Oral Answers to Questions
Debate between Grant Shapps and Jack Dromey
Grant Shapps
The hon. Gentleman is absolutely right to point out that the crisis is very real and we believe that it has been brewing over a long period. By the way, it is about a lot more than simply housing; if we look at the lives of people in chaos, we always find educational problems and family breakdown, and often financial crises are involved. A lot of work is going on across the Government, including the ministerial working group, which brings together eight different Departments. Our next report, which the hon. Gentleman can look forward to, will be published before the summer and will tackle that exact issue.
Jack Dromey (Birmingham, Erdington) (Lab)
Under Labour, homelessness fell by 70%. Under this Government, 1 million people are out of work; house building is falling; homelessness is rising rapidly; and now there is the proposal to punish young people who leave home to find a job or get an apprenticeship by making them lose their housing benefit and therefore the roof over their head. The measure was described as “absurd” by the YMCA because it will drive up homelessness and close the facilities that support those people.
The Minister for Housing and Local Government has said that homelessness is what brought him into politics. Is it not becoming increasingly clear that his legacy will be rapidly rising homelessness and should he not concentrate not on making a bad situation worse, but on building homes, creating jobs and driving down homelessness?
Grant Shapps
From the great passion with which the hon. Gentleman speaks, one would imagine that he had a long-term interest in this issue; in fact, he is the eighth Labour shadow Housing Minister whom I have faced. During the time the Opposition have been in place, guess how many Opposition day debates there have been in the Chamber about this important subject? Zero, none—there has not been a single such Opposition day debate. That is because the hon. Gentleman has a very loose relationship with statistics himself. Homelessness is lower than it was in 28 of the last 30 years—and it is less than half the level it was in the 13 years of his Government.
Homelessness
Debate between Grant Shapps and Jack Dromey(12 years, 6 months ago)
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Jack Dromey
My hon. Friend is right. I have seen at first hand some utterly tragic cases resulting from those policies. For example, a young woman, who understandably chose to remain anonymous, appeared on the “Today” programme. She lived in Waltham Forest, was married to a professional man and they had a nine-year-old. The couple broke up and stayed close, but sadly he died. She then lost her home and ended up in temporary accommodation and was told that because there was no available alternative accommodation that the council could provide for her, she would have to go from Waltham Forest to Walsall. She said, “I can’t do it. My nine-year-old is distraught because of her dad’s death. She hasn’t gone to school for the last three months, with the agreement of the school, as she recovers. I go every day to my mum, who looks after her granddaughter while I train to get back into the world of work.” I do not mind admitting that after she told me that story, with its consequences and the pain that she felt, I was in tears. It is about time that Ministers faced up to the consequences experienced by the victims of their policies.
It appears that there is consensus in this Government that housing does not matter and should not be centre stage. Labour believes strongly—we know—that it does matter. Does the Housing Minister accept how important housing is to the economy? Construction accounts for 3% of gross domestic product, £91 billion of economic output and 1.5 million jobs. Does the Minister accept that it matters to health? The annual costs to the national health service of poor housing and homelessness have been assessed at £2.5 billion. Another depressing statistic shows that, on average, the homeless on the streets die 30 years younger.
Does the Minister accept that homelessness matters with regard to educational attainment? Again, the depressing evidence shows the impact on a generation of young people brought up in poor housing or temporary accommodation.
The Minister for Housing and Local Government (Grant Shapps)
Will the hon. Gentleman remind hon. Members how many debates on housing the Opposition have called?
Jack Dromey
My predecessor and I have stood up for all that is decent in terms of putting housing centre stage, and fought hard on behalf of the homeless, the badly housed and the millions who need a decent home at a price that they can afford, whether to buy or to rent. The Housing Minister should not make flippant comments but, instead, take his responsibilities seriously, as Labour is doing.
The Minister for Housing and Local Government (Grant Shapps)
It is a pleasure to serve under your chairmanship, Mr Robertson. I offer my congratulations to the hon. Member for Westminster North (Ms Buck) on securing the debate, as well as my thanks to her for understanding my predicament this morning, trapped as I was when trying to reach the House, our inclement summer weather not letting me make the journey.
