Oral Answers to Questions

Debate between John Healey and Brandon Lewis

Monday 21st March 2016 Commons Chamber

[The Minister for Housing and Planning (Brandon Lewis)]

My hon. Friend makes a good point. We absolutely hold neighbourhood plans as being of prime importance and they have weight in law. I congratulate Newick on its initiative in creating a neighbourhood plan but, as I know she appreciates, I cannot comment on a particular case. I do wish to stress, however, while I have the opportunity to do so, that the national planning policy framework makes it very clear: where a planning application conflicts with a neighbourhood plan that has been brought into force, planning permission should not normally be granted.

[John Healey (Wentworth and Dearne) (Lab)]

My question is for the Secretary of State, who clearly lacks the clout to argue his Department’s case with the Chancellor, because there was nothing in the Budget on housing—nothing to reverse six years of failure, from rising homelessness to falling home ownership. In Labour’s last year, despite the global banking collapse and deep recession, we saw 120,000 new homes built in this country. Five years later, that total was only 5,000 higher. At this rate, the Secretary of State will not hit his house-building targets until 2079, so why was there so little in the Budget on housing?

[Brandon Lewis]

I say to the right hon. Gentleman, with great respect, that he might want to have a look at the Budget book, which outlines a range of measures on both housing and planning. It builds on the autumn statement and the spending review, which gave us the biggest building programme since the 1970s—that is quite a contrast to his personal track record. It also outlines the work we did with local government to deliver another 160,000 homes on public sector land—joining central Government’s 160,000. I would have thought that 320,000 new homes in this country, on top of what we are already doing, is good news and highlights just how important this is to the Government.

[John Healey]

On the contrary, the extra investment that the Chancellor announced in the spending review that is cited by Ministers brings the total to around about half that invested by Labour in building new homes when I was the last Labour Housing Minister. The truth is that there was little in the Budget on housing, and nothing that will deal with the causes of the housing crisis, so six years of failure is set to stretch to 10. Will the Minister now admit that, on housing, as on everything else, the Chancellor’s credibility is in tatters?

[Brandon Lewis]

I am surprised that the right hon. Gentleman keeps wanting to give me the opportunity to highlight the fact that he was the Minister who oversaw the lowest level of house building since about 1923. I am very proud to work with the Chancellor who has given this country the biggest building programme that we have seen since the 1920s. We have seen the number of first-time buyers double since 2010 and, as we heard earlier, planning permissions have gone up by 53% since 2010. We are delivering affordable housing at the fastest rate in more than 20 years. In the past five years, we have delivered double the number of council houses that Labour did in 13 years. I am proud of our track record. We aim to continue to deliver more and to deliver faster than Labour ever did.

Oral Answers to Questions

Debate between John Healey and Brandon Lewis

Monday 8th February 2016 Commons Chamber

[The Minister for Housing and Planning (Brandon Lewis)]

My hon. Friend highlights the interesting point that a local authority is sending this subsidy back and then claiming that it cannot look after people. That local authority should be answering to local people, doing the right thing and using the subsidy for the purpose the Government set out in the first place.

[John Healey (Wentworth and Dearne) (Lab)]

The Secretary of State will know that one of the many proud achievements of the last Labour Government was the rise in the number of families able to realise their dream of owning their own home—the number was up by 1 million over 13 years. Will the Minister tell us what has happened to the number of homeowners since Conservative Ministers took charge in 2010?

[Brandon Lewis]

I find it interesting that the right hon. Gentleman raises this question, bearing in mind the fact that, as a Minister, he said he thought a fall in home ownership was not a bad thing. I disagree with him on that, as I do on other things. I think home ownership is something people aspire to, and we should support it. I am proud that the number of first-time buyers has doubled since 2010. Our work through the Housing and Planning Bill will take that further, and we must go further to support those aspirations.

[John Healey]

Let me repeat: the number of homeowners under Labour was up by 1 million. Since 2010, it is down by 200,000. For young people, it is now in free fall, and they have little or no hope of ever being able to buy their own homes. Never mind the spin or short-term policies, the Minister has no long-term plan for housing. That is why I have commissioned the independent Redfern review to look at the decline in home ownership. We would welcome evidence from Ministers, but will the Minister at least agree to look at the review’s findings, so that five years of failure on home ownership do not turn into 10?

