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Category: Housing

  • Jeremy Quin – 2022 Statement on Annington Property Ltd

    Jeremy Quin – 2022 Statement on Annington Property Ltd

    The statement made by Jeremy Quin, the Minister for Defence Procurement, in the House of Commons on 27 January 2022.

    The Ministry of Defence—MOD—continues to review its estate to ensure value for money.

    In 1996, the Ministry of Defence, in what was effectively a sale and leaseback agreement, granted a 999-year lease of over 55,000 service family accommodation homes to Annington Property Ltd and immediately leased the homes back on 200-year underleases. In 2018, the National Audit Office concluded in its review of the arrangements that taxpayers are between £2.2 billion and £4.2 billion worse off as a result of the sale and leaseback arrangements.

    Given our obligations to secure value for money, we have reviewed the MOD’S current arrangements with Annington and now set out the steps that the MOD is taking to deliver greater value for money for the taxpayer in relation to service family accommodation.

    First, the MOD engaged highly experienced advisers and counsel to deliver a settlement with Annington in the site rent review process. This settlement achieves value for money, and removes ongoing uncertainty for the Department; we believe it to be a good outcome and a fair settlement. The settlement resulted in a change in the overall adjustment to open market rents from 58% to 49.6%.

    Secondly, the MOD continues to reduce the number of untenanted properties which it holds since these otherwise represent a liability for the taxpayer, by returning these to Annington under the terms of the lease.

    Thirdly, the MOD can confirm that the Department will explore the exercise of its statutory leasehold enfranchisement rights to buy out Annington’s interest in the homes and gain full ownership rights. Initially, the MOD has made a single claim for one house, with the intention to submit a further claim in respect of another house in the near future. It is hoped that this test case will establish certain key principles. The cost of enfranchising these houses will be in accordance with the statutory enfranchisement formula, fixed at the date of the notice of claim, and the price will be agreed between the parties or determined by an independent tribunal. If the cost of recovering full ownership of the units from Annington is less than the present value of the MOD’s ongoing liabilities, such a transaction is likely to represent good value for money. The MOD would then benefit from any future appreciation in value of the units. Accordingly, the MOD has served notice on Annington under section 5 of the Leasehold Reform Act 1967 of its desire to enfranchise a house currently leased from Annington. Annington, through its lawyers, has notified the MOD that it is considering the impact of the claim and has put the MOD on notice of a potential dispute.

    A successful enfranchisement programme would also provide the MOD with more flexibility in the management of its estate to the benefit of defence, tenants, and potentially wider Government objectives.

  • Sadiq Khan – 2022 Comments on the Service Charges Charter in London

    Sadiq Khan – 2022 Comments on the Service Charges Charter in London

    The comments made by Sadiq Khan, the Mayor of London, on 21 January 2022.

    Shared ownership properties can be a helpful first rung on the housing ladder for Londoners. However, too many homeowners have faced a confusing set of fees and charges. Where service charges are incorrectly administered, leaseholders are often drawn into a time-consuming process to challenge.

    Our new Service Charges Charter will help shared owners have a better experience of home ownership, reducing stress and worry. Housing providers also recognise the benefits that following Charter can bring – leading to more efficient services, and a reduction in complaints.

    I’m proud to have hit every single one of my delivery targets in the current Homes for Londoners: Affordable Homes Programme 2016-2023 and I’m determined to continue leading by example, by doing everything I can within my powers to help leaseholders and improve the shared ownership experience for Londoners.

  • Fleur Anderson – 2022 Speech on Cladding in Putney

    Fleur Anderson – 2022 Speech on Cladding in Putney

    The speech made by Fleur Anderson, the Labour MP for Putney, in the House of Commons on 21 January 2022.

    Thank you, Madam Deputy Speaker, for granting this debate on the impact of unsafe cladding in Putney. I thank the Minister for taking the time to respond today. I also thank all those who are watching, who may increase the audience for this debate considerably, as it is on an issue of huge importance to my constituents in Putney, Roehampton and Southfields. I have been campaigning on it for over two years now, since I was elected. It is one of my biggest campaigns, so I am very grateful to be given this time—an unusual amount of time to be able to explain the impact of cladding in Putney, which echoes the stories and experiences of people affected by cladding all over the country.

    First, I thank the UK Cladding Action Group, the Leasehold Knowledge Partnership and the End Our Cladding Scandal campaign, and all the cladding campaigners locally, for campaigning relentlessly on the issue. I am with you in the fight.

    I will talk today about some of the failures of the Government to respond to the cladding crisis. Developers have checked out of many developments that they built shoddily and have moved on. So will the Government really be able to bring them to the table? The building safety fund is failing. It is too slow and has too many exemptions, and there is nothing in the Building Safety Bill to actually protect leaseholders. Will it all be hot air? These are the questions that I will be asking.

    Madam Deputy Speaker, imagine that you had worked really hard and saved for your entire life to buy your first property. You find your dream flat—there are many dream flats in Putney; it is a wonderful place to live—and you have your offer accepted. You invest your life savings to complete the purchase. You buy the flat in good faith, no doubt having been serenaded by an estate agent and after the council searches have come back clean as a whistle. You are good to go ahead. Everything has fallen into place. You have planned your new life and you move into your new home.

