Oral Answers to Questions

Gareth Thomas Excerpts

Monday 12th March 2018 Commons Chamber

[Sajid Javid]

I think that the hon. Lady misunderstands the policy—at least it certainly seems so, given the way she described it. The Government are not withdrawing support; we are making it fairer and ensuring that it is still available. The support will be loan-based, with a soft loan secured on the individual’s property. This also protects the rights of taxpayers, and I would have thought that she would be interested in doing that.

[Gareth Thomas (Harrow West) (Lab/Co-op)]

4. What estimate he has made of the profits derived from the Help to Buy scheme by house builders.

[The Minister for Housing (Dominic Raab)]

The Help to Buy equity loan scheme alone helped 116,000 first-time buyers to get on to the property ladder and stimulated the supply of new housing—both key aims of this Government.

[Gareth Thomas]

My constituents, some of whom have been on the wrong end of aggressive behaviour by Persimmon, are concerned to know that since Help to Buy was introduced, the biggest private house builders have increased house prices by up to 10%, with almost all of that banked as profit and much of it paid out in senior managers’ enormous bonus payments. Should not the Secretary of State and his ministerial colleagues be doing more to tame the aggressive behaviour of developers such as Persimmon, rather than subsidising them through Help to Buy?

[Dominic Raab]

It is good news that Help to Buy has helped more homes to get built. It has contributed to about 14% of new build since 2015. I personally share some of the hon. Gentleman’s concerns about executive pay, but I gently remind him that it was this Government who introduced the corporate governance reforms in August, including to make sure that there is greater transparency and greater shareholder grip over directors’ pay.

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[Mr Speaker]

It is very useful to learn about Ministers’ domestic habits, and we are grateful to the Secretary of State for providing further information on that score.

[Gareth Thomas (Harrow West) (Lab/Co-op)]

The Conservative-run Northamptonshire County Council has recently gone bust. Was that due to a lack of Government funding or local incompetence?

[Sajid Javid]

The council has not gone bust. Owing to concerns around its finances, I appointed an independent investigation weeks ago—a best-value inspection—and the inspector, Mr Max Caller, will report back later this week.