Housing and Planning Bill

Greg Clark Excerpts

Tuesday 12th January 2016 Commons Chamber

[The Secretary of State for Communities and Local Government (Greg Clark)]

I beg to move, That the Bill be now read the Third time.

It is customary on these occasions to thank all those involved in the consideration and scrutiny of the Bill in question. On this occasion, I would like to pay particular tribute to the Minister for Housing and Planning for having moved so elegantly that historic motion for the first time in this House. I also commend the Leader of the House of Commons for giving us the opportunity to carry out our consideration of the Bill in this way. Throughout our proceedings, the debate has been rich and vigorous from beginning to end. Those of us who were here last week for the first day of its Report stage will know that there was no let-up in the passion—or indeed the number—of the contributions, despite the lateness of the hour.

Before embarking on the traditional congratulations, however, I suggest to the whole House that a degree of humility would be in order on the part of us all. Housing and planning policy has been debated in this House and in the other place for decades, yet for decades this country has not built the number of new homes that we need, despite the improvements of recent years, including the 50% increase in new housing starts and the fact that planning permissions now stand at more than 200,000 a year. The last time we consistently built 200,000 homes a year was back in 1988.

[Clive Efford]

May I take the Secretary of State back to his comment about humility? Will he take this opportunity to apologise to council tenants for not informing them at the general election of the Conservatives’ intention to take away their secure tenancies and for introducing that measure only towards the end of the Bill’s Report stage? Council tenants were not given that information before they went to vote in the general election.

[Greg Clark]

Going back to 2010, the Prime Minister thought it was reasonable that when we were allocating homes and social tenancies, we should amend the idea that someone should inherit, without conditions, a tenancy. That business was notified as much as five years ago.

Evidence of the effects, over many Administrations, of not building the number of homes we have needed for many decades has been seen in the lives of those who could, should and want to be homeowners, but have been denied the opportunity that many of us have had. Those who say that we already build enough homes or that home ownership is not important would do well to remember that.

[Mrs Maria Miller (Basingstoke) (Con)]

I applaud the Secretary of State’s commitment to house building, to make sure that more of our constituents can be homeowners. I also applaud the Minister for Housing and Planning’s undertaking to look further at the quality of that house building in the response he made to my new clause 1 in the initial parts of our debate on Report.

[Greg Clark]

My right hon. Friend is absolutely right in what she says, and she has made an important contribution to the proceedings. It is vital that we see an improvement in the quality of design of our housing stock. One feature of the last housing bubble that was experienced before the Government came into office was a dearth of new family homes. Instead, most of the increase in housing that came during that time was in the form of flats. That arose from the particular incentive structure in place, whereby units, rather than any suggestion of quality, were important. The points she made have been well noted; in fact, in some of the announcements the Prime Minister made in recent days we have stressed the importance, in regenerating our estates, of adhering to standards of the highest quality.

[Andy Slaughter]

It is no surprise to hear that the Secretary of State wants to move away from talking about council tenancies, because his treatment of them is a disgrace. He was not asked about inheriting succession rights; he was asked about security. Why can council tenants not continue, as happened under the Housing Act 1985, introduced by Margaret Thatcher, to have security in the same way that anybody else would want in their home? The situation is appalling. Why is he only building starter homes, which nobody can afford, in Old Oak in my constituency, instead of social homes, which people need and want?

[Greg Clark]

The hon. Gentleman is completely wrong, and if he looked at our housing plans, he would see that they include building 100,000 houses for affordable rent as well as 200,000 starter homes. It is right, and it is the mandate on which this Government were elected, to provide homes for people who aspire to own their own home, as well as for those who want to rent. One failure during recent years has been that people who wanted to own their own home, in the way that many Members of this House have, have been denied that opportunity.

[Mr Bacon]

Does the Secretary of State agree that the hon. Member for Hammersmith (Andy Slaughter) is wrong not only because this Government are allowing the building of more affordable homes, but because this Bill provides for self-build and custom house building on a larger scale than ever before—and this can also include social housing for rent?

[Greg Clark]

My hon. Friend is absolutely right: we need homes provided right across the country, of all the different types and tenures that our constituents and residents want. There has been a dearth of affordable homes for first-time buyers for an increasing number of years, which is why the commitment in our manifesto to provide starter homes for first-time buyers is such an important part of our platform, which we are implementing with this Bill.

