Bob Blackman
Main Page: Bob Blackman (Conservative - Harrow East)Housing and Planning Bill
Bob Blackman Excerpts
Brandon Lewis
Let me make some more progress on starter homes.
Amendment 1 requires on resale of the starter home the repayment of the 20% starter discount, reduced by 1% for each year of occupation for a period of 20 years. The average first-time buyer, we should bear in mind, spends just under seven years in their home—in fact, the average in the whole country is only about seven years. Asking someone to spend 20 years in a home, which they may have bought at the age of 30, and not to benefit from the discount that we promised until they are 50, simply does not stack up.
We want to ensure that starter homes are sold to people who are genuinely committed to living in an area, and not to people who simply want to secure a financial uplift by selling on quickly. However, we also want to support mobility. A balance must be struck. I propose that we disagree with Lords amendment 1, and substitute for it amendments (a), (b) and (c), which provide a power to implement a tapered approach to resale. The longer someone lives in a property, the more value that person will gain.
Our amendments provide for the Secretary of State to make regulations on the length of the taper period, and on the details of how the taper will operate. That will enable us to ensure that it is effective and delivers for people in the real world. The amendments set out two potential models for its operation. For example, when a starter home is sold, the first-time buyer must, if there is discount to be returned, pay a proportion of that discount to a specified party. That is the broad approach suggested in the other place, and I can see the logic of it. A body such as the Homes and Communities Agency could then use those funds to build more affordable homes.
As part of our consultation on starter homes regulations, we are seeking the views of developers, lenders and local authorities on how the taper would operate. We strongly believe that we should settle the matter through engagement with the sector, rather than placing the detail of restrictions in legislation. I am confident that that is the best way for us to meet our manifesto commitment on starter homes.
Bob Blackman (Harrow East) (Con)
Will the taper be regional, or will it be a “one size fits all” for the whole United Kingdom? As has already been pointed out, property prices vary considerably, and it is important to ensure that the people who benefit are those who will actually live in the properties.
Brandon Lewis
My hon. Friend has made a good point. That is one reason why the strictures of legislation do not work in this context, and why it is important that we complete the consultation—which runs until 18 May in order to receive all the feedback and deal with this matter in regulations. As the discount is proportional, the difference in values will be dealt with by the way in which the percentages will work.
Brandon Lewis
The hon. Gentleman is missing the point. This is about fairness across the system. People in London—and cities in other parts of the country—who are in the private rented sector and earn these salaries, or higher and lower, are wondering about those in housing associations who earn more than £40,000. Examples have already been given in the House of Secretaries of State on salaries of £125,000, or union leaders on salaries of more than £100,000, who lived in social rented housing. Tens of thousands of people are earning more than £40,000 or £50,000 a year and are benefiting from social rents, which is simply not fair to those who do not have those salaries or opportunities.
Bob Blackman
Will my hon. Friend tell the House what the reality of social housing for rent in London and beyond is for people who are homeless to start with? There is a huge queue of people waiting for a socially rented property, and it is totally unacceptable for people who are on relatively high salaries to occupy those properties when there is such huge demand.
Brandon Lewis
My hon. Friend places in keen focus one of the problems of the housing deficit that the Government inherited in 2010. Under the right hon. Member for Wentworth and Dearne (John Healey), not only did we see the lowest level of housebuilding since about 1923, but in 13 years the Labour party built fewer social homes through their councils than we have built in the past four or five years. There is a huge amount to do to drive up the amount of housing so that there are more opportunities for people to have homes across all tenures, whether shared ownership, private rental or with affordable rent. We must ensure that more people have the chance to get on and achieve the aspiration held by 86% of the public, which is to buy a home of their own.
The House will be glad to hear that I will not speak to every Government amendment—you might also be pleased about that, Mr Deputy Speaker. Many of those amendments are minor and technical, and much as we might all enjoy it if I spoke to them all, some colleagues would not thank me because we might still be here by Prorogation. Each amendment makes the Bill work better for those who implement these policies on the ground, and they have been tabled because the Government have listened to the debate and taken action as a result. We have strengthened people’s ability to own their own home and get Britain building again—improving on the 25% increase in building over the last year—and I hope that the House will agree to those changes made in the other place.
I also want to send a strong message that this Government will not slow the pace of housebuilding—we will increase it. We will not take away people’s dream of home ownership—we will inspire it, and we will deliver our manifesto commitments. When the hon. Member for City of Durham (Dr Blackman-Woods) responds to this debate, I hope that Labour Members will ask themselves why they stand against our mandate to boost home ownership and supply—something that the people of this country want and expect. While Labour blusters with political posturing after the abysmal housing mess that it left, we remain focused on building homes across our country and across all tenures. We will increase housing supply and home ownership. That is what we promised, and that is what we will deliver.
