(8 years, 7 months ago)
Commons ChamberI totally agree; I am really pleased that my hon. Friend has reminded me that we need to consider how this area of the Bill affects council tenants and local authorities up and down the country.
Labour has tabled amendments to chapter 1 of part 4 to try to limit the negative impact of the right-to-buy provisions. Amendment 88 seeks to protect certain types of specialised housing and amendment 89 would require housing associations offering the right to buy to their tenants in London and elsewhere to reinvest all the money in replacement affordable housing, including a guaranteed like-for-like home in the same local authority area or London borough. My right hon. Friend the Member for Tooting (Sadiq Khan) was among those who tabled that amendment.
We have also tabled amendments that would prevent property sold under the right to buy from being converted into buy-to-let dwellings for a period of 10 years; amendments that would ensure that the discount for homes sold under the right to buy remained in perpetuity; and amendments that would ensure that housing associations were able to carry out proper checks before proceeding with the right-to-buy offer. Yet again, we find ourselves stretched for time. We are facing a chapter that has the potential to decimate the social housing sector, so I will speak to the amendments as one group.
Shelter has estimated that about 113,000 homes could be lost immediately through the provisions in the Bill. The Institute for Fiscal Studies has said that owing to the scheme’s current vagueness and the
“coalition’s less-than-impressive record in delivering replacement housing under the existing right-to-buy…There is a risk that these policies would lead to a further depletion of the social housing stock”.
What seems to have complete consensus across the housing sector is that there is no guarantee of like-for-like replacement for homes sold under the right to buy. Of course, the Minister will tell me that the Government are guaranteeing a two-for-one replacement of affordable housing, but that measure needs closer inspection. The Government’s new definition of “affordable” housing in new clause 31 includes starter homes, which can be up to £250,000 outside London and up to £450,000 in the capital. That means that a housing association home sold under the right to buy can be considered to have been replaced by another house or even another two houses that will be for sale at up to a quarter of a million pounds or almost half a million in London. That is not a replacement of like for like by any stretch of the imagination.
The definition of “affordable homes” has been described by one hon. Member of this House as “elastic and misleading”. Does my hon. Friend agree with that characterisation from the hon. Member for Richmond Park (Zac Goldsmith), whom I congratulate, by the way, on becoming a dad again this week?
My right hon. Friend makes an excellent point. What we are trying to say in this debate is that the Government’s right-to-buy proposals do not bring about like-for-like replacements. To have two very expensive homes replacing one home for social rent does not add up to a sensible policy for most people. The Government want to push up the rates of home ownership and we agree that there should be measures to promote that. However, we do not think that those should come at the expense of the social rented or local authority sectors.
I am going to speak in support of a number of new clauses and amendments and speak briefly to the Government’s new clauses.
New clause 50 would incorporate minimum space standards in building regulations for new dwellings in England. It seeks to ensure that new homes are of a high standard and are built with the realities of day-to-day life in mind.
In October 2015, the Government introduced a new housing standard called the national described space standard. That was supposed to improve the quality of new-build housing by ensuring that it was built to an adequate size. Unfortunately, it is voluntary and too complicated for most authorities to introduce.
Royal Institute of British Architects research shows that more than half of new homes being built today are not big enough to meet the needs of the people who buy them. The squeeze on the size of our houses is depriving thousands of families of the space needed for them to live comfortably. Moreover, establishing the standard within building regulations could minimise the bureaucracy at a local level and mean that councils had a ready-made measure that they could adopt. It is a straightforward proposal and I hope that even at this late hour the Minister will tell us that he is going to adopt it.
New clause 51 would allow local authorities to develop a planning fees schedule that would enable the full costs of processing planning applications to be recovered. Since 2010, local authorities’ spending on planning has almost halved, falling from £2.2 billion then to £1.2 billion this year. That decline is second only to the decline in spending on cultural services. We heard from the Royal Town Planning Institute, which gave oral evidence to the Select Committee, that it believed that councils should be allowed to recoup the full costs of providing planning services. The point has rightly been made that good, well-run planning departments contribute to economic growth and development, and that they should be supported in that role.
The issue of overstretched local authorities was raised several times on Second Reading and in Committee. Local planning departments are experiencing reduced resources and greater pressure, as well as increasing insecurity, because people do not know when the next round of Government cuts will cause them to lose their jobs. The only way in which to address that is to ensure that planning departments have the resources that will enable them to work effectively.
I am pleased to note that what we said during all that time in Committee did not fall on completely deaf ears. Ministers appear to agree with us, in theory, that planning needs additional resources. However, new clause 45 is such a poor execution of that notion that it might as well not be there. We must ask why the Government have acknowledged the need for the full recovery of planning fee costs, but will allow that to happen only when the service is contracted out. Why have they not considered allowing local planning departments to do the same? What can they possibly mean by increased devolution if they do not even trust local planning authorities to set their own fees? I hope that the Minister will do something about that tonight.
New clause 57 would empower local planning authorities to impose a planning obligation when giving permission for the construction of new housing for sale by requiring a proportion of the housing to be marketed exclusively to local first-time buyers.
My hon. Friend will know how fed up Londoners are with the current record low level of home building and what a con the Government’s £450,000 starter homes are, but is she aware of the scale of the problem caused by developers selling homes in London to investors in Asia and the middle east before they have been completed and made available for purchase by Londoners? Will the new clause go some way towards ending that scandal?
My right hon. Friend has made an excellent point. We are, of course, entirely aware of that issue, which affects those in London and elsewhere. New clause 57 would enable a proportion of new homes to be held back exclusively for Londoners, or local people elsewhere, who wanted to buy their first homes. Anyone who supports the ability of Londoners to buy their own homes must surely support the new clause. I am sure that my right hon. Friend will want to ask the hon. Member for Richmond Park (Zac Goldsmith) whether he will support it, given that it seeks to ensure that a number of new properties in London and elsewhere go to local first-time buyers. We know that this is a particular issue in London, because so many of the new properties are sold off plan to overseas investors before local people have a chance to enter the housing market.
May I just make clear that I have nothing against foreigners? Some of my best friends and the families whom I know are foreigners. However, this is about fairness, and about giving first dibs to Londoners.
Absolutely, and that is what new clause 57 seeks to do, for Londoners and for a percentage of local people in all areas of the country where there is acute housing pressure. We want to ensure that some new housing is reserved, at least for a period, so that local people have a chance to get on to the housing ladder.
Amendment 100 would ensure permission in principle is limited to housing on brownfield land in England. We know that the Government’s productivity plan indicated that the proposals for permission in principle would relate specifically to brownfield land, but the Bill itself places no such limitations upon it.