Leasehold Reform (Ground Rent) Bill [Lords]

Debate between Robert Jenrick and Kevin Hollinrake

2nd reading
Monday 29th November 2021 Commons Chamber

[Kevin Hollinrake]

The hon. Gentleman makes some good points and I am not saying that in certain circumstances commonhold cannot work. He pointed to the simple situation of a non-adopted road to which local residents have to contribute for the upkeep and it can certainly work in those situations, but I am just trying to point out that there are situations where it would prove difficult to make the system work.

Every jurisdiction—those in Australia or the US or Scotland—is different, and the UK is unique in various ways, one of which is in having a high proportion of absentee owners, such as in central London, where we all see blocks of flats that seem to be rarely occupied. Problems might arise in managing such blocks with for instance 100, 200 or 300 commonholders; there might be disputes and difficulties, such as in debt collection.

On the point about simple things to manage, the biggest issue is complex developments, as my right hon. Friend the Member for Chipping Barnet mentioned. Let us consider a block of 300 or 400 flats built above a tube station or adjoining a shopping mall; effectively there will be a common freehold in that development but would anybody here be keen to sit on a committee managing that entire block with, for example, joint M and E—mechanical and electrical—so joint electrical, heating, ventilation and broadband installations, managed not just between the 300 units but the other infrastructure in that development? There are concerns that that would be beyond the appetite of many commonholders who manage that kind of development.

[Robert Jenrick]

Yet it is done in every other country in the world—is that not the point? I share my hon. Friend’s reservations yet every other country in the world with equally complex cinemas and tube stations and infrastructure manages it in a way that is broadly commonhold.

[Kevin Hollinrake]

My right hon. Friend raises a good point and has an advantage over me as I do not know in depth how that would happen in, for instance, Manhattan, but I think we should understand that situation more before pushing ahead and ruling that commonhold will effectively become the default for every single development in the UK. The Government have done a great job in many things and one of them is in increasing the rate of development in the UK, and I have a concern that some developers might be inhibited in taking on a very complex project because of fears about selling the residential units or renting the commercial units. I just think we need to understand more before pushing ahead and rolling complex developments into the legislation, rather than exempting such developments from it as we on the Select Committee recommended and Lord Lytton recommended in his speech—he tabled an amendment.

I just think we should look at this area and make sure we get it right, because one law we constantly effect in this place is the law of unintended consequences and we must avoid that. So peppercorn leasehold and commonhold are fine, but we need to make sure we look at those complex situations. I personally think that if we do not find a simple solution and cannot demonstrate that it will work in the UK, because the UK clearly has some unique elements to the property market, then we should set a cap on the ground rent in exempted developments, for instance of £100 or 0.1% of value, whichever is the lowest, to make sure it is always affordable for leaseholders. I absolutely understand that this has been a problem, but we must make sure that developers do not avoid exploiting development opportunities—particularly brownfield development opportunities in city centres—because of complexities.

Aside from that, I am very happy to support what the Government are trying to do.

Planning Decisions: Local Involvement

Debate between Robert Jenrick and Kevin Hollinrake

Monday 21st June 2021 Commons Chamber

[Robert Jenrick]

I cannot, as I have only a few minutes left, but I appreciate that my right hon. Friend is at the vanguard of this issue.

Thirdly, everyone in this country wants to see more infrastructure built alongside the homes—the GP surgeries, the hospitals, the roads, the parks, the playgrounds. We will bring forward an infrastructure levy that gets more of the land value out of the landowners and the big developers and puts it at the service of local people. That will mean more affordable homes being built in this country than ever before.

We will also ensure that we tip the balance away from the big-volume house builders and towards the small builders, so that local entrepreneurs—the brickies, the plumbers and the builders in our constituencies—get a fair shot at the system.

[Kevin Hollinrake]

Will my right hon. Friend give way?

[Sarah Owen (Luton North) (Lab)]

Will the Minister give way?

Affordable and Safe Housing for All

Debate between Robert Jenrick and Kevin Hollinrake

Tuesday 18th May 2021 Commons Chamber

[Robert Jenrick]

I will come to my hon. Friend in a moment.

Since 2010, we have delivered over half a million new affordable homes, including 365,000 affordable homes for rent, many of which—148,000—are going to social rent. The new affordable homes programme we have just brought forward has the largest contingent of social rented properties of any of its kind in recent years. Over 700,000 households, many first-time buyers, have now been able to take advantage of these schemes. We are committed to affordable homes of all tenures. That, of course, includes those that will be delivered through the £12 billion affordable homes programme, which, as well as building homes in its own right, is unlocking £38 billion- worth of private sector investment to drive affordable and market rent housing. That is the highest single funding commitment to affordable housing for at least a decade.

The truth, however, is that even those bold steps and record investment will only get us so far. To build the homes that I think we are agreed in this House we need and to level up truly, we have to face up to our generational duty and responsibility to increase the supply of homes at pace and at the volume that is required. That means taking decisive action to remove the barriers that for too long have held us back. My Department has a unique opportunity to achieve transformational change that will improve the lives of millions of people. We will be working on the most substantive reform of leasehold, property rights, building safety, renters’ rights and planning in a generation.