The housing debate is incredibly important, and homelessness even more so. I pay huge tribute to the hon. Lady for her long-term commitment to this subject, going back many years. Housing does not always get the attention that it rightly deserves, whether from Government or Opposition—I will say more about that in a moment—but not so with the hon. Lady, who is a passionate advocate on housing and in particular on homelessness, on which I have heard her speak often over many years.
We need to set the context. Far from being a recession “made in Downing street”, as the rather glib soundbite from the hon. Member for Birmingham, Erdington (Jack Dromey) suggests, sensible people looking at today’s circumstances appreciate that we need only to look across the water to see what is happening in Europe—the bail-out in Spain and events in France, Greece and so many other places—to understand that the problem is global and not one experienced only in the UK. In fact, the problem has a source, a reason, a cause, which was spending money that we did not have today and expecting our children to pay it back in the future. That was unsustainable; it could not be maintained forever. Only a fool imagines that we can spend money that we do not have forever. We had to do something about it, which means reducing the deficit in every area of the economy. Yes, that includes reducing the capital available to build homes—there is no point pretending that that has not been affected. Our great challenge has been to reduce the deficit while finding ways to increase the amount of house building, which, as we would not know from the contributions of the Opposition Members, fell to its lowest level since the 1920s under the previous Administration’s plans, resulting in a huge housing crisis.
We must look at the overall housing picture to understand the situation in a bit more detail. We have such enormous pressure on housing in this country because house prices were able to double in only 10 years, which is precisely what happened between 1997 and 2007. Lo and behold, what a great surprise, we end up with a large proportion of our fellow citizens finding it almost impossible to buy a house. As a result, rents and the number of people trapped in their housing position grow and grow exponentially. That did not happen overnight but over a decade and more. A lack of house building is at the very heart and is the very root of the problems of homelessness.
Jack Dromey
I am aware that the Minister struggles with his statistics, but perhaps he can take the opportunity today to confirm his Department’s own statistics. Under a Labour Government, there were 2 million new homes, 1 million more mortgage holders, 0.5 million affordable homes and, as a consequence of the kick-start programme in precisely the same kind of difficult economic circumstances as we now face, 110,000 new homes, 70,000 jobs and 3,000 apprenticeships. That is a record to be proud of. Can the Minister confirm those statistics?
Grant Shapps
The problem with statistics, as the hon. Gentleman should know, is that they can be played any which way we choose. For example, six months ago, when the Home and Communities Agency produced the house building figures for the previous six months, the hon. Gentleman made great play of a 97% reduction in the amount of affordable housing starts, although it was a natural consequence of the switch from the old programme to the new affordable rent programme. In the light of analysis of the figures six months on, he has failed to come to the House to explain that there has been 3,500% increase in starts based on his measure. I agree that we are not building sufficient homes in this country, but I am not happy with him ducking and weaving and using one set of figures six months ago and a different set of figures today in order to make a point.
Grant Shapps
I would like to make progress on the essence of this debate, because I have a feeling that we will never agree on the housing stats, although it is undeniable that house building had slumped to its lowest level since the 1920s, and starts were up by 29% in 2011 compared with 2009, so some progress has been made.
I want to focus on the excellent speech by the hon. Member for Westminster North—I have caught up on the notes—and to address some of the issues. I heard clearly her description of some of the people who are trapped in homelessness, and there is no doubt that the anxiety and pressure is immense. We have all seen that in our constituencies. I have been the Housing Minister or the shadow Minister for five years, and I challenge the hon. Member for Rochdale (Simon Danczuk) on who has visited the most homelessness projects. However, he is spot on to say that when one hears such stories and understands what is going on in people’s lives, it is often surprising and even shocking to realise how little of the problem is simply down to the roof over one’s head. I have yet to meet someone who is homeless and who does not have a catastrophic tale of complex circumstances such as family break-up, financial problems, health problems, sometimes mental health problems, having been in prison and not having got their life back together, and sometimes following active service. There is almost always a combination of some of those contributory factors.
I decided early on, following our work with the Homelessness Foundation, which was set up in 2008, that we need to make Government Departments work better together. That is why I set up the ministerial working group on homelessness. It is the first time that Ministers from different Departments—eight of them—have come together to work on these issues. They include the Department for Work and Pensions, which works closely with us.
