Property: Commonhold

Lord Adonis Excerpts

Monday 19th November 2012 Lords Chamber

[Lord Newby]

I absolutely agree with the need for joined-up government. As noble Lords would expect me to say, on a whole raft of housing initiatives, not least in relation to the Infrastructure (Financial Assistance) Act, the Treasury and the Department for Communities and Local Government are working extremely closely together.

I understand why the noble Baroness is such a keen proponent of commonholds, but between 2002 and the present day, there have been only 15 commonhold developments in England and Wales comprising a mere 161 units.

[Lord Adonis]

Has the Minister seen today’s Financial Times, which reports:

“While the government had hoped that pension funds would invest … £2 billion”,

in infrastructure,

“by early next year, a year of talks has so far raised just £700 million”?

When does the Minister expect to raise the missing £1.3 billion?

[Lord Newby]

My Lords, the initial £700 million consists of a commitment by a significant number of pension funds to put in £100 million each as a starter. We are working very hard with them to scale up the programme, but it is a new programme. Pension funds have never done this kind of thing before and, not surprisingly, they want to dip their toe in the water before they immerse themselves more fully. I am very confident that they will see this initial £700 million as an effective investment, and then they will rapidly scale it up in the way that the noble Lord wishes.