Foreign-owned UK Property
Debate between Andy Slaughter and Mark Prisk(10 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Prisk
I am going to try to answer the points raised by the Member who secured the debate, if I may.
A number of people have said—indeed, it has been mentioned in this debate—that perhaps the majority of homes owned by foreigners lie empty. We have looked at the evidence carefully and Jones Lang LaSalle says that the vast majority of international buyers—85%—let property once purchased. There is, therefore, a benefit in that homes built in response to that demand often—in 85% of cases—go on to be let.
The right hon. Member for Bermondsey and Old Southwark also asked whether wider research could be commissioned for London in particular and, having looked at his shopping list, I can see that he also wants some granularity. He will understand that this is a devolved matter in London, but I will certainly bring this issue to the Mayor’s attention to see what granularity is available beyond the conventions of the English housing survey and so on.
Mr Prisk
I am running out of time and want to answer some of the questions asked by the right hon. Member for Bermondsey and Old Southwark, if I may.
The right hon. Gentleman raised the broader question of whether tax laws might differentiate in some ways. Property taxes such as stamp duty and land tax do not distinguish between UK and foreign nationals. That is partly because of EU laws, to which the right hon. Gentleman has alluded, but it is also partly because of significant administrative difficulties. Although he will understand that tax policy, as I am constantly reminded, is for the Treasury, I will nevertheless make sure that Treasury Ministers are aware of his suggestions and concerns.
The right hon. Gentleman also mentioned council tax differential rates, which we have discussed before. In April, having to listened to his concerns and those of others, we gave new powers to local authorities to establish an empty homes premium for long-term empty properties. Clearly, it is up to local councils how they do it, but I think that this is a power that is able to address many of the problems, perhaps in a simpler and more localised way than we thought. It is something that we will happily encourage, but as a localist Government we will not seek to impose it.
The right hon. Gentleman also mentioned foreign comparators. We certainly look at them, but we have to be careful to look not just at fiscal or planning arrangements but at the picture as a whole. Having looked at Hong Kong, I know that although it has made certain fiscal changes its difficulty is that prices are still rising.
I will respond to the right hon. Gentleman’s specific shopping list, but let me conclude by saying that I think there are perfectly understandable concerns about the potential impact of people from overseas buying homes in London. We should not, however, pretend that there are no benefits—I know that the right hon. Gentleman does not seek to do that. Inward investment has helped more homes to be built and it encourages confidence. We need a balance to be struck, but overall London benefits from being an open and diverse city, which both welcomes and, indeed, attracts investment from around the globe. I look forward to continuing this dialogue and to making sure that we continue to keep on top of what is a difficult and vexed issue that we hope to challenge.
Question put and agreed to.
Oral Answers to Questions
Debate between Andy Slaughter and Mark Prisk
Mr Prisk
The hon. Gentleman has been a powerful advocate for the hospital site in Colchester about which he and I had a meeting. We have been able to organise the disposal of land for some 33,000 homes. There is much more to do in the health service, across the defence estate, and elsewhere, but this is an important priority, and I understand the point that he raises.
Mr Andy Slaughter (Hammersmith) (Lab)
21. Does the Housing Minister think that there is any connection between my Conservative council spending £860,000 last year on keeping 365 families in bed and breakfast, the fact that it sells off 10% of council homes that become vacant, and the fact that it has planning policies that forbid the construction of any additional social homes?
Mr Prisk
The hon. Gentleman is nothing if not parochial. He is one of those people, I am afraid, who cannot see the good side in any affordable housing programme. [Interruption.] I am well aware of his connections with Hammersmith and Fulham; we are constantly reminded of, and excited by, that prospect. We are delivering on the completion of 170,000 more affordable homes; the Labour Government presided over the loss of 421,000 homes.