Housing: Cornwall and the Isles of Scilly
(4 days, 5 hours ago)
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Andrew George (St Ives) (LD)
It is a pleasure to have the opportunity to raise the rather grave issue of providing affordable housing in the housing emergency-ridden communities of Cornwall and the Isles of Scilly. I am grateful to those engaged in business earlier this evening who have permitted us a little extra time to explore the issue. Perhaps that was done for good reason, so that the grave and important issues of Cornwall and the Isles of Scilly could be properly and fully debated. I welcome the Minister to his place. Indeed, Liberal Democrat Members warmly welcome him and fully take on board the sincerity, intensity and determination of the Government to address the serious housing problems that exist across the country, and the housing emergencies that exist in many communities as well as Cornwall and the Isles of Scilly.
I should also declare an interest. During my nine-year sabbatical from this House I went back to my profession as the chief executive of a registered provider—a housing charity—working at the front line on predevelopment work and delivering affordable homes for local people. It is a challenging environment, and because of the man-made—or man and woman-made—nature of the regulatory environment in which professionals operate, and the topographical challenges that we face in places such as Cornwall, it is a little like trying to push boulders up a steep slope. I hope the Minister will take into account that if measures can be taken to improve the availability of opportunities for those who are ticking all the right boxes to deliver genuinely in-perpetuity affordable homes, which are desperately needed in our communities, the Government will do that.
This is not my maiden speech, and after having taken a sabbatical—perhaps it was an enforced sabbatical, but it was one I enjoyed—away from the Chamber for so long, I would in normal circumstances praise my predecessor. We did not share much in the way of political agreement, but he worked hard for the constituency and achieved a great deal. Indeed, Mr Derek Thomas strived on a large number of projects, and I hope that I will reflect the efforts he made to ensure that those projects are delivered during my time in this House.
Because it is not my maiden speech, I therefore do not need to remind the House, as I did on 22 May 1997, that my constituency is the most beautiful and most remarkable place in the country, occupied by the most beautiful, remarkable people.
Jim Shannon (Strangford) (DUP)
On that point, will the hon. Member give way?
Jim Shannon
First, I commend the hon. Member on securing the debate. It is good to see him back in his place. He brought much to the Chamber when he was here before, and I was fortunate to share some time with him in the Chamber. We have many things in common. The first is that we have beautiful constituencies, and the second is our concern about affordable housing and its accessibility. Does he welcome the Government’s manifesto pledge to increase housing? In my area, the housing lists are massive. Does he agree that when it comes to the Government’s policy, it must first be better streamlined planning? Secondly, they should allocate funding to getting families into homes. Thirdly, does he agree that we need a strategy and a programme motivated and driven by Westminster for all the regions of this great United Kingdom of Great Britain and Northern Ireland, because, as I always say, we can do it better together?
Andrew George
The hon. Member anticipates many of the subjects that I will be coming on to, which are about the delivery and streamlining of planning and so on.
Part of my background is not only in the delivery of housing through a community land trust and the charitable housing sector, but also in my volunteering. For many years, I was involved in Penzance street food project and was working at the frontline addressing and speaking to people who were suffering from the most severe housing problems in the country. Indeed, in Cornwall we often have to repeat that although people come and have enjoyable holidays, as I know the Minister did, beneath that veneer are extremely severe housing problems and severe and exceptional levels of homelessness, which perhaps are beyond the vision of those who come and enjoy our beautiful beaches, our beautiful environment and our wall-to-wall sunshine.
I have given the Minister advance notice of some of the subjects I intend to cover, but one is to probe a little harder on the Government’s intention to raise house building targets and to challenge how we can properly ensure that if we are to build more homes, that will address need, rather than developers’ greed. I will come back to that in a moment. Under the surface—I think a lot of people are not fully aware of this—the public purse is making a major contribution to the injustices going on in the housing sector, in that multi millions of pounds in public money are going into the pockets of holiday home owners, especially through various tax loopholes and covid aid grants and so on. That clearly is driving the sector in the opposite direction to the one in which it should be going.
