Category: Housing

  • Mark Menzies – 2023 Parliamentary Question on Reforming the Leasehold System

    Mark Menzies – 2023 Parliamentary Question on Reforming the Leasehold System

    The parliamentary question asked by Mark Menzies, the Conservative MP for Fylde, in the House of Commons on 9 January 2023.

    Mark Menzies (Fylde) (Con)

    Whether his Department is taking steps to reform the leasehold system.

    Richard Fuller (North East Bedfordshire) (Con)

    If he will bring forward legislative proposals to give freeholders rights to directly challenge management and service charges equivalent to those of leaseholders.

    The Minister of State, Department for Levelling Up, Housing and Communities (Lucy Frazer)

    The Government are committed to building on the Leasehold Reform (Ground Rent) Act 2022 and delivering the second phase of our major two-part leasehold reform programme within this Parliament. This will make it easier for leaseholders to purchase their freeholds and will establish greater fairness between those parties.

    bI welcome the steps taken by my right hon. and learned Friend and look forward to seeing them progress into law. Nationally, much of the focus has been on high-rise flats, but in Fylde there are many new housing developments completed in recent years with leasehold issues of their own. In light of that, what action is she taking to ensure that these reforms include those living on recently completed housing developments?

    Lucy Frazer

    I can give my hon. Friend assurance that the many measures we will bring in will affect not only new purchasers but existing leaseholders. We will be bringing forward legislation later in this Parliament.

    Richard Fuller

    In my constituency, Councillor Weir of Great Denham, Councillor Gallagher of Shortstown and Councillor Dixon of Stotfold are leading efforts on behalf of local residents who own a freehold property to challenge excessive fees, lack of transparency and poor service by estate management companies. Will the Minister review the terms of reference of the property ombudsman to make it easier for homeowners—freeholders—to challenge these unfair practices?

    Lucy Frazer

    My hon. Friend is right to highlight unfairness in relation to freeholders. Estate management companies must be more accountable to homeowners on how money is spent to maintain privately managed estates. We will be giving freehold owners on these estates new rights to challenge costs and appoint a manager, as well as requiring private estate management companies to join a redress scheme.

    Andrew Gwynne (Denton and Reddish) (Lab)

    The Minister will know that in some parts of the country, residents are impacted by chief rents. The Rentcharges Act 1977 extinguishes all chief rents in 2037, but many of the property companies that hold the chief rents are now using sharp practices and scams to con their residents out of extra money by sending questionnaires to residents about home improvements they have had. What is she doing to tighten up on these scams and sharp practices?

    Lucy Frazer

    The hon. Member makes an important point, and I know that freeholders are paying charges for maintaining communal areas, known colloquially as “fleecehold”. It is something we are looking at, and I am happy to update him on that.

    Hilary Benn (Leeds Central) (Lab)

    Just before Christmas, a constituent of mine received a service charge bill in respect of her leasehold flat for fire-stopping works. Leaseholders rightly believe they should not have to pay to fix fire safety defects, and they think the Building Safety Act 2022 protects them from having to do so. Can the Minister therefore set out for the House in what circumstances it is still lawful for the owner of a building to charge leaseholders to fix fire safety defects?

    Lucy Frazer

    As the right hon. Gentleman will know, we are taking a number of steps in the Building Safety Act 2022 to strengthen protections for the residents living in these buildings. The Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for North East Derbyshire (Lee Rowley), or I will write to the right hon. Gentleman on his specific question.

    Sir Peter Bottomley (Worthing West) (Con)

    I welcome what the Minister has said about bringing forward legislation, which this House needs to pass as soon as possible, to protect leaseholders in ways put forward by the Law Commission, with proposals commissioned by the Government. Will she also consider how to make leaseholders parties to the building insurance for which they pay the premiums? For some reason, they are not thought to have an interest in it, but they should. That needs to change.

    Lucy Frazer

    I have had a number of conversations with my hon. Friend; I know he is very committed to this area. He will know that we are bringing in legislation in due course that will make it much easier for leaseholders to enfranchise their leases. I am already looking at the particular area that he mentions.

    Justin Madders (Ellesmere Port and Neston) (Lab)

    Last month marked five years since a previous Secretary of State, the right hon. Member for Bromsgrove (Sajid Javid), promised to liberate leaseholders from “feudal practices”. We have obviously had some progress in terms of new builds, but existing leaseholders are still facing the same problems. I recognise the warm words from the Minister, but can she confirm that we will see legislation coming forward this year to deal with all the existing problems that leaseholders face?

    Lucy Frazer

    What I can confirm is that we will be bringing forward legislation in this Parliament to make valuations easier for those extending their leases, to make the lease extension experience easier and cheaper, to make it quicker for freeholders to take control of the management of their buildings with a right to manage and a number of other measures.

  • Lucy Frazer – 2022 Speech on the Levelling Up and Regeneration Bill

    Lucy Frazer – 2022 Speech on the Levelling Up and Regeneration Bill

    The speech made by Lucy Frazer, the Minister of State at the Department for Levelling Up, Housing and Communities, in the House of Commons on 13 December 2022.

    Our houses are not just bricks and mortar; they are homes. And those who live around us are not just our neighbours; they are our communities. We all want to live in streets that uplift our spirits and where our children, and their children, can afford to live and own their own homes alongside us. Churchill once said:

    “We shape our buildings and afterwards our buildings shape us.”—[Official Report, 28 October 1943; Vol. 393, c. 403.]

    So too, if we empower our communities, they will empower us.

    We know that we can do more to ensure that, when we expand our communities, we do so in the right places, with the right infrastructure, and with the support of local people and local representatives. The think-tank Demos asked people whether they would prefer to have more say over how money is spent in their area, or to have more money. People were twice as likely to say that they would prefer to have more say and less money. Our Bill seeks to provide opportunities for collaboration and empowerment. It provides more opportunity for more homes that are beautiful, supported by infrastructure, delivered with democracy, which level up across our country.

    I thank all colleagues for their extensive engagement, highlighting to me, to the Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for Kensington (Felicity Buchan), and to the Secretary of State the issues and concerns in their local areas. All represent different and diverse areas across the country: rural and urban, coastal and remote, island and inner city. I thank in particular my right hon. Friend the Member for Chipping Barnet (Theresa Villiers) and my hon. Friend the Member for Isle of Wight (Bob Seely) for their constructive contribution on this issue and their unwavering commitment to our planning system and their constituents.

    I also thank my right hon. Friends the Members for Ashford (Damian Green) and for Romsey and Southampton North (Caroline Nokes), my hon. Friends the Members for Gosport (Dame Caroline Dinenage), for Aylesbury (Rob Butler), for Rushcliffe (Ruth Edwards), for North Devon (Selaine Saxby) and for Buckingham (Greg Smith), and the many Members across the House who have contributed significantly to our policy decisions on these issues.

    It is important that we build homes this country needs in the places that we need homes most. We have a moral responsibility to get on and build, but we also have a responsibility to our existing communities to do so in the right way and with community support.

    Ruth Edwards (Rushcliffe) (Con)

    My constituents in Rushcliffe are supportive of house building, but they rightly object to being forced to build 660% of the national average, as they were last year, often on greenfield sites and without the infrastructure to match. Can my right hon. and learned Friend confirm that the Bill will give real teeth to our brownfield-first policy and give power back to local people to shape the future of their communities?

    Lucy Frazer

    I was pleased to discuss these issues with my hon. Friend, and she is absolutely right that we must build on brownfield first. That is what local communities want. Through not just this Bill, but the consultation that we will bring forward on the national planning policy framework, we will identify how we can encourage local communities to do just that, with incentives through the infrastructure levy, for example, but through other measures too.

