Contribution
My Lords, I have tabled Amendment 252A. I guess I am still learning about this Committee, because all the speakers have been exceptionally generous, saying that they support all the amendments in this group—perhaps they have not read my amendment, which excludes a certain number of properties from the decent homes standard. I think it is also fair to say that the only other amendment in this group that I actively support is that proposed by the noble Baroness, Lady Grender.
On Armed Forces accommodation, I ran some surgeries, because I was pretty appalled at the state and operations of the property arm of the Ministry of Defence, which contracted two different suppliers but did not seem to have a grip on what was going on. The change that happened nearly 30 years ago is, in hindsight, regrettable. It is why the previous Administration initiated the process, which I congratulate the Government on completing. One of the strategic changes that should help families in the Armed Forces is the move towards lifetime basing. This applies to the majority of our Armed Forces, although not specialist regiments like 23 Parachute Engineer Regiment—based just outside Woodbridge—which necessitate quite a number of people in rotation. Our Armed Forces, of course, deserve the best. There is nothing more concerning than somebody who is abroad thinking not only about the key strategic or tactical role they are playing but also the state of their loved ones’ housing back at home.
My Amendment 252A is driven by my concern about how, in effect, the policy of requiring EPC level C certificates for all private rented property risks removing many homes from the private rented sector across the country, particularly in rural areas. On applying the decent homes standard, EPC legislation, or the required minimum standards on energy efficiency, does not legally apply to social housing; instead, there is a target that is set which is expected to be met. We are now seeing a situation where the decent homes standard, which currently only applies to social housing, is going to be applied to the private sector. That is in a broad sense a good thing, but I am particularly concerned about aspects of it that will drive landlords out of the market and the effect on rural communities.
According to a survey conducted by MHCLG last summer, there are about 2.6 million homes that do not meet EPC level C and have a rating of D or lower. That is 60% of the private rented sector, so this is concerning. I completely understand the need to address fuel poverty; in the other House I founded the APPG on fuel poverty. I was particularly focused on off-gas grid, which of course covers a lot of rural communities, but also inner cities such as Manchester, Salford and the other areas represented by the right reverend Prelate.
We should bear in mind that the MHCLG currently estimates that 10% of those properties cannot in any way be upgraded to reach EPC level C. That still leaves 90%, but the challenge now is the variation in what is going on to upgrade those homes, some of which could require significant investment. Where it is reasonable—and by that I mean the amount of investment needed to make the adjustment—we should of course try to ensure that these properties are suitably warm. That would be helped if pensioners still had the winter fuel allowance and did not have to worry about whether they heat or eat. We must look at how we can address that without losing the housing capacity that is available.
Under the current regulations, there is a £3,500 cap on required investment to make the changes to get to the current minimum level E. As I say, I support the ambition to head that way, but now the proposed policy being consulted on is for a £15,000 cap on required investment, below which there would be no exemption. Let us get practical. I appreciate that the Minister may not be prepared for my question, but it should be considered by her department: what rural assessment has been conducted on this? It is standard government policy to undertake what is often known as rural-proofing when considering policies that will impact rural communities. I am genuinely concerned about that and about the possibility that the proposals for changing the methodology on ascertaining the EPC level will have a significantly detrimental effect on rural communities right across the country.