British House Building Industry

Richard Bacon Excerpts

Thursday 5th September 2019 Commons Chamber

[Siobhain McDonagh]

Actually, the shareholders are doing quite well as well, because they are getting quite a lot of money on the back of Help to Buy. That could be the subject of another debate.

I have no doubt that those four men work hard and have a grasp and understanding of their industry that few others could provide, but surely high pay is supposed to be about high productivity and high quality of product. It seems to me that the more substandard the properties they build and the lower their rate of productivity, the more they get paid. There seems to be no consequence for poor performance. We are in a housing crisis—is it really appropriate to provide such preposterous pay packets, considering the house building record I have described?

[Mr Richard Bacon (South Norfolk) (Con)]

I agree with almost everything that the hon. Lady has said, but I ought to point out—I declare an interest, because as part of an Industry and Parliament Trust fellowship I spent a day at Berkeley—that the main shareholder of Berkeley is Tony Pidgley, who started that business himself. He left school at 15, unable to read and write, and he has employed thousands of people, created a great deal of wealth for this country and paid a huge amount of tax. Moreover, he would deny—and he would be right to do so, unlike some of the others the hon. Lady rightly mentioned—that Berkeley produces poor quality. It does not; it produces extremely good quality. Berkeley refuses to be a member of the Home Builders Federation because it does not consider itself a volume house builder.

[Siobhain McDonagh]

I certainly agree with the hon. Gentleman in part. I have had the honour of meeting Mr Pidgley and I give him credit for his career and his actions. His profits do not come from Help to Buy, but, even so, it does seem like a very unequal company. I have no problem with people earning well at the top, but the people at the bottom should not earn badly.

--- Later in debate ---

[Mr Richard Bacon (South Norfolk) (Con)]

That is very helpful, Madam Deputy Speaker.

May I start by congratulating the hon. Member for Mitcham and Morden (Siobhain McDonagh) very sincerely? I realised how strange times are in this particular area of housing debate when I attended a lunch at the Institute of Economic Affairs, where the hon. Lady was the guest speaker. I realised that it is the case not so much that there is political cross-dressing going on, but that many of us are searching for solutions outside the traditional parameters; and that is because, as the title of the White Paper from January 2017 said, we have a broken housing market. We might have some differences about the causes of the situation she accurately describes and about the best prescriptions for solving it, but it is absolutely clear that supply does not rise to meet demand. She used the word “market” in her last couple of sentences, which rather implies that we have a market for housing, but we have no such thing; we have a tightly controlled oligopoly, and actually supply does not rise to meet demand, because most suppliers do not wish to damage their own profit margins by oversupplying the market so that prices fall. We would not expect that in any other area of business and we should not expect it in housing.

Fundamentally, we need to change the model. If we have a broken housing market, we need to create a different ecosystem, and one of the fundamental things we need to do is increase choice for consumers. It is by far the single biggest thing people spend money on —whether renting or buying, it is the thing that people spend most of their monthly income on—but it is the thing over which they have the least choice. In any ecosystem in which the consumer had any say, it would be the thing over which they had the most choice.

As well as increasing choice, we have to lower barriers to entry, and that is where I want to bring in my favourite subject, mentioned by my hon. Friend the Member for Dartford (Gareth Johnson), namely self-build and custom house building.

[Matt Western]

On choice, I totally agree with the hon. Gentleman’s point. One of the critical things, in addition to self-build, is the reintroduction of all the small and medium-sized enterprise builders we lost after 2007-08. Apparently, a quarter of all houses built are built by SMEs, whereas it used to be two thirds.

[Mr Bacon]

In 1988, it was indeed two thirds. If we increase the regulation and make it more difficult to get hold of land, it is the SMEs that will go, because only the big firms with the big balance sheets can afford it. It is a very risky enterprise, and actually local planning authorities prefer dealing with a small number of large companies because it is easier for them. That is one of the other things we have to change.

I am accused of wanting everyone to learn how to be a builder and build their own house. It has nothing to do with doing it yourself. It is very important to stress that. It is about self-commissioning and giving the customer more power. I will be briefing the Minister next week on the terms of the Self-build and Custom Housebuilding Act 2015, which commenced three years ago in April 2016, and the way it was augmented successfully by the Housing and Planning Act 2016, so that now the more people who are on the local register, the greater the legal obligation on a council to provide suitable planning permissions.

The point about having individuals and associations of individuals under the terms of the legislation is that it could apply to anybody. It could be used by school governors wishing to use the provision of a serviced plot of land as a recruitment and retention tool; by local social services directors trying to recruit social work managers in parts of the country where it is difficult to find the right calibre of social worker; by NHS trusts trying to accommodate staff, whether young junior doctors, paramedics or ambulance staff; by local Army commanders trying to retain that very expensively trained staff sergeant with 20 years’ experience; by the Royal British Legion and other veterans groups trying to accommodate veterans; by probationers and ex-offenders trying to make sure that ex-offenders coming out of prison have accommodation that is not the drug dealer’s sofa; and by the homeless themselves—I have seen just outside Berlin, in Potsdam, homeless single mums building their own accommodation for an affordable rent.

That brings me to my next point: it has nothing to do with tenure. One can use self-build and custom house building both for private ownership and for all kinds of affordable accommodation models, including mutual housing co-operatives and various other types of social landlords.

I am keen to keep my remarks brief, but I want to say a few things to the Minister about what the Right to Build Task Force, which I have been involved with for some years, is now looking for. We had £350,000 of funding from the Nationwide Building Society, and with that we can evidence an additional 6,000 to 9,000 houses added to the pipeline in the last three years. If we can do that with £350,000, think what we could do with some serious money. I would like the Department to take on the funding for that, but also as part of a help-to-build team installed within Homes England with the task of facilitating the delivery of service plots, buying land and working with local authorities and other public sector partners on public sector land for a range of client groups, especially the young and those who have been most marginalised. That team should also reach out to anybody who wants to get a service plot so that we reach a point where someone can go to the plot shop in the local town hall in their home town and find a plot of land as easily as people can in the Netherlands, where I have seen it done.

We have to put help to build on a level playing field with Help to Buy. The Government are currently planning to spend £22 billion on Help to Buy, subsidising demand, when we should really be subsidising supply. If one wants more of something, then subsidise it and it will happen. I know from many people I have spoken to, including Treasury Ministers, that there is a desire to do something about the growing cost of Help to Buy. The obvious thing to do is to wean people off Help to Buy—a subsidy for demand—and wean them on to a subsidy for supply, thus increasing supply.

We have to remove the regulations that currently allow local authorities to charge people to be on the register each year. Most do not, but Camden and Islington councils charge £350, and people do not get any guarantee of a plot for that. That should be revoked. I said that to Gavin Barwell when the regulations were introduced. I was not put on the Committee for some reason, even though it was my own private Member’s Bill that became the Act, but I went along anyway and spoke. He said on the record—I can show this to the Minister—that if it proved to be a problem, he would take a look at it. Although he is no longer the Minister, the Government were committed to looking at it. I can tell the Minister that it has become an issue and we should now revoke these regulations. The charge is supposed to recover the cost of keeping a register, but that is really very small—it can be done in an exercise book kept in a drawer or on a spreadsheet.

