Affordable Housing Debate

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Affordable Housing

Andrew Turner Excerpts
Wednesday 4th March 2015

(9 years, 2 months ago)

Westminster Hall
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Julian Huppert Portrait Dr Huppert
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I am sure that the hon. Lady has heard the discussions. Garden cities would be a large part of that plan, because they are a sustainable way to go ahead. It is no secret that we have wanted to see much more of this, but coalition government is not the same as a single-party, Liberal Democrat Government—I look forward to seeing that at some point.

The other thing we would like to do that we have set out in plans is to give local authorities the ability to suspend the right to buy and the right to acquire. They have played a useful role in many places, but they are incredibly damaging in other areas. They are depleting social housing in places such as Cambridge. A localist agenda would allow councils to decide what is best and ensure that all proceeds are used to build more social housing.

Since we have the Minister here, I would like to pick up another issue quickly.

Andrew Turner Portrait Mr Andrew Turner (Isle of Wight) (Con)
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Will the hon. Gentleman give way?

Julian Huppert Portrait Dr Huppert
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I will not, I am afraid, because other people wish to speak.

On 28 November, new guidance on housing developments and section 106 payments was issued for sites with small developments of fewer than 10 units. We need those section 106 payments. In Cambridge, a 10-unit site is substantial and incredibly valuable. That measure is already costing the city more than £200,000 and the figure is expected to reach £500,000 a year, and that is a mistake. That makes it harder for somewhere such as Cambridge to ensure that housing is available for people on low incomes and prevents the establishment of properly mixed communities, which are the most sustainable kind. I therefore urge the Minister to get rid of that proposal immediately because of the harm that it will do to Cambridge and elsewhere.

I also urge the Minister to look again at the vacant building credit, which is also causing problems, at least in its interpretation, because people can use it to avoid the contributions that they should make.

My last point is that the Treasury still places a tight cap on the amount that local councils can borrow from the housing revenue fund to build new houses. That was true under the previous Government, as well us under this one. Places such as Cambridge need to be able to keep pace, so we need those powers. I know that that is up to Treasury Ministers, not this Minister, but that cap should be got rid of, or at least lifted, so that councils can manage prudentially. For the council to borrow money to invest in housing in Cambridge would be a good investment financially and for the people of the city. Cambridge has been a success story and that has brought problems. We are growing and unemployment is down, but we therefore have more and more pressure on housing. We must deal with that urgently.