Housing: Long-term Plan

James Cartlidge Excerpts

Tuesday 9th February 2016 Commons Chamber

[Tim Farron]

The hon. Gentleman makes the point that I made a moment or two ago, which is that the coalition’s record was far from perfect. What I would say, however, is that those years were the only time since the 1970s that a Government saw a net increase in the social housing available. It was a matter of a few thousand houses, which is small beer, but that is significantly better than the record of the previous Administration. Perhaps one of the greatest shames that hangs over the 13 years of the Labour Government is that Labour somehow managed to build fewer council houses than Margaret Thatcher, which is quite an achievement.

The reality is that the Housing and Planning Bill will tinker around the edges. It will not bring forward the ambitious, radical plan that Britain desperately needs. Indeed, it has redefined what an affordable home happens to be—apparently, it would include houses of £450,000 in London under its starter homes initiative. There is nothing wrong, by the way, with the idea, at least, of starter homes, but they are for better-off renters. Shelter has calculated that someone would need a £40,000 deposit and a £50,000 salary, and much more in London, to afford one.

There is a place in the market for starter homes, but the way they are being introduced has three fundamental flaws. First, they will not be kept affordable in perpetuity so that future generations can benefit, and the lucky few who get one will make a huge profit. Secondly, they will be instead of, not as well as, other forms of affordable homes. Thirdly, they will be exempt from the community infrastructure levy and section 106 requirements.

[James Cartlidge (South Suffolk) (Con)]

Is the hon. Gentleman aware that although a discount in perpetuity is very attractive in theory, the problem has been that mortgage lenders have not been so keen and have, historically, insisted on quite large deposits for those rare schemes where such a discount applies? That would be a barrier.

[Tim Farron]

The hon. Gentleman makes a fair point. In my part of the world, many of our homes are local-occupancy and have covenants that affect their long-term value.

If this is the Government’s only way of trying to tackle this problem, they will not succeed. Their flagship policy on providing affordable homes is narrowly based on a group of homes that are really affordable only for people at the higher end of the private rented sector. That would be fine if it were part of a panoply of offers, but it is not. Those houses are provided at the expense of more affordable homes that would have been provided through section 106 instead. That is why my criticism is fair, and it stands. The houses that are built under this scheme will be exempt from the community infrastructure levy and from section 106 requirements. That means that the families who live in them will, quite rightly, make use of the schools, the roads and the infrastructure in those communities, yet the developers will not have paid a penny to contribute to the upkeep of any of those parts of the vital local infrastructure.

The Bill fails to guarantee that homes sold off under the right-to-buy extension to housing associations will be replaced, and we know from experience that that is unlikely to happen. The hon. Member for Hammersmith (Andy Slaughter), who is now leaving the Chamber, criticised the coalition. He could have criticised the fact that so far only one in nine of the homes sold off since 2012 have managed to be replaced. Even a Government who were keen to replace homes that are sold off find it hard to do so.

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[James Cartlidge]

The former Deputy Prime Minister has extolled the virtues of Help to Buy, which is fine, but there is absolutely nothing to stop someone, after purchasing a Help to Buy home, renting it out should their circumstances change, which would be the same for anyone buying on the open market.

[Brandon Lewis]

My hon. Friend highlights an important point. What the hon. Member for Westmorland and Lonsdale seems to be asking for with the right to buy and, to an extent, in the arguments that he made about starter homes, is second-class ownership, and I do not support that. If someone owns their home they should have the same rights as anyone else. It is sometimes tiresome to hear people who own their home explain why we should not let someone else have the chance to do so. The Housing and Planning Bill is part of our work to drive up the housing supply and home ownership, and it will give house builders and local decision makers the tools and confidence to deliver more homes.

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[Mr Richard Bacon (South Norfolk) (Con)]

It is a pleasure to follow the hon. Member for Glasgow Central (Alison Thewliss), because her leader at Westminster, the right hon. Member for Moray (Angus Robertson), was one of the sponsors of my Self-build and Custom Housebuilding Bill, which became law on 26 March 2015.

If the hon. Member for Erith and Thamesmead (Teresa Pearce) thinks I am going to talk about self-build and custom house building, I would not want to disappoint her. There are many good reasons for engaging in self-build and custom house building, and I will come to them shortly.