    Then you are told, after you have signed on the dotted line, that because of the wanton recklessness and corner cutting of a cowboy developer, your new home is actually riddled with fire safety issues. It is a deathtrap. And you are asked to stump up £50,000 or more to get it fixed. You either do not pay, or you will be forced to pay, or bankrupted. Even if you could pay, it will not get fixed straightaway; it might get fixed in two, three or four years. You do not know what the schedule will be; you are at the mercy of the managing agents and the developers. Until then, you are stuck and, as in many cases, bankrupt.

    It sounds like an absurd situation and something straight out of “Rogue Traders”, but it is actually the exact experience of thousands of leaseholders in Putney, Roehampton and Southfields, and it has happened on the Government’s watch.

    As I will explain, the Government’s announcement last week was welcome. It is a step change and new words. However, it will do little yet to change the reality. It is important to realise that behind the numbers, the surveys and the technical language, there are people who are having their lives ruined. I will say something about the impact that is having on them.

    One constituent said to me:

    “I am living this nightmare every day as this mess continues to drag on. I ask you; you tell me, ‘What’s the point of living a life like this?’ I am starting to get sick again and I’m finding it super hard to carry on.”

    Another constituent has said:

    “I’ve been diagnosed with stress-induced epilepsy and I’m now on medication for the next 5 years as a minimum. I’m at risk of being declared bankrupt, and this may mean I am jobless, as my profession depends on this. Critically vulnerable leasees are facing ever-mounting financial pressures and are unsure they can keep going.”

    Another constituent, who is father to a young family, said:

    “We are like prisoners for the mistake we have not made.”

    He finished by saying something that was painful to read:

    “Do we need to commit suicide to be heard by others on this issue?”

    I have heard similar comments by others who feel desperate.

    Another constituent, who has terminal cancer, wrote:

    “At the moment, I am facing a bleak death. I had hoped I could use the capital from my flat (I own 25%, Notting Hill Genesis own 75%) to either fund future hospice care or transfer to sheltered housing… However, I am unable to sell this flat, and am pretty much trapped here.”

    I could go on. The mental and physical health impact on leaseholders across the country is phenomenal.

    I am afraid that the optimism and good words contained in the Secretary of State’s announcement last week belie a real grasp of what is happening. The urgency of the situation has not been seen by the Government so far, because we are years after Grenfell and we are still in this situation. I have had residents from 30 blocks in my constituency reach out to me in the past two years. I have had numerous meetings with them, with developers and with managing agents, and this is the ninth time that I have spoken about this in the House. I will outline some of the cases because they are good examples not only of what is happening to those people—these are specific cases that need to be addressed by the Government—but of what is being experienced by so many people around the country.

    I will start with the Riverside Quarter, a huge development that was developed and owned by Frasers Property Ltd. Shortly after the Grenfell fire, eight of the buildings failed fire safety tests and Frasers told leasees in the four older blocks that, since it had no remaining financial interest in the buildings, under leasehold law those leasees would have to pay. So it fixed the cladding in four blocks but would not fix it in the other four blocks.

    Although Frasers has been able to secure funding through the building safety fund for three of the four remaining blocks, the fourth block was denied funding due to a slightly different final coat of render being used. The internal fire risks are identical in all four blocks, but this seemingly arbitrary technicality resulted in the Ministry of Housing, Communities and Local Government turning it down.

    On 15 December last year, Frasers sent a notice that under its lease terms it will be charging the 204 leaseholders over £4.2 million for unfunded fire repair costs. Charges per flat will be as high as £72,000, on top of those 204 leaseholders having to pay £170,000 a year between them for waking watch, which they call sleeping watch. This is a prime example of developers who are also freeholders ignoring the Secretary of State’s stated intentions.

    The second development is the Swish building, in east Putney. Over two years ago, unsafe, non-ACM cladding was discovered on the Swish. It has been at stage 2 of the building safety fund application for over a year. The timber part of the application has been rejected and the freeholder, Tapestart Ltd, is nowhere to be seen. Work to fix the cladding should have started in September 2021, yet residents are nowhere even close to receiving approval for funding. There has been delay after delay, with no clear transparency from the managing agent, Trinity Estates.

    Next is 2, 6 and 8 Hardwicks Square. Unsafe cladding was discovered, following an EWS1 assessment in 2018, in which it scored a B2 rating. Residents applied to the building safety fund over a year ago. They were left in the dark about the application for nine months, but then told that there were more defects than had been thought, so the application needed to go back to the drawing board. It is still pending and they are still waiting. They are paying for waking watch to the tune of £45,000 a month and have had an eye-watering 500% insurance hike. The ultimate freeholder is Blackstone, a private equity company. Will Blackstone be speaking to the Secretary of State as part of the roundtable discussions?

    Next door to Hardwicks Square is the Filaments development, where the developer has agreed to pay for remediation. That shows that some developers do pay up, and I commend them, but there are several major fire safety defects. Everyone in the development has been waiting for two years. They have experienced delay after delay, and residents are incredibly anxious. Will the Government set a final deadline for works to be done everywhere, no matter who is paying for them?

