Housing
Debate between Anne Main and John Healey
John Healey
My hon. Friend makes a really important point that I hope will be a point of debate this afternoon. A serious question that must be asked in respect of the plans before us is whether it is the right use of public money to subsidise the demand for new housing, at a time when the housing market in many parts of the country is already out of control.
John Healey
No, I will make some progress. If the hon. Lady really wants to intervene later, I will give way.
At this point in the political cycle, we need to look at what is ahead. Two areas demonstrate the direction that the Tory Government are taking on housing and serve as a warning of what is to come. The first is a systematic attack on housing opportunity for young people and families on ordinary incomes, the very people the housing market is failing most at the moment. Ministers have launched a full-frontal assault on council and housing association homes which will hit those on low and middle incomes hardest. The Office for Budget Responsibility has said that the result of both the Budget and the autumn statement together will be 34,000 fewer housing association homes built. Meanwhile, the Housing and Planning Bill strangles the ability and obligation of both private and public sectors to build the affordable homes to rent and to buy that are badly needed in both urban and rural areas alike.
In addition there is an extraordinary forced sell-off of council homes to fund an extension of the right to buy, with no prospect or commitment, as Labour has urged, of like-for-like, one-for-one replacements in the local area. I have to say that in many areas of the country, both rural and urban but especially in London, these council homes will go not to families struggling to buy, but to speculators, second homeowners, and buy-to-let landlords—and of course the greater the demand for affordable housing in an area, the higher the value of the houses, and the more the Chancellor will take in his annual levy.