Lord Pickles
Main Page: Lord Pickles (Conservative - Life peer)(10 years, 4 months ago)
Commons ChamberRead Full debate Read Hansard Text
The Secretary of State for Communities and Local Government (Mr Eric Pickles)
The right hon. Member for Leeds Central (Hilary Benn) spoke with considerable sincerity and eloquence, as did Mr Speaker, the Leader of the Opposition and the Prime Minister, in paying tribute to Paul Goggins. Before we go on, I wish to say that I had experience of Paul as a Minister when I pursued a constituency case, and I found him to be courteous, diligent and helpful. I also had experience of him when I was the Minister, and he pursued his constituents’ interest doggedly but always with enormous charm. I think it is heartbreaking that a man who had so much to offer to this House and, far more importantly, to his family has gone so prematurely, and I will miss him.
I welcome this debate. We have been through a difficult housing crisis but this is only the second debate on housing that the official Opposition have called, and we had to goad them into calling one of those. Throughout the period, I have never felt under any pressure from the official Opposition on housing, and the right hon. Member for Leeds Central has eloquently demonstrated why that is. All Labour Members want to do today is talk down the economy, ignore the recovery and cast their heads in the sand about the sustained turnaround in the housing market. It has certainly taken some time to deal with the problems that Labour left us. The right hon. Gentleman referred to Stanley Baldwin’s housing figures, and when I walked through the door of Eland house the spirit of Stanley Baldwin and those figures met me. That was our baseline—that is what we actually started from. Once upon a time—
Mr Pickles
I will give way in a few moments. Would it be possible for me actually to say something before the hon. Gentleman intervenes?
Once upon a time, the last Labour Prime Minister, advised by the current Leader of the Opposition and shadow Chancellor, announced that he had abolished “boom and bust”. It was a debt-fuelled illusion of a boom, resulting in the biggest budget deficit in our peacetime history and a crash that devastated the housing market—all that was on Labour’s watch. Let us cast our minds back to 2008—
Mr Pickles
I am sure that the hon. Gentleman can remember 2008. The then Housing Minister, the right hon. Member for Don Valley (Caroline Flint), was photographed outside Downing street with her speaking notes. No doubt the right hon. Member for Leeds Central was in the Cabinet and waiting to be briefed. This is what her notes said:
“Housebuilding is stalling…New starts are already down 10% compared to a year ago. Housebuilders are predicting further falls.”
The notes also said:
“We can’t know how bad it will get.”
We know now that it would become far worse.
Geraint Davies
Will the Secretary of State confirm that lending from banks for mortgages now is at the 2008 level but lending from banks to business and construction is 30% down, which is why house prices are escalating out of control and real wages are falling through the floor? When interest rates go up in a couple of years there will be a burst of the housing bubble and sub-prime debt.
Mr Pickles
The hon. Gentleman needs to look a little outside London given where he represents. He could even look in some parts of London. Newham, for example, saw a drop of just under 1% in house prices. If we take out the London figures—figures for parts of London can be very spectacular—and look at the rest of the country, we will see that the increase in house prices has been very modest indeed. Not even in London have the figures reached where they were in 2007, so to talk about a housing bubble is ridiculous.
Alec Shelbrooke
As I tried gently to prod the shadow Secretary of State during his contribution, may I now say that I am most grateful to my right hon. Friend for moving the debate beyond London and the south-east to areas in which my constituency and those of a great many of my hon. Friends are based?
Mr Pickles
I am most grateful to my hon. Friend for that. Our long-term economic plan is helping to pay off the deficit, keep interest rates down and let the housing market recover.
Mr Pickles
Of course I will give way to the hon. Gentleman, but just let me make a little bit of progress.
According to the Office for National Statistics, house building is now at its highest level since 2007, based on new orders in residential construction. House building starts in the last quarter were at their highest level since 2008. The National House-Building Council agrees, with new home registrations at their highest since 2008. The Royal Institution of Chartered Surveyors has declared that
“every part of the country has reported growth since the beginning of the market crash six years ago.”