First, however, we have to analyse why so many Opposition Members—I have listened to them drone on for a long time—appear to think that the current housing system is, give or take, more or less, in reasonably good shape and that it just needs a few tweaks, give or take, more or less, to sort it out. The truth is that our housing system—the one we have endured for 50 years— is intellectually, socially and morally bankrupt. It is intellectually bankrupt because the supply of housing does not rise to meet demand—the hon. Member for Erith and Thamesmead could not give me a reason why, but she accepted that that was the case. It is socially bankrupt because not having enough housing is so extraordinarily divisive and limits opportunities. Finally, it is morally bankrupt because it is a disgrace that a rich country such as ours cannot supply enough decent housing for everyone to have somewhere to live, and that, in a country where the vast majority of people want to own their own house, homeownership is going down rather than up. This Government are starting to address these problems with the radical solutions that will make the difference.

The hon. Member for Westmorland and Lonsdale (Tim Farron), did not talk about self-build at all, although his motion refers to it. Yet that is by far the most radical suggestion in the Housing and Planning Bill, which amends the Self-build and Custom Housebuilding Act to take it further. Under the Act, local authorities will have an obligation that cuts in on 1 April this year to maintain a register of people who want to develop their own self-build project—individuals or groups of individuals. The Bill, which is currently in the other place, will place an obligation on local authorities—I do not think most of them have realised this yet, to be honest—to provide serviced plots commensurate with the demand as evidenced on their registers.

[James Cartlidge]

My hon. Friend speaks with great passion on this issue, and that is wonderful. If councils take these lists seriously, will not that offer the opportunity that, when significant development sites come up, whole areas can be set aside for self-build?

[Mr Bacon]

My hon. Friend is absolutely right. The only thing I would question is his use of the word “if”. Councils have a legal obligation to take the lists seriously. A planning inspector would be quite right to find a local plan unsound if it failed to contain provision for serviced plots commensurate with demand as evidenced on the register.

When Councillor Barry Wood, the leader of Cherwell District Council came to our self-build summit in Downing Street last month, he talked about one of the sites in the National Audit Office report that the hon. Member for Erith and Thamesmead mentioned, which has 109,500 potential houses. I spent some time explaining to the permanent secretary of the Department that our constituents liked living in real houses rather than potential houses. The list is a bit distorted, because on some of that land nothing has happened at all, and on some of it a great deal has happened. There are 1,900 serviced plots in Bicester, at Graven Hill. Anybody can look at that scheme by going to gravenhill.co.uk. Once it gets off the ground, as Councillor Wood explained in his presentation, it will make a significant difference to the marketplace because people will start looking at it and saying, “They have that in their area—why can’t we have it in ours?”

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[James Cartlidge]

The hon. Gentleman makes a very important point, with which I strongly agree, about institutional investment. Does he not accept that one of the big factors that will eventually lead to greater choice and supply in the private rental market is institutional money coming in and building large-scale development for rent, which is happening now across the country?

[Greg Mulholland]

That is an intelligent intervention and a sensible point. Of course I agree, but that does not build council houses and it does not give people hope. It creates more private rented accommodation, but it does not deal with the problem these people face.

We talk about wanting local authorities to build more council houses. That is not some crazy left-wing idea; it is investment. It is the state building and investing in property. As everyone knows and would agree, it is a very good investment not only for housing associations but for councils and for innovative schemes. We need to see an increase in the ability of local authorities to invest in that way. I have been very critical of the Labour-run council in Leeds. Councils—certainly Leeds City Council—are not using the powers they have to borrow. That is very disappointing, particularly as we need to get away from the idea of social housing being on council estates. Social housing should be integrated. We need to integrate our towns, cities and villages. I have pressed Leeds City Council to purchase properties, using the money it has and the powers given to it by the coalition Government, in and around the place and to get away from having all our social and council houses together. That approach should be consigned to the past. I again call on Leeds City Council to use the powers it has to buy up properties, particularly in LS6.

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[Julian Knight]

I completely agree. It is ridiculous politics for people on the housing ladder to seek to pull it up and not allow others on. That is terribly two-faced, and entirely wrong.

Help to Buy is a fantastic innovation and is a good measure for an emergency. Our housing industry was dying, which is why we introduced it. The Government should be commended for continuing with that policy. Social mobility is aided by the measure, but this is not a demand issue. It is a problem of supply.

[James Cartlidge]

My hon. Friend is making an excellent speech. He is the first person to make the wider point that I think we should focus on, which relates to issues such as the pensions system and the price of money. We often talk about supply, but the price of money is an issue too. After the crunch there was a complete collapse in economic activity, and Help to Buy was given a huge boost, with maximum prices of £600,000 and so on, which was necessary to rescue the economy from what would have become a depression.

