Covid-19: Housing

Statement

The following Statement was made on Wednesday 13 May in the House of Commons.

“Moving home can be a life-changing moment for many among us. For young families spreading their wings after a new arrival, for young people leaving their parents’ home for the first time, or for working people changing towns or cities to start a new job, moving home means planting your roots; laying your foundations. A home is more than four walls and a roof—it is a sanctuary, a form of protection, and a link to your community.

We know that people’s homes are at the heart of their own personal stories, and throughout the course of this emergency, we have, by necessity, put many of those stories on hold, to protect our communities and to save lives. When the essential ‘Stay at home’ message was announced, we changed the rules so that people could move home only if they thought it was ‘reasonably necessary’. For many people, this has put life on hold, with this most relevant and essential industry in a state of suspended animation. Over 450,000 sales have been stuck in the system, unable to be progressed—not to mention the substantial number of rentals that have not gone ahead. Every month, 300,000 tenancies come up for renewal, a proportion of which result in people moving home. The pressure to move has, for some, become acute, with profound legal, financial and health implications.

We made that decision in order to keep the country safe, but as we move into the next phase of our Covid response and embark on our path to reopen, restart and renew the economy, we recognise the need to let people get back to living their lives. That is why today I am announcing a comprehensive, clear and coherent plan to reopen the housing market and to restart the construction industry. With immediate effect, we are lifting the temporary freeze on moving home, meaning that, as long as they are not shielding or self-isolating, anyone can move, any time and for any reason.

The industry is broad, and has many moving parts, so we want to be clear: each of the building blocks of the buying and selling process are now back in business, as long as it can be done safely. Here, then, is our plan for the reopening, restarting, and renewing of the housing market and the construction industry: estate agent offices can now reopen, removal companies can get moving again, surveyors, conveyancers and valuers can go back to work, and show homes on sites can reopen.

It is crucial that these changes happen safely and that we continue to tread with caution, to control the virus and to protect the public. This means that as these businesses reopen they will need to adapt their practices; for instance, with virtual viewings where possible and cleaning thoroughly after viewings and when moving. I have published detailed guidance, informed by public health advice, to explain how this can be achieved, building on the existing safer working guidance, with all parties observing hygiene measures and social distancing guidelines.

For each of the other elements that make up the wider construction industry—a sector that employs more than 2 million people—the same applies. If people are self-isolating or have coronavirus, they should of course not be moving or going back to work. All parties involved in home buying and selling should prioritise agreeing amicable arrangements to change moving dates for individuals in this group.

This is the most radical restarting of an industry in the first phase of our national recovery road map. It was not an easy decision to make. With few, if any, transactions, there is no visibility and no precedent with which to accurately judge the state of the housing market, but I do know that in every economic recovery in modern British history the housing market has been key, so let me be clear to all who work in the sector, have started a business in it, have invested in it, or rely upon it: I am doing everything I can to help the industry bounce back.

A healthy housing market means more than buying and selling houses; it requires building them too, but Covid-19 has had a profound impact on housebuilding, with activity on sites down by around 90% since this time last year. I am delighted to see so many construction companies back at work already, and I am pleased to be supporting their efforts by today announcing the launch of a safe working charter with the Home Builders Federation. Those working on site should feel confident that their essential jobs are also safe jobs.

I am taking further steps to support safe housebuilding by allowing more flexible working hours on construction sites, where appropriate and with local checks and balances. I am allowing sites to apply to extend their working hours, again with immediate effect. Varied start and finish times will make it easier for sites to observe social distancing, will take pressure off public transport, particularly in our core cities, and will keep Britain building.

The planning system, too, must be able to operate safely and efficiently during this time, which means, as with many other sectors, making more use of digital technology. I want the Planning Inspectorate to be at the forefront of this work—it is good to see the inspectorate now undertaking its first virtual hearings. I am asking it to make all hearings virtual within weeks. We are going to get the planning system going again and bring it into the digital age at the same time.

As we look to the future, we must remember that the prospects for Britain’s housing market are key to our economy: when this sector succeeds, we all succeed. This is what shapes our vision for the housing market: more homes, safer homes, homes of higher quality, more beautiful homes, homes of all types and tenures, for all people, rooted in and at the heart of their communities. Today, we reopen, restart and renew the housing market and the construction industry to protect lives, save jobs and refresh and renew our economy.”

The Statement was considered in a Virtual Proceeding via video call.

