3. Whether the Government plan to revise their definition of affordable housing.
The Government have a strong track record on delivering affordable housing. We want to go further and to expand the definition of affordable housing so that we can deliver starter homes for young people who want to buy their own home.
How will the Government policy to subsidise starter homes address the affordable housing crisis for low and middle-income earners—cleaners, social workers, teachers, middle managers, nurses—given that it is estimated that, in London, one needs a household income of £97,000 and a deposit of £20,000 to afford an average starter home?
I draw the hon. Lady’s attention to the comments of my right hon. Friend the Secretary of State a few moments ago. In this country, first-time buyers pay £181,000 on average for a new home, so, with a 20% discount and a 5% deposit, her figures do not quite add up. Given that 86% of our population want the chance to own their own home and that first-time buyers are the generation worst hit by Labour’s recession in terms of housing, I am proud that we have doubled the number of first-time buyers. We want to deliver 1 million during this Parliament, and the starter homes initiative is just part of the solution.
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As ever, my hon. Friend makes a hugely important point. I, too, am baffled as to why any Opposition Member would want to disagree with the housing associations, with their tenants, with the people of this country, who gave us a mandate to deliver this policy, and with the 86% of people who want the opportunity to own their own home. This approach will send housing supply up—he is absolutely right about that. A key point is that for every home sold this will mean at least one extra home being built. That increases housing supply. It is simple mathematics.
The hon. Member for Wellingborough (Mr Bone) said that the people who will buy their home will live in their home, but the evidence from the council housing right to buy shows that not to be the case, certainly not in London. What assessment has he made of how many of the homes to be sold under this policy are likely to become private rental properties—often at high rent and let to people in housing need who have no hope of owning their own home?
When a home is sold under the current right-to-buy scheme, there are restrictions on what people can do for a period of time, and that will continue in the extended scheme. Ultimately, many years down the line, I absolutely defend the right of any homeowner to do with their home what any other homeowner can do, be it selling it or living in it, but there are protections for the first few years after purchase.
(9 years, 4 months ago)
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I will not give way at the moment.
A Help to Buy ISA will help those saving for a deposit to have a better chance of owning their own home. The Help to Buy schemes have already supported a total of 210,000 households since 2010 with the measures we have taken. We intend to go further. We will do more to help people reach that aspiration of owning their own home. We will work to deliver that for 1.3 million housing association tenants, supporting their desire to own their own home and making sure that at the same time we are boosting the housing supply in this country.[Official Report, 7 September 2015, Vol. 599, c. 1-2MC.]
Hon. Members mentioned private sector rates in England as a whole, which have been rising at less than inflation during recent years. We need to make sure that good standards are met, and we are taking steps to improve quality and choice in the sector. That is why we have established a fund to deliver a further 10,000 new homes. We will continue to improve the sector’s professionalism and to make it even more attractive to investors, to deliver more homes. We have taken action to tackle bad landlords so that they either improve or, preferably, leave the sector. That is why I support what the Mayor of London is doing with the London rental standard. We have published the “How to rent” guide and the “Renting a safe home” guide to help tenants better to understand their rights and responsibilities.
Opposition Members have talked about different forms of rent control and tried to argue that they are not rent control as any of us see it. If it looks like rent control and it smells like rent control, as the electorate made clear in the general election this year it is rent control—something that the Labour shadow Secretary of State has already said does not work and will not work. Experiences elsewhere have proven that, and we will not do it.
We are also facilitating new ways of regenerating inner-city estates, as we have seen at City Mills in Hackney. We are looking to kick-start more work to deliver more homes. We believe that we can deliver more homes on brownfield land without adopting the plan of the right hon. Member for Tottenham (Mr Lammy) to build across our treasured green belt. We expect to bring more than 134,000 more homes up to the decent homes standard, including around 55,000 homes in London alone. We will be investing a further £160 million to ensure that by April 2016, no more 10% of stock in each local authority does not meet that standard, and £145 million has been allocated to London.
We have, as hon. Members have pointed out, brought forward permitted development rights to get better use of existing buildings, particularly unused office space. There have been 25,700 permissions for home extensions and office-to-residential conversions to date.