Bob Blackman
It is a pleasure to follow the hon. Member for Westminster North (Ms Buck), although I suspect that my perspective on housing in London, the south-east and the rest of the country is very different from hers. We have to start from the housing problems that we have and to remember that, as I think the Chair of the Select Committee pointed out, for far too long we have not built enough homes—irrespective of whether they are for sale, for rent or for social rent—in this country. The key point is that we have to ensure that the delivery of new housing begins apace, and the Bill contributes towards exactly that requirement.
We need to face up to the fact that a small number of very large house builders in this country ration the development of land to maximise their profits from the sale of the homes that they build. We must break the stranglehold of that consortium and encourage small developers to develop new groups of houses, which will give people the opportunity to buy those homes. In addition, over the past 10 years, social rented accommodation has been completed solely by registered social landlords—what we call housing associations—which sit on huge bank balances and assets that they could utilise to build far more units than they do. Far too many housing associations are coasting and not providing the sort of accommodation that we all wish to see. Somehow, we have to break through.
The Bill also resolves the problem that it is very hard for young people to afford the deposit that they need to buy their first home. The principle—the Labour party has not yet fully appreciated this—is that the Government are switching resources from social rented accommodation to the development of starter homes for sale, so that young people and families have the chance to own their own home. Home ownership among that group of people has dropped through the floor. The average age at which someone buys their first property is now about 37, and it is going up all the time. Many people now believe that they will never own their own home, because their income is insufficient.
Mr Jackson
Is there not an issue of fairness and social equality here? It was reported today that 25% of the funding for first-time buyers comes from mum and dad—the family. Is it not unfair that if an individual has wealthy parents, their parents can cascade that wealth to them? This policy, under a Conservative Government, will spread the wealth and enable people on modest incomes not to have to rely on the bank of mum and dad to buy their first home.
Bob Blackman
It is quite clear that we want a more democratic system in which people have the opportunity to buy their own homes. The principle introduced in the Bill of encouraging home ownership through that process must be right. Equally, it is quite clear that an unfinished piece of business from the Thatcher revolution of the sale of council homes under the right to buy was that housing association tenants did not have the same opportunity, so I am delighted that the Government are putting that right.
It is right to ensure that people who exercise the right to buy continue to live in their properties as owner-occupiers. It is not right that people should suddenly have a windfall because, having been in social rented accommodation, they are offered a discount on a property that they can either immediately resell or re-let. There should be a taper, and I am glad that the Government have seen sense in accepting that such a taper should apply. There is an argument—or a discussion—about where the taper should start, but the reality is that the vast majority of people see that as the right way forward. People buying a property under the buy-to-let process should also have the opportunity to ensure that they get a discount under the Help to Buy arrangements but, equally, they should not be allowed suddenly to get a windfall and then move on.
Catherine West
What does the hon. Gentleman think of the suggestion recently made by one of my constituents that the right to buy should also apply to private sector tenancies? Should there be a public subsidy so that somebody has the right to purchase a private tenancy?
Bob Blackman
It is quite clear there should be an opportunity for everyone to exercise the right to buy. In London, people who use buy-to-let arrangements are getting a return of probably about 3% to 4% on their capital. They are not necessarily getting a huge rate of return, so they are providing facilities for people to live in accommodation when those people cannot possibly afford to buy their own home, or choose not to do so. There are people who choose to rent rather than buy because that suits their lifestyle better.
I want to move on to an issue that seems to have been forgotten in all this. The reality is that someone who demonstrates that their housing need is sufficient—in other words, they are homeless—has a chance of winning the lottery prize of getting social rented accommodation. If they currently get such a prize, they can live in the property for the rest of their life, regardless of their income. That has to be wrong; it should not happen. People come to me every day and say, “I can’t get a council property. I can’t afford to rent a property in the constituency. All the local authority is offering is, with respect, a place in Bradford, Wolverhampton or somewhere in Birmingham, but nowhere near London.” The reality is that people are being priced out of the market because we are building too few homes and, equally, we are allowing people to live in social rented accommodation for far too long after their incomes have risen considerably. That cannot be right. Social rented accommodation should be for people who need it.
Mr Betts
Is the hon. Gentleman therefore saying that pay to stay is intended to drive people out of social rented accommodation when they earn more than £40,000? Will they actually be priced out? He seems to be implying that if they live in social housing, there will not be enough social housing for other people, and that we therefore need to get them out of such properties so that poorer people can have them.
