Housing and Planning Bill (Fourth sitting)

Seema Kennedy Excerpts

Thursday 19th November 2015 Public Bill Committees

[Dr Blackman-Woods]

I know that the Mayor’s office has made positive comments about encouraging starter homes. However, the Mayor has also said that he is—or at least people in his office have said that they are—concerned about how the Bill will be implemented, and about powers that will be given to the Mayor to prevent damage to other products that he already makes available. The Opposition have been explaining that there is considerable concern about the possibility that the clauses will crowd out other useful products that exist to support people into home ownership.

[Seema Kennedy (South Ribble) (Con)]

The hon. Lady has made much reference to the building of social housing, and how she would like that to be incorporated into the clause. Will she explain why fewer council houses were built between 1997 and 2010 than between 2010 and 2015?

[Dr Blackman-Woods]

Yes, I can do that easily and am happy to refer the hon. Lady to the figures I gave a moment ago. The last Labour Government supported housing associations to build social homes for rent. That is why the figures for social rented homes—[Interruption]. If Conservative Members want to look at the figures, they are on the DCLG website and they break down how affordable homes are delivered, and under what tenure. They make it clear that in 2003-04 about 20,000 homes for social rent were being built. By the time the recession hit, that had increased to about 37,000 or 38,000 homes a year.

That was not enough, but it was more than when we came to office. Last year, in that same category the number was 10,000. Perhaps we did not build enough homes for social rent, but the situation was a lot better than now.

--- Later in debate ---

[Dr Blackman-Woods]

My hon. Friend makes a simply excellent point. The housing associations that I have spoken to have been careful in the comments they have made. The point that again needs emphasising is that no one is saying that there should not be an initiative to support starter homes, because that would clearly be ridiculous. Of course we want measures to stimulate starter homes and increase the ability of people who can to enter the housing market. What seems really strange to us is why starter homes are being prioritised in this way, even when there is a significant danger—this was expressed by many who gave evidence to the Committee—that they could crowd out other ways of entering the housing market, such as rent-to-buy schemes, or other types of affordable housing.

A manifesto commitment was made by the Conservative party to deliver 200,000 starter homes. It might be that the whole policy we are discussing has been decided upon because of that manifesto commitment. If that is the rationale, let us be clear about that—

[Seema Kennedy]

Will the hon. Lady give way?

[Dr Blackman-Woods]

I want to finish my point first.

I am not suggesting for a minute that the Government should not be delivering on a manifesto commitment if they wish to do so. I am suggesting that if that is the only rationale it explains a lot, because it means that there is no rationale behind housing delivery across all sectors; the rationale is simply to address that one commitment, to the exclusion of meeting housing need, and doing so across all other sectors.

[Seema Kennedy]

Will the hon. Lady accept that 86% of Britons aspire to home ownership, so our manifesto commitment is important? Also, on what basis should a Government legislate other than what was in their manifesto?

[Dr Blackman-Woods]

Had the hon. Lady been listening to me earlier, I said that if the only rationale for the particular clauses that we are discussing was a manifesto commitment, that is perfectly understandable. My point was about whether that is the only rationale. What one would expect to hear from her, or what I hope I will hear from the Minister in a moment, is why a manifesto commitment was made to deliver 200,000 starter homes to the exclusion of meeting housing need across all other tenures and sectors. That is the question I was asking.

As we all know, we are the party of aspiration, we want people to be homeowners and we are not against measures that improve access to home ownership. The point I was making was that a lot of people have given evidence to the Committee suggesting that prioritising starter home development in quite the way that the Bill does could crowd out other forms of access to home ownership, most notably other models of low-cost home ownership, such as rent to buy or equity share, and that is not entirely sensible. That is our contention, and it is a reasonable one given the evidence received.