MHCLG Says Publishing Help To Buy Forecasts ‘Not Appropriate’

MHCLG says it is “not appropriate” to set out annualised net forecast expenditure or costs relating to Help To Buy because they are not reflective of the actual cost and return to government. This stance was upheld by Housing Minister Christopher Pincher in response to a written Commons question from Clive Betts (Lab – Sheffield South-East). In September, the Commons Public Accounts Committee (PAC) published a report saying Help To Buy will have tied up some £29bn in cash terms by the time it concludes in 2023 – but the value of what it has achieved is uncertain when many of those helped could have bought anyway. Read more on 24housing.

https://www.24housing.co.uk/news/mhclg-says-publishing-help-to-buy-forecasts-not-appropriate/

Help to Buy Scheme – Parliamentary Written Answer

Mr Clive Betts: To ask the Secretary of State for Housing, Communities and Local Government, with reference to the investigation into Persimmon new build properties, which found thousands of homes did not comply with building regulations and many of which were bought under the Help to Buy scheme, what plans he has to ensure that properties sold by other developers under that scheme conform to (a) building regulations and (b) other requirements.

Esther McVey: House builders are responsible for ensuring they build high quality homes which are fit for purpose. Persimmon’s independent review has identified serious failings and they will want to take immediate action to address the concerns raised. We will also create a New Homes Ombudsman to ensure homebuyers have a means of redress.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2019-12-20/266

HCLG Committee Calls For Immediate Ban On Combustible Materials

The Housing, Communities and Local Government Committee has written to the Housing Secretary over banning combustible materials. Clive Betts, chair of the committee, welcomed the announcement of a consultation on banning the use of combustible materials in the cladding on high rise buildings but called on the Government to go further by implementing an immediate ban. The Government announced the consultation today after the publication of the final report of the Independent Review of Building Regulations and Fire Safety. Read more on 24housing.

http://www.24housing.co.uk/news/hclg-committee-calls-for-immediate-ban-on-combustible-materials/

Betts: Government Needs To Lift HRA Cap

Clive Betts believes councils should be allowed to raise their own money in order to build homes their communities need. Betts stated he has “always been in favour of lifting the cap off the Housing Revenue Account”. He said: “If we are going to have real local freedom then the housing revenue account has to do that. Currently it is the only capital spending a local authority does which isn’t governed by prudential borrowing. Let’s take the cap off. The LGA and all local authorities have argued for that and I’d agree with them.” However, he believes a major barrier to councils building again is the loss of expertise in planning and housing development. Read more on 24housing.

Right To Buy Puts 40% Of Ex-Council Homes In Private Rental

Forty per cent of ex-council flats sold through right to buy are being rented out more expensively by private landlords, the Commons communities and local government select committee has found. In the committee’s report MPs expressed concerns about “unresolved issues” with the government’s proposed extension of right to buy to housing associations, and a levy on the sale of vacant council homes. It found that in some areas councils could be forced to sell up to 97% of properties upon vacancy. Clive Betts, chair of the committee, said: “We are concerned that there are a number of unresolved issues with the government’s policy which could have a detrimental effect on the provision of accessible and affordable housing, particularly affordable rented property.” Read more on the Guardian website.

Planning Consultation Extended

A consultation into proposed changes to the National Planning Policy Framework will be extended by a month following concerns raised by the chair of an influential select committee. The consultation will now run until 22 February. Clive Betts, chair of the Communities and Local Government Committee, earlier this month wrote to communities secretary Greg Clark asking for an extended consultation period. Find the consultation document on the GovUK website.

Homelessness Inquiry Launched

The CLG Committee has announced an inquiry into the causes of homelessness, as well as the approach taken by national and local government to preventing and tackling homelessness. Clive Betts MP, chair of the Committee, said: “Reports suggest homelessness is on the increase. As a Committee, we will want to examine the causes of homelessness, the steps to tackle homelessness, and how issues of social housing are having an impact on homelessness numbers. We’ll also want to look at how effectively homelessness levels are being monitored – is government recording and presenting a true picture of those in unsuitable housing or sleeping rough?” Written evidence should be submitted by 8 February 2016. Read more on the Parliament website.

