Home Ownership (Armed Forces)

Grant Shapps Excerpts

Wednesday 29th June 2011 Commons Chamber

[The Minister for Housing and Local Government (Grant Shapps)]

I congratulate my hon. Friend the Member for Salisbury (John Glen) on calling this debate on a subject that is enormously important to many hon. Members and to people beyond. The constructive and helpful manner in which he has addressed the issue is appreciated. It is right that we do everything possible to honour those who have served this country, who have gone out of their way and put their lives on the line. In my view and, in fact, that of the Prime Minister—he said it from this very Dispatch Box earlier today—it is not enough simply to remove the disadvantages that having been away from home might bring. If we put ourselves in the position of those who defend the rest of us, we see that it is fair to expect them to be given a foot on the housing ladder as well. I want to make it a specific goal of the Government to ensure not only that we are removing those disadvantages but that we are actively helping.

My hon. Friend raises a number of key points, some of which we have already been talking about. I will try to address his concerns. He refers to the Firstbuy initiative that we launched recently, and ensuring that those who have served this country are at the top of the Firstbuy list. He rightly points out that it should help 10,000 or 10,500 families to purchase homes. I want to ensure that our ex-servicemen are at the front of the line to do that, and we have said that we will ensure that they are. They are being prioritised right at the top, along with people at the top of the housing waiting list. None the less, I intend to ensure that we promote the scheme properly to those who are in the target category. In doing so, we will send Firstbuy special agents into military bases here and abroad, as my hon. Friend mentions, to ensure that we find the right people, so that they know about the schemes. That activity is already under way, and I can put my hon. Friend’s mind to rest about the detail at that scheme by letting him know that the network of Firstbuy agents is already in place and active. For example, I have the marketing material that they are sending to barracks to promote the scheme.

My hon. Friend mentioned social housing. Of course, people do not always want to return to purchase houses, as that might not suit their situation. They might return and want to get on to the social housing waiting lists. Again, I have some good news for him: I intend to consult on how we can better handle their position on the social housing waiting lists. I am determined—I am sure that the whole House is—to ensure that people do not return and find themselves languishing at the bottom of the housing waiting lists, perhaps because a local authority is trying to apply a local connection rule. That is completely wrong, so I reassure my hon. Friend that we will consult on a better way to ensure that returning squaddies are at the top of that list.

[Bob Russell (Colchester) (LD)]

First, on social housing, I urge the Government to ensure that those councils with large garrison communities have additional resources if that priority is to be meaningful. Secondly, I seek the Minister’s assurance about the failings of an organisation called Blue Force that was based in my constituency and operated from the former Colchester barracks with MOD phone numbers. It was set up to encourage serving personnel around the world to buy, but it went under owing hundreds of thousands of pounds, with many serving military personnel losing thousands individually.

[Grant Shapps]

On the first point, my hon. Friend is absolutely right that resources need to follow. He will be aware that we have launched not just the Firstbuy scheme to build 10,500 homes for purchase, but a range of different schemes for affordable rent that will very much apply across the country, and aim to build 150,000-plus homes. Of course, as I announced a few moments ago, we will ensure that military personnel are right up there on that list. I intend to consult on the matter after the Localism Bill has finished its progress through the other place. The case of Blue Force is not one with which I am familiar. I would be happy to receive further information on it.

It is interesting that my hon. Friend the Member for Salisbury raised the issue of right to buy and whether time outside the country counts towards the right to buy qualification. I am reliably informed that nothing has changed since the Housing Act 1985. This Government certainly have not made any changes, and I do not think that the previous Government did either. Again, I invite him to provide details if he has any concerns about that. Someone who serves abroad should certainly not lose that time, when it should count towards their right to buy.

As my hon. Friend knows, I have promoted these issues, particularly by holding a military housing summit on 16 May, the same day that the military covenant was launched. I sat around a table and held discussions with a range of military leaders, charity workers, defence officials and many others about how we can improve the situation. I reassure him that a whole range of ideas came out of that meeting—from the Firstbuy discussions, to what more we can do to let our armed forces have a fair crack of the whip at social housing, and to the problems that he eloquently outlined involving how British Forces Post Office addresses have not qualified, until now, with the credit reference agencies that all the mortgage lenders use when assessing a mortgage application. That is an extraordinary problem that should be solved easily. I can inform the House that we have been working to resolve it for several months, since the coalition came to office. We are fairly close to a resolution.

[Andrew Miller]

The Minister is making an important point. Will he send a strong message to all credit reference agencies that both the Government and the Opposition are incredibly proud of BFPO? It reflects an important part of our society, and we regard it as an insult to our troops that they should be treated in that way by credit reference agencies.

[Grant Shapps]

The point has been made clearly, and I hear that other hon. Members agree, as do the Government. We have been discussing the matter and are close to resolution. It is an example of how a tiny piece of bureaucracy can cause complete mayhem for somebody’s future life. The inability to score highly on a credit record is important, and it is only a matter of a software change—the computers at Experian and elsewhere simply need to be able to accept BFPO postcodes so that they do not create a problem. Indeed, it could be part of the solution, because once it has been flagged up that somebody has been in the military, all the additional assistance that I have mentioned— for example, Firstbuy—could be brought to bear simply through that information coming to light. I have found the Council of Mortgage Lenders and others to be very helpful in trying to resolve the problem, and we are not far off making an announcement. That is good progress.

I can also report that the scheme managed by the MOD that the hon. Member for Ellesmere Port and Neston (Andrew Miller) mentioned is expected to help a minimum of 250 families into affordable home ownership. I know that that will be widely welcomed. Of course, there are several other key challenges, and I intend to pick up on those themes at a further first-time buyers’ housing summit, which I will hold on 5 July. I will add some of those items to the agenda so that we can keep proper tabs on where we have reached.

I believe that we are considering an issue that one cannot simply approach once and expect it to be resolved.

[Andrew Miller]

rose—

[Grant Shapps]

We have to keep returning to the matter, just as the hon. Gentleman is about to do with his intervention.

[Andrew Miller]

Will the Minister please add to his agenda the special tools that are needed to enable people to transfer from buy-to-rent to buy-to-live-in? A special vehicle is needed for military personnel in that category. That would help them to buy early, which would obviously help later in their careers.

[Grant Shapps]

I am grateful to the hon. Gentleman. I have not examined that so far, and I am certainly happy to add it to the agenda and give some thought to how we could assist.

We are trying to assist in many different ways. One strange problem is that, six months before someone is discharged, they get a notice of cessation, which tells them that they will be moved out of their military accommodation. There is not much connectivity between that and the local authority, which may not know that those people are about to come down the line and may be in need of housing help, advice or assistance. We intend to join that process up as best we can. That is important.

The more I have looked into the matter, the more it strikes me that the key is joining all the dots. It is not that the country is not grateful and nobody wants to help—far from it. My experience has been the opposite. However, the dots have not been sufficiently joined up. The bureaucratic barriers have got in the way. I commit us to ensuring that, in every possible way, we will seek out and actively try to destroy those barriers, taking on board the excellent ideas that have been presented in debates such as tonight’s and any others, wherever they come from. It is my goal and the Government’s intention to ensure that when those who have bravely served in the military come home, that bravery and the job that they did so selflessly is recognised by everybody in the country, particularly when it comes to housing needs.

Question put and agreed to.