    The way for a community and local representatives to shape their area’s future is through the local plan. At the moment, local plans are taking too long. The system is too onerous and councils feel that their local constraints are not properly taken into account. The result is that fewer than 40% of planning authorities have adopted a plan in the last five years. That means that, instead of developments being delivered coherently and in collaboration with communities, new houses are being imposed on local people through successive planning applications. Through the Bill and the consultation on the NPPF, which we intend to launch before Christmas, we will ensure that the needs of the community are taken into account when a plan is designed. Once the plan is in place, it will provide protection against other unwanted development.

    Mr Clive Betts (Sheffield South East) (Lab)

    I completely agree with the Minister about local plans. The Levelling Up, Housing and Communities Committee has said that on many occasions. May I just ask her, though, whether, in national terms, the Government are still committed to the 300,000 figure, as a target, an objective, an aspiration or whatever and, if they are, how will they achieve that figure unless the numbers agreed in local plans individually throughout the country add up to that 300,000?

    Lucy Frazer

    I can confirm that the Government are committed to building 300,000 homes because we do need those homes across the country and we need to ensure that young people can get on to the housing ladder. As I have just identified, communities are not agreeing local plans with those figures in them, so they are getting development where they do not want it; it is speculative development. What we will see through this measure is communities coming together with that starting point number, but seeing what works for their communities. When they engage properly on it, I think we will see that housing coming through.

    Wendy Morton (Aldridge-Brownhills) (Con)

    My right hon. and learned Friend knows that I am a passionate campaigner for brownfield first. When it comes to this point about communities, it is refreshing to hear that the Government have taken on board the points about including communities in that process, making them feel much more involved. Will she, at some point, be giving us further detail on how that process will work and where the opportunities will be for local communities to feed in their views?

    Lucy Frazer

    I was happy to discuss these very issues with my right hon. Friend, who has written on this issue and I know feels very deeply about it, especially the issue of brownfield land and development. We will ensure that people will build what their local community wants through, for example, not just their local plan, but the mandatory design code. Local areas will have a design code, so that, when a building comes through, it will be in the manner and design that local communities want.

    Sir John Hayes (South Holland and The Deepings) (Con)

    My right hon. and learned Friend will know that, from the time I was the shadow Housing Minister 15 to 20 years ago, to the Building Beautiful, Building Better Commission and now the Office For Place, I have emphasised exactly what she has just described. Too often in the modern age, development has been out of scale and out of keeping with the existing built environment. Will she ensure that local authorities are fully informed of their ability to turn down an application for housing purely on design and scale terms?

    Lucy Frazer

    I know that my right hon. Friend is very interested in these issues and is conscious of beauty and the importance for us to maintain that. Of course local authorities will be able to take their local decisions on those matters that concern them.

    Richard Fuller (North East Bedfordshire) (Con)

    I am pleased to hear what the Minister is saying about improving the efficiency of the process. She will know that my amendment 75 talks about the fact that the guards are down for local authorities when their local plan is in abeyance. That was brought into sharp relief in the village of Harrold. It was only thanks to local councillor Alison Field Foster and the local parish council that development could be stopped. Is what the Minister is saying today going to close that gap to make my amendment unnecessary, or will there still be a liability for local authorities under her plan?

    Lucy Frazer

    I have studied carefully my hon. Friend’s amendments, which are all on interesting points. We do not think that there is a need for those amendments, because there are provisions in the Bill to ensure that local communities can make decisions to protect local communities.

    John Redwood (Wokingham) (Con)

    Can the Minister remind the House how the Government will stop developers gaming a local plan and getting permissions that are not within the local plan under some silly rule?

    Lucy Frazer

    This Bill and the proposals that we are bringing forward through the revised NPPF will do exactly that. At the moment, in 60% of areas, building is through speculative development, not where communities want it. We want to streamline the local plan process, get those plans in place, where communities want it, and then we can start and continue to build.

    Rachael Maskell (York Central) (Lab/Co-op) rose—

    Lucy Frazer

    I will make a little progress, but I am happy to come back to the hon. Member shortly.

    In setting the principles for a local plan, we intend to retain a method for calculating local housing need figures. But these will be an advisory starting point. We propose that it will be up to local authorities, working with their communities, to determine how many homes can actually be built. They will take into account considerations such as the green belt, and the existence of a national park or coast. Building densities should not be significantly out of character with an area. We also propose making changes to the rolling five-year land supply, ending the obligation where a planned strategic housing policy is up to date. Communities will have a powerful incentive to get involved in their local plans.

    Kelly Tolhurst (Rochester and Strood) (Con)

    It is good to hear the policies that my right hon. and learned Friend is outlining. My constituency has a high housing target that is forcing the closure of a working port. How would the options she has just outlined help my constituency keep a working docks instead of seeing the development of high-rise flats?

    Lucy Frazer

    I know that my hon. Friend is a champion for her area, which has seen significant building. I cannot comment on any particular local plans, but an area must consider all the things that it needs to thrive, and that includes houses as well as employment facilities.

    Dame Maria Miller (Basingstoke) (Con)

    I thank the Minister for her words, which are incredibly helpful. Not many constituencies are like Basingstoke, which has built 150,000 houses in the last five decades. Can the Minister give me some comfort that that high level of delivery will be taken into account when future house building needs are decided? At the moment, we have to build 1,400 houses a year, which is just not sustainable, not least for the NHS.

    Lucy Frazer

    I thank my right hon. Friend, and I was pleased to talk to her about her concerns, because I know that she is a huge advocate for her area. I can give her that comfort that we think it should be taken into account if areas have already over-delivered and taken significant housing. That should be taken into account when putting together the local plan.

    Rachael Maskell

    Further to the point that the hon. Member for Rochester and Strood (Kelly Tolhurst) made, when developers build luxury flats that the local community often cannot afford it adds nothing to the housing numbers that need to be delivered. How will the Bill address that issue?

    Lucy Frazer

    We are taking a variety of approaches. We emphasise the importance of variety, not just in the types of accommodation provided but in the type of buildings. That is how we get more housing supply, because we will have more uptake. We are also committed to more affordable homes, and we have a £11.5 billion fund to ensure that we get those homes built.

    The Bill respects communities, but it also respects the environment. Central to our reforms will be a new system for assessing the impact of development on the environment. The system will replace the bureaucratic maze that we inherited from the EU. We will replace it with a system that is just as protective, but is outcomes based, not systems driven.

    Clearly the Bill will not achieve the perfect planning system for every Member, councillor and constituent, when we all live in diverse areas with conflicting needs and interests, but I hope that the amendments will go even further towards improving our planning system.

    Andy Carter (Warrington South) (Con)

    My right hon. and learned Friend will know that Warrington, as a new town, has seen thousands and thousands of homes built in the last 50 years. It is currently in the process of agreeing its local plan—the local planning inquiry finished just last week. I am pleased to hear today that many of the suggestions will be put into law. Can she confirm that there will be a period in which local plans are paused before they are agreed and adopted? Many of the proposals she talks about today are fundamental to making the changes that we need to see in local plans.

    Lucy Frazer

    I can give a confirmation that there will be some transitional provisions enabling local councils to proceed with the plan that they are about to adopt, but if they want to reflect, there will be an opportunity to do that as well. We believe that we are improving the system through the measures that we have set out.

    Caroline Lucas (Brighton, Pavilion) (Green)

    Does the right hon. and learned Lady accept that we also need to level up access to green space and nature? Right now, the distribution of green space is very unequal; many people on the lowest incomes simply do not have access to green space at all. Will she look at my new clause 13 and look again at the whole issue of ensuring a right of access to good green space?

    Lucy Frazer

    As I mentioned just now, the Bill is not just about building; it is also about protecting the environment. A number of measures in the Bill will ensure that we protect our natural spaces—30% of our nature—and our local nature recovery strategies, which are due to begin across England as soon as possible, were committed to in the Environment Act 2021.