Bob Blackman
No. This is where there might be differences between London and the south-east, and other parts of the country. The vast majority of London council house tenants, and even housing association tenants, are on the maximum housing benefit, so the public sector is picking up the cost of their rent. I am saying that if someone is earning more—if they are above the threshold—they should contribute more to the cost of their rent. When we examine the figures, we can see that tenants actually pay very little in rent in most parts of London at the moment because housing benefit picks up the cost of their rent. I am saying that if people are employed in reasonable occupations with reasonable incomes, it is right that they should contribute to the cost of public sector housing, and that principle is set out in the Bill. It is the right approach and one we should thoroughly endorse tonight. It is important to put it on record that this is not an attempt to force people out of social rented accommodation; it is a matter of fairness and of people paying their way reasonably.
Transport for London has 5,700 acres of land in London, and while not all of it is developable, a lot of it is. That is one public authority in London that has an opportunity to provide land that could be used for the development of housing for rent or for sale. I piloted the Bill that will enable TfL to provide the homes that are required, and it was interesting that the only opposition to it came from London Labour Members, who opposed the opportunity for more than 50,000 homes to be built in London for the very people they represent. I suggest that we should reject all the Lords amendments that are a deliberate attempt to wreck the scope of the Bill, which contributes to the creation of more housing and more affordable housing, to the opportunity for people to own their own homes, and to local authorities working in partnership with the Government to deliver the homes that people want.
Dr Blackman-Woods
The hon. Gentleman has had much to say about pay to stay, but has he looked at the Government’s own consultation on the policy, which showed that 75% of people disagreed with the thresholds that the Government are setting? In fact, a huge majority disagreed with the voluntary policy that is already in place with a threshold of £60,000. I am not sure where the hon. Gentleman gets the idea that this policy is readily accepted by everyone; it simply is not, and not at the current thresholds.
Bob Blackman
If individuals are not contributing additional rent towards the social rent they are being charged at the moment, I can understand people saying, “I don’t want to pay any more.” Who would want to pay more? That is a foolish view to put forward. We must ask what is fair and reasonable to ensure that we can change the situation in this country by creating more housing and encouraging the development of more housing, while making sure that people pay a reasonable rent so that they are not subsidised by other taxpayers on lower incomes who are struggling either in private rented accommodation or to buy their own homes. Such a view is not fair or reasonable, and it must change.
I end, as I began, by saying that I commend the Bill and the Government amendments to the Lords amendments. I trust that we will reject all the Lords amendments that the Government oppose and that we will support the Government amendments.
Dawn Butler
We have just heard about the land held by TfL, and Labour Members are seeking guarantees that houses built on TfL land will be properly affordable for people living in London. There is only one person who has guaranteed that that will be the case: my right hon. Friend the Member for Tooting (Sadiq Khan). If the hon. Member for Harrow East (Bob Blackman) wants to ensure that affordable houses are built on TfL land, I recommend that he votes for my right hon. Friend on Thursday.
Chloe Smith
I will speak specifically against Lords amendment 54. Local authorities should not have local discretion to apply pay to stay. I will raise a very clear example that shows the worst possible risk of local self-interest.
Norwich City Council, I am sorry to report, is led by Labour, although we have elections on Thursday. The Norwich Labour party may be having a rather difficult week—the leader of the Labour party is no doubt right now looking into reported extreme tweets from the hon. Member for Norwich South (Clive Lewis).
The leader of Norwich City Council himself, Councillor Alan Waters, lives in one of his own council homes. In fact, he is not alone in doing so. So many Labour councillors on Norwich City Council live in their own council housing that they cannot even recuse themselves from business relating to their pecuniary interest, as clearly laid out in the standards expected of councillors; in response to my investigations on this topic, a city council spokesman confirmed in March that so many councillors were taking advantage of their own housing that the political balance of the council would be affected if all tenants took no part in discussions about housing policy. That means that councillors are being allowed to take part in discussions about council housing even though they have personal financial interests in it.
More specifically, the leader of the council is himself likely to be a high-income tenant under the terms of the Bill. His own register of interests at City Hall clearly shows that as well as living in one of his own Norwich City Council houses, he holds a professional job in London and Norwich and a directorship, all while earning well over many people’s minimum wage from council expenses alone. Of course the leader of Norwich City Council will not want higher earning tenants to pay a fairer rent, because he is likely to be one of them. If his Labour friends in the Lords were to get away with letting councils have discretion over the policy, of course he would not enact it in Norwich.
The policy should be enacted because it means that better-off tenants will pay their way—or, indeed, move out to allow poorer families who really need a council home to have it. There are thousands of families in Norwich on the housing waiting list. Those who argue against the policy seem to believe that if people living in council housing earn a bit more, they should not pay a bit more in rent, and that people on any amount of money should be able to continue to live in public housing, subsidised by the taxpayer. People might remember that union baron Bob Crow lived in a council house until he died, yet reportedly earned £145,000.