[Kevin Hollinrake]

On planning reform, as the Secretary of State knows, 30 years ago small and medium-sized enterprises built two thirds of new homes and today that figure is only 23%. The costs of planning have a disproportionate effect on small and medium-sized housebuilders. Does he believe that his reforms to the planning system will change that and improve the life of SMEs?

[Robert Jenrick]

My hon. Friend touches on the litmus test for our reforms. Each and every one of our reforms must help small and medium-sized builders to prosper, so that small builders in every one of our constituencies, local entrepreneurs and the people who depend on them, from plumbers to brickies, benefit from the reforms, creating a more diverse and competitive industry. Everyone can be assured that it is in their interests that we are working day and night in my Department, not for the big volume housebuilders. They have the money to navigate the current system; they hire the best QCs and consultants; they love the current planning system. It is the little guy whose side we are on and that is why we are committed to reforming the system.

Oral Answers to Questions

Debate between Robert Jenrick and Kevin Hollinrake

Monday 22nd February 2021 Commons Chamber

[Kevin Hollinrake (Thirsk and Malton) (Con)]

What steps he is taking to promote home ownership.

[The Secretary of State for Housing, Communities and Local Government (Robert Jenrick)]

Central to this Government’s mission is the promise of helping more people to achieve the dream of home ownership. That is why we have introduced a new shared ownership model cutting the minimum stake that someone needs to buy a home of their own to 10% and allowing them to increase in 1% steps. Thousands more people will benefit, as up to 50% of the homes delivered through our new affordable homes programme will be shared ownership, with those in rented homes being given the right to shared ownership. This all comes on top of our new Help to Buy scheme, which specifically targets first-time buyers, our First Homes policy, which discounts new homes by at least 30%, and our landmark leasehold reforms announced earlier in the year.

[Kevin Hollinrake [V]]

City of York Council is already the subject of written warnings by the Secretary of State’s Department for its failure to produce its first local plan since the 1950s, and has now again been reprimanded by inspectors for delays and errors in the production of that plan. Will he now step in and have this plan drafted for the council to send a clear message to it, and to any other council, that we will not tolerate those who seek to prevent the delivery of homes for rental and ownership?

Oral Answers to Questions

Debate between Robert Jenrick and Kevin Hollinrake

Monday 5th October 2020 Commons Chamber

[Kevin Hollinrake (Thirsk and Malton) (Con)]

Does my right hon. Friend agree that we need to address the inherent unfairness in the operation of the housing infrastructure fund, which allocates 80% of its budget to London and the south-east and only 20% of it to the rest of us?

[Robert Jenrick]

My hon. Friend and I have agreed on this point for some time. The housing infrastructure fund directs funding to those areas where there is the greatest affordability challenge. That is important, in some respects, but any Government who want to level up must also direct infrastructure investment for housing to other parts of the country as well. I will certainly bear that in mind as we design the successor to the housing infrastructure fund later this year.

Planning for the Future

Debate between Robert Jenrick and Kevin Hollinrake

Thursday 12th March 2020 Commons Chamber

[Robert Jenrick]

We are committed to a green revolution in the housing industry. We are doing that in many different ways, most notably through the future homes standard, which we have just consulted on. We have received more than 3,000 responses and will bring forward our final proposals shortly. We have consulted on a substantial reduction in CO₂ emissions in new homes of between 75% and 80%. I do not want to pre-empt what we might choose to do, having listened to the views in the consultation. However, the evidence that we saw prior to the consultation was that that was the most credible reduction in CO₂ emissions that we could deliver across the whole of the country, although some parts could go further and faster if they chose to do so. We are listening to the responses, and I want to see the industry respond, change and have much higher levels of energy efficiency and to see new heating systems come in as quickly as possible.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

I welcome my right hon. Friend’s statement. Supply alone will not solve all the affordability problems in the housing market. It will require intervention, such as his excellent First Homes initiative. Will he consider extending that initiative to directly commissioning first homes on public land and perhaps combining First Homes with Help to Buy to further improve the affordability of home purchase?

[Robert Jenrick]

That is a very interesting idea, and one that I will give careful thought to. My hon. Friend and I worked together on the creation of First Homes, and I am very grateful for his views on that. He is absolutely right that this will require both supply and demand-side reforms. That is why the planning system is so important in unlocking more land in the places where people want to live, but it is also important to have ways of getting people on to the housing ladder, and First Homes is just one of those options. It will enable people in their local area to get 30% discounts on new homes. I recently met the major house builders, who are fully supportive, and I hope that we will see those homes on the market in this country by the end of the year.

