Oral Answers to Questions
Debate between Stephen Williams and Emma Reynolds
Stephen Williams
My hon. Friend is absolutely right; the full range of schemes have helped a rather large number of people to get their foot on to the housing ladder. Let us not forget the situation we inherited. There was a credit bubble, through a growth in mortgages until 2007, and lots of warnings were given, including by my right hon. Friend the Member for Twickenham (Vince Cable), who is now the Business Secretary, that the bubble would burst—it did. That was a catastrophe not only for the economy, but for a lot of people trying to get their foot on to the housing ladder. Our schemes have been a real help to people in buying their own home.
Emma Reynolds (Wolverhampton North East) (Lab)
In 2010, the Government’s then housing Minister said in his first speech on the subject that the
“age of aspiration is back”.
But under this Government we have seen home ownership falling to a 30-year low; the lowest level of house building in peacetime since the 1920s; and a record number of young people living at home with their parents. Given that this Government have broken every promise on housing over the past five years, why should anyone believe their promises for the next five years?
Stephen Williams
I like the hon. Lady very much, but she has a tendency, as do quite a few people from her intake, to wipe the slate clean from the previous five years, or the previous 13 years when she was not a Member. The fact is that house starts and completions hit rock bottom in 2008-09, when there were just 88,000 starts. Since then, starts and completions have picked up: in the last year there were 134,000 starts; and the latest information we have, for 2014, shows there are now 253,000 new planning completions for housing. So there is a strong pipeline going forward.
Private Rented Sector
Debate between Stephen Williams and Emma Reynolds(10 years, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text
Stephen Williams
There is a whole suite of legislation that local authorities should be using. The basic duty is to provide accommodation that is in a fit and proper state to be let. That covers all sorts of things, including electrical safety. That is why we have provided these resources to local authorities. The powers are there. Where there are particular problems, we have given the resources to deal with them. Already once in this Parliament, in 2012, we updated the guidance—I am answering the hon. Gentleman’s question—to local authorities and we will update it again this year, so that everyone is clear what powers are available to deal with and prosecute, if necessary, rogue landlords. We have removed the cap on the £5,000 fine, so that if local authorities find that there are problems, magistrates have the freedom to ensure that they can issue the strongest possible penalties to root out bad practice in the sector.
On letting agents, we have already announced that they will be required to join an ombudsman scheme. In April, we approved three schemes. Secondary legislation is going through to ensure that all letting and property management agents belong to such a scheme. Just a couple of weeks ago, we published the “How to rent” guide to empower tenants with better information, so that they know their rights. That publication has been warmly received in the sector. We are working, genuinely, with the Royal Institution of Chartered Surveyors to update the code of practice on that area.
Rent control was mentioned several times. Earlier this year, the shadow housing Minister, the hon. Member for Wolverhampton North East (Emma Reynolds) said to Cathy Newman on “Channel 4 News”:
“Rent controls are not going to work in practice.”
I assume that she has changed her mind since that time.
Stephen Williams
I have only two minutes left, so I will finish my points.
As we all know—the evidence is there—before the Housing Act 1988, the private rented sector shrank to just 9% of households. Since then, it has doubled to 18% of households. Evidence from Britain and around the world shows that rent controls always lead to fewer properties on the market and higher rents.
We have also been working on a model tenancy agreement, which will be published soon. To answer the question asked by the hon. Member for Kingston upon Hull North (Diana Johnson), that will indeed address the issues that students face.
On letting agents fees, we have announced that there will be a requirement to belong to an ombudsman scheme. In the Consumer Rights Bill, which went through this House last week, we outlined provisions to deal with that. There will be transparency on fees. That will root out the practices that we all deplore and agree are wrong: double charging for credit agreements and changes to tenancy agreements. That should not be happening. We think that transparency and the fine for not belonging to the ombudsman scheme will largely root that out.
We all agree that we need to build more housing of all tenure types, but the Labour party presided over a bubble and a crash in the private rental sector and a huge contraction in the number of social houses available. The coalition has seen strong growth and the most ambitious affordable housing programme in a generation.
The motion shows Labour is playing catch-up with the Government. We have published a guide to renting, and we are about to publish a model tenancy; Labour failed to do both while in office. We have introduced an ombudsman scheme for letting agents; Labour failed to do that. We are introducing transparency over fees and a fine for non-compliance; Labour failed to do that. We are giving guidance and resources to tackle rogue landlords; Labour failed to do that.
The private rental sector is important and growing. The Government want it to provide an attractive, purpose-built investment for landlords, but also, crucially, a safe and secure home for tenants. The motion ought to be a lament about the lack of Labour action over 13 years. As with the economy, however, there is no apology and no credible remedy, and I urge colleagues to reject it.
Question put.
Oral Answers to Questions
Debate between Stephen Williams and Emma Reynolds
Stephen Williams
I will certainly join my hon. Friend in congratulating Crawley council on its record. I stress yet again that this Government are committed to building new affordable homes, including social homes—[Interruption.] The hon. Member for Lewisham East (Heidi Alexander) shakes her head, but I remind her that the latest statement on housing policy from her own party says that it wants 100,000 new affordable homes, of which half would be shared ownership, 35% would be affordable and only 15% would be social rented homes. She should have a word with those on her own Front Bench.
Emma Reynolds (Wolverhampton North East) (Lab)
This Government’s first decision on taking office was to cut the affordable homes programme by 60%, and they have also watered down section 106 agreements for social homes. Was it a surprise to the Minister that last year they built the lowest number of homes for social rent for more than 20 years, or was that in fact the Government’s plan?
Stephen Williams
I do not recognise those figures. This Government are committed to a very ambitious programme of building affordable homes, including social homes, with 170,000 over the course of this Parliament and 165,000 already planned for the first three years of the next Parliament. That represents the fastest rate of building in 20 years. As for section 106 agreements, the hon. Lady well knows that they are a matter for local government to negotiate at local level, subject to local market conditions.
Emma Reynolds
It is a shame that the Minister does not recognise the Government’s own figures. The truth is that this Government are not building social homes: Labour councils across the country are out-building Tory and Lib Dem councils. Those Labour local authorities are being prevented from building even more social homes because one in four tenants affected by the bedroom tax is in arrears for the first time. Does he recognise that the bedroom tax is not only cruel but counter-productive? Is his party now against it? If this Government will not scrap it, we will.
Stephen Williams
There are several questions wrapped up in one there. The spare room subsidy is not a tax, although clearly there are a range of opinions on that issue. The housing benefit bill had reached £23 billion by the time Labour left office and that was an unaffordable forward commitment for any party, including the hon. Lady’s, which promised in its last manifesto to tackle overspending on housing benefit. All taxpayers would want to make sure that that money is spent wisely and not on subsidising spare bedrooms for people who do not need them.
Oral Answers to Questions
Debate between Stephen Williams and Emma Reynolds
Emma Reynolds (Wolverhampton North East) (Lab)
I welcome the Minister to his new responsibilities.
More than half of those hit by the bedroom tax are disabled, and nine out of 10 disabled people who are not receiving discretionary housing benefit are cutting back on food or bills and having to choose between heating or eating. Does the Minister advise them to put on another jumper, skip a meal, or move to a non-adapted property that then has to be adapted at huge cost to the taxpayer?
Stephen Williams
I, too, welcome the hon. Lady to her post.
I would not presume to advise an individual at all; each individual must make up their own mind about how they will adapt to a change in circumstances. I advise local authorities, housing associations and local advice bureaux to work holistically with each tenant affected by the policy, and to consider what advice and support can be given so that they can transition to the new arrangements.