Home Ownership (Armed Forces)

Andrew Miller Excerpts

Wednesday 29th June 2011 Commons Chamber

[Andrew Miller (Ellesmere Port and Neston) (Lab)]

I congratulate the hon. Member for Salisbury (John Glen) on picking up the baton on this issue. Like me, he met Richard Morris from Heropreneurs a couple of weeks ago. I first knew Richard when he was involved in the Bright Ideas Trust and he is an extraordinary character who puts an amazing amount of energy into helping other people, and all credit to him.

There are the beginnings of a solution in the pilots that the Minister inherited from the previous Administration. There was a £20 million shared equity scheme, which was jointly supported by the MOD and the Department for Communities and Local Government. The scheme was a good idea, but what the hon. Gentleman has highlighted is a whole range of different parts of this problem that go much deeper than we first thought. The matter requires fresh thinking on a cross-departmental basis to ensure that we can persuade the various lending authorities to treat service personnel in the way that the hon. Gentleman has described. Service personnel are special to us and they deserve special treatment in all sorts of ways.

I am quite convinced, having looked at the challenge, that it is perfectly feasible for any self-respecting building society listening to the debate to find a vehicle that will work for this category. If a single building society can do it, perhaps others will, too. I should like the Minister to commit the Government to work with the private sector to bring that about.

Such work needs to cross a number of boundaries. With long-term planning for service personnel, their family situations would be more stable, and they would stay in the services for the longer term. Part of that work spills over into education. The Minister needs to liaise with his colleagues in education, so that we overcome the other little barrier: the placement of young schoolchildren when people leave the forces to ensure that they are in stable school environments within the geographical areas where their families plan to live. A holistic approach is needed, and the problem can be solved with a bit of joined-up thinking.

--- Later in debate ---

[Grant Shapps]

On the first point, my hon. Friend is absolutely right that resources need to follow. He will be aware that we have launched not just the Firstbuy scheme to build 10,500 homes for purchase, but a range of different schemes for affordable rent that will very much apply across the country, and aim to build 150,000-plus homes. Of course, as I announced a few moments ago, we will ensure that military personnel are right up there on that list. I intend to consult on the matter after the Localism Bill has finished its progress through the other place. The case of Blue Force is not one with which I am familiar. I would be happy to receive further information on it.

It is interesting that my hon. Friend the Member for Salisbury raised the issue of right to buy and whether time outside the country counts towards the right to buy qualification. I am reliably informed that nothing has changed since the Housing Act 1985. This Government certainly have not made any changes, and I do not think that the previous Government did either. Again, I invite him to provide details if he has any concerns about that. Someone who serves abroad should certainly not lose that time, when it should count towards their right to buy.

As my hon. Friend knows, I have promoted these issues, particularly by holding a military housing summit on 16 May, the same day that the military covenant was launched. I sat around a table and held discussions with a range of military leaders, charity workers, defence officials and many others about how we can improve the situation. I reassure him that a whole range of ideas came out of that meeting—from the Firstbuy discussions, to what more we can do to let our armed forces have a fair crack of the whip at social housing, and to the problems that he eloquently outlined involving how British Forces Post Office addresses have not qualified, until now, with the credit reference agencies that all the mortgage lenders use when assessing a mortgage application. That is an extraordinary problem that should be solved easily. I can inform the House that we have been working to resolve it for several months, since the coalition came to office. We are fairly close to a resolution.

[Andrew Miller]

The Minister is making an important point. Will he send a strong message to all credit reference agencies that both the Government and the Opposition are incredibly proud of BFPO? It reflects an important part of our society, and we regard it as an insult to our troops that they should be treated in that way by credit reference agencies.

[Grant Shapps]

The point has been made clearly, and I hear that other hon. Members agree, as do the Government. We have been discussing the matter and are close to resolution. It is an example of how a tiny piece of bureaucracy can cause complete mayhem for somebody’s future life. The inability to score highly on a credit record is important, and it is only a matter of a software change—the computers at Experian and elsewhere simply need to be able to accept BFPO postcodes so that they do not create a problem. Indeed, it could be part of the solution, because once it has been flagged up that somebody has been in the military, all the additional assistance that I have mentioned— for example, Firstbuy—could be brought to bear simply through that information coming to light. I have found the Council of Mortgage Lenders and others to be very helpful in trying to resolve the problem, and we are not far off making an announcement. That is good progress.

I can also report that the scheme managed by the MOD that the hon. Member for Ellesmere Port and Neston (Andrew Miller) mentioned is expected to help a minimum of 250 families into affordable home ownership. I know that that will be widely welcomed. Of course, there are several other key challenges, and I intend to pick up on those themes at a further first-time buyers’ housing summit, which I will hold on 5 July. I will add some of those items to the agenda so that we can keep proper tabs on where we have reached.

I believe that we are considering an issue that one cannot simply approach once and expect it to be resolved.

[Andrew Miller]

rose—

[Grant Shapps]

We have to keep returning to the matter, just as the hon. Gentleman is about to do with his intervention.

[Andrew Miller]

Will the Minister please add to his agenda the special tools that are needed to enable people to transfer from buy-to-rent to buy-to-live-in? A special vehicle is needed for military personnel in that category. That would help them to buy early, which would obviously help later in their careers.

[Grant Shapps]

I am grateful to the hon. Gentleman. I have not examined that so far, and I am certainly happy to add it to the agenda and give some thought to how we could assist.

We are trying to assist in many different ways. One strange problem is that, six months before someone is discharged, they get a notice of cessation, which tells them that they will be moved out of their military accommodation. There is not much connectivity between that and the local authority, which may not know that those people are about to come down the line and may be in need of housing help, advice or assistance. We intend to join that process up as best we can. That is important.

The more I have looked into the matter, the more it strikes me that the key is joining all the dots. It is not that the country is not grateful and nobody wants to help—far from it. My experience has been the opposite. However, the dots have not been sufficiently joined up. The bureaucratic barriers have got in the way. I commit us to ensuring that, in every possible way, we will seek out and actively try to destroy those barriers, taking on board the excellent ideas that have been presented in debates such as tonight’s and any others, wherever they come from. It is my goal and the Government’s intention to ensure that when those who have bravely served in the military come home, that bravery and the job that they did so selflessly is recognised by everybody in the country, particularly when it comes to housing needs.

Question put and agreed to.