[Brandon Lewis]

Coming from somebody who oversaw the lowest level of house building since roughly 1923, that was interesting, particularly as the Redfern review is being led by Pete Redfern of Taylor Wimpey, who has called for an end to Help to Buy—the very product that is helping tens of thousands more people into home ownership. Perhaps the right hon. Gentleman is about to tell us that the Labour party will end Help to Buy, which is helping so many people. It is a shame that he and his party voted against the Housing and Planning Bill, which will deliver starter homes through increased Help to Buy. These measures will make sure that more homes are built for those who are working hard and who aspire to own their own homes—the very people let down by the crash under Labour.

Housing Benefit and Supported Housing

Debate between John Healey and Brandon Lewis

Wednesday 27th January 2016 Commons Chamber

[Brandon Lewis]

As my hon. Friend rightly says, as the findings of the review come in we will look to work urgently with those in the sector to provide certainty for them.

[John Healey]

I welcome this partial step as an indication of progress. It has taken Labour’s forcing this debate to get Ministers to take this 12-month backward step on the reduction in rents. However, what about the cuts to housing benefit for supported and sheltered housing? A pause is not enough. It will not remove the alarm or anxiety of residents or the uncertainty for providers, and it will not affect the schemes that have already been scrapped. The Minister must provide an exemption. Will he announce that now?

[Brandon Lewis]

It is almost as though the right hon. Gentleman forgets that when he was a Minister—I think in the DCLG, although he might well still have been at the Treasury—the Government of the time moved the spare room subsidy, which was first introduced under Labour, into the private sector and created the unfairness that we now see. I am not going to stand here and take a lecture from him about this Government doing the right thing in working with the sector to deliver the right outcome and to do what we have always done, which is to protect the most vulnerable in our society. Labour—I am afraid that the right hon. Gentleman is guilty of this—simply wants to get a headline by scaremongering around the country.

Oral Answers to Questions

Debate between John Healey and Brandon Lewis

Monday 14th December 2015 Commons Chamber

[Brandon Lewis]

As my hon. Friend will know, we are very keen to see more and more localism and devolution of power, but I am happy to tell him that this Government will not allow us to fall into the trap that Labour often encourages people to fall into. The reality is that rent controls simply drive supply down and end up increasing rents, so we are very much against them and they will not be allowed under this Government.

[John Healey (Wentworth and Dearne) (Lab)]

The Minister has talked about extra housing investment, and I would not want him or the Chancellor, who has said the same thing, to mislead the House. After the Chancellor’s autumn statement, the annual housing investment from the Government will be £1.7 billion. Under the money inherited in 2010 from Labour, it was £3.1 billion—not an increase, but a cut; not a doubling, but almost a halving. Does the Minister agree, therefore, that this must be the reason why his Government have built 30,000 fewer affordable homes to buy via shared ownership than Labour did in our last five years?

[Brandon Lewis]

I am somewhat surprised that the right hon. Gentleman should ask a question of that type, bearing in mind that he was the Minister who oversaw the lowest level of housing starts in this country since the 1920s. What the Chancellor has now done has meant that this Government are overseeing the biggest building programme in about 30 years.

[John Healey]

The Minister is wrong on the big picture as well. Under our national affordable housing programme, the number of homes built each year was bigger than under the last Government when he was the Minister. The hard truth is that for so many people, the dream of buying their own home is totally unaffordable and out of reach. Now the hon. Gentleman plans to fiddle the figures again by changing the definition of “affordable” to include so-called “starter homes” that can be sold at up to £450,000. Will he at least agree with Labour and the Building Societies Association, whose members will lend for these homes, that the discount on these starter homes should be permanent, not a cash windfall at the end of five years, but there for the next generation of first-time buyers as well?