By way of background, Cornwall has high levels of housing need. The latest Homechoice register is 20,332, but that is after the annual administrative process of removing people who have not been active on the register for the previous year. The month before that, the register was 27,000, so the numbers oscillate. From my experience of undertaking housing need surveys across many communities in Cornwall, the numbers often underplay the significant level of unexpressed housing need. We often find that the level of need in most communities is at least double what is recorded on the Homechoice register, because many people think it is a waste of time putting their names on it, because they have little chance of ever getting a home.
Of course, every location has housing problems of one type or another—other places experience similar problems—but in Cornwall we face a rather unique combination. For example, just 12.8% of our housing stock is social housing against a national average of 17.1%, and although 20% or thereabouts of the housing stock is privately rented—that is about the national average—it is an extremely vulnerable sector for people to find themselves in. Particularly in recent years, a large proportion of families in that sector have found themselves on the verge of being evicted to make way for yet more holiday lets.
Housing completions have been good. We have an effective register and a housing association sector that is delivering well, and indeed Cornwall is one of the best local authority areas in delivering numbers, but it achieves that as one of the larger local authorities, so it is bound to be up at that end of the league.
My first substantive point for the Minister is about the Government’s stated intentions on house building targets. I fully endorse and support the Government’s intention to deliver in order to meet housing need, but, as I said to the Deputy Prime Minister when the announcement was made in July, Cornwall shows how simply having house building targets does not work.
Cornwall is one of the fastest growing places in the United Kingdom, having almost trebled its housing stock in the last 60 years—I have been living there through most of those years—and yet at the end of all that the housing problems have got worse. I am not saying that it would be better if we had not built any houses, but simply setting very high housing targets in itself does not address housing needs. The two-dimensional view of housing being somehow a simple relationship between supply and demand in which equilibrium will be found and prices will therefore reflect what local wages can afford has never been the case in Cornwall. That reflects, in effect, a sub-London housing market, with house prices having been significantly inflated by people and property investors buying second and holiday homes.
In the present local plan for Cornwall, covering 2010 to 2030, the house building target is 52,500. The Government propose to increase those projections under their new formula from 2,707 properties per annum to 4,454. I urge the Minister to allow places such as Cornwall to be granted devolved powers to vary the way in which we achieve what needs to be done in our local environment: not simply to give us house building figures but to set targets to reduce housing need. After all, house building targets are a means to an end—the end is to meet the housing need—and if we have built the homes but that has not achieved the purpose, we must ask ourselves: are we going about it in the right way?
The Government’s new standard method has a different starting point from the old method. It is based on a two-step process of a 0.8% annual uplift on existing housing stock, plus a further uplift for the affordability gap. The problem with that approach is that, in places such as Cornwall, it bakes in demand for second and holiday homes, because that has to be included in those overall figures. That was a problem in the previous plan, when we had our local plan projections rejected and the inspector wrote in much higher figures, saying that we had to increase the numbers to 52,500—more than another 5,000 homes—in order to address, as they put it, “the growing demand for second homes in Cornwall.” We have high and growing demand for affordable homes—that should be baked into the figures.
We should have a mechanism by which we can deliver those homes, because the way in which the system works is that we get all the second and investment properties—the developers are very pleased to do those, but they are not so keen to deliver the genuinely affordable homes, which are the ones that we need. There is a simplistic view that there is equilibrium between supply and demand, and there is a presupposition that developers will release properties in the market when the Government’s policy achieves its stated intention of reducing house prices in that locality. We found that they only release them at times of housing inflation, so that is simply not the case.
In my experience at the development end, trying to deliver the affordable homes that local people need, the policy is counterproductive because if the number of homes announced in the local plan increases, the hope value of land adjoining every single community in Cornwall goes through the roof. If a local housing charity goes there and says, “I would like to look at your land and build some affordable homes on it,” the developer will not talk to them. They will wait for the lottery win when they get the full open market development value on that land, which is significantly greater than what a local charity can offer. I urge the Minister to have a conversation with those who are trying to deliver the products on the ground, to set targets to reduce need rather than feed developers’ greed, because that is what housing targets do in places such as Cornwall—elsewhere they might have a different impact. Again, I ask the Minister to come to Cornwall and the Isles of Scilly and see what it is like. I am sure that all the local MPs, who are all champions for their own localities, will be fighting hard to address these issues.
