Budget Resolutions and Economic Situation

Debate between Steve Reed and Hilary Benn

Friday 20th March 2015 Commons Chamber

[Hilary Benn]

I entirely agree. That is one of the consequences of the cost of living crisis, which is why we want a higher minimum wage.

A Labour Government will do something for generation rent. We will scrap the charging of tenants for letting agents’ fees, we will legislate for three-year tenancies—the Government say that they are in favour of three-year tenancies, but they will not actually make them happen—and we will put a ceiling on rent increases during the second and third years of those tenancies.

As for those who dream of owning their own homes, the Conservative manifesto could not have been clearer, stating:

“We want to create a property-owning democracy where everyone has the chance to own their own home.”

I give credit to the Secretary of State and the Government for the steps that they have taken to try to help first-time buyers, including Help to Buy and the measures in the Budget. We support those moves, especially the help for first-time buyers. However, let me say gently to the Secretary of State that Ministers must know—they must have been advised by their officials, and by plenty of other people—that if demand is increased without an increase in supply, all that will happen is that house prices will rise even further out of reach of people who dream of owning their own homes, the very people whom the House wants to help.

[Mr Steve Reed (Croydon North) (Lab)]

Does my right hon. Friend share my concern that under this Government thousands of homes in London have been sold to overseas investors who leave them empty, while throughout this city there is a growing housing crisis and people cannot find a home? How frustrating it is for them to see those homes kept empty when they have nowhere to live.

[Hilary Benn]

I agree that that is a particular feature of the housing market in London. The Government could do two things: the first is to say that homes in this country cannot be advertised for sale in other parts of the world before they are advertised in the United Kingdom, so that people in this country have an equal chance to buy them; and the second is to give local authorities greater power to disincentivise those who leave their homes empty, or who put in a stick of furniture and claim that they are occupied.