We need to introduce a series of specific planning reforms, particularly allowing for exception sites where councils are not fulfilling their legal obligations. We need to make it clear that the national planning policy framework has a presumption in favour of sustainable development in circumstances where councils fail to meet their duties under the legislation, irrespective of whether there is a five-year land supply, in terms of providing service plots. We need to introduce changes to the planning system that provide greater predictability to reduce the planning risk—for example, through the compulsory use of form-based codes or through local development orders. We need to take forward the proposals in the White Paper to facilitate land pooling, which has worked very successfully in Germany and elsewhere on the continent.

We do have a broken system, and doing more of the same will not produce a different result. We have to think differently and do differently. I encourage the Minister to take that responsibility seriously.

--- Later in debate ---

[Ms McVey]

Through an array of support. Obviously, I have been heartened by the fact that first-time ownership has increased for the first time in 11 years. People are getting on the housing ladder. We have helped more than 500,000 people through Help to Buy and the right to buy, and we intend to continue to do that.

[Mr Bacon]

May I draw my right hon. Friend’s attention to the £25 billion a year housing benefit budget, which represents 3% of all public spending? It will be £0.25 trillion over the next 10 years, and it has been £0.5 trillion over the past 20 years or so. The permanent secretary in her former Department, Peter Schofield, who used to be the director of communities in the Ministry of Housing, Communities and Local Government, came with us to Berlin to look at more creative and innovative ways of delivering housing. May I suggest that my right hon. Friend talks to the Department for Work and Pensions about trying to use some of that housing benefit budget —admittedly, it is helping some housing associations, but it is also propping up private landlords—for capital investment in a greater quantity and quality of housing stock?

Housing

Richard Bacon Excerpts

Thursday 28th March 2019 Commons Chamber

[Mr Richard Bacon (South Norfolk) (Con)]

I am sorry to see Members leaving the Chamber, because we are about to discuss the Government’s top domestic priority, which is of far more concern to many people up and down the country than our endless talk of Brexit. I have entitled this debate “Housing” because I did not want to be confined to any specific part of the housing debate and wanted to give the Minister the opportunity to address any question within the housing space.

It is absolutely clear that we have a very big housing problem, and have had a very big problem, for some years. I have been attending seminars, roundtables and conferences on housing for at least seven years. I first went to the QEII Centre to hear Adri Duivesteijn, the godfather of the self-build and custom house building movement in the Netherlands—a former Dutch Member of Parliament who then became the mayor of Almere, a community in the Netherlands that I think I am right in saying the Minister has visited. Since then, I have been to many events of various kinds, and everyone has their own diagnosis of the problems and their own solutions, but generally they all mention land, planning or finance. They often mention the role of the volume house builders, the way in which local council planning authorities are stretched and the difficulty in getting access to land.

Many of these points have a great deal of truth about them, but the issue can be encapsulated much more simply in the following sentence: the supply of housing does not rise to meet the demand for housing. In many other areas of life, it is true that supply generally does rise to meet demand. In what I would call orthodox, rather than classical, economics, if someone is making what economists call supernormal profits—profits that are in excess of what one might expect—two factors generally combine to bring those profits down to normal levels. One factor is that other actors in the marketplace will see the opportunity of those high profits and will move in. In other words, new suppliers will move in, with competition, increasing choice for consumers and driving down the profit margins. But that is not the situation that we have in the United Kingdom. In fact, over the last 30 years, the situation has steadily become the reverse of that. We effectively have permanent supernormal profits.

Some 30 years ago, in 1988, 66% of houses in this country—a large fraction of the total—were built by SME builders, which were represented by excellent organisations such as the Federation of Master Builders. The situation now is that less than 20%—perhaps 15% or 17%—of houses are built by SME builders, with all kinds of extra problems that make it more difficult for them to engage. Now a very small number of very large companies build most of the houses; for the most part, they are the members of the Home Builders Federation.

The strange thing is that if one asks consumers what they think and what they want, as has been done several times by independent, authoritative opinion pollster organisations that have been commissioned for the purpose, they will come up with the following result. Somewhere between two thirds and three quarters of people do not want to buy the products of volume house builders. The figure of 75% comes from a YouGov survey conducted by the National Custom and Self Build Association, which is a trade body for, as the name suggests, self-building and custom house building, whereby houses are manufactured offsite—perhaps a better way of putting it is “high-tech offsite construction”—and then delivered to a site where they are constructed. The figure of 67%—the two thirds of people who do not want to, or would prefer not to, buy the product of the volume house builders—comes from the volume house builders themselves. Their own research tells us that most people do not want to buy their product. Now, in a vaguely competitive ecosystem where there was choice for consumers, that would be corrected by new suppliers coming in and providing something that consumers did want.

Let me be very clear that the numbers themselves suggest that between a third and a quarter of consumers do want to buy the product of volume house builders. If they wish to do so, they should be free to do so, as long as those products are built to the right standards in terms of health and safety and building regulations. I have no issue with that at all. It is true that, over the last 30 to 40 years, houses have got smaller and more expensive than they were in the not-that-distant past. However, if people wish to buy the product of a volume house builder, they should certainly be free to do so, as long as those volume house builders operate within the law; I do not object to that at all. But fundamentally, the two things required for this ecosystem to function are low barriers to entry and consumer choice, and those are the two things that are fundamentally absent.

We all know what the consequence is. I have tested this with nine-year-olds in primary schools in my constituency. I say, “What happens to the price of something if there is not enough of it?”, and every had goes up and they say, “It goes up.” Then, just to make the point really clearly, I say, “And what happens to the price of something if there is too much of it?”, and every hand goes up and they say, “It goes down.” It is not difficult to understand—it is intuitive to the point where a nine-year-old can grasp it. That is what has happened to the housing market, if one can call it a market, in the UK. I suppose that an economist might say that of course it is a market, but a very oligopolistic one—in other words, something approaching, but not quite, a monopoly.

That means that the suppliers making supernormal profits can keep on doing this for a very long time without let or hindrance. At the same time, the average price of an average dwelling has gone from three and half to four times income a generation ago to about eight times income now. That depends on where one is in the country, of course. For South Norfolk, the last figures I saw from the National Housing Federation—admittedly slightly out of date now, but they will not have changed that much—were about 8.2 times average income. The same numbers suggested 8.2 times average income in Harlow in Essex, 13 times average income in Hertfordshire, and 17 times average income in Oxford—and in some of the really hot boroughs in London, it was completely off the charts. Even in the poorer parts of the country where incomes are lower and properties are less desirable, it is now five and half to six times average income in many cases.

