Oral Answers to Questions

Grant Shapps Excerpts

Monday 31st October 2011 Commons Chamber

[Mr David Amess (Southend West) (Con)]

2. What steps his Department is taking to dispose of surplus public sector land and offices.

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

We are leading a cross-Government programme to release surplus public land for up to 100,000 homes.

[Mr Amess]

I am delighted that my right hon. Friend envisages all that surplus land being released, but will he please explain how the finances will flow to provide those houses and say something about social mobility and housing?

[Grant Shapps]

My hon. Friend is absolutely right: it is one thing to release brownfield land; it is another to get it built on. That is why we introduced the innovative build now, pay later regime, which will get homes on those sites quickly, with developers paying for them only when the receipts start to come in. That will do a great deal for social mobility, as will the home swap direct scheme, which was launched last week, and which I noted the Opposition criticised.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

The Minister will probably guess that I was against the abolition of regional development agencies. Some of us are worried about the arrangements that were made to enable staff to start social enterprises, with generous endowments from the RDA, who then go into competition with existing players in the third sector.

[Grant Shapps]

The hon. Gentleman need not be too concerned. We believe that the best way of getting homes built—and the most built—is proper free competition between different providers, different developers and different organisations, which would range from co-ops to registered social landlords and commercial developers. We see no problem with that, and we have gained some sense that it is working. After all, more affordable homes for rent were built in the first year of this Government than at any time since John Major was in power.

[John Robertson (Glasgow North West) (Lab)]

3. What the monetary value was of (a) council tax relief for second homeowners and (b) discounts on council tax for empty properties in England in the latest period for which figures are available.

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[Mr Aidan Burley (Cannock Chase) (Con)]

4. What estimate he has made of the number of social housing units occupied by people earning over £100,000 per annum.

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

We estimate that there are about 6,000 households in social housing where the person named on the tenancy agreement and their partner have a combined income over £100,000 a year—something we intend to tackle through the pay to stay scheme, whereby those on six-figure incomes who wish to stay in their properties can pay to stay there.

[Mr Burley]

The 2,345 people currently on the housing waiting list in Cannock Chase will be gobsmacked to learn that an estimated 6,000 people still living in council houses are paying a subsidised rent despite earning more than £100,000 a year—four times the average salary of my constituents. With so many people in need of housing languishing on waiting lists, what assurances can the Minister give me and my constituents that those people who earn more than him will be forced to pay their way like the rest of us?

[Grant Shapps]

My hon. Friend points out a real problem with the housing system—that it is possible to earn a six-figure salary, sit on the Labour Benches and still occupy a home built for some of the most vulnerable people in society, who deserve those homes. We will allow the pay to stay scheme to go ahead, meaning that people can stay in their homes and pay the market rent so that we can use all the money to build more affordable homes for people who really need them.

[Ms Karen Buck (Westminster North) (Lab)]

If the Government are so keen on restricting social housing to those on low incomes, how does the Minister explain the affordable rent regime? Is it not the case that in local authorities such as my own, even at 65% of market rents, the income required—without benefit—to pay for an affordable family-sized house is £77,000 a year?

[Grant Shapps]

We are keen to protect people on low incomes, not on high ones, as the hon. Lady suggested. The point about the housing benefit changes is that many of her constituents, along with mine and everyone else’s, will be asking how it can be fair for people in receipt of housing benefit to live in homes and streets that people on ordinary salaries cannot possibly afford to live in. That is the system that we are going to fix; when the Opposition were in government, they used to support that policy.

[Mr John Leech (Manchester, Withington) (LD)]

Will the Minister ensure that the revenue raised by pay to stay is ring-fenced for social housing?

[Grant Shapps]

I can provide a little more information. We expect some tens of millions of pounds to be raised by pay to stay. Those with six-figure incomes will pay a market rent to stay in their homes, and we will use every single penny of the money to build the more affordable housing that the most vulnerable people in society deserve and need.