[Graham Stuart]

Does my right hon. Friend agree that the most important single thing we can do is to get building, because it is only by supply outdoing demand that prices will come down, and that all the programmes we had in the Labour years, from key worker housing to all the rest of it, were band aids on a massive wound? It is building that we need. That is what will make housing more affordable and that is how we are going to deliver a true one nation Government.

[Greg Clark]

My hon. Friend is right to say that we need to get Britain building again, and we are doing so, with a 25% increase in starts in the past year. We need to do this right across the country. I would have thought that all Members of the House, including Labour Members, shared in the warm welcome given across the housing sector, including by housing associations and by builders big and small, to the announcements the Chancellor made in the spending review, which double the housing budget. This is the biggest programme of affordable house building that we have seen since the 1970s.

[Andrew Gwynne]

Of course, what is affordable to the Secretary of State’s constituents might not be affordable to mine. Does he share my concerns that what we will see, as perhaps an unintended consequence of his measures, is the removal of properties from the social rented sector and their appearance in the private rented sector, costing more to the public purse in the long run?

[Greg Clark]

No, we want to see more homes of all types. We have committed to build 1 million homes over the next five years, which the previous Labour Government signally failed to do. In fact, when they were in power, the number of homes that were built in a single year fell to 88,000, which was the lowest number since the 1920s.

[Graham Jones (Hyndburn) (Lab)]

At the weekend, the Prime Minister said on the “Andrew Marr Show” that he expected a million properties to move from the social rented sector to private ownership. The Secretary of State is talking about building a million properties. Where are the extra social rentals coming from? It seems that the Prime Minister is saying not only that there will not be any extra, but that there will actually be a reduced number of social rented properties. Does he not see that the maths do not add up?

[Greg Clark]

The reduction in social rented properties happened under the previous Labour Government, when the stock fell by 400,000. Our determination is to build more homes of all types, so that we can house the growing number of young people who want to own and rent homes of their own.

[Mr Prisk]

On council houses, is not the real scandal that, in 13 years, the previous Labour Government failed to build the number of homes that we built in five?

--- Later in debate ---

[Greg Clark]

My hon. Friend is absolutely right. As Housing Minister, he made a major contribution to the revival in house building that was necessary after the crash that took place under the previous Labour Government. We have seen, over the past five years, house building recover from the record lows of the previous decade, but, as this Bill makes clear, these are the first steps away from a much longer record over successive Parliaments. Indeed, the connection between supply, affordability and ownership is obvious to all, and yet for decades successive Parliaments and Governments failed to find a lasting solution not because they did nothing, but often because they failed to tackle the underlying issues.

In the previous Parliament, the Government’s focus was on recovery from the worst housing crash since the second world war, but in this Parliament, our focus has shifted from rescue to reform. Though wide-ranging in scope, the Bill does not represent the entirety of what needs to be done. As the Chancellor made clear in the autumn statement and as the Prime Minister said last week, the Government are committed to a comprehensive and ongoing programme of reform, addressing the whole of the problem and not just part of it. This Bill is of central importance to the overall strategy.

[Anna Turley (Redcar) (Lab/Co-op)]

I appreciate the Secretary of State kindly giving way. He talked about the previous Labour Government’s record, but could he explain why funding for affordable homes was slashed by 60% when his Government came to power in 2010?

[Greg Clark]

The record of the previous Government is very clear: we built more affordable homes, specifically more council houses, than the previous Labour Government did in 13 years, so we will take no lessons from the hon. Lady.

[Tristram Hunt (Stoke-on-Trent Central) (Lab)]

Will the Secretary of State confirm at the Dispatch Box that, under this Bill, there is no block to foreign buyers purchasing council housing built for British people down the generations? As a result, we will see the sell-off to foreign investors of properties that were built for workers in this country.

[Greg Clark]

The hon. Gentleman might not be aware that restrictions are in place that prevent, for a considerable period, homeowners who have exercised the right to buy selling on. In fact, foreign ownership of UK property is still at a very low level. I do not recall the previous Labour Government introducing any particular restrictions on that. Let me point to two flagship manifesto commitments that the Bill implements, namely the extension of the right to buy to housing association tenants and the provision of 200,000 starter homes by 2020. The Bill is making good the pledges that were made directly to the British people and that were backed by the British people in the general election.