A further point I wish to make is on the rural exceptions policy, as I used that tool when working in the sector on a regular basis, and I have raised it with the Minister already. It works well; since the 1990s when it was introduced, it has been very effective in delivering affordable homes on land that otherwise would not get planning permission. All I would say to the Minister is that we should look at ways in which we can expand and grow development on rural exception sites. In Cornwall we are doing very well; we deliver 50% of what is delivered on rural exception sites across the whole of England. About 20% or 30% of delivery in Cornwall is through rural exception sites. What the local authority has done, and what we as a charity sector campaigned for it to do, is extend the entitlement to deliver rural exception developments from the smaller villages to the edge of towns. It may sound counterintuitive, but one of the best ways of delivering affordable homes is to draw the development boundary very tight around a local community and to use rural exception as a way of ensuring that we keep the development land values low and deliver genuinely affordable homes.
The other thing I urge the Minister to do, perhaps to correct the mistake made by Cornwall some 15 years ago, is not to allow cross-subsidy on rural exception sites. That has created a slippery slope where more and more landowners and private developers find ways around normal planning procedure and use rural exception sites as a Trojan horse to crowbar in far many more unaffordable homes on those sites than would otherwise be the case if we stuck to the principle of the policy itself.
Against that, there is a very significant challenge of construction industry inflation, which is affecting Cornwall as it is many other places. That has caused a lot of developments in places all around Cornwall to be stalled, as the cost-to-value ratios have resulted in the unviability of many projects. I urge the Minister to look—I am sure he is—at Homes England’s affordable housing programme. While it is looking to the next five to 10 years, the current programme up to 2026 needs a further injection to address the current difficulties that many developments face.
I said that I would address housing injustice. I am conscious of time and I know other hon. Members wish to speak, so I will be brief. When I was first elected, in 1997, the Conservatives had just introduced the 50% council tax discount for second homes. I campaigned against that at the time, and was grateful to Chris Mullin and the late Michael Meacher for being receptive to the arguments to remove the 50% council tax discount. However, in 2012, the Conservatives then introduced another loophole, which allowed second home owners to flip their properties from being registered as second homes for council tax to being registered for business rates as a holiday let, if they could demonstrate that the property was available for 140 nights a year. They did not need to let it, but it had to be available for 140 nights a year as a holiday let. Then they could apply for small business rate relief and pay nothing at all.
We have ended up with a situation where all that has to be covered by the Treasury. Initially, in 2012, when I first blew the whistle on it as an MP, that resulted in £6.5 million going each year to holiday homeowners in places such as Cornwall. Within a couple of years, that had doubled. There has been an industrial-level movement of properties from council tax to business rates. When covid happened, they were all entitled to a covid grant as well, on top of that. As a result of that, the furnished holiday lettings and other loopholes, in Cornwall alone over 10 years we ended up with over £500 million of taxpayers’ money—that is our money—going into the pockets of holiday homeowners, at a time when only half that amount was going into housing associations to deliver affordable homes. I urge the Minister to work with his Treasury colleagues to close those loopholes and to find far better ways of using that money. If, as the Prime Minister rightly says, those with the broadest shoulders should bear the greatest burden, this is an area where that burden should be borne by the people who can afford extra properties and property investment in holiday and second homes. That is not, in my view, an appropriate way for us ever to spend public money.
I said to the Minister earlier that I wanted briefly to mention the Isles of Scilly, and I hope that he will come and visit the area. Many people find it surprising that it is currently experiencing depopulation, which is largely driven by the lack of affordable housing. Here I declare an interest, as one who has been working in the sector. Our charity had been working with the council on a project for which we had planning permission, and everything else, to deliver 12 self-build affordable homes for local families. Those homes were desperately needed—I believe that only eight homes have been built on the Isles in the last 10 years—but the construction costs were extremely high. It costs three times as much to build a home there as it does to build one on the mainland. Moreover, the project did not meet the requirements of Homes England in relation to subsidies.
I urge the Minister to have a look at the very special environment that exists on the Isles of Scilly, and to address its housing needs. It is 28 miles from the mainland coast, and it should not be said that members of its community can commute, because they simply cannot do so. I also urge the Minister to consider the community-led homes sector. If we want to change the whole narrative and the way in which communities operate, we should give people the power to start representing themselves and local housing needs through, for instance, community land trusts and co-housing communities. The last Government had a flirtation with that sector and gave it some support, but then withdrew it. However, this work has started, and I think that more can happen to deliver more. If communities have local land trusts or local housing working parties, that is far better than allowing the nimbys to take over and start driving the development process.