[Julie Elliott (Sunderland Central) (Lab)]

Does the £100,000 to which the question refers constitute household or individual income?

[Grant Shapps]

It constitutes the income of a household consisting of two partners.

[Harriett Baldwin (West Worcestershire) (Con)]

5. What the percentage change in band D council tax was in (a) England and (b) Worcestershire between 1997 and 2010.

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[Matthew Hancock (West Suffolk) (Con)]

9. What steps he is taking to help local authorities reduce the cost of their property.

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

First, let me pay tribute to my hon. Friend for his great work in the Westminster Sustainable Business Forum. Public sector assets are worth about £385 billion, almost two thirds of which are owned by councils.

[Matthew Hancock]

I am grateful for the Minister’s reply. Is he looking forward to sending his boss along to next week’s launch of the second leg of the review of how much can be saved by reforming the way property is used by local public sector agencies and local authorities, which will highlight that this is about not just bricks and mortar but increasing productivity and spending money more wisely?

[Grant Shapps]

I have no doubt that my right hon. Friend the Secretary of State will enjoy that visit enormously, especially if good food is on offer. My hon. Friend is on to something here: public sector assets are worth £385 billion, and two thirds of them are council-owned. If a saving of just 20% in running costs were made, that could save about £35 billion a year in receipts over 10 years. There is an enormous amount of money to be saved, therefore, and I commend the work that has been done.[Official Report, 21 November 2011, Vol. 536, c. 2MC.]

[Kerry McCarthy (Bristol East) (Lab)]

10. What recent representations he has received from environmental organisations on the national planning policy framework.

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[Tony Baldry (Banbury) (Con)]

14. What steps his Department is taking to support home ownership.

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

This Government are, of course, committed, first, to ensuring that interest rates remain low for as long as possible, so we have been tackling the deficit to help first-time buyers. In addition, we are helping 10,500 first-time buyers through our FirstBuy scheme and 100,000 new right-to-buy tenants currently in council houses will own their own homes.

[Tony Baldry (Banbury) (Con)]

My right hon. Friend will be aware of the gap between deposit aspiration and deposit actuation for first-time buyers in Banbury and Bicester. Will he update the House on how the FirstBuy scheme will support young first-time buyer families in my constituency?

[Grant Shapps]

People are having to save such large deposits for their homes and we are keen to do something about that, so the FirstBuy scheme ensures that they need to save only 10% rather than the current average of 20%. I am pleased to tell my hon. Friend that 169 homes are available in his constituency under the scheme.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

At a time when the Scottish Widows research shows that the average age of first-time unassisted buyers is set to rise to 44, is the Minister at all concerned that he might be just a little too complacent in his response?

[Grant Shapps]

First, just to correct the figures, we think that the current average age is about 37. There was a report suggesting that over the next 20, 30 or 40 years the figure might increase unless action is taken. We are absolutely focused on taking that action, which is why, as we have discussed, 100,000 homes are being sold through the right-to-buy scheme, with 100,000 affordable homes being built. This afternoon, we have discussed the 100,000 homes on Government land and, of course, the 170,000 homes through the new affordable homes programme, which the Under-Secretary of State for Communities and Local Government, my hon. Friend the Member for Hazel Grove (Andrew Stunell) mentioned. Yes, we are confident; we are doing many of the things that never happened under the previous Administration.

[Jack Dromey (Birmingham, Erdington) (Lab)]

Because the Government have mismanaged the economy, consumer confidence, house prices and house building are falling, and we have a mortgage market in which people cannot get mortgages. Were it not for the 60,000 homes that were commissioned and paid for by a Labour Government but built in the past 12 months—Labour’s legacy—the house building industry would have been on its knees. Will the Housing Minister now back Labour’s call to repeat the bankers’ bonus tax in order to build 25,000 homes and create tens of thousands of jobs and apprenticeships? Will he also work with lenders and the house building industry to introduce a mortgage scheme that will offer hope to those who wish to buy their own home that they will be able to realise their dream?