I pumped my parliamentary salary into one of the websites just to see what a lender would lend, and I was quite horrified that the first number that came out was five and half times income. That would not have been possible a generation ago. We have had more money chasing roughly the same amount of houses, and, not surprisingly, the price has gone up. That has a number of consequences.

[Anna McMorrin (Cardiff North) (Lab)]

Does the hon. Gentleman agree that house builders need to be looking at the cost of living in a property over the time that residents would own that property and meeting carbon reduction or zero-carbon targets, so that when the house is sold the cost of living in that house has changed?

[Mr Bacon]

Yes, I do, although if one went on a sales course, one would be told “Benefits, not features.” One does not explain that a vacuum cleaner does 3,000 revolutions per minute rather than 1,500, as nobody cares—one explains that it cleans one’s house better. In the same light, I would not bang on about carbon, making people feel kind of morally inferior—I would explain that one could have the choice of having a house that would cost nothing to heat, and ask why anyone would want one that cost a lot to heat.

I had this out very specifically at the Policy Exchange think-tank with the land use and planning director of Barratt. I asked about what it did for its customers in this regard. I said, “Is it really true that you have a conversation with your customers in which you say, ‘Now madam, we’ve got a variety of houses available for you, this one over here that will cost you roughly £1,400 a year for heat and hot water, and this one over here that is insulated to, or nearly at, passive house standards that will cost you almost nothing to heat—perhaps, with mechanical ventilation with heat recovery, £80 or £150 a year. Which one would madam prefer?’ Do you really offer them that choice?” Of course, he turned his back on me and stomped off rather than answer the question.

[Anna McMorrin]

Does the hon. Gentleman agree, though, that we need to change our building regulations in England, and also in Wales, where this is devolved, to make sure that housing is built to low-carbon or zero-carbon standards to ensure that this happens across the board? We have house builders that are really taking advantage by putting up houses that come at a ridiculous cost to our climate.

[Mr Bacon]

Yes. I do not want to be building houses that we will be knocking down in 30 or 40 years’ time because they are so dreadful. That is utterly pointless. The hon. Lady mentioned building regulations. At the Local Authority Building Control conference, where I gave an address, I needed only to say the word “Persimmon” and people fell around laughing as if I was as funny as Tommy Cooper—perhaps there are people who think I am—because it is a byword for poor practice in the building industry.

I have heard the chief executives of volume house builders criticise Persimmon for its bad practice. We all know what happened to the sainted Jeff Fairburn. Because of his compensation scheme, he was being paid—I will say this slowly—£130 million in emoluments by the shareholders of Persimmon. So egregious a scandal was it that he got so sick of being followed round by someone from the BBC with a microphone asking him to justify it that he eventually resigned, which was a red letter day for many of us who are campaigning for higher quality. In a competitive environment where the company could not afford to pay one chief executive that much money, that money should have been going into larger spaces, better quality material and better thermal performance. There is a huge distortion.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on securing the debate. He and I have discussed on a number of occasions how houses should be built in the future. Modern house building should ensure better air quality, better insulation, better heating, better windows and better doors. It is also about the location—for example, the green areas around the house and access to shops. A house has to be a home. I declare an interest, as chair of the all-party parliamentary group for healthy homes and buildings. I know that the Minister and the hon. Gentleman have read the APPG’s report and are aware of its recommendations. Does he feel that those are a way forward for housing?

[Mr Bacon]

I do, and I am grateful to the hon. Gentleman for reminding me of that. There is a lot of evidence that if people live in better, more spacious, healthier homes, there are lower costs for the NHS and lower sickness rates; it is better for employees and employers. There are lots of other ancillary benefits of having better homes, as well as their being good in themselves.

I am keeping a close eye on the clock, Madam Deputy Speaker. I planned to start with a preamble, which I seem to be doing without too much trouble, and then get into the specifics of what I want to say to the Minister about the Right to Build Task Force, but I will say one or two more things before I do that.

The situation we face is one in which an entire generation have basically given up on the chance of either owning a property or even being able to afford to rent one. In general, and especially in the big cities like London, Birmingham and Manchester, people spend an absurd proportion of their income on rent. When it is costing people over 50% of their net monthly salary to rent a ghastly little bedsit where the mattress is hanging over the sink—I do not exaggerate; I saw such an example on a Channel 4 documentary a while ago—we obviously have a big problem.

I was at a dinner at the London School of Economics where a professor was talking about a graduate student of his who was about to start working in the Bank of England on a not inconsiderable salary, but he was going to be living at home with his mum. The chap from KPMG around the table said, “Well, that’s nothing. We start our graduates on £45,000, and they can’t afford to buy anywhere.” Then the chap from BlackRock said, “Well, that’s nothing. We start our graduates on £75,000, and they can’t afford to buy anywhere, certainly not within a decent distance of our office.” It has got completely out of sync, and the Government have to fix it.

There is, of course, a political problem for our own party. I will address that later, but it is perfectly obvious that if people cannot get somewhere to live at a price they can afford, they will not vote for a party that cannot provide that for them. We need a fundamental change. We have dug ourselves a big hole over the last 20 to 25 years, and it will take us 20 to 25 years to dig ourselves out of it. If we are not careful, we will be in the same position in 20 to 25 years, only worse, unless we have the right policy proposals for fixing it. That is what I want to come to.

When I came off the Public Accounts Committee in 2017, it was to spend time on the Right to Build Task Force, an initiative set up by the National Custom and Self Build Association to help local councils, developers, community groups and landowners who want to bring forward self-build and custom house building projects on serviced plots of land—that is to say, where all the difficult bits such as fresh water, sewage, electricity, broad- band and so on are already dealt with—in order to increase supply and give people more choice. That is what I have spent most of the last two years in this place doing.

[Alex Chalk (Cheltenham) (Con)]

In Cheltenham, the overwhelming majority of the house building taking place in the town centre is for retirement apartments. Does my hon. Friend agree that if we want to maintain the culture, vitality and vibrancy, we have to ensure that young people can afford to live there as well? Will he join me in congratulating the Government on providing, through the home improvement fund, millions of pounds for a Portland Place development in Cheltenham that subsidises marginal viability schemes, to ensure that young people can truly live in the town centre and contribute to its vibrancy?

[Mr Bacon]

Yes, I do, although I could easily get into a long discussion about viability that would consume the rest of this debate, which I cannot do. There are big problems with the whole concept of the way in which we calculate viability. However, I congratulate the Government on helping Cheltenham bring forward what sounds like a very important scheme.

The Right to Build Task Force has been going for two years. We have scraped together £300,000, courtesy of the Nationwide building society’s charitable foundation, the Nationwide Foundation. Over 50 organisations have been helped, of which 60% are local councils, with the rest being community groups, landowners and developers. There is a whole range of examples of its work. Aylesbury Woodlands in Buckinghamshire will have a project where 15% of all the new homes are custom and self-build. Cornwall has an ambition to bring forward up to 1,000 serviced plots across the county. I am looking around for my hon. Friend the Member for North Cornwall (Scott Mann), who arranged the meeting we had with the Prime Minister on this very subject and who is a passionate believer in more serviced plots. North Northamptonshire has a plan whereby as many as 10% of homes could be custom and self-built across several different local authorities. There are rural areas such as Eden in Cumbria, which is looking at a range of opportunities for affordable homes for local people. King’s Lynn and North Norfolk, in my own county of Norfolk, has agreed an action plan to drive up delivery across the area with landowners and smaller builders. A lot is going on already, but the thing is that there could be very much more going on.

