Oral Answers to Questions

Debate between Alex Cunningham and Esther McVey

Monday 13th January 2020 Commons Chamber

[Esther McVey]

We will look closely at anybody who is frustrating people’s dream and desire to own their own home. We will continue with the right to buy. We will look at how those receipts are being used, so that we can maximise the new homes being built. Under Labour, 170 right-to-buy receipts bought one new home. Now, we are getting more homes built through the right to buy, and having sold 119,000 homes, we have built 140,000 more.

[Alex Cunningham (Stockton North) (Lab)]

The Conservatives’ deep cuts to new council and social housing are part of the reason why homelessness has risen so rapidly over the last 10 years. Every day, hundreds of us see the increasing number of homeless people and their belongings in Westminster station and outside this building, but their plight is the same as that of thousands of others across the country who find themselves trying to find somewhere dry and safe to sleep. Does the Minister accept that, if the Tories had simply continued building social rented homes at the level left by Labour, there would now be 200,000 more social rented homes for those who need them, including those who are homeless on Parliament’s doorstep?

[Esther McVey]

What we all know is that, for a long period, demand has outstripped supply. That is why this Government are building more homes, with more homes built in the last year than in the last 30 years. We have delivered 1.5 million more homes since 2010, and we will continue to do that. Of course, we have also brought in initiatives for rough sleeping and homeless people. We have to be fully aware of that, and this Conservative Government are doing a lot more to help those people.

Building Out Extant Planning Permissions

Debate between Alex Cunningham and Esther McVey

Wednesday 30th October 2019 Westminster Hall

[Ms McVey]

The right hon. Lady is spot on; people do want to be given the opportunity to buy their home. She is also correct that we need to build more homes, to continue that cycle—to enable people to get on the housing ladder at whatever stage in life it is plausible for them to do so. I say that as someone who has been in every type of tenure.

I remember only too well the opportunity afforded to people who bought their own home in the 1980s and earlier. It worked as well for local councils and the Government as it did for the individual because at that time, when council homes were not necessarily being kept in the condition that they should have been, a person living in a council home could take over the property to maintain it, and bought it at a price that worked for them and for Government; and they then had a home.

As the right hon. Lady said, we need to keep that cycle going so that there are more homes coming forward, and that is what we must continue to do. So many people have said, and continue to say, that the opportunity afford through the right to buy fundamentally changed not only their lives, but those of their children.

[Alex Cunningham]

The Minister will be as aware as I am of the vast number of homes sold under the right to buy that have ended up in the private rented sector because people have sold them and moved on. Many of those people have ended up back in the rental sector, so vast numbers have not really benefited from the right to buy. The important thing is to have more homes, but the Government have failed over many years to provide new homes for each one that they have sold.

[Ms McVey]

There are many life stories, and the hon. Gentleman may well be right that sometimes, for whatever reason, people might not have stayed in the home that they bought. People do not know what will happen in their life’s journey. However, for the vast bulk of people who took the opportunity, buying their home was transformational: it meant the security of having the home that they wanted and of being on the housing ladder. Opportunities are what the Government can give people, and we will continue to offer them to others because our party believes in social mobility as well as self-empowerment. That is key.

[Ms McVey]

The right hon. Lady is quite right. So many people have said what a support the right to buy was. That is key for the Conservative party: how do we help people to achieve what they aim for in life, whether that is a home or a business?

When we talk about the number of homes coming forward, we all agree that there have been many decades of not building enough; demand has outstripped supply for many years. In the past year, however, more than 220,000 homes have been built—more than in all but one of the past 31 years. We need to do more, and more is being done—but a significant amount has been done already. We are going in the right direction. The Government are putting another £44 billion into home building.

[Alex Cunningham]

It is good that more homes are being built, but does the Minister acknowledge that the Government have failed to meet their own targets almost every year?

[Ms McVey]

What I will say is that we are still on the way to our target of building up to 300,000 homes a year by the mid-2020s. We have been building more; as I said clearly, we built more homes this year than in all but one of the last 31 years. That is key.