    The Radial development has not received funding for the remediation of unsafe, non-ACM cladding found on the block, despite the application having been made in July 2020. What is the delay? It is getting ridiculous. I wrote to the freeholder, the ominously named Godfather Investments, 18 months ago, urging them to take responsibility and I received the following chilling response:

    “We have taken legal advice on the whole issue of liability for unsuitable cladding and it is well documented that in circumstances such as described…the Freeholder has no liability. With respect, we find the suggestions contained in your letter to be wholly disingenuous and counterproductive.”

    I hope that the Secretary of State is also speaking to Godfather Investments, that they have changed their tune and that they will be supporting the remediation of cladding.

    One of the smaller affected blocks is Mill Court development, which is interesting because it is under 11 metres high, so it does not come within the remit of the building safety fund. Yet residents have been told they face costs of around £1 million for remediation works. The Building Safety Minister, Lord Greenhalgh, recently said he was “appalled” when he heard about the case and Optivo’s extensive remediation plans for such a small building. However, Optivo is still intending to move ahead with remediation works, subject to the announcement of further Government guidance. Does the Minister agree with Lord Greenhalgh’s assessment? If buildings under 11 metres are declared unsafe, will they be added to the remit of the Fire Safety Bill?

    Finally, I want to highlight Percy Laurie House, which is over 18 metres and was assessed as having a form of cladding requiring remediation. The residents made an application to the building safety fund, but again it has now been a year since they made it and, despite following up frequently, the application has remained pending for 12 months. It is a familiar story, and it is causing enormous anguish.

    Let me be clear: I welcome many aspects of the recent announcement from the Secretary of State, which echo much of what the Labour party and I have been calling for for the past two years. However, the situation on the ground in Putney exposes several realities that the Secretary of State has not yet grasped. First, what assurances are there that developers are coming to the table? I understand that developers had a meeting with the Secretary of State yesterday: I would like to know who came to that meeting, and for leaseholders to be assured that developers are taking action and things are moving ahead. Can they have hope? Will they be able to sleep at night again? Too many developers I am in contact with seem to have just checked out of the process.

    Secondly, the building safety fund is clearly riddled with serious flaws. It is arbitrarily denying funding for certain types of cladding, and it is painfully slow. Application success seems to rest on the competency of the property manager, rather than the safety of the building. As the constituency MP, I should not need to chase application updates for residents: the whole safety fund needs an overhaul. To give perspective, in two years that fund has only funded 18 out of the 1,000 buildings that need work—that is 1.8%.

    Thirdly, what about buildings under 11 metres? There is a gaping hole there, and as the case of Mill Court shows, withdrawing the consolidated advice note has not stopped fire safety works proceeding and the costs being passed on to leaseholders.

    Fourthly, what about non-cladding defects? Why the omission? We cannot just make a building half safe. I have many constituents facing ruinous costs for non-cladding fire safety defects, who seem to have been abandoned by the Government.

    There is only one way to end this nightmare for leaseholders, which is the one thing that the Government have so far refused to do: put cast-iron legal protections for leaseholders from the costs of remediating any historic cladding and non-cladding defects on the statute book. That could have been done this week through the Building Safety Bill, but was not. The Government still have a few more opportunities to do so, but they are fast running out of time. I seek assurances from the Minister that it will be done. Ministers have promised 18 times to protect leaseholders from ruinous fire safety costs, yet leaseholders in my constituency, at least, still cannot sleep at night for worries about their building and the costs they may have to pay for. I stand with my affected residents and leaseholders in Putney, Roehampton and Southfields, and we say to the Government, “No more hot air. Time to put your money where your mouth is and end this misery.”

  • Eddie Hughes – 2022 Speech on Private Rental Price Increases

    Eddie Hughes – 2022 Speech on Private Rental Price Increases

    The speech made by Eddie Hughes, the Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities, in the House of Commons on 14 January 2022.

    I begin by congratulating the hon. Member for Hornsey and Wood Green (Catherine West) on securing this important debate on insecurity in the private rental market. In a country as great as ours, it should be a basic human right that people, regardless of whether they are home owners, leaseholders or tenants, feel safe and secure in their own home.

    The hon. Lady touched on a number of issues that I am sure are familiar not just to me and my constituents but to Members and constituents across the country. As she rightly pointed out, the private rented sector is the second largest housing tenure in the country—11 million people are housed in that way. In fact, 19% of people in the country live in the private rented sector. It is also housing the most diverse range of people these days. People living in the private rented sector are often older now and families rather than single people.

    Although it is the sector that continues to play a central role in providing housing across the country, it is the housing market that has undoubtedly left thousands of tenants feeling insecure and unprotected. However, this does not need to be the case and it should not be the case. We, the Government, want to shift the odds in favour of renters and deliver a better deal for them.

    People across the country should be able to expect that, when they are signing up to a rental agreement, they will be protected from wrongdoing. There is still much to do for us to reach that point, but the action that we are taking will improve the lives of people right across the country.

