(12 years, 9 months ago)
Commons Chamber18. What assessment he has made of recent trends in housing affordability.
The housing strategy recognised that affordability has significantly deteriorated in recent decades. Under-supply of housing is a major factor. The strategy announced an ambitious package of measures to boost house building, including the £420 million get Britain building fund, the release of public sector land and a new-build mortgage indemnity scheme.
Is the Minister aware that the average family in Southampton would have to spend nine times its salary in order to purchase an average house in the city, and that, based on rent as a proportion of median income, Southampton’s private sector rents are also deemed very unaffordable? How does he intend to take people out of this trap, given that even if the Government’s affordable housing programme works it will produce only 70% of what the Labour programme produced in its last five years?
I thank the hon. Gentleman for his question. I should perhaps point out to him that we have a programme for 170,000 social and affordable homes by the end of this Parliament, which will leave the country with a net addition to the amount of social and affordable housing, unlike the 220,000 fall in such housing during Labour’s period in office.
I should also point out that the most important thing we are doing is stabilising the financial situation of this country and keeping interest rates low. The combination of policies the coalition Government are following will produce the results that the hon. Gentleman and I both want.
I thank my hon. Friend for his question. We now have some 700,000 empty homes, of which over 300,000 have been empty for more than six months, and it remains a key priority of this Government to bring them back into use so that some of the 1.7 million families on council house waiting lists and the many more who would like to purchase their homes can do so.
T3. Will the Secretary of State confirm the really startling figures from the first quarter of the operation of the new homes bonus, which show that new home starts went down by 18% compared with the same period last year, and that residential planning permissions went down by 23% compared with that same period? If he can confirm that those figures are correct, will he tell us what plans he has to revise the mechanisms of the new homes bonus?
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It is a pleasure to serve under your chairmanship, Mr Chope.
I am pleased to have the opportunity to respond to this debate, which has included well informed and occasionally passionate contributions from Members. I do not want to minimise the underlying point that it is important to ensure that houses in multiple occupation are appropriately placed, safe and secure and that they do not have a destructive impact on their neighbourhood. It is certainly not the Government’s intention to give a charter of immunity to unscrupulous landlords. On the contrary, we have introduced a targeted process of control that is available to local planning authorities. As quickly as I can due to limited time, I will explain to the House exactly what is proposed, state what progress has been made and, as far as I am able, answer the questions raised.
One point at issue is how widespread the problem is. The Minister for Housing and Local Government gave in the debate on Tuesday and brought to the Committee the estimate made in the Rugg report. He said, “Let’s assume for the sake of argument that it’s actually 10 times worse than that, and that it’s 5%.” Members have said today that 20% of the country is affected. In that case, I must say gently to my hon. Friend the Member for Leeds North West (Greg Mulholland) that he cannot claim at the same time that 8,500 planning applications is an overestimate. If the size of the problem is anything like what some people have described, the number of applications made will be hugely greater. In fact, if it is a 5% problem, that means that out of the 8,500 applications that the impact assessment anticipates, only 450 would be in problematic areas. That would impose on landlords a £12 million application cost that would be completely unnecessary for 8,000 out of those 8,500. I say to hon. Friends who perhaps believe even more strongly in deregulation than I do that surely there cannot be anything very wrong with that.
I understand that, so I will make my intervention brief. The Minister’s mathematics simply do not add up. If the problem is as concentrated as he suggests, most of the applications will be made in certain areas and not others. He cannot divide the number arithmetically across the country, conclude what the number of planning applications will be and still stand by the view that it represents only a small number of wards in the whole country.
I can, and I shall debate it with the hon. Gentleman later over a cup of coffee. I point out that that is not at the heart of the Government’s case. Our case is quite clear: effective legislation should be in place where there is a genuine problem. We are saying that that will be determined by local planning authorities, not by national legislation.
I understand that the hon. Gentleman has a letter from Southampton city council. I know that Southampton and Portsmouth do not get on well, but Portsmouth has already started the process of imposing an article 4 direction on the whole city. It takes 28 days to do it, and then its 12-month period will run. Perhaps Southampton should learn from Portsmouth. It is dangerous for me to say so, but I will say it.
I commend the Minister for Housing and Local Government on pointing out in the debate on Tuesday that in his constituency of Welwyn Hatfield, Welwyn was fine while Hatfield had a problem due to the university of Hertfordshire students and their HMOs. He supposed, and I understand that he told the Committee, that Welwyn Hatfield council would take action on article 4 in relation to part of its area. Several Members who have spoken in this debate mentioned specific areas in their constituencies that were a problem. The hon. Member for Bournemouth West (Conor Burns) mentioned Branksome East and Winton in particular, and the hon. Member for Nottingham South (Lilian Greenwood) discussed three wards in her constituency.
That is exactly the Government’s point: the problems are comparatively localised, although serious where they arise. We believe that there is a better way to address them. We believe that the article 4 system will deliver. There is already evidence from Manchester, Portsmouth and Exeter that local authorities are responding and are not finding it unduly burdensome to go down that route. The guidance issued by the Minister for Housing and Local Government on 4 November will, I hope, give them some additional reassurance on that point.
I welcomed and enjoyed the contribution made by the hon. Member for Loughborough (Nicky Morgan). Yes, we will be undertaking a review, as she requested. Yes, monitoring will take place. I am absolutely sure, given all the eyes turned on us, that if we did not, the House would be quick to remind us of it.