We have helped people in various ways. Some 560,000 people have benefited from our Help to Buy scheme, and we are helping 310,000 first-time buyers. We have the highest number of first-time buyers in a decade, and there was an increase of 84% between 2010 and 2018, so we are helping people to get on the housing ladder. Local authority waiting lists went down by about 40% in that time. We are helping people across the board, whether they are on housing waiting lists or whether they want to buy homes, but I agree that there is more to do.

[Alex Cunningham]

The Minister’s statistics may sound impressive, but does she share my concerns? I live at Chelsea Bridge Wharf when I am in London, and each night I pass all the huge new developments and properties that have been built. Although they have been there for several years, most of the lights are off all night. The properties that the Government boast have been built are not occupied, but owned by overseas developers and others who just want them for their value. That does nothing to put people into properties.

[Ms McVey]

I cannot agree. I am giving the hon. Gentleman figures that show that waiting lists have come down by 40%, that we have the highest number of first-time buyers in a decade, and that we are supporting people into homes, so I cannot agree with what he says.

We all want sustainable development. We want homes that are fit for the future and future-proof. The hon. Gentleman mentioned that in Sheffield I talked about the fact that the Government are setting up a centre of excellence across the north. Our vision is that the north will be the centre for engineering and modern methods of construction. We will be building homes for people to live in, so the UK can be a global leader in modern methods of construction and in safe homes, technological homes, green homes, modern homes and beautiful homes. That is our goal and ambition; if we achieve it, a mature market will be worth £40 billion a year to this country. That industry will be led from the north, as it needs to be. We selected the north because of the vision that it already has. We need to capitalise on the arc that stretches from Liverpool right across to Sheffield. I am glad that the hon. Gentleman shares my vision and view of the opportunities.

On sustainable developments and homes for the future, the Government are paving the way for a green revolution with eco-friendly and affordable homes. We are looking in the round at how to have homes with considerably reduced heating costs, so that they are affordable in every way, but also good for the environment. We need homes that give the people in them value for money, that are good for the environment and that reduce carbon emissions.

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[Ms McVey]

That is exactly what we have to do: open up the whole building sector and industry. We continue to have traditionally made homes—the latest figures from 2015 show that 90% are built in that way—but a new market is emerging. The modern methods of construction and different materials that the right hon. Lady refers to are being used in 10% of homes, or about 15,000. How do we develop and expand that industry to give people a choice of where to live?

Some of these homes can be built off-site, using modern methods, in a couple of weeks, and can then be put on-site in a couple of days. That stops the disruption for everyone living close by, which stops some of the opposition to planning permissions and building out, because it is very considerate to everybody living close by. That is key, and it is exactly what we are doing.

The companies coming forward in this area include Urban Splash, up in Manchester, which is engaging in a joint venture with a Japanese company, Sekisui, that is coming over to England. In Speke in Liverpool, there is a new, emerging company called Ideal Modular Homes, and in Yorkshire there is Ilke Homes. This new development is happening, and these new products are coming forward. The Government are getting behind that, and supporting these new and emerging industries, because that is the future of housing in this country. However, housing is all about choice, and that is what we will always push; we will not only back industry, business and creativity but ensure that houses are built and delivered to local neighbourhoods in a considerate way.

[Alex Cunningham]

It is great that we agree on so much across Parliament as far as housing development is concerned, particularly on the greenhousing issue. I have met developers recently, and I keep pressing them on ground source heat pumps, air source heat pumps, solar and everything else, asking them why on earth are they not starting to adopt these new technologies. They tell me that it is because the market is immature, and they cannot get the quality of product that they require, and even if the quality of product was there, they could not get it in the quantity that they require. The Minister talks about encouraging the development of these industries, but what will the Government do to encourage that development, so that these industries have the supply chains that they require?

[Ms McVey]

There is an element of the developments having to be done at a scale that then brings down cost and adds to affordability. That is what we are addressing through schemes such as the home building fund, through which we are putting £2.5 billion into the sector and providing innovative ways for small and medium-sized enterprises to come forward. We are backing up what we are talking about with significant support from Government.

The right hon. Member for Guildford and the right hon. Member for Romsey and Southampton North talked about brownfield sites. They are key, especially when we consider that possibly 1 million homes could be built on them across the country. Once again, through the home building fund, the Government are putting more than £2 billion into supporting work on brownfield land that is coming forward, which is key.

