Housing Need (Treasury Assistance)

Debate between Andrew George and Priti Patel

Wednesday 17th December 2014 Westminster Hall

[The Exchequer Secretary to the Treasury (Priti Patel)]

It is a pleasure to serve under your chairmanship for the second debate this morning, Mr Sanders. I congratulate the hon. Member for St Ives (Andrew George) on securing the debate. He recognised the importance and significance of housing need and housing pressure, while acknowledging the work that the Government have done in the area. Hon. Members come up against many pressures and concerns in their constituencies regarding the affordability of home ownership. There is no doubt that that has been a challenge for the Government. We are addressing the need and introducing schemes through which we can do something about it, and we are engaging with and listening to communities around the country, and with hon. Members such as the hon. Gentleman, on solutions.

The Government are absolutely committed to making the aspiration of home ownership a reality for as many households as possible. Across the country, there is a problem with demand for housing, which has consistently outstripped supply. It was interesting to hear the hon. Gentleman mention that, in his constituency, the demand for second homes is outstripping supply, which is changing the marketplace and having an impact on the ability of first-time home buyers to get on the housing ladder. It is our role as a Government to do what we can to help households that are struggling to get on the housing ladder.

The rate of home ownership in the United Kingdom has fallen from its 2003 peak of 70% to about 65%. We are committed to ensuring that future generations get to experience the benefits of owning their own home in the same way as their parents’ generation did, which is why we have taken clear steps to increase housing supply, build more affordable housing and help people to afford a home without relying on parents and other family members for financial support. The hon. Gentleman has spoken about the reform of planning laws to unlock more housing supply, and that is exactly what the Government are doing. The autumn statement package contained specific commitments to release land with a capacity of up to 150,000 homes, and to introduce new measures to support up to 133,000 new homes, including affordable homes. Affordable homes are the key to this debate. The hon. Member for Ceredigion (Mr Williams) mentioned key workers in his intervention, and they are important. It is incumbent on the Government to ensure that we address key workers’ need when it comes to affordable homes and changes to planning. Key workers support our front-line public services, and it is essential that we have the right kind of housing support for them.

Our policies are bearing fruit. Planning approvals and housing starts are at the highest level for six years. Construction activity, as we see across the country, is really gathering pace and has expanded at the fastest rate for 10 years. We have the national infrastructure plan, which is incredibly important to support housing demand. That contains further measures this year for specific new developments to transform communities through housing in Bicester, Ebbsfleet and Northstowe in Cambridgeshire. Alongside that, billions of pounds of public money—some £4.5 billion during this spending review and more than £5 billion to 2020—is being invested in providing new affordable homes. Almost 217,000 new homes have been delivered by the Government since April 2010, and a further 275,000 will be provided in the five years from April 2015 to 2020. Again, it is about delivering affordable homes in this and the next Parliament.

Under the previous Government, there was a net reduction in social rented homes from 1997 to 2010. That is why, as the hon. Member for St Ives rightly highlighted, we are helping housing associations to access funding. In the 2012 housing package, we introduced a £10 billion housing debt guarantee, which enabled private organisations to access cheaper debt funding to deliver homes for private and affordable rent. We also announced up to £3.5 billion for affordable housing. Our delivery partner, Affordable Housing Finance, issued its first bond to raise funding under the new scheme in May, which was priced at 3.76%—the lowest-priced bond in the history of the affordable housing sector. More than £1 billion of debt has now been guaranteed.

Last week, the Government announced that we have awarded the licence for the private rented sector housing guarantee scheme, which will help create a new market for institutional investment in the private rented sector. All those things help support the Government’s aim of expanding the provision of rented housing, which will help the wider economy by delivering an economic boost and increasing choice. It will also improve housing quality for tenants. Although I do not have time to speak about improving housing stock, it is a key issue for tenants in affordable homes.

We remain committed to establishing shared ownership as a route to home ownership and making it more attractive to households and investors. We will consult on streamlining the process for selling on shared ownership properties. In the autumn statement, we announced that we will extend the scope of stamp duty, which the hon. Gentleman mentioned. Stamp duty is incredibly important, as it affects first-time buyers’ ability to get on the housing ladder. Our scheme is a vital means of supporting home ownership, and it will also cut the cost of property purchasing for up to 98% of buyers.

Building more homes is a priority. The hon. Gentleman mentioned the Help to Buy scheme, which has helped more than 66,000 households to complete mortgages—more than 30,000 have been helped by the mortgage guarantee scheme and 36,000 have been helped by the equity loan scheme. The vast majority of those people—81%—are first-time buyers, which is to be supported and commended. Importantly, more than 94% of all completions are outside London. We are doing everything we can to support the market outside London in constituencies such as the hon. Gentleman’s and rural constituencies, where access to home ownership and new homes has been challenging.

[Andrew George]

I appreciate what the Minister is saying. Having mentioned shared ownership, Help to Buy and other related schemes, she is coming to the nub of the issue. We must extend the logic of those schemes to the intermediate housing sector. There is still a large cohort of aspiring professional people and others who simply do not have the opportunity to get into the housing market without Government help.

[Priti Patel]

The hon. Gentleman makes a valid point. He is absolutely right.

On Monday, the Prime Minister launched a new scheme that will offer 100,000 first-time buyers new homes at a 20% discount. That enabling factor is a crucial part of our major push to help people get on the housing ladder. The Government have a role to play in enabling ownership.

In addition to our changes to the planning system, we are freeing up underused or unviable brownfield land. There are many aspects of the housing debate that we could discuss, including planning and turning around land that is not being used in a viable way. We must free up underused and unviable brownfield land from planning costs and levies in return for below market value sale prices for the homes that are built on those sites.

