Housing, Communities and Local Government Committee — Oral Evidence (HC 42)

7 Jul 2026
Chair35 words

Good morning everybody and welcome to the Housing, Communities and Local Government Committee. My name is Florence Eshalomi and I am the Chair of the Committee. Could I ask Committee members to introduce themselves please?

C
Mr Brash8 words

I am the Member of Parliament for Hartlepool.

MB
Andrew CooperLabour PartyMid Cheshire9 words

I am the Member of Parliament for Mid Cheshire.

Sarah SmithLabour PartyHyndburn8 words

I am the Member of Parliament for Hyndburn.

I am the Member of Parliament for Milton Keynes North.

Mr Forster8 words

I am the Member of Parliament for Woking.

MF
Ashley DaltonLabour PartyWest Lancashire9 words

I am the Member of Parliament for West Lancashire.

Lewis CockingConservative and Unionist PartyBroxbourne8 words

I am the Member of Parliament for Broxbourne.

Mr Mohindra11 words

I am the Conservative Member of Parliament for South West Hertfordshire.

MM
Chair9 words

Could I ask our guests to introduce themselves please?

C
Emma Payne9 words

I am the director for social housing at MHCLG.

EP

I am the Housing and Planning Minister.

Joanna Key12 words

I am the director general for regeneration, housing and planning at MHCLG.

JK
Chair112 words

Thank you very much for coming before the Committee today for the final session of our inquiry into housing conditions in England. We have had a range of meetings, events and written evidence looking at the state of housing right across England. We know that the Minister’s portfolio covers quite a number of different areas so we may touch on those as well. Minister, the Committee secured a debate last week on commonhold, leasehold and the regulation of managing agents. Following that debate you launched a consultation on a quid pro quo lease. Could you confirm that your preferred option would be to have a straightforward £250 ground rent cap for everyone?

C

That is precisely what we sought to investigate further through the pre-legislative scrutiny process. In the policy document that we published on ground rents specifically, you will remember that we sought further evidence on whether there is a justification for certain exemptions. We drew particular attention to negotiated quid pro quo leases. Unfortunately we did not, to put it simply, get enough evidence through that PLS process and the process that your Committee engaged in on that particular subject so we have gone out for a further technical consultation. We want to know very basic things, such as how prevalent these types of leases are, so that we can amass further evidence on which to base the decision of whether any exemption is or is not justified.

Chair33 words

Have you and the Department seen any evidence that developers will offer any benefits in exchange for the higher ground rent, and will leaseholders be actually given a choice? What is the rationale?

C

You are confusing a proposal from us with evidence seeking. As I said, we have evidence that negotiated quid pro quo leases exist, but we do not know how prevalent they are. We are seeking evidence on whether any exemption for them is justified given their nature. We are not proposing a roll-out of quid pro quo leases as your question suggests.

Chair9 words

Is there evidence of any benefit to the leaseholder?

C

In a quid pro quo lease?

Chair1 words

Yes.

C

That is the type of issue we are trying to get more evidence on, and why we have had to go out for a further technical consultation to try to get more, so that we have a basis to make a rational decision on.

Joanna Key108 words

The Competition and Markets Authority did a report in 2022 on a number of leasehold issues, which covered quid pro quo leases. That report concluded that there was actually no clear evidence on the fact that these quid pro quo leases were offered to consumers in the way that you suggest, with an option to pay more up front and get some benefit over time. They did not really find any evidence of that, which is part of the reason why we are trying to make sure that we are exploring all avenues of evidential collecting before we would ever move to an exemption of the nature proposed.

JK

Just to supplement that, the bar for an exemption has to be extremely compelling in my mind. Let us see the evidence as to whether or not this type of lease meets that bar.

Chair87 words

Obviously as Committee members and constituency MPs we are contacted on a regular basis by leaseholders. As the Minister with responsibility, you are probably contacted on an almost daily basis. The key area leaseholders are asking the Government to focus on is for you to bring forward a consultation on valuation rates. The evidence, and what leaseholders are saying just in the last few days, is that you are now prioritising another set of consultations. When are you going to bring forward the consultation on valuation rates?

C

I would not say it is fair to characterise what we have done as prioritising quid pro quo leases. As I said, we need further evidence and have launched the technical consultation. We are hoping to publish the consultation on valuation rates imminently. As Committee members will know, that sits within the context that we now have guidance from the Cabinet Secretary where it has been agreed that Ministers should not initiate new policy commitments during this period of change and transition given the Labour leadership election. We are viewing all our announcements in the leasehold and commonhold space, and in other parts of the Department, in the context of that Cabinet Secretary guidance. Given that this is a consultation and previously announced policy, I am hoping we can publish that consultation before the summer recess.

Chair47 words

Going back to the comments in last Thursday’s debate, we are obviously hopeful that this could come forward much earlier. Would you want to consult on the ground rents now so that you can bring the cap into force by 2027, or would you seek to wait?

C

Sorry, what do you mean by consulting on ground rents?

Chair10 words

Would you consult on the cap before you introduce it?

C

We do not need a wholesale, fresh consultation on the ground rent cap, just this brief technical exercise to try to get a bit more evidence and supplement what little we got through the PLS process in terms of specifically negotiating quid pro quo leases.

Mr Mohindra45 words

Minister, it is always a pleasure to see you. Without predicting the future—there may or may not be a reshuffle in the days and weeks ahead—what do you think has been your biggest achievement in the last two years, and what would you have changed?

MM

That is a tough question. I hear bandied about fairly often that as a Government we came into office without a plan.

Mr Mohindra2 words

I agree.

MM

I am sure you do. We had developed in opposition a very well thought-through, detailed and comprehensive plan with respect to housing and planning legislation and policy. I would argue we have ruthlessly executed that over the past two years. If I recount all the things we have done, they include overhauling the planning system, a £39 billion investment in social and affordable housing, a new homes accelerator stood up, a new homes programme consultation, the Renters’ Rights Act taken through, and foundations to take forward legislation over the course of this Parliament that will bring the leasehold system to an end. I am very proud of everything we have done and that the Government will continue to do in not only implementing the legislation we have already introduced but taking forward further legislation and policy changes.

Mr Mohindra10 words

I notice you did not mention the 1.5 million homes.

MM

I am extremely proud of the measures we have taken to boost rates of house building over the past two years. We have seen some incredibly encouraging green shoots. I thought this might come up. Let me cite some evidence we have to date. To the year ending March 2026, outlined planning applications were up 54% from a year earlier and detailed planning applications were up 19% from a year earlier. When it comes to starts—obviously one of the most important measures—we are up 15% compared with the previous year. That is not to say that the headwinds have not grown stronger. I have been really honest with your Committee that the war in the middle east is placing incredible pressure on the house building industry. Effective demand has been hit badly and building material costs are up. The headwinds are strong but those foundations will ensure that we will have high and sustainable rates of house building in the years ahead. We are incredibly proud of that.

Mr Mohindra60 words

You mentioned the 1.5 million homes—well, I did and you answered. Over several sessions this Committee has tried to get a benchmark associated with that target. Despite my best efforts, you and your former and current Secretary of State have not been able to provide that detail. Given those figures, are you on track to meet those 1.5 million homes?

MM

I have lost track of the number of times I have gone around this with the Committee. There is a very clear measure of how we are performing against our 1.5 million homes target across the Parliament, and that is net additional completions. Those are publicly recordable figures and you will be able to judge them on it. In all honesty I do not know what you mean when you say benchmark. I have told you why we have not provided annual projections of housing completions over the Parliament. We have gone through that in exhaustive detail in previous sessions. You will be able to judge us on net additional completions. Given that we inherited an absolutely dire inheritance when it came to house building supply—that squeezed supply that the changes to the December 2023 national planning policy framework set in train—again I am incredibly proud of what we have done to turn that around and put in place the foundations for high and sustainable rates, along with everything else we have done over a two-year period. I think even you would be generous enough to admit that we have done a lot in what is a pretty brief period of time in terms of Government.

Mr Mohindra8 words

I—for one—hope you do not get reshuffled out.

MM
Mr Forster48 words

Minister, in the last month England has had the hottest June on record. The Met Office is regularly issuing warnings that it is dangerous to be inside and outside. What assessment has the Ministry done, or is it doing, of the impact of the heat on our homes?