[Brandon Lewis]

I am afraid that the right hon. Gentleman and I have a big disagreement on this. He seems to want to stop property owners having the right to deal with their property in the way that any other property owner would, but we want to support people who aspire to own their own home. That is why we want to keep building more homes generally and keep building more homes for people at that discount rate for first-time buyers. We are proud that under the Conservative-led coalition during the last Parliament, we oversaw an increase in affordable homes—unlike the loss of 420,000 that we saw under 13 years of Labour.

Housing and Planning Bill

Debate between John Healey and Brandon Lewis

Monday 2nd November 2015 Commons Chamber

[John Healey]

My hon. Friend the Chair of the Select Committee is right on both counts. His Committee is conducting an inquiry into housing associations and I look forward to the report, as it will have great cross-party authority and will help this House and the other place get to grips with what the Bill means for the future.

The Chartered Institute of Housing, the independent professional experts, says that this fire sale of affordable council homes to fund the extension of the right to buy could mean the loss of 195,000 genuinely affordable social rented homes in the next five years. Although housing associations might well build more homes as they sell under right to buy, many will increasingly build for open market sale and rent. Indeed, one third already say that they will no longer build any affordable homes. For organisations with a social mission that have played a big part in providing publicly funded homes for decades, that is almost as shocking as one third of NHS hospitals saying that they are prepared only to take private patients. The Bill is a milestone moment for affordable housing in this country and it is a massive step backwards.

Let me turn to starter homes. We welcome the Government’s stated aim of making home ownership more accessible to people on ordinary incomes and to young people in particular. The drop in home ownership over the past five years to its lowest level for a generation means that this is an essential element of meeting the country’s housing needs and aspirations. But what is being done is not working, and these plans will do too little to help. We need fresh thinking, radical ideas and a much wider public debate for the future, which is why I have commissioned Peter Redfern, the chief executive of one of the country’s largest house builders, Taylor Wimpey, to undertake an independent review of the decline in home ownership, supported by an expert panel of major figures in housing and economics.

The Secretary of State must face the fact that the Government’s starter homes will simply not be affordable and will be a non-starter for families on ordinary incomes. Shelter calculates that across the country a person will need an income of £50,000 a year and a deposit of £40,000 to afford a starter home while in London they would need an income of £77,000 a year and a deposit of £98,000. That is simply out of reach for most of the middle-income working families who need help buying a home the most. Furthermore, there are no controls on the Bill to stop those who can afford to buy without help from the Government taking advantage of the scheme, so there is a big risk that the people who benefit most will be those who need the help least. As Shelter says of the starter homes programme:

“The only group it appears to help on a significant scale will be those already earning high salaries who should be able to afford on the open market without Government assistance.”

Let me say this:

“When this was first put forward prior to the election, it was clearly intended to be focused on using that land that had not already been designated for housing. The aim was for it to be a brownfield ‘exceptions’ policy...which would be a welcome addition to existing affordable and other new housing. In the policy as now proposed, starter homes are clearly to be instead of, not additional to, affordable homes to rent”.

Those are not my words but those of the previous permanent secretary of the Department for Communities and Local Government, Bob Kerslake—Lord Kerslake. The Government’s own impact assessment confirms this:

“Starter Homes will not be additional to housing supply”—

the point made by my hon. Friend the Member for Sheffield South East (Mr Betts). So before this Bill goes through the House, the Government must, as a minimum, change it to do two things. First, they must make any starter homes built through developer obligations additional to affordable homes, not a substitute. Secondly, they must put in place a guarantee and a guard against any abuse or dead-weight in the scheme.

Let me touch on planning—parts 6 and 7 of the Bill. With Ministers in a political panic about falling so far short of the new build numbers that they have pledged, this Bill gives them wide-ranging powers to impose new house building and override local community concerns and local plans. With a total of 32 new housing and planning powers for the centre, this legislation signals the end of localism. We welcome the measures to speed up the planning process where there is a clear case for doing so and where local decision making is not ignored, but there are serious concerns about some aspects of this Bill that will be shared in all parts of the House. I say that to the Housing and Planning Minister, who is chuntering again, because he might want to address them when he winds up. Those concerns are heightened, first, by the fact that there has been no consultation on the most radical of these planning proposals; and, secondly, by the fact that so much is left as open-ended powers for the Secretary of State.