    Bob Seely (Isle of Wight) (Con)

    Does my right hon. and learned Friend agree that, following the talks between Ministers, my right hon. Friend the Member for Chipping Barnet (Theresa Villiers) and me, we should have reached a compromise on a much more community-led, environmentally friendly and regenerative housing policy? As the Minister can hear, however, there is still considerable concern about making sure that we deliver the substance of these things as well as simply the words around them. Will that be reflected in the NPPF?

    Lucy Frazer

    I reiterate my thanks to my hon. Friend, who has worked so hard with my right hon. Friend the Member for Chipping Barnet to make sure that we get our planning system right, on behalf of and with so many colleagues on our Benches. I assure him that we in the Department for Levelling Up—me and the Secretary of State—believe that we have come to a better solution. We are committed to delivering it, as I am sure my hon. Friend and others across this House will see in the policy that we will propose in the NPPF and bring forward before Christmas.

    Mike Amesbury (Weaver Vale) (Lab) rose—

    Lucy Frazer

    I will make a little progress, because I would like to address the Government amendments, which I will do in five categories. First, we are making it easier for people to develop where they want to develop, and where it delivers the best gain to the community and ensures that planned-for development actually happens. I will highlight five measures in this first category.

    Through new clauses 49 to 59, we will pilot community land auctions. They will seek to increase the supply of land and aim to capture more land value more effectively to the benefit of the local community. Planning permission will not be granted automatically on sites allocated in the local plan through the auction process.

    Through new clauses 60 and 69, we are allowing for street votes enabling residents to come together and propose additional development on their streets in line with their preferences—subject to meeting prescribed requirements—and vote on whether it should be given permission. In speaking to those new clauses, I would like to acknowledge the work of my hon. Friend the Member for Weston-super-Mare (John Penrose) and the “Strong Suburbs” report by Policy Exchange.

    We are making it easier for people to access suitable plots to build their own homes. We are building on the immense work of my hon. Friend the Member for South Norfolk (Mr Bacon). We recognise the importance of self-build and custom housebuilding, and new clause 68 clarifies the duty on authorities to provide for plots for such homes in their planning decisions.

    We will also seek to reduce barriers to smaller-scale developments that communities can easily get behind. I know that my hon. Friend the Member for Northampton South (Andrew Lewer) has worked significantly on that area. I can confirm that our intention is to consult on changing national policy to encourage greater use of small sites, especially those that will deliver higher levels of affordable housing.

    Importantly, we are ensuring that when permissions are given, developments can be built out quickly. New clauses 48 and 67 deal with that. Members across the House have been concerned about the rate at which development occurs once planning permission has been granted. It is wrong for developers simply to sit on planning permissions, because that increases the number of permissions that have to be granted and risks overdevelopment. The Bill introduces further steps to tackle the issue, including a requirement for developers to report on the rate at which they build, and allowing authorities to deny permission for further development on the same sites where the developers have failed to build out. All those measures will encourage development where people want it and where they have agreed to have it.

    Mr Betts

    I am not sure whether the Minister has looked at my amendments to her new clause 67. I agree with her about ensuring that builders build out at the required rate. However, some builders build out while ignoring the conditions for the planning permission put on them. I have a really bad case of that in my constituency with Avant Homes, which does not connect with local people, puts mud all over the roads and puts silt in the local brook—that sort of thing. Will she accept that local councils should be entitled to take account of failures to observe conditions when looking at future planning applications?

    Lucy Frazer

    We are looking at the issue carefully and will consult on further measures that we might be able to bring forward. I assure the hon. Gentleman that where there are reasonable avenues that we can explore, we will look closely at them.

    Dame Maria Miller

    I want to build further on that intervention with regard to building out. In my constituency, many of those who have built out and built houses have not done so to the required quality, leaving many residents having to seek significant remedial works. However, my local authority is not allowed to take that into account when giving future permissions. Could the Minister look at consulting on that? Surely we should be encouraging quality over quantity.

    Lucy Frazer

    I am happy to discuss that issue further with my right hon. Friend. As I mentioned, we are very concerned about build-out to increase the number of homes, and I know that the Secretary of State feels strongly about quality.

    The second set of measures that we are introducing by way of amendments relates to infrastructure, because put simply, we cannot have houses without services to support them. Through the Bill, we will replace the existing system with an infrastructure levy—a non-negotiable liability for the developer based on the value of the development. Our plan is to implement the levy in stages so that we can adapt it according to the latest data and the latest evidence.

    Thirdly, we are protecting the environment. On top of our environmental assessment reforms, new clauses 77 to 79 will support the Government’s efforts to protect and enhance our natural environment. We are creating an obligation on water companies to go further to address nutrient pollution and clean up our rivers. That will unlock thousands of new homes, complemented by new wetland and woodland areas, improving people’s access to green space and delivering new habitats for nature. I am grateful to the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Taunton Deane (Rebecca Pow), for her support and to the Secretary of State for Environment, Food and Rural Affairs for working with us so closely to achieve these ends.

    Fourthly, we recognise that some areas—Devon and Cornwall, for example—have particular problems with short-term lets, which, while attractive as a tourist industry, mean that large parts of an area have limited long-term residents, creating a real problem for local services. I am grateful to a number of colleagues for highlighting and campaigning on that. I thank my hon. Friends the Members for North Devon, for Cities of London and Westminster (Nickie Aiken), for Totnes (Anthony Mangnall), for Truro and Falmouth (Cherilyn Mackrory), for North Cornwall (Scott Mann) and for St Austell and Newquay (Steve Double) as well as others for the work that they have done. As a result of the points that they have raised, we intend to deliver a new registration scheme for short-term lets, starting with a further consultation on the exact design of the scheme, which will launch before the summer recess.

    We will go even further by also consulting on a change to the Town and Country Planning (Use Classes) Order 1987 to enable local areas to better control changes of use to short-term lets, if they wish. Furthermore, the consultation on changes to use classes and the introduction of national permitted development rights to enable change of use where there is no local issue will be launched early next year.

    Tim Farron (Westmorland and Lonsdale) (LD)

    I am very grateful to the Minister for taking an intervention and for the time she gave me last week to discuss this matter. Can she clarify whether it is now the Government’s intention to make short-term lets a separate category of planning use following the consultation? If so, when would that come in? Will she also ensure that planning departments have the resources to enforce that?

    Lucy Frazer

    I am grateful to the hon. Gentleman for speaking on this issue and indeed other issues on this topic. We are committing to consulting on the issue. We propose to consult early in the new year. Following that consultation, we hope to bring in some legislation, if that is the result of the consultation. There is a very tight timetable both for that and the registration scheme, and the registration scheme will be coming through in autumn.

    Rachael Maskell

    Will the Minister explain why she is not bringing in a licensing scheme that would enable local authorities to determine areas where they could exclude the expansion of Airbnbs or control licences where it was appropriate to do so?

    Lucy Frazer

    We are bringing through a very important first step to identify where people have short-term lets across the country and where there are local issues. We know there are issues in some local areas, but not in others. We want to establish where they are and where they are causing issues for local communities, so we can make evidence-based policy and bring forward action to ensure those communities are not hollowed out, that people live there and that they can get the services they need. I emphasise that that builds on other action the Government have taken to ensure that we act and that people living in those communities get the support they need.

    Fifthly, we are making the process work better. The Bill makes it easier to create new, locally led urban development corporations that can be the planning authority for large-scale development. We are also ensuring that all types of development corporation can have the planning powers they need. In support of that, Government amendments 34 and 36 make technical changes. Through Government new clause 64, we are facilitating charging by statutory consultees for nationally significant infrastructure projects. This recognises that commenting can be a resource-intensive exercise, and we do not want valuable advice to delay development. In addition, the Secretary of State will be given powers to commit the Marine Management Organisation to increase its fees for post-consent marine licensing monitoring, variations and transfers.

    Our amendments focus on making the planning system, and the systems that interact with it, work better, innovating and improving for the benefit of all our constituents.

