Housing and Regeneration Act 2008 (Consequential Provisions) Order 2010

My Lords, I am grateful to the noble Lord and the noble Earl. They were both supportive of these provisions, although I understand that each, particularly the noble Earl, Lord Cathcart, had some particular inquiries to pursue. The noble Earl asked about the costs of the TSA and whether it effectively adds value. For every £1 that the TSA spends on regulating, it helps RSLs to save £15 in lower interest costs. That amounts to a saving of £250 a year, or 70p a day, for every housing association home. The TSA will cut its running costs by about 10 per cent next year, in 2010-11, while extending its remit to cover local authority landlords from 1 April. The TSA has already identified £2 million in savings during its first year by reducing information technology and legal costs, and by sharing office space with other government agencies. The noble Earl referred to the recruitment of board members and executives. Three former Housing Corporation board members and one former English Partnerships board member transferred to the TSA board at its inception in December 2008 without additional costs being incurred. Costs were incurred solely for recruiting new board chairs and members for the TSA and HC boards and for the TSA chief executive. On value for money, the LGA’s quango report card focused on the TSA, which has broadly welcomed the LGA’s findings. They indicated a strong start, although there is clearly still some work to be done in certain areas. The TSA was given several green ratings on specific issues, such as complaints handling and the elected representatives on its board. The LGA also recognised the positive steps that the TSA is taking to develop its relationship with local authorities, so I would certainly not accept a suggestion that the TSA is not necessary or superfluous. The noble Earl asked about the approach that we are taking on profit-making and non-profit-making providers. Prior to the Housing and Regeneration Act 2008, there was no definition of social housing on the statute book, so it is not possible to differentiate between social and non-social housing when referring to RSLs in earlier legislation. We want to preserve the status quo as far as possible, so it is right that, where legislation currently applies to all RSL stock, it should continue to do so after those bodies transfer on to the TSA’s new register as non-profit registered providers. The noble Lord, Lord Rennard, asked whether it was voluntary for profit-making providers to register. The answer is yes; there is perhaps a broader and separate issue about the general regulation of people in the private rented market, which is being addressed as a result of recent consultations. The noble Earl also referred to the Government’s record on providing new homes. We recognise that the current market conditions have had an impact. Until recent rises, house prices had fallen by around 20 per cent. People are finding it harder to find a suitable mortgage and house builders are experiencing more challenging business conditions. That is why the Government have been proactive in responding to the challenges. We are restoring stability by rebuilding confidence and reassuring consumers that there is practical support where needed. We are focusing on the key priorities: help for homeowners in fear of repossession; support for construction jobs and skills; support for first-time buyers, mortgage lending and the wider market; and support for long-term goals of recovery and sustainability. The Government are now committed to investing £7.5 billion over two years to deliver up to 112,000 affordable homes and around 15,000 private homes. Notwithstanding the challenges of the market, the Government have been proactive in helping to address these matters with a stimulus that has still not had the full endorsement of the Conservative Party. We remain committed to our overall target of raising house building to 240,000 homes per annum by 2016 as the right long-term goal. The noble Lord, Lord Rennard, asked about the TSA and the Audit Commission. We looked at a code for auditors, not the Audit Commission. The Audit Commission is involved in appointing auditors, but the code was for auditors of local authorities and health bodies. The relationship of the TSA to the Audit Commission is important, which is why I tried to set out in my presentation that we would not seek to override the existing engagement of the Audit Commission to build on that so far as local authorities are concerned. That is part of the provision in these regulations for how the TSA will act in relation to local authorities. The noble Lord spoke about the good work of Shelter. Like him, I am very supportive of that organisation and I acknowledge the great work that it has done. I remember the name Des Wilson from times gone by. I have forgotten where he ended up, but I know he did great work with Shelter. The noble Lord asked whether temporary accommodation in total should be included. I am not the landlord for temporary accommodation; it is up to local authorities to ensure that temporary accommodation standards are sufficient to meet their duties to homeless people. That is where the duty lies. We do not think that adding TSA regulation would improve standards of temporary accommodation, but that it could add to costs. He also referred to the length of the framework that we are looking at in relation to regulation. The regulation has been subject to extensive consultation, and I think we are due to publish the final results shortly. I think there have been three consultations and the term "a national conversation" was applied to it. We believe that what comes out of the process reflects significant engagement. I hope that that has addressed the points that noble Lords made. If not, I am happy to have another go. I am grateful for their input into our discussion of these regulations, which are important in moving to a new regulatory framework that places the needs, views and aspirations of tenants at its heart. That framework will ensure that all tenants, regardless of their landlord, can expect high-quality services with opportunities to influence service delivery and policies. Motion agreed.