I simply do not think it is right for the struggling family who really need that home to be denied a place because a well-off person has it. That is why I support the Bill, as a Norwich MP who wants people to be able fairly to get the homes they dearly need, and why I am speaking against Lords amendment 54.
Bob Blackman
My hon. Friend has jogged my memory. Unfortunately, I forgot to declare my entry in the Register of Members’ Financial Interests and draw it to the attention of the House. May I use this opportunity to correct the record?
Chloe Smith
I welcome my hon. Friend’s doing so, because it shows the kind of principles that we should uphold in public life. We seek integrity and honesty in public life. That goes to the heart of my point. It is particularly hypocritical and wrong if a local council leader opposes this policy while standing to gain personally from doing so.
Ben Howlett
I will try to be a little more sober in my approach to this debate. It is a privilege to be able to speak in favour of the Bill. As Members across the House will know, I have raised my concerns about the high cost of housing in my constituency and other high-value areas on multiple occasions, and I have been supportive of the Government’s plans to build 400,000 affordable homes by 2020-21. Starter homes will make a massive impact in the west of England, enabling young families—and indeed families who are not young—to get on the property ladder. I think that is an incredibly important story to tell. I join other Members across the House who have talked about the importance of the housing debate, not just in London, but in other high-value areas throughout the UK.
I am fortunate enough to have got myself on the property ladder a little bit younger than the average age, aged 29, but that was only because my other half and I were able to combine our earnings in order to afford a two-bedroom house worth £450,000. I have a huge amount of respect for the hon. Member for City of Durham (Dr Blackman-Woods), and not just because I went to Durham University and one of the first elections I campaigned in was in her constituency—sadly, we did not win, but we did get rid of those Liberal Democrats, as we managed to do in Bath as well. But I take umbrage with the Labour party on this point, because if a two-bedroom home that costs £450,000 is good enough not to do anything, frankly, I do not think that is an argument that will wash very well with her constituents; it certainly would not wash with any of our constituents.
I am confident that the Bill, which we have now been debating for months, will go some way towards helping Bath residents access the housing ladder. During an earlier stage of our consideration of the Bill I joined several other Government Members, as the Minister has said, in calling for more to be done to increase the amount of affordable housing in high-value areas outside the capital, including Oxford, Winchester, Truro and Bath. Those are all beautiful places, so it is understandable that demand for houses there is very high. In such areas it is often young, aspiring homeowners who do not have the chance to buy, especially when they do not have the financial support of a relative. I do not want those groups to be put off moving to those areas and ultimately staying there, simply because they could not find a deposit. That has a major impact on economies outside London that are desperate for houses to be built to ensure they have the workers to maintain their economic growth. The west of England has increased its growth rate substantially over the past five years, as a result of the Government’s economic policies, but without housing integrated into the equation, we cannot maintain that.
I thank the Minister for taking the time to meet fellow MPs to discuss this issue and for taking our views into consideration. I agree with him that one answer to the problem is to increase the housing stock in higher-value areas. After talks with him, I am pleased to see the Government amendment changing “higher” to “high”, which will allow them the flexibility to ensure that areas with the highest-value housing are not unfairly impacted. That will have a major impact on the flexibility local authorities have to deliver more homes. I am also pleased that the Government have listened to our concerns and ensured that for every home a local authority agrees to sell, at least one new affordable home will be provided. Such measures will increase our housing stock and allow more young people to access the housing ladder. It also suggests that the Minister has listened to the concerns of the past and produced sensible proposals to ensure that housing is built rather than lost.
I applaud the Government for taking those important steps, but they will not, sadly, increase the housing stock in Bath, where the local authority has already taken steps to sell vacant high-value housing, having sold off a lot of homes for social housing. I therefore welcome what the Minister said earlier and call on Bath and North East Somerset Council to work with fellow councils, such as Wiltshire, Somerset and South Gloucestershire, to bid for the £1.2 billion and other funds available to deliver more homes for our areas. I look forward to working with the Minister, I hope, to see how our authority can put that into practice.
Bob Blackman
Is not one problem in this debate that a property will be sold for a certain value—the open-market value less the discount—but that the cost of building a home is normally much less? That great benefit could be used for new housing.
Ben Howlett
I completely agree. The sale of one high-value asset in a high-value area, such as Oxford, could enable more than just one new home to be built, because it costs a lot less to build, particularly given the current style of building adopted in some cities to keep up with demand. That is learning the lessons of the problems in the 1980s when these things were not taken into consideration, and it is thus another reason to back the Government’s proposals and not to listen to the wrecking amendments from the Lords.
I look forward to the housing revolution by 2020, and I hope that the House will reject the wrecking amendments from the House of Lords and back the Government on this vital Bill.