[Julian Knight]

My hon. Friend is absolutely correct. Help to Buy is very similar to the car scrappage scheme, which helped to rescue a major industry in 2008-09. The measure was introduced to allow house builders to get rid of dormant stock. As an economy, we are held captive by the lack of supply. Responsible Governments look at the supply side—that is what we did in the 1980s—for solutions, and that is what we are trying to do. We are trying to get more homes built: the Government aspire to 200,000 a year, or 1 million in total. It is good to have stretching goals, but if we could just produce enough for the new families being formed, that would be satisfactory. In my constituency, we are stepping up to the plate. We have a local plan in place, unlike many areas represented by Opposition parties. We have met the challenge and are looking to build more homes, be it through direct build, right to buy or getting housing associations to build more homes—they have not been building enough. I believe that devolution, through the combined authorities, can also help.

Finally, I turn to our opponents. The hon. Member for Erith and Thamesmead (Teresa Pearce) said she did not want to trade statistics, so I will not delve into them, but I will say one thing: the real shame of the 1997-2010 Labour Government was that their flagship policy was home information packs. That was basically it on housing. All those people waiting on the housing list, looking for a home to follow their dreams, had to wait, because the homes were not being built for the households being formed.

Labour has commissioned a report into housing, as it did in 2004, and I presume that this time the findings will again be ignored. I will be interested to read the report—I do welcome it—but instead of commissioning a report, the Government are getting on with building houses. They can truly say, “We are the builders”.

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[James Cartlidge (South Suffolk) (Con)]

I declare my interest as a director of a shared ownership property portal and a mortgage broker. I want to make a couple of points about second-hand supply, which is often overlooked, and about estate regeneration, for which the Prime Minister has set out a very bold agenda. All the statistics show that there is a record low in the number of instructions to estate agents in the second-hand market. That is actually one of the main crises that we are facing, because the second-hand market forms such a large part of the market.

However, there is evidence that hope might be around the corner. We have recently heard a prediction from the National Landlords Association that 500,000 extra properties will come on to the market this year because of the buy-to-let tax changes and other changes that we are bringing in. I will put my neck on the line here and say that those measures represent the single most radical change that this Government have introduced so far, in the light of the wider impact that they will have. It is extraordinary to note, however, that just as it appears that those changes could have an impact, someone out there is going to go to court to try to stop them. I am of course talking about Cherie Blair. Looking at Blair Inc., we see that when Tony Blair finished as Prime Minister, he went round the world advising dodgy dictatorships, and that Cherie Blair is now going to lead a court action on behalf of, and defending, the rentiers. That is an interesting legacy indeed. It proves that champagne socialism is not yet dead.

On the regeneration agenda, I am proud that the Prime Minister has seized this important opportunity. He has set out plans to provide £140 million to transform 100 of our very worst estates. The theory behind estate regeneration is clear: it is that we can rebuild the very worst estates in the country and yet deliver a higher density of homes, thereby providing more housing for those who need it. That is an incredibly powerful agenda. Some will say, “Well, that all sounds very good in theory, but in practice those are people’s homes.” Developing those estates is not easy.

As the chairman of the all-party parliamentary group on housing, I have had the privilege of visiting two major estate regeneration schemes in recent weeks: Woodberry Down in Hackney, and Elephant Road at the Elephant and Castle. In both cases, I saw the practical reality on the ground: we have rebuilt terrible sink estates with higher density housing of better quality and with a better eco-rating. We should be seizing this agenda. There is a link between the changes that we are bringing in on buy to let and the estate regeneration agenda.

[Bob Stewart]

Given my hon. Friend’s great expertise on this matter and my lack of knowledge, could he enlighten me as to what happens to the people who live on a sink estate when it is brought down and rebuilt? What happens to those people while they are having their homes rebuilt?

[James Cartlidge]

This is very simple. My hon. Friend is an expert on decanting, I think, and the answer to his question is that we decant them. That is the technical term. I am sure that this will be interesting to him, and I am sure that I know what he keeps in his decanter. It is probably the same nationality as his wife. The process is difficult, however, because we do have to decant those people. One solution, which we saw at Woodberry Down, is to build the new housing and decant the people in stages. We saw another solution at the Elephant and Castle, which was difficult but there was no alternative. It was to allow the estate to run down and become empty over time. That is the toughest part of the process.

The details of regeneration are incredibly difficult, as my hon. Friend the Housing Minister will know. However, the aim—which is the same as that of our policy on buy to let—is a one-nation Conservative housing policy that is about revitalising our worst estates and extending opportunities to first-time buyers, and if that hits some of those buy-to-let landlords, all I can say is that I wish them good luck in court but I believe we need a housing policy that is on the side of those who aspire to own their own home.