I go on visits around the country, looking at what is happening with housing. I went to Northstowe, the biggest complete new town since the 1950s. It was built on public brownfield land. We have to make sure that there is a steady supply of brownfield land coming forward, and we must provide support to make sure that people do the remediation work on that land and build on it. They must not only start building on that land, but continue that building until completion.

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[Ms McVey]

That is where the accelerated planning Green Paper will come in, because it will provide the blueprint to overhaul the planning system to create a simpler, fairer system that works for everyone, from homeowners to small and medium-sized businesses, local communities and housing developers. It will also ensure that people who want to build for themselves have the right to do so.

[Alex Cunningham]

Does the Minister see an opportunity for retrospective powers to be granted to local authorities to tackle the specific problems outlined by the right hon. Member for Guildford?

[Ms McVey]

I am not sure about retrospective powers. We would have to look at their impact, but we could certainly go forward with what we see we need to do.

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[Ms McVey]

I will take that away and look into the scheme to see where it is and I will write to the right hon. Lady with an answer. The HIF is all about unlocking developments and finding the extra funds needed for the infrastructure for a site. As she says, it will unlock 1,000 homes in her area. That is why the money was put aside. It is 1,000 homes in her area, but 650,000 across the country. So far we have not delivered on that, but we have to make sure that we get value for money and that homes are built out in a speedy and safe way. I will write to her on that matter and see where her HIF bid is.

[Alex Cunningham]

It looks as though the Minister is moving towards the idea that we should have retrospective powers for local authorities to ensure that the sites are actually built out. Perhaps we could find a way to compel them to work in partnership with other organisations, such as housing associations, in order to allow them to develop a site if the developers are not prepared to get on with it.

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[Ms McVey]

We are supporting housing in all different ways in order to get the homes we need. As I said, we have done a considerable job so far. How do we work with people? We are not statist like the Labour party, which might tell people what to do. We understand that we have to work with the local community, local councils and developers to get the best outcomes for the local area. We do it through consensus, understanding what is needed and providing support. The Government set up the housing infrastructure fund to do just that. We ask where the pinch points are, where the difficulties in developing something out are, and then we ensure that it works successfully. But how do we build on that and analyse what works to take it further?

[Alex Cunningham]

We have heard examples this morning of sites sitting totally empty for donkeys’ years with nothing happening. People have tried to work with developers in the examples that we have given, but nothing has happened. Surely, eventually, you have to remove the carrot and apply the stick.

[Ms McVey]

This Government have helped support the building of more homes in the past year than all but one of the past 30 years, so I do not want the hon. Gentleman to paint an untrue picture of what is happening across the country. If we drive across the country, we see significant home building. When I talk about the biggest ever complete new town in Northstowe, with 10,000 homes being built on brownfield public land, we can see it happening. Sites are being built out, working with the local community, and that is what we need to do. Do we need to do more? Yes, and I think we can all agree on that.

How do we make sure that brownfield sites or sites that have planning permission come to fruition and get built? We have been doing that all across the country. I have travelled to Gosport to look at a new significant size building there, partnering with Homes England. I have looked at what is happening in Cambridgeshire and Northstowe. I am looking at a new development in Manchester and bringing back into play what I call unloved land, or we are renovating old buildings. That is exactly what we are doing, but each part of the country wants, and requires, a different type and style of home. We must have solutions for all of them, to ensure that we keep to the character of different areas.

The Government also want to bring back many small and medium-sized businesses. A third were lost in the financial crash of 2007-08. How do we stimulate the marketplace and ensure that we bring those builders back into it, so that the big builders do not dominate? That is key, because we are the party of small businesses, and of innovation and aspiration. We can bring those elements back in by working with our strategic partner, Homes England, which has increased in size considerably and is stretching out across the country. We are looking at how we can subdivide land to bring in new developers, so that they too can get building. Equally, if those developers are from the local area, the local area benefits too, in terms of jobs, the survival of businesses, and understanding the character of an area.

Another key point is how to get the skills and the labour force. That involves working through the industrial strategy, and working with the Department for Education to ensure that we will have a workforce that can build the homes that are needed. We are doing significant work and putting significant funding behind that too.

