Ben Howlett
Main Page: Ben Howlett (Conservative - Bath)My hon. Friend makes a good point about the importance of having this flexibility. In London, local authorities from across the parties have asked for the ability to work together to deliver on this front. We need new homes to be built in this country, and the amendment would limit the Government’s ability, and that of local authorities working with us, to ensure that the right mix of housing is delivered as quickly and efficiently as possible.
My hon. Friend is being incredibly generous with his time. As he will know from his visit to Bath a couple of weeks ago, we do not have high-value assets, but housing costs are high in the area. Given the earlier announcement about the shift from high-value assets to higher-value assets, which will not be applicable in Bath, how can our authority combine with other authorities to bid for additional funds following the Budget announcement?
My hon. Friend makes a good point. When I visited him and met constituents, developers and the local authority, I saw a really good example of an area that wants to deliver the right type of housing locally by understanding its local needs. Whether that involves working with the Government to bid for some of the £4.7 billion in the shared ownership fund or the £1.2 billion for starter homes on brownfield sites—
I will try to be a little more sober in my approach to this debate. It is a privilege to be able to speak in favour of the Bill. As Members across the House will know, I have raised my concerns about the high cost of housing in my constituency and other high-value areas on multiple occasions, and I have been supportive of the Government’s plans to build 400,000 affordable homes by 2020-21. Starter homes will make a massive impact in the west of England, enabling young families—and indeed families who are not young—to get on the property ladder. I think that is an incredibly important story to tell. I join other Members across the House who have talked about the importance of the housing debate, not just in London, but in other high-value areas throughout the UK.
I am fortunate enough to have got myself on the property ladder a little bit younger than the average age, aged 29, but that was only because my other half and I were able to combine our earnings in order to afford a two-bedroom house worth £450,000. I have a huge amount of respect for the hon. Member for City of Durham (Dr Blackman-Woods), and not just because I went to Durham University and one of the first elections I campaigned in was in her constituency—sadly, we did not win, but we did get rid of those Liberal Democrats, as we managed to do in Bath as well. But I take umbrage with the Labour party on this point, because if a two-bedroom home that costs £450,000 is good enough not to do anything, frankly, I do not think that is an argument that will wash very well with her constituents; it certainly would not wash with any of our constituents.
I am confident that the Bill, which we have now been debating for months, will go some way towards helping Bath residents access the housing ladder. During an earlier stage of our consideration of the Bill I joined several other Government Members, as the Minister has said, in calling for more to be done to increase the amount of affordable housing in high-value areas outside the capital, including Oxford, Winchester, Truro and Bath. Those are all beautiful places, so it is understandable that demand for houses there is very high. In such areas it is often young, aspiring homeowners who do not have the chance to buy, especially when they do not have the financial support of a relative. I do not want those groups to be put off moving to those areas and ultimately staying there, simply because they could not find a deposit. That has a major impact on economies outside London that are desperate for houses to be built to ensure they have the workers to maintain their economic growth. The west of England has increased its growth rate substantially over the past five years, as a result of the Government’s economic policies, but without housing integrated into the equation, we cannot maintain that.
I thank the Minister for taking the time to meet fellow MPs to discuss this issue and for taking our views into consideration. I agree with him that one answer to the problem is to increase the housing stock in higher-value areas. After talks with him, I am pleased to see the Government amendment changing “higher” to “high”, which will allow them the flexibility to ensure that areas with the highest-value housing are not unfairly impacted. That will have a major impact on the flexibility local authorities have to deliver more homes. I am also pleased that the Government have listened to our concerns and ensured that for every home a local authority agrees to sell, at least one new affordable home will be provided. Such measures will increase our housing stock and allow more young people to access the housing ladder. It also suggests that the Minister has listened to the concerns of the past and produced sensible proposals to ensure that housing is built rather than lost.