Let me also encourage the Minister to consider the issue of discounted sale homes. Before I worked in a community land trust I was a sceptic, but I have to say that I am a convert to that method as one of the additional mechanisms to provide intermediate housing. I believe that it would be a cost-effective way for Homes England to engage with communities that want to deliver in-perpetuity homes for locals, which is clearly very important.
Of course we do not want Rachmans and of course we want to drive bad practice out of the sector, but I hope that, perhaps taking a cue from what is happening in the holiday lettings, the Minister will consider this suggestion. As well as regulating the private rented sector, why should we not reward good landlords? If they are delivering security—affordable rents, a high-level energy performance certificate and the decent homes standard—surely there must be a way, within the tax system, of rewarding those good landlords, as well as regulating and penalising the bad ones.
I hope that the Minister will consider each of the points that I have made to him. I am grateful for the additional time that I have been given to elaborate on those important points, and, of course, he has plenty of time in which to respond. I do not know whether other Members wish to speak as well.
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
Thank you, Madam Deputy Speaker, for granting extra time for a debate that is so important for Cornwall and for giving others a chance for speak about its very particular housing issues. I also thank the hon. Member for St Ives (Andrew George) for initiating the debate. As he said, about 27,000 people are on Cornwall’s housing waiting list, and about 800 are in temporary and emergency accommodation. Many of them are families with young children, who are placed in caravan parks and holiday homes that are up to an hour and a half or two hours away from their support networks, their schools, their jobs and where they live. This is really affecting community cohesion, upsetting families and causing real hardship.
The council is struggling with the need, and the cost is vast. It is providing bunk cabins in council car parks for people to live in as emergency and temporary accommodation, which is very difficult. So many people in Cornwall are now living in their vans, because they simply have nowhere else to go. I am finding that families are moving into emergency accommodation, and that the single people who were becoming homeless when I was first a councillor in Cornwall are now living in their cars. The situation has become really dire.
Businesses are now finding that key workers have nowhere to live, so we have people coming down to work in the hospitality sector or in agriculture. The same is true for professionals, such as teachers, nurses and doctors—a headteacher in Cornwall struggled to find somewhere to live, and she had to give up her job and move away again. There is now a movement called Homes for Cornwall, whereby businesses are coming together to try to find alternatives solutions to deal with the housing crisis, which has become so bad that they cannot find staff. As the hon. Member for St Ives said, we have a very low number of social houses in Cornwall—only 10,300 council homes.
I want to talk about the affordable housing programme grant, which a previous Secretary of State, Michael Gove, suspended for Cornwall because of the poor performance of the housing provider Cornwall Housing, which is an arm’s length company owned by the council. That performance has now improved, and the grant is desperately needed for a new social housing scheme in Redruth, but it has not been returned. I ask the Minister to look into that, and to see whether other local authorities in this situation have been treated in the same way and lost their grants. Has that grant moved to other registered providers in Cornwall, or has it left Cornwall completely? Is there any way we could get that back and backdate it?
The other issue, which the hon. Member for St Ives spoke about, is second homes and holiday lets, which have absolutely exploded in Cornwall, particularly since covid. The private rented sector has been decimated and is now virtually non-existent. We have struggled so much with section 21 notices, which explains to a great extent why so many of our families are now in emergency and temporary accommodation.
Ben Maguire (North Cornwall) (LD)
I thank the hon. Member for giving way, and I commend my hon. Friend the Member for St Ives (Andrew George) for securing this excellent debate. It is great to welcome him back to his place; he brings a wealth of expertise in this area. I also welcome the hon. Member for Plymouth Sutton and Devonport (Luke Pollard) to his place. I hope that he understands some of the issues that have been raised in this debate, given that he is a close neighbour of ours.
I welcome the cross-party co-operation that we are seeing from hon. Members across the House this evening—although not so much from the Conservative Benches, unfortunately. Cornwall faces a real housing emergency, and it is critical that we work together to fix it. As my hon. Friend mentioned, we must finally move away from building more and more executive housing that has little to no infrastructure, and focus on local need.