This is the fundamental point. It is a quote from Andrew Baddeley-Chappell, a former director of Nationwide building society, who is now the chief executive of NaCSBA, while still chairing the Bank of England residential property forum. He has said:

“Custom and Self-build can deliver more and better homes that more people aspire to live in and that communities are happier to see built.”

An exegesis of that would basically cover most of what I want to say.

If we want more homes, we have to build them in a way that people want. At the moment, the problem is that most local people feel they have no say or voice in what gets built, where it gets built, what it looks like, how it performs—its thermal performance and therefore what it costs to run—and, absolutely crucially, who gets the chance to live there. If we change all that, we change the conversation. As the right hon. Member for Leeds Central (Hilary Benn), the former shadow Secretary of State said, we need to turn NIMBYs into YIMBYs. Prince Charles put it even better when His Royal Highness referred to BIMBYs—beauty in my backyard. We need to create an environment in which people actually welcome housing. We have reached the tipping point now in that more people want it than do not, because people have begun to realise how serious the crisis is.

As the Minister would expect, I have a small number of specific asks. The first is that we should have more Government support for the taskforce. We have already had some. I persuaded my right hon. Friend the Member for Bromsgrove (Sajid Javid), when he was the Housing Secretary, to lend us a civil servant—a qualified planner and career civil servant. He would prefer me not to mention his name, but I will because we are so indebted to him. His name is Mario Wolf, and he directs the work of the taskforce. We are very grateful for the loan of Mario Wolf from the Ministry of Housing, Communities and Local Government. He has done an enormous amount with very little in the way of resources. I mentioned some of the work earlier.

It is of course true that if we had more Government support, we could do more. The Help to Buy programme, which I will come on to in a moment, has so far spent £10.6 billion, and plans to have spent £22 billion by 2021. In other words, 35,000 times more is spent on subsidising demand than on a scheme to subsidise supply, albeit indirectly by helping to facilitate and increase choice for consumers—except, of course, that the Government are not actually paying for it; Nationwide building society is paying for it. I hope to have a discussion about that with the Minister at some point, because we are of course implementing Government policy. If hon. Members read the housing White Paper, they can see that we are implementing Government policy. If they read the Homes England strategy, it is very clear that the strategy calls for diversification of housing.

The second thing I would like the Minister to consider is a review of the planning guidance on custom and self-build housing—the guidance that supports the revised national planning policy framework—because at the moment it is outdated. Three things need urgent attention. On land allocation, many councils do not even know if they are allowed to allocate land specifically for custom and self-build housing, even though they are, and councils such as Bristol City Council are already doing so.

We also need clarity about what counts. Some local authorities are gaming the system, and in some cases local authorities are not clear what counts towards their legal obligations to provide permissioned plots of land. Some councils are allowing the conversion of holiday lets into private dwellings under the happy delusion that that counts towards meeting their legal obligations under the right to build legislation, and some of them may be in for a rude awakening at some point.

There is also the issue of viability. For as long as one has viability assessments, the Government need to look carefully at how they should work in relation to custom and self-build; they will not necessarily be the same as for market housing. I would be grateful if the Minister engaged with the taskforce on updating the guidance generally, so that it is more fit for purpose.

My third request is about the Planning Inspectorate. It is absolutely imperative that Government planning inspectors properly apply the current provisions of the legislation when they determine planning appeals and when they examine local plans. There is clear evidence that that is not happening as it should—mostly because planning inspectors are unfamiliar with the law in this area, which is still quite new. The obvious answer is to have training for inspectors. The Secretary of State has agreed with me at the Dispatch Box that we should do that, although it has not happened yet. I urge the Minister to pursue that and engage with the taskforce in identifying exactly what training is required.

We need something to help raise consumer awareness. Most people would like to commission a project of their own at some point in their lives; 1 million people would like to do that in the next 12 months, yet only 12,000 to 15,000 do. The reason is that it is very difficult to get a serviced plot of land. If getting one were as easy as it is to go into a Ford dealership and buy a Ford Fiesta, far more people would do it.

We are spending a significant amount of public money on housing, but at the moment I am not convinced that we are not simply making the problem worse. Help to Buy will have spent £22 billion by 2021 on helping 360,000 households. If we divide one figure by the other, we get £61,111—that is per household. We should be spending that better. At the moment, we are propping up an oligopoly that performs well financially for itself, with some horrible results, while making itself unpopular with consumers who cannot afford its products.

[Matt Western (Warwick and Leamington) (Lab)]

rose—

[Mr Bacon]

I am sorry, but I will not give way—only because of the lack of time; I need to leave the Minister a couple of seconds.

What did Adam Smith say?

“People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices.”

The aim of public expenditure on housing should be to lower barriers to entry and increase choice, so that people can have the houses they want. If we get this right, we can engender a revolution in this country in how housing is done. If we get it wrong, we will pay a high price at the ballot box: almost nobody between the ages of 20 and 40 can easily, at a price a normal person can afford, dream of having their own place, even though 86% of people in this country want to. We need to design and redesign a system that allows them, and everyone else, to achieve their aspirations.

--- Later in debate ---

[Kit Malthouse]

I totally acknowledge the role that high environmental standards have to play in a sense of social justice about housing. I went to a factory run by Accord Housing, which produces 1,000 modular homes a year. So good are the environmental standards in those homes that they have lower arrears because people can afford to heat them. That is definitely something on which I want to focus.

I want to address some of the questions that my hon. Friend raised. He is right that we need to do something about the way in which the house building market functions at the moment, and my job is to wander around being disruptive, supporting new entrants and players to create the competitive landscape that he is looking for—competing on quality and type; being disruptive on technology and encouraging modern methods of construction, including off-site manufacture and new techniques, so that new entrants find it easier to overcome the barriers to entry that he mentioned; and being disruptive on finance.

My hon. Friend is a little negative about Help to Buy, but I ask him to take care. Many tens of thousands of young people have accessed homes for the first time when the market was denied to them before, because of a Government-backed effective bank of mum and dad. While there will be assessments of that scheme, there is no indication at the moment that it has pushed up prices.

[Mr Bacon]

Of course people who are given cash will be grateful, but if there is a subsidy for demand rather than supply, we will not fundamentally solve the problem. Would it not be a good idea to wean people off Help to Buy and towards Help to Build, so that we subsidised supply? If we subsidise something we get more of it, and what we need more of is supply.