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[Ms McVey]

The right hon. Lady is correct. I have meetings all the time to discuss that, as I did when I was Secretary of State for Work and Pensions, when I was constantly working on how to support various sectors. She will be pleased to know that the Government have got 3.5 million more people into work—a thousand more people every day since 2010. There are also millions more in apprenticeships, so we have looked at the full flow-through of how we support people.

European citizens who are here, working with us, will remain here. We support them and thank them for the work they have done. Looking forward, how can we ensure that our workforce is homegrown as well as including those we need for the time being? The right hon. Lady is correct to mention those issues, but I have not just thought about them today; I have been working on them for nine years. That is why our country has such robust employment figures. However, she is right to mention those concerns.

[Alex Cunningham]

Unemployment in the north-east is up by 15,000 in the last year, which just shows the imbalance in Government investment. The Minister managed to answer a previous intervention that I had planned before I could make it, but I am interested in what she said about how much we can agree on regarding bringing small builders back into the industry. We have heard about other sites this morning. There are sites across the country that are not being built out, so surely there is an opportunity for small builders to work in partnership with larger companies. Alternatively, larger companies could release the parts of those sites that they are not prepared to develop, in order to let small builders enter the market, build homes and satisfy the housing crisis.

[Ms McVey]

The hon. Gentleman knows that I will not let an unfair representation of what is happening in employment go unchecked. We are at record low unemployment in this country, and at record high employment. The Government have brought down youth unemployment by 50%—under the previous Labour Government it sky-rocketed. We are the ones who ensure that people are in employment and have the careers they want, as well as opportunities for their future, and we will continue to do so.

It has been hard work for the Government to turn around the economy and get people into employment. That is the truth, and it has to be on record. I am particularly pleased that the Government have reduced youth unemployment by 50%. When we started in 2010, meeting young people who thought that they might never get a job was shameful, yet we have turned that around, ensuring that there are opportunities for everyone in this country.

With regard to ensuring that people work together, including big companies giving work to smaller companies, people do that on site anyway, ensuring that small, local companies work on site. That needs to be pushed even further. We are working with our strategic partner, Homes England, to ensure not just that there is a single big developer, but that the land is subdivided so that small and medium-sized enterprises can come forward. I am also working closely with Homes England on ensuring that smaller sites are given to SMEs to build on first.

We agree that it is key that local people benefit from the house building that is needed, not only through places to live, but through jobs. Some 300,000 homes will have to be built every year from the mid-2020s. Look at the size of the opportunities, and at the workforce that needs to be created. They will be very good jobs with very good career prospects. That needs to be planned for, which goes back to the question the right hon. Member for Romsey and Southampton North asked about the workforce. Significant planning needs to go into that, which has been done and continues to be done. Again, that is why we are looking at modern methods, so that we can cater for a highly skilled workforce.

I think that we are coming to the end of the debate. We have covered an array of issues. I will take various matters back and will write to the right hon. Member for Guildford, particularly on the HIF fund that she is working for. However, I want people to be reassured that we are building more homes, and we will continue to do so. We have incentives and support to ensure that people are building on brownfield sites, and where they are not, we will look at what levers we can pull to make sure that people build out those sites, whether using carrots or sticks. I will take that question back and consider it. We are also talking about how we make the planning process easier, making sure that we are working with local communities.

I will give the final word to the right hon. Member for Guildford.

British House Building Industry

Debate between Alex Cunningham and Esther McVey

Thursday 5th September 2019 Commons Chamber

[Ms McVey]

We are and will be building more affordable homes. We have put in a significant amount—billions of pounds—for affordable homes and have also removed the cap so councils are able to build homes, too. That is what we have to do. We are a party that believes in choice. I come from a council house. I believed in the right to buy in the 1980s to make sure people could be in charge of their own homes. Homes were not being repaired properly. People bought them and looked after them. Now we have to make sure we build more homes, so there is a virtuous cycle and there are more homes. We are a nation that believes in home ownership. We need to enable people to have their own homes. We know that 80% of people want their own homes. What are we doing? We want to offer an array of choice and support. As my hon. Friend the Member for South Norfolk said, this is also about the ability of individuals to build their own homes.

[Alex Cunningham]

Home ownership under the Tories in the past nine years has dropped from 67% to 64%. How is the Minister going to put that right?

[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.