Contrary to the Opposition’s motion, statistics on net housing supply show that 400,000 more homes have been delivered in the first three years, which is in line with figures before Labour’s housing crash.
Mr Nick Raynsford (Greenwich and Woolwich) (Lab)
As the Secretary of State is referring to figures, will he confirm that his Department’s statistics show that in 2007, 176,000 homes were built, in 2008, 148,000 homes were built, and in the latest 12 months in which he has been Secretary of State, just 107,950 were built?
Mr Pickles
Basically, if the right hon. Gentleman walks through the door of Eland house and embraces Stanley Baldwin’s figures, he will find that it takes a wee while to start to make progress. He should congratulate the Government on what we have been doing to get the thing going again, and it is a matter of some pleasure that that is the case.
Mr Pickles
I will give way to the distinguished hon. Gentleman in a moment, but I would like him to consider that brick makers stayed at work over the Christmas period—very unusually—to catch up with demand for bricks to build new homes. Including empty homes being brought back into use, the new homes bonus has made available more than half a million more homes to buy and rent. I must say that I have, after a fashion, become attached to the right hon. Member for Leeds Central [Interruption.] I am not pleased. I am worried about what will happen when he returns to Leeds, because he has been talking about the new homes bonus. He has been saying that it is going to all kinds of places, but which authority is in the top 10 for the receipt of new homes bonus? Which authority is at number six and challenging for the top position? Yes, I am talking about Leeds metropolitan authority. The right hon. Gentleman is sticking his nose up at the prospect of the people of Leeds receiving £27.2 million.
Mr Betts
The Secretary of State will remember his visit to the Select Committee just after the Government were formed. I asked the then Housing Minister, the right hon. Member for Welwyn Hatfield (Grant Shapps), whether success for the Government, when they are eventually judged on their record,
“will be building more homes per year than were being built prior to the recession, and that failure will be building less.”
The right hon. Gentleman said:
“Yes. Building more homes is the gold standard on which we shall be judged.”
My right hon. Friend the Member for Greenwich and Woolwich (Mr Raynsford) has just said that we were building more than 200,000 homes a year before the recession. When will the Government hit their own targets and hit that figure?
Mr Pickles
Well, as we leave behind the ghost of Stanley Baldwin bequeathed to us by the Labour Front Bench, the figures demonstrate that we are really starting to move. The hon. Gentleman should be rejoicing in the fact that our policies are working.
In the 2005 manifesto, the previous Labour Government pledged that there would be 1 million more home owners. In reality, home ownership fell by more than 250,000. Yet the aspiration of home ownership has returned. According to the Bank of England, mortgages to first-time buyers are at their highest level. Both the Council for Mortgage Lenders and the Halifax report the same. Thanks to the action taken to tackle the deficit, we have kept interest rates down. The number of repossessions is at its lowest level for five years and continues to fall. The Bank of England reports that the number of new mortgage arrears cases is at its lowest quarterly level since its records began.
Barry Gardiner (Brent North) (Lab)
Will the Secretary of State acknowledge that of the 20 local authorities with the worst repossession record for mortgages, 17 are in London? Although he may not wish to address the problems of London, they are substantial and need his attention.
Mr Pickles
I have looked most carefully at the figures. It is not a surprise that the number of repossessions is dropping, and that is something about which we should be pleased. Mortgage approvals are at their highest level for six years. The Mortgage Advice Bureau notes that the number of mortgage products available to house buyers has surpassed the 10,000 mark, and cites Government action as the cause.
We are taking action to help those with small deposits. Since April, under the Help to Buy equity loan scheme, there have been more than 20,000 reservations for new build homes, supporting house building and first-time buyers. Over 90% of the 1,200 house builders registered under the scheme are small to medium-sized developers.
The Help to Buy mortgage guarantee scheme has had a further 6,000 applications in the first month, helping hard-working families. The average house price guaranteed under the scheme is just under £160,000.
Mr Pickles
I am coming to supply in a moment. The hon. Gentleman should be a little patient.
Labour might not have supported the scheme, but Santander has said that Help to Buy has been
“a major cause of increased confidence in the housing market.”
