Housing: New Homes

Lord Bishop of London Excerpts

Thursday 27th February 2020 Lords Chamber

[Baroness Bloomfield of Hinton Waldrist]

The Government fully recognise the importance of increasing the number of small and medium-sized housebuilders in providing the housing in this country. He is absolutely right to point out the dominance of the large housebuilders. We have done quite a lot to encourage SMEs in this space, and at the last Budget we announced up to £1 billion of new guarantee support schemes for SMEs, to be implemented by the British Business Bank. To go further into Sir Oliver Letwin’s report, I would rather write to the noble Lord with a fuller reply.

[The Lord Bishop of London]

My Lords, will the Minister say whether the Government are planning to look at different versions of what affordability might mean in relation to housing? I am sure noble Lords know that the West Midlands Combined Authority has been looking at income rather than market value. This has brought house prices within easier reach of more people in lower income brackets.

[Baroness Bloomfield of Hinton Waldrist]

We have done much to increase affordability for individuals. The affordable rent was introduced to maximise taxpayers’ money, which has allowed us to build more homes for every pound of government investment, because local authorities have had greater income at their disposal to spend on new houses. Removing the cap has also enabled them to invest much more in housing.