claimants find that their housing benefit now falls short of what is required by an average of £24 a week, which is a considerable shortfall. That is before the impending changes. A significant proportion, a quarter of tenants, find themselves spending half their income on rent, which is a very high proportion.
The condition of properties in the private rented sector in particular also gives rise to concern, as 40 per cent of them fall short of the decent homes standard, which is twice as high as the percentage in the social rented sector and well in excess of the figure in the owner-occupied sector. A high proportion of cases dealt with by Shelter come from the private rented sector—twice the proportion of claimants that you would expect from the proportion of households in the sector. Again, a high proportion of environmental health officers are reported by Shelter as encountering landlords who refuse to carry out even the necessary repairs to maintain properties in a safe condition; 36 per cent of environmental health officers say regularly that they find private landlords in breach. Yet this is the sector to which many people will be directed under the provisions of this Bill.
It may be that things will improve, which is obviously the Government’s hope and intention, but it is surely necessary to take a check on this after a reasonable period. These amendments give that opportunity to rethink the situation if necessary. If things are going well, it is a simple enough matter to carry the legislation forward; if not, there will be an opportunity to address what might well be a very difficult situation for a great many people.
Lord Taylor of Goss Moor
My Lords, I declare an interest since I chair the National Housing Federation. The Government are embarking on some quite fundamental changes to the homelessness legislation, a piece of legislation that dates all the way back to my former colleague, Mr Ross. It has been of immense benefit to have that legislation in place, although it is not always popular. That said, as things stand there are some perverse consequences to the legislation and in how people may respond to its provisions. As a Member of Parliament for a Cornish constituency where homelessness and poverty have been high for many years, I saw some of that taking place. Concerns have been expressed about the use of the private sector, but I think that is wrong; the private sector can be right for individuals and homelessness should not be seen as a trump card in the process of housing allocation. So there are important potential benefits in the changes that the Government are making.
I have great sympathy with the argument that when profound changes are made we should ensure that there is a proper process of review of the consequences that come from those changes. Inevitably, there are unexpected consequences of these things; while it may not be that this particular amendment is the best form for that, I hope that I will hear from the Minister a very clear commitment for a process of review, in particular to look at whether the quality of accommodation provided by the private sector is adequate and, perhaps even more important, what the consequences have been in terms of individuals’ ability to pay rent given the changes to the benefit system. I hope that the consequences of these changes will be positive, but I am all too aware that they may not be, so I look to the Minister to give some reassurance on that front.
Lord Shipley
My Lords, in moving Amendment 8 I shall also speak to Amendment 20. Amendment 8 would restore the requirement that any offer of private sector rented accommodation must be reasonable for a homeless household to accept. For clarity, the amendment would simply restore the law to its current position, which is why it refers to the deletion of a clause.
At present, local authorities must be satisfied that accommodation offered to homeless households is “reasonable to accept”. The Bill as drafted removes this requirement. However, the condition is important because “reasonable to accept” is distinct from suitability. It covers cases where a property may be defined as suitable in law by its condition, location and affordability but where there may be wider reasons for a household to turn down the offer. It has been used to challenge through the courts an offer of housing in an area where there had been racial harassment. It could apply equally in cases of domestic violence.
Amendment 20 seeks to define the suitability criteria for private sector rented accommodation offered to homeless households. It was previously tabled in Committee and would define suitability criteria for private rented accommodation in which homeless households are placed under the changes to the homelessness duties proposed in the Bill. It sets out important safeguards around physical standards, management, location and affordability. The Government have accepted some of the concerns raised about these issues at previous stages of the Bill, and have said that they are prepared to use order-making powers to set standards on physical condition and property management. Those are indeed very welcome. However, the Government have still not fully addressed the concerns around affordability and location.
Let me address examples of why an environment might not prevent accommodation being objectively considered as suitable but would, if an applicant were housed there, have a detrimental effect on that applicant. Examples include the risk of threats of racial harassment or violence by individuals unknown to the applicant, or a risk to the welfare of the applicant where the accommodation offered is in a neighbourhood associated with drug use or dealing and the applicant is a recovering drug addict. There may be a perceived risk of harassment or violence from individuals known to the applicant, such as a violent ex-partner whose relatives, friends or associates live in the neighbourhood.
