Commonhold and Leasehold Reform
Debate between Matthew Pennycook and Gareth Bacon(3 days, 10 hours ago)
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Gareth Bacon (Orpington) (Con)
I thank the Minister for his remarks and for advance sight of his statement. Progress on leasehold reform is to be welcomed. Labour promised that when it stood for election 18 months ago, so it is about time it got on with it, as the previous Conservative Government had started to do.
The previous Conservative Government began the process of fundamental reforms to the existing system of leaseholds by making it easier to extend a lease or to buy a freehold, increasing the standard lease extension time to 990 years, and giving leaseholders greater transparency over their service charges. His Majesty’s Opposition remain committed to giving leaseholders a fair deal, want householders to have security for the future and will continue to hold the Government to account on that.
The Government made big promises to leaseholders at the last election. Do they believe that the Bill is the summit of their ambitions? What about the Leasehold and Freehold Reform Act 2024? What are their plans to implement secondary legislation? There are opportunities to improve leaseholder situations that are available to the Government now. Why have they not implemented those changes? Surely, if they were serious about reform for leaseholders, they would have picked up the 2024 Act and run with it, rather than doing nothing until now. The Minister just said:
“I have made clear to the House on previous occasions, the last Government’s Leasehold and Freehold Reform Act contains a number of specific but serious flaws that prevent certain provisions from operating as intended and that need to be rectified via primary legislation.”
He went on to say:
“While not included in the draft Bill, our intention is to rectify those flaws in primary legislation.”
Perhaps he could tell us what those flaws are. If the Government have already identified them, why are the corrections not included in the forthcoming Bill? Surely now would be the time to rectify them. So if not now, when?
I would be remiss not to comment on one of the central principles of housing reform: there actually needs to be some housing in order to reform it. The Labour Mayor of London is delivering the lowest house building in London since 2009, while Labour’s national housing delivery is nowhere near where it needs to be to meet its 1.5 million homes target. What is Labour doing to ensure that there are strong incentives to build more? Where is the second planning Bill that the Government briefed out to the media that they will need to introduce because of their failure to get the planning reform right first time? The Conservative party is pro-development, which is why we have announced both a plan to review the London plan to improve on Labour’s failings in London and to ensure that national development is done on a brownfield-first approach.
Now, it is true that ground rent is an additional cost to leaseholders, but it is reported that the Chancellor is against capping ground rents because she believes it will deter pension fund investors. What does the Minister have to say to that?
The Government are claiming that these measures will reduce people’s bills, which would of course be welcome, but if leaseholder ground rent bills are simply replaced by soaring council tax bills, with some local councils now facing more than 30% rises in council tax due the Government’s grossly unfair funding review, how will people be better off? In inner London, which has a high proportion of leasehold flats, residents in councils such as Wandsworth, Westminster and Kensington and Chelsea are facing the double whammy of staggering rises in council tax and a council tax surcharge on top. Are the Government in fact claiming to cut a cost on one hand, while knowingly replacing it with even more costs on the other?
I would be grateful if the Minister answered those points in his reply. We will scrutinise the Government’s forthcoming commonhold and leasehold reform Bill, and we will hold the Government to account on their promises on leasehold reform and housing. We look forward to studying the details, and to the debates that will follow.
Matthew Pennycook
I note the initial positive tone from the shadow Minister in welcoming the draft Bill. I am slightly reluctant, on what is usually a matter of cross-party consensus, to be too critical of him, but it is a bit rich to criticise this Government, given that the previous Government cherry-picked reform in a way that was at odds with the Law Commission’s recommendation to treat all three of its reports as a holistic package, and left us with an Act that we will have to make a series of changes through primary legislation to fix so that we can implement the remaining provisions. I will, therefore, not take any strictures on ambition from the shadow Minister when it comes to leasehold reform.
I say plainly to the shadow Minister that we have switched on a number of the 2024 Act’s provisions already. On coming into office, we immediately enacted a series of provisions on rent charge arrears, building safety legal costs, and the work of professional insolvency practitioners. On 31 October we enacted further building safety measures; on 31 January we switched on the two-year qualifying exemptions for leaseholders; in March we switched on the right-to-manage provisions; and we are working at pace to take forward the rest of the significant package of secondary legislation that was required. However, some parts of those provisions require us to make fixes to the Bill—sadly, something that the previous Government left us with.
The shadow Minister mentioned housing supply, but again, I am loath to take lessons from a party that torpedoed housing supply in the last Parliament by making a series of anti-supply changes to the national planning policy framework, including the abolition of mandatory housing targets. The shadow Minister’s criticism could be taken a little more seriously if his colleagues did not come to me week in, week out, objecting to housing applications, telling me how our reforms will make it more permissive in their local constituencies.
We are getting on and taking forward the reforms to the leasehold system that are already on the statute book. Through this Bill, we are bringing forward the wider reforms necessary to bring that system to an end, which will be to the lasting benefit of millions of leaseholders across the country.
Planning Reform
Debate between Matthew Pennycook and Gareth Bacon(1 month, 2 weeks ago)
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Gareth Bacon (Orpington) (Con)
I thank the Minister for advance sight of his statement.
This Labour Government’s last planning framework began pushing development on to rural areas, prioritising concreting over the green belt and green fields rather than focusing on supporting building in urban areas, which is where we need to build most. From what the Minister has just said, it sounds as though the Government are going to double down on this approach with an all-out assault on the green belt. Over the past decade in London, under its abysmal mayor, Labour has conspicuously failed to build the right amount of housing, and now it is going to fail to build the right kind of housing in the right places in the rest of England. It clearly prefers to target building in rural areas, while not building in the cities and urban areas where demand is highest and much of the necessary infrastructure already exists.