    As I stand here today, unfortunately, and as the hon. Lady rightly pointed out, millions of responsible tenants are living in homes in the knowledge that they could be uprooted at a moment’s notice and with minimal justification. That is not peace of mind; that is simply wrong. To give people the confidence they need to be able to plan for the future, we are stepping up with the biggest change in legislation for the private rented sector for a generation by abolishing no-fault evictions—section 21s as they are more formally known. This is the centrepiece of our plans to raise standards across the whole of the private rented sector and reflects our determination to drive out rogue and unscrupulous landlords. Our reforms will deliver a fairer, more effective rental market and, later this year, we will publish the White Paper that sets out the blueprint for the whole sector. I appreciate completely that the hon. Lady is very keen for us to progress, but it is important, given this once-in-a-generation change, that we make sure that we have consulted widely with people from across the sector to ensure that we get it right.

    In the meantime, the hon. Lady can be assured that we are not resting on our laurels. We are engaging with the widest possible range of voices, including stakeholders and organisations from across the sector. As much as we sometimes like to pretend, politicians do not always have the answers. Hearing and listening to these views would not only ensure that the White Paper and future legislation actually address the challenges that exist, but help to create a system that works for everyone.

    As part of a range of actions to address the urgent and pressing needs of the generational pandemic that has arrived on our shores, we acted to keep renters safe in their homes. We banned bailiff evictions, extended notice periods, and provided unprecedented financial support to people and businesses. These measures worked: fewer households were assessed as homeless; there are fewer rough sleepers today; and fewer possession claims are now being made in the courts. We will make sure that build back better is more than a slogan. As we recover from the pandemic, it is right that we do everything we can to improve the security of tenants in the private rented sector and learn the precious lessons from the interventions that we adopted to make sure that we deliver greater protection for tenants and empower them to hold their landlord to account.

    The hon. Lady is right to raise the issue of no-fault evictions. Currently, landlords can evict tenants with as little as two months’ notice once their fixed-term contract has come to an end without even needing to give a reason. The practical implication of this unjust situation is that the tenant can find themselves living with the worry that they may be evicted at the click of a finger. Other tenants continue to endure poor standards for fear that they will asked to leave if they complain about the problems in their home, as the hon. Lady pointed out. That is why the Government are committed to abolishing section 21 of the Housing Act 1988. No longer will tenants find that their landlord is evicting them on a whim with no reason given as to why they have to relocate their lives or disrupt their children’s education. In the future, landlords will always have to provide a specific reason for ending a tenancy, such as breach of contract or waiting to sell the property. It will also help to end revenge evictions where landlords may evict tenants who rightly complain about poor standards, as raised by the hon. Lady. It will protect tenants from having to make frequent and short-notice moves, and will enable them to put down roots and plan for the future.

    In 2019, we consulted the public on our proposed reforms to the tenancy framework and how we should take it forward. About 20,000 people gave us their views, and we are listening. While we continue to drive forward work on sector reform, we also recognise that affordability concerns can cause insecurity for renters, and we are committed to tackling that.

    It is unfortunate to hear of issues that constituents have raised about rent hikes. Under the existing legislative framework, private sector landlords can increase the rent in two main ways. First, during the fixed-term period any rental increases are set out in the tenancy agreement, allowing landlords and tenants to agree arrangements that suit their circumstances. Secondly, once the fixed-term has ended—and if the agreement transitions to a statutory periodic tenancy—a landlord is able to adjust the rent once a year under section 13 of the Housing Act 1988. The landlord must serve a notice to the tenant informing them of the proposed change. If the tenant does not agree with the landlord’s intention, they can refer the matter to the property chamber of the first-tier tribunal for independent adjudication. The tribunal will consider the application and decide what the maximum rent of that property should be if let on the open market, considering, obviously, the conditions of the local housing market. Tenants may also have a rent review clause in their contract.

    We are clear about the fact that it is for landlords and tenants to agree the amount of rent that should be charged at the outset of a tenancy, but the Government are keen to avoid any unintended negative consequences related to abolishing section 21. As part of that, we are determined that there should not be any mechanism for landlords to force a tenant to leave a property by including clauses in tenancy agreements which hike up the rent by excessive or unreasonable amounts just before the agreements are due to expire.

    While three quarters of private renters found it easy to afford their rent, we understand that affordability may be an issue for some, and that they may require additional support. For tenants who are unable to afford their rental payments, a range of support is available through the welfare system, alongside the unprecedented financial package helping renters to afford their housing costs during the pandemic. That has meant that, even given associated pressures of covid-19, the vast majority of renters—93%—are up to date with their rent. That shows that the comprehensive package of support provided by the Government is preventing widespread rent arrears as a result of covid-19.

    I hope we can all recognise that the Government are steadfast in their commitment to building a private rented sector that works for everyone: a sector that introduces a better deal for renters, and improves the lives of people across the country. Ours is a Government who are pursuing reforms that will ensure that good landlords can flourish and continue to provide the homes that the country needs, but it is also a Government who are protecting tenants from sharp practice and removing criminal landlords from the sector, and are building back better from the pandemic. We are committed to rebalancing the relationship between tenants and landlords to deliver a fairer, more secure and more desirable private rented sector. While that will not happen overnight, it will happen. We get it: we understand the challenges that exist in the sector, and we are open to dealing with them. That is why it is so important that we continue to drive through our reforms to ensure that we deliver on our aims.