MF

That is a really good and topical question and I will answer it. For reasons that are best known to you—Chair and the Committee—this is a very wide-ranging session in terms of topics, lots of which are very technical. I am not going to dominate; I am going to pass to Emma and Jo to fill in and take some questions. On overheating specifically, it is really important to say first that we recognise the scale of the challenge presented by overheating. It is already acute in terms of being a severe public health issue. It will obviously only grow more acute in the years ahead due to climate change. There are lots of reasons for it. It is often commented on, but the historic design of homes in England is intended to trap and retain heat in the cold winter months, and that can cause issues going forward. We know there are health risks and implications for excess deaths for particularly vulnerable populations, and we take it extremely seriously. It is really important to understand and share with the Committee the Department’s role in monitoring, redress and enforcement. As you know, Mr Forster, there is no maximum statutory limit on indoor temperatures. There is no threshold that the Government monitors data on across the whole of England in terms of when those thresholds are breached—we are not inside individual homes measuring temperatures and getting average temperatures. Our role as a Department is to put in place a number of regulatory measures and a framework to try to ensure that the homes we build going forward are appropriately designed to deal with overheating, and that existing homes are free of various hazards including hazard 29 of the HHSRS and overheating in that respect. It breaks down in different ways in different tenures. I might bring in Emma and Jo on this. Under the SRS, for example, homes have to comply with the decent homes standard and are subject to Awaab’s law. When we roll out the further phases of Awaab’s law, overheating will come under those further phases. The DHS will obviously be rolled out to the PRS and SRS in 2035. It depends on who is monitoring what and what arm of Government, whether it is new or existing homes, and the various measures we have in place—the decent homes standard, HHSRS and so on. To come back to your original question, partly because there is no maximum statutory limit, the Government are not monitoring temperatures in every single home and coming up with average temperatures across the country from last week or any week, and those thresholds. It is more a case of putting the regulatory framework in place so that we can deal with this as a hazard under HHSRS. Over time, hopefully the decent homes standard will eliminate those hazards entirely—although we can come on to compliance with the DHS and other issues. I hope that is helpful.

Mr Forster21 words

That is helpful. Minister do you not think the Ministry should be monitoring temperatures to understand the scale of the problem?

MF

Do I think the MHCLG should be nationally monitoring temperatures in individual homes?

Mr Forster15 words

Should we know whether it is safe to be in homes of a certain temperature?

MF

To give you a specific example, the HHSRS system was introduced in 2004 so that residents had a means of redress when it came to particular hazards. As I said, overheating is a hazard. When it comes to a tenant being able to seek redress for that particular problem—I am just trying to explain how the system works—it is not Government going into every home and monitoring the temperature; we are relying on tenants themselves to come forward. Emma can perhaps expand on that.

Emma Payne175 words

I will add a couple of things. The HHSRS sets out hazards, and homes must be free of category 1 excess heat hazards. The HHSRS has recently been updated and new statutory guidance is now available, but excess heat is one of those hazards. In the social rented sector, landlords need to comply with the decent homes standard, which includes a requirement that homes are free of category 1 hazards. That is looked at by the Regulator of Social Housing, which conducts reviews at a landlord level, and we in the Department can look at the aggregate of all that data. There is also the Housing Ombudsman Service in the social rented sector. If a tenant has made a complaint to their landlord about a hazard and is not happy with how that has been dealt with, they can go to the Housing Ombudsman Service. The Housing Ombudsman Service publishes regular data in the form of quarterly snapshots and annual complaints reports. We can look at all that data in the round in the Department.

EP
Mr Forster90 words

I have two follow-up questions. First, the Climate Change Committee has warned that 90% of homes are at risk of overheating by 2050. What is the Government—rather than just the Ministry—planning on doing to mitigate that? Secondly, the New Homes Ombudsman told the Committee that newly built homes are reaching temperatures of 35° C or more during summer heatwaves. New homes are hotter and more dangerous than older, slightly cooler homes because of the way we build them. What planned changes to building regulations are you considering to reduce that?

MF

Let me take those in two parts, with a caveat on the last one that I am not the Minister responsible for building regulations specifically, but I am more than happy to talk to them. Again, there is a slightly complex picture, which I can hopefully explain in a way that the Committee can follow. When I go back to the general point on the Climate Change Committee, we absolutely accept the warnings in respect of overheating. This is obviously a growing problem. When it comes to the risk of overheating in existing homes, Emma has spoken about the various means of redress, and we touched briefly on it but we can go into the enforcement measures that can be taken in more detail. You have the Regulator of Social Housing, which has consumer standards that include safety and quality, and this falls under those, along with the Housing Ombudsman Service, Awaab’s law and so on as we roll it out. There are also Government programmes in place to ensure that we can deal with excess heat issues in existing homes. In the case of homeowners, it would be for them to take a decision. For example, the warm homes plan includes a grant subsidy for what are called air-to-air heat source pumps, which can cool as well as warm homes in the winter months. There are ways that the Government are supporting the overhaul of existing homes. On future homes, the Building Safety Regulator is responsible for ensuring that new build properties comply with the standards that are in place in terms of excess heat. This is where approved document O comes in. It has only been in place since 2022, so it is feeding through the system in terms of the impact that is having. Part O brings a lot of benefits in terms of the hierarchy that it puts in place, which is a focus on passive measures in the first instance. This is all the things other countries do routinely: window shutters, awnings and how you design out heat, but also more active measures, such as air-to-air, in cases where it is necessary. The Building Safety Regulator is undertaking a technical review of part O. There are issues with part O and how it maps on to other regulatory requirements in this space, which the Building Safety Regulator is working through. House builders, residents and others have expressed concern about its impact on design. On new builds, the part O approved document has only been in place for four years. We are reviewing how it is working. The New Homes Quality Board—it is not an ombudsman yet but wants to be—obviously has an interest in this area in terms of looking at what standards come forward. Again, in terms of redress and enforcement, this is where it would be for local authority building control to ensure that buildings are being built in a way that is compliant with part O and other parts of the relevant approved documents in the building regulations. It would not be for central Government to take that enforcement role themselves.

Mr Forster13 words

Finally, when will you and the BSR complete your review of part O?

MF

We have not announced a timeline for the completion of that technical review.

Mr Forster30 words

Can I urge you and BSR to make this a quick review and then confirm when you will announce it, so that we can all plan and change from there?

MF

You can encourage in that manner. I will pass it on to the Building Safety Minister and Andy Roe at the BSR.

Mr Mohindra73 words

Minister, we were just talking about hot homes. Can I speak about cold homes, which feels a bit weird given the temperature outside? You touched on this slightly in your previous answers. The Government have decided to make changes to minimum energy efficiency that will apply to social and privately rented homes from 2030. How confident are you that landlords will be able to comply with these standards when they come into force?

MM

Again, I will bring in Jo and Emma to add some detail. We are very confident they will be able to comply. We have given them the time to comply and are providing lots of detailed guidance to help them to roll it out. Again the regulator has a role in terms of SRS, MEES and those consumer standards coming through. We are confident that we have put in place the support, the guidance and the time that will allow landlords to meet those standards.

Mr Mohindra17 words

Emma, do we know how many properties will be exempted and how much this will affect supply?

MM
Emma Payne194 words

I can talk about exemptions. We do not have a precise figure for the number of properties that will be exempt but some exemptions are set out in the detailed response to the consultation on MEES in a couple of categories. First, there is a cost cap for MEES where homes effectively spend up to £10,000 getting them ready, and if you cannot do anything more within that £10,000 cost cap, you have an exemption for 10 years. There are some other exemptions where we will be setting out much more detailed guidance, but that will be, for example, if there are planning restrictions in the social rented sector that make it very difficult to do the work, or it is impossible to get access. There are those types of exemptions but we do not have a specific figure. We have obviously been working very closely with the social rented sector to get them ready for all this. Already over 70% of social rented homes are EPC standard C or above, and as the Minister has set out there is the lead-in time, but also a transition period to support landlords to get ready.

EP
Mr Mohindra48 words

The Government have also said they plan to retain the current measure of fuel poverty as the most effective measure of progress to 2030. Do you see a benefit of amending the definition beyond 2030? If so, what would be a more accurate way of measuring fuel poverty?

MM

Again this is where lots of the issues you are touching on are cross-departmental in important ways. The fuel poverty standard responsibility rests with DESNZ rather than MHCLG. We agree that it is right to retain the current fuel poverty measure. It reflects some structural drivers of fuel poverty, such as building quality. It also sets quite a useful benchmark for warm homes plan interventions. It is important that overall affordability is also measured alongside that. I may be mistaken, and I am happy to check and write to the Committee with further details, but I think the Department for Energy Security and Net Zero has committed to taking forward the current fuel poverty measure beyond 2030, but that really would be policy for that Department. We work very closely with it on MEES and other aspects of policy where it crosses our departmental interest, but the fuel poverty measure would be one for them, not this Department.

Ashley DaltonLabour PartyWest Lancashire97 words

We have talked about temperatures a lot. I wanted to bring in something else that is really important and will feed into that conversation. The Committee is interested in overcrowding. As we know, overcrowding has been rising in social housing and the private rented sector over the last 30 years; this has been going on for some time. The Committee has heard about families in temporary accommodation living together in one room. What assessment have you made of the risks of overcrowding? How are the Government tackling the ongoing rise in overcrowding and mitigating the harmful effects?

