Social Housing (Regulation) Bill [Lords]

Theresa May Excerpts

2nd reading
Monday 7th November 2022 Commons Chamber

[Mrs Theresa May (Maidenhead) (Con)]

I join others in welcoming the Secretary of State for Levelling Up, Housing and Communities back to his role. I thank him for the understanding that he previously showed and continues to show of the importance of social housing issues, and for the kind remarks he made about me.

I welcome the Bill, which has been a long time in the making, but which, critically, responds to the concerns about social housing, the attitude of some social housing landlords and the interaction between social housing tenants and landlords. Those concerns have existed for too long, but they were brought into sharp focus by the terrible tragedy of the fire at Grenfell Tower in 2017.

In the immediate aftermath of the fire at Grenfell Tower, one of the things that became very clear to me in talking to people from the estate, survivors and others was that the people responsible for managing the homes in Grenfell Tower—not just the council, but the tenant management organisation—simply failed to listen to the comments, remarks and concerns that tenants were raising about safety issues. It was not just a one-off comment that a tenant might have made; it was comments, remarks and concerns being raised time and again by the tenants, and no action was taken.

Of course, that was not confined to Grenfell, or even the wider North Kensington estate. Particularly when Housing Ministers were listening to tenants across the country, we saw and heard that that experience was mirrored up and down the country. As has been referred to, my Government published the social housing Green Paper in 2018 and launched a call for evidence as part of a review of social housing regulation. That led to the social housing White Paper in late 2020 and now, at last, we have the Bill.

What was clear throughout that process was that, while many tenants had a positive experience to report, there was a problem at the heart of our social housing system. That is why I welcome the Bill as a means of strengthening the regime of social housing regulation. By the introduction of the new consumer regulatory regime, which will be more proactive, and in enhancing the economic regulatory role and providing new enforcement powers to strengthen the regulator’s role, it aims to ensure that landlords do not just listen but, critically, act when problems are raised. Crucially, the Bill puts the emphasis on making the tenants the focus of landlords’ work, with a particular priority rightly given to safety issues. By enhancing transparency and accountability, the Bill will help to set a different balance between the interests of the tenants and those of landlords, and emphasise the delivery of services to the tenants.

So far, all well and good, but there is an area where I hope the Government will accept there is a desire from many that they should go further. It is an area that the Secretary of State has already referred to: the question of the professionalisation of the sector. I am aware that the Government introduced amendments to address this issue in the other place, and that an amendment from Baroness Hayman of Ullock to go further was narrowly defeated, but I am not convinced that the Government’s proposals fully address the issue.

The Government have introduced requirements for the social housing regulator to set regulatory standards on staff competence and conduct. Once in force, the regulator, in the words of the Minister in the other place, would

“proactively seek assurance that providers are meeting them.”—[Official Report, House of Lords, 18 October 2022; Vol. 824, c. 1029.]

That was an alternative to the other approach, which has been supported by Grenfell United and others, of the Government mandating professional qualifications.

I have looked at the Government’s arguments. The Government have said that the sector is so diverse that mandating a set of qualifications or a single qualification would be too restrictive, that there is no single qualification that would meet the diverse needs of the sector—the Secretary of State referred to that—and that landlords need to have the flexibility to determine what qualifications their staff need. It was also argued that this would make it harder to recruit staff and that there was a risk that it would lead to staff who did not have the right attitudes and behaviours. I find all those arguments extraordinary. Social housing is provided for those in need. Why is it that in other social professions staff are required to be suitably qualified and to be prepared to accept an ethos, a code of ethics or values, yet we are not willing to require that of those employed to manage the homes, particularly the safety of homes, that social housing tenants are living in?

What is more, it is all very well saying that professionalisation would lead to the wrong attitudes and behaviours, but the very reason that we have the Bill today and that we are discussing it is that there are too many people managing social housing with the wrong attitudes and behaviours. I fail to see how making the management of social housing professional—requiring people to have qualifications, saying it is a valuable and worthwhile career, ensuring people have the knowledge and skills needed to do the job—leads to worse outcomes. Professionalising social housing management would, over time, mean that the perception of the role would change. It would come to be seen as a worthwhile career, and would attract more dedicated people interested in what would be seen as a valued profession.

As for the argument that one qualification could not cover all the roles, I am sure the Secretary of State, with his intellect, will soon be able to destroy that argument. There are many ways that that can be approached. We can limit the role that we initially set the qualifications for—to, say, senior management—and allow further qualifications to be developed. We could set up a range of qualifications. They are many ways in which that issue can be addressed; it is not insoluble.

Behind these arguments lies something critical to providing a better future for social housing and social housing tenants, and it has already been referred to by my hon. Friend the Member for Walsall North (Eddie Hughes): we need to remove the stigma of living in social housing. Those who live in social housing should be able to feel proud of where they live, and not feel that people are judging them because they live in social housing. Ensuring the professionalisation of the management of social housing would send a clear message of the value that Government attach to social housing, and the importance of ensuring that those charged with looking after the homes of others have the skills necessary to do that. If we do not care who manages social housing, it is easy to think that we do not care about those who are living in social housing. If we care about those who manage social housing, we show that we care about those who are living in social housing.

[Mr Francois]

I pay tribute to all the work that my right hon. Friend has done in relation to Grenfell, which has been of great importance. I declare an interest as someone who grew up in a council house. I have great sympathy with the argument she makes. Does she agree that as well as qualifications a key thing is attitude, and that people who run housing associations need to have a positive attitude to their tenants and not, as is sometimes the case, a negative one?

[Mrs May]

I absolutely agree. The problem we have seen, and that we saw at Grenfell, was that the attitude was that negative one of just ignoring tenants and not listening to what they were saying. It is essential that people have the right attitude, and see social housing tenants as people who are living in those homes. If people have concerns about their homes and their safety, those concerns should be listened to.

Another objection has been raised about the possibility of professionalisation requiring qualifications for those managing social housing: it would lead to the reclassification by the Office for National Statistics of all social housing providers as public bodies. None of us wants that to happen, and I know the angst that the issue causes in Government, having been there when the last change in the classification of social housing took place. However, no one knows definitely that the ONS would reclassify it in that way, and no one seems to know where the tipping point is regarding how much extra regulation would move such providers into the category of public bodies. Can the Government achieve professionalisation in a way that does not lead to reclassification? Can the regulations be rebalanced to ensure that professionalisation can be brought in and that tipping point is not reached? I welcome the commitment that the Secretary of State made in his speech to work across the House to find solutions and see whether we can find a way through this. I hope that, during the remaining stages of the Bill, the Government will have that conversation with the ONS and will actively seek to table amendments that allow for proper professionalisation of the sector without reclassification.

This important Bill aims to deal with inequities that have been there for too long. It should lead to deeper concern for the needs of social housing tenants, and a greater willingness of all those who are managing social housing to listen to their tenants. However, we should also all aim to remove the stigma that is attached to social housing. That would be of real benefit to all involved. I believe that the professionalisation of social housing management would be a real legacy for the 72 who sadly lost their lives on that fateful night in June 2017.