Richard Bacon
Main Page: Richard Bacon (Conservative - South Norfolk)(8 years, 8 months ago)
Commons ChamberI have already given way to the hon. Gentleman, and I want to make some more progress.
We are building even more, and that success will be repeated on a grander scale. Whether it be through right to buy, starter homes or Help to Buy: when buyers can buy, builders can build. We can support and we will support the aspirations of hard-working people. These plans are at the heart of our ambition to build those 1 million new homes. We are clear that we must go further and faster in all areas of housing supply. The Housing and Planning Bill is part of that, and it will give housebuilders and local decision makers the tools and confidence to deliver more homes.
I know that Members of all parties will want building on brownfield land to be the first choice at all times. Under this Government, brownfield land will be prioritised. New homes will be built near existing residents, so that their green belt and local countryside is protected. Regenerating eyesores and derelict land to create modern homes for the next generation is the opportunity that lies ahead of us. A new statutory register of brownfield land will provide up-to-date and publicly available information on land suitable for housing. Forty brownfield housing zones are being created across the country, including 20 in London. I thank my hon. Friend the Member for Uxbridge and South Ruislip, the Mayor of London, for working with us to deliver those homes in London. We want to see planning permissions in place for 90% of these sites by 2020. We will also change the parliamentary process to allow urban development corporations to be established more quickly and get on with delivering new homes at the earliest opportunity. Smaller firms in particular will benefit from quicker and simpler ways of establishing where and what they can build, especially with the new “permission in principle” for sites on the brownfield register.
The Bill will ensure that the planning system helps to drive our increased aims for the supply of houses. During the last Parliament, we reformed and streamlined the failing top-down planning system. We dismantled regional spatial strategies, and as Planning Minister, my right hon. Friend the Secretary of State was able to oversee the reduction of thousands of pages of planning guidance to just 50, thus creating a system that people can understand and work with. Today, local people are in control.
My hon. Friend mentioned making it easier to establish urban development corporations. Will he also reflect on the possibility of establishing rural development corporations, with powers to make things happen quickly?
The right hon. Member for Wentworth and Dearne (John Healey) opened the debate by referring to five years of failure. By the way, I do not know where he is. He seems to have done a bunk. He spent a little time in the Chamber; he did not turn up to the Committee stage of the Bill at all, which for a shadow housing Minister strikes me as a little odd. What he should have referred to is five years of recovery from the dreadful situation we inherited. I enjoyed his speech.
Unfortunately, my right hon. Friend has had to go and meet the Minister because of the decimation of the steel industry in his constituency.
I understand that. It is a very good reason for not being in the Chamber. I enjoyed the right hon. Gentleman’s speech, particularly the reference to the money inherited from Labour. There was no money. I do not think he got the memo written by the right hon. Member for Birmingham, Hodge Hill (Liam Byrne) that played a significant part in the general election. The Prime Minister carried it round with him the whole time. The memo said that there was no money.
We have been facing not five, but 50 years of failure from all Governments, who have worked on the flawed assumption that only the Government can solve the problem. For 50 years Government have been part of the problem, getting in the way of the supply of housing being allowed to rise to meet demand. We saw quite a lot of finger-wagging from the right hon. Member for Wentworth and Dearne, but we heard nothing in the way of solutions. I listened to Opposition MPs carefully for many weeks in the Housing and Planning Bill Committee and I heard a lot of whingeing, but no real solutions. It is as if they have never asked themselves why the supply does not rise to meet demand. We do not talk about the shoe crisis, the jeans crisis, the DVD crisis or the chair crisis. Everyone in this Chamber is wearing a pair of shoes—including you, Madam Deputy Speaker, and if I may say so, yours are very nice shoes.
My hon. Friend should move along a bit. They are very nice.
No one says we need a national shoe service in order to solve the problem. We have a broken model, and it is this Government who are seeking to fix it. What I find so depressing from the Labour Benches is the paucity of ideas, the sheer paucity of radicalism. Almost every amendment proposed from the Opposition Benches during the Committee stage of the Housing and Planning Bill would have had the effect of slowing things down—sand in the gears, a spanner in the works. Labour Members do not seem to recognise that they are seeking to make the central problem—the problem of supply—even worse.
Last week Kevin McCloud addressed the all-party self-build, custom-build and independent house building group at our No. 10 summit, and I am very pleased that he was able to do so. He said:
“The consumer has been on the receiving end of a pretty poor deal. We build some of the poorest, most expensive and smallest houses in Europe. That’s not something to celebrate.”