[Catherine West]

That particular element of the Secretary of State’s scheme does not work in high-value areas where people, because of the sort of work that they do, will never ever be able to get a mortgage. Therefore, there are certain people who will never be helped by his Bill.

--- Later in debate ---

[Greg Clark]

I hope that, on behalf of her constituents, the hon. Lady will welcome the announcements that were made to extend the Help to Buy scheme in London to provide greater help there. In fact, housing associations, including those in her constituency, have welcomed enthusiastically one of the key features of this Bill, which is the provision that enables them to provide her residents with the right to buy their home and, at the same time, to build more homes in London.

[Robert Neill]

On that point, does my right hon. Friend recognise that it is thanks to this Bill, the work of the current Mayor of London and the initiative of my hon. Friend the Member for Richmond Park (Zac Goldsmith) that we are seeing consistently more affordable housing being delivered in London? That is in contrast with what happened under a socialist Mayor and a socialist Government that persistently under-delivered for London.

[Greg Clark]

Indeed, and one of the proud pieces of the legacy of the current Mayor of London, our hon. Friend the Member for Uxbridge and South Ruislip (Boris Johnson), is the opportunities he has given across the capital for people to own and rent their own home.

Of course, there are few pieces of legislation that cannot be improved by the deliberations of this House. This is a long Bill and I thank Members on both sides of the House for their informed contributions, their attention to detail and, on occasion, their perseverance. That applies especially to the members of the Public Bill Committee, adroitly chaired by my hon. Friend the Member for North Wiltshire (Mr Gray) and the hon. Member for Mansfield (Sir Alan Meale). I am also grateful for the expert guidance of my departmental officials and to the Clerks of the House.

Finally, allow me to thank my own formidable Front-Bench team, who conducted this Bill through all its proceedings with precision and tenacity and who have strengthened an already important Bill. In the same spirit, allow me to acknowledge the contributions of Opposition Members who served long into the night not just on Report but in the Bill Committee. In contrast to the Cities and Local Government Devolution Bill, which I am informed has completed its passage unamended in the House of Lords this very afternoon, we might not have greatly expanded the common ground between us during our deliberations on this Bill, but I thank the Opposition for their contributions to a debate that has at times generated light as well as heat.

I join my hon. Friend the Member for Bromley and Chislehurst (Robert Neill) in recognising the notable contribution of my hon. Friend the Member for Richmond Park (Zac Goldsmith). London is a city like no other and it has a property market to match. In view of the special challenges and opportunities, it is right that proceeds from the sale of vacant high-value assets should be used to provide new affordable homes in London on a two-for-one basis. I am delighted that the Bill has been amended fully to support that objective, and I am grateful to my hon. Friend the Member for Richmond Park for his advice and advocacy in this matter. London is fortunate to have such a tireless and effective champion.

Of course, it is not only Members of this House who have contributed to the development of the Bill. I would like to put on record my gratitude to all those beyond this Chamber who have made their mark. That includes local government leaders of all parties, experts in planning policy, tenants’ representatives and the housing sector in all its diversity. Indeed, nothing has made a greater contribution to the development of the Bill than the historic deal agreed last year between the Government and the housing association movement. The voluntary agreement on right to buy not only speeds up the delivery of a commitment made to the British people at the election, but provides the basis on which housing associations can play a major role in the delivery of new affordable homes for both rent and purchase. I would therefore like to express my particular thanks to the National Housing Federation and its chief executive, David Orr.

The Bill has been the subject of intensive scrutiny and debate, with more than 40 hours in Committee and a further 15 on the Floor of the House. Furthermore, it has been a debate in which words have had consequences. The Government have listened and, as we should, we have acted on what we have heard. Significant and strengthening changes have been made as a direct result and thus, subject to today’s vote, the Bill goes to the other place in good shape, buttressed by a clear electoral mandate. I commend it to the House.

[Madam Deputy Speaker (Mrs Eleanor Laing)]

As we complete this historic new procedure, I propose the Question that the Bill be now read the Third time.