There have been such legal cases; I draw attention to one in particular. A family refused an offer, arguing that it was unreasonable for them to accept the accommodation, even though it was suitable in terms of what was in it, because, when viewing the flat, they and their children had suffered racist abuse from people living nearby. That case went to the Court of Appeal, which considered that the flat may have qualified as suitable in its size, location and so on, but that the council should have gone on to consider the wider question of whether it was reasonable for the family to accept it in light of the intimidation. The court stressed that suitability and “reasonable to accept”, while overlapping terms, are different concepts. The requirement of “reasonable to accept” does not apply to temporary accommodation, but only to offers that are intended to discharge the authority’s homelessness duty completely. It is a serious issue and I am concerned.
In an ideal world I would be opposed to the removal of choice from homeless people by allowing local housing authorities to discharge their homelessness duty via an offer of private rented accommodation without the applicant’s consent. However, I recognise the general problem of supply and that more than three-quarters of local authorities, when responding to the Government’s consultation, said that they welcomed the proposed change and would use it. If local housing authorities are potentially able to discharge their main duty with one offer of private rented accommodation, it becomes much more important that this offer is suitable to meet the needs of the household.
The Government have recognised that physical and management standards are important and have outlined them in the statement that the Minister placed in the Library recently. However, I do not think that we have been told what the draft regulations will say. As the protection of homeless households is such an important issue, and given the absence of draft regulations, should we not include definitions of suitability in the Bill, particularly physical and management standards? The statement in the Library does not address the vital issues of affordability and location. The assurances given by the Minister in Committee that the local authority must by law consider the applicant’s financial resources and the total cost of accommodation in determining whether the accommodation is suitable will do nothing to tighten the affordability aspect of the suitability definition.
There seem to be no reassurances on location. Once an authority has considered the applicant’s financial resources in assessing family income and expenses, it can still take its own view of what is affordable when deciding where to place a family, as long as it can show that it has had regard to the guidance—or, to put it another way, local authorities are advised that a household’s residual income should not fall below subsistence level. However, a local authority is able to depart from this guidance as long as it can prove that it has been considered. It would be much better if this were included in the Bill. The proposed new clause would include in the Bill certain specific criteria in relation to the affordability of accommodation and its location. These tend to be the most important factors in any offer of accommodation. This will prove to be a very important issue as homelessness continues to rise and local authorities have less accommodation to offer to those who are homeless and potentially homeless.
In addition to the affordability and location of the accommodation, we should consider the management of standards, who is renting out the accommodation, what processes they follow in managing their accommodation and whether it meets the standards of decency and reasonableness that I am sure all your Lordships would expect. I have further amendments concerning standards of accommodation in the private rented sector. I do not want to discuss them now but it is important that we define the quality of the accommodation, minimum physical standards and management standards better than we do at present. We should also take greater account of affordability and location. I hope very much that the Minister will agree to look further at this issue. People should not feel that the making of a single offer on the part of the local authority means that it has fulfilled its legal obligation towards them and that they should therefore take it up. I have great doubts about this issue but I still hope that the Government will understand that they have to do a little more than what is outlined in the note that has been placed in the House of Lords’ Library.
Lord Beecham
My Lords, I wonder whether I can tempt the Minister—probably not—to answer the point I made on a previous amendment about the applicability of offers made outside the area of the local authority that is determining the issue of homelessness. It is a question of suitability in this context. Perhaps she could enlighten us on that aspect when she replies.
Baroness Gardner of Parkes
This is a question of whether people have a 100 per cent right to decide what is suitable. I think we have all read about the case of a family who were very unhappy in Kilburn as they considered that the shops were not smart enough and who were moved to Kensington and Chelsea, which involved a huge amount of housing benefit being paid. I consider that those people did not have the right to say that they did not like Kilburn as it was not smart enough. That was unreasonable. However, as regards Amendment 20, is it not a fact that if a local council wished to do so it could use these criteria as part of its own flexible criteria and would not need to have that enshrined in the law? I very much support the flexibility in the Bill. It is unreasonable to tie councils in this regard. However, if you do not like what your council is doing, you can vote it out in the hope of getting a new council with a different attitude.