Lord Young of Cookham
Main Page: Lord Young of Cookham (Conservative - Life peer)
Lord Kennedy of Southwark (Lab)
My Lords, this group of amendments contains some important provisions that would be welcome in the Bill and should not be left hanging in the air to be covered by regulations at some point in the future. Amendment 37B, in the name of the noble Lord, Lord Shipley, would add the words “via a mortgage”. It is extremely important that we are clear about this, because if the property was purchased in any other way, such as by a cash buyer, that would signal that the person or persons had no need to take advantage of a product with a generous discount that could be realised in a relatively short space of time.
Equally, Amendment 41B, which is also in the name of the noble Lord, Lord Shipley, makes clear that the person who buys the property should buy it to be their home. Again, I am fully supportive of that.
On government Amendment 42A, I will be interested to hear the noble Baroness, Lady Williams of Trafford, explain the reasoning behind the proposed change to the words in Clause 2(3)(c).
Amendment 43, in my name and that of my noble friend Lord Beecham, would add the criteria of “lives or works locally” to the Bill. That is aimed specifically at helping local people to take priority in getting a home in their local area rather than being forced to go somewhere else, and would help in building stable communities. I will be interested to hear the Government’s reasoning for their Amendments 44A and 44B in turn, which seem to turn on its head the requirement that individuals should be under 40. Is this because the Government have realised that in the present climate it will be very difficult for people under 40 to get a deposit together? Does the Minister envisage that this will apply to all areas of England or maybe just London in particular, where there is a problem with the affordability of housing?
Amendment 45, in my name and in the name of my noble friend Lord Beecham, would place a duty on the Secretary of State to consult the relevant local authorities and/or the Mayor of London when seeking to vary the price cap for starter homes. The requirement to consult relevant bodies when considering making this price cap change is good practice and will aid the Secretary of State in understanding the specific local circumstances that he or she should probably take into account when making such a change.
Lord Young of Cookham (Con)
My Lords, perhaps I may make a brief intervention following specifically Amendment 43, which the noble Lord just mentioned. I note with some alarm that, as we approach the third day of this stage of the Bill, we have now reached line 11 of page 1 of a 100-page Bill.
Baroness Hollis of Heigham
Will the noble Lord not agree that that is because we have taken the clauses out of order?
Lord Young of Cookham
If indeed we have made slightly swifter progress than that arithmetical calculation would—
Baroness Hollis of Heigham
Will he not therefore agree that his point is not a valid one?
Lord Young of Cookham
Returning to the theme, Amendment 43 seeks to add a qualification for those who are eligible for starter homes. I think that this is going to be a very popular product and that it will be oversubscribed. That raises the question of how one prioritises those who bid for the starter homes. Amendment 43 suggests one such restriction or qualification—namely, that people should live or work locally.
There may be other ways of managing demand. On Tuesday, I suggested that the product should be targeted at existing social tenants in order to free up a re-let, or at those on the waiting list in order to enable those behind them to move forward. There may be other ways of managing demand. Historically, we have had schemes for key workers—for example, teachers or nurses—who may need to live in a particular area.
When my noble friend replies, can she indicate how demand for the product will be managed, given that it will be oversubscribed? Will it be first come, first served, or will there be some eligibility qualifications such as those mentioned in Amendment 43 or those that I mentioned on Tuesday to ensure that the maximum benefit to the community as a whole is achieved from this exciting government initiative?