Housing: Long-term Plan

Debate between Julian Knight and Tim Farron

Tuesday 9th February 2016 Commons Chamber

[Tim Farron]

That is a very interesting observation. Given that this will be counterproductive in trying to tackle the housing crisis, it can only be ideological. It is massively ironic, as well as totally and utterly counterproductive, that outfits such as Lakeland Housing Trust, which looks after 100 or so affordable homes, many of which are gathered through bequests from very well-meaning, decent people who want affordable homes in their communities, will be put under Government diktat that means that, in future, we will be unable to recruit the benefactors who will enable us to provide affordable homes in places such as the Lake District.

The right-to-buy extension is being funded through the sale of high-value council houses. That is an outrage. It will again reduce the homes available for social need without a guarantee of replacement. If this is to happen, councils should be allowed to retain 100% of the sales of those homes to reinvest in housing in their communities —but they will not be permitted to do so.

The Government have stopped councils and housing associations from building thousands of homes that they were planning to build. A 1% cut in social rents is a good thing if it is done fairly, but the Government did not do it fairly; they chose instead to be generous with other people’s money. A rent cut is right, but to make housing associations and the often vulnerable users of their services pay for it is pretty mean and massively counterproductive. In Hampshire, for example, 400 fewer new homes will be built than planned, as a direct result of this policy. At a time when councils should be expanding their building projects, they are being forced to cut back. Consequently, the housing crisis is set to get even worse. At a time when new homes should be encouraged from every direction, the Government are relying on a broken market to deliver, skewing the building of new homes away from being affordable. While we should make home ownership an option for as many as possible, we also need to ensure that there are homes available for those for whom that is not within reach.

Rural areas such as mine in Cumbria face particular challenges in housing. Land for building is hard to find.

[Julian Knight (Solihull) (Con)]

The hon. Gentleman has been talking about fewer homes being built as a result of the change to the relationship with the housing associations. When four leaders of housing associations were before us in the Communities and Local Government Committee, I asked them whether more or fewer homes would be built as a result of these changes. Three out of four said that more would be built. Would the hon. Gentleman like to comment on that?

[Tim Farron]

The idea that the income and borrowing of a housing association is reduced and it can then therefore build more utterly beggars belief. That is not the experience of housing associations in Cumbria or those anywhere else that I have spoken to. I would be very keen to look at the Select Committee report and see the angle that those folks come from.

--- Later in debate ---

[Tim Farron]

The hon. Gentleman is talking about creating more garden towns, and it is important that we take a cross-party approach to creating more garden villages, garden towns and garden cities. The danger is that if somebody comes up with bold ideas, others will knock them down. I will not play party politics, but towers and towers of Conservative leaflets have been delivered across south Cumbria over the past 10 years, all aimed at stopping the building of affordable homes. It took bravery from my Liberal Democrat colleagues on the council to stand up against that and build affordable homes. As a result, hundreds and hundreds of families have a place to call their home. Sometimes it is right for local and national Governments to do the right thing, even when it is difficult.

[Julian Knight]

The hon. Gentleman is being most generous in giving way. He mentions how parties are opposing the local council in his own constituency. As soon as we try to build anything in my constituency of Solihull, we have the same from the Liberal Democrats, who always try to oppose on almost every issue. Will he communicate with his grassroots—what remains of them—and let them know that they should in future get on board to produce more homes?

[Tim Farron]

I would be very interested to look at the detail of that. I am also keen to recognise that we have to take the community with us, which takes bravery at every level. It sometimes seems that we have to tackle this issue, as Harold Macmillan bravely did in the 1950s, by not looking at it from an ideological point of view and by not scoring points. I would be pretty surprised if anybody on the Labour or Liberal Benches did that back in the 1950s. There are more people on the Liberal Democrat Benches today than there were on the Liberal Benches in the 1950s, which is progress. [Interruption.] There may have been three Members, depending on whether or not Megan Lloyd George had left by then.

The point is simply that if we are brave and do not look at this issue through an ideological prism—such as by saying that we can move forward only by having all social rented housing or by flogging off social rented housing—we can take people with us and minimise the number who will oppose us in the planning process. However, if we have a Government, as sadly we do, who look at this issue purely through an ideological prism, rather than by asking how we can solve the crisis, we will always land ourselves with opponents.