Lord Goldsmith of Richmond Park
Main Page: Lord Goldsmith of Richmond Park (Conservative - Life peer)Housing and Planning Bill
Lord Goldsmith of Richmond Park Excerpts
Zac Goldsmith (Richmond Park) (Con)
As Mayor, my hon. Friend the Member for Uxbridge and South Ruislip (Boris Johnson) has overseen the building of 100,000 affordable homes in London, which is 25,000 more than his predecessor.
Zac Goldsmith
I will not give way, because we all have very little time. I will perhaps give way later.
As my hon. Friend will no doubt acknowledge when he speaks later, the gap between supply and demand remains very wide, and without radical action it will grow wider still, further pricing Londoners out of their own city. Few people doubt that London is the greatest city on earth—it is why so many people want to come here—but that success, much of it down to his great work, is compounding—
Sadiq Khan
Does the hon. Gentleman think the Mayor has made any errors on housing over the last seven years?
Zac Goldsmith
He has overseen the building of 100,000 affordable homes, which is 25,000 more than his predecessor. That is his record. What is more, he has laid the groundwork for a much more ambitious project, as I shall briefly explain later.
As a result of London’s success, our population is expected to grow by 1.5 million over the next 15 years—that is 1.5 million people who will need homes in this city. Already, the average first-time home costs £412,000, which is 12 times the average inner-London wage. Closing the gap between supply and demand, therefore, is the absolute priority, but we know we can do it. We have the tools: the planning system, the finance and the land. There are vast swathes of public sector brownfield land that we can unlock. Transport for London alone owns the equivalent of 16 Hyde parks. We will have to unlock that land to build the homes Londoners need. We also have an opportunity to redevelop existing sites—for example, 1950s estates that are at the end of their lives but for which the opportunities are vast, as long as we get the consent of the residents.
The Bill is just part of the story, and no one here pretends that it is the solution to London’s housing crisis, but it will give many people a chance to own their own home. It will give 440,000 housing association tenants in London the right to buy. One in 10 London families will have the right to purchase their home at a discount funded through the sale of high-value council homes.
So, in principle, I strongly support the Bill. I stood, as did all my hon. Friends, on a manifesto that committed us to help introduce it. There is no doubt, however—I believe that the Government Front-Bench team accept this—that the Bill needs amending. Council homes in London are far more valuable than they are elsewhere, and without a change we will see a disproportionate flow of resources out of London. I want to amend the Bill to guarantee that it works for Londoners.
We should extend the right to buy, but at the same time we must gain a significant number of low-cost homes, which we know is possible. The amendment that I intend to table after today’s debate will ask for a binding guarantee that London will see a net gain in affordable housing as a consequence of this policy—a guarantee that London will see, in addition to the replaced housing association homes, at least two low-cost homes built for every single high-value home sold. That is the intent behind the amendment, and I believe it will gain the support of every single Back-Bench Conservative colleague representing a London constituency. I strongly urge the Government to work with us to help us deliver the commitments we need.
As well as pressing for this binding commitment, I want to pay tribute to my right hon. Friend the Secretary of State for securing a voluntary deal with the housing associations. Right to buy will channel a significant amount of cash into London’s housing associations. Indeed, Standard & Poor’s has said that its credit ratings are likely to improve.
Last week, I wrote to David Montague, chief executive of g15, which represents London’s largest associations. I asked him how we can work together to turn that cash into new low-cost homes. It is very clear from his response that g15 is well up for that challenge. In a note to me last Friday, it has committed to more than doubling its investment programme, as long as the next Mayor works with the current Government and ensures that the brownfield land I mentioned earlier is freed up. If I am successful in the election for Mayor in May, I absolutely make that commitment to do so, working on the legacy of my hon. Friend the Member for Uxbridge and South Ruislip.
If we get this right, London will see a significant net gain in affordable homes from this policy, with two low-cost homes built for every one high-value council house sold, plus a commitment from London’s housing associations to more than replace every home sold under right to buy. That is a deal that even the Opposition could support, if they could just briefly resist the temptation to wave flags during this debate.
I am conscious of the time limits, so I shall be brief on the further measures contained in the Bill. I strongly welcome the Government’s commitment to starter homes, which will no doubt help a lot of people. It needs to work for Londoners, however, and a 20% discount on a £450,000 home in London is still out of reach for many people. The bottom line is that we are going to have to use every single available lever to deliver affordable homes at all incomes.
Finally, the aspiration of homeownership must not blind us to the difficulties of the millions of people who are renting, so I warmly welcome plans to crack down on rogue landlords. This will complement the current Mayor’s London rental standards, and is yet another example of a Conservative Government working with a Conservative Mayor and delivering for Londoners.