Budget Resolutions and Economic Situation

Debate between Siobhain McDonagh and Mark Pawsey

Thursday 9th July 2015 Commons Chamber

[Siobhain McDonagh]

I totally agree, but may I make it clear that I am a big supporter of the right to buy? I believe it has liberated a lot people, but it is the opportunity for all, or all who can, that I want to save today.

Correcting the flaws in the tax system would stop the housing market being distorted to disadvantage first-time buyers.

[Mark Pawsey (Rugby) (Con)]

If the hon. Lady is such a strong supporter of the right to buy, does she welcome, as we do, the right to buy for tenants of housing associations?

[Siobhain McDonagh]

My problem with the current plans is what they will do to the security and continuing support that housing associations can provide, but if the Government can provide a model whereby we can replace those properties, one for one, my answer is: almost certainly.

Many constituents come to me afraid they will never be able to save enough to put down a deposit on their first home; most of their monthly pay packet goes straight on rent and there is nothing left to save. Their rent is driven up by buy-to-let landlords, who monopolise the housing supply and charge what they want. As a result, 82% of people in London who do not own a home believe they will never be able to do so. If the unfair advantage given to buy-to-let landlords is removed, more people will be able to buy their first home; in addition, there will be reduced demand in the private rental sector, so rents and the housing benefit bill will fall. I urge the Chancellor to look again and do more with buy-to-let mortgage tax breaks.