Madam Deputy Speaker
Order. I remind the hon. Member that interventions should be short.
Ben Maguire
Does the hon. Member agree that the long-standing Liberal Democrat policy of introducing use classes for non-permanent occupancy is a good idea?
Jayne Kirkham
I thank the hon. Member for his intervention. I will shortly move on to some of the ways in which we can deal with the proliferation of second homes and holiday lets, and address the imbalance.
I want to reinforce the point that the hon. Member for St Ives made about the tax loophole. I think £18 million is now lost in council tax because so many housing providers have taken advantage of the loophole whereby they can claim business grants and the zero rate of exemption, rather than pay council tax, if their houses are let out for 10 weeks of the year. As the hon. Member said, so much money was lost in business grants during covid. I think £170 million in business grants went to properties that were registered as holiday lets.
I want to mention my hon. Friend the Member for Plymouth Sutton and Devonport (Luke Pollard), who cannot speak in this debate. He has worked hard with us in Cornwall on the issue of protecting first homes, rather than second homes, and he has supported us, as I know that the same issue applies up in Devon. We have spoken with the Minister about potentially having a toolkit of measures that could be used to deal with issues relating to second homes and holiday lets. I know that our Government will introduce one of those measures: the licensing of holiday lets, hopefully with fees and safety checks on those lets, which is not done at the moment—some properties are not checked for fire safety, or for safety in any way. That is a massive loophole that needs to be dealt with.
The hon. Member for St Ives talked about planning requirements. The previous Government had a review on introducing a use class for holiday lets—but then did not do very much about it—so that is one possible measure. The default could be second home owners having to apply for a change of use if they flip their homes to holiday lets.
Andrew George
On the C5 category, and further to the excellent point that my hon. Friend the Member for North Cornwall (Ben Maguire) made, the last Government tinkered with this, announcing and reannouncing on many occasions a proposal to introduce a use class for holiday lets, but does the hon. Lady not agree that that would be far better if it applied to all non-permanent occupancy, whether second homes or holiday lets? Otherwise, there will continually be flipping from one to the other to avoid regulation.
Jayne Kirkham
I thank the hon. Member for that point. I wanted to talk about council tax in particular, because, strangely, one of the few things that the entire council agreed on—we have a Conservative council in Cornwall at the moment—was doubling the council tax on empty second homes. In fact, we wrote to the Secretary of State at the time to ask whether we could triple the council tax on second homes, as they do in Labour Wales—that was a very unusual thing to do. Of course, as has been discussed, this is about looking at closing the loophole so that the owners of the property cannot flip between business rates and council tax. That would mean an £18 million a year gain in council taxes.
I agree with the hon. Member that we should encourage co-operative and community housing in Cornwall. That is very popular, and if it was supported more, there would be a great deal more of it. In fact, our cabinet housing member in Cornwall has said that if every village built 10 homes, that would deal with the housing crisis completely. Discouraging hope value, particularly in certain parts of Cornwall, would be very helpful. I know that forcing developers to deliver their affordables rather than relying on the viability defence is part of the Government’s plans, because so often developers get to a point and say that they cannot afford to build the affordable houses that they promised. Another real problem is that the cost of building has shot up because the contractors in Cornwall have dropped in number and have become a great deal more expensive.
The Minister for Housing and Planning (Matthew Pennycook)
I congratulate the hon. Member for St Ives (Andrew George) on securing this important debate, and I commend him for the forceful but thoughtful case he made on behalf of his constituents. He has considerable experience and expertise when it comes to housing policy and practice, and I listened with great interest to his views and many of his proposals.
I thank my hon. Friend the Member for Truro and Falmouth (Jayne Kirkham) for her incisive contributions and all those who have added to the debate this evening. There is clearly a fierce clarity of purpose on both sides of the House in respect of meeting housing need across the county, and I assure all hon. Members present that the Government are resolved to do what is necessary to ensure that that can happen.
It would also be remiss of me not to acknowledge my hon. Friend the Member for Plymouth Sutton and Devonport (Luke Pollard). He is not a Cornish MP, but his constituency suffers from many of the challenges that hon. Members have touched on; indeed, he is impacted by the challenges coming from Cornwall. He has been a champion over many years for bold action to tackle the housing crisis across the south-west.