Clauses 3, 4, 97, 102 and 107 introduce very far-reaching changes. [Interruption.] Instead of laughing, I suggest that the hon. Member for Croydon South (Chris Philp) look at those five clauses. These far-reaching changes must be clarified and justified by the Secretary of State, and they should be restricted as the Bill goes through Parliament if they cannot be justified. In order to do so, will the Secretary of State guarantee, as he should, that the draft regulations are available to the House when these clauses are debated in the Public Bill Committee?

[The Minister for Housing and Planning (Brandon Lewis)]

Will the right hon. Gentleman acknowledge that what the Bill looks to do, and what it will deliver, is to move on from the atrocious legacy that he left as Housing Minister, when he had just 88,000 home-building starts, followed by 95,000 over the last two years of the Labour Government—the lowest level since the 1920s? That is the legacy he left us with.

[John Healey]

No wonder the Minister’s Back Benchers look so concerned, because this bluster—this promise of big housing numbers from which the Government are falling so far short—will not wash. He has his own track record. Never mind blaming Labour, never mind the previous Parliament: five years of failure on housing under Conservative Ministers is what he has to answer for. Moreover, he did not answer the important question for this House and for the public about the proper scrutiny of this Bill—that is, whether the draft regulations for these sweeping new planning powers will be available to the Public Bill Committee. He is nodding his head, but I am not sure whether that is a yes or a no. I will give way again if he would like to give us a yes or a no on the draft regulations.

[Brandon Lewis]

I am wondering whether the right hon. Gentleman is going to answer the question that I intervened on him to ask, which is whether he recognises that he left a legacy of just 88,000 starts—the lowest since the 1920s.

[John Healey]

Eight out of 10 of the genuinely affordable rented homes that the Minister claims credit for were started under Labour—commissioned under us and paid for with a commitment of investment under us.

Right to Buy

Debate between John Healey and Brandon Lewis

Monday 12th October 2015 Commons Chamber

[John Healey (Wentworth and Dearne) (Lab)]

(Urgent Question): Will the Minister explain to the House the details of the voluntary agreement on the right to buy negotiated with the National Housing Federation and how it differs from his original statutory approach?

[The Minister for Housing and Planning (Brandon Lewis)]

As stated in our manifesto, the Government want to give housing association tenants the same homeownership opportunities as council tenants. Since the introduction of right to buy, nearly 2 million households have been helped to realise their aspiration of owning their own home. There have been 46,000 sales since April 2010, including more than 40,000 under the reinvigorated scheme introduced in 2012 by the last Government.

The Government want to help families achieve their dream of homeownership, but at the moment about 1.3 million housing association tenants cannot benefit from the discounts that the last Government introduced. We want to give housing association tenants the same homeownership opportunities as council tenants. At present, some housing association tenants have the preserved right to buy at full discount levels or the right to acquire at a much lower discount level, while others have simply no rights at all. This cannot be right. The Government want to end this inequity for tenants and extend the higher discounts to housing associations.

On 7 October, the Prime Minister announced that a deal had been agreed with the National Housing Federation and its members giving housing association tenants the opportunity to buy their home at an equivalent discount to the right to buy. This delivers our manifesto commitment to extend the benefits of right to buy to 1.3 million tenants. In summary, the deal will enable 1.3 million families to purchase a home at right to buy-level discounts, subject to the overall availability of funding for the scheme and the eligibility requirements.

The presumption is that the housing association will sell the tenant the property in which they live, the Government will compensate it for the discount offered to the tenant and the association will retain the sales receipts to enable it to reinvest in the delivery of new extra homes. Housing associations will use the sales proceeds to deliver new supply and have the flexibility, but not the obligation, to replace rented homes with other tenures, such as shared ownership. The Government will continue to work with the National Housing Federation and its members to develop new and innovative products so that every tenant can have the opportunity to buy or have a stake in their own home.

