Housing (Right to Buy) (Maximum Percentage Discount) (England) Order 2014

Lord Deben Excerpts

Tuesday 1st July 2014 Grand Committee

[Baroness Stowell of Beeston]

I think that I will need to follow up this debate with a specific letter that covers some of the specific detail. What has happened in terms of business planning is that, clearly, local authorities were preparing for sales on the basis of the previous scheme. On the introduction of the new scheme, sales have increased; when sales have increased in the light of us reinvigorating the scheme, and there is an increase above and beyond their estimates, the money goes straight back to local authorities. It has never happened before. That money must be used for the construction of new homes.

[Lord Deben (Con)]

May I say how pleased many of us are that we have at least moved to this stage? It means that at least some of the money that goes from selling council houses goes back to building new ones. The trouble is that the Minister is saying, rightly, that this is the first time that this has happened, which is true—but both sides of the House should be pretty ashamed of what has happened before.

The truth is that the sale of council houses, for it to be sensible, should mean that you sell a house to somebody who lives in it and it is therefore not vacant for anyone else to live in, then use the money towards building houses that are not lived in and which new people can move into. At long last, we are doing this. But let us not kid ourselves—neither the Labour nor the Conservative Party has done this before, and that is what was wrong about the whole system. It was supposed to be circular and, as usual, the Treasury pinched the money, under both Labour and Conservative, because the Treasury never changes. So congratulations—and I hope that the Minister will press for all the money to go to local councils for this purpose.

[Lord McKenzie of Luton]

To be fair, I think that, in the past, not all the money was snaffled by the Treasury—I think that 25% went to local authorities. I was not pressing the point to be pedantic, but because it is a very bold statement about replacement to say that you will sell one house and another will replace it. That will be a very important policy, but as we pick away at it we see that it is not quite like that; it does not seem to be every house that is sold that will give rise to this replacement.

I am not sure that we can take the discussion much further, as I think that we need some facts and clarification on this. I would be very grateful if the Minister would write on this and share the answer, because my understanding is that the Government’s position is not as strong as I had understood it to be from the pronouncements that they had made on this.