My Lords, I declare my interests as a vice-president of the Local Government Association and as a trustee of the United St Saviour’s Charity, which owns two almshouses for the benefit of Southwark residents.

I pay tribute to everyone in the public and private sectors who is working to keep us safe, delivering our essential services and ensuring that our shops are stocked with food so that together we can get through this crisis. These are the real heroes of the crisis, and they come from all over the globe. Everyone deserves to live in a home that is warm, safe and dry.

I am supportive of the Statement but with the underpinning that keeping people safe must be paramount in the thinking as we move to this next phase of fighting the pandemic. There are great risks and we do not want to do anything that risks a second spike in infections.

Of course, there is much that is not in this Statement, so my first question for the Minister is: can we expect further updates from his department on other aspects of housing in the next few days? Furthermore, can the Minister tell the House what the next phase of fighting this pandemic will look like for homeless people? Will he take this opportunity to confirm that they will not be sent back on to the streets? What discussions have taken place with the Local Government Association and Crisis on this next phase of the pandemic battle for homeless people?

In respect of viewings of properties for sale or rent, what review mechanism will the Minister deploy and how long after the physical viewings are in progress will he deploy it—one month, two months, three months? What discussions have taken place between him or his officials and the Residential Landlords Association, the Association of Residential Letting Agents, the National Association of Estate Agents, Generation Rent and Shelter, among others, on the resumption of viewings and lettings and the safety both of those coming to visit and of those whose properties are being visited?

My Lords, I thank the Minister for taking questions on this Statement made by the Secretary of State last Wednesday on the restarting of the construction industry. It came as a surprise to many in that sector, given that they have continued to work throughout the lockdown. In the week before the Secretary of State’s announcement, only 37% of sites remained closed. For the smaller businesses that have been closed, this is often due to supply chain issues alone.

Given how keen the Government are to get all construction back to peak levels, can the Minister reassure us that safety in that sector is as important as in any other? What steps are being taken to ensure that low-skill workers in construction are safe and social distancing? The latest ONS figures suggest that construction worker death rates from coronavirus are double those of health workers. You have only to take your daily exercise past most building sites to see a frightening absence of social distancing. When the Minister answered a question from my noble friend Lord Stunell on 14 May, he committed to provide appropriate guidance to ensure availability of PPE and testing for the construction sector. What progress has he made? Can all construction workers now get testing?

Can the Government reassure us that all types of tenure are equal? With this Government it sometimes appears that some types of tenure are more equal than others. The Housing Secretary’s Statement talks at length about the importance of a home, but the only policies available are for owner-occupiers. People who rent need to know that their home is secure and safe. They need that assurance now. Will the Government agree to extend the current change on Section 21 evictions to give renters the security they need over a long-term period in advance of the 1 June deadline? Why did the Secretary of State not use the opportunity in this Statement to do just that? Will the Minister agree to not only maintain the local housing allowance at the current 30% of market rent but consider increasing it to help those most in need?

A number of questions have been put; where I do not know the answer, I shall write to the noble Baroness or the noble Lord and place a copy of my response in the Library.

I shall start with the questions put by the noble Lord, Lord Kennedy. A ban on evictions is in place, which we shall review in due course once it is released. We have engaged with a number of stakeholders regarding rough sleeping. It is incredible that 90% of rough sleepers—some 5,400 people—have been taken off the streets. Engagement is happening with local authorities, charities and, as I know, the Local Government Association, to come up with a big, bold plan to ensure that these people remain in secure and settled accommodation and do not just get handed back on to the streets.

The noble Baroness mentioned being able to resume construction safely. I note the ONS figures. We know that guidance has been issued on how to restart safely, including a charter on construction safety. Over 100 construction companies have signed that charter and we look to more to do the same. Obviously, the raised levels among construction workers are not necessarily down to construction; there could be other factors such as underlying conditions. We will continue to monitor that.

We assume that access to PPE should be no problem with routine construction. Construction workers have access to testing, as do other key workers, as we reopen the economy. I note the comments around low-interest rates to tenants. I shall write specifically on that to the noble Baroness. We need to recognise that restarting construction is a key part of reopening our economy. The Government recognise that between 600,000 and 900,000 people are employed in the housing sector alone and many millions in the wider construction sector; but we understand the need to do this safely.

We now come to the 30 minutes allocated for Back-Bench questions. I ask that the questions and answers be brief so that I can call the maximum number of speakers.