As part of the agreement, the Government will also implement deregulatory measures to support housing associations in their objectives to help support tenants into homeownership and deliver an additional supply of new homes. Boosting the number of sales to tenants will generate an increase in receipts for housing associations, enabling them to reinvest in the delivery of new homes. Housing associations will be able to use sales proceeds to deliver that new extra supply and will have the flexibility to replace homes with tenures such as shared ownership. Housing associations have a strong record in delivering new homes, as evidenced by the way we have exceeded our affordable homes target, delivering nearly 186,000 of them—16,000 more than originally planned for the period to 2015.

We want more people to be able to buy a home of their own, and extending the right to buy is a key part of that. It will give tenants who have that aspiration something to strive for that is achievable and give housing association tenants the opportunity for the first time to purchase their home at the same discount levels currently enjoyed by council tenants. We will now work closely with the sector on the implementation of the deal, and of course I will update hon. Members as we move through the stages of implementation.

[John Healey]

I am sorry that I have had to drag the Minister before the House this afternoon. I am disappointed that the Secretary of State made a written statement this morning, but is not prepared to account for himself to the public this afternoon on one of the Prime Minister’s central election pledges. The extension of the so-called right to buy to housing associations, funded by the forced sale of council homes, will mean fewer genuinely affordable homes when the need has never been greater. We will oppose it. This is a back-room deal to sidestep legislation and proper public scrutiny in Parliament.

We have said from the start that this is unworkable and wrong—and so it is proving. The Minister’s and the Secretary of State’s statements today are riddled with holes. They are promising 1.3 million housing association tenants the right to buy their own home. How many tenants will not, in fact, have this right next year? What about those in at least 37 housing associations who have said no to the deal, and those many more who have not been consulted and have not replied? What about those in the nine separate categories of the deal

“where housing associations may exercise discretion over sales”?

What about those caught by the Secretary of State’s weasel words this morning in the written statement, whereby all this will be subject to

“the overall availability of the funding of the scheme”?

What do tenants do when the landlord says no? How can this be a “right” to buy, with no legislation behind it? In truth, this is not a right-to-buy, but a beg-to-buy policy, and many housing association tenants will find next year that they have been badly let down by the Prime Minister’s promises.

I strongly back the desire of most of us to own our own home. That is why I commissioned the chief executive of Taylor Wimpey to do a report for me on the decline of homeownership, which has gone down each and every year in the last five years. This right-to-buy policy, however, is bad housing policy. Shelter warned that 113,000 council homes could be sold off to pay for it, with no-go areas for many lower income families to live in in many of our major cities and towns. What assessment has the Minister made of the number of council homes that will be lost, and when will he publish the full impact assessment of these plans, as he promised the House he would on 29 June, and when will Members be able to vote on these plans, as the Prime Minister promised on 27 May when he opened the Queen’s Speech debate?

The Minister has talked about one-for-one replacement of all homes sold—well, we have heard that before. In 2010, the same promises were made for council homes, and it has been five years of failure—not with “one for one”, but with one home built for every nine sold. So what is the Minister’s guarantee for a one-to-one, like-for-like replacement for both council and housing association homes sold under this scheme, and how many of these genuinely affordable homes sold by housing associations will be replaced by homes that are not?

Finally, this is a challenge for the Chancellor as well as the Minister. This policy fails the test of good social policy and the test of sound economics. It squanders a long-term asset by selling it on the cheap. Will the Minister commit to publishing a full value for public money assessment because taxpayers will bear the cost three times over—first, for the public investment to build the homes; secondly, for the discount to sell them; and thirdly, for the higher housing benefit bill that will come when these homes are bought to let again to tenants at full market rents. If the Minister and his party really want to occupy the centre ground, they should drop this extreme policy. It is a bad deal for tenants and a bad deal for the taxpayer.

[Brandon Lewis]

I have to say that the right hon. Gentleman’s opening remarks, when linked to his closing remarks, sum up where we are. I am disappointed that he seems to want to stop people having the right to own their own home. We will absolutely support people in that right. He talks about the written ministerial statement, but this happened because we have been very busy getting on with the business of delivering homes for people and the right to buy, rather than spending time talking about reports and process.