[Kit Malthouse]

My hon. Friend is right. It is possible—although I know it is strange—for Government to do two things at the same time. Help to Buy affects a very small percentage of housing transactions—about 4%—and the indications are that it has not had a particular impact on prices. We continue to review the policy in the light of its success—some 160,000 people have now accessed homes who otherwise would not have done so.

In the last minute or so I want to return to my hon. Friend’s questions. He asked five specific questions. First, will we look at a review for the taskforce? Given that we are going into a spending round, with what may be small amounts of money in the scale of the spending that I have available, I would be more than happy to do so. I am of course also more than happy to look at planning guidance review and particularly land allocation. In particular, we could perhaps think about communicating more widely to local authorities. I would be happy to help him by sponsoring some kind of event to promote the idea and to help local authorities to learn.

On viability, when I was on the Treasury Committee we did a housing inquiry in which I posed the question to Kate Barker and David Orr whether we should do away with the viability test as part of the planning system, and both of them thought that that was a good idea. In the meantime we have standardised the viability test to see where we get to.

On the Planning Inspectorate, my hon. Friend is right. We are trying to talk to staff about how they can be more consistent in their decision making and apply it more regularly across the country.

Finally I would be more than happy to join my hon. Friend in raising consumer awareness, and I congratulate him on what was a tour de force of knowledge of housing policy.

Question put and agreed to.

Oral Answers to Questions

Richard Bacon Excerpts

Monday 4th March 2019 Commons Chamber

[Kit Malthouse]

As I hope the House knows, this Government are extremely ambitious about our environmental targets and want to push further and faster in order to achieve them. The hon. Lady is right that there is enormous potential, particularly in the affordable homes programme and the new generation of council homes that we hope will be built to create higher environmental standards. I saw this for myself on a visit to a factory in Aldridge in the west midlands, where Accord Housing is producing modular homes for social and affordable rent. They said to me that so good are the environmental standards in those homes that they have lower arrears in buildings built that way because they are easier to heat and light.

[Mr Richard Bacon (South Norfolk) (Con)]

Would not the best way to reduce the time taken to build new homes be to support my Housing Reform Bill? Since I have not yet persuaded the Minister for Housing of that, if I bring it back in the next Session with a few tweaks, will he undertake to take another look at it?

[Kit Malthouse]

Mr Speaker, it will not surprise you to know that I am in constant conversation with my hon. Friend about his various ideas for the housing market from self-build to the reforms he is outlining, and I hope to continue those conversations. He is a veritable cornucopia of thinking and policy ideas in this sphere, and they are to be welcomed.

Oral Answers to Questions

Richard Bacon Excerpts

Monday 10th December 2018 Commons Chamber

[James Brokenshire]

What we need to do is to get on and get things changed. Having a review in the way that the hon. Lady has suggested is about deferring things, so we want the industry to take steps to take action. Labour can talk in that way, but it is this Government who are intent on actually bringing about reform.

[Mr Richard Bacon (South Norfolk) (Con)]

The leasehold problem is an abiding scandal, and the Secretary of State does need to fix it. When he is reforming it will he consider being imaginative enough to copy the city of The Hague, which allows people on the housing register to go on to a register to get a serviced plot of land, which, if they cannot afford to buy it, they can lease at a peppercorn rent and then elect to buy later? If we are going to have reform, let us have imaginative reform.

[James Brokenshire]

I look forward to discussing that issue with my hon. Friend, because there is a sense of a need for change. Some of the abuses that we have seen are unacceptable. Although we have already put forward proposals to make that difference, I will certainly continue to talk to colleagues who may have some further imaginative thoughts.

Appointment of Sir Roger Scruton

Richard Bacon Excerpts

Monday 12th November 2018 Commons Chamber

[Mr Richard Bacon (South Norfolk) (Con)]

What are you talking about?

[Mr Speaker]

Order. Mr Bacon, you are normally a most civilised and urbane fellow. I cannot imagine what has got into you. I know that you know all about building and houses, and that you can dilate on those matters with great eloquence and at any length specified. We will hear from you ere long—

[Mr Bacon]

Excellent!

[Mr Speaker]

Of course it is excellent—excellent for you and, no doubt, excellent for the House, excellent for Norfolk and excellent for the nation—but in the meantime, you should exercise just a degree of patience, and entertain the possibility that someone might express a view, legitimately, that differs from your own.

--- Later in debate ---

[Mr Bacon]

Thank you very much indeed, Mr Speaker. It is a great fact that we live in a free country and speak in a free Parliament where we can say what we want, and it is only for that reason that I defend the right of the hon. Member for Denton and Reddish (Andrew Gwynne) to issue forth the crass and oafish comments that he did, which would be refuted quite easily by reading the books and articles of Sir Roger Scruton.

I congratulate my right hon. Friend on appointing Sir Roger Scruton. Does he agree that Sir Roger is eminently qualified to do this, and that it is about time we had somebody speaking up at the top for people who want to take notice of beauty in this country?

[James Brokenshire]

I profoundly do. The point is that, if we are to gain that consent and the support of the public on ensuring that we have communities that are built to last and that reflect a sense of community at their heart, it is right that we challenge and have this debate. I think that Sir Roger Scruton is uniquely placed to support that.

Oral Answers to Questions

Richard Bacon Excerpts

Monday 5th November 2018 Commons Chamber

[James Brokenshire]

The point that the hon. Lady makes is about the need to build more homes, which is precisely what we are doing as a Government. We are ensuring that housing associations are building more with the £9 billion fund, and by lifting the borrowing caps we are ensuring that councils can build more, along with what the private sector is doing. That way, people can have strong communities and the services that they need close at hand.

[Mr Richard Bacon (South Norfolk) (Con)]

Does the Secretary of State recognise that one of the best ways to bring forward more new homes quickly is to support my Housing Reform Bill, which has support from Members from all parties, including some of the House’s most distinguished Members? The Bill’s requirement on the Secretary of State to provide serviced plots for sale or for rent to rich people and poor people, social tenants and others, would do a lot to solve our housing crisis.

Oral Answers to Questions

Richard Bacon Excerpts

Monday 23rd July 2018 Commons Chamber

[The Minister for Housing (Kit Malthouse)]

I am hesitant to anticipate the release of the new planning framework that will be released, hopefully, shortly, but the hon. Lady will know that there is significant commitment by this Government to the green belt and, when that plan emerges, I will be more than happy to have a conversation with her about her plans.

[Mr Richard Bacon (South Norfolk) (Con)]

T5. Given that some planning inspectors’ reports are inadvertently undermining opportunities for people who want to build their own homes, despite new statutory obligations under the Self-Build and Custom House-Building Act 2015, will the Secretary of State ensure that inspectors pay sufficient regard to the legislation and enable the right to build taskforce to offer training so that inspectors are more familiar with the law in this new area?

[James Brokenshire]

I am very happy to look into the point that my hon. Friend has raised. I know that his commitment to self-build is second to none. We believe strongly in, and are committed to, self and custom house building, and I will certainly look into the issues that he has highlighted to the House today.

