9. 8. The General Principles of the Abolition of the Right to Buy and Associated Rights (Wales) Bill

Part of the debate – in the Senedd at 6:05 pm on 18 July 2017.

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Photo of John Griffiths John Griffiths Labour 6:05, 18 July 2017

Diolch yn fawr, Cadeirydd. I’m very pleased to be able to contribute to today’s debate as Chair of the Equality, Local Government and Communities Committee, and I’d like to thank all those who provided evidence to us to help inform our work—in particular, tenants across Wales who took time out to attend our focus group events. I would like to thank the committee for their work on the Bill and to acknowledge their willingness to work together, even when we had quite differing views on important matters relating to the substance of the Bill.

Cadeirydd, our consideration of the Bill focused on testing whether the general principles will deliver the policy aims to protect the supply of social housing from further erosion in the face of a high level of demand and a supply shortage. In our scrutiny, we have considered each of the provisions in detail. In doing this, we have touched on broader issues, including housing supply and the impact of the Housing (Wales) Measure 2011. This Measure was a stepping stone to this legislation, and enabled local authorities to apply to suspend the right to buy and the right to acquire in areas of high housing pressure.

Of course, the right to buy is one of the most well-known public policies, and, since its introduction in the early 1980s, around 135,000, 136,000 local authority homes in Wales have been sold under the scheme. It has been both well used and controversial. In Wales, the policy focus in recent years has been to protect the social housing stock, firstly by reducing the level of discount available, and by offering local authorities the opportunity to apply to suspend the schemes in areas of significant housing pressure. This Bill, then, is the culmination of this approach.

We received strong evidence that indicated that all available policy levers should be used to address the significant housing pressures faced in communities across Wales. We know that there is a high demand for social housing and that most social housing providers could fill each of their properties many times over. We acknowledge that removing the right to buy and the right to acquire is not the only tool at the Welsh Government’s disposal, nor is it the main one in terms of increasing housing supply. However, it will make sure that existing and new social housing is maintained in the sector and can be used for its intended purpose: providing affordable homes for those in greatest need.

We understand that tenants will lose a right that they have been able to exercise for over 30 years, but we agree with the Welsh Government that, without abolishing the rights, there is a risk that these schemes will continue to undermine efforts by the social housing sector to increase the supply of affordable housing. Although the right to buy and right to acquire will be abolished, there are now other initiatives to help people into home ownership, including Help to Buy. Whilst some members of the committee had specific concerns about tenants in suspended areas not having a further opportunity to buy their home, the committee came to the majority view to recommend that the Assembly agrees the general principles of the Bill. While supporting those general principles, we have, however, made recommendations that we believe will improve the Bill, and I turn to these areas now.

All of our recommendations look to strengthen those provisions in section 8. These place a duty on Welsh Ministers to publish information to help tenants understand the effect of the Bill before abolition is introduced. It is intended that this information will help tenants to make informed decisions about their options. Cadeirydd, this, of course, is a significant policy change, which overturns that well-known and long-lasting policy of over 30 years. It is, therefore, vital that the Welsh Government takes the lead in making sure that those who may be affected by the change may understand the impact it could have on them, and make decisions about whether they wish to exercise their right to buy or acquire before it is lost permanently.

In recommendation 2, then, we call for the Bill to be amended to require Welsh Ministers to provide the information document to relevant organisations such as advice services and groups representing tenants. We also believe that it is important that tenants across Wales receive consistent information. To this end, in recommendation 3, we call for the Welsh Government to amend the Bill to specify the information that qualifying landlords must provide to tenants. Such information should include the dates on which restrictions and full abolition will come into force.

It is essential that tenants across Wales receive consistent information to ensure that where they live doesn’t affect the amount and quality of information they receive. There should not be a postcode lottery. Closely linked to this, we also recommend that the Welsh Government makes provision in the Bill to ensure that landlords communicate the changes in the most accessible and appropriate way. We have clear evidence to show that this is something that social landlords are good at, but, by amending the Bill as we suggest, we believe that this will ensure consistency across the sector. It will also minimise the risk of any specific groups of tenants not having the information to make informed decisions.

Cadeirydd, I’m grateful for the Cabinet Secretary addressing these issues around information in the Chamber today. I have heard, and Members generally will have heard what the Cabinet Secretary had to say. It goes some way, I believe, to addressing the concerns of the committee, but, obviously, the recommendations we make are as I have outlined them.

Clearly, Cadeirydd, in terms of the advice that will be made available, the importance of tenants having access to clear and impartial advice as to whether to exercise their right to buy or acquire is vital. We were not persuaded of the need for additional advice services, but we do feel it is important that the Cabinet Secretary monitors the impact of the Bill on the demand for existing advice services and considers providing additional support, if necessary. Again, I’m pleased that that Cabinet Secretary addressed those issues in his opening speech today, Cadeirydd, and we will all, I think, reflect on how that’s taken forward in due course.

Cadeirydd, we welcomed the opportunity to review the draft information for tenants, which was provided by the Cabinet Secretary during our scrutiny, which was very useful. By doing this, we were able to share it with stakeholders and get their views on it, and our final recommendation suggests this should be taken further by the Welsh Government and the information document tested with tenants to ensure that it is fully fit for purpose.

Cadeirydd, I can see that my time has elapsed, so, in conclusion, Cadeirydd, we recognise the importance of this recommendation. We were very pleased to contribute to the legislative proposals and we hope that our work will improve the eventual Act. Diolch yn fawr.