Housing

Iain Duncan Smith Excerpts

Tuesday 9th April 2019 Commons Chamber

[Kit Malthouse]

No.

In addition to our affordable homes guarantee scheme, which gives £3 billion of guaranteed support, making it cheaper and easier for housing associations to raise funds and get building, we are increasing supply as the means to make the most of the space we already have, including land that has already been built on. With that in mind, the planning proposals and consultations announced in the autumn statement aim to give people more flexibility to build upwards on existing buildings and in converting commercial properties. This is a positive step that ensures we conserve precious land, accelerate supply and help to revive our high streets.

We are also looking at how we can close the gap between planning permissions and homes built, and we will be taking action on the back of the review by my right hon. Friend the Member for West Dorset (Sir Oliver Letwin) to do just that.

[Mr Iain Duncan Smith (Chingford and Woodford Green) (Con)]

I want to take my hon. Friend to one particular issue. One of the big problems we have had is that the building regulations are set against a new type of homes—prefab homes made of wood or steel—which can be built throughout the year, which would accelerate the whole building programme and which are ecologically far better than brick-built houses. Yet people always tell me that they have to make all sorts of adjustments just to meet the building regulations. Will my hon. Friend undertake to look at that, because these homes would accelerate the whole process of house building and make it much more affordable too?

[Kit Malthouse]

My right hon. Friend, with his usual wisdom, has prefaced the part of my speech I am moving on to. He is quite right: we believe that modern methods of construction hold enormous potential not only to produce more homes but to produce them faster and better. I recently visited a factory in Walsall, in the west midlands, where Accord is building 1,000 homes a year using modern methods of construction. So good are the environmental standards that those homes for social rent have lower arrears, because people can afford to heat them.

That is something we are backing through our £4.5 billion home building fund, £2.5 billion of which is to champion small and medium-sized enterprises, custom builders and more diverse builders to get modern methods of construction and other cutting-edge tech into the mainstream. The fund has already allocated all of the original £1 billion of short-term funding. Over 94% of the funding contracted to date has gone to SME builders. We expect the fund to deliver more than 30,000 homes—around 5,000 more than the original target.