Housing and Homes

Richard Bacon Excerpts

Tuesday 15th May 2018 Commons Chamber

[John Healey]

I have less concern than the hon. Gentleman about that. I recommend that he read the Green Paper. The point of Labour’s proposal is to create almost a parallel market that is permanently affordable to local people who are in work and on ordinary incomes—the very people the Government are currently failing and to whom the housing market is closed. [Interruption.] I give way to the hon. Member for South Norfolk (Mr Bacon). No? I beg your pardon, Madam Deputy Speaker. Labour’s policy on home ownership is about first-buy homes, first dibs for local people in all new developments and tightly targeted Help to Buy. That is the real hope that first-time buyers need.

I promised to come back to the hon. Member for Hertford and Stortford (Mr Prisk) on private renters. Since 2010, the number of households renting privately has gone up by more than a third, and there are now 5 million households renting privately throughout the country. The one thing that we cannot do is see a further slide back to those bad old days around the time of the second world war, when we had private rented housing that was unregulated, overpriced and badly maintained, and it was the only default housing for people earning ordinary incomes. What is needed is very clear: it is Labour’s plan for legal minimum standards, longer tenancies, a cap on rent rises and local licensing to drive out the rogue landlords. They are similar consumer rights that we all expect and all have in other markets, but not in housing.

Finally, the tragedy and unforgiveable scandal of the rising levels of homelessness in this country, particularly of those sleeping rough in the streets, is that we know what works because we have done it before. We did it before when the country was faced with rising homelessness in the early 2000s. Our action as a Government then led the independent Crisis and Joseph Rowntree Foundation homelessness monitor to declare that, by 2009, we had in this country seen what it called an unprecedented decline in homelessness. We back the new Homelessness Reduction Act 2017—we pay tribute to the hon. Member for Harrow East (Bob Blackman) for steering it through—but we cannot help the homeless without more homes. I say to the Minister: go beyond the Housing First pilot; consider requiring housing associations to set aside, let us say, 8,000 of their homes across the country so that those with a history of rough sleeping have a low-cost, secure home in which to rebuild their lives; and then help to fund a replacement, like for like, of those homes.

[Mr Richard Bacon (South Norfolk) (Con)]

rose—

[John Healey]

I gave the hon. Gentleman the chance to speak earlier. I will conclude now, because many Members wish to speak.

In conclusion, this has been a disappointing first debate with the Secretary of State, who seems—[Interruption.] I listened very carefully, but saw no evidence that he is willing to challenge his own Government’s thinking or to make the radical changes required to fix the housing crisis. This is the test for the Secretary of State and for the Government. It is a big challenge to political thinking, not just to policy decisions. When the evident answer to the housing crisis lies in a bigger role for councils, stronger regulation of private markets, greater investment by Government in new low-cost homes, higher legal standards on everything from energy efficiency to safety, and tougher conditions on public contracts and public funding, it is clear that Conservative ideology, not just Conservative policy, must change. I say to the House that it is also clear from the Secretary of State’s speech this afternoon that the country will only see this change—the change that millions of people need and want—with Labour in government.

--- Later in debate ---

[John Penrose]

The hon. Gentleman leads me to my next point.

The current situation is the wrong way around. It should not be easier to buy land, do nothing, aim to get planning permission and then flip for a profit than it is to build houses. From a moral and an economic standpoint, design and construction should be the things that add value to land, not hope or speculation. Planning permission is a huge and value-creating decision. The decision is taken by each local community, so they should see some of the value that is created. We need a tax on the speculators’ profits, paid straight to local councils on the day that planning permission is given or changed, in order to fund the local services that turn dormitories into communities.

[Mr Bacon]

It is great to hear a radical speech. I hope that those on the Government Front Bench are listening carefully. Will my hon. Friend come to the next Right to Build expo, which is run by the Right to Build Task Force, and speak about lowering the barriers to entry so that more new players can come in? For example, governors of high schools or NHS trusts wanting to use housing as a recruitment and retention device should be able to get involved in this space.

[John Penrose]

I would be delighted to accept my hon. Friend’s invitation.

Fortunately we do not need a new tax, which the hon. Member for Stroud (Dr Drew) mentioned, to achieve this value acquisition. Here’s one we prepared earlier—the community infrastructure levy. The levy nearly does what we need and could easily be tweaked so that it does what we need by making it simpler and broader with fewer exemptions. It would be simpler, faster, cheaper and more predictable for developers, planners and landowners alike. Best of all, the revised community infrastructure levy would completely replace the hideously overcomplicated section 106 agreements, with all their uncertainty, unpredictability and lawyer-friendly viability assessments.

Finally, in order to get developers building faster, councils should be able to charge business rates and council tax starting from the day that planning permission is granted, rather than when developers finally get round to start building. We could give big developers a few months’ grace to get their crews on site, but then the meter would start running. They would have a huge incentive to build and sell promptly, rather than to take their time.

Equally important, the same forces would apply to the hedge funds that own derelict brownfield land in town and city centres. These sites already have old, unused permissions, so the clock would start ticking immediately. Just think of the enormous shot in the arm—the jolt of adrenaline—that we would give to urban regeneration projects everywhere, right across the country, if the owners could no longer sit on them for years waiting for something to turn up.

As the Government’s housing White Paper says, the only way to make homes more affordable to rent or buy is to build a whole lot more of them. I agree. There is no time to waste, otherwise house prices will continue to spiral and we will lock another generation out of the dream of a place of their own.

--- Later in debate ---

[Sir Robert Syms (Poole) (Con)]

We all know the importance of housing because we all hold surgeries and have families coming to see us, telling us their personal stories about the impact that the current housing market has on them. We need to build more homes. When I talk to people who develop and build homes, they still complain about the length of time it takes to go through the planning process. The Government really need to look at that.

We need to incentivise those who get planning permission to develop. I am not sure whether I would wholly agree with a penal tax system, but some kind of stick and carrot is needed to give people an incentive to get on and develop. When I drive around Poole, I see sites that have been sitting there for several years. One would think that if there were tax advantages to developing or tax penalties, at a modest level, that might just tip those sites into being developed.

We need to be more ambitious with our plans for helping young people to buy. The Help to Buy scheme is not ambitious enough, nor is the help to buy ISA. Bearing in mind the billions that we poured into the banks, it is a moral, social issue to do our best to get more people buying their own home, if it is right for them and they can afford it. We also need to understand that building is not the only solution. Managing the housing stock is very important. Local authorities talk about voids—these are empty properties—and we ought to be doing rather more to assist local authorities in making sure that the housing stock is being fully and efficiently used.

[Mr Bacon]

My hon. Friend mentioned the delays in the planning system, which still exist. He might be interested to know that when I visited the Netherlands in January, I was shown projects for which, because there is much greater planning certainty, planning consent is often given within two weeks.

[Sir Robert Syms]

That might be too efficient for the British system, given that everybody has to have their say. Nevertheless, I think we could do a lot better than we are doing.

