Housing and Planning Bill

Lord Goldsmith of Richmond Park Excerpts

Tuesday 12th January 2016 Commons Chamber

[Sadiq Khan]

I agree completely with the hon. Gentleman, but I would go a step further. I do not think that the Government are making a special case for London; I think that the combined effect of the Chancellor’s autumn statement and this Bill shows that the Government have it in for London.

As I have said, I visited Camden today, where the average cost of a property to rent is 73% of the average income there. So much for the Conservative mayoral candidate being in touch with Londoners. We also discovered last week that the Government are watering down the definition of what is affordable to include starter homes that cost 17 times the average British salary. By comparison, my amendment 89 would guarantee a new home for social rent to replace one that has been sold.

In short, amendment 112 is, to quote once more the hon. Member for Richmond Park, “elastic and misleading”. My amendment is clear and firm. It meets the tests that Londoners expect and I urge Members, especially anyone who claims to understand the housing crisis in London and who wants to help fix it, to ignore the overblown claims about amendment 112 and instead support my amendment 89.

[Zac Goldsmith (Richmond Park) (Con)]

I will be brief, because we do not have a lot of time. Clearly, we are discussing a national issue and concern, but there can be no doubt that housing is the No. 1 issue for London. Last year, prices rose by about 10% on average. The average price for a first-time buyer in London is now more than £400,000. No one can argue that Londoners today are not being priced out of their own city. It is no longer just a social problem—that point has already been made in relation to another city—because it jeopardises London’s economy as well.

The bottom line is that we need to build more and we need to build for people across the entire income spectrum. It is no good taking a polarised approach with a zero-subsidy option on the one hand and social housing on the other. We need to ensure that the market can accommodate young professionals, key workers and the like—people who perhaps do not qualify for social housing.

I was pleased with the Government’s interventions last week, with an emphasis on shared ownership, which will work around the country and have a particular impact in London. There is also going to be a London version of Help to Buy, which has been a very successful scheme nationally, but less successful in London, because we live in a different world here. The prices are so out of kilter with the rest of the country that that bespoke offer will have an impact. Finally, we have the two-for-one amendment under discussion.

I have a few questions for my hon. Friend the Minister. Amendment 112 requires that two new affordable homes be built for every single high-value council home sold as a consequence of the extension of the right to buy. That is based on my amendment, as has been acknowledged, and I sincerely thank my hon. Friend the Minister for his diligence in making it work.

[Andy Slaughter]

Will the hon. Gentleman give way?

[Zac Goldsmith]

Just give me a moment, please.

When my hon. Friend the Minister wraps up on this group of amendments, will he update the House on his discussions with London’s local authorities about how they will be able to work together to deliver the homes that London needs? I know that he has been having discussions with council leaders from all the different parties in both inner and outer London. It would be good to have an update.

May I ask my hon. Friend about housing associations? They are absolutely essential to the delivery of the next generation of homes. I believe that the G15, the group of 15 London housing associations, has already committed to delivering a one-for-one replacement of any home that is sold, but it has also said—it has told me this—that it could deliver a great deal more.

[Ms Buck]

Will the hon. Gentleman give way?

[Zac Goldsmith]

In just one moment, if the hon. Lady does not mind.

The G15 would even be able to replace each home sold with two new homes, provided that the Government give it the flexibilities it is asking for and, even more importantly, access to public sector land. Will the Minister commit to looking carefully at the flexibilities for which housing associations are asking, and will he look at the most critical issue, which is access to public sector land?

As my hon. Friend knows—he can take some credit for it, along with my hon. Friend the Member for Uxbridge and South Ruislip (Boris Johnson)—the London Land Commission is now live. It will provide a complete inventory of all publicly owned brownfield land in London, and we will have the figures shortly. We do not have all the details yet, but we know that an enormous amount of publicly owned brownfield land could be developed. We know that to build the homes we need, such land absolutely must be released, so it would be useful to hear from the Minister, when he wraps up the debate, whether he has a likely timetable. When will we have the full picture, and what will be the process for releasing that land both to housing associations and to developers?

[Andy Slaughter]

rose—

[Zac Goldsmith]

I said I would let the hon. Gentleman intervene, and I will let him do so before I finish my speech.

[Andy Slaughter]

Will the hon. Gentleman make it clear whether he agrees that the forced sale of empty council properties is a good idea or a bad idea? If it goes ahead, does he agree that those properties should be replaced with like-for-like in the same local authority area? Is that his position?

[Zac Goldsmith]

As the hon. Gentleman knows, I stood on a manifesto that included a commitment to extending the right to buy to housing association tenants. That is the right policy: it will enable hundreds of thousands of people to achieve home ownership who would otherwise not be able to do so.

[Clive Efford (Eltham) (Lab)]

Will the hon. Gentleman give way?

[Zac Goldsmith]

In a second: I am just answering the previous intervention.

That achievement would not be possible without the sale of empty high-value council homes. If, as a consequence of amendment 112, each sale leads to two new affordable homes being built, I would regard that as a good thing for London.

[Ms Buck]

rose—

[Clive Efford]

rose—

[Zac Goldsmith]

I am not going to take any more interventions. [Interruption.] I did take an intervention.

Finally, will the Minister commit to ensuring that public bodies can take the widest possible and longest term view of best value when releasing land? That point has been raised with me time and again by great and small developers, as well as by housing associations. We need a redefinition or an expanded definition.

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

The National Audit Office study of the disposal of public land showed that, in the last tranche, enough land was sold off for 109,500 potential homes. Does my hon. Friend agree that people do not live in potential homes, but actual homes, and that it is essential for the public interest to make sure, when a sale takes place, that there is a plan to ensure that something happens in a timely manner?

[Zac Goldsmith]

My hon. Friend makes my point for me. That is absolutely essential. We will not get best value out of the available public land with a rapid fire sale; that will require a much more coherent and strategic view from public bodies. I hope we will see more of that as a consequence of this Government’s intervention.

I thank the Minister again for the work he has put into delivering the two-for-one amendment. I am very grateful to him for amendment 112, which will ensure that the Bill works for London.

[Mr Betts]

Let me first welcome the amendments tabled by the Government, as the Minister announced to the Communities and Local Government Committee before Christmas, to make the pay-to-stay scheme voluntary for housing associations, which is a sensible move. My argument is that what is good enough for housing associations should be good enough for local councils as well, and that councils should have the discretion under the pay-to-stay scheme to operate within their housing revenue accounts, which of course receive no subsidy from the general taxpayer. The Government could easily do that without affecting the general public finances in any way. In the spirit of localism, the Government should do that.

I turn to the sale of high-value local authority houses. In Sheffield, we live in a slightly different world from the prices in London. The Prime Minister got rather alarmed when he saw council houses valued at £1 million, but most of the houses in Sheffield that will be sold under the legislation are good-quality family homes that are promised to be sold for about £100,000 to £150,000. However, the reality of the Government’s proposals is that all vacant houses in certain parts of Sheffield will be sold off under the Bill. High-value houses tend to be in high-value areas, which means that, for people on the council waiting list, there will in future be parts of Sheffield where no vacant properties will come up for people to rent. That is the reality: people can be on the waiting list for such a home, but the wait will be forever, because no vacant properties will ever become available. The chances of properties being replaced on a like-for-like basis in those areas of a city such as Sheffield are non-existent. After the discount for right-to-buy properties has been funded, there simply will not be enough money left to replace one social rented property with another.