Debate on the Address

Debate between David Davis and David Lammy

Wednesday 27th May 2015 Commons Chamber

[Mr Lammy]

That is a very good point. Some people are using the phrase “hyper-devolution”, which means devolution to communities as they negotiate the power that must rightly lie with them.

Let me now deal with what I consider to be a major issue in the Queen’s Speech. Our country faces a huge structural economic problem in its housing market. We are failing badly the people beyond the House who are young and want to get on to the housing ladder, but who are also the working poor, unable to secure social housing or to buy affordable housing. It is of huge concern that the average age of a buyer in London was 39 this year, and that if we continue on the same trajectory, it will be 52 in a generation. It is also embarrassing and shocking that we built only 40 council houses in London last year. There is much talk about affordable housing, but all hon. Members will understand that rents at 80% of market value are not affordable for most Londoners, who on average earn £32,000 a year. It beggars belief that the Government should propose to extend the right to buy to the 1.3 million people in housing associations. We can look at the matter from a Thatcherite point of view. There is no other area of public policy where someone can get as much as £100,000 from the taxpayer for buying their council home. We are to extend that to people in housing associations. What will that do to supply? How will that contribute to the huge problem of affordable housing? What is our vision for social housing? It appears that there is no vision for social housing and that we are effectively saying we no longer believe in council homes and we no longer believe in social housing in housing associations.

[Mr David Davis]

Because it is low-cost, high-security accommodation, people never move out of it, so how is it the answer to the problem that someone in a housing association flat or house monopolises it for life and it never becomes available to other people who properly want social housing?

[Mr Lammy]

The right hon. Gentleman makes an important point in relation to the escalator that should be fundamental to the welfare system, but with respect that is not the point I am making. We are reducing the supply of social housing, and many people on a decent wage simply do not have the assets to reduce the demand for social housing. That seems wrong-headed. In the previous Parliament, we heard much about a council house being built for every one that came off the market. That has not happened and it will not happen with housing association properties either.