    We are aware that we need the support of the entire private rented sector if we are to achieve these goals. It is in that spirit that I again thank the hon. Lady for securing this important debate, and assure her that I intend to continue to drive through the Government’s ambitious agenda of reform in the sector.

  • Catherine West – 2022 Speech on Private Rental Price Increases

    Catherine West – 2022 Speech on Private Rental Price Increases

    The speech made by Catherine West, the Labour MP for Hornsey and Wood Green, in the House of Commons on 14 January 2022.

    I called for this debate, and was successful thanks to the Speaker’s office, following the recent shocking treatment of a group of residents in my constituency by their landlord, which brought insecurities in the private rented sector into sharp focus. In November last year, I was contacted by several residents living in a block of flats in Hornsey and Wood Green. After their building was sold to a new landlord, they received either section 21 notices to evict them or section 13 notices saying that their rent was set to soar by an eye-watering 30% to 40%.

    Those tenants included families who had lived there for decades and they were understandably devastated at the thought of losing their homes. Like me, they could not understand how an increase on that scale could ever be justified or how a landlord could kick out reliable long-standing tenants for no reason in the middle of a pandemic.

    I am pleased to say that, following weeks of representations by my office to the new owners, the threat of adverse publicity in our local campaigning newspaper and the help of the charity Shelter and local Hornsey Labour councillors, I learned this week that the new owners had rescinded some of those notices and offered tenants new contracts on more favourable terms. Although that is welcome news for most residents, sadly, for some of them, the landlord’s change of heart two months after the notices were dispatched has come much too late.

    This example highlights the huge power imbalance between private landlords and their tenants, which is currently upheld by existing housing legislation. That is why I am urging the Government to end section 21 notices, as they committed in their 2019 general election manifesto. I am asking the Minister to provide an answer today on when the renters’ reform Bill, promised in the Queen’s Speech, will be introduced.

    In that block of flats in my constituency, seven households were issued with section 21 notices, which enable private landlords to repossess their properties from assured shorthold tenants without having to establish fault on the part of the tenant. Such measures are sometimes informally referred to as no-fault evictions. Many of those householders have lived in their flats for several years, in some cases decades, and are raising their families there.

    One family who were issued with a section 21 notice have been renting their flat since 1991. They raised their daughter there and, now in their 60s, cannot afford a mortgage, because in that period, as the Minister will understand, the average price of a property in a place such as Hornsey and Wood Green has sky-rocketed. After the family challenged their landlord over the notice, they were told that their only other option was to accept a 40% rent increase.

    Another resident whose family were issued with a section 21 notice after living in their flat for five years explained that his family had been left in an extremely difficult and precarious situation. To make matters worse, those notices were issued in mid-November, with section 21 notice recipients expected to find a new home and move over the Christmas period in the midst of a global pandemic. When challenged on that, the new managing agent for the block said that there was no good time to serve a section 21 notice. He is right, but there are some very bad times, and that was one of them.

    Many other tenants in the blocks were issued with section 13 notices of rent rises of up to 40% with as little as four weeks’ notice. One of those residents explained to me that when she moved into her flat as a single parent, she enjoyed the sense of community in the block, which is home to a number of families. The landlord’s aggressive move to increase her rent by 30% to £2,000 per calendar month for a two-bedroom flat in Hornsey would have made it impossible for her to pay.

    The only recourse available to those who receive section 13 notices is to refer them to a tribunal. However, this process can be lengthy, complex, time-consuming and a waste of public funds, particularly for those struggling to access expert advice. Moreover, there is nothing to stop landlords subsequently issuing a section 21 notice if the tribunal decision does not go in their favour. The Mayor of London, Sadiq Khan, who has worked with tenants and landlords to develop a new and fairer tenancy model—the London model—has called on the Government to reform court processes to make it easier for renters to challenge rent increases and eviction notices. He wholeheartedly supports this Adjournment debate.

    Particularly given the Tory household budget crisis, it is an injustice that any landlord should be able to behave in this way. When I contacted Shelter for advice, I was told there is nothing to prevent private owners deciding to take possession on a large scale like this, even during a global pandemic and on the eve of Christmas.

    Living with that level of uncertainty can be detrimental to the wellbeing of our community. Shelter’s survey of private renters in 2021 found that 39% said their housing problems or worries left them feeling stressed and anxious, and many parents have reported to Shelter that the insecurity of renting makes it harder for their children to settle. Living in homes on short, fixed-term contracts with the threat of eviction or a looming unaffordable rent hike makes planning for the future extremely difficult. Frequent moves are not only expensive but disruptive to employment and children’s education.

    Living in constant fear of eviction also makes renters less likely to report disrepair problems, which is an issue I see all too frequently in my constituency, where 17,000 households are privately renting. Shockingly, a quarter of privately rented homes do not meet the decent homes standard, with 14% having a category 1 hazard that poses a very significant safety concern.

    Although there are some actions the local authority can take to ensure landlords address the most serious disrepair, Citizens Advice found that private renters who make a formal complaint to their local authority have a 46% chance of being served with an eviction notice within six months, which is a severe deterrent to reporting disrepair to the local authority.