[Grant Shapps]

I welcome the hon. Gentleman to his new position. He will be the eighth housing spokesman or deputy on the Labour side whom I have faced either in government or in opposition. I hope that he stays there longer than the previous incumbents. I think the main questions are about the new homes bonus, the HomeSwap Direct scheme, the opposition to £100,000-salaried tenants in council homes and whether the gap in policy and the constant switching of Ministers are going to come to an end, because without that the Opposition have nothing to say about housing policy at all. We are starting to get homes built in this country for the first time in years.

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

Every question from the Opposition seems to involve an attack on the new homes bonus, which will pay the same amount as last year—nearly £200 million—for new homes started, in addition to another sum which may well be similar again, and in addition to an additional £20-plus million for the affordable housing element of the new homes bonus. The House needs to understand whether or not the Opposition support a bonus being paid when new homes are built.

[Anne Marie Morris (Newton Abbot) (Con)]

T6. Does the Minister agree that the key to opening up public sector procurement opportunities for small and micro-businesses is to ask local authorities to ensure that companies that are experts in their fields are not effectively excluded by the use of consolidated contracts that favour larger businesses that might be a jack of all trades but a master of none?

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[Lilian Greenwood (Nottingham South) (Lab)]

T5. As a member of the armed forces parliamentary scheme and a strong supporter of the British Legion, I am concerned to ensure that returning service personnel receive the strongest possible support. Why, therefore, did the Minister admit on 10 February that his Department had done nothing to assess the housing needs of that group?

[Grant Shapps]

I am not sure whether the hon. Lady intended to suggest that I had made that comment, but let me reassure her that I have held a returning forces summit to talk about and act upon those people’s rights to get into new-build homes and to get to the top of the waiting lists. I can further tell her that it is my intention to ensure that they have No. 1 priority when we launch the tenancy directions in a week or two. It is the absolute priority of our Department to ensure that returning personnel get every advantage when it comes to new homes.

[Neil Carmichael (Stroud) (Con)]

T8. With reference to planning policy, what measures are the Government going to introduce to ensure that councils can encourage businesses to thrive and prosper, and encourage new ones to come to their area?

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[Mr Nick Raynsford (Greenwich and Woolwich) (Lab)]

May I draw attention to my interests in the register?

Is the Secretary of State aware that Notting Hill Housing Trust, a housing association, is reported to be marketing overseas some of the homes that it is currently building? Although it may be understandable for private builders facing the very serious crisis in selling properties to do this, is it not totally unacceptable, at a time of chronic need for housing for British people here in this country, for a housing association to be selling homes overseas? What is the Minister going to do about it?

[Grant Shapps]

I am grateful to the right hon. Gentleman, who has a long history in housing, and I will certainly undertake to look into the subject that he has raised. Let me mention something else that has come to my attention. A lot of people who are in council houses have second homes, and they rent out their main home or the council home. That is another scandal that I am sure he will appreciate our bringing to an end.

[George Hollingbery (Meon Valley) (Con)]

I very much welcome the establishment of the new national social housing HomeSwap website. Is it not a shame that the shadow Housing Minister describes it as a “gimmick”, particularly since his party destroyed the last one?

[Grant Shapps]

The opportunity for people in social housing to be able to swap homes in exactly the same way as in the private rented sector, or indeed for home owners, is absolutely invaluable. The scheme says a lot about this Government’s intention of ensuring that social mobility applies to all. It is a great pity that the Opposition spokesman criticised it, given that it will give people the opportunity to move for social reasons, family reasons, and, of course, work.

[Joan Ruddock (Lewisham, Deptford) (Lab)]

The Government have made much of localism. Does the Minister believe that it is appropriate that local people and Lewisham council can prevent further betting shops in Deptford high street, given that we already have eight betting shops and four pawnbrokers? Will he revise the Use Classes Order 2010?