As we have heard, the housing crisis in Cornwall and the Isles of Scilly is acute. Eye-watering house price-to-earnings ratios are putting home ownership out of the reach of most local people; an overheated and shrinking private rented sector is placing a severe strain on local economies as well as families and communities; and social housing waiting lists are growing steadily. I recognise that second homes and short-term lets are not the sole causes of those pressures, but none of them can be properly understood without taking into account the sharp increase in the numbers of second homes and short-term lets in the county over recent years—an issue to which I will return in due course.
In the time available to me—there is more of it than I expected when I drafted this speech—I wanted to provide the hon. Gentleman and other hon. Members representing Cornish seats with an overview of the Government’s thinking in this area, and a sense of how we intend to address the challenges around housing availability in the county, with the caveat that there is a limit to the detail I can provide at this point, given that we are a new Government still considering the best options to achieve our aims.
The causes of England’s housing crisis are multiple, but among the most important is our singular failure as a nation to build enough homes of all tenures. That is why this Government are determined to do what is necessary to get the country building again, including by ensuring that we put in place a planning system geared towards meeting housing need in full. On our proposed reforms to the national planning policy framework, I acknowledge the hon. Gentleman’s concerns about the introduction of mandatory housing targets, and I appreciate that he made a nuanced argument, but I am afraid that I am unconvinced by it. The fact that the distribution of homes in his constituency is creating significant challenges for the communities he represents is not, in my view, an argument against ensuring that sufficiently ambitious targets are in place to boost housing supply. Rather, it is an argument for making sure that local planning authorities have the full set of tools they need to manage those distributional challenges, and to plan for development in line with their targets in a way that meets local need.
Noah Law (St Austell and Newquay) (Lab)
Will the Minister give consideration to the hypothesis to which the hon. Member for St Ives (Andrew George) alluded, which was that building the wrong kind of housing in Cornwall can beget demand for the kind of housing that we have so struggled to build—namely, truly affordable and social homes?
Matthew Pennycook
I thank my hon. Friend for that point. I acknowledge the pressures and the challenges. We need to give local authorities the tools to shape the type of development undertaken—not only through their local plans—and to get a grip on excessive concentrations of second homes and short-term lets. That is the Government’s intention. On the NPPF and housing targets, it is the Government’s considered view that we need to act to increase supply in all parts of the country, and need to take steps to ensure that the housing market responds to the needs of communities. These are complementary, not conflicting, policy intentions.
Andrew George
I entirely endorse the sentiment of what the Minister is trying to do, but this is about practicalities. There are enormous opportunities for unscrupulous developers to use the NPPF as a Trojan horse, so that they can crowbar in significant lottery-like wins on land. If someone can convert an agricultural acre into an open market acre of development land, they do not need to work for a living; they just need to keep shoving in planning applications, and they will make a lot of money. Having some intermediate measure by which we can deliver affordable homes on that land is surely the way forward.
Matthew Pennycook
I will touch on rural exception sites, and the land market in particular, but I come back to the point that none of that negates the need for ambitious housing targets, via consents and oversupplying consents, to ensure that we build the number of homes that we need, but I take the hon. Gentleman’s point and will address it directly in short order.
I shall start with land values, because the hon. Gentleman has raised a concern, not only in this place but in other forums, about our proposed changes to national planning policy potentially placing upward pressure on land values, thereby frustrating our objectives. We fully appreciate the risk, which is why we are committed to further strengthening the system of developer contributions and to the reform of compulsory purchase compensation rules. Indeed, just today I brought into force regulations that allow action to be taken on hope value, where required in the public interest, but we will go further in the forthcoming planning and infrastructure Bill.
The hon. Gentleman touched on rural exception sites. The Government very much recognise that people living in rural areas often face challenges finding adequate affordable housing. Ensuring robust support for the necessary housing in rural areas is essential to supporting the broader sustainability of rural communities. The national planning policy framework is already clear that planning policy and decisions should support opportunities to bring forward small sites for affordable housing in rural areas. These rural exception sites should help to meet the housing needs of rural communities, enabling local people, and those with family or employment connections, to live locally and help sustain thriving places.