Yet according to Ipsos MORI, 53% of the adult population would like to build a house at some point, 30% would like to do so in the next five years, and more than 1 million people would like to buy a site and start in the next 12 months. This can be done at scale. Adri Duivesteijn in Almere in the Netherlands has proved that it can be done, with serviced plots for over 3,000 dwellings. Cherwell District Council is now doing it in Oxfordshire, with over 1,900 serviced plots. This is the way to help supply rise to meet demand, putting the customer at the centre. Chapter 2 of the Housing and Planning Bill, on self-build and custom house building, will make that happen. The right hon. Member for Wentworth and Dearne did not mention chapter 2 or self-build and custom house building.
There are very legitimate reasons why local authorities might want to have and maintain affordable housing. In my view, they could and should use some of their £22 billion of reserves to establish, promote and grow mutual housing co-operatives for affordable rent. That is completely normal in Berlin, where it is called genossenschaften, and elsewhere on the continent. These arrangements are not relevant in terms of right to buy because they involve people entering into contracts with each other to form part of a co-operative. I thought there was a thing called the Co-operative party, but we heard nothing about this in the Bill Committee; I was the one talking about it. Interestingly, the local authority leader who showed the most interest in it when asked about in-perpetuity social rents in big cities was the Conservative leader of Westminster council, Philippa Roe, who said very seriously, yet with a gleam in her eye, “Yes, we’re looking at that.” From Labour Members, I am afraid we heard nothing.
We need vision and imagination, and the Bill will make that easier to achieve. Instead of building the most poorly performing, most expensive and smallest homes in Europe, we should do things differently. We should use our imagination and our knowledge to make the best places that we can, with the best-performing homes that we know how to build, in the most beautiful surroundings that we know how to create, where people will be able to find an education, find the skills they need for life, find a job they enjoy, perhaps start their own business, put down roots, build a house or have someone build a house to their own design, raise a family, and be part of a community. These are all normal human aspirations. We have to make it normal to achieve them, so that housing supply rises to meet demand here in this country, just as it does in the rest of Europe. That is the vision that we should pursue, and this Government, with the Housing and Planning Bill, will make it happen.
The Government’s record on housing over the past five years is sadly one of failure, and failure across all parts of the housing sector. It is a failure driven by short-termism, incompetence, and a lack of understanding of how millions of people live their lives. People in my constituency live very different lives from the people the hon. Member for South Norfolk (Mr Bacon) described. Most people in my constituency earn very low wages, often on very short-term contracts. Getting a home of their own—
No. Getting a home of their own is a dream too far; being able to self-build is absolutely out of the question.
Since 2010 this Government have presided over the lowest level of homes built in peacetime since the 1920s. This fact does not become dulled by repetition. Since May, muddled thinking has given way to contradictory policies. The Government give with one hand and take away with another. The Chancellor’s Office for Budget Responsibility confirmed in November’s “Economic and fiscal outlook” that Government policies since the election will lead to 34,000 fewer housing association homes being built over the next five years.
I share the Government’s desire to create a property-owning democracy for those who want to own their own home. I can therefore only assume that the Secretary of State shares my disappointment that home ownership under this Government has fallen by over 200,000 to the lowest level in 30 years, below the EU average for the first time on record. To choose a period at random, from 1997 to 2010 the number of homeowners rose by more than 1 million. The rise of insecure working practices, such as zero-hours contracts and underemployment, has meant that many people cannot save for a deposit or get a mortgage, because they do not have a permanent contract.
The state of social housing in many parts of the country is close to breaking point, with waiting lists of many years. If the Government are not sure why that might be the case, perhaps they could look back to 2014, when the number of homes built for social rent was at its lowest for at least two decades. The number of affordable homes provided in the past year fell by more than a quarter compared with 2010.
This Government simply do not get social housing. I sat on the Localism Bill Committee in the last Parliament, when a Conservative member of the Committee referred to social housing as “housing of last resort.” I was born in a council house and I grew up in that house and that community—it was my home. Council housing provides a safe, warm place for millions of people to call home. It is not housing of last resort. The proposal in the Housing and Planning Bill, which is currently going through this House, to scrap tenancies for life is a disgrace, and this Government should be ashamed for proposing such a change.
This Government have made it harder to build social homes by choking the planning system. They have consistently watered down section 106 affordable homes requirements, while in his day job as Mayor of London, the hon. Member for Uxbridge and South Ruislip (Boris Johnson), who is no longer in his place, has banned Labour councils from insisting on the building of genuine social homes through section 106 agreements in his London plan. He did that against the guidance of the planning inspector, but with the approval of the former Communities and Local Government Secretary, the right hon. Member for Brentwood and Ongar (Sir Eric Pickles).
