Housing

James Cartlidge Excerpts

Tuesday 15th December 2015 Commons Chamber

[Brandon Lewis]

To be fair to the right hon. Member for Wentworth and Dearne, he quoted me spot on in his opening remarks. It is absolutely still our ambition to build 1 million homes. We need to be ambitious about building new homes, but this is not solely about the number of new homes. We are determined not just to halt but to reverse the slide in home ownership that the Labour party oversaw. With so many people being kept off the housing ladder for so long, we are determined to deliver on our promises quickly.

[James Cartlidge (South Suffolk) (Con)]

On the measures to increase home ownership, which contrast with the inaction from the Labour party, is not one of the most radical measures we have introduced to support first-time buyers the levelling of the playing field between them and the people who wish to buy property to rent out to those same frustrated first-time buyers?

[Brandon Lewis]

My hon. Friend makes a very good point—one he has raised a number of times in the House. I am pleased we are able to move forward and deliver on something that will, as he rightly says, level the playing field.

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[Mr Bacon]

I understand that. It is a very good reason for not being in the Chamber. I enjoyed the right hon. Gentleman’s speech, particularly the reference to the money inherited from Labour. There was no money. I do not think he got the memo written by the right hon. Member for Birmingham, Hodge Hill (Liam Byrne) that played a significant part in the general election. The Prime Minister carried it round with him the whole time. The memo said that there was no money.

We have been facing not five, but 50 years of failure from all Governments, who have worked on the flawed assumption that only the Government can solve the problem. For 50 years Government have been part of the problem, getting in the way of the supply of housing being allowed to rise to meet demand. We saw quite a lot of finger-wagging from the right hon. Member for Wentworth and Dearne, but we heard nothing in the way of solutions. I listened to Opposition MPs carefully for many weeks in the Housing and Planning Bill Committee and I heard a lot of whingeing, but no real solutions. It is as if they have never asked themselves why the supply does not rise to meet demand. We do not talk about the shoe crisis, the jeans crisis, the DVD crisis or the chair crisis. Everyone in this Chamber is wearing a pair of shoes—including you, Madam Deputy Speaker, and if I may say so, yours are very nice shoes.

[James Cartlidge]

I cannot see them.

[Mr Bacon]

My hon. Friend should move along a bit. They are very nice.

No one says we need a national shoe service in order to solve the problem. We have a broken model, and it is this Government who are seeking to fix it. What I find so depressing from the Labour Benches is the paucity of ideas, the sheer paucity of radicalism. Almost every amendment proposed from the Opposition Benches during the Committee stage of the Housing and Planning Bill would have had the effect of slowing things down—sand in the gears, a spanner in the works. Labour Members do not seem to recognise that they are seeking to make the central problem—the problem of supply—even worse.

Last week Kevin McCloud addressed the all-party self-build, custom-build and independent house building group at our No. 10 summit, and I am very pleased that he was able to do so. He said:

“The consumer has been on the receiving end of a pretty poor deal. We build some of the poorest, most expensive and smallest houses in Europe. That’s not something to celebrate.”

Yet according to Ipsos MORI, 53% of the adult population would like to build a house at some point, 30% would like to do so in the next five years, and more than 1 million people would like to buy a site and start in the next 12 months. This can be done at scale. Adri Duivesteijn in Almere in the Netherlands has proved that it can be done, with serviced plots for over 3,000 dwellings. Cherwell District Council is now doing it in Oxfordshire, with over 1,900 serviced plots. This is the way to help supply rise to meet demand, putting the customer at the centre. Chapter 2 of the Housing and Planning Bill, on self-build and custom house building, will make that happen. The right hon. Member for Wentworth and Dearne did not mention chapter 2 or self-build and custom house building.

There are very legitimate reasons why local authorities might want to have and maintain affordable housing. In my view, they could and should use some of their £22 billion of reserves to establish, promote and grow mutual housing co-operatives for affordable rent. That is completely normal in Berlin, where it is called genossenschaften, and elsewhere on the continent. These arrangements are not relevant in terms of right to buy because they involve people entering into contracts with each other to form part of a co-operative. I thought there was a thing called the Co-operative party, but we heard nothing about this in the Bill Committee; I was the one talking about it. Interestingly, the local authority leader who showed the most interest in it when asked about in-perpetuity social rents in big cities was the Conservative leader of Westminster council, Philippa Roe, who said very seriously, yet with a gleam in her eye, “Yes, we’re looking at that.” From Labour Members, I am afraid we heard nothing.

We need vision and imagination, and the Bill will make that easier to achieve. Instead of building the most poorly performing, most expensive and smallest homes in Europe, we should do things differently. We should use our imagination and our knowledge to make the best places that we can, with the best-performing homes that we know how to build, in the most beautiful surroundings that we know how to create, where people will be able to find an education, find the skills they need for life, find a job they enjoy, perhaps start their own business, put down roots, build a house or have someone build a house to their own design, raise a family, and be part of a community. These are all normal human aspirations. We have to make it normal to achieve them, so that housing supply rises to meet demand here in this country, just as it does in the rest of Europe. That is the vision that we should pursue, and this Government, with the Housing and Planning Bill, will make it happen.