This is a really important question. I see it in my own postbag and advice surgeries on a weekly basis, as I am sure Committee members do. Again, it comes back to the role of the Department in the regulatory framework that has been established. We monitor overcrowding at a building level to the extent that the HHSRS monitors and seeks to address it as a hazard. I referred to excess heat as hazard 29 earlier but it is overcrowding—I am getting my hazards mixed up. The HHSRS monitors overcrowding as a hazard and there are a variety of means by which local authorities can seek to take action against it, such as improvement notices, hazard awareness notices, prohibition orders and civil penalties up to £40,000. Again, we are getting our information in part from HHSRS, from category 1 hazard referrals and from other sources. In general terms, we obviously monitor the effectiveness of the regulatory framework overall.

Ashley DaltonLabour PartyWest Lancashire59 words

During the passage of the Housing Act 2004, the last Labour Government described the standards that were used to determine whether homes are statutorily overcrowded as “no longer defensible in a modern society.” Do you agree with that statement? If so why are those standards still in place over 20 years on? Is there any move to change them?

I will be absolutely honest with the Committee.

Ashley DaltonLabour PartyWest Lancashire10 words

That would be lovely. I would expect that from you.

I have always been really candid about the trade-offs that exist, and there are some real tensions and trade-offs when it comes to overcrowding policy. What I would say in general terms is that the statutory definition of overcrowding has been in flux basically since the Victorian era. It was overhauled in 1935 and again in 1985. Part 10 of the 1985 Act, which governs the legal framework for overcrowding, has limitations. I do not think that is really in dispute. I would have to read the quote in context but it is probably what the Minister at the time was talking about. Bear in mind that the 2004 Act was trying to introduce the HHSRS system, which we have already spoken about at quite a lot of length and which allows for overcrowding as a category 1 hazard to be addressed. I think it was in that context. It is really important though—I am speaking to various housing lawyers about this—that there is a power in the 2004 Act to amend the statutory definition. At any point, us or any Government could widen that definition. From memory, the last Labour Government went out with a discussion paper on the definition of overcrowding in England and whether it should be widened to encompass, for example, HMO licensing and the rest so that we have one unified standard. They did not take any action off the back of that. Here is where it comes to the trade-off, and it is a real trade-off. Unless we significantly boost the supply of social and affordable homes, we would be introducing rights that are essentially unenforceable. I have 26,000 to 27,000 people on my local housing waiting list. Simply shifting a category subset of those into a higher rate of overcrowding when we cannot rehome them does not really address the problem. I come back to the fact that updating the standards in the absence of that very significant boost of supply just introduces unenforceable rights. I recognise that the current system has limitations. Maybe this Government or a future Government will want to look at those standards at the appropriate point, and whether there is a case for a unifying standard. Our focus really has been on how to get people out of overcrowded homes: you build lots more social and affordable homes in a way that allows us to move those families out of them.

Ashley DaltonLabour PartyWest Lancashire109 words

You are recognising this is a long-term issue, and of course it is; it is going to take a while. Having said that, while this is ongoing we know that there are families and children living in overcrowded homes. We know that living in an overcrowded home adversely impacts child development and educational achievement, in terms of both health and education. Why does the current legal definition of overcrowding not take into account those particular needs of children? What protections are in place to reduce the risks of overcrowding on children’s development in terms of health and education? I am aware that that would obviously link into other Departments.

It is obviously an absolutely pressing need. I find in particular that cases of overcrowding that come to my advice surgery on a weekly basis are heartbreaking in themselves. There are young children who cannot study properly living in a living room because there are not enough bedrooms. That is absolutely heartbreaking and there is an impact. Where I would slightly disagree with you is that children are accounted for in the current legal framework. They are explicitly accounted for in the formula for working out whether a family is statutorily overcrowded, in the sense that room and space standards factor in children. If you are under one, you are discounted. If you are under nine, you count as half a person—not obviously in moral, ethical terms, but for the calculation. If you are over 10, you count as a full adult. There are rules—for example, where children of different sexes are not able to share rooms. I can see the Committee nodding. You all have this in your case workloads as well. They are accommodated for, but we come back to the central problem. Families with children who are overcrowded need a new social home. I have brought my handy copy of the document—I am accused of not having strategies for things. We are trying to boost the number of social homes coming through. As I say, there might be a case in future for looking at that legal framework. Just overhauling it in the absence of that puts pressure on local authorities and gives tenants rights that are essentially unenforceable. In a sense we have that test already. If you are statutorily overcrowded in a social housing property, you are what is colloquially known as homeless at home. You have the right to be rehoused in TA, but people do not want to be rehoused in TA, so they will stay in their social home being overcrowded. Again, supply is the long-term answer.

Chair175 words

Does this not come back to the question around the statutory definition, Minister? The last English Housing Survey estimated that there were over 824 households in overcrowding. If you look at urban areas including London, the figures are quite high. In one constituency, East Ham, 23% of families are in overcrowding. In West Ham it is 20% and in Brent North it is 19%. Outside London, for Birmingham, Hodge Hill the rate is 18%, and for Slough and Leicester East it is 16%. For many residents—including your constituents and our constituents around the country—I do not think they are worried about the health and safety regulations or what the statutory definition is. They come to us week in, week out. What more do you think the Government could be doing to address this situation now? We have spoken about the warm and cold weather and the massive impacts on families and households in overcrowding. Is there anything more that you feel the Government could do to try to mitigate some, not all, of the risks?

C

We can go back over cold and warm homes and the impact. We have been very clear about how tenants can seek redress in those instances and the role of the regulator and the ombudsman, all of which can take action by way of compensation, fines or whatever it may be. There are established redress routes. Give me some suggestions on what else we could do other than build new homes for these people. I get so angry when I hear people opposing housing developments with affordable housing in them when they are sitting on top of local authority housing waiting lists of the size that we see across the country all the time.

Chair86 words

I am sure you have been in touch with the ombudsman, but the redress routes that you cited are not working. A number of constituents have a massive backlog with the housing ombudsman. Frankly those redress routes for residents are a slap in the face. The whole system seems to be failing for many residents. When you look at the situation, these residents continue to pay their rent and service charges but they feel that they are not getting a service back from their housing provider.

C

Let me briefly say that we recognise where elements of the system are not working properly. Let us take HHSRS. I remember writing an opinion article in The Guardian about 15 years ago about this, but the problem with HHSRS is actually that enforcement is not a statutory responsibility. This is not the sexy end of local authority directorates. Those teams are often cut back to the bone. Again what are we doing as a Government? What can we do to ensure that local authorities are able to enforce against category 1 hazards in a more effective way? Resourcing is at the heart of it, along with capacity and capability. We are taking action on these elements. The ombudsman again has a business plan in place to try to drive up performance and all the issues you have spoken to, which Emma might want to talk about. We are taking action in terms of redress, enforcement and all these areas to try to make the system work more effectively. Again, I come back to the fact that we will not deal with the problem unless we are building at scale again and moving these families out, so that we have housing that accounts properly for local needs. Do you want to say anything specific about the ombudsman, Emma?

Emma Payne122 words

I can add just a couple of things. The Housing Ombudsman Service has seen a significant increase in complaints, and recently published its business plan for the coming year, which has some new KPIs in terms of what it is seeking to deliver to work through the backlogs. There are a couple of other measures that have been brought in that it is relevant to touch on as well. One is new access to information requirements for social tenants, which will be in force from autumn of this year and will enable them to seek information from their landlords. The other is the new competence and conduct requirement on social landlords, which is part of the package of measures to support tenants.

EP
Lewis CockingConservative and Unionist PartyBroxbourne155 words

I want to follow up on a specific question; my local authorities tell me it is not possible to do this, so I want to hear from the Department. If you have a family that is overcrowded in a two-bedroom property and they need a four-bedroom property, are they theoretically allowed to bid for a three-bedroom property? Even though they would still be overcrowded in the three-bedroom property, that obviously has to be better than living in a two-bedroom property. Is that possible under the current rules, or are we saying they can only bid for four-bedroom properties because that is what would solve their overcrowding? Obviously they are very hard to get because they do not come around that often, and being in the three-bedroom property would alleviate not all but some of the overcrowding. I appreciate it is not perfect, but it may be a better scenario than living in a two-bedroom property.

If I am honest, I would have to check whether it is legal to move a family that is statutorily overcrowded into another property where they remain statutorily overcrowded, even if it is an improvement. I am more than happy to come back to you on that. As you would expect I would come back to the importance of up-to-date local plans, because it is through local plans that we expect authorities to plan for the housing need requirements in their area. If that includes more family homes of a four-bed size, they should be taking that into account. Again it is so important that we have that up-to-date, local plan-led system so that local authorities are adapting to the demographic changes and the needs of their communities through their local plans.