There are a number of other areas in which we can do better, including managing the housing stock. I think there are something like 2 million empty flats over shops that are not being used by families. We all know about the major, substantial and probably permanent changes to the high street. We are over-shopped—many areas will never have shops, partly because of the impact of the internet. Perhaps the Government ought to be a bit more ambitious in turning some of those shops into homes. That would have the added win of bringing people back into our town centres and making them nicer places to live.

Our probate system is inefficient. At any one time, about 1 million homes are hung up in the probate system and cannot be sold because they are going through those legal processes. Why can we not look at the probate system to see whether we can clear houses through it before probate is granted or to try to just speed up the whole process? It is expensive enough as it is, and many homes cannot be used during that time.

In some parts of the country we are still demolishing homes, which cannot be a good thing to do. It is bad environmentally. Why do we not encourage more homesteading and give homes to people if they are willing to take them and do them up? These things can be done and they would increase the housing stock.

My final point is to do with private renting, which we all know has taken the strain over the past 10 to 15 years. We also know that many leases are for only 12 months. For peripatetic, young, single professionals, that is not a problem, but if people are married with two kids in a local school and they work locally, it is a problem, because first, there is the uncertainty each year about whether they can stay where they are; and secondly, quite often, for a variety of reasons—perhaps because the landlord wishes to sell or to put the rent up—families are forced to move. We should not forget that when families move, there is a very high cost. That includes the removal van and sometimes the cost of getting new bits and pieces, and so on. If a family with a child doing GCSEs has to move three or four times, it is not good for that child always to be moving into different homes.

If we are going to give security to people, it is right that we should give security to people who can buy. The social housing sector generally gives security to people, and of course we need to build more council homes, but we also need to give more security to those in the private rented sector. Somehow the Government, perhaps through tax incentives or capital gains incentives, ought to try to ensure that leases of three years or five years are available to families. That would take some of the pressure off families with children, who would feel much more content with their lot. Many of the 1.9 million people renting in London cannot afford to buy, so this is a big market, and a politically sensitive market: if people do not feel they have a stake in the country, and if they feel unsettled, they may well take it out on the party in government at the ballot box.

We need to be more creative and forceful in building homes, we need a better planning system, we need to manage our housing stock better and we need to address the glitches in the market so that we can increase the number of homes available. Ultimately, however, we also need to remember those who can only rent and have no choice but to go to the private rented sector. They need rather more help from the Government than they are getting at the moment.

--- Later in debate ---

[Bob Blackman (Harrow East) (Con)]

It is a pleasure to follow the hon. Member for Oxford East (Anneliese Dodds), who made a considered contribution to the debate. I thank Members from across the House for their appreciation for my Homelessness Reduction Act 2017, which has as its centre the aim of reducing the number of people becoming homeless in the first place. Prevention is clearly better than cure, but we have to face up to the fact that, although we can attempt to intervene and to prevent people from becoming homeless, we have to build more homes across the piece that are affordable for people to rent and to buy. That means we have to be radical in our thoughts. The Secretary of State set out a range of things that can be done, but we know that some things need to be done straightaway. He rightly mentioned the Housing First pilots, which I strongly support. However, there are only three pilots, in three parts of the country, whereas this is a nationwide problem. So when my hon. Friend the Minister for Housing answers this debate, I look forward to hearing him say how quickly we will roll out the lessons from the pilots right across the country, so that rough sleepers in other parts of the country can gain the benefit of Housing First, because that is key.

One challenge we face is the unaffordability of housing. One point I lobbied strongly for in the last Budget, and which, I am pleased to say, the Chancellor acceded to, was funding for a national rental deposit scheme and help-to-rent projects. We are yet to hear from the Department as to the various different options that will be rolled out on that. Helping people to rent and providing the deposit would enable 30,000 families to secure their own home, because the one thing they cannot do is raise the deposit to start paying the rent and have a home of their own. We need to be in a position whereby we encourage that process.

Across the piece we are paying out £1.7 billion a year to fund temporary accommodation in this country, and people are in temporary accommodation literally for years—that cannot be acceptable.

We see the price of housing to buy escalating and rents escalating, too. We have to be radical in our thought processes as to how we deal with that. One of the biggest issues is the price of land in the first place. The cheapest land is agricultural land. Speculators move in and get options on that land. When planning permission is granted for alternative uses, the price of that land suddenly escalates. Those people then sell the land on and make money on those options. That cannot be acceptable. We see other challenges in retail or commercial land being transferred to the housing usage class, and there suddenly being a dramatic increase in the land value.

We have to take the land value out of the price of housing in the first place, to reduce the cost of people owning their own homes or, indeed, renting a home. At the same time, we force local authorities to sell their land to the highest bidder, and when they do so, the price of the housing built on that land comes back in the form of a huge housing benefit bill when people rent that housing. We have to close the gap and take the value of the land out of the equation completely.

Older people are now going to be renting well into their retirement—

[Mr Bacon]

Given that housing benefit, which my hon. Friend just mentioned, takes up 3% of public expenditure and costs some £26 billion every year—it has cost £363 billion, more than a third of trillion, in the past 20 years—would he like to see more of that money going into the creation of new dwellings for ordinary people at prices they can afford, rather than enriching more private landlords?

[Bob Blackman]

Yes; my hon. Friend anticipates where I was going. We should tell local authorities, and all other public sector bodies, to gain planning permission for homes to be built on their properties. Instead of paying out huge amounts of housing benefit, we should compensate the public bodies directly from the Treasury for the value of that land, which can then be used for public services. We should then ensure that the rents and prices in the properties built are commensurate with the cost of building those properties, over an extended period of time. Once people have been tenants for 10 years, we should give them the right to buy those properties at the price they were 10 years prior, and then reinvest that money into further new housing. I am a great supporter of the right to buy, but one challenge that we face with it is that we need to invest its proceeds in building new housing.

Those are some of the radical solutions; I cannot do them justice in four minutes, but I hope that we can get some answers from my hon. Friend the Minister for Housing. Finally, may I draw the House’s attention to my entry in the Register of Members’ Financial Interests?

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

It is a delight to follow the hon. Member for Harrow East (Bob Blackman), who had many very good ideas, but we have to talk about the green belt in London. There is enough land to build a million homes that are 10 minutes from tube and train stations and an hour’s journey away.

What is the green belt? What is the land that I am talking about? Is it nice, pleasant and green—somewhere we would wish to spend the day with our families? No. I spent my bank holiday going around and looking at some of these sites. I started over in Hillingdon, where I saw an illegal waste tip and stood on 20 feet of rubble that could be land on which we could build 3,500 new homes. I went along the A40 to Ealing, where I saw, close to a mosque, two schools and a train station, a site covered with building rubble and surrounded by chain-link fencing. I then went to the pièce de résistance: a tyre-changing shop and car-valeting service at Tottenham Hale, where a housing association had had its application for housing turned down because it was green belt.