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[James Cartlidge (South Suffolk) (Con)]

I should like to begin by declaring my interest. I am a controlling director in a mortgage broker and property portal dedicated to shared ownership, and chairman of the all-party group on housing and planning.

When we talk about housing at the moment, there is obviously a focus on new build and on supply, but as I said in my intervention on the Minister, I still think that one of this Government’s most radical changes is the one we are making to buy to let. In the last Labour Opposition day debate on housing, in June, I spoke on buy to let and said that I was looking for three changes from the Government, relating to the rate of stamp duty, to tax relief and to mortgages.

Two of those changes have been delivered, including a measure on stamp duty. I said that it was completely unfair that a first-time buyer should pay the same rate of stamp duty as someone buying their 25th portfolio buy-to-let property or a second home as a holiday home. The Chancellor has had the courage to make that change, which no Labour Chancellor ever made. On tax relief, I said that it was wrong that first-time buyers or other home owners, who no longer have mortgage interest relief at source—MIRAS—should not have tax relief when buy-to-let landlords do so. Again, we are addressing that.

Of course the buy-to-let change is controversial, and we are now experiencing a backlash from The Daily Telegraph and others against it. In the one minute and 44 seconds remaining, I want to remind hon. Members why it is necessary. The Bank of England’s Financial Policy Committee’s minutes show that the rate of credit loss on buy-to-let mortgages in the UK has been about twice that for residential mortgages, despite the fact that 75% of buy-to-let lending remains interest only. In the past year, there has been £28.5 billion of lending with no repayment of the debt. For me, any area of the economy that requires tax breaks and non-repayment of debt to survive is unsustainable. The buy-to-let sector has not been sustainable.

That does not mean that we have something against those who wish to buy a property to let. I accept that some people use such properties as their pension, and some are saying, “It’s my pension. Why are the Government hitting me?” One change that must come out of this proposal is that we have to talk, as a country, about the fundamental issue of pension reform. If we can do that, it will represent an important gain. Luke Johnson has written in The Sunday Times:

“We cannot prosper as a nation of buy-to-let landlords; we must also produce goods and services and export to pay our way in the world.”

That means investment—not just foreign investment but our own investment—as well as a higher savings ratio and a more sustainable economy. I believe that a key part of that will be a more sustainable housing market in which first-time buyers have a reasonable chance of buying the properties which, at the moment, are being taken from them by people who will then rent them out to those same people who want to be first-time buyers. This is a fair move and it is being brought in by this radical Conservative Government.

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[Chris Philp (Croydon South) (Con)]

I draw attention to my entry in the Register of Members’ Financial Interests.

I would like to start by replying to some of the points the shadow housing Minister, the right hon. Member for Wentworth and Dearne (John Healey), made at the beginning of the debate about the respective track records of this Government and the previous Government. In particular, I would like to draw attention to the number of housing starts across the country as a whole in the past year, which was 165,000, compared to the right hon. Gentleman’s last year as Housing Minister when the figure was just 124,000—a 33% increase by the current Government, which is an extremely impressive record.

The hon. Member for Sunderland Central (Julie Elliott), who I see is in her place, drew attention to affordable housing. I am similarly pleased to report to the House that, according to House of Commons Library figures, last year 67,000 affordable houses were delivered compared to just 58,000 in the last year of the previous Labour Government. I think there is a record to be proud of.

I was privileged to serve on the Housing and Planning Public Bill Committee for 17 sittings with the hon. Member for City of Durham (Dr Blackman-Woods), but not, I regret, the right hon. Member for Wentworth and Dearne, who did not grace us with his presence. I was disappointed by the lack of new ideas in his speech earlier. I thought we might have heard more from a shadow housing Minister.

There is a great deal to welcome in the Bill, not least the idea that every single local authority must have a local plan by 2017; the local development orders to give outlying planning consent on brownfield sites, which my hon. Friend the Member for South Ribble (Seema Kennedy) mentioned a few moments ago; and the London Land Commission bringing forward public sector land. The GLA has done that successfully: 98% of its land is being brought forward. I suggest to the Minister that the London Land Commission be given more powers to take hold of the surplus public sector land identified and make sure that organisations such as the NHS, Network Rail and Transport for London do not shilly-shally or delay.

I have one or two other suggestions. Parts of the planning process can be cumbersome, with reports on things such as bats and newts—

[James Cartlidge]

Ken Livingstone.

[Chris Philp]

Yes, indeed.

If there is any way of lightening the process, it would be welcome. Similarly, many developers would be happy to pay higher planning fees in exchange for guaranteed faster decision making, perhaps with the extra fees being refunded if the service level was not met. I hope the Minister will take those constructive ideas in the spirit they are intended.

In summary, having sat on the Bill Committee for 17 sittings, I am absolutely confident it will increase the supply of new homes and promote homeownership, and I strongly welcome it.