Anna Turley
Main Page: Anna Turley (Labour (Co-op) - Redcar)
Anna Turley (Redcar) (Lab/Co-op)
It is a pleasure to follow the hon. Member for Rossendale and Darwen (Jake Berry), who always looks to defend his constituents well. The points he made about stamp duty are thought-provoking and I appreciate his sharing them with the House.
The need to address the housing crisis in this country has never been greater. Rising demand, a chronic lack of supply and a woeful lack of long-term vision from the Government have ramped up the pressure in every region of the country. I am glad that the Government have brought this Bill to the House for us to examine and that they are finally showing effort to stem the crisis. It is a relief that they have woken up to the urgent need to build more homes, after five years of neglect, when house building fell to some of its lowest peacetime levels on record.
This Bill, however, does nothing to tackle some of the most profound problems the housing sector faces. For so many of my constituents, home ownership must become more affordable and more readily accessible, so that those looking to own a home can take their first step on the ladder. The Government’s attempt at solving that is their “starter homes programme”, which is at the forefront of this Bill. Anybody taking even a cursory look at the detail will reach a glaring conclusion: the homes are simply not affordable to those on ordinary incomes. Shelter has published information to suggest that families on the Government’s new national minimum wage—it is a minimum wage, not a national living wage—will be able to afford a starter home in only 2% of local authority areas. That raises the question: which bracket of the population is the scheme supposed to be assisting? We need genuinely affordable homes, not assistance packages which people who are currently frozen out of housing ownership are not going to be able to get anywhere near.
Although this Bill will do little to make the dream of home ownership a reality for those who want it, my biggest anxiety is that it will deal a fatal blow to social housing. The Bill aggressively promotes starter homes by forcing planning authorities to prioritise them over all other types of housing, such as affordable rented homes and social housing. That approach directly imperils the section 106 obligations of the Town and Country Planning Act 1990, measures which in the past decade have secured more than 230,000 affordable homes. Any endangerment of those provisions would be nothing short of a tragic loss of what should be referred to as genuinely affordable homes. Coast & Country, a housing association in my constituency, has just signed a deal with Bellway Homes to provide 13 new affordable rented homes on a site in Redcar. Under the measures in this Bill, those homes risk being side-lined. Maintaining a mix where truly affordable homes are part of developments must be a priority in any solution to the housing crisis.
On right to buy, the implementation of the so-called “voluntary” scheme is at best a poorly thought out policy and at worst a direct block to securing social housing. Housing associations have complained that the concept is flawed. We know from the performance of the earlier model that more than 30% of all homes sold in this way are now controlled by private landlords. Like many of my colleagues, I do not have an ideological problem with right to buy, but I fundamentally disagree with the hon. Member for Uxbridge and South Ruislip (Boris Johnson), who calls us “bourgeois lefties”. It is not bourgeois to object to the exploitation of a precious asset—a home—to push up rents and take the aspiration of home ownership further away by reducing supply. That provision will mean higher rents and higher spending on housing benefit, producing the worst outcome for tenants, housing associations and the Exchequer, as well as a catastrophic depletion of social housing stock, which will effectively be lost for ever.
Just as concerning is the costing. How is the voluntary right to buy scheme being funded? As the Institute for Fiscal Studies points out, the scheme has serious up-front costs, because housing associations will have to be compensated for sales below market value. The National Housing Federation estimates that if all of the eligible households decide to take up the scheme, it could cost an astonishing £11.6 billion. Even a casual analysis reveals a serious imbalance between the money going out fully to compensate the housing associations and the money we have been told is going to fund it, which will come from councils selling their most expensive properties as they become available. That scheme is estimated to raise about £4.5 billion.
We are barely six months beyond the election, and already we on the Labour Benches have stopped expecting the Government’s maths to add up. Clearly, ideology trumps economics. Once again, that can be seen in the 1% cut to social rents, which will lead to a £16 million shortfall in the next four years for my housing association in Redcar, thus affecting its broader services, such as tackling antisocial behaviour, supporting financial inclusion, and helping people stay in their homes. All of those services will be cut, shunting more costs on to other aspects of public services. It will also result in considerable job losses to my local housing association, which is one of the best and most secure employers in my constituency, particularly in the current climate.
Finally, I wish to touch on the pay-to-stay mandatory rents for high-income social tenants. This proposal is the latest nonsensical assault on working families that proves just how out of touch this Government are with the reality that thousands of tenants face. If the collective income of a household is £30,000, rents will be increased to market level. For a couple on £15,000 each—not much more than the national minimum wage—the proposal could be a total disincentive to work additional hours or seek higher paying employment. I ask the Secretary of State to clarify that point and to avoid the Government yet again taking money out of the pockets of hard-working people.
The Secretary of State started his speech today with a noble description of new housing as more than “bricks and mortar”. He talked about how the homes we build shape the lives and prosperity of the people who live in them. But why should my constituents give him any credit for such a statement when his Government persist with the wretched bedroom tax? [Interruption.] It is all very well for Members on the Government Benches to titter, but thousands of my constituents have been forced out—
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. I call Mr Geoffrey Clifton-Brown.