Andrew CooperLabour PartyMid Cheshire121 words

My questions are all going to be about the accessibility of new build homes, which for the benefit of the audience at home and those who are watching are covered by part M of the building regulations, under which category 1 is visitable dwellings, category 2 is accessible and adaptable dwellings and category 3 is wheelchair user dwellings. Rather than mandating part M4(2) as the standard for new homes, the Government proposed that a minimum of 40% of new homes should be built to this standard. Can you explain why you are proposing to set the national minimum at 40% and how you have determined that this threshold will be enough to ensure the necessary amount of accessible housing is built?

I may be mistaken but I could swear I have answered the Committee on this point before. I will do so again.

Chair8 words

Maybe we did not appreciate the answer, Minister.

C

I will do so again around the proposed changes to the NPPF, which we are in the final stages of analysing. The previous Government made a commitment to 100% M4(2) but had no plan whatsoever about how they would deliver that commitment. On arriving in office and looking at changes to the planning framework, we sought to push what are 0% M4(2) delivery pipelines in many areas much higher. We proposed through the consultation—again we are analysing the feedback to that—a minimum proportion of 40% in all areas so that we can drive up coverage and better match need but, importantly, we are leaving it to local areas and discretion to take that proportion higher in instances where they think their local needs demand it to be so. It is not the case—as has been put to me—that by the changes we are proposing in the NPPF we are requiring that 60% of all properties henceforth meet M4(2). It is for local areas to tailor their needs assessment and what they need coming through, but we want that minimum in place across the country to drive up coverage, which is very low in some areas. In making that decision we balanced a number of factors, including the impact on supply of 100% M4(2).

Andrew CooperLabour PartyMid Cheshire41 words

In the north-east and east midlands, 4% are accessible, whereas in London it is 23%. Is it your expectation that local areas will look at how many properties they currently have that are compliant with M4(2) and set a standard accordingly?

Through the local plan process, local areas obviously derive a housing needs requirement from the standard method in the NPPF. They should also look underneath that—as part of the development of local plans—at what their housing needs specifically are and what types and tenures of homes they need in their area, and set that out in their development plan accordingly. What we are saying is that you must have a 40% minimum of M4(2). If you make that housing needs assessment in your local area and think objectively that the need for those types of homes is 58%, that can be put in your local plan. In terms of monitoring and coverage, local plans are then assessed and hopefully in most cases found sound by the Planning Inspectorate on the basis of whether it meets that framework.

Andrew CooperLabour PartyMid Cheshire30 words

Would you expect the Planning Inspectorate to be looking for the local authority to demonstrate that it has made that assessment of how many homes it has that are accessible?

Yes, put very simply.

Andrew CooperLabour PartyMid Cheshire10 words

If not, would the Planning Inspectorate reject its local plan?

I cannot make a judgment on whether it would definitely reject x local plan or not; it would be looking at the plan in the round and judging whether it was sound, but it would have to take this into account. This is all subject to whether we confirm the 40% M4(2) in the final NPPF; as I say we are working through the feedback. Were we to do so and a local authority submitted a plan to be examined that had 10% of M4(2), that would be a reason to find it not sound.

Andrew CooperLabour PartyMid Cheshire57 words

As part of that would you expect the local authority—or indeed have you as a Department done some analysis—to look at age demographics and which areas are likely to have a greater requirement for more accessible homes in future? Would you be expecting local authorities to be citing that kind of evidence when they produce a number?

Yes. The Department will not do that for each of the many hundreds of local authorities across the country but it expects that as part of plan development.

Andrew CooperLabour PartyMid Cheshire21 words

As I say, M4(3) covers wheelchair user dwellings; what is the rationale for not proposing a national minimum standard for that?

Simply because of the type of home and product that those standards produce. M4(3) is a very specialised product: it is completely wheelchair accessible. That is not a product that the vast majority of families in the housing market require, so it is a much more specialised product. M4(2) is not a niche product in that sense. There are wider benefits to M4(2)—particularly in the context of an ageing society—that have general gains.

Andrew CooperLabour PartyMid Cheshire11 words

Those are future adaptations the Government will have to pay for.

From memory the feedback we have had to the NPPF is that a minimum threshold of M4(3) is not particularly appropriate in the way that a minimum percentage of M4(2) is. It is a very different product.

Andrew CooperLabour PartyMid Cheshire57 words

By having something that is not measured in that way, or not having any kind of minimum standard at all, is there a risk that it is therefore not seen as a priority by local authorities when they are producing their local plans, and we end up with an undersupply of wheelchair user properties as a result?

No. The proposed framework is very clear that you must plan to meet local housing need. You should be assessing the need for M4(3) properties. We are just saying in the sense that where on M4(2) there is a floor and that discretion to adjust for need, on M4(3) there is complete discretion, to be brought forward through local plans.

Chair95 words

On the local plans and the data, are you aware that an FOI from the Centre for Ageing Better highlighted that most local authorities do not actually register the number of accessible homes that are planned or completed in their area? To come back to Andrew’s question, if there is not a requirement for local authorities to do it—even though you are saying they should be outlining it in their local plans—how are we building the homes that are going to be future-proof and ready to serve a growing and ageing population with accessibility needs?

C

Through the proposed changes to the national planning policy framework.

Chair30 words

Even though it is a minimum 40% and the Home Builders Federation and many other organisations are saying that they are concerned about even the minimum that you are proposing?

C

There are undoubtedly concerns that exist about that minimum percentage. We think that is the right thing to have proposed and are working through all the feedback. I suppose what I am saying in terms of the framework is that that proposal obviously did not exist before. It is what we are proposing to come forward as well as generally boosting coverage of up-to-date local plans which, as you know Chair, was extremely low when we came into office.

Do you have anything more on the cost-benefit of 40% and 100%? With policy proposals like this we always talk about where you have fewer accessible homes, but do you have any analysis of the impact on supply or on the cost of housing of having that 40%, or indeed going up to 100%?

We have not published any analysis as to the supply impact of different M4(2) scenarios. The Chair has just acknowledged that house builders certainly think there is a cost to delivering M4(2) properties over M4(1).

Is there any way it could be published?

We do not routinely publish internal analyses of that nature. It plays into the decisions we have had to make on what was proposed in the framework and the final decisions we will make on it.

I have another question on that; I will probably get the same answer. Has any analysis been done of the percentage of the homes you are making adaptable that you expect ever to be adapted? Again, it is very difficult to come to a conclusion on what that percentage should be unless you know what the eventual demand might be for that adaptation.

That is a really fair question. Emma or Jo might want to talk about the grants that are available to adapt homes. In an ideal world we would get to 100% up-to-date local plan coverage, on the basis of new-style local plans, with the final proposals in the framework. If we take forward M4(2), over time in theory you would ideally get to 100% coverage, with 40% M4(2) coverage everywhere as a minimum and far higher proportions in lots of areas if that is what local needs account for. The gap of properties that need to be adapted in future will narrow. We are talking about new properties here. There will be properties that have come through the system that are not M4(2) compliant and might need to be adapted. Obviously over time we want to reduce the amount we are having to spend on grants to adapt those by generally having this standard that has benefits for us all in the future in an ageing society, where M4(2) has those more generous standards. Does that help you?

What you are saying is that there is a cost saving to more of those homes being built adaptable, but there is also an up-front cost. It is difficult for people observing to work out where you should set that percentage—whether it should be 100%, 40% or indeed 0%—until you have the numbers, which I assume the Department has looked at, on the extra cost, the impact on supply and the saving on not having to adapt properties in future. Without those numbers it is quite difficult to work out what a reasonable percentage should be.

We judged what a reasonable percentage would be, went out to consult on it and are working through the feedback. We have had this in various sessions and I completely understand the Committee’s desire to have all the evidence that Government looks at internally. Again I come back to the fact that we have to preserve a certain amount of freedom to make decisions and to go out and argue and justify those decisions. The feedback is really important here. On this and many other questions in the NPPF, we are testing whether that is the right amount and asking for feedback from house builders, local authorities and various stakeholders as to whether we have made that correct judgment. I do not think anyone denies that there is an additional cost to building at higher accessibility standards.

Chris CurtisLabour PartyMilton Keynes North129 words

You say local plans can go higher. I assume there is an expectation in the market that the 60% of properties will cross-subsidise the minimum 40% of properties—as in, the ones that are not built to that standard will probably cross-subsidise the ones that are, to a certain extent. That will all be calculated when the Planning Inspectorate is making decisions on whether local authorities are moving forward with a viable local plan. Given that, is there not a concern that some places that have a higher demand for adaptable properties for an ageing population are not going to be able to build those viably, whereas places that do not have that demand might be able to viably do it, and that cross-subsidy cannot happen across local authority areas?

