Help to Buy: Housebuilders’ Profits

Baroness Thornhill Excerpts

Wednesday 27th February 2019 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, the noble Lord is right: the new Help to Buy scheme, which will start in April 2021 and run for two years, will be restricted to first-time buyers. At the moment, 81% of the uptake is first-time buyers. We will look carefully across the board at who is designated under that scheme as a provider, and we will have an opportunity to review that because it is a new system. We will look at it in the round to ensure that there is quality and proper consumer reference around some of the complaints that may be made. We will look also at leaseholds, to ensure that is no longer there. In 2021, all the new entrants and refreshed members will be required to sign up to that.

[Baroness Thornhill (LD)]

My Lords, it is important to state for the public record that the figures provided by my noble friend Lord Shipley are from research done by the Times. Is the Minister aware that in 2018, the largest housebuilders declared dividends amounting to £2 billion? On hearing this, does he have any sympathy for the many council planning officers who regularly do battle with those developers who are still exploiting the Government’s viability loophole to avoid paying the community infrastructure levy and Section 106 money rightly owed to councils, thus depriving communities all over the country of millions of pounds that should be spent on roads, schools and much-needed social housing? When will the loophole finally be closed for good?

[Lord Bourne of Aberystwyth]

My Lords, the figures are right, to the extent that they stack up mathematically. I accept that the figures set out by the noble Lord, Lord Shipley, featured in the press, but they are simply an exercise in looking at the profit and then dividing it by the number of houses built, without any attempt to isolate those in the Help to Buy scheme. It is very much a back-of-a-fag-packet exercise and does not bear mathematical analysis.

I hope the noble Baroness will accept that her more detailed questions have slightly blindsided me because they are not on this specific point. However, I will write to her and ensure that a copy of the letter is placed in the Library.