    Eleven million people, including 1 million children, are now living in rented accommodation. In the past this was just a short-term option before one purchased a home or before one was able to get on a housing list. Now, with 11 million people living in privately rented accommodation in the UK, this has become an urgent issue. The number is expected to grow in the coming years, with 40% of London’s households expected to be living in the private rented sector by 2025. This is no way for the city’s inhabitants to live.

    The last piece of comprehensive legislation affecting the private rented sector was introduced in 1988, when the number was far lower. With a growing number of people affected across the country, the Government need to act urgently. First, when will the renters’ reform Bill be brought to the House? Secondly, when will the Government live up to their promise to build more genuinely affordable homes? By that I mean homes with rent at the level of council rents so that people can afford to save while renting and can get on to the housing ladder if they wish to do so later.

    Everyone has the right to a safe and secure home. It is shameful that, three years after promising to end no-fault evictions, renters such as my constituents in Hornsey and Wood Green are still living with the fear of being made homeless by their landlord due to this Government’s failure to act. I urge the Minister to address these concerns, which are shared by so many in my constituency, across London and across the UK—11 million people are affected in the UK.

  • Sadiq Khan – 2022 Comments on Temporary Visas for Construction Workers

    Sadiq Khan – 2022 Comments on Temporary Visas for Construction Workers

    The comments made by Sadiq Khan, the Mayor of London, on 13 January 2022.

    Tackling London’s housing crisis has always been one of my top priorities since becoming Mayor. We’ve worked tirelessly over the last five years to get London building again, and the construction sector forms a key part of London’s Covid recovery plan. However, both our recovery and efforts to deliver the genuinely affordable homes Londoners desperately need could now be put at risk if there isn’t the skilled workforce available to build them.

    The Government must look beyond their current blinkered approach to immigration and recognise the impending crisis that is already enveloping one of our most vital industries.

    Training our own people to take on jobs in the construction sector is an admirable aim and one we’re working hard to meet but in the meantime, we need skilled tradespeople on site now to manage the short-term crisis and build a strong recovery.

  • Lisa Nandy – 2022 Speech on Building Safety

    Lisa Nandy – 2022 Speech on Building Safety

    The speech made by Lisa Nandy, the Shadow Secretary of State for Levelling Up, Housing and Communities, in the House of Commons on 10 January 2022.

    May I thank you, Mr Speaker, for your kind words about Jack Dromey, who should have been with us here today? There is a space over there that I know Jack would have occupied. Back in the 1970s, horrified by the spectacle of a skyscraper in London that lay empty while people slept rough underneath it, Jack was one of those who occupied Centre Point tower in protest. He was never afraid to speak truth to power, and I hope that today marks the start of all of us across the House invoking his spirit.

    Four and a half years after the appalling tragedy at Grenfell, and with a road paved with broken promises and false dawns, hundreds of thousands are still trapped in unsafe homes, millions are caught in the wider crisis, and the families of 72 people who lost their lives are waiting for justice. It is a relief that we finally have a consensus that the developers and manufacturers who profited from this appalling scandal should bear greater costs, not the victims, and that blameless leaseholders must not pay. After a year of hell of the prospect hanging over leaseholders, we welcome the decision to remove the threat of forced loans, but can the Secretary of State tell us what makes him think that he can force developers, who have refused to do the right thing for four years, to pay up? We have been told there is a March deadline and a roundtable, but there is not a plan. If he has one, can we hear it? He will find an open door on the Opposition side of the House, if he has a credible proposal to bring.

    Today the Secretary of State warned developers that if negotiation fails,

    “our backstop…what we can do…is increase taxation on those responsible”,

    but that is not quite right, is it? I have in front of me the letter from the Chief Secretary to the Treasury. May I remind the Secretary of State what it says? He was told that

    “you may use a high-level ‘threat’ of tax or legal solutions in discussions with developers”

    but

    “whether or not to impose or raise taxes remains a decision for me”

    —the Chief Secretary—

    “and is not a given at this point.”

    If I have seen the letter, I am fairly sure that the developers have too. Furthermore, it appears that what the Secretary of State has told the public—that tax rises are the backstop—is not what he has told the Treasury. The letter says that

    “you have confirmed separately that DLUHC budgets are a backstop for funding these proposals in full…should sufficient funds not be raised from industry.”

    That is not what the Secretary of State told the House a moment ago, so can he clear this up? Has the Chancellor agreed to back a new tax measure if negotiations fail, or is the Secretary of State prepared to see his already allocated budgets—levelling-up funding, or moneys for social or affordable housing—raided? Or is his plan to go back to the Treasury, renegotiate and legislate, if he fails in March? If that is the case, it will take months, and there is nothing to stop freeholders passing on the costs to leaseholders in the meantime. Does he even have an assessment of how many leaseholders will be hit with whacking great bills if he delays?