With home ownership an unobtainable ambition for many, and with social housing in short supply, it should come as no surprise that the private rented sector has enjoyed tremendous growth. Although there are many good private landlords who provide decent homes for their tenants, many other tenants endure daily instability and short-term tenancies—typically of six months—as well as poor standards and rent increases at a pace that outstrips wages.
By every metric, and in whatever part of the housing sector, the situation has deteriorated in the past five years. I hope the Government can start to address the differing and diverse needs of families across this country with a comprehensive strategy that does more than simply manage decline.
I have spent too many years in the trenches of statistical warfare on housing supply, so today I want to use the few minutes available to me to talk about values.
Conservative Members have spoken about one aspiration—the aspiration for home ownership. That is an important and vital aspiration, because most people want to own their home if they can and we should help them to do so. The fact that the Government proposals for starter homes require households in my constituency to have an income of £101,000 does not fill me with confidence that the need will be met in central London any time soon. None the less, it is an important aspiration. Mobility is another important value, because we want to make the best use of the existing housing stock and we want people to be able to move around this country for work and other purposes.
I want to spend my few minutes talking about another value, which is the value of security. A home is not just based on an economic transaction—people do not just spend rent or mortgage payments to secure a bed for the night—but is where people bring up their family and experience community and neighbourliness, and it therefore means so much more to them. That does not disappear for people on low incomes: a home means as much to someone on a low income as it does to the millionaire who can spend £6 million to buy a home in the London luxury market.
No, I will not give way, because too many Members want to speak.
What we have seen under this Government—although it did not start in 2010, of course—is an erosion of the principle of security. That erosion reached its nadir with the proposal to scrap the security of tenure for social housing. The proposal to scrap secure social tenancies will mean an intrusion into the lives of the poorest, and only the poorest, every few years as they are required to justify their home.
The principle of security is being eroded in many other ways. There has been a doubling in the number of families who are bringing up children in private rented housing, where they can only rely on a 12-month assured shorthold tenancy. The Government refuse to do anything to address the desperate need for longer security for people in the private rented sector. There has been an increase in homelessness. It was coming down for many years from too high a peak under the last Labour Government, but it is soaring again. There has been a fantastic 820% increase in the number of families being held illegally in bed-and-breakfast accommodation. Families are living, sometimes for years, in nightly booked temporary accommodation after they have been homeless. That has happened to my constituents. Insecurity is the new normal, but only for the poorest. Far from addressing that crisis, the Government plan to extend it and entrench it even more widely.
The stories of my constituents and the constituents of everybody on the Opposition Benches—and, quite possibly, the stories of the constituents of Government Members that go unheard—are stories of people torn away from their children’s schools, torn away from their parents, torn away from the people they have caring responsibilities for, torn away from the volunteering they do, torn away from their part-time or even full-time jobs and torn away from their communities. It is their children, above all, who suffer. The hyper-mobility that is forced on families at the moment is bringing about worse physical health, worse mental health, higher suicide risks and worse educational achievement. We are entrenching that into the lives of the poorest. Sadly, I do not have time to tell some of those stories, although I would love to be able to do so.
We know not just from the anecdotes, but from academic research that has been done in Australia and America, just how damaging this is. Communities suffer as well as individuals when the people who are the building blocks of communities—people who are registered to vote and who are civic participants—can no longer be so because they are forced again and again to move house. They are forced to move house every six months or every year, and now social tenants will be forced to move house every three or four years.
I will finish with a quotation from Professor Steve Hilditch, who for over 40 years has been an academic, a manager and a deliverer of housing. He says in respect of the end of secure social tenancies:
“Social rented housing is our most precious housing asset. Its existence broke the historic inevitability that people on low incomes and vulnerable people would also endure homelessness and dreadful housing conditions. It removed the blight of bad housing from generations of children. In my view it was the strongest mechanism of all to achieve genuine social mobility and to give children born into poor families similar opportunities to those enjoyed by better-off families.”
I am grateful to the Opposition for calling a debate on affordable housing, because it gives me the opportunity to point out the very different records of Labour and my party in both national and local government in supplying affordable homes in Worcester.
Affordable housing is one of the most pressing and important issues for me, as the MP for Worcester. It is the single most commonly raised concern at my surgeries. Although Worcester has seen nothing like the price inflation that has been seen in the south-east, the price of housing is a major worry for young people, whether they are students and apprentices setting out to rent or young professionals looking to buy their first home.