    Philip Dunne (Ludlow) (Con)

    Madam Deputy Speaker, I apologise for not arriving for the beginning of my right hon. and learned Friend’s remarks. On the third group of amendments, on nutrient neutrality, may I applaud the Government for the work they are doing in trying to ensure that water companies take full responsibility for their discharges into our waterways? This is an extremely important and powerful set of amendments, and I applaud her for that. In that context, and in the context of both community land auctions and the infrastructure levy, is it the case that water companies can be in receipt of both those sources of funding in the event that local authorities deem it an appropriate use either of the infrastructure levy or funds arising out of community land auctions? At present, they do not appear to be. Can they become statutory consultees on significant developments, which at present they are not?

    Lucy Frazer

    I am grateful for my right hon. Friend’s intervention, because I know he has done significant work on this issue. The Department for Environment, Food and Rural Affairs announced future funding from fines handed out to polluting water companies being invested in schemes for the benefit of our natural environment. I know he did a lot of work on that issue.

    On the infrastructure levy, water and waste water networks are covered by the broad definition of infrastructure, so the answer to my right hon. Friend’s question on that issue is yes. On statutory consultees, the Secretary of State can make changes to the list of statutory consultees through secondary legislation, and we will consult on whether to make water companies statutory consultees, and if so, how best to do that.

    Greg Smith (Buckingham) (Con)

    Before the last intervention the Minister mentioned improving communities. I am grateful for the time she has spent with me in the last few weeks discussing this Bill, but will she give some clarity on amendment 2, on including childcare provision within the infrastructure definitions? Conversations with her outside this place indicate that she feels it would be included, but can she give me and the hon. Member for Walthamstow (Stella Creasy), in whose name the amendment stands, the reassurance that childcare provision would be included?

    Lucy Frazer

    My hon. Friend is a strong advocate for his area; I have dealt with him in a number of Departments, and he stands up for his community on every issue. I am grateful for the work he has done to make sure the Bill overall comes out in a good place, and I know he has also spoken to my colleagues on a number of issues.

    On the amendment on childcare, I should emphasise that there is a list of what constitutes infrastructure for the infrastructure levy, and it is a non-exhaustive list, so it will be possible for other items to be included. It is drafted purposefully to give local authorities wide powers to apply the levy to infrastructure that is important and needed in their local area. It contains illustrative examples of what might be included as infrastructure, but in any event the levy will be able to be spent on childcare facilities such as nurseries and pre-schools, as these fall under the definition of

    “schools and other educational facilities”

    already included in the list.

    Stella Creasy (Walthamstow) (Lab/Co-op)

    I know the Minister has tried to take account of these concerns, but from what she has just said, it is not the case that childcare would, unless it is connected to a school, be considered part of this. So what amendment 2 does is set out that, whether it is a nursery, a toy library or a childminding setting, if local councils felt that was something that needed to be done, they could work with developers to deliver it. Will she make that commitment, and most importantly will she write it down? It is one thing to make a commitment at the Dispatch Box, but those of us who have dealt with local government know that it needs to be in the guidance and regulations for us to truly declare that childcare is infrastructure.

    Lucy Frazer

    I totally understand the hon. Lady’s points, and it is crucial that children get the support, care and education they deserve. It must be the case that nurseries and pre-schools fall within the definition of

    “schools and other educational facilities”,

    which is in the list at proposed new section 204N(3)(c). There is also a question about the provision of the care within that: that would not fall within the definition of infrastructure per se, but proposed new section 204N(5) allows regulations to make provision about when local authorities could apply levy money to non-infrastructure items, which could include subsidising the cost of childcare places for parents and carers if this was considered a priority by the local area.

    I want to give Members across the House an opportunity to speak in this debate. We believe that our amendments focus on making the planning system, and the systems that interact with it, work better, innovating and improving for the benefit of all our constituents, and I commend them to the House.

  • Dehenna Davison – 2022 Statement on the Community Ownership Fund

    Dehenna Davison – 2022 Statement on the Community Ownership Fund

    The statement made by Dehenna Davison, the Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities, in the House of Commons on 12 December 2022.

    Over the weekend I was delighted to announce the outcome of round 2 window 1 of the £150 million Community Ownership Fund, which will see £6.7 million awarded to 32 projects across the United Kingdom. Combined with round 1 projects, this additional funding takes our overall funding total to £16.7 million for 70 projects.

    This targeted support is delivering much needed investment to ensure that important parts of our social fabric, such as pubs, sports clubs, theatres and post office buildings, can continue to play a central role in towns and villages across the United Kingdom. In this round we will be funding a diverse range of projects, from the Margaret Haes Riding Centre in Bury to the Llandyrnog Community Shop in the Vale of Clwyd.

    The Community Ownership Fund is helping to reduce geographical disparities across the United Kingdom. To this end, the funding provided in round 2 window 1 will see over £800,000 awarded to projects in Scotland, £1.1 million to Wales and £555,000 to Northern Ireland. This, so far, brings the total funding awarded across Scotland, Wales and Northern Ireland to £4.9 million collectively.

    The funding provided in round 2 window 1 will also see £4.2 million awarded to projects in England. This brings the total funding awarded across English regions to £11.8 million collectively.

    The projects supported by the Community Ownership Fund, such as the United Kingdom’s most remote pub, The Old Forge in Scotland, Ballymacash Sports Academy in Northern Ireland, and the Leigh Spinners Mill in Greater Manchester, are already making a genuine difference to their communities. With the additional investment awarded in this bidding window, I am delighted to be supporting many more small but mighty local assets across the United Kingdom, levelling up the places we love and cherish.

    Interested groups can submit an Expression of Interest form to start their application process at any time. With a four-year window until 2024-25 for investment to be released, there is plenty of opportunity for interested community groups to apply to take over invaluable community assets and to run them as businesses—by the community, for the community.

  • Stuart Andrew – 2022 Speech on the Short-term and Holiday-let Accommodation Licensing Bill

    Stuart Andrew – 2022 Speech on the Short-term and Holiday-let Accommodation Licensing Bill

    The speech made by Stuart Andrew, the Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport, in the House of Commons on 9 December 2022.

    I thank the hon. Member for York Central (Rachael Maskell) for bringing this important debate to the House and for her diligence in continuing to highlight this important matter. I know that we had a lot of exchanges while I was the Minister for Housing, and I am sorry that we never got around to doing the roundtable I promised to do with her in her constituency.

    The short-term and holiday letting sector is a matter of considerable interest across all parties, and many hon. Friends have raised it with me, too. I am sure it will continue to be a big issue. The voices that we have heard are key to keeping this debate going and I offer my thanks to the hon. Lady.

    The short-term and holiday letting of residential accommodation to paying guests is not a new phenomenon in this country. We have long been able to boast about the quality and range of England’s guest accommodation offer. The quintessential English bed and breakfast, holiday cottage or homestay have been important parts of our accommodation offer for many years. They have long catered for the needs of tourists, those travelling for work or people in need of temporary accommodation. However, it is clear that, over the past 10 to 15 years, there has been a rapid and significant growth in the short-term and holiday letting market, which has changed the shape and size of England’s guest accommodation sector.

    At the heart of that change has been the emergence of the sharing economy. Online platforms have played a key role in making it easier to connect homeowners who want to rent out their accommodation with people who are looking for a place to stay for a short period. I want to be clear that the rise of these online platforms and the subsequent expansion of the short-term and holiday let market has been beneficial for hosts, consumers and the wider visitor economy. I am sure that many Members attending the debate today will have made use of them themselves, as will many of their constituents. At the same time, however, we must recognise that this expansion has created challenges and concerns in some of our communities.

    Chris Clarkson (Heywood and Middleton) (Con)

    Obviously we are still facing a housing crisis in this country and, while I completely agree that short-term lets go some way to helping our tourism economy recover from the after-effects of covid-19, does the Minister agree that we need to strike the right balance between the usage of private rented accommodation for short-term lets and ensuring that there are enough good-quality affordable homes available for people who would want to buy or rent them?