A few weeks ago, my right hon. Friend the Secretary of State and I spent a couple of days at the National Housing Federation conference talking to housing association members and their representatives. I am not sure whether the right hon. Gentleman was there—we did not see him—but we spent our time talking to the sector, and this is a deal from the sector. The housing associations now want to help their tenants into homeownership, and I applaud them for that. I think that they have done an excellent job in working to deliver a new model that presents a new opportunity to people throughout our country. Opposition Members seem determined to end that opportunity, and, indeed, the Labour party in Wales has stopped people having that aspiration.

This is a deal for the entire sector, as the sector itself has made clear. I am disappointed that the right hon. Gentleman has presupposed its stance by saying that it will oppose the deal. That puts him in an almost unique position. The tenants want the chance to buy, and the housing associations proposed the deal. It is disappointing that the right hon. Gentleman has set himself against them by opposing their deal, which we have accepted after the work that they have put in.

I am sure that, if the right hon. Gentleman looks at the way in which we are providing homes and the way in which the deal will work for people throughout the country, he will recognise that the new portability arrangements will, for the first time ever, give those living in sheltered or extremely rural accommodation who—even under the current scheme—have no right to buy their own homes a chance to do so. I am proud that we are able to deliver on the aspiration and that manifesto promise.

I noted the right hon. Gentleman’s points about the number of homes being built, which Labour Members have raised many times. Eventually, they will come to acknowledge that, in 13 years of Labour government, 170 homes were sold for every one that was built. We have announced that, under the reinvigorated scheme, it will be “one for one”: for every home that is sold, an extra home will be built.

Let me make the facts clear. In year one of the scheme, 3,054 homes were built. In the equivalent year, three years on—councils have three years in which to build—3,644 homes have been built. That is more than one extra home for every one that is sold. If councils do not build a home in time, we in the Government will take the money from them, and we will make sure that those homes are built as outlined in the scheme. The building of that one extra home will drive up housing supply.

I am disappointed that the right hon. Gentleman has not been joined by the shadow Secretary of State, the hon. Member for Hemsworth (Jon Trickett), but I am delighted that my right hon. Friend the Secretary of State is able to join me to state very clearly to the House that we will support people’s desire and aspiration to own their homes. We will deliver the right to buy to those 1.3 million tenants. I thank the housing associations for the work that they have done, and for their willingness to stand up and deliver for their tenants and the tenants of the future. This is the most powerful form of social mobility that we can deliver, and I am proud to be able to be a small part of that.

Oral Answers to Questions

Debate between John Healey and Brandon Lewis

Monday 29th June 2015 Commons Chamber

[Brandon Lewis]

I thank my hon. Friend for that question. I am sure he will appreciate that local communities absolutely have their say under the new wind turbine regime.

[John Healey (Wentworth and Dearne) (Lab)]

13. What estimate he has made of the cost to the public purse of introducing a right to buy for housing association tenants.

[The Minister for Housing and Planning (Brandon Lewis)]

The details will be set out in the impact assessment when the housing Bill is published, but it is all about ensuring that we support people who aspire to own their own home and extend home ownership to as wide a group of people who wish to have it as possible, and on equal terms to those who have had it for so many years.

[John Healey]

What a load of waffle. It is quite clear that the Minister has made no assessment at all of the costs of the policy. When he produces the impact assessment before the Bill is published and brought before the House, will he ensure that it shows that taxpayers will pay three times over: first, for the investment to build the homes; secondly, for the discount to sell them; and, thirdly, for the higher housing benefit bills that will result?

[Brandon Lewis]

I appreciate that the right hon. Gentleman feels strongly about this, no doubt against the background of his interests in the housing association he is involved with.

I gently point out to the right hon. Gentleman that he has made it very clear where the Labour party stands on the issue. Lord Prescott himself made it clear that he did not know what aspiration was. I suspect, from what the right hon. Gentleman has said, that he probably still harks back to his statement to the Fabian Society, in which he spoke about the drop in home ownership since 2012 being no bad thing. We think that it is, and we want to support people who want to own their own home. I am disappointed that he does not support aspiration.