In our beautiful county town, a city of about 100,000 people, there is rightly pressure to build affordable homes on brownfield rather than greenfield sites, both to protect the stunning Worcestershire countryside, which is such an asset to our county, and to defend the vital floodplains on which we rely each year to keep the River Severn out of homes and businesses. I was pleased to hear in a recent meeting with the Environment Agency that it rates Worcester City Council as one of the best councils in the area at using the planning system to protect its floodplains. Given that we see winter floods almost every year, that is essential.
For as long as anyone can remember, Worcester has been bombarded by Labour leaflets telling people that Labour is the party of affordable housing. I remember fighting local election campaigns as long ago as 2001 in which every Labour leaflet was adorned with messages about affordable housing. In 2003, the Liberal Democrats went into coalition with Labour on the council, with the explicit aim of delivering more affordable houses. If Labour had any track record of success in this area, the leaflets would be understandable. Knowing the importance of affordable housing, I made it my mission to explore how much Labour administrations in the city had delivered.
The figures from Worcester City Council tell a stark story of Labour neglect. From 1997 to 2000, a period in which Worcester had a Labour MP, a Labour-led council and—oh joy of joys—that things-can-only-get-better Labour Government in Westminster, the council built fewer than 20 affordable homes per year. Very few of these homes, and none after 1997-98, were for affordable ownership, and the abysmal record of Labour when they had complete political control of Worcester was of just 22, then 11, then 19 affordable homes delivered—these figures in a city of 100,000 people.
Unsurprisingly, Labour was turfed out of control of Worcester in 2000 and a Conservative administration took control. What happened to affordable housing delivery when those nasty Tories took over? It rose 47% in the first year, more than doubled in the second year and then ran all the way from 2002 to 2012 at an average of 112 homes per year—five times as many as Labour had delivered. “Ah, yes,” said the Labour party, “but things slowed down after we lost power in 2010,” and yes, they did. Labour left us with the lowest rate of house building since the 1920s. It took years for the housing market to recover from the great recession that began in 2008, but in Worcester we kept on building affordable homes.
In 2012-13 the council delivered a remarkable 117 units of affordable housing, 79% of all new homes delivered in the city that year, under a Conservative administration.
I am delighted with my hon. Friend’s intervention, although he may be less delighted to hear that the year he joined the Conservative party in Worcester was the year I was born.
What happened when Labour and the Liberal Democrats took control? Affordable housing delivery slumped, falling from 117 to 76, a decline of more than 30% in a single year. Worse still, the fall in delivery of housing meant a slowdown in receipts from the new homes bonus, a welcome financial incentive introduced by the coalition Government to support delivery of affordable housing. Not only did Labour’s chaotic year in control mean a more acute housing shortage, but it also meant damage to the city’s capital receipts.
Fortunately, the voters of Worcester, seeing the record of both Labour and the Liberal Democrats—who, alas, are absent from this debate—elected more Conservative councillors in 2014, and those mean old Tories took back control of the council once again. The result: an immediate recovery in the number of new affordable homes. The delivery of affordable homes in Worcester in the last year is the highest on record since 1997, and out of 460 new homes delivered in the city, 260 are rated as affordable. In 2015, new homes bonus income for the city rose to £5 million. The lesson here is stark: Labour always promise affordable homes, but only the Conservatives actually deliver them.
I know very well that there is still a great deal more demand, and the city’s own estimates suggest that this year’s record delivery is only the baseline for what is needed. In debates on building affordable homes it is often as if the only choice is to deliver them and concrete over our green fields or to give up on providing them altogether. That is simply not true. In fact, whereas a fifth of homes delivered in Labour’s one year of control were delivered on greenfield sites around Worcester, that figure has fallen, even as delivery of homes has increased, to only around 7.5% in the current year. Looking ahead, about 90% of the homes planned for in Worcester’s land supply can be delivered on brownfield sites, and I hope that figure continues to increase.
There is much the Government can do to further support the delivery of affordable homes in brownfield sites, and I am pleased to hear about the new brownfield fund. I hope the Government will look into more mechanisms to support renting above the shop and city centre living, which I believe can both help our high streets and address the desperate need for affordable homes.
I welcome the Government policies on Help to Buy. I have seen that for myself on the streets of Worcester, meeting people who have been able to buy their own home for the first time who would not otherwise have been able to do so. I particularly welcome the Help to Buy ISA. I also welcome the Government’s efforts to crack down on rogue landlords, going further than Labour ever did in their 13 years in office to deal with this very serious issue.
Today’s motion is typical of the relentless negativity we see from today’s Labour party. It says nothing about the aspiration of working families to live in homes they can own, nor the steps that have been taken, greater than under 13 years of Labour, to regulate rogue landlords. I am very proud that in Worcester, under a Conservative Government and with a Conservative council, we are delivering more affordable homes than ever.