Help to Buy: Housebuilders’ Profits

Lord Bassam of Brighton Excerpts

Wednesday 27th February 2019 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, I do accept that standards are important. The noble Lord will be aware that the National Planning Policy Framework tightens up some of these quality and design requirements, and there are also rules relating to safety. These will be at the forefront of the Government’s mind when we have the new Help to Buy scheme. We will look at all of the providers, not just Persimmon, to make sure that they are delivering value for money for the consumer and the taxpayer.

[Lord Bassam of Brighton (Lab)]

Will the Minister return to the point made by the noble Lord, Lord Shipley: that the vast profits Persimmon is making would be far better invested in bricks and mortar and new council houses?

[Lord Bourne of Aberystwyth]

My Lords, I leave it to the Labour Party to have an assault on profits; there is nothing wrong with profit itself. It is inappropriate when the money is not being invested properly and providers are not taking proper account of their duties; that is unacceptable. The noble Lord will know that the lifting of the cap on local authorities will help with an issue on which he and I agree: the need for more social houses.