    Stuart Andrew

    I absolutely agree with my hon. Friend that we need to have a measured and effective approach, and I will come on to that shortly.

    Rachael Maskell

    On the issue of the private rented sector, the reason why so many are flipping is the inequality within the tax system, where landlords can no longer gain tax benefit as a result of the improvements they make to their property. We clearly now have an inequitable situation. Does not the Minister agree that that is why it is so important to bring forward tighter regulation to license these properties?

    Stuart Andrew

    I do. There are many complex issues around this important point, and the hon. Lady highlights one of them. During my time as the Minister for Housing, I was speaking to colleagues across Government about various solutions we could come up with, and I hope to elaborate on that a bit more in a moment.

    Our ambition has been and will continue to be to ensure that we sustainably reap the benefits of short-term lets and holiday lets, while protecting the interests of holidaymakers and local communities. The Government have recently taken a series of steps that we are confident will help us to achieve our ambition for the sector. The Government have recognised for some time now that there are significant concerns that need to be investigated further. That is why, in last year’s tourism recovery plan, we set out our intention to consider a tourist accommodation registration scheme in England. That forms part of the Government’s ambition to create a more innovative, resilient and data-driven tourism industry.

    There is, unfortunately, a lack of information and data on the short-term lets market in England. That is why our first step was to carry out a call for evidence, which ran from 29 June to 21 September this year. We had two key aims for that call of evidence. Our first aim was to hear from a range of stakeholders, to help us to develop a fuller understanding of the current market. Our second aim was to use the data and information we gathered to develop policy options. To do that, we asked questions about the changes and growth that have been evident in the market, the benefits and the challenges of short-term lets and the impact of potential policy responses. In total, we received 4,000 responses from all manner of individuals and organisations located throughout the country. Those included hosts operating in the market, guest accommodation businesses, online platforms, enforcement agencies such as local authorities and representative bodies and groups.

    That brings me on to the next steps we are taking to improve the short-term lets sector. The call for evidence highlighted that there is a case to introduce light-touch regulation in this currently unregulated sector. The Government are therefore introducing a registration scheme for short-term lets through an amendment to the Levelling-up and Regeneration Bill tabled on Wednesday 7 December. There are a number of benefits to introducing a registration scheme. It will deliver much-needed data and evidence on short-term letting activity across England, providing transparency on the numbers and locations of short-term lets for local authorities, central Government and enforcement agencies. It will improve consistency and coherence in the application of statutory health and safety regulations. It will boost England’s reputation as a destination for visitors, and it will help to attract more international visitors by giving a visible assurance that we have a high-quality and safe guest accommodation offer for all. Finally, it will support local authorities where a high number of short-term lets are deemed to be impacting their local housing market.

    Local authorities have highlighted the challenge of accurately assessing the scale of short-term lets in their areas, often having to rely on data from third party providers. As there are some questions over the reliability of that data, a registration scheme would provide local authorities with better information on short-term letting in their area. A consultation on the design of the scheme will be carried out next year before the summer recess. For those reasons, the registration scheme should be seen as a significant step in our policy approach to the short-term lets sector.

    Rachael Maskell

    Does the Minister realise that over that period, another 6,525 properties—29 a day—will flip over to become short-term holiday lets? Surely we need to get on with licensing now.

    Stuart Andrew

    I hope that I have indicated how seriously the Government take this issue, but it is right that we do this properly and make sure we get as much data as possible, so that we really know the position we are facing.

    The registration scheme is an altogether different step from the licensing scheme put forward in the Bill. As the Government are already progressing with the registration scheme that I have outlined, I am afraid we cannot support the Bill. None the less, the Government recognise that a registration scheme alone will not address all the challenges that have been highlighted today, particularly in the case of housing. The Government are aware of calls for changes to the planning system. Currently, planning permission is not normally required when an existing house starts to be used as a short-term let. We therefore propose to consult next year on whether planning permission will more often be required when a house seeks to start to be used as a short-term let and for new short-term lets, especially in tourist hotspots.

    Today’s debate has also touched upon concerns that landlords may be prioritising short-term letting activity instead of long-term tenancy agreements. This has limited the ability of local people to secure affordable private rented sector properties. The Government are also committed to giving private renters a better deal, with greater security of tenure and safer, higher-quality homes. On 16 June, we published our White Paper, “A Fairer Private Rented Sector” which sets out our plan to fundamentally reform the sector and level up housing quality in this country. Since then, we have also committed to banning section 21 no fault evictions to protect tenants.

  • Michael Gove – 2022 Statement on the Planning System

    Michael Gove – 2022 Statement on the Planning System

    The statement made by Michael Gove, the Secretary of State for Levelling Up, Housing and Communities, in the House of Commons on 6 December 2022.

    I will be making further changes to the planning system, alongside the Levelling Up and Regeneration Bill, to place local communities at the heart of the planning system.

    I will set out more detail on the following approach in an upcoming National Planning Policy Framework prospectus, which will be put out for consultation by Christmas.

    Community Control

    I will retain a method for calculating local housing need figures, but consult on changes. I do believe that the plan-making process for housing has to start with a number. This number should, however, be an advisory starting point, a guide that is not mandatory. It will be up to local authorities, working with their communities, to determine how many homes can actually be built, taking into account what should be protected in each area—be that our precious Green Belt or national parks, the character of an area, or heritage assets. It will also be up to them to increase the proportion of affordable housing if they wish.

    My changes will instruct the Planning Inspectorate that they should no longer override sensible local decision making, which is sensitive to and reflects local constraints and concerns. Overall this amounts to a rebalancing of the relationship between local councils and the Planning Inspectorate, and will give local communities a greater say in what is built in their neighbourhood.

    Local Plans

    We will end the obligation on local authorities to maintain a rolling five-year supply of land for housing where their plans are up-to-date. Therefore for authorities with a local plan, or where authorities are benefitting from transitional arrangements, the presumption in favour of sustainable development and the ‘tilted balance’ will typically not apply in relation to issues affecting land supply.

    I also want to consult on dropping the requirement for a 20% buffer to be added for both plan making and decision making—which otherwise effectively means that local authorities need to identify six years of supply rather than five. In addition, I want to recognise that some areas have historically overdelivered on housing—but they are not rewarded for this. My plan will therefore allow local planning authorities to take this into account when preparing a new local plan, lowering the number of houses they need to plan for.

    Places with existing plans will benefit from the changes above, as they will be free of five-year land supply obligations provided that plan is up to date. However, I am aware that those with local plans at an advanced stage of preparation will not benefit from these changes so I will also put in place transitional arrangements. Where authorities are well-advanced in producing a new plan, but the constraints which I have outlined mean that the amount of land to be released needs to be reassessed, I will give those places a two year period to revise their plan against the changes we propose and to get it adopted. And while they are doing this, we will also make sure that these places are less at risk from speculative development, by reducing the amount of land which they need to show is available on a rolling basis—from the current five years to four.

    I will increase community protections afforded by a neighbourhood plan against developer appeals—increasing those protections from two years to five years. The power of local and neighbourhood plans will be enhanced by the Bill; and this will be underpinned further through this commitment. Adopting a plan will be the best form of community action—and protection. Furthermore, we will clarify and consult on what areas we propose to be in scope of the new national development management policies, and we will consult on each new policy before it is brought forward by the Government. National development management policies will also not constrain the ability of local areas to set policies on specific local issues.

    I will consult on the detail of proposals increase planning fees, including doubling fees for retrospective application where breaches of planning have occurred, as soon as possible. I will also consult on a new planning performance framework that will monitor local performance across a broader set of measures of planning service delivery, including planning enforcement.