That is a really good question. Through the NPPF we have tried to limit the discretion of local authorities to put in place their own standards when there are national standards in place. We are working through all this right now. On energy efficiency and internal layout, what is the amount of discretion that is appropriate, given that we are putting in place, for example, future home building standards on energy efficiency that are at a higher level than exist now? On accessibility, it is very hard to give you a hypothetical for any particular local authority area, but the combination of demographics, local housing need and viability challenges in any particular area will have to work through the local plan. The local plan will be tested on whether it is deliverable and viable through the EIP. Inspectors will look at that. Working back to the thrust of the original question, I do not think that means a different decision for us in terms of the planning framework and the minimum expectation it seeks to make through local plans. Is that fair, Jo?

Joanna Key129 words

That is totally fair. On the M4(2) standards, most of them are about the design of the property—for example, having wider doorways. While I totally accept your original premise that there is a cost associated with that, I suspect that once developers have adapted to that different design, the additional costs are actually relatively low because it is just about producing a different house design for certain types of property. When these standards were introduced on the building regulation side, I am sure there was an impact assessment published that looked at the costs. Because we do not cover that side of the Department and the Minister is not responsible for building standards, I cannot quote from it, but we can certainly write to you with whatever information exists.

JK

I will come back to you with a final comment. You can hold us to the theoretical 100% standard that the previous Government committed to and had no plan to deliver, or you can hold us to the very significant uptick that we are seeking through this 40% minimum and discretion, given that lots of local areas are planning for zero M4(2) at the moment.

Chair58 words

I am mindful that we have to move on, but we wrote to the Department and yourself in May stating that we were not convinced around that 40% and wanted a bit more rationale around it. We asked whether you could set out how the Government plan to hit that but we not received a reply to date.

C

I will chase a reply on that, Chair.

Sarah SmithLabour PartyHyndburn61 words

Awaab’s law, which we have discussed at previous sessions, is obviously really important legislation, providing greater protections for tenants in social housing against the hazards they might face. I just want a bit of an update really. We have now had the first phase of implementation; how have registered providers responded? Are the regulations working as you had hoped or intended?

To go back to Mr Mohindra’s question—he has left so does not get to hear me opine on this—this is one of many things I am really proud of. It was a previous Government commitment to introduce Awaab’s law, and I fully recognise what they did to make that initial commitment, but we have stepped up and made sure that we are implementing it, and implementing it in a phased way that ensures that providers can cope. That is really important. We could have introduced all three phases in one big bang moment. The great fear, which was justified, was that the repairs service of every registered provider would then shift wholesale into meeting the demands of Awaab’s law and routine repairs and maintenance would not take place. We had to strike a careful balance, but we are rolling it out. In terms of how it has gone so far, I would stress that it is still pretty early days. We are seeking to implement all three phases on the basis of a test-and-learn approach as we go. Again the phased approach gives us the ability to see what is working and what is not working so well in phase one, before we go out to phases two and three. There are really positive and encouraging signs. Emma might want to add a bit more detail on cultural change within organisations and adaptation through triage processes, ensuring that the types of hazards we are trying to get at are being addressed in a really timely manner. Challenges have been highlighted as well, which is why we will seek to address all those in phases two and three. A good example is where we can be clearer on our expectations in terms of guidance, which Emma might want to add to. Again, as we go to phase two, the test-and-learn process is allowing us to ensure that we are learning the lessons and that providers can manage those further phases.

Emma Payne98 words

The Minister has largely covered it, but the test-and-learn process is and will continue to be ongoing. We are doing an awful lot to understand how it is working for tenants and landlords and where there are good systems going in that other landlords can learn about. As the Minister said, there are some encouraging signs of culture processes being adapted as we go through. Similarly there are some areas where we might want to improve the guidance and make it clearer, both for tenants and for landlords, which we will do as we go through the phases.

EP
Sarah SmithLabour PartyHyndburn38 words

That sounds largely positive. Will there be a formal way in which some of that data and the findings are shared and published as you move towards phase two? Is phase two still anticipated for later this year?

Let me take those in turn. We have feedback and engagement with local authorities but we do not have data from individual local authorities or registered providers as to the precise caseload they have and so on. We will get national-level data on how much is coming through the ombudsman and the courts if it has to go to court. Obviously Awaab’s law is premised on the basis that you get that timely redress, but if not you can take it to court with the ombudsman. We do not have that detailed aggregate data from all RPs on that side. In terms of rolling it out, the important thing to note, which is why we started with the hazards we did in phase one, is that the sector had—not uniformly but largely—geared up to implement Awaab’s law as we have applied it to damp and mould, for example. In the wake of Awaab Ishak’s death, there has been a huge focus on damp and mould. Lots of providers had already taken action outside Awaab’s law coming forward. When we extend to that wider set of hazards in phases two and three—excess heat is a good example—there are challenges in terms of how prepared RPs are for that. As much as we have seen really positive signs of cultural change, there are issues such as the triage process that are really challenging. When a call comes in, how do you decide whether it is a routine repair or an Awaab’s law case? How do you guide residents? We have a whole programme and campaign to try to raise awareness about the sort of things that residents should seek redress from through Awaab’s law. There are challenges that come forward with the further phases. On the timeline, it remains as stated in February WMS. It was my colleague from Ashton-under-Lyne who published that particular WMS where we committed to phase two this year. We remain on track to do that.

Sarah SmithLabour PartyHyndburn50 words

We have heard concerns—I have raised this as well—about why the protections could not also extend to private renters, to give them that same redress in respect of serious hazards that might go on for a prolonged period. When might they be able to expect to benefit from Awaab’s law?

We have not stated a specific timeline in terms of the roll-out of Awaab’s law to the private rented sector. Unless I am mistaken—the Chair can tell me—I think the Committee estimates or thinks it is appropriate that the roll-out happens in 2028-29. That would be a reasonable estimate. Certainly there is no reason why we should not be able to roll it out in this Parliament but—here is the important qualification—the PRS is obviously very different in nature from the SRS. We said we would consult, and we will, about precisely how we roll out Awaab’s law for private rented sector tenancies. There is a very different set of challenges, for reasons that I hope are obvious.

Sarah SmithLabour PartyHyndburn25 words

Do you want to talk a little about some of the challenges? It would perhaps be helpful for us to hear what you are anticipating.

I feel like I am dominating. Let me bring in Emma or Jo to talk through some of the challenges. It goes to the size of some providers.

Joanna Key128 words

I guess where you have the social renter sector—Emma can expand—you obviously have a smaller number of very big landlords that are much more professionalised. With the private rented sector something like 45% only own one home, so it is a very different kind of sector. With the Renters’ Rights Act we have seen the difficulties in making sure that communication is as good as it can be with that sector, and making sure that all the requirements that are placed on them are fully understood and can be complied with. It is a very different challenge, if you like, in trying to make sure that the regulations apply in the same way. We want to consult on that and look at how to do it most effectively.

JK
Chair6 words

When would that consultation start, Joanna?

C
Joanna Key98 words

We have not put a date on it but I assume we would want to do that quite soon. Something that the consultation will also cover, which is important, is what we mean by the private rented sector. Of course there is a whole section of temporary accommodation that is also in the private rented sector. The application of Awaab’s law to all types of temporary accommodation—including those occupied under licence, for example—is something that we want to make sure we have consulted on and that the consultation is as wide and clear on as it can be.

JK
Chair43 words

Soon as in maybe the end of this year? The latest data from Citizens Advice showed that 75% of private renters have highlighted that they have suffered from excessive damp and mould, and some have lived in those properties for over a year.

C

We are seized by the urgency as well. It is worth pointing out a slightly bigger-picture conceptual argument that I want to register with the Committee. The new decent homes standard requires a landlord to address category 1 hazards. Over time we want to have that standard driving up overall standards, as the previous one did—not uniformly successfully, but the rates of non-decency have really come down. In an ideal world, the need for Awaab’s law disappears over time as the decent homes standard drives up standards overall, but there probably will be an ongoing role for it. In these years where non-decency is high, we obviously expect tenants to rely on it.

Mr Brash171 words

Thank you, Minister—you have successfully pre-empted my question, which is really helpful. There is a significant parallel here with regard to the decent homes standard and the work of the last Labour Government. In 2000 they set a target for bringing all social homes up to a decent homes standard. Fast forward a decade and that target had been missed. The Public Accounts Committee at the time said it would take the better part of another decade to actually get just social homes up to that level. Obviously the decent homes standard that this Government are applying is for the private rented sector as well. Taken together, that is almost 3 million homes not currently meeting that standard. You set a target of 2035—a decade target, as previously. The Committee has been on record as saying that 2035 may be too far away. Given the history of previous Governments, how confident are you that you can actually meet that target, and what are you doing to make sure that we do?