I think we must accept that the Government and the Opposition start from slightly different positions. I passionately believe in a safety net to ensure that people are not made homeless, and Members on both sides of the House can be proud that this country probably has the best safety net in the entire world.
Grant Shapps
I will give way in a moment. It is a tribute to the Opposition as well as the Government that in this country we do not see families and children homeless on the streets. We do see single people homeless on the streets, and I will talk about the measures that I am taking to try to address that problem.
When people talk about homelessness, there is a confusing set of definitions; that has come out in our debate today. For example, when we talk about homelessness, we are usually talking about homelessness acceptances: people who have been accepted as having a right to be helped and who, in other words, will not be homeless because they will be provided with a home. Until now, that has been an offer in the social sector of a home for life, which more often than not can be passed on to a future generation.
It is still true, although one would not know it from the Opposition’s comments—I even wonder whether they are aware of it—that homelessness today is lower than it has been in 28 of the past 30 years, and half the average level during the 13 years of the previous Administration. I do not want to paint an overly rosy picture, because I am alive to the many real pressures and difficulties for families and family budgets posed by the extended downturn and the world economic problems. Opposition Members, including the hon. Member for Rochdale, rightly talked about not playing politics with these issues, but he then proceeded to play politics. It is not simple to resolve the problems, and the Government must find the right responses.
Jack Dromey
Does the Minister accept that his statement is misleading, because where we are now is a consequence of the 70% reduction under a Labour Government, and that is now in reverse with a 14% increase in statutory homelessness and a 23% increase in rough sleeping?
Grant Shapps
One of the problems is that it depends where the figures are taken from. The high point in the number of people in bed and breakfast accommodation was in 2004, which was a long time—seven years—into the previous Administration. We may say that there was a big reduction in, for example, the number of homeless people in temporary accommodation, and that may have been from halfway through the previous Labour Administration, but we must be very careful when trading figures. I am much more concerned about the outcome for people on the ground, and when I talk about people on the ground, I sometimes mean people at the bottom of the pile who are sleeping on the streets.
I am sure that the hon. Member for Birmingham, Erdington and other Labour Members feel some shame that the true size of the cohort of people living on the nation’s streets was buried under the previous system of counting. For example, if someone was sitting upright in a sleeping bag, they were not counted, and they had to be there at a certain time and so on to be counted. One of the first things I did was rip up the system that tried to claim that only 424 people in the country were sleeping rough. Any observer with any knowledge of the system, let alone hon. Members who had spent a lot of time studying homelessness, knew that that was nonsense. I have tried to reveal the true size and scale of the problem and not to bury it or hide it away, but I want to go further.
Reference has been made to the importance of the Supporting People budget. Despite the enormous pressure on reducing budgets to deal with the record deficit, we have kept almost the entire cash amount for the Supporting People programme. In fact, there was a 1% reduction in Supporting People over four years—£6.5 billion. I know that there have been problems on the ground—the hon. Member for Westminster North described them clearly—about the way in which Supporting People money has been spent. I understand that there are challenges when such funding is not ring-fenced—it was not ring-fenced in 2009—and that with other pressures the Supporting People budget has been pressurised on the ground, but it is not that the money has not been going in. Nor is it the case that we have reduced by even a penny support for homelessness. The homelessness budget was £400 million—£100 million a year—for the spending review period, and that has not been reduced.
I do not know whether it has escaped the attention of the hon. Member for Birmingham, Erdington, but during the past year, I took another £70 million, which was not in the spending review and aimed at homelessness, and put it into homelessness programmes, because I passionately believe in maintaining that fantastic homelessness support in this country. When we talk about people being homeless, we generally mean that they have been accepted as being homeless so that they can get a home, but there is a category of single people who do not receive help and support through our system. If a single person—the sort of people we are familiar with from our constituency surgeries—turns up at their local authority, under the rules that have applied until now they would simply be told, “I’m sorry, you are not covered as a preference category. We can do nothing for you.” That is not good enough, and I am sure that other hon. Members agree, so I have made £18.5 million available in the last few months to ensure that tailored advice is available for individuals, in addition to £10 million to Crisis to do the same.
