Protection for Homebuyers

Debate between Drew Hendry and Kate Green

Thursday 13th December 2018 Westminster Hall

[Drew Hendry]

I am grateful for that translation from the Scots.

A test case was brought by Mr Michael Marriott, a householder in Clackmannanshire, against Greenbelt Group in 2015. He took his case to the Lands Tribunal for Scotland and won, because it was found that the deeds were not compliant with the legislation. Perhaps that is a learning opportunity for the UK Government. Where there is a clear breach, homeowners can pursue a course to get factoring clauses taken out of their deeds altogether.

That has made a big difference, but it would be foolish to say it has cured all the problems. There is much more work to be done in Scotland, including on issues with shared factor arrangements on private housing estates. There is one such estate in Milton of Leys in my constituency. One of my constituents was advised that his factoring bill had risen from £100 in 2005-06 to £173 in 2017-18, with no explanation—it was just applied to the costs.

[Kate Green]

The hon. Gentleman is making a really interesting point. I know from personal family experience that one of the difficulties with factors is that those homeowners are often older people who live in specialist or sheltered estates. Does he agree that it is particularly important that any regulation and legislation attends to the needs of more vulnerable homebuyers?

[Drew Hendry]

I am very grateful for that intervention. That is an important point. Lots of people are in a vulnerable situation. They tend to be elderly people and people with disabilities, but it is important to recognise that there are other vulnerable groups, such as the young and inexperienced, who may not be able to think about entering into a contract in the same way as other people. Some people have found it difficult to get recourse when work is not done to the standard they expect, and others have found that maintenance of communal landscaped areas is ignored completely.

As well as introducing measures to protect homeowners, the Scottish Government are working to ensure that those who aspire to home ownership are able to achieve it. I will mention a specific programme that the Minister may find it useful to hear about. Ensuring that everyone has a safe, warm and affordable home is central to the Scottish Government’s drive for a fairer and more prosperous Scotland. Since 2007, they have delivered more than 80,000 new homes—as a proportion of the population, that is a third more than in England and three quarters more than in Wales. More than 28,000 households have been supported through the Scottish Government’s low-cost initiative for first time buyers scheme and the Help to Buy programme. Nearly 20,000 houses have been built for affordable home ownership.

The Scottish Government have also introduced a new land and buildings transaction tax relief for first-time buyers, which will raise the zero-rate threshold for that group to £175,000, benefiting all first-time buyers in Scotland by up to £600. That reform means that more than 85% of those who have bought a property worth £40,000 or more since April 2015 have either paid less tax compared with stamp duty land tax, or no tax at all.

Affordable housing to buy is very important for my constituents and across Scotland. A recent survey found that increasing numbers of young people want to live and work in the highlands and islands. In 2015, when the survey was previously carried out, many young people cited poor connectivity and a lack of housing as barriers to wanting to stay.

Working together is delivering results. Mid-market rent projects are delivered through the city deal investment in a partnership between the Highland Council, the Scottish Government and house builders. Through partnerships with Highland Housing Alliance and others, young people who cannot yet afford a mortgage are given the opportunity to rent a home at a mid-market rate to allow them to save for a deposit and buy the property after a number of years.

I want to quote my constituents, Sally and Ruaridh, who have just moved into their new home this week through the Highland Housing Alliance mid-market rent initiative. They will be able to buy the property in five years, after paying a mid-market rent that allows them to save. Sally said:

“This move has been transformational for me and my partner. We are now in a secure home where we hope to start a family one day, and we’re able to save hundreds more each month to help us towards a deposit for a mortgage.”

The Raining’s Stairs development in my constituency in Inverness, which includes mid-market rent properties, won the award for the best residential development of under 70 homes at the Inside Housing development awards in London last month, so it is appropriate to mention it in this debate. Some 55% of Help To Buy recipients were aged 30 years or under. The Scottish Government recently announced a further £100 million to extend the scheme by two years to March 2021, to help even more people into home ownership.

The debate has been interesting. I wanted to touch on points specific to Scotland, but I will underline that some of the voices we have heard talking this afternoon about the costs incurred by constituents and homebuyers and about the activities of house builders have been eye-opening. I hope that the Minister has had her ears open and is willing to proactively address the many deep concerns that people have. I look forward to hearing her response.