However, I want to go further in supporting rural affordable housing. In the consultation on the proposed reforms to the NPPF, launched on 13 July, we are actively seeking views on what measures we should consider to better support an increase in affordable housing developments in rural areas, and I very much welcome the hon. Gentleman’s engagement with that. I will take away his point on cross-subsidy and give it further consideration.
I very much recognise the unique situation on the Isles of Scilly, particularly the challenges to the viability of construction. My officials are working closely alongside Homes England to support the council in achieving its housing ambitions, and it is important that this close collaboration continues. I also note the wider challenges on the isles and how housing challenges interact with other pressures faced by residents. In recognition of this, my officials are looking to convene a working group with other Departments to highlight the plurality of issues, and to ensure that the Government can best support island residents.
I appreciate the hon. Gentleman’s interest in community-led housing, including the role of community land trusts, and his professional experience in this area. I recognise the role that community ownership of land and affordable homes can play in delivering the Government’s agenda, although I hope that he will recognise that the support we are able to offer must be considered in the round, alongside the full range of departmental programmes. Again, the Government have set out changes to how we plan for the homes we need as part of the NPPF consultation, which includes proposals designed to strengthen support for community-led housing.
Anna Gelderd (South East Cornwall) (Lab)
I thank the hon. Member for St Ives (Andrew George) for securing this important debate. Local residents are being priced out of the constituency I represent, the beautiful South East Cornwall, and we do not have the homes we need. Earlier this summer, an elderly couple from Torpoint, both in their 90s, were forced to live apart for more than four months after an accident at their home left one in hospital. A lack of suitable housing meant they could not live together. Does the Minister agree that we need action on second homes so that local people, such as this couple from Torpoint, can benefit from more of the housing that is being built?
Matthew Pennycook
My hon. Friend pre-empts what I was about to say; I was just about to address second homes and short-term lets. I take her point, and I am sorry to hear about the situation in which her constituents from Torpoint find themselves. The Government recognise that this is an area in which more needs to be done.
Both in the constituency of the hon. Member for St Ives and in the county more widely, it is beyond doubt that the prevalence of second homes and short-term lets has constrained the availability of homes for local residents to buy and rent, and that it is having a detrimental impact on local services in many areas. A balance obviously needs to be struck between the benefits that second homes and short-term lets can and do have for local economies and their impact on local people, but many coastal, rural and indeed urban communities are grappling with excessive concentrations of such properties. When I was shadow Minister for Housing and Planning in the last Parliament, I spoke to many colleagues who faced acute pressures in their constituency, and the feedback we are getting from coastal, rural and some urban communities makes it clear that we have not yet got the balance right.
Caroline Voaden (South Devon) (LD)
I thank my hon. Friend the Member for St Ives (Andrew George) for raising these difficult issues around housing and second homes in Cornwall and the Isles of Scilly. We have parallel issues in my constituency of South Devon, a little further up the coast. It is apt that we are having this discussion today, after the presentation of Devon Housing Commission’s report at lunchtime, which highlighted many of the issues and just how difficult the situation is in Devon, as in Cornwall. Second homes are hollowing out communities in my constituency. Like the hon. Member for Truro and Falmouth (Jayne Kirkham), I have had a headteacher and the local hospital—
Matthew Pennycook
I thank the hon. Lady and appreciate that she was cut off. As Mr Speaker, Madam Deputy Speaker and the other Deputy Speakers remind us, interventions have to be short, but I am sure we can pick up the conversation outside the Chamber. I recognise the impact on communities of the unique challenges that she mentions, particularly the excessive concentrations of second homes and short-term lets.
The hon. Member for St Ives said that the previous Government introduced a limited number of measures in response to concerns expressed in the previous Parliament. In Opposition, I welcomed those measures, while making it clear that they did not go far enough. That remains my firm view, so although we will progress with measures such as the introduction of a registration scheme for short-term lets in England, and the abolishment of the furnished holiday let tax regime, we are also considering what additional powers we might give local authorities to enable them to better respond to the pressures that they face. I will update the House as soon as I am in a position to.
In conclusion, I thank the hon. Member for St Ives once again for giving the House an opportunity to consider these important matters. I look forward to engaging closely with him and all other Cornish Members, so that together we can ensure first homes for all local people in Cornwall and the Isles of Scilly.
Question put and agreed to.