I would dearly like to make the category of single people without dependants a preference category, and that should be the objective of any Government when money allows. I have not only protected all the preference categories that Opposition Members talked about—the work of Louise Casey was praised, and I echo that—I have added to those preference categories and I am trying to go further.
It is crazy that anyone who sees someone sleeping rough in this country must call the local authority; they may or may not get a response, and will not know what has happened afterwards. That is not good enough, so I am setting up a national helpline and a website to ensure that assistance can be brought directly to that individual. It will be run with the assistance of Homeless Link and will be in place by Christmas, and I hope that the whole House will join me in supporting it. When we see somebody sleeping rough, we have a terrible moment of dilemma about whether we should try to assist them directly—even if we do not know whether the money will be used in that person’s best interest—or do something else for them. Now we will be able to use the helpline, and information will be available so that people can see whether that person was helped and in what way. I think that is important.
We have also announced the “no second night out” initiative nationwide. “No second night out” came from the first cross-ministerial working group report, and I hope that Opposition Members will welcome it. The £70 million that I mentioned includes £20 million to back that programme, and it means that nobody in this country who is found sleeping on the street should ever experience a second night in that situation. I slept rough for a night to see what it was like: it is frightening and one feels vulnerable. We do not want any of our citizens to be in that position, and there is no reason for them to be because we have also allocated £42.5 million of funding to the hostel system, to ensure that new and refurbished hostel places are available.
The problem in this country, and particularly in London where we have the excellent combined homelessness and information network—CHAIN—database, is generally not about whether a hostel place is available on any given night, but about finding the individual, connecting them with the hostel, and sometimes persuading them to go into it. “No second night out” and the national reporting line is designed to help deal with that, and I am pleased to say that it has been taken up in Merseyside, Manchester, Leeds and Newcastle. It is an excellent, practical example of the way that we are trying to work.
Grant Shapps
No contribution from the hon. Gentleman would be complete without a reference to his own time as leader of housing in Hammersmith and Fulham. I think, however, that that council has a good record of looking for constructive measures that help to take people off the housing waiting list. For example, it was one of the forerunners in a programme that I launched recently with the Prime Minister to sell 100,000 homes under the right-to-buy programme. Critically, and unlike the previous programme, every penny of that money will be used to build more homes for affordable rent, and that seems to be a great solution. Not only can a family achieve their aspiration of purchasing their own property, but they can do so in the knowledge that somebody else is being taken off the housing waiting list. I have yet to hear whether the Opposition support the return to the right to buy, with the money going towards affordable houses.
Grant Shapps
I will happily give way so that I can understand the hon. Gentleman’s policy.
Jack Dromey
A straight answer to a straight question. Labour has supported the right to buy, but—crucially—we are not convinced about the bogus figures put forward that somehow suggest there will be one-for-one replacement. Councils are not able to retain the bulk of the receipts, and there is no guarantee that if a home is sold in a local authority area, a matching home will be built in the same area. We therefore fear that we will see a significant reduction in available social council stock, without any new build to compensate. Time will tell, but the sad reality will soon dawn.
Oral Answers to Questions
Debate between Grant Shapps and Jack Dromey
Grant Shapps
Unlike his predecessor, Mayor Boris has been a champion for affordable housing in London, and indeed it seems very likely that he will have delivered 50,000 homes for affordable rent. It is worth bearing in mind that fewer than that were delivered throughout the entire country under 13 years of Labour.
Jack Dromey (Birmingham, Erdington) (Lab)
The Housing Minister said that house building would be the gold standard on which this Government would be judged and that what brought him into politics was homelessness, yet we know from figures released today that house building is down 26% on average compared with what was achieved under a Labour Government, and that homelessness has risen by 23%. With millions in desperate need of a decent home at a price they can afford, will he now accept that his housing policies, like the Government’s economic polices, are hurting, not working?
Grant Shapps
The whole House has noticed that there have been no housing policies from the Opposition since the election. Housing starts in England in 2011 were up 25% compared with 2009, and in the same period the value of new housing construction was up 33% and construction orders were up 35%. Not for the first time, then, I am afraid that the hon. Gentleman has got his figures plain wrong.