    Build Out

    I already have a significant package of measures in the Bill to ensure developers build out the developments for which they already have planning. I will consult on two further measures:

    on allowing local planning authorities to refuse planning applications from developers who have built slowly in the past; and

    on making sure that local authorities who permission land are not punished under the housing delivery test when it is developers who are not building.

    I will also consult on our new approach to accelerating the speed at which permissions are built out, specifically on a new financial penalty.

    Character of a Developer

    I have heard and seen examples of how the planning system is undermined by irresponsible developers and landowners who persistently ignore planning rules and fail to deliver their legal commitments to the community. I therefore propose to consult on the best way of addressing this issue, including looking at a similar approach to tackling the slow build out of permissions, where we will give local authorities the power to stop developers getting permissions.

    Brownfield First

    The new infrastructure levy will be set locally by local planning authorities. They will be able to set different levy rates in different areas, for example lower rates on brownfield over greenfield to increase the potential for brownfield development. That will allow them to reflect national policy, which delivers our brownfield first pledge by giving substantial weight to the value of using brownfield land.

    I will consult to see what more we can do in national policy to support development on small sites particularly with respect to affordable housing and I will launch a review into identifying further measures that would prioritise the use of brownfield land. To help make the most of empty premises, including those above shops, I am reducing the period after which a council tax premium can be charged so that we can make the most of the space we already have. I will also provide further protection in national policy for our important agricultural land for food production, making it harder for developers to build on it.

    The Housing Market

    I intend to deliver a new tourist accommodation registration scheme as quickly as possible, working with DCMS, starting with a further short consultation on the exact design of the scheme. I will also consult on going further still and reviewing the Use Classes Order so that it enables places such as Devon, Cornwall, and the Lake District to control changes of use to short term lets if they wish.

    I have also asked the Competition and Markets Authority to consider undertaking a market study. I believe the case is clear for it to take this forward, but respect its independence as it comes to a decision.

    These reforms will help to deliver enough of the right homes in the right places and will do that by promoting development that is beautiful, that comes with the right infrastructure, that is done democratically with local communities rather than to them, that protects and improves our environment, and that leaves us with better neighbourhoods than before.

  • Gerald Jones – 2022 Parliamentary Question on the Local Housing Allowance

    Gerald Jones – 2022 Parliamentary Question on the Local Housing Allowance

    The parliamentary question asked by Gerald Jones, the Labour MP for Merthyr Tydfil and Rhymney, in the House of Commons on 5 December 2022.

    Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)

    What assessment his Department has made of the potential impact of real-term reductions in local housing allowance rates on levels of poverty.

    The Secretary of State for Work and Pensions (Mel Stride)

    First, on behalf of the whole House, may I welcome the hon. Member for City of Chester (Samantha Dixon) to this House, and wish her every happiness and a productive time in the House?

    The Government have maintained the uplift they provided in the local housing allowance in 2020, at a cost of almost £1 billion, targeting the 30th percentile of rents. Those who need assistance with housing costs also have recourse to the discretionary housing payments administered by local authorities.

    Gerald Jones

    I welcome the Secretary of State’s comments about my new colleague, my hon. Friend the Member for City of Chester (Samantha Dixon), but that is as far as I can go.

    The local housing allowance is a lifeline for tenants to access the private rented sector. The Government have accepted the need to uprate most benefits in line with inflation, so why have they chosen to freeze the local housing allowance, which will have a disproportionate impact on constituents in my constituency of Merthyr Tydfil and Rhymney? Will he commit to reviewing that situation urgently?

    Mel Stride

    As the hon. Gentleman will know, annually I review all benefits, including LHA—indeed, around this time next year, I will do precisely that. It has to be borne in mind that we are currently spending almost £30 billion a year on housing allowance and that figure is expected to increase to around £50 billion by 2050, so there are cost considerations.

  • Michael Gove – 2022 Statement on the Homelessness Prevention Grant

    Michael Gove – 2022 Statement on the Homelessness Prevention Grant

    The statement made by Michael Gove, the Secretary of State for Levelling Up, Housing and Communities, in the House of Commons on 5 December 2022.

    The Government understand the pressures people are facing with the cost of living and have taken decisive action to support households. This includes the energy price guarantee, to support households with their energy bills over the winter, and a further £37 billion of support for the cost of living this year. At autumn statement the Chancellor also unveiled £26 billion of support to protect the most vulnerable households in 2023-24.

    I recognise that some vulnerable households may find themselves at risk of homelessness and may need additional support. The Government want to make sure councils are able to respond effectively to support households and prevent homelessness.

    Homelessness Prevention Grant—winter 2022 financial support

    I am therefore announcing an additional £50 million that will be made available to local authorities in England in 2022-23 through a top-up to the homelessness prevention grant. The additional funding will support local authorities to help prevent vulnerable households from becoming homeless. Local authorities will target this funding to those who need it most to help manage local homelessness pressures.

    The details of individual local authority allocations can be found here: https://www.gov.uk/government/publications/homelessness-prevention-grant-2022-to-2023. This additional £50 million investment builds on the £316 million in funding already available to local authorities through the homelessness prevention grant for 2022-23, bringing total spend through that grant to £366 million. This is part of £2 billion of Government funding to tackle homelessness and rough sleeping over the next three years.

  • Vaughan Gething – 2022 Statement on a Statutory Licensing Scheme for all Visitor Accommodation in Wales

    Vaughan Gething – 2022 Statement on a Statutory Licensing Scheme for all Visitor Accommodation in Wales

    The statement made by Vaughan Gething, the Welsh Minister for the Economy, in the Welsh Parliament on 15 November 2022.

    Diolch, Dirprwy Lywydd. I am pleased to have the opportunity today to provide an update on the steps we are taking to help secure a sustainable and thriving visitor economy that supports and enhances communities across Wales. The visitor economy is rapidly changing, and the role of visitor accommodation presents major challenges for communities across the world. For example, the growth of online booking platforms has brought many benefits, such as new routes to market and increased consumer choice. However, we are aware of the concerns around compliance with existing requirements and the impact of short-term lets on housing stock and our communities.

    Our plans to develop a statutory licensing scheme will be focused on levelling the playing field as part of a long-term response to the major challenges that we face. Our co-operation agreement with Plaid Cymru commits to a statutory licensing scheme for holiday lets as part of a package of measures to address the negative impact second homes and short-term holiday lets can have on the availability and affordability of housing for local people in our communities. In July of this year, the First Minister and the leader of Plaid Cymru confirmed plans to introduce a statutory licensing scheme for all visitor accommodation, including short-term lets, making it a requirement to obtain a licence, with the aim of raising standards across the tourism industry.

    Prior to that, and over the course of the past year, we have been exploring and engaging with stakeholders how such a scheme could work in Wales. Contractors were appointed to undertake this work last year and they conducted interviews and focus groups with key stakeholders from local authorities, sector representative bodies and accommodation operators. They explored the benefits of such a scheme and the key considerations of how such a scheme could be taken forward and implemented here in Wales. A review of how other destinations globally approach such schemes was also taken into account. This initial work has shaped the consultation that the Government will look to be launching shortly.

    But first, Dirprwy Lywydd, I’d like to outline the aims and proposed benefits of such a scheme. The primary aim is to establish a level playing field for all visitor accommodation businesses operating in the sector. The concern around the lack of a level playing field has been a long-standing area of discussion. Specifically, there are concerns that certain parts of the sector, for example informal short-term lets, do not meet or comply with their statutory obligations, whereas established, bona fide businesses do. A statutory licensing scheme could provide the mechanism to address this through requiring operators to evidence that they have certain requirements in place, such as the correct insurance, confirmation of planning status, evidence of fire-risk assessment, gas safety certificate, proof of electrical safety, to list a few examples. This scheme will help to ensure that there is a consistent standard that all operators should meet. Having a scheme where visitor accommodation businesses must meet a certain threshold of requirements conveys a very clear message to consumers that visitor accommodation businesses in Wales meet certain requirements on standards and safety.