Grenfell Tower Inquiry: Phase 1 Report

Debate between Robert Jenrick and Kevin Hollinrake

Tuesday 21st January 2020 Commons Chamber

[Robert Jenrick]

The question at the heart of my hon. Friend’s remarks is what the judge will determine in the second phase of the inquiry. What went wrong that led to that cladding being on Grenfell Tower? Was it a failure of Government or of regulation of the construction industry, or a combination of those things? I do not think we can prejudge what the judge will determine over the course of the detailed second phase of the inquiry that is about to commence.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

I have followed these matters over the past couple of years, and in my experience the Secretary of State has done more to try to resolve these problems than any of his predecessors, all of whom tried to tackle a thorny issue. He is right to say that ACM is probably the most dangerous cladding, and we should deal with that first. Advice Note 14 does not deal with ACM, but it does effectively say that other combustible materials should not be on the outside of high rise buildings. The official guidance was more equivocal than that, which leaves long leaseholders in a difficult situation with unsaleable properties—I draw the House’s attention to my entry in the Register of Members’ Financial Interests in that regard. We must consider this issue. Yesterday the Secretary of State said that he would look at doing more, and we will need to.

[Robert Jenrick]

I pay tribute to my hon. Friend who is a long-standing campaigner on this issue. Next month we will publish the final result of the testing process that my Department has been undertaking over many months with the Building Research Establishment. That will lay out for all to see evidence that I have already seen about the safety, or otherwise, of a range of different materials. I believe it will demonstrate that ACM is by far the most concerning material and should come off buildings as quickly as possible.

Building Safety

Debate between Robert Jenrick and Kevin Hollinrake

Monday 20th January 2020 Commons Chamber

[Robert Jenrick]

I am sorry to hear about the example that the hon. Lady raises, and I will look into that if she could give me the details after this statement. Since becoming Secretary of State, I have taken action to ensure that the remediation fund moves forward at pace. We now have a named contact working with every one of these buildings. I review the lists regularly, and we have made a great deal of progress. We have now reached the point, as I have said, where every building is within the system and is working with my Department. The only ones that are not are those that emerged only recently as having ACM cladding. I hope that we will now, finally, make rapid progress.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

May I welcome my right hon. Friend’s statement and his proactivity on this issue? Advice note 14 states that only limited combustibility materials should be used on external surfaces, but our work on the Select Committee has shown that the actual guidance was much more ambiguous, which leaves many leaseholders in limbo. Will he consider extending the remediation fund to cover other types of combustible cladding?

[Robert Jenrick]

The expert advice that we received said that ACM should be the priority of Government. That is why my predecessors announced the £600 million remediation fund for ACM on high-rise buildings. The testing results, which I will publish next month, confirm that decision and make it clear that ACM is significantly more dangerous than any other substance. That has rightly been the focus of taxpayers’ money in terms of grant, but there may be other ways forward to assist those leaseholders trapped in other types of buildings.

Education and Local Government

Debate between Robert Jenrick and Kevin Hollinrake

Tuesday 14th January 2020 Commons Chamber

[Robert Jenrick]

I would be happy to meet the hon. Lady—in fact, I have written to her council leader suggesting that we speak as soon as possible.

We will also invest more in affordable housing. We know that we cannot meet our objectives without more affordable homes. The Government have built 450,000 so far and we intend to go further. We will be replacing our affordable homes programme with a new one and we have lifted the housing revenue account borrowing cap so that councils across the country can build more homes. We want better designed, safer, more beautiful homes, rooted in communities, and we are creating a design code so that every community can have a right to demand good-quality, well-designed homes that work for them.

We are also going to boost home ownership, as a good in itself, because we believe that a home is more than four walls and a roof—it is about someone investing in their future and their family, and putting down roots in a community. As my hon. Friend the Member for Poole said, it is about building an ownership society. We will do that with our next step, on first homes, with a 30% discount for local people buying homes in their community, which was championed by my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake).

We will also ensure that homes that we build in this country are safe. We have learnt a great deal following the tragedy of Grenfell Tower and we know that our building safety regime needs urgent reform. We have two Bills in the Queen’s Speech, one of which is a building safety Bill, which will be the biggest change to our building safety regime in this country for 40 years. That will be a complex piece of legislation that I hope—as the hon. Member for Sheffield South East (Mr Betts), the former Chair of the Housing, Communities and Local Government Committee said—will command cross-party support so that we can build a robust system that lasts into the future.

[Kevin Hollinrake]

On my right hon. Friend’s next step on homes—I appreciate his reference to me—it is an excellent policy that will make home ownership much more affordable for lots of local first-time buyers. Will he consider blending it with Help to Buy to make it even more affordable and therefore even easier for people to get on the housing ladder?

[Robert Jenrick]

I will consider that a Budget bid and pass it on to my right hon. Friend the Chancellor. We will certainly blend it with things such as shared ownership and reform that model to take out some abuses that we have seen in recent years.

In addition to the building safety Bill, we will bring forward another Bill on fire safety sooner than that to ensure that we act urgently on the recommendations of the judge in the Grenfell inquiry. Again, I hope that those Bills can command cross-party support. We will answer some of the questions raised by numerous Members on the position of leaseholders not only through publishing a draft Bill shortly to outlaw leasehold for new homes and to reduce ground rents to a peppercorn, but by listening to the recommendations of the Law Commission and the Competition and Markets Authority to ensure that leasehold works for everyone and is a fair and sustainable system into the future.