Oral Answers to Questions
Debate between Grant Shapps and Jack Dromey
Grant Shapps
Although he speaks with great passion, the hon. Gentleman is fundamentally wrong, because I am not removing any of the protections from landlords or tenants in the private rented sector. It is worth remembering that actual measures consistently show that people are happier in the private rented sector than in the social sector, which might surprise him. I can also tell him that 90% of tenancies are ended by the tenant, not by the landlord.
Jack Dromey (Birmingham, Erdington) (Lab)
Both the Housing Minister and the Prime Minister, out of touch with reality, have asserted on the Floor of the House of Commons that rents are falling in the private rented sector. An analysis conducted by the House of Commons Library reveals that in 90% of local authorities in England, in all nine regions, rents are rising or staying the same. Will the Housing Minister now admit to the 1.1 million families struggling to pay their rent that he got it wrong?
Grant Shapps
The LSL survey shows that in the three months through to January rents actually fell, but we do not have to believe LSL—[Interruption.] There was rightly some scepticism there—LSL measures only buy to let—so let us instead look at the absolutely authoritative figures recently produced by the English housing survey, which show that in real terms rents have fallen in the past year.
Oral Answers to Questions
Debate between Grant Shapps and Jack Dromey(12 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text
Grant Shapps
Local accreditation and licensing schemes can be good value for local people. I attended a local accreditation in Welwyn Hatfield on Thursday evening. The scheme is very good and designed locally to address local problems; in our case, it happens to be a student population. That is the advantage of doing it locally: it can be fitted in with what the community requires.
Jack Dromey (Birmingham, Erdington) (Lab)
Rents are soaring in the private rented sector, and too many rogue landlords are ripping off tenants, undermining reputable ones. Yet earlier this month the Prime Minister said that rents were falling, and the Minister for Housing and Local Government has put up for grabs the remaining tenant protections that he has not already scrapped. Will he explain why the Prime Minister is so out of touch that he thinks that rents are falling and why he believes that basic tenant protections amount to red tape, at a time when it has never been more important to regulate the private rented sector, in order to drive standards up and rogues out?
Grant Shapps
On the first point, I imagine that the Prime Minister was probably referring to recent surveys by LSL Property Services showing two-month falls in rent levels. Those might be partially seasonal, but nevertheless rents have been falling—we will see what happens in future months. The hon. Gentleman calls for greater regulation. I will tell him what happened when there was greater regulation in the private rented sector. There used to be rent controls, for which some of his colleagues, including Labour’s London mayoral candidate, are calling, but when they were introduced, the housing rented sector fell from 55% of the overall sector to just 8%. However, since rent controls were abolished in the late ’80s, the market has doubled to 16%. I am afraid, therefore, that more regulation is unlikely to be the solution.
Housing Reform
Debate between Grant Shapps and Jack Dromey(13 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text
The Minister for Housing and Local Government (Grant Shapps)
Today, the Government have published “Laying the Foundations: A Housing Strategy for England”. The Government inherited a situation in which house building had fallen to its lowest peacetime level since the 1920s, house prices virtually doubled in the 10 years to 2010 and nearly 3 million households who wanted to own their own home and to have that sense of independence and pride were struggling to get a foot on the ladder. Indeed, under the previous Administration, the number of first-time buyers collapsed to its lowest level since the 1970s. Lenders are not lending, builders are not building and buyers are not able to buy.
Of course, the credit crunch is responsible for some of the slow-down, but I have no doubt that the problem was compounded by a centralist and bureaucratic approach to housing that made it harder and more expensive to build those much needed homes. This Government will get Britain building again by working with communities and industry, not against them. Instead of forcing homes on communities, we are giving them reasons to say yes with the new homes bonus. Instead of dictating to industry, we are addressing the barriers it faces. We have already seen some promising signs—house building starts are up by a quarter during our first 18 months in office—but we are in no doubt about the scale of the challenges ahead and we are ready to take decisive action to get our country building again.
To get builders building, we need to get buyers buying, which is why we are helping those who aspire to own. Today, I am announcing support for an industry-led indemnity scheme to provide help for first-time buyers in particular. It will help up to 100,000 people to buy new-build homes with a 5% deposit. That means that, instead of an impossibly high deposit of, say, £40,000, a typical first-time buyer would need only around £10,000 in deposit, putting ownership within the reach of the many. It is also a low-risk scheme for the taxpayer, with the deposit from the homeowner and the liability for the builder coming first.