    A scheme would also give us enhanced intelligence—a comprehensive database, which is not currently available, of exactly who is operating in the industry. It is currently not possible to determine how many visitor accommodation businesses there are in Wales or in any given community. Understanding the scale and the nature of the sector will be an important tool in developing future policies at either a local or national level. Establishing a statutory database of licensed visitor accommodation businesses would give the Welsh Government and other partners, such as local authorities, a mechanism to communicate on key issues relating to the sector. We saw how challenging it can be to reach all parts of the sector through our recent experiences during the COVID-19 pandemic.

    We also recognise that a statutory licensing scheme will provide an important foundation for other policy areas. Having the information provided by such a scheme will provide data on the scale and nature of our tourism offer to inform policy considerations, locally and nationally, around evidence-led management of second homes, holiday lets and developing the visitor economy and infrastructure. It could also support the collection of a visitor levy. For the visitor levy, having a licensing system would provide a comprehensive list of all visitor accommodation providers in an area. This could support the ongoing administration of the levy, as those who will require a licence will likely be the same as those who will be required to charge and collect a levy. There are clear links between these proposals, and I would encourage contributions to the 12-week visitor levy consultation, which closes on 13 December.

    As I previously mentioned, in looking to establish a statutory licensing scheme, we’re also looking at similar mechanisms operational or in development across the world. In the UK, different approaches have been taken by our neighbours and are at different stages of development. In Northern Ireland, visitor accommodation providers must receive certification by Tourism Northern Ireland in order to operate, and this scheme has been in place since 1992. The Scottish Government has legislation in place requiring all short-term let hosts and operators to obtain a licence to operate, unless specifically excluded. Existing hosts and operators have until 1 April next year to apply for a licence in Scotland. And in England, the Department for Culture, Media and Sport recently closed a call for evidence on the potential introduction of a tourist accommodation registration scheme. The purpose of the DCMS consultation is to better understand the benefits and challenges of the increase in short-term and holiday letting in England, and to gather initial evidence on the potential impact of a range of possible policy responses. There are other examples too, such as the compulsory schemes operating in the Isle of Man and in the Republic of Ireland. We’re looking to learn from these various examples, including what lessons can be learnt from the Rent Smart Wales model in terms of developing our own scheme.

    Following a series of engagement sessions with key stakeholders over recent months, we will shortly be launching a formal consultation to seek views on the shape and nature of the proposed statutory licensing scheme here in Wales. Feedback on some of the aims underlying a proposed licensing scheme has been supportive, especially in relation to establishing a level playing field, developing better intelligence and increased consumer confidence. However, some concerns have been raised around the perceived regulatory burden that may accompany a licensing scheme. This includes the work involved in providing evidence of current use in relation to planning, and the role played by local authorities in meeting this demand.

    Both the Welsh Government and Plaid Cymru agree that a statutory licensing scheme offers the most robust mechanism for delivery in Wales, being an approach that sets a standard for visitor accommodation businesses to operate. However, the consultation will enable a range of views to come forward, including on the requirements of a licensing scheme. We’ll be seeking views on how such a statutory scheme could operate, be that nationally or at a local level, or a hybrid model combining elements of both. In addition, we’ll be looking to gather views on whether all visitor accommodation businesses should require a licence, or whether there should be any exceptions. We’ll also look to test how frequently licences should be renewed, and the licence fees that might need to be charged. In deciding on any fee structure, we are of course mindful of the pressures on businesses in the current climate.

    We believe that most people would want to operate within the law, therefore one of the aims is to develop a scheme that will ensure a high level of voluntary compliance. However, proposals for compliance and enforcement measures, including penalties, to ensure fairness will be tested at consultation. We will be launching the consultation in December and will be encouraging our stakeholders to engage in the process. Diolch yn fawr. I’m happy to take questions.

  • Rebecca Evans – 2022 Statement on Council Tax Premiums in Wales

    Rebecca Evans – 2022 Statement on Council Tax Premiums in Wales

    The statement made by Rebecca Evans, the Minister for Finance and Local Government in Wales, in the Welsh Parliament on 11 November 2022.

    On 24 May 2022, I announced the next steps being taken by the Welsh Government, following our consultation on local taxes for second homes and self‑catering accommodation. These steps form part of our plans to ensure property owners make a fair contribution to the communities where they have homes or run businesses. This work, in turn, contributes to the Welsh Government’s three-pronged approach to addressing the impact that large numbers of second homes and holiday lets can have on communities and the Welsh language.

    Following our consultation, the Welsh Government is of the view that properties let out as self-catering accommodation on an infrequent basis should be liable for council tax. We have therefore legislated to increase the number of days for which self-catering  properties must be available to let or actually let in order to be classified as non‑domestic. The new letting criteria will apply from 1 April 2023 and will ensure that self-catering properties are classed as non‑domestic only if they are being used for business purposes for the majority of the year.  We have also legislated to increase the maximum level at which local authorities can decide to apply council tax premiums to second homes and long-term empty dwellings to 300% from 1 April 2023.

    I recognise the strength of feeling among self-catering operators in response to the changes and have listened to the representations from individual businesses and industry representative bodies. We have considered whether further measures are needed to accompany the changes to the local taxes.

    The Welsh Government recognises that some self-catering properties are restricted by planning conditions preventing permanent occupation as someone’s main residence. The Council Tax (Exceptions to Higher Amounts) (Wales) Regulations 2015 were made to accompany the introduction of the discretionary powers for local authorities to apply council tax premiums and prevent specified types of second homes and long-term empty dwellings from being charged a premium.  These regulations already provide for an exception from a council tax premium for properties restricted by a planning condition preventing occupation for a continuous period of at least 28 days in any one‑year period.

    I am publishing today a technical consultation to invite views on the draft Council Tax (Exceptions to Higher Amounts) (Wales) Regulations 2023.  The draft Regulations extend the existing exception to apply to properties with a planning condition which specifies that the property may only be used for short term holiday lets or which prevents their permanent occupation as a person’s sole or main residence. Such properties would become liable for council tax at the standard rate if they do not meet the letting criteria for classification as non-domestic property but they could not be charged a premium. This is consistent with our policy view that property owners should make a fair contribution to local communities either through local taxation or through the economic benefit they bring to an area.

    It is intended the application date for introducing the extended exceptions will be 1 April 2023, in conjunction with the changes to the letting criteria and to the maximum council tax premium. It will therefore apply only to properties that become liable for council tax after 1 April 2023.

    I am also publishing a consultation on the revised guidance on council tax premiums for long‑term empty dwellings and second homes. This includes additional options that are available to local authorities in the event that self-catering properties restricted by planning conditions do not meet the letting criteria.

    The consultation on the draft guidance will run alongside the technical consultation for a period of 6 weeks. Responses are requested by 22 December 2022. All responses will be taken into account in considering any further developments.

    As part of the Cooperation Agreement with Plaid Cymru, we are committed to taking immediate action to address the impact of second homes and unaffordable housing in communities across Wales, using the planning, property and taxation systems. As we continue to progress the package of measures and drawing on the latest evidence base, we will keep under constant review the range of levers available to use and how they may be deployed most effectively to meet our policy objectives and avoid unintended consequences.

  • Dehenna Davison – 2022 Speech on the Death of Awaab Ishak and Rochdale Boroughwide Housing

    Dehenna Davison – 2022 Speech on the Death of Awaab Ishak and Rochdale Boroughwide Housing

    The speech made by Dehenna Davison, the Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities, on 24 November 2022.

    I thank the hon. Member for Rochdale (Tony Lloyd) for securing this incredibly important debate and for his heartfelt contribution. Seeing a case like this has shocked all of us right across the country. To have it happen in his constituency must feel incredibly personal, so I am grateful to him for raising it with the House today.