Lewis Rows Back From Million Homes Target

The housing minister has distanced himself from the prime minister’s pledge to build a million new homes by the next general election. Brandon Lewis told members of the Commons CLG committee that the prime minister’s target remained important but would not necessarily result in more social housing. Committee chairman Clive Betts (Lab) asked Lewis to explain what the target actually was: “The prime minister has promised a million homes extra in this parliament. Just to be clear is that starts or completions?”  “What the prime minister said was we want to see a million homes across the different tenures and types. Making sure we facilitate that is quite important.” He also refused to be drawn on whether there would be more social rented houses built by the end of this Parliament. Read more on 24dash.

Supported Housing – Parliamentary Written Answer

Mr Clive Betts: To ask the Secretary of State for Communities and Local Government, how his Department will administer the new arrangements for social housing tenants on higher income to higher rents; and whether his Department will require all tenants to provide details of their incomes.

Brandon Lewis: The Budget promised a consultation on aspects of the policy. That will be published shortly, and following responses we will set out the detail in due course.

CLG Committee Extends Deadline for Evidence

A high-profile committee of MPs investigating the financial viability of housing associations will be flexible over its deadline for evidence, after complaints over timing and “complex” terms of reference. A number of housing associations were unable to meet the CLG Committee deadline of 28 August, prompting Clive Betts, the committee’s chair, to confirm late submissions will be accepted. The inquiry was launched by Labour MP Mr Betts on 29 July to examine the impact of government policies including the Right to Buy, reduced social rents and welfare reform. The Northern Housing Consortium (NHC) said it was not making a submission after a call to more than 100 of its housing association members yielded interest from just one respondent. Read more on Inside Housing.

ONS Confirms It Will Examine Associations' Status

The Office for National Statistics (ONS) has confirmed it will examine whether to reclassify housing associations as public bodies once the government has released details of its Right to Buy extension. If the ONS decides on reclassification, housing association debt would be counted as public borrowing, pushing £60bn on to the government’s balance sheet.  Jonathan Athow, deputy national statistician for economic statistics at the ONS, said the ONS would ‘certainly’ consider implications for the ownership of associations’ assets and liabilities. In a letter to Labour MP Clive Betts, Mr Athow said the government can submit fully-formed policy proposals to ask the ONS how they would affect the recording of official statistics. Read the letter sent by ONS.

IDS Warned Of Social Housing Evictions Risk

A lower benefit cap combined with the introduction of direct rent payments under universal credit could lead to a rise in evictions from social housing, Iain Duncan Smith was warned in the House of Commons yesterday. Clive Betts, Labour MP for Sheffield South East, asked the Work and Pensions Secretary whether he was aware of the problem and what consultation his department had carried out. Betts told MPs: "When universal credit is introduced, if the family also gets a welfare cap, it is the housing cost element that is squeezed by the cap. No longer will the amount of universal credit be paid directly to the social landlord to cover the rent. Can the Secretary of State not see that that could lead to a rise in evictions? Is he aware of the problem, and what will he do about it?” Read more on 24dash.

Betts Questions Effectiveness of Housing Programme Funding

Following receipt of a letter from Eric Pickles Clive Betts MP said:

"At a time when the country urgently needs to deliver more housing, I am very concerned that public money for key house building programmes is sitting idle in the Government’s coffers.  The fact that money dedicated for housing is swishing around the Department’s bank account will be of little comfort to those people desperate to have their own roof over their heads. The Build to Rent Fund was supposed to provide equity finance to get much-needed private rented housing off the ground. However, the Government has now announced that some 80% of the fund will be ‘reprofiled’, meaning spending will be deferred to future years rather than starting to help people now. Read more on the Parliament website.

Housing Benefit: Social Rented Housing – Parliamentary Written Answer

Clive Betts: To ask the Secretary of State for Work and Pensions, what estimate he has made of the effect of the under-occupancy penalty on his Department's expenditure in this Parliament; and under what categories of expenditure that effect has happened.

Mark Harper: The removal of the spare room subsidy is saving around £1 billion over the course of this Parliament from Housing Benefit expenditure in the social rented sector.

Chair of CLG Committee 'Very Concerned' About Help to Buy

Clive Betts says he is ‘very concerned’ by the findings of a National Audit Office report about the government’s help to buy equity loan scheme.  Mr Betts, who is chair of the CLG committee, said Eric Pickles’s department appeared to have embarked on the scheme with ‘little assessment’ of the costs and risks involved. Following publication of the NAO’s probe into help to buy, Mr Betts said he was ‘struggling to square’ information provided by the department previously with the fresh findings of the NAO.  The report called for more clarity from the department on how many buyers using the scheme wouldn’t have bought a home otherwise, as well as an assessment of what level of new supply had been created by the scheme. In terms of value for money, the report said it was unclear at this stage what the cost to the taxpayer would be of the £3.7 billion investment in the property market. Download a copy of the report from the NAO website.