We are reinvigorating the right to buy. Nothing did more than the right to buy to promote social mobility, home ownership and mixed communities, but I am afraid that the previous Government made vindictive cuts to that successful scheme. We are on the side of every family who wants to get on and do well, so we will raise the discounts available to social tenants who wish to buy. For the first time, we will take the receipts from additional right-to-buy sales and use them to support new affordable homes on a one-for-one basis—for every home sold, a new one will be built.
In the current tough conditions, direct support from the Government can get things moving again. Across the country there is a large number of what I describe as shovel-ready sites complete with planning permissions, but a lack of immediate support has stopped development in its tracks. Therefore, we are launching a new £400 million get Britain building fund. It is the injection needed to get building going and has the potential to support up to 32,000 jobs. [Interruption.] I hear chuntering from the Opposition Front Bench, but I can confirm that that money has not been raided from another budget. We all remember the previous Government’s habit of returning to the Dispatch Box to reshuffle money around. This is new money for the housing sector.
Alongside that support, a new £500 million growing places fund will support the large-scale infrastructure needed for housing and economic growth. Today we are also providing £150 million, which I think the whole House will welcome, to bring many empty houses back into use.
Of course, quality matters, not just quantity. That is why the new homes we are going to build will be well designed and meet high environmental standards, and why we have asked the Design Council to help advise on building better homes.
The Government can also help by making more public land available, so we are freeing up public sector land with the capacity to deliver 100,000 new homes, many of those on brownfield sites. It is also time to recognise that many of the local deals struck during the height of the boom—the so-called section 106 agreements —placed unreasonable demands that simply do not make sense in today’s economic climate. It is quite right to ask developers to work with communities to make sure that development is viable, and no one has any objection to that, but it is self-defeating if the demands are so stringent that as a result there is no development, no regeneration, no community benefit and, ultimately, no houses are built.
In addition, we will provide support for local areas that want to deliver large-scale new development to meet the needs of their growing communities, so we are putting the incentives in place. Alongside the new homes bonus, we are reforming the community infrastructure levy, so local communities will have a proper say over how their neighbourhoods are developed and improved.
We are also supporting self-build, a revolution in the making, with a custom-build homes programme. We will put in place up to £30 million to fund this country’s ability to match what happens overseas and build many more homes through self-building by people who want to develop for themselves. Last year, the largest group of builders in this country was self-builders, with some 13,000 homes, and we want to see that figure double over the years to come.
Rented housing continues to have a vital part to play in meeting our national housing need and supporting mobility, so we will work with local authorities to tackle the worst private rented properties and the worst private landlords who drag the reputation of the sector down. Satisfaction in the sector is 85%, and we want to see it grow.
Members will know that we are reforming social housing, too. Under the previous Government, housing waiting lists almost doubled, so building more affordable homes is absolutely vital, and we are introducing the new affordable rent model, making sure that vulnerable people get the support that they need, while those who can pay, pay a little more and make a fairer contribution.
It has to be easier for social tenants to move for work or to be closer to family, so we have just introduced the national HomeSwap Direct scheme, which will support them in their moves and create excellent mobility—in strong contrast to the failed scheme that no Opposition Member wants to talk about any more. One or two Members will recall it: it was called MoveUK, a scheme that the previous Government disastrously mishandled and, eventually, shut down. That was their idea of social mobility.
We have introduced new flexibility to the tenancies that can be offered to new social tenants. When councils want to continue to offer lifetime tenancies, that is fine—if it is in the best interest of their tenants. When councils want to do something more flexible, they will have that flexibility in order to manage their stock much more effectively and to give hope to the millions of people languishing on the record waiting lists that have developed over the past 13 years.
Today, I have also issued directions to the social housing regulator as a vital step towards putting all these various social housing reforms into effect. Alongside that, I am completely committed to protecting the most vulnerable and helping to prevent homelessness, and Members should be aware that I have established the first ever cross-ministerial working group, which brings together eight Departments and will help to solve the problems of homelessness.