At the current rate of house building under Labour, which is at a dismal low, the Government will fail by some distance to meet their target of 1.5 million homes. House building is falling under Labour, with the number of additional dwellings delivered in 2024-25 falling by 12,810. If the delivery of net additional dwellings continues at this rate, Labour will deliver its target not by the end of this Parliament but in seven years’ time. This Labour Government’s record on house building is dreadful—they delivered fewer homes in their first year in office than we delivered during a global pandemic. This is not a good sign for Labour’s first year in office, and now this Labour Government are intent on ignoring the voices of local people up and down the country while imposing top-down housing targets, disproportionately in rural areas, and tightening their grip through Whitehall-imposed targets.
The reality is that Labour is prioritising building on rural areas while claiming that it is grey-belt land. It is now returning to something that the previous Labour Government did, namely garden grabbing. The previous Conservative Government removed the top-down diktats that forced councils to demolish gardens, but the Minister has just promised “the redevelopment of low-density” residential plots, introducing higher buildings at street corners and “infill development” within “residential curtilages”. It is clear that, because of Labour’s failure to build homes on brownfield land, it now has residential gardens in its sights. The Government should be prioritising and incentivising brownfield development first, and making it easier to build on brownfield sites in cities and urban areas, but they are not—they are only paying it lip service. If Labour really wants homes to be built where they are needed, it should think again about how its planning framework will actually deliver.
There are many questions about the Government’s approach, but time is short, so I will restrict myself to four. The Minister states that there should be “a default yes for suitable proposals for development of land around rail stations within existing settlements and around well-connected stations outside settlements, including on green-belt land”. In that context, what is a “well-connected station”?
The Minister proposes “action to secure a diverse mix of homes” and “stronger support for rural social and affordable housing”. What form will the support take? What regulations will the Government relax or scrap to support housing delivery? What incentives will they offer to get brownfield development actually to happen?
Finally, the views of local people are not a burden in assessing planning applications; they are among the most important factors. Putting local people and local concerns high up the agenda is a long-established and democratic precedent that successive Governments have followed. However, I fear for their voices under the current Administration. The Government railroaded their Planning and Infrastructure Bill through Parliament and are now following up with this statement. It is increasingly clear that the planning system that this Government are not just envisaging and planning for, but actively creating, is one in which such local concerns are much harder to raise. His Majesty’s Opposition do not believe that local people and local democracy should suffer for that.
The Government are eroding trust in the planning system and widening the gulf between the Government and local people. That is why we are clear that local voices, not just Whitehall’s, must play a key part in any planning decisions. We will continue to scrutinise the framework as the Labour Government implement it, and we will hold them accountable as it begins to negatively impact local communities.
Matthew Pennycook
I thank the shadow Minister for his questions. I appreciate that he has not had a huge amount of time to look over today’s announcement, but he has completely misunderstood one of the primary thrusts of the changes we are making, which is to double down on a brownfield-first approach. Through the draft framework, we are introducing a presumption in principle for development in urban areas. We want to make clear in principle what forms of development are acceptable in different locations. Building on our brownfield passports, that will mean that, in practice, the development of suitable urban land will be acceptable by default. That is a doubling down on a brownfield-first approach.
The shadow Minister raised concerns about the green-belt. As ever, this Government are committed to protecting the green-belt, which has served England’s towns and cities well over many decades, but we did introduce—[Interruption.] I am more than happy to have a debate with Opposition Members. We replaced the haphazard approach to green-belt release under the previous Government with a more strategic and modernised approach. All the draft framework does is build on that approach in a specific form by allowing development to proceed in the green-belt on well-connected stations.
I should say that well-connected stations are precisely defined as the 60 highest travel-to-work areas based on gross value added. However, as with all the policies in the draft framework, we are consulting on whether that is the right number or whether it should go higher or lower. There are appropriate densities in the framework for all stations across the country and higher densities for specific well-connected stations in those areas.
The shadow Minister asked me what we are doing on rural affordable housing. We want to see greater support for social and affordable housing in rural areas. The new framework—[Interruption.] If the hon. Gentleman will allow me, the framework makes it easier for rural exception sites to come forward through clearer national policy; makes it far easier for rural authorities to require affordable housing on smaller sites, including by removing the need for legislative designation; and removes the first homes exception sites as a stand-alone form of exception site, to avoid driving up land prices and crowding out wider social and affordable tenures.
Finally, the shadow Minister critiques this Government’s record on housing supply, and it is true that net additional dwellings in 2024-25 stood at 208,600, but in attempting to castigate this Government for that figure, he betrays his ignorance of the development process. The fact is that the overwhelming majority of new homes completed in 2024-25 are the result of planning applications submitted in the last Parliament. In criticising those numbers, he is rebuking his own Government’s record. He is right to do so because, as many hon. Members know, the previous Government, in abolishing mandatory housing targets, have torpedoed housing supply in this country. We are turning things around, and the draft framework will help us to do just that.
Oral Answers to Questions
Debate between Matthew Pennycook and Gareth Bacon(1 year, 3 months ago)
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Gareth Bacon (Orpington) (Con)
The Minister for Housing and Planning (Matthew Pennycook)
As the shadow Minister will know from our exchanges in the Renters’ Rights Bill Committee, the Government have absolutely no plans to introduce rent controls in any form.