Housing Benefit: Disability – Parliamentary Written Answer

Mr Betts: To ask the Secretary of State for Work and Pensions for what reasons his Department's guidance to local authorities on assessing applications for discretionary housing payments, gave discretion to authorities to take account of applicants' entitlement to disability living allowance.

Steve Webb: The regulations covering discretionary housing payments (DHPs) are The Discretionary Financial Assistance Regulations 2001. These regulations allow local authorities to ask for information relating to a claimant's circumstances and income, including entitlement to DLA, as appropriate to enable them to make a decision on a DHP application. DWP guidance states that local authorities may wish to consider the purpose of the claimant's income, and where appropriate can decide to disregard income from disability related benefits as they are intended to be used to help pay for the extra costs of disability. In addition local authorities may like to bear in mind that such money might be committed to other liabilities for which the money was intended.  Local authorities have a duty to act fairly, reasonably and consistently. Each case must be decided on its own merits, and decisions should be consistent throughout the year. However, if a claimant is refused DHP, they could ask the local authority for the decision to be reviewed.

Government's Handling Of UK Housing Shortage to Be Reviewed

Nick Boles, the planning minister, is facing a parliamentary inquiry into the government's handling of the acute shortage of new homes in the UK. Clive Betts MP, the Labour chairman of the communities and local government committee, has announced an investigation and said he would ask whether the government's two-year-old planning policy was working when only 100,000 homes are being built and at least 250,000 are said to be needed. The move came as the shadow housing minister, Emma Reynolds, attacked the coalition's "laissez faire" approach and revealed Labour had asked the former BBC chairman Sir Michael Lyons to investigate whether new towns and garden cities, capturing the spirit of Stevenage, Milton Keynes and others built in the years after the second world war, would be needed. Boles has admitted part of a key plank of the national planning policy framework might be too complex and would be reviewed. Read more on the Guardian website.

Watchdog Criticised Over Financial Ratings

The watchdog overseeing housing associations in England has come in for criticism from MPs. Select committee chairman Clive Betts said the Homes and Communities Agency's reluctance to downgrade associations' financial viability meant "nobody would have a clue" if they were in trouble.  All but one of England's housing associations were downgraded by the ratings agency Moody's in May. Moody's said the move was prompted by a "reassessment of the likelihood" of a financial bail out from the government. But despite the mass downgrade, industry regulator the HCA gave only one housing association - the Cosmopolitan Housing Group - the lowest V4 financial viability rating. Mr Betts, chairman of the Communities and Local Government Select Committee, said this "amounted to a futile exercise in locking the stable door long after the horse had bolted". Read more on the BBC website.

Universal Credit: MPs Raise Fraud Concerns

The government must give a "swift assurance" that the introduction of Universal Credit will not cause a rise in benefit fraud, MPs have said.

The Communities and Local Government Committee called it "extremely concerning" that detection systems were "still at an early stage".  It also said councils could be left out of pocket by changes.  In its report the committee said the DWP "must provide swift assurance that the transition to Universal Credit will not leave the benefit system vulnerable to fraud".  Its chairman, Labour MP Clive Betts, said: "We heard evidence that ICT systems for fraud detection within Universal Credit were still at an early stage in their development. This is extremely concerning given the advanced state of implementation. The government must act to provide assurance that the benefit system will not be left vulnerable to fraud either during or after the transition. And it must do so urgently." Read more on the BBC website.

Warning over Social Housing Cuts

The Government's cuts to social housing funding have led to a situation which may not be workable in the long term, the chairman of the Commons Communities and Local Government Committee has warned.   Labour's Clive Betts told MPs rents were rising, prompting concerns from housing associations that the model would not last much beyond the next general election.   Speaking during a Commons debate on the department's budget and recommendations outlined in the Committee's report on the financing of new housing supply, Mr Betts outlined fears that a number of associations thought they would end up paying more in borrowing costs due to rising rent arrears.  Read more on the Daily Telegraph website.