    If the Secretary of State is serious about going after the developers—I hope that he is—why is he not putting these powers into the Building Safety Bill now? The only trick that he has up his sleeve, as he just confirmed to the House, is to ban them from Help to Buy, and we know that the impact of that, though welcome, will be marginal. Can he see the problem? He will also know that there is a gaping hole in what he has proposed. A significant number of buildings have both cladding and non-cladding defects, and leaseholders in them face ruinous costs to fix things such as missing fire breaks and defective compartmentation. One cannot make a building half safe. Given that the Secretary of State recognises the injustice of all leaseholders caught up in the building safety crisis, why is he abandoning those who have been hit with bills for non-cladding defects, and why will he not amend his Bill so that all leaseholders are protected from historical defects in law?

    The truth is that the pace of remediation has been painfully slow. The Secretary of State is now on track to miss the deadline to fix all Grenfell-style cladding by over half a decade, and there are huge delays when it comes to building safety fund applications, so will he get a grip on what is going on in his own Department and ensure that the progress of remediation is accelerated markedly? As he knows, this has been a living nightmare for affected leaseholders, and we owe it to them to bring it swiftly to an end.

    What the Secretary of State has given us today is a welcome shift in tone and some new measures that the Opposition very much hope will succeed, but the harder I look at this, the less it stands up. We were promised justice and we were promised change, to finally do right by the victims of this scandal, and that takes more than more promises. It takes a plan.

  • Michael Gove – 2022 Statement on Building Safety

    Michael Gove – 2022 Statement on Building Safety

    The statement made by Michael Gove, the Secretary of State for Housing, in the House of Commons on 10 January 2022.

    With permission, Mr Speaker, I would like to update the House on building safety. Before I do so, I can confirm that I have asked the permanent secretary in my Department to conduct a leak inquiry. It was a matter of considerable regret to me that details of the statement that I am about to make were shared with the media before they were shared with Members of this House, and indeed with those most affected.

    It is worth pausing at the start of any statement to reflect on why building safety is an issue of concern to all of us in this House today. It took the tragedy at Grenfell Tower on 14 June 2017, as a result of which 72 innocent men, women and children lost their lives, to put building safety properly on the political agenda. Families were living in a building that was literally a death trap because of failures of enforcement and compliance in our building safety regime. This Government must take their share of responsibility for those failures.

    Over four years on from that terrible tragedy, it is clear that the building safety system remains broken. The problems that we have to fix have been identified by many across this House, from all parties. I would like at this point to register my appreciation of the work that the late Jack Dromey did on this issue. He was shadow Housing Minister for three years and he did a great deal, both as a trade unionist and as the Member of Parliament for Birmingham, Erdington, to bring to light the plight of those affected by this crisis.

    As we know, there are still a small number of high-rise buildings with dangerous and unsafe cladding that have to be fixed. We know that those who manufacture dangerous products and develop dangerous buildings have faced inadequate accountability so far, and shown insufficient contrition. We also need to ensure that we take a proportionate approach in building assessments overall. There are too many buildings today that are declared unsafe, and there are too many who have been seeking to profit from the current crisis.

    Most importantly, leaseholders are shouldering a desperately unfair burden. They are blameless, and it is morally wrong that they should be the ones asked to pay the price. I am clear about who should pay the price for remedying failures. It should be the industries that profited, as they caused the problem, and those who have continued to profit, as they make it worse.

    Mr Speaker, we will take action on all of these fronts. To ensure that every remaining high-rise dangerous building has the necessary cladding remediation to make it safe, we will open up the next phase of the building safety fund early this year and focus relentlessly on making sure it is risk driven and delivered more quickly.

    We will also ensure that those who profited, and continue to profit, from the sale of unsafe buildings and construction products must take full responsibility for their actions and pay to put things right. Those who knowingly put lives at risk should be held to account for their crimes, and those who are seeking to profit from the crisis by making it worse should be stopped from doing so.

    Today, I am putting them on notice. To those who mis-sold dangerous products, such as cladding or insulation, to those who cut corners to save cash as they developed or refurbished people’s homes, and to those who sought to profiteer from the consequences of the Grenfell tragedy: we are coming for you. I have established a dedicated team in my Department to expose and pursue those responsible. We will begin by reviewing Government schemes and programmes to ensure that, in accordance with due process, there are commercial consequences for any company that is responsible for this crisis and refusing to help to fix it.

    In line with this, just before Christmas, I instructed Homes England to suspend Rydon Homes, which is closely connected to the company that refurbished the Grenfell Tower, from its participation in the Help to Buy scheme, with immediate effect. I also welcome the decision by the Mercedes Formula 1 team and Toto Wolff to discontinue sponsorship from Kingspan, the cladding firm, with immediate effect. The voices of the families of the bereaved and the survivors of the Grenfell Tower were heard, but this is only the start of the action that must be taken.

    We must also restore common sense to the assessment of building safety overall. The Government are clear—we must find ways for there to be fewer unnecessary surveys. Medium-rise buildings are safe, unless there is clear evidence to the contrary. There must be far greater use of sensible mitigations, such as sprinklers and fire alarms, in place of unnecessary and costly remediation work.

    To achieve that, today I am withdrawing the Government’s consolidated advice note. It has been wrongly interpreted and has driven a cautious approach to building safety in buildings that are safe that goes beyond what we consider necessary. We are supporting new, proportionate guidance for assessors, developed by the British Standards Institution, which will be published this week.