MB

We are confident we can hit that target. It is also worth saying that decent homes 1—for want of a better term—was a huge success, and lots of effort and resource was obviously poured in by the last Labour Government to pull those standards up. They did not get to 100% compliance. Again, that comes back to the regulatory penalties that apply in that scenario. It is not the case that if landlords do not meet it, nothing happens. There are penalties involved, but we will obviously aim to push for 100% compliance with that standard. Again, I have touched on this with the Committee on a previous occasion: in the SRS, landlords obviously need to comply with the existing decent homes standard. We expect them to tackle non-decency whenever it exists. We expect landlords in both the PRS and SRS not to wait until 2035—the last minute—to be pulling homes up to standard. It comes back to the point we have spoken about in terms of overcrowding and these other pressures. We have to balance the impact on supply. We want registered providers to be building new social and affordable homes as well as overhauling their existing stock. There is a balance to be struck, which is why we think the timeline as applied under decent homes 1 was broadly the right timeline to allow them to adjust. In many cases lots of providers will be bringing their stock up to the new decent homes standard well before 2035.

Mr Brash72 words

I absolutely take that point about supply. Currently, around one in 10 properties in the SRS are not up to the decent homes standard, which is nearly 500,000 properties. Do you have in your mind an accepted threshold below 100% that you would anticipate in order to balance those challenges by 2035? Can we expect to get to 2035 and there still be a significant number of properties, for the reasons stated?

MB

We will strain every sinew as a Government to get to 100%. I am accounting for the fact that that may not be possible, but we will do everything we can as a Government to ensure that we hit that standard. It is important to note—Emma may want to touch on this—that the decent homes standard obviously incorporates MEES, where we are again pushing social sector landlords to meet that updated MEES standard. We have made it much more stringent in terms of timelines on the PRS, recognising the higher rates of non-decency. The DHS incorporates MEES. Again it is another push—particularly in the short term—on PRS properties to get properties up to standard. Is there anything more that can be said about timelines and coverage, Emma?

Emma Payne144 words

I can add a couple of things. In the social rented sector, the Regulator of Social Housing—as part of its quality and safety standard—looks at compliance with the decent homes standard. It now carries out proactive inspections, which have been happening since 2024. It publishes findings on whether landlords are meeting the decent homes standard and where there are concerns, working really intensively with those landlords to put improvement plans in place and support them. In terms of the period between now and the implementation of the new decent homes standard, we are working with the regulator on what additional assurances they can get from landlords that they are preparing adequately. We are also working through how we can monitor progress—for example, through the English Housing Survey. We are looking at how we can get that suite of data in the run-up to 2035.

EP
Chair102 words

We had the Regulator of Social Housing before the Committee and that was a very interesting session. Essentially we found that that regulator has no teeth. In some cases it does not actually physically inspect the stock. There is a situation where 50% of East Suffolk Council’s homes failed to meet the decent homes standard, yet no enforcement action whatsoever was carried out. The Regulator of Social Housing is not worth the paper it is written on. What confidence can residents get when they are raising decent home standards with a regulator that frankly—for many of our constituents—will not take any action?

C
Emma Payne103 words

The Regulator of Social Housing has a range of different tools in its toolkit. Those include fines and being able to appoint or remove members from boards, for example. There is a suite of enforcement tools that they have. What they do is regulate at the landlord level and where they find concerns, the initial step that they take is to shut down any risk of harm. As I was saying, they then work intensively with that landlord to identify what the issues are and what steps need to be taken, and they keep a very close eye on that with the landlord.

EP

The only thing I would say—not to excuse the regulator of all failings, which I would not do—in terms of the new consumer standards is that they were obviously only legislated for in 2023 and they are only being rolled out now. I get regular monitoring reports of RPs that have fallen short and where performance measures are being taken. What I have seen is lots of cases of things such as C4 judgments where the provider has been pulled up to C1. The initial thrust is mediation and constructive work with a landlord; that is better than fining a landlord, which is going to impact on tenants in the round in the long term. We have seen some success stories of RPs and local authorities pulled up to standards such that they have been able to come out of the performance measures.

Mr Brash103 words

To extend that point, Jo has already highlighted some significant challenges with the private rented sector in the sense that in many respects the landlords are much harder to get to. What can tenants expect when it comes to enforcement action? How are we going to get to these landlords to ensure that action can be taken when a tenant is living in an unacceptable property? Do you not also think there is a particular risk in the private sector that landlords will simply shift to other forms of provision—such as short-term tenancies and asylum accommodation—to get around having to upgrade their homes?

MB

Maybe we can share that question, and I will do the resourcing first. We are relying on local authorities to enforce and are giving them significant amounts of money to help them do so. We provided £18.2 million in 2025-26 and £41.1 million in 2026-27 to support the new enforcement responsibilities that local authorities have through the Renters’ Rights Act. We want to move to a sustainable form of funding over the long run, because local authorities can levy penalties in their enforcement duties. In large part we want the system to become self-financing in terms of enforcement action, but there are lots of local authorities that recognise they need to step up. They have a lot of new duties and we are working very closely with them as a Department to provide them with that support. In terms of landlords being able to switch and how that applies to different tenures, I will bring in Jo.

Joanna Key206 words

To add to what the Minister said in terms of the financial penalties, because of the Renters’ Rights Act, local authorities can now fine up to £7,000 for a category 1 hazard in the PRS stock. Because of the extra enforcement funding we have provided, we assume they will take a much more active and proactive role than they have up to this point, because they just have not had the resources to do so. We are really hopeful that that will start to genuinely change the mood music on those category 1 hazards in particular. Of course you have the decent homes standard and MEES coming in, which will raise standards across the board, as the Minister said. In terms of switching, if you switch to asylum accommodation, which is one of the examples, that is regulated by the Home Office standards at the moment. It would not mean that those landlords could get away with non-compliance with decent homes. The Home Office standards are slightly different and I do not want to mislead the Committee in any way by trying to quote them—they have slightly different space standards, for example—but we can write to you and explain all that if that would be helpful.

JK
Lewis CockingConservative and Unionist PartyBroxbourne124 words

I want to expand on something Sarah said. The Regulator of Social Housing is useless. I was appalled by them when they came in front of this Committee; they gave me no confidence at all that they could do the job they had set out to do. We know that FirstPort is notorious, and lots of colleagues from across the House and from all different political parties have raised issues with FirstPort. The Regulator of Social Housing basically came to see us and said, “We’ve had a chat with them, we kicked them off the list and now they’re back on the list and everything seems to be going okay.” I would go back and watch the evidence session because it was absolutely horrific.

We can certainly review the evidence session. As you know, there is a live conversation about the regulation of property agents more widely.

Chair51 words

Minister, one issue that I constantly raise with you is when the long-term housing strategy will be published. In response to our letter, and the last time we flagged this in March, you said it would be published shortly. Are you able to update us today on the context of shortly?

C

At that point I thought it would be published shortly. I am afraid I cannot give you a date. One reason why I brought this document, and many other things, is that I want—

Chair7 words

It is not the strategy though, Minister.

C

It is a plan for social and affordable housing delivery. I wanted to emphasise that we have complementary strategies in various areas that we are taking forward. I have pressed individual Members on this, and I genuinely would love to know what the Committee thinks the long-term housing strategy can address that existing plans and strategies do not. There is still a case for pulling together all the various aspects of our plan and these various strategies into a single document, looking at issues like demographic change and the outcomes we want to seek, so it is still our intention to publish one, but I cannot give you a date. As I have hinted at across the board, we are now currently—before the summer recess—working under Cabinet Secretary guidance. That means we are looking at all those products that we might publish or announce and whether they meet that test in any way of announcing new policy or not.

Chair46 words

A lot of demand has been placed on that strategy. The Government committed to publishing a strategy to help to address the wide range of different housing policies in many areas. Obviously we recognise that there are a number of different important and sometimes competing areas.

C

The social rented sector said, “We expect that strategy to touch on social and affordable grant or regulatory changes.” We have done that through this document. The expectations for what people assume it might cover or what they want it to cover may be slightly different from the Government’s internal thinking. You will find out at the point when it is published.

Chair18 words

Would that not be answered by publishing it? We can then review and scrutinise that as a Committee.

C

Indeed, and you will be able to once we have published it.

Chair63 words

Will the strategy look at new and emerging technology? Obviously there is big growth and expansion in AI. Following on from the discussions we had around the decent homes standard, in terms of tackling poor conditions in homes and addressing emerging challenges that house builders are facing, could you give us a flavour of what could be included in your long-term housing strategy?

C

I am not going to speculate on its contents, but again that is a really good example that gets at the Committee’s thinking, because we have a whole digital planning programme that we are rolling out with the Extract and APD tools. We made a recent announcement on this. There is lots of detail out there. The absence to date of a long-term housing strategy does not mean that we are not taking action. We are very clearly stating our intentions and the outcomes we are seeking through other announcements. Emerging technologies have a huge role to play. In terms of emerging technologies for the issues we are speaking about today in terms of quality, the sector is doing a lot of work on its own. To date we have not felt the need to actively support the sector in rolling out particular technologies, but we have a very close and ongoing relationship with the sector as a whole. If that is an issue it needs support with, I have no doubt it will tell us.

