Nick Clegg
Main Page: Nick Clegg (Liberal Democrat - Sheffield, Hallam)(8 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text
Tim Farron
The hon. Gentleman makes a fair point. In my part of the world, many of our homes are local-occupancy and have covenants that affect their long-term value.
If this is the Government’s only way of trying to tackle this problem, they will not succeed. Their flagship policy on providing affordable homes is narrowly based on a group of homes that are really affordable only for people at the higher end of the private rented sector. That would be fine if it were part of a panoply of offers, but it is not. Those houses are provided at the expense of more affordable homes that would have been provided through section 106 instead. That is why my criticism is fair, and it stands. The houses that are built under this scheme will be exempt from the community infrastructure levy and from section 106 requirements. That means that the families who live in them will, quite rightly, make use of the schools, the roads and the infrastructure in those communities, yet the developers will not have paid a penny to contribute to the upkeep of any of those parts of the vital local infrastructure.
The Bill fails to guarantee that homes sold off under the right-to-buy extension to housing associations will be replaced, and we know from experience that that is unlikely to happen. The hon. Member for Hammersmith (Andy Slaughter), who is now leaving the Chamber, criticised the coalition. He could have criticised the fact that so far only one in nine of the homes sold off since 2012 have managed to be replaced. Even a Government who were keen to replace homes that are sold off find it hard to do so.
Mr Nick Clegg (Sheffield, Hallam) (LD)
My hon. Friend is making a compelling argument. Does he agree that there is an ideological irony in the right-to-buy scheme in that what are, in effect, charitable organisations are being, in some sense of the word, renationalised by this Government?
Tim Farron
That is a very interesting observation. Given that this will be counterproductive in trying to tackle the housing crisis, it can only be ideological. It is massively ironic, as well as totally and utterly counterproductive, that outfits such as Lakeland Housing Trust, which looks after 100 or so affordable homes, many of which are gathered through bequests from very well-meaning, decent people who want affordable homes in their communities, will be put under Government diktat that means that, in future, we will be unable to recruit the benefactors who will enable us to provide affordable homes in places such as the Lake District.
The right-to-buy extension is being funded through the sale of high-value council houses. That is an outrage. It will again reduce the homes available for social need without a guarantee of replacement. If this is to happen, councils should be allowed to retain 100% of the sales of those homes to reinvest in housing in their communities —but they will not be permitted to do so.
The Government have stopped councils and housing associations from building thousands of homes that they were planning to build. A 1% cut in social rents is a good thing if it is done fairly, but the Government did not do it fairly; they chose instead to be generous with other people’s money. A rent cut is right, but to make housing associations and the often vulnerable users of their services pay for it is pretty mean and massively counterproductive. In Hampshire, for example, 400 fewer new homes will be built than planned, as a direct result of this policy. At a time when councils should be expanding their building projects, they are being forced to cut back. Consequently, the housing crisis is set to get even worse. At a time when new homes should be encouraged from every direction, the Government are relying on a broken market to deliver, skewing the building of new homes away from being affordable. While we should make home ownership an option for as many as possible, we also need to ensure that there are homes available for those for whom that is not within reach.
Rural areas such as mine in Cumbria face particular challenges in housing. Land for building is hard to find.
Tim Farron
The hon. Gentleman makes a great point. Demand and supply are at the heart of our housing crisis. All the evidence suggests that it just makes sense to provide more social housing—people who believe in the free market should understand this—because it will take the heat out of the bottom end of the bought market and make houses more affordable.
Mr Clegg
On my hon. Friend’s point about giving councils greater borrowing powers—this also relates to his earlier point about borrowing powers for housing associations—does he agree that any entity, whether it is a housing association or a council, can be given the right to borrow money only if it has a reliable income stream? That is why when the previous coalition Government cut social rents, they gave a guarantee to housing associations that their revenues would remain stable for a decade and a half. That reliable revenue stream has been torn apart by the new Government.