    Secondly, we will press ahead with the building safety fund, adapting it so that it is consistent with our proportionate approach. We will now set a higher expectation that developers must fix their own buildings, and we will give leaseholders more information at every stage of the process.

    Thirdly, before Easter, we will be implementing our scheme to indemnify building assessors conducting external wall assessments, giving them the confidence to exercise their balanced professional judgment. We will audit those assessments to ensure that expensive remediation is being advised only where it is necessary to remove a threat to life.

    I will be working closely with lenders over the coming months to improve market confidence, and I have asked my colleague Lord Greenhalgh to work with insurers on new industry-led approaches that bring down the premiums facing leaseholders.

    Further, we will take the power to review the governance of the Royal Institution of Chartered Surveyors, to ensure that it is equipped properly to support a solution to this challenge. Those in the industry who refuse to work with us in good faith to take a more proportionate approach should be clear that our determination is to fix the problem for all those caught up in this crisis.

    Finally, we must relieve the burden that has been unfairly placed on leaseholders. I want to pay tribute to all those across the House who have campaigned so passionately on this subject. They know the injustice of asking leaseholders, often young people who have saved hard and made sacrifices to take their first steps on the housing ladder, to pay money they do not have to fix a problem they did not cause, all while the firms who made a profit on those developments sit on their hands. We will take action to end the scandal and protect leaseholders. We will scrap the proposal for loans and long-term debt for medium-rise leaseholders.

    I can confirm to the House today that no leaseholder living in a building above 11 metres will ever face any costs for fixing dangerous cladding and, working with Members of both Houses, we will pursue statutory protection for leaseholders and nothing will be off the table. As part of that, we will introduce immediate amendments to the Building Safety Bill to extend the right of leaseholders to challenge those who cause defects in premises for up to 30 years retrospectively.

    We will also take further action immediately: we will provide an additional £27 million to fund more fire alarms, so we can end the dreadful misuse of waking watches; we will change grant funding guidance so that shared owners affected by the crisis can more easily sub-let their properties, and encourage lenders and landlords to approve sub-letting arrangements; and in the period before long-term arrangements are put in place, I will work with colleagues across Government to make sure that leaseholders are protected from forfeiture and eviction because of historic costs. Innocent leaseholders must not shoulder the burden.

    We have already committed £5.1 billion of taxpayers’ funding from the Government, but we should not now look to the taxpayer for more funding. We should not ask hard-working taxpayers to pay more taxes to get developers and cladding companies making vast profits off the hook. We will make industry pay to fix all of the remaining problems and help to cover the range of costs facing leaseholders. Those who manufactured combustible cladding and insulation, many of whom have made vast profits even at the height of the pandemic, must pay now instead of leaseholders.

    We have made a start through the residential property developer tax and the building safety levy, both announced last February, but will now go further. I will today write to developers to convene a meeting in the next few weeks, and I will report back to the House before Easter. We will give them the chance to do the right thing. I hope that they will take it. I can confirm to the House today that if they do not, we will impose a solution on them, if necessary, in law.

    Finally, we must never be in this position again, so we are putting the recommendations of the Hackitt review on building safety in law and we will shortly commence the Fire Safety Act 2021. We are also today publishing new collaborative procurement guidance on removing the incentives for industry to cut corners and to help stop the prioritisation of cost over value. We will legislate to deliver broader reforms to the leasehold system, and also bring forward measures to fulfil commitments made in the social housing White Paper. When parliamentary time allows, we will have legislation on social housing regulation so that social housing tenants cannot be ignored as those in the Grenfell community were for many years.

    Four and a half years on from the tragedy of Grenfell, it is long past time that we fix the crisis. Through the measures that I have set out today, we will seek redress for past wrongs and secure funds from developers and construction product manufacturers, and we will protect leaseholders today and fix the system for the future.

  • Lindsay Hoyle – 2022 Statement on Michael Gove’s Department Leaking Information to Media

    Lindsay Hoyle – 2022 Statement on Michael Gove’s Department Leaking Information to Media

    The statement made by Lindsay Hoyle, the Speaker of the House of Commons, in the House on 10 January 2022.

    Before I call the Secretary of State to make his statement, I have to express once again my disappointment that important announcements have been made first to the media, rather than to this House. In this case, I accept that issues of market sensitivity meant that announcements had to be made this morning. However, I am told that the announcements were required because of speculation about the policy change over the weekend. That speculation appears to have been substantially accurate, which means that the media appear to have known the details before this House did. If that is the case, I would be grateful if the Secretary of State could confirm that a leak inquiry is to be held.

  • Rebecca Pow – 2022 Comments about Housing Projects and the Environment

    Rebecca Pow – 2022 Comments about Housing Projects and the Environment

    The comments made by Rebecca Pow, the Environment Minister, on 10 January 2022.

    The pandemic has reinforced how much our homes, communities and outdoor spaces mean to us. Our commitment to protecting and enhancing our natural world can and must go hand in hand with our ambition to build more high quality homes.

    Our plans to make sure new developments better protect and enhance wildlife and nature will create better places for people to live and work, and it will ensure we leave our environment in a better state for future generations.