I applaud the Government for taking those important steps, but they will not, sadly, increase the housing stock in Bath, where the local authority has already taken steps to sell vacant high-value housing, having sold off a lot of homes for social housing. I therefore welcome what the Minister said earlier and call on Bath and North East Somerset Council to work with fellow councils, such as Wiltshire, Somerset and South Gloucestershire, to bid for the £1.2 billion and other funds available to deliver more homes for our areas. I look forward to working with the Minister, I hope, to see how our authority can put that into practice.
Is not one problem in this debate that a property will be sold for a certain value—the open-market value less the discount—but that the cost of building a home is normally much less? That great benefit could be used for new housing.
I completely agree. The sale of one high-value asset in a high-value area, such as Oxford, could enable more than just one new home to be built, because it costs a lot less to build, particularly given the current style of building adopted in some cities to keep up with demand. That is learning the lessons of the problems in the 1980s when these things were not taken into consideration, and it is thus another reason to back the Government’s proposals and not to listen to the wrecking amendments from the Lords.
I look forward to the housing revolution by 2020, and I hope that the House will reject the wrecking amendments from the House of Lords and back the Government on this vital Bill.
I am a member of Sutton Housing Society Ltd, although I have no pecuniary interest.
I will start where the Chair of the Communities and Local Government Committee finished, on the issue of supply. The Bill should be about supply in the widest sense, but while I do not doubt that Ministers are seeking to solve housing problems for some, I am afraid that the Bill will do nothing for the people I see regularly in my constituency surgeries. Nothing in it will help the single mother I referred to earlier, living and working in London on £17,000 a year and seeking a better private rented property or social housing through a housing association. Nor will it help the couple I saw a few months ago in a two-bedroom flat with three children, who could not afford the rent in a housing association property, let alone afford to buy in London.
We have heard about the Khan amendments, but perhaps I could throw in the Caroline Pidgeon amendments, which unfortunately do not feature in any of the strings today. The advantage of her proposal for London is that it includes a revenue stream of £2 billion to deliver the housing. Many have said they will deliver housing, but in practice we are still hundreds of thousands of properties short.
The Bill has been subject to an extraordinary number of amendments and no fewer than 13 Government defeats in the Lords, which is testimony to the fact that the Bill was presented to the House lacking a huge amount of detail and clarity. I thought we might get some here but that has not, I am afraid, been the case. The Bill contains provisions that will have extremely concerning consequences for housing in the UK and affordable housing in particular, and the fact that there has been such united cross-party opposition to the Bill in the Lords, including from Cross Benchers, indicates the depth of concern.
The Bill’s focus is on home ownership for better-off renters, but it neglects affordable homes to rent and clearly seeks to reduce the number of social homes provided by local authorities. As Opposition Members have said, the impact will undoubtedly be a rise in homelessness. Furthermore, far too much is being imposed on local authorities, in terms of sales of higher-value council homes, pay to stay and secure tenancies. It is encouraging, however, that the Government have taken on board some of the serious concerns and made concessions in relation to amendments 26 to 36, on abandonment, and amendments 90 and 91, on mandatory electrical safety checks for private tenants. Those are welcome.
I also welcome the Government’s recent inclusion in the Bill of a commitment to replace all homes sold off under the sale of higher-value properties. Replacements are critical to whether the Bill will have a devastating impact on social housing. In the past, promises of replacement have been made but not delivered, and as several Members have mentioned, it is critical that the replacement is like for like, in terms of the type of property, and in the same area.
In London, pay to stay is of particular concern. Some Members might be aware of a report by the Joseph Rowntree Foundation in 2014 that found that a family of two adults and two children needed an income of £40,000 to have an acceptable standard of living. That was an average across the whole country. Given that that was two years ago and an average for the country as a whole, it is clear that families on £40,000 in London would not be wealthy. I hope that the Government will look favourably on amendment 57, which would raise the threshold by £10,000 and might actually get people up to an acceptable standard of living before their income is reduced by rising rents in their social property. In addition, I will certainly support amendment 55, if it is pressed to a vote, and amendment 54. If they are pressed, I will also support amendments 9 and 47, which were debated earlier.
With that and within your five-minute margin, Madam Deputy Speaker, I will sit down.