    I know that Members across the House and people right across the country were, and still are, completely horrified by the monumental failings that led to the death of a small boy before he even reached his second birthday. As Members have rightly highlighted, Awaab’s parents had repeatedly raised their concerns about the dire state of their home with their landlord, the local housing association Rochdale Boroughwide Housing, only for those multiple and repeated complaints to fall on deaf ears. Instead of acting on the clear evidence of damp and mould, Awaab’s family were given no choice but to raise their young boy in a mould-infested flat. Rochdale Boroughwide Housing’s failure to heed the family’s pleas—pleas made by Awaab’s father as early as 2017—was an awful dereliction of duty. If that failure in itself was not bad enough, the apparent attempts by Rochdale Boroughwide Housing to assign blame for the damp to the actions of Awaab’s parents were insensitive and deeply unprofessional.

    As was raised by the hon. Member for Bury South (Christian Wakeford), the comments about “lifestyle” were completely unacceptable. The housing ombudsman was absolutely right to squash that assertion, reiterating that damp and mould in rented housing is not a lifestyle issue. Members today have highlighted that prejudice. It is our duty, as Members of this House and as Government Ministers, to call out any behaviour rooted in ignorance and prejudice. I take this opportunity to extend my sincere thanks to the coroner, Joanne Kearsley, who undertook a vital public service in her meticulous piecing together of the facts behind this devastating incident.

    Nothing will bring back the life of Awaab, but this investigation has given us all a chance to deliver some small justice to the parents of this young boy and to enact reforms that help us provide the high-quality social housing that this country desperately needs. I know I speak for everyone when I say that blaming nuances and technicalities will not wash. What took place in Rochdale were monumental, inexcusable failings. As the Secretary of State for Levelling Up, Housing and Communities told the House last week, we have acted quickly and decisively off the back of the coroners’ findings and are continuing to push for urgent explanations and action from those involved.

    First, we demanded answers from the chair and the chief executive of Rochdale Boroughwide Housing. Much of the accountability clearly sits with the leadership of RBH. My right hon. Friend was spot on when he said that it “beggared belief” that the now former chief executive Gareth Swarbrick attempted to stay in post. While it is right that RBH recognised that the chief executive’s position was no longer tenable, the housing mutual still has serious questions to answer about the basic condition of its housing stock. My hon. Friend the Member for Heywood and Middleton (Chris Clarkson) said that even today he is still discovering new cases of terrible conditions within that housing stock. I would be grateful if he, and other Members with such examples, shared them with us in the Department.

    Tony Lloyd

    We are very much in the same place on this. What is astonishing is that, two years on from Awaab’s death, one would think that mould in these properties would be such a high priority that it would be hard to find. In fact, if the Minister walks around the estate with me or the hon. Member for Heywood and Middleton, she will see that mould is still there in huge quantities.

    Dehenna Davison

    The hon. Gentleman is absolutely right. If we can gather further examples of this, it will help us in the Department.

    Secondly, we have asked to see what concrete steps RBH is putting in place to immediately improve the living conditions of the tenants for whom they are still responsible. Thirdly, our ministerial team is planning to meet not only Awaab’s family but those who live on the Freehold estate to stress the fact that Government are in their corner. Fourthly, the Regulator of Social Housing is considering whether this landlord has systematically failed to meet the standards of service required to provide for its tenants. The hon. Member for Rochdale asked whether this would constitute an inquiry. I would not want to commit another Minister, given that this would fall within their brief, but I will take this away and raise it with them urgently, and I am happy to engage with the hon. Member further on that point.

    While our focus is absolutely on delivering justice for Awaab, all of us recognise that this is not an isolated incident; the problem is much bigger than one flat in Rochdale. As we gather here today, thousands of people across the country are stuck in homes that are not fit for human habitation. I believe the coroner spoke for everyone when she said that it was scarcely believable that a child could die from mould in 21st-century Britain. It was a damning statement that reinforced the urgent need for the kinds of reforms we have been working hard to get on to the statute book.

    The reforms we are bringing forward—measures designed to hold landlords to account and make sure their tenants are treated with fairness and dignity—can help us make Awaab’s death a watershed moment for housing in this country. And we are making progress. A fortnight ago, this House debated the Second Reading of the Social Housing (Regulation) Bill, which is designed to learn some of the incredibly painful but necessary lessons of the Grenfell Tower fire in 2017—a tragedy that shone a terrifying spotlight on the dreadful experiences of tenants in that tower block ahead of the fire.

    Grenfell tenants had spent years lobbying for basic changes to their building to make their homes liveable and safe. Their voices, like those of Awaab’s family, were kept on mute before disaster struck, so we set about making sure that that never happens again, with a strengthened housing ombudsman service to empower tenants by making sure their voices are truly heard. As part of that, we changed the law so that residents can now complain directly to the ombudsman, instead of having to wait eight weeks while their case was handled by a local MP or another designated person.

    It is one of the main jobs of the housing ombudsman service to make sure that robust complaint processes are in place, so that problems can be resolved as soon as they are flagged. In cases where landlords have clearly mistreated their residents, it can order landlords to pay compensation. If necessary, it can refer cases to the Regulator of Social Housing. Through the Social Housing (Regulation) Bill, we are strengthening the powers of the regulator, so that where there is a serious risk to tenants and the landlord has failed to take necessary action, it can issue unlimited fines to rogue landlords, enter properties with only 48 hours’ notice and make emergency repairs, with landlords footing the bill. The hon. Member for Rochdale asked about resourcing for the regulator. In this financial year, we have put in an additional £4.6 million to ensure that the regulator can operate, with more funding to come as we go further in designing how it will operate. I hope that provides him with some reassurance.

    But all the reforms in the world will be worth nothing if people do not know that they have rights to begin with. Awaab’s case, which never went before the ombudsman, shows that we can and must do more as a Government to promote this service and make sure it reaches those who need it. The Government have already run a nationwide “Make Things Right” campaign to raise awareness and tell social housing tenants how they can go about making complaints, and that has now reached millions of social housing tenants. We are working up another targeted, multi-year campaign, so that everyone living in the social housing sector knows their rights and knows how to exercise them. Where some providers have performed poorly in the past, they have been given plenty of opportunities to change their ways and start treating residents with the respect they deserve. I think that we are all in agreement that the time for empty promises has to be brought to an end.

    The Department will help to do that by naming and shaming those who have been found by the regulator to have breached consumer standards or who have been found by the ombudsman to have committed severe maladministration. I am sure that many hon. Members will have seen that that work is already well under way, with the Secretary of State writing to all local authorities over the weekend to set out the expectation that they will act quickly to resolve poor housing conditions in their area. He also separately wrote to all providers of social housing and made it abundantly clear that our expectation is that they will take all complaints about damp and mould seriously, act swiftly to rectify them, and be prepared to respond to a request from the Regulator of Social Housing on the extent of damp and mould issues.

    Finally, I will touch on standards. Although the pictures of damp and mould in social housing across the country leave us in no doubt that many properties fall well below the standards that we expect social landlords to meet, Awaab’s death has made it painfully clear why we must do more to better protect tenants. Our Social Housing (Regulation) Bill will bring in a rigorous new regime that holds such landlords to account for the decency of their homes.

    In the months ahead, we all have a chance to upend the appalling status quo and deliver a new deal for social housing tenants in the UK. I want to be clear that this is not about bashing all landlords and tarnishing them with the same brush—we have many fantastic landlords and housing associations in this country that treat tenants with the kindness and respect they deserve. It is about raising standards across the board and ensuring that every tenant has the chance to live in dignity.

    I echo the praise of the hon. Member for Manchester, Gorton (Afzal Khan) for the incredible work of the Manchester Evening News in raising awareness. As the hon. Member for Rochdale said at the end of his speech, we have to do everything we can to ensure that nothing like this ever happens again.