Sarah SmithLabour PartyHyndburn52 words

Have you had inquiries from those who are seeking to use drones to support the development of plans and then the ability to deliver them? I have had contact from that sector. The complexity of regulation around drone usage is obviously a multi-departmental consideration. Has that been raised directly with your Department?

I do not know about the Department; it has not been raised with me directly. I remember I was really seized of it at the time because some powers to bring forward regulations on digital planning were in the Levelling-up and Regeneration Bill, which I scrutinised as the shadow Minister at the time. In terms of that digital programme roll-out, there is huge potential for geospatial plan products that in some cases can dissipate and mitigate concern about development when residents can see that other countries do this much better than we do. Residents can see exactly what a local plan is aiming for, targeting, massing high areas of housing growth and all the rest to try to pull in people to engage with the planning system who otherwise would not, without leaving things entirely to people objecting at the development control stage. There is huge potential, but drones specifically have not been raised.

Joanna Key83 words

No one has raised drones with us as far as I know but we have this competition for prop tech ideas where all sorts of new technologies have been raised with us. Some that we have supported have gone on to produce commercial and other tools. This is an area that is exploding, if you like, in terms of using geospatial data essentially to get much better, more effective, quicker planning decisions and plans in place. It is a really great new area.

JK
Lewis CockingConservative and Unionist PartyBroxbourne120 words

Can I implore the Minister to include a section on HMOs in the long-term housing strategy? I know I have raised this before but in my constituency of Broxbourne, HMOs are becoming a real pain in the backside. They do not need planning permission when they have less than five. When they have more than five, their licence is only renewed every five years; it is not even a yearly thing. They cause lots of issues with parking and antisocial behaviour, and quite frankly turn quiet residential streets into places where there are lots and lots of issues. What powers are you looking at giving councils—or can you give councils any extra powers—to stop HMOs where they are not wanted?

I recognise this is a real concern to colleagues across the House. It is raised with me very regularly and I have issues in my own constituency with it. Our general judgment as things stand is that local authorities already have powers to restrict the proliferation of HMOs. They already benefit from or can deploy licensing powers to ensure HMOs are safe and well-managed. We believe they have robust powers. What I want to get at with colleagues—I am more than happy to sit down with the Committee again or a cross-party group of MPs, because it is raised with me so frequently—is whether it is a case that those powers are deficient in some respect.

Chair3 words

Yes, they are.

C

I had a Conservative member say to me the other day, “I’m getting all these applications for small HMOs coming through. There’s nothing we can do about it.” I said, “Has your authority got an article 4 in place?” “No.” There are powers that are not being used everywhere. We do not have compelling evidence that those powers cannot be used or that attempts have been made to use them and have failed. For example, when an article 4 is in place and things are being refused, are they being overturned routinely at appeal? Let us understand what is going on. I would have to have some compelling evidence to bring in new powers as opposed to supporting local authorities and ensuring they are using all the powers at their disposal as things stand.

Lewis CockingConservative and Unionist PartyBroxbourne77 words

Article 4 cannot cover the whole borough; it can only cover specific areas within that. You need a high threshold—around 20%—of your properties to be HMOs. We are not near that level but you do not need to be near that level for HMOs to cause a problem, so the article 4 direction does not necessarily work. It needs to be a lot looser in terms of councils having more powers to implement an article 4 direction.

I can check whether I am correct but I believe I am aware of whole-borough article 4s. I had an Adjournment debate on one the other day. I will just make this final point. We consulted in the NPPF on proposals for a more flexible policy in relation to the use of article 4 directions, so that planning authorities can remove permitted development rights as necessary to safeguard the amenity or wellbeing of areas. We are looking at strengthening policy again, looking at the feedback received on that particular point in respect of HMOs and the planning framework.

Mr Brash148 words

The singular challenge around article 4—my local authority is in the process of introducing it; the last Labour administration started that process and it has not yet been completed—is the length of time required to consult over introducing article 4. What happens is you have a year-long process where you consult over article 4 and every single private landlord who wants to put a small HMO into the constituency applies immediately, and you get a flood of HMOs ahead of the article 4 implementation coming into effect. It is self-defeating as a result of that consultation process, and that is what needs to change. We should simply have a case where all HMOs have to go to the planning committee. There should not be a necessity to have an article 4 implementation because ultimately, even when you do it, it creates a bigger problem for the constituency area.

MB

I agree with lots of that. That is very useful feedback. More of that please. I encourage the Committee to do a review and a response on this specifically. We would love to get at some of the issues of consultation lengths and all the rest of it. I will just say as a slight counterweight there is a role for HMOs in the housing system. They are not always and everywhere a cause of antisocial behaviour or detriment to the wellbeing and quality of life of an area. I absolutely recognise that their proliferation and excessive concentrations of them in lots of places can cause real issues.

The second phase of the Renters’ Rights Act is due to be implemented later this year. Can you tell us specifically when you plan to begin rolling out the reforms?

No. In terms of pre-empting announcements to Parliament and giving you specific dates, we have made it really clear. You are always willing to try but you are not going to extract.

Sometimes you give us a deadline.

Mr Speaker would have sharp words with me if I preannounced things.

Chair4 words

The answer is shortly.

C

Phase two involves the roll-out of the ombudsman and the database. These are big, impactful reforms. There is a lot of detail to work through. For example, what sits under the database? How much data? What type of data do we want to collect? These are really big questions to work through. We have already started taking the SIs through for some things. I took the framework SI through for a new ombudsman just the other day in a Committee. We have said from late 2026 to 2028 is the timeline for the roll-out of phase two.

I suspect I am going to get similar answers. Can you share with us any more on what is going to be included in the database and how that is going to be helpful in driving up standards?

Not really. In Committee we touched on some things that we think are really logical and uncontroversial things for it to track—for example, gas and electrical safety certificates. I made a big point of this in opposition. There are lots of requirements that have grown up around section 21 notices that it would be very logical to extend over. There have been calls from various organisations to get into a far more expansive list of things to record. Should the database appropriately record rent levels, rent history, history of enforcement notices and all this? You can start to really make it a large data collection. In all that, we will be balancing what is proportionate for landlords to want to submit and what will benefit residents in terms of the information they have. That is a big piece of work.

Why would you not include rent levels in that?

As I just said, you could include every piece of information about a house and its history if you really wanted to be as expansive as possible. I think landlords would push back and say that that is not practical.

The other part of the Renters’ Rights Act is that you have to prove any rent increases within market conditions. I cannot work out how you would be able to come to a calculation of what current average rental prices are in an area, as opposed to new average rental prices, without having that level recorded by the database.

To be clear, I am certainly not ruling out rent levels and historic rent levels being part of the database, but I would have to take a judgment in the round about what is reasonable and proportionate to ask the database to record and what are the benefits from any particular addition. We got loads of feedback on this throughout the passage of the Act. There will be further opportunities for people to feed in about what they want to see the database bring forward.

Sarah SmithLabour PartyHyndburn33 words

How will you ensure that the database has the take-up you are dependent on? To some extent it is a voluntary engagement with that process, because it would be very challenging to enforce.

There are penalties under the Act for not engaging with the database.

Sarah SmithLabour PartyHyndburn50 words

But in practical terms, in many ways the enforcement is your last line of defence, isn’t it? I am interested in whether, although landlords will have to sign off on what is within it, you anticipate extending the ability of their agents or representatives to undertake completion of the database.

I will double-check as I always do, but I am near certain that agents acting on their behalf are covered by the database provisions in the Act. It goes to Mr Brash’s earlier point: how are we funding enforcement? We are funding enforcement to local authorities in terms of these new duties through direct funding from the Department. Local authorities can levy fines, which they can use to augment and enhance their enforcement capability. Again, we will ensure that future database revenue fees are supporting local authorities to carry out the enforcement functions.

Mr Brash85 words

The issue with rights sometimes is that they are only as good as your awareness of them. Certainly from my experience as a constituency MP, for a whole host of complex reasons those individuals who are most in need of these rights are also the ones least aware of them. What are you planning to do in conjunction with local authorities in terms of that additional funding to ensure that people actually know what their rights are so they can demand that they are upheld?

MB
Joanna Key130 words

There was a huge communications campaign that went on around the Renters’ Rights Act and its implementation, including the use of enormous amounts of social media, radio and visual campaigns. It is impossible for me to say we definitely reached every person but we have tried to pull every possible lever to make sure the comms get out there to as many people as possible. We have used as many possible avenues to do that, because we recognise that not everyone uses print media anymore; it is obviously a much different media landscape than it was 20 or 30 years ago. I totally take your point about the most vulnerable not always being able to access this but we have tried as hard as we possibly can to raise awareness.

JK
Mr Brash15 words

Should it be a requirement of the landlord to inform the tenant of their rights?

