Affordable Housing (Devon and Cornwall)

Debate between Anthony Mangnall and Gary Streeter

Wednesday 27th April 2022 Westminster Hall

[Sir Gary Streeter]

I do agree. People used the word “crisis” earlier—none of us likes to use it, but this is a crisis. Many constituents are struggling to find a suitable home.

I want to add some questions to the others posed to the Minister. Let us be honest: we know this Minister has the intellect and stamina to grapple with these complex problems. What is the Government going to do about this current gross distortion of the private rented market in regions such as Devon and Cornwall to ensure our constituents can access reasonably priced housing? Is he having discussions with the Treasury about taxation policy on Airbnb? Is his Department looking at new regulations to ensure that Airbnb standards and safety are at least as high as in the general rented market, to ensure a level playing field? Why has the consultation on these issues taken so long? We are Conservatives and we believe in the market, but where it moves so dramatically and quickly against our constituents, we have to find effective ways to intervene.

On the wider long-term affordability problems, the Government appear to be placing their trust in two main pillars: First Homes and shared ownership, with very little between. I wonder whether the First Homes policy, with an in-built discount to be handed on in perpetuity, will survive the test of time. I must confess that I foresee tremendous problems when owners of their first house have to pass on the discount when they sell it. How will they then make the jump to their second house, which will be priced in the open market? I have never understood how that is going to happen, so I question that policy.

Then there is the continued focus on shared ownership, which few people like and where few people ever end up owning the whole property. It has not delivered the scale of accessible homes that was originally envisaged.

[Anthony Mangnall]

I apologise for interrupting my hon. Friend and constituency neighbour, who is making a brilliant speech on this point. I thought I would remind the House and this gathering of MPs that we have the highest rate of second homes and Airbnb properties in Devon, at 8.2%. My hon. Friend is making a point about how we can help people get on to the housing ladder. Could I add a third suggestion? We should enable people to use their pensions as their deposits to get on the housing ladder, which are then ring-fenced in the value of their house and, if they ever sell it on, can be put back into their pension for the future.

[Sir Gary Streeter]

My hon. Friend is full of interesting ideas. That is another one, which I am sure the Minister will look at carefully and be sympathetic to.

There is a significant gap in the middle between the two main policy pillars that the Government are currently pursuing, and many of our constituents are falling into that gap. As such, here is a thought for the Minister, with which I will conclude. Will he give some thought to calling a conference or roundtable in the south-west this summer to discuss our challenging housing needs? We could hear from key workers and employers about the frustrations and costs of accessing housing in our hotspot area, from housing providers and landlords about the current landscape, their frustrations, and the things that work and do not work, and from innovative providers of housing how, working together with Government, they might help meet the needs and aspirations of our constituents. Such a collective brainstorm could help find both short-term and long-term solutions to our housing crisis.

The housing market in Devon and Cornwall, whether to rent or to buy, has always been challenging for local people, but in my 30 years, it has never been as bad as it currently is. It is a crisis, and urgent remedial action is required.