Graham P Jones
Main Page: Graham P Jones (Labour - Hyndburn)
Robert Neill
I have in front of me the letter that Capita sent to all local authorities in the country, and it points out that the reforms are deliverable if we can bring forward the regulations and detailed schemes in time. To that end, we have set up an officer-level working group to discuss these matters with officials from the local government sector.
Graham Jones (Hyndburn) (Lab)
8. What assessment he has made of the effect of the number of properties in the private rented sector on young people attempting to purchase a home.
The Minister for Housing and Local Government (Grant Shapps)
In 2011, in terms of value, buy-to-let mortgages accounted for just 8% of total loans for home purchases. The biggest barrier to home ownership for many young people is not that, but the need to raise a deposit. That is why I know that the hon. Gentleman will welcome the NewBuy scheme, which we launched this morning.
Graham Jones
Obviously, I am aware that over the weekend the Government announced the home buy scheme for new build, which is a shadow of the sub-prime lending that went on previously, so I advise caution. The private rented sector, however, has added about 6% to the value of properties. Does the Minister agree that the issue is rising house prices and the cost of housing, not the availability of mortgages?
Grant Shapps
Just to clarify one point, sub-prime lending happened when people who could not afford to pay a mortgage back were lent money, sometimes as much as 120% of the value of the property. That is nothing to do with today’s NewBuy scheme. I know that the hon. Gentleman takes a keen interest in the private rented sector in particular. He makes a lot of very good and serious points about it and I can inform him that this Friday I intend to come and see him in his constituency to see the problems for myself.