MB
Joanna Key9 words

It is part of the requirement of the landlord.

JK

There is a statement of terms and other things that come forward with the Act. We have obviously thought about the Act quite honestly. There is a role for local authorities here and there is a role that the Department is supporting in rolling out best practice on enforcement across local authorities. Some do exceptionally well; others face challenges.

There is obviously quite a substantial fine if they do not. Do you have any data or evidence on the level of compliance with that passing on of information?

Joanna Key3 words

On the fine?

JK

Not on the fines necessarily, but do you have any data on how many landlords have passed on the information on the new Renters’ Rights Act? It is not just new contracts now, is it? Existing ones will have to pass on as the Bill progresses.

Joanna Key33 words

We have some information. We did some survey evidence on how the messages had got out. I do not have that to hand but we can definitely let you know what that is.

JK

It is quite early days for some of this stuff. For tribunal challenges, for example, we are just seeing the very early data coming through.

Joanna Key24 words

The fines of up to £7,000 have literally just been introduced so we would not expect to see any evidence on that quite yet.

JK
Andrew CooperLabour PartyMid Cheshire60 words

On the private rented sector database, I will declare up front that I spent about 20 years designing systems like this. But I no longer do so; I do this now. For the avoidance of doubt, will the system be hosted and owned by MHCLG and local authorities will have access to it? Is that how you are operating it?

To avoid me giving the Committee mistaken information, can I write and set out exactly where we are and what is public and so on?

Andrew CooperLabour PartyMid Cheshire51 words

That’s fine. In terms of what you could put in that letter to inform me, I wanted to understand how the database will operate. Is it a national system that landlords will be able to access through a common portal and register all their properties on? Will local authorities have access?

Yes, put simply, but I will give you some additional detail and clarification.

Andrew CooperLabour PartyMid Cheshire63 words

I am interested in whether local authorities will be able to see only the properties in their area or properties owned by a landlord in adjacent areas. I am thinking of London in particular, where you have quite a small geography close together. If I were in Camden, could I see a private landlord in Islington? I might be getting my geography wrong.

Not to deflect but these are the type of really practical nuts and bolts issues that we have to work through as we bring the regulations forward. These are big sets of regulations for the ombudsman database eventually in phase 3, with Awaab’s law and the decent homes extension.

Chair37 words

Minister, can I refer you to the Committee’s recommendations on the PRS database? I am hoping we have made a lot of helpful recommendations that yourself and officials may want to consider when pulling together that database.

C

We always take the Committee’s recommendations seriously. We have lots of useful feedback to date. Obviously the database will be publicly accessible as well at some point after it is stood up.

Chair53 words

The social and affordable housing programme has seen the biggest cash injection ever of £39 billion for homes over 10 years, and the Government have an ambitious target of 60% of those homes being for social rent. Could you just give us an update on how that programme is going to date please?

C

As you say, there was a generational increase in the social and affordable housing grant. We went out seeking bids with both prospectuses and guidance: GLA on one hand, Homes England for the rest of the country. We had a—I will not say necessarily surprising—phenomenal amount of interest in that programme, far more than the programme can cater for, with bids way in excess of £39 billion in total. The programme closed on 15 April. We are working through, with Homes England and the GLA, all the bids that have come in.

Chair7 words

Were the bids from February to April?

C

Yes. Again, I refer you to the Cabinet Secretary guidance about how quickly we can confirm those bids.

Chair64 words

Minister, you may be aware of a recent report by the Financial Times about developers scaling back on the number of social and affordable homes that they plan to build because of the limits imposed by the Government grants in the early years of the programme. Is there any truth to that? Do you have any concerns in terms of bringing that funding forward?

C

I would answer that in two ways. First we received more bids than there is grant because they come in individually from providers. The programme as a whole is always going to have to disappoint some providers in terms of some specific bids that come in when it makes final decisions. That is just to say that it is heavily oversubscribed. It is also the case that the programme as a whole straddles successive spending reviews. We as a Department have a spending review profile in this period and we are working within the constraints of that profile.

Chair25 words

The National Housing Federation reported that large housing associations have also scaled back their development plans. I am not sure if you have seen that.

C

To be really clear, Homes England and the GLA went out to providers to say as such and to ask providers to calibrate their bids in light of being oversubscribed.

Chair36 words

In terms of that oversubscription, do you share the NHF’s concerns that because of the oversubscription and big demand there could be fewer affordable homes being built in the first phase over the next three years?

C

They are asking for more money.

Chair5 words

Yes, with another 21 developers.

C

Would I love to double the social and affordable homes programme? Yes, I would love to. We have to cut our cloth. We can only allocate the amount of funding that is in the programme, and within the spending review profile we have. A decision to reopen that would mean reprioritising funds either within the Department or outside the Department across Government. That may be something the new Administration wants to look at.

Mr Brash158 words

I am going to shoehorn this in. A challenge that many local authorities face—I appreciate this is very slightly outside your ministerial area and more for one of your colleagues—is the practice of local authorities in some parts of the country discharging their homelessness duty by moving large numbers of families to other parts of the country. That has had a massive impact on the provision of affordable homes within the receiving authorities. Sometimes this is done within the rules; sometimes this is done without the rules. Given the bids you are currently considering, I believe that practice should be banned in almost all cases, with the possible exception of issues such as domestic abuse, where geography becomes important. Surely there must be some kind of requirement on local authorities that are bidding large sums of money for affordable homes to stop this practice if it is having a detrimental impact across the country. Would you not agree?

MB

What do I say to that, Mr Brash? This is a problem that cannot be tackled at a local authority level. It is a countrywide problem for local authorities including my own, which discharges people into TA in lots of parts of north Kent, for example, because it cannot do so locally. Reaching for the option of banning it outright would cause some serious problems in local authority areas. To the extent that this comes back to the social and affordable homes programme, this is where we have to get the balance right on the national split and the decisions. If we give less money to London, for example, it cannot build those homes that will eventually stop the need for discharging people into different local authority areas. It is a real balance in terms of how we get the split right across the country and what bids we are leaning into so that local authorities can get at the heart of the problem. Tell me if I am wrong. My experience is that my local authority would certainly always seek to house anyone who is discharged or put in TA in the local area. It would bend over backwards to try to use the local authority housing fund, grant funding and various arrangements to try to keep people in borough, not least because you have people travelling back to schools over large distances and all the rest; there is a footprint and connection there. Send me evidence if there is but I have not seen many local authorities doing this.

Chair9 words

There is a lot of evidence, mostly from boroughs.

C

Do local authorities have a choice?

Mr Brash83 words

The numbers of families being moved out of particularly, but not exclusively, London boroughs has tripled in three years. As you say, my concern in terms of that geographic split and how we are going to build affordable homes is that if we invest a huge amount of money in affordable homes in places like Hartlepool, and that demand is sucked up by families being moved from other parts of the country, then we are defeating the whole object of the programme anyway.

MB

I am taking from you that you want to see generous allocations to London and other parts of the country so they do not have to face this problem. That is the balance we face. Families are being housed in these areas because of the lower rental values.

Mr Brash5 words

Yes, 100%. It is cheaper.

MB

It is a whole-country problem in the sense that we have to deal at source with those parts of the country that are facing those pressures and cannot house people locally. I absolutely agree with you. Just shutting off the ability to do that would cause some quite serious problems, but I recognise the concern.

A key strategic partner for increasing the supply of new social homes with Homes England is Vistry, and I do not think you will be surprised to hear that they have faced many challenges recently. Given those challenges, has the Department or Homes England looked at the future of that key strategic partnership? Are contingency plans being put in place in case Vistry faces further challenges?

Jo, you can supplement this answer. There are a number of points I would make in response to that. One is that a number of house builders are facing very considerable pressures at the moment, largely but not exclusively related to the impact of the conflict in the middle east and the viability challenges they have faced across the country. The Department will always look at what would happen in various scenarios if house builders faced real difficulties, particularly where Homes England is invested in partnerships. What we have seen over recent years in many cases is the consolidation of the market—that is, a house builder taking on another house builder. Barratt Redrow is a good example of what can happen that does not require Government intervention.

Do you think there is place in the market for more consolidation?

I would be reluctant to speculate on that point. I suppose what is important—it goes back to the SAHP—is that we recognise across registered providers the importance of providing clarity and certainty on funding allocations at the earliest possible opportunity.

Chair67 words

Thank you, Minister, for appearing before the Committee, for always being generous with your time and your responses and for engaging with us in our various reports and inquiry sessions. Obviously there are a lot of changes beyond your and our control, but we hope that you remain in place as the Housing Minister and that we continue to address the issue of solving the housing crisis.

C

Thank you, Chair. I will chase your May letter through my private office.

Housing, Communities and Local Government Committee — Oral Evidence (HC 42) — PoliticsDeck | Beyond The Vote