Housing

Mark Prisk Excerpts

Wednesday 8th January 2014 Commons Chamber

[Emma Reynolds (Wolverhampton North East) (Lab)]

It is a pleasure to speak in this debate. We have had a wide-ranging discussion about housing, which is an issue that is close to the hearts of many of my constituents and important to people across the country.

It is patently clear that the Government are in complete denial about two things: the scale of the housing crisis that we face and the scale of their failure to tackle that crisis. I was astonished that the Secretary of State came here today to tell us that we should rejoice in the “sustained turnaround” in the housing market. His statements fly in the face of the facts. Last year, only 107,000 homes were completed. That is not even half the number of homes that is needed to keep up with demand according to the figures of his own Department.

It is regrettable that the Government are presiding over the lowest level of house building in peacetime since the 1920s. If the current trends were to continue, there would be a breathtaking housing shortage of some 2 million homes by 2020. The housing shortage is central to the cost of living crisis. Young people and families across England are struggling to get on the housing ladder and struggling with rents that are at a record high. The first thing that the Government did when they got into power was to cut the affordable homes budget by 60%—a huge cut. It is therefore no surprise that in the last year alone, there has been a 29% drop in the number of affordable homes that are being built.

There are fewer home owners since the election, despite the previous Housing Minister, who is now Chairman of the Conservative party, claiming that the Government would increase home ownership. Tragically, homelessness and rough sleeping have risen in every year under this Government. Both are up by about a third since 2010. The number of families who are in temporary bed and breakfast accommodation is tragically at a 10-year high.

What is the Government’s approach to the biggest housing crisis in a generation? It seems to be a flurry of announcements. As my right hon. Friend the shadow Secretary of State said in his opening speech, there have been no fewer than 400 announcements in the past three and a half years. However, their many warm words have not been matched by action.

It seems that the Housing Minister recognises that that is a problem. He came to the House in November and told us that

“the new homes bonus is not about encouraging people to build homes.”—[Official Report, 25 November 2013; Vol. 571, c. 11.]

Rather confusingly, he said later in a written parliamentary answer to me that it was an incentive to build homes. Perhaps today—third time lucky—he will clarify what the new homes bonus is for. The National Audit Office and the Public Accounts Committee have both concluded that it has had little impact on housing supply.

On the demand side, the Government have introduced Help to Buy. We strongly support help for first-time buyers but, crucially, Help to Buy must be matched by help to build. The Secretary of State for Business, Innovation and Skills, who sits around the Cabinet table with the Secretary of State for Communities and Local Government, the cross-party Treasury Committee and the former Governor of the Bank of England have all said that the scheme carries risks for the economy. The Prime Minister’s new housing adviser, Alex Morton, has gone even further by saying that it risks detonating a bomb under the British economy. However, the Government continue to do next to nothing to boost supply, which is pushing home ownership further out of reach for young people and families.

While the Government are clearly complacent, the Labour party understands the scale of the challenge. My right hon. Friend the Leader of the Opposition announced in September that a Labour Government would build at least 200,000 homes a year by 2020. That is a realistic but ambitious agenda. We have asked Sir Michael Lyons to chair a commission that will draw up a detailed road map towards that aim, which is effectively to double the level of house building. There are specific areas that the commission will consider and specific problems that the Government are reluctant to recognise. I will refer to those briefly. The first concerns problems with the land market, the second is the restriction on communities’ right to grow, and the third is the lack of any action by the Government on new garden cities and new towns.

First, there are deep and structural problems with the land market. My hon. Friends the Members for Great Grimsby (Austin Mitchell) and for Sheffield South East (Mr Betts) have stressed that even in the good times the private sector did not deliver anywhere near the number of homes we need to keep up with demand. It is clear that developers are sitting on land and waiting for its value to increase. The Government seem to be in denial about land banking—although some of their Back Benchers seem to recognise it as a problem—but the International Monetary Fund and the Conservative Mayor of London clearly say it is a problem. We intend to give local authorities the power to escalate fees on developers who sit on land and, if that does not work, to use compulsory purchase orders if those developers still refuse to get on and build the houses that this country so desperately needs and for which communities are crying out.

We also have a problem with the dominance of big house builders. Small house builders face major problems accessing land as well as finance, and the market is dominated by a few big house builders. That was not always the case; in the late 1980s, small and medium-sized house builders delivered two-thirds of new homes, but now SME builders build only around one third of new homes. We must find ways to make the market more diverse and competitive—I hope we can agree on that.

Secondly, over the past three and a half years we have had warm words—in particular from the Deputy Prime Minister, but also earlier from the Prime Minister—about garden cities, yet not one measure has been taken to put in place conditions to deliver them. It was even reported last week at the start of the new year that the Prime Minister has forbidden Ministers from identifying any sites for potential new towns during this Parliament. Some would say that is pouring cold water on the proposal; others might say it is putting it into a deep freeze. Labour, on the other hand, is committed to new towns, which must form part of the solution to the housing crisis. The post-war Labour Government started 11 new towns because they had the determination and vision to act. That is exactly what we need now and what the Government are lacking. The Lyons commission is looking at ways to incentivise local authorities to come up with sites, and my right hon. Friend the shadow Chancellor recently committed a Labour Treasury to using guarantees—much like those provided for the Help to Buy scheme—to support the building of new towns.

[Mr Mark Prisk (Hertford and Stortford) (Con)]

I understand that the hon. Lady is on the record as saying that five new towns will be built in the first five years of a Labour Government. What funding does she have for that?

[Emma Reynolds]

I pay tribute to the hon. Gentleman and his time as Housing Minister. I actually said—he did not read out a direct quote—that I would love to see a Labour Government starting four or five new towns. We are looking at current legislation on new towns, and also to learn lessons from the generation of new towns that were delivered in the post-war period. We have asked Sir Michael Lyons and a panel of experts, including the Town and Country Planning Association and the big home builder Barratt—[Interruption.] Well, we have done more than the Secretary of State is doing. He may chunter at me from a sedentary position, but he has done exactly nothing on this agenda and is incredibly complacent.

[Mr Prisk]

rose—

[Emma Reynolds]

I will not give way again to the same person.

Finally, the Government are in complete denial about the situation of towns and cities such as Stevenage, Oxford and Luton—which my hon. Friend the Member for Luton South (Gavin Shuker) spoke eloquently about—where local communities are crying out for new homes but neighbouring local authorities are blocking them every step of the way. The Government introduced the duty to co-operate, but they must accept that those fine words are not translated into action. Half a million pounds has been paid out to lawyers in Stevenage over the dispute with North Hertfordshire. I would rather that money was spent on bricks and mortar.