Tim Farron
It rather plays into the pattern over the last nine months—since the coalition Government ended and the Conservatives came into power alone—of short-termism and a lack of a long-term thinking. The long-term plan appeared to leave office with my right hon. Friend. Instead, we see short-termism over green energy cuts, for example, and over providing the certainty that businesses of any kind need to plan. That includes housing associations, which are charities but which have, in many ways, the acumen and the outlook of the private sector. If we reduce their income, their certainty and their confidence in their balance sheets, they will build less and provide fewer services. Society as a whole will end up picking up the cost for vulnerable people whom we cannot support, who become more costly to society in later life.
Other reforms are needed to boost supply on the scale that is required. That cannot be left to the social housing market or to the starter homes initiative. That is why we are calling for at least 10 new garden cities in areas where there is local support to create thousands of new homes in thriving and sustainable communities with effective transport links and schools, providing hundreds of jobs in the process. In addition, we are calling for many more garden villages—not building in people’s backyards, but building beyond people’s horizons, with consent, and giving a sense that there is a long-term answer to the crisis. The Government must create the conditions for those garden cities to work, by empowering councils to buy land more cheaply and providing incentives to make the plan a success.
Brandon Lewis
My hon. Friend makes a good point. To be fair to him, the hon. Member for Westmorland and Lonsdale referred to that fact. We should be proud that the coalition Government were the first Government in a generation to see an increase in affordable housing by the end of a Parliament, unlike the previous Government. My hon. Friend highlights the work we are doing and the changes we are making that are seeing housing supply go up. I will come to that in a few moments.
The Government are determined that everyone who works hard will be able to have a home of their own. After all, 86% of the population want to own their own home. Whoever you are and wherever you live, we want to support your ambition and aspiration to own your own home. That is not just a manifesto commitment of the Conservative party; it is an aspiration that is shared by the vast majority of the British public. That is why we are embarking on the largest Government house building programme for some 40 years. We aim to build a million homes by 2020 and to help hundreds of thousands of people to take their first steps on to the housing ladder. We will consolidate and expand on the progress that we have made since 2010, when we inherited a housing market on its knees.
Let me remind the House what our inheritance was—our shared inheritance: a burst housing bubble, an industry in debt, sites mothballed, workers laid off, skills lost, a net loss of some 420,000 affordable homes, rocketing social housing waiting lists and a collapse in right-to-buy sales, with just one home being built for every 170 sold.
Those failures were accompanied by a post-war low in house building by councils, a sustained fall in home ownership—the shadow Housing Minister was quite “pleased” about that, if I remember his quote correctly—and chaos in the regulation of lending. Underpinning that gigantic sorry mess was a planning system in disarray, presiding over the lowest level of house building since the 1920s with just 88,000 starts. The hon. Member for Westmorland and Lonsdale may struggle to remember that, but I know that the right hon.—and absent—Member for Wentworth and Dearne (John Healey) will have no such problem, because he was the Minister in charge at the time.
It is terrifying to think of where we would be today if we had not gripped those problems and applied the right solutions. In the previous Parliament, the number of first-time buyers doubled, as did the number of new homes built and public support for new house building. We helped more than 270,000 households buy a home with Government schemes, provided more than 270,000 affordable homes for rent—with nearly one third of those in London—and we were the first Government since the 1980s to finish their term with a higher stock of affordable homes.
We spent £20 billion on our affordable housing programmes, achieving the same rate of delivery with half the grant required by Labour policies. We built more, it cost less, and we did it faster. As the hon. Member for Westmorland and Lonsdale said, twice as many council homes were built in the five years of the coalition Government than during 13 years of Labour, and I reiterate that his party should be rightly proud of its role in achieving that progress.
Mr Clegg
We are indeed proud of that record, and I thank the Minister for extolling it so beautifully. Does he agree that it is a radical departure from that record to move from Help to Buy, which the coalition Government used to spread the opportunity to buy a home to many people across the county, to right to buy, which will help only a tiny fraction of people and do nothing for those facing very high rents, or build more homes in this country? Is that not a radical departure from the preceding excellent record that the Minister has been extolling so well?
