Housing and Planning Bill

Debate between Ann Coffey and Ben Howlett

Tuesday 12th January 2016 Commons Chamber

[Ben Howlett]

Yes, I absolutely endorse my hon. Friend’s comments. I see from the amendments before us today that that is being considered. I welcome the assurance that the Government will look at replicating the proposal in other high-price areas such as Bath, St Albans, which we have heard about today, and Oxford using proposed new subsection (6) in amendment 112.

Development is under way on brownfield sites in Bath such as the Foxhill development, which recently received an extra £313,000 of Homes and Communities Agency funding. That will help to build more homes on brownfield sites. I am pleased to see that the Government are committed to building more affordable homes in London and other expensive areas. I desperately look forward to working with the Minister, as do other colleagues, on rolling out amendment 112 to other high- cost areas.

[Ann Coffey (Stockport) (Lab)]

I wish to make a few remarks on the impact of the Government’s proposals on Stockport.

The impact of the sale of high-value properties will be an issue in Stockport because property prices are high and land is scarce. Even a committed arm’s length management organisation such as Stockport Homes will find it a struggle to find funding for the building of new homes, whether for rent or sale.

For the high-value proposal to operate fairly, it will have to operate on a local level to ensure that no one authority bears the brunt of the sales. In Greater Manchester, for example, a regional high-value level could mean that Stockport sells the vast majority of its stock because it has higher property prices than most areas in the region. Depending on the scale, that could have a significant effect on the ability to meet housing need in the borough.

The new pay-to-stay thresholds should take into account the cost of private renting in each area, as well as income. The Bill proposes pay-to-stay market rents for people who earn a combined household income of £30,000. That threshold is very low. A couple who both work full time at the average Stockport wage of £19,083 would have to pay a significantly higher rent than their neighbours. Let us say, for example, that it was set at £40 a week. In August 2015, the rents in private rented accommodation in Stockport were twice Stockport Homes’ average rent of £74.60 and there was a limited supply. Clearly, moving to the private sector would not be an option. The problem is that £40 a week is still a lot of money to find and may be unaffordable for a family.

One way out would be for people to earn less money to ensure that they do not meet the threshold by cutting the hours they work or leaving a job altogether. Clearly it cannot be right that the proposal would provide a disincentive for people to work the maximum number of hours they can. That runs counter to everything the Government espouse. The cost of renting privately varies greatly from area to area. It would be better if the pay-to-stay market rents that are to be introduced took account of the average income of couples and rents in the private sector in the area so that there are no disincentives to work.

I hope that the Minister will consider the situation for care leavers under his proposals. Housing benefits for single people under 35 years of age will be capped at the shared accommodation rate. That proposal might make it even more difficult than it already is for young people to find a home they can afford. About 1,800 of Stockport Homes’ current tenants are under 35 and receiving some level of housing benefit. The changes would mean that the social housing and private rented sectors will become increasingly unaffordable, and young people will be at increased risk of homelessness, at a time when homeless acceptances have risen nationally by 36% since 2009, and by 15% in Stockport over the last year. The typical young person under 35 will need to find the difference between the average Stockport Homes rent of £74.60 a week, and the shared allowance rate of £62—a cut of £13 a week once the changes come into effect, and obviously more in the private sector.