Housing and Social Security

Richard Bacon Excerpts

Thursday 22nd June 2017 Commons Chamber

[Sajid Javid]

Where that happens, we will compensate people in other ways and make sure that the welfare policy remains fair to everyone.

In the last year, we spent £24 billion on housing benefit, helping people to cope with the ever-increasing cost of housing.

We are not just tackling the symptoms of our broken housing market; we are taking action to fix the causes. Our housing White Paper, which was published earlier this year, set out exactly how we will go about that: releasing more land where people want to live, building the homes that we need faster, getting more companies involved in the housing market, and supporting people who need help now. The Queen’s Speech, which promises proposals to

“help ensure more homes are built”,

marks a significant step in turning that blueprint into bricks and mortar.

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

The Secretary of State mentioned the housing White Paper, which I thought was a terrific document, but in his little list he neglected one thing. Given that the Self-build and Custom Housebuilding Act 2015 is now on the statute book and was strengthened by the Government in the Housing and Planning Act 2016, does he think that serviced plots and land pooling may have an important role to play?

[Sajid Javid]

I agree very much with my hon. Friend about the importance of self-build and factory-built housing, and making sure there are enough plots for that. That was why a key part of the housing White Paper was about working on how we can diversify the market further. I thank him for the work he has done and continues to do in this sector. He has made a significant contribution.

We are investing more than £7 billion through the affordable homes programme, which will provide funding to housing associations, local authorities and other providers to deliver 225,000 affordable housing starts by March 2021. We are making the affordable homes programme more flexible so that it funds a range of affordable homes for rent, as well as home ownership. That will enable providers to build a range of homes to suit people’s needs.

My most urgent priority continues to be getting rough sleepers off our streets. We will establish a homelessness reduction taskforce, pilot Housing First and implement the Homelessness Reduction Act 2017 so that more people are helped earlier.

In the wake of the Grenfell Tower tragedy, it is more important than ever that we continue to support housing associations and local authorities with their plans to regenerate housing estates. We have paid out some £32 million in grants to support early phase work with local residents. We are providing practical support and guidance to ensure that tenants are at the heart of all new regeneration schemes, and that their rights are protected. We shall continue to assess bids to allocate £290 million of project finance.

But that is not all: we are determined to make all types of housing more affordable and secure for ordinary working people. That is why we will legislate to stop tenants being charged fees for renting a property. That will mean that tenants will be able to see at a glance exactly what an advertised property will cost them, with no hidden or upfront charges. It will also stop unscrupulous agents who rip off tenants with unjustifiable and opaque fees. The full details will be in a draft tenants’ fees Bill, which we expect to publish during the first Session of this Parliament.

Can we deliver all this? Yes we can. Just look at our track record. Since 2010, we have delivered 893,000 additional homes, including 333,000 affordable homes.

--- Later in debate ---

[John Healey]

To come up with that number of Bills, the hon. Gentleman has to incorporate anything that can be loosely described as a draft Bill or flagged as potentially coming to the House in the next two years. The Prime Minister promised she would not call an election, but then did so because she wanted a bigger majority, a stronger mandate and greater authority. I am sure the Secretary of State will accept that the Prime Minister has none of those things at a time when our country is facing—I know he will appreciate this being such a strong Brexiteer—some of the biggest challenges we have faced for decades at home and abroad. At a time when we need a heavyweight Government, we have an interim leader and a set of lightweight Government Ministers.

[Mr Bacon]

There are plenty of heavyweight people around. Indeed, there are plenty of heavy people around, although I should say that I have lost two stone since the beginning of the election campaign. I hope that the right hon. Gentleman will get on to housing at some point. Does he agree with the Redfern review, which he commissioned, that Help to Buy has the potential to be inflationary? Does he further agree that it might be better to switch the money towards help to build, which, unlike Help to Buy, would in every single case result in extra housing being built?

[John Healey]

We need to do both, of course. The major flaw with Help to Buy is that nearly a fifth of the people being helped to buy through the scheme are not even first-time buyers. Nearly 4,000 being helped by Help to Buy are on incomes of more than £100,000. It is not well targeted and it is not good use of public money. It could be spent much better, especially on helping younger people on ordinary incomes to get their first foot on the housing ladder.

--- Later in debate ---

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

It is a pleasure to serve under your chairmanship, Mr Deputy Speaker. I always think that a time limit is good for focusing the mind and generating extra productivity, so I will adhere to your strictures.

The Government said in their Queens’ Speech that they want to build more houses, which is an approach I strongly support. The title of the recent housing White Paper is “Fixing our broken housing market”—an important title and an admission of something that has been increasingly clear for many decades under Governments of all parties: our housing market simply does not work properly. The supply of housing does not rise to meet demand. [Interruption.] I see the right hon. Member for Wentworth and Dearne (John Healey) nodding, and I am glad that he is nodding; I hope to persuade him of some of the solutions on which he is still resisting my charms. I am sure that I will get there over the course of this Parliament.

The fact is that our broken housing market is failing to meet aspirations. In effect, demand is unable to influence supply and drive volumes in the way that it does in markets that operate successfully. Some years ago in a Committee room upstairs, the presenter of “Grand Designs”, the famous Channel 4 television programme, told our all-party parliamentary group on self-build, custom and community housebuilding and place-making:

“The consumer has been on the receiving end of a pretty poor deal. We build some of the poorest, most expensive and smallest homes in Europe. That’s not something to celebrate.”