On the hon. Gentleman’s point, I have said that shared ownership is an integral part of the affordable homes programme. His private Member’s Bill seeks to expand the provision of intermediate housing. I assure him that the Government are committed to intermediate housing, and we are always looking at what more we can do to assist, enable and support people.

[Andrew George]

An earlier draft of my Affordable Homes Bill, which I have shared with the Minister, included a proposal to establish an intermediate housing fund, although I had to remove it because I could not get sufficient political support for it. In my conversations with the National Housing Federation, it estimated that the kind of fund that would be sufficient to facilitate that sector is in the region of half a billion pounds. However, that would be an investment fund, not funding that is lost.

[Priti Patel]

I welcome the hon. Gentleman’s thoughtful points in this debate.

Housing is a challenging issue, as we have discussed in the short time available. The Government are working assiduously to do many things. I have spoken about the many measures that the Government have undertaken to help the housing market. We are seeing great trends, positive improvements and growth in access to affordable housing. We are providing assistance to aspiring home owners and giving them the opportunity to get on the housing ladder.

[Andrew George]

This is my final intervention before the Minister concludes. I had discussions with the National Housing Federation, community land trusts and others when I was developing my proposal. As the Government are consulting on how to develop the shared ownership model, will the Minister or one of her colleagues meet me and representatives from the National Housing Federation and community land trusts to see whether we can take these ideas forward?

[Priti Patel]

I thank the hon. Gentleman for the opportunity to respond to that point. The Government are putting in place many reforms and measures. Again, I thank the hon. Gentleman for his contribution to this debate. Either I or one of my colleagues will discuss this matter further with him to see what else we can do.

I assure the hon. Gentleman and the House that the Government are committed to supporting aspiring home owners—we are doing a great deal in that area— and helping home ownership. We take a continued and significant interest in this area, and we will continue to take a wide range of action.

Gypsy and Traveller Planning

Debate between Andrew George and Priti Patel

Wednesday 13th July 2011 Westminster Hall

[Priti Patel]

Absolutely. I thank my hon. Friend for his comments. What is lacking is fairness, transparency and a level playing field.

[Andrew George (St Ives) (LD)]

The hon. Lady makes a strong case for the unacceptability of unauthorised development, whether that is a shop, a factory, a house or anything else, including an encampment of the type that she is discussing. Planning law clearly needs to be enforced. However, if Gypsies or Travellers had the opportunity to live on authorised sites, there would be no need for such developments. Does she not agree that the Government and local authorities must concentrate their minds on ensuring that we increase the number of authorised sites available for Gypsies and Travellers throughout the country?

[Priti Patel]

I thank the hon. Gentleman for his remarks. The fact that that there are not enough authorised sites is a significant challenge to local authorities.

[Priti Patel]

I thank my hon. Friend for that contribution. There is no doubt that this is about balance across all our communities. I shall refer to two other cases before I talk about the consultation.

My constituency has had endless cases. In Tolleshunt Knights, a planning application was made for a site for travelling show people in a wholly unsuitable location, but again Maldon district council’s decision was overturned by the Planning Inspectorate on the basis of the requirements in the current planning circulars. The council rightly pursued a localist agenda while the Planning Inspectorate remained wedded to the paradigm of centralist command and control. As the Minister will know from the substantive correspondence I sent to the Secretary of State about the case, it was badly handled by the Planning Inspectorate, which clearly showed no regard for the Government’s planning policies as laid down in the coalition programme for government. There is a problem with the Planning Inspectorate.

The final case is about Lea lane in Braxted, where a planning application for a Gypsy site is pending and is with the Planning Inspectorate. The development is clearly inappropriate for the area, but there are concerns that the Planning Inspectorate, which has form, will grant permission on the basis of the applicant’s arguments about limited site provision and, again, human rights, despite serious question marks over the validity of the application and a series of irregularities that have been pointed out. While it is under consideration, I ask the Minister to do everything in his power to ensure that the Planning Inspectorate fully and comprehensively reviews the representations made by Maldon district council and the local community. It would be shocking and appalling if the Planning Inspectorate continued to progress applications and grant permissions for all the wrong reasons.

Many Members have mentioned a common theme that councils and communities still have their hands tied by previous targets, and it seems that the Planning Inspectorate values the human rights of one group over the rights of the settled community. That has created an unsustainable planning system full of problems, which is a big problem because our communities do not trust the system: they have no faith and confidence in it, so they automatically feel discriminated against; and if they do not have a voice, they do not feel represented. Our communities are left feeling pretty disfranchised and our councils feel powerless to act. There is a challenge for the Government, because they have a strong localism agenda that this problem could undermine.

Those are the reasons why we are here and why the system needs substantial reform. I am strongly in favour of giving local communities greater say and ensuring that their voices are heard. At the last general election, I was pleased to stand on my party’s manifesto, which would have addressed many of those fundamental problems through the pledge to give communities greater control over planning, to limit appeals to the Planning Inspectorate and to return decision-making powers on housing and planning to local councils. “Open Source Planning” highlighted that the Conservatives’ would take action in government to ensure fairness between the settled and the Traveller communities. We need to start to address the problem.

[Andrew George]

On fairness and even-handedness for the settled community and the unsettled community, which includes those who live in squats and caravans who are “settled” but cannot find adequate accommodation, does the hon. Lady agree that all reports have shown that the life expectancy of Travellers and Gypsies is significantly lower than that of the settled community and that infant mortality and maternal mortality are much higher? In addition, Travellers are hugely disadvantaged in education, with 75% of children regularly in education compared with—