At some point, we have to stop being frightened of the title and inspect what land makes up this designation. I do not want to build on a park that children use, or on rolling green fields that people enjoy on their bank holidays, but I do want to build on scrappy bits of land that nobody in their right mind would choose to regard as green belt.

[Mr Bacon]

Well said. Carry on.

[Siobhain McDonagh]

I would love to, but I do not want to stop anyone from speaking.

I ask hon. Members from all parties to support my early-day motion on this issue and to support the contribution that we have made to the consultation on the national planning policy framework, which has Members from both sides of this House, academics, housing associations and businesses saying, “Yes, stop it. Please look at the green belt.” We cannot keep talking about building more homes unless we have the means and the land to provide them, and we do, if only we all got a backbone and started looking at what we call the green belt.

Oral Answers to Questions

Richard Bacon Excerpts

Monday 30th April 2018 Commons Chamber

[Dominic Raab]

The No. 1 way to improve the affordability of homes is to increase the supply, which is why our agenda is to get the number of new homes built per year up to 300,000. I looked at the Labour party’s Green Paper and it seems to suggest going back in the overall number of homes delivered each year. As the Secretary of State has already said, we have delivered more affordable homes in the past seven years than were delivered in the last seven years of the previous Labour Government.

[Mr Richard Bacon (South Norfolk) (Con)]

Will the Minister meet me and other members of the Right to Build Expert Task Force—one member is one of his own civil servants—so that we can brief him on the great work it is doing in increasing housing numbers and improving quality and customer choice?

[Dominic Raab]

I thank my hon. Friend for his question. We are keen to see diversity in the housing market. It will be one of the key drivers for building more homes and getting more affordable homes, and I will be happy to meet him in due course.

Housing, Planning and the Green Belt

Richard Bacon Excerpts

Tuesday 6th February 2018 Commons Chamber

[Justin Madders]

That is an interesting point. Over recent years, the number of developers has contracted. The sums involved and the years of advance planning needed to build some of these developments tend to favour the bigger builders. I am not sure how we would go about achieving that, but it needs to be looked at.

The Communities and Local Government Committee should also consider this issue because developers—big and small—must explain how their duping of customers was allowed to start in the first place, how much profit they have made from this scam, who drew up the leases that nobody will now sign, how many properties were made leasehold needlessly, what role lenders and solicitors played in allowing through leases that nobody will now sign, and exactly who the beneficiaries of these leases are? Until we know the answers to these questions, we cannot be sure that the new homes we need will by owned with no strings attached by the people who buy them.

I want to say a few words about enforcement, because the rules of the planning system have value only if they can be effectively enforced. The significant funding cuts that local authorities have experienced in recent years are bound to have had an impact on the number and extent of enforcement activities that a council can undertake.

The classic example is the Mostyn House development in Parkgate in my constituency. Originally, the site was a boarding school in a listed building, but once the school ceased, the site was certainly an attractive one for developers to consider—and so they did. The site is now an impressive mix of new builds and apartments woven into the fabric of the old school, but it suffers from one major disadvantage. Despite some people having lived there for over four years, there is still no planning permission in place.

The reason for that is that revised plans were submitted halfway through the redevelopment, and despite the best efforts of the local authority enforcement officers, the developer, P. J. Livesey, constantly drags its heels, with the result that there is a list of outstanding works as long as your arm. From what I understand, the developer has a similar patchy record elsewhere in the country, but it seems to be able to get away with it, because there just is no capacity to follow through enforcement consistently.

As Mostyn House is a listed building, it is a pretty technical job to keep on top of it all. Fortunately, however, some of the residents have a surveying background, so they have been meticulous in logging the issues. Despite that, P. J. Livesey has still not met the required standards, and I wonder where we would be if we did not have such proactive and knowledgeable residents.

What about bringing roads up to an acceptable standard, so that they can be adopted by a local authority? There is an estate in my constituency that people started moving into almost a decade ago, and the developer—in this case, Bellway—still has not done the necessary works that would enable the local authority to adopt the roads. I do not blame the local authority. It has set out what needs to be done, but it does not have the resources or the time to constantly chase the developer, which has now sold the homes and moved on. What is the incentive for the developer to go back and complete the work it should have done?

I am pleased to say that, after many years of stagnation, there is a significant amount of house building in my constituency, particularly on brownfield sites, but very little of that housing is affordable. That is because the permissions were all granted some time ago, and the developers used the coalition Government’s rules on viability assessments to argue that it was not cost-effective for them to keep to their affordable housing obligations on individual sites. They plead poverty as they tell us that the requirement to build affordable homes means they cannot maintain their 20% profit margins.

As a result, no affordable housing is currently being built on just about every development site. Most developers sought release from their obligations three or four years ago, and many have only started building in the past six to 12 months, so it is quite clear that the affordable housing requirements were not stopping developments from proceeding. There is more than a suspicion that developers have played the system to maximise profit and had no intention of proceeding with their buildings previously. We have had empty sites for three or four years longer than needed, and an opportunity to build much-needed affordable housing has been lost.

[Mr Richard Bacon (South Norfolk) (Con)]

It should come as no surprise to anyone that private sector house builders build when—and only when—it is sufficiently profitable to do so. That ought to be an axiom, and I am sure the hon. Gentleman agrees with that. Does he therefore agree that part of the solution ought to be to provide a much wider range of genuine choice to potential consumers—people who want somewhere to live in the affordable space and homeless people, as well as those in the purchasing market—so that private sector developers cannot exercise an oligopoly, as they currently do?

[Justin Madders]

That is an interesting point. At the moment, developers will build at the time that suits them best and will build the types of property that suit them best, but that is not necessarily what suits the demand best. That is something I hear regularly in my surgery, and it is probably still the No. 1 issue raised there. I am pleased that my local authority, Cheshire West and Chester Council, is now building some council housing, because there is huge demand for it in my constituency. This is the first it has built for nearly 40 years, although, unfortunately, that has taken the borrowing limits under the housing revenue account to the limit, so we need that cap to be lifted.

Most disappointingly, once those properties are built, we will still have less council housing in my constituency than we did a couple of years ago. That is due to the huge increase in right to buy applications in recent times—who can blame people for taking advantage of 70% discounts?—but that policy is short term in the extreme. It is the Government’s stated aim that every council property sold under right to buy should be replaced, but the reality is that that one-for-one replacement is actually running at a rate of about one replacement for every five properties sold.

Is there any wonder? Recently, a three-bedroom semi in my constituency was sold under right to buy for £27,000, and do not forget that the council will get only a third of that money to replace the house it has just lost. The average cost of a semi-detached house in my constituency is about £148,000, so Members can do the maths and see that this policy is completely unrealistic and needs to be changed.

To conclude—a number of Members have talked along these lines today—I would like much greater political direction and oversight over the house building industry. After all, those involved are the people who will build the homes that we all need. At the moment, they quite understandably organise their affairs to maximise their profits, but housing is part of our infrastructure and a roof over our head is a fundamental right. We cannot just rely on the market unfettered to deliver that.