We have already published our first plan, which is in place and will help prevent street homelessness, with the “no second night out” nationwide pledge meaning that, for the first time in this country, nobody should ever sleep on the streets for a second night—[Interruption.] I hear the right hon. Member for Greenwich and Woolwich (Mr Raynsford) say that homelessness is going up, and he is right, but the reason why is that we no longer fiddle the rough sleeping count, which his Government resolutely failed to do anything about, even though people pointed out that it was preposterous to claim that there were only—get this—424 rough sleepers, as his Government wanted us to believe, in the entire country. It was untrue, and we are tackling the issue. I have reconvened the ministerial working group, and we are producing a second report—on ending homelessness—which can be expected in spring 2012.
The measures in the housing strategy published today come from a Government who are committed to thinking in the long term about a stable housing market that works to the benefit of everyone. Taken together, these various different measures will provide a much needed boost for the housing industry, give 100,000 buyers the chance to own new properties and get their foot on the housing ladder for the first time, and lay firm foundations for housing growth in this country by creating the right legacy for future generations. I commend this statement to the House.
Jack Dromey (Birmingham, Erdington) (Lab)
Housing matters. Good housing can make a world of difference to people’s lives, but bad housing harms health and holds back kids at school.
Britain is gripped by a growing housing crisis. Does the Minister accept that he makes his statement on a day when the figures show that house building is down, homelessness is up, we have a mortgage market in which people cannot get mortgages, and rents are soaring in the private rented sector? Does he also accept that the extra £400 million to build only 16,000 more homes is but a 10th of last year’s cut to housing investment of £4 billion?
Some of today’s announcements are not without merit. The mortgage indemnity scheme is something that we have called for and was pioneered by Labour in Scotland. However, the Government must get this right. So I ask the Minister: how many lenders have signed up to the scheme? On the sale of council houses, can he guarantee today that, for every house sold, one will be built? Will local authorities be able to keep 100% of the receipts from right-to-buy sales, and will the new council homes be let at the so-called higher, affordable rent linked to market prices? Does he not accept that we cannot have a combination of falling stock and rising rents when the need for good council housing has never been greater? The announcement on the use of public land is welcome. However, does the Minister agree that it is nothing new? Press releases from his Department about where such schemes are happening demonstrate that such things were taking place back in 2006 under a Labour Government. Does he accept that this is the fifth time that the same initiative has been announced?
That goes to the heart of the problem. Today, much has been promised—much has been repeatedly promised—but, in 18 months under this Government, there has been a sorry saga of false dawns, failure and broken promises. The Minister boasted that he would beat Labour hands down when it came to house building, yet new homes are down 6% and housing starts are down 7%. Does the Minister accept his Department’s figures? The Prime Minister once said that homelessness was a disgrace and, together with the Minister, he committed to tackling the issue. Since the general election, homelessness has risen by 10%, yet under Labour, it fell by 70%. Does the Minister agree with Crisis that his policies will make that situation worse?
The Secretary of State for Communities and Local Government has said that he wants to see more young families able to buy their first home, as he did. Yet research by Scottish Widows demonstrates that the average age of the unassisted first-time buyer will increase by seven years, from 37 to 44. However, one promise will be kept. When the Minister for Housing was the shadow Minister for Housing, he said:
“it’s easy for a housing minister to catch your eye with a headline, but much harder to deliver more homes.”
He has been true to his words. After 137 housing announcements, the facts are clear: on every measure, this Government are failing to deliver on housing. The contrast with Labour in government could not be more dramatic. There were 2 million new homes, including 500,000 affordable homes; 1 million families buying their own homes; 1.5 million social homes brought up to standard through the decent homes programme; and tenants’ rights were protected.
Urgent action is needed now. Will the Minister accept that we should repeat the bankers’ bonus tax, so that we can build 25,000 new affordable homes and create 100,000 jobs for our young unemployed to kick-start the economy? Will he support our proposal for a 5% cut to VAT on home improvements, as that would mean that more homes were in a better condition?
There is a human cost to this growing housing crisis: the damp flat where the baby is always ill; proud parents desperate because the kids they love cannot get a mortgage; small construction companies struggling to stay afloat; unemployed building workers desperate to get a job. Those people have had enough of false dawns, grand plans and press launches followed by broken promises and a failure to deliver. Sadly for them, a decent home at a price they can afford has never been further away than it is today.
Oral Answers to Questions
Debate between Grant Shapps and Jack Dromey
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.