At the core of the housing debate is a key intellectual problem: is development good or bad? We often see the word “development” used as a pejorative term, yet the instinct that we all have to nest and to build a home is a response to one of our deepest human needs. Mr Deputy Speaker, if you were to go on a survival course, you would be taught that without food you would die within seven to 10 days and that without water you may last three days, but you can die without shelter in 20 minutes. However, we often talk about development, which means providing enough shelter for everyone, as if it is a bad thing.

During a general election debate, one of my opponents said that housing—although she admitted that it was necessary—was a “heavy price to pay”. I understand that language even if I disagree with it. The reason people so often speak about development in that way is because it is driven and brought forward in the wrong way. It should be obvious that without enough housing the chances of our children and grandchildren finding a home that they can actually afford are rapidly fading from view. In order to make “development” a good word, we have to have good development.

[John Howell (Henley) (Con)]

Does my hon. Friend accept that one way of driving forward house building is through neighbourhood plans? They are delivering more houses than originally set out by the district councils that instructed the building of houses.

[Mr Bacon]

I thank my hon. Friend for that and agree with him, although the caveat is that some developers are good at getting around neighbourhood plans, undermining their basis and confidence in them. The Government need to address that.

The key to getting the right kind of development is more choice and beauty. Now, that may sound airy-fairy, but it is the exact opposite, something which the Prince of Wales noted in his BIMBY or “Beauty-In-My-Back-Yard” campaign. We must have better, smarter, beautiful development that offers a wide range of real choices to consumers and is actively welcomed by existing communities, including the grandparents and parents who so often oppose development with arms folded saying, “We don’t want any houses in our area.” They want to see the next generation flourish and do well, and see their own grandchildren adequately housed. We must allow our communities greater voice and choice about what gets built, where it is built, what it looks like and who gets first chance to live there.

[Robert Courts (Witney) (Con)]

My hon. Friend is making some extremely important points that resonate in my constituency. Does he agree that one way to ensure acceptance and, indeed, the welcoming of development in our communities is to allow for the increased availability of self-build, of which he is a great supporter, and to ensure the diversification of housing providers? Small local companies should be able to benefit from building, which brings jobs and work to the area.

[Mr Bacon]

My hon. Friend is absolutely right. As recently as 1988, 66% of housing in this country was built by small local builders. There has been a huge change that has benefited a small number of large companies, but not our communities or most of our constituents and society as a whole.

My hon. Friend mentioned self-build and it will not surprise him to know that I promoted, got through this House and the other place and secured Royal Assent for the Self-build and Custom Housebuilding Act 2015, which has now been strengthened by the Housing and Planning Act 2016. Some 53% of people in this country would, at some point in their lives, like to build their own house or have someone build a house to their design. Government policy should not just take account of that, but embrace it and make it as easy as possible.

All my Act does is require local authorities to keep a register of individuals and what are called “associations of individuals” who want to get a serviced plot of land to build a house. An “association of individuals” could be anyone: a group of friends; the governors of a school looking to provide accommodation to help recruit and retain teachers in difficult-to-fill subjects; or the Royal British Legion or a similar veterans’ body, such as Help for Heroes, working with veterans to fulfil their accommodation needs—[Interruption.] I see my hon. Friend the Member for Berwick-upon-Tweed (Mrs Trevelyan) nodding and I am pleased to see her in her place. An association of individuals could include the directors of a social services department looking to provide accommodation to help to recruit and retain social workers in parts of the country where jobs are difficult to fill. My act has now been strengthened by sections 9 to 12 of the Housing and Planning Act 2016, which require local authorities not only to keep a register but, crucially, to provide enough suitable development permissions to meet the demand on the register.

I turn again to the right hon. Member for Wentworth and Dearne, because I do not think that he is fully persuaded of how powerful such measures could be. The Dutch expert group will be imitated by the right to build expert taskforce being launched at the end of the month at a housing conference in, funnily enough, my constituency. The taskforce will take the lessons that have been learned in the Netherlands. If we were building as many units of self-build and custom house building as there are in the Netherlands now, we would be creating 60,000 extra units a year on top of what is currently being delivered, which could make a significant difference.

I have two requests of the Government. First, paragraph 2.19 of the housing White Paper states:

“We will target the £2.3bn Housing Infrastructure Fund at the areas of greatest housing need. We will open this capital grant programme to bids in 2017… We will fund those bids that unlock the most homes in the areas of greatest housing need.”

Amen to that, but we need the details to be announced. I understand that they have not been announced due to the general election, but it needs to happen soon.

Secondly, the Government should adopt the 10-point plan of the National Custom & Self Build Association—point 2 in particular—which calls for a help to build equity loan scheme to help people get their own house. A deposit of just 5% is required to buy a home under the Help to Buy scheme, although that does not create any more dwellings; it just helps volume house builders to sell the houses that they have already built. I will happily provide the Government with what NaCSBA has proposed. A help to build scheme would ensure that an extra house was built. Moreover, one could recycle the money because, in most cases, as soon as the house is built the owner could re-mortgage, and the equity loan could be paid back and would be available to lend to somebody else.

The final thing that I want to say in the 30 seconds that remain is that our party did not reach out during the recent general election to young people in the way that it should reach out. However, it is true that all people, but young people in particular, need somewhere to live. It is absolutely fundamental. In many cases, young people have given up on the prospect of ever having their own place. We have to make owning a house a reality. The architect Rod Hackney once said:

“It is a dangerous thing to underestimate human potential and the energy which can be generated when people are given the opportunity to help themselves.”