Brandon Lewis
On this occasion I am afraid I have to “disagree with Nick”. We are expanding Help to Buy, as I will say in a moment, and I do not think that giving 1.3 million more people the chance to own their own home is a small percentage. A lot of people have the right to aspire to that, and we will support them in their aspiration.
Our plans for housing are delivering, but I agree that we must do more. We are still dealing with Labour’s deficit in public finances, and we must now tackle the housing deficit with that same determination. Both are required to ensure that this is the turnaround decade. We must build more, but this is not only about the number of new homes; we are also determined not just to halt, but to reverse the slide in home ownership that began in 2003, which the shadow Housing Minister said was not such a bad thing. With so many people kept off the housing ladder for so long, we are determined to deliver our promises quickly. That is why in the spending review the Chancellor announced the biggest investment in housing for 40 years. We are investing in what matters most to young people and British families, with £20 billion set aside for housing.
Our work includes major investments in large-scale projects, including garden towns in places such as Ebbsfleet, Bicester, Barking Riverside and Northstowe, and £7.5 billion to extend Help to Buy. The equity loan scheme through to 2021 will support the purchase of 145,000 new-build homes. I notice that the new adviser on housing to the Labour party wants to end that, so perhaps the shadow Minister will say whether Labour is supporting the end of Help to Buy, as its adviser has suggested.
Last week we doubled the value of equity loans in London to 40%, and 50,000 people have already registered their interest. We will ensure that the scheme continues, and we will deliver on our promise. A quarter of a million people are already investing in our Help to Buy ISAs so that they can save for a deposit. The brand new Help to Buy shared ownership scheme will deliver a further 135,000 homes, by removing many of the restrictions that have held back shared ownership. For example, an aspiring homeowner in Yorkshire could get on the housing ladder with a deposit of just £1,400. In the south-east, it will cost under £2,500, and in London, £3,400. Those possibilities will be open to anyone of any occupation who earns under £80,000, or £90,000 in London. Our plans will improve the housing market across all tenures: a £1 billion housing delivery fund to support small and custom builders; £8 billion to help build 450,000 affordable homes; and 200,000 starter homes available to young first-time buyers with a 20% discount at least. We make no apology for this innovation in the delivery of affordable homes—it is what people want, with 86% of our population wanting to buy their own home—and for making sure that they can reach that aspiration. The reality of home ownership can be within their grasp. It is right that we help to make their aspiration more affordable.
Brandon Lewis
It is always good to see the institutional money to which my hon. Friend refers investing in the British property market and playing its part in driving up housing supply. I am keen to see, as I have said before in the House, an increase in supply across all tenures. We have to make sure that we build the right homes in the right places, with the right tenures for the people who need and want those homes.
Mr Clegg
The Minister is generous in giving way. On the point about extra supply, he said—I do not quite know which schemes he was referring to—that in some London schemes there is evidence of a 2:1 replacement, rather than the wider picture of a 1:10 under-replacement. Will he tell me a little more about that scheme, and does he believe that when the right to buy is extended from the five pilot areas, once a property is sold it will be replaced twice over in all the areas where the right to buy applies?
Brandon Lewis
The point I was making was that in the first year’s sales of right to buy homes in the reinvigorated scheme in London, properties have been replaced in the timeframe at a ratio of 2:1. That is a fact. The one for nine to which the right hon. Gentleman refers does not compare like-for-like figures—it is a totally false representation. On the wider scale, there is 1:1 as well. I would go further, as this is not about replacement. Once a home has been bought by someone who lives in it for five years, it does not disappear from the housing stock. The homes that are built are extra homes that increase the housing supply. Under the voluntary agreement, housing associations will deliver one extra home at least for every home that is sold. The Housing and Planning Bill, which the hon. Member for Westmorland and Lonsdale has consistently opposed, would ensure that the planning system plays a part in helping to drive up an increase in supply.
In the last Parliament, we reformed and streamlined the failing top-down planning system we inherited. Today, local people are in control and developing their own plans for house building, while the planning system is faster and more efficient.