We are also helping the less well-off. More than 150,000 new affordable homes have been built in England in the past three years, assisted by our £20 billion affordable housing programme. Thanks to our reforms to the Housing Revenue Account, more council housing has been built in the three years of this Government than in all the 13 years of the previous Labour Government.
Jake Berry
As my right hon. Friend is on the subject of social housing, perhaps he could also confirm to the House that the previous Government, after 13 years, left us with 421,000 fewer social homes than when they took office.
Mr Pickles
My hon. Friend is exactly right, and my speech will confirm that. The social housing stock on Labour’s watch shrunk by 420,000.
Debbie Abrahams
More than 2,300 households in Oldham are affected by the bedroom tax, and there are only 500 properties into which they can move. Furthermore, private sector landlords are not allowing tenancies for people on benefits. Where are those people meant to live?
Mr Pickles
The hon. Lady should get out more and stop reading reports in the newspapers. The private rented sector represents 70% of all homes and there is no evidence whatsoever to suggest that such activity is widespread or happening in significant numbers. Why would people want to turn away good tenants? Frankly, I deeply regret the way in which she is stigmatising people on housing benefit.
Sheila Gilmore (Edinburgh East) (Lab)
I did get out and I was standing at my local bus stop, where there is an estate agent, reading the adverts. Nearly 70% of them said, “No DSS”—of course, landlords have not yet realised that the DSS is no more. That is a big change, as I have not seen that for many years, but those of us who get out are aware that that is happening.
Mr Pickles
I am shocked to hear that that is the situation in Scotland, because in England we have a far more civilised way of dealing with these matters.
John Prescott’s pathfinder programme demolished Victorian terraces across the midlands, but this Government have scrapped the wrecking ball and worked with communities, not against them. We have already brought 85,000 long-term empty properties back into use. We have reinvigorated the right to buy, reversing Labour’s savage cuts and helping social tenants get on the housing ladder.
It is a shame that Labour councillors and Labour MPs oppose the right to buy. Who is the biggest enemy of the right to buy? It is Labour-supporting unions such as Unite, the Union of Construction, Allied Trades and Technicians and the GMB, waging class war against the working classes. By contrast, we are on the side of hard-working people. We have changed the rules on housing waiting lists to give priority to the armed forces and to local residents, whereas Labour doled out council housing to foreign nationals.
We are helping the vulnerable. Homelessness is half the average level it was under the last Labour Government. The average length of time households spend in temporary accommodation has fallen by a third. Housing waiting lists almost doubled under Labour, but thanks to the reforms in the Localism Act 2011, waiting lists have now fallen below the level we inherited. The Home Builders Federation notes that planning approvals for new homes are at their highest since 2007. A survey in September showed that the number of people wanting to extend their home has trebled, thanks to the flexible planning rules that we introduced to restore economic confidence, which were opposed by the Opposition.
David T. C. Davies (Monmouth) (Con)
Does the Secretary of State share my astonishment at the noises coming from Labour Members about house building levels when we all know that in the one area of the UK where Labour is actually in charge, house builders such as Redrow are pulling out? They are doing so because of the increased burden of red tape that the Labour-run Welsh Assembly is putting on the housing industry.
Mr Pickles
My hon. Friend makes a very important point and I shall come on to it in a few moments.
We have scrapped Labour’s regional spatial strategies, which enveloped the planning system in red tape and hindered local plan making. The number of planning appeals has fallen, meaning more local decision making and more decisions “right first time”.
At the same time, we have protected the environment. The latest official figures, produced last month, show that the number of homes built on the green belt is the lowest on record—four times lower than it was a quarter of a century ago. We have made it easier to get brownfield land back into use by allowing surplus office space to be converted into homes. A survey in September of just 15% of councils reported more than 260 different schemes under those new rights, but the Labour response, from Labour MPs and from members of the London Assembly, is to oppose those new homes.
We are not just backing large developers—we are supporting self-build by abolishing development taxes such as section 106 and the community infrastructure levy, getting the state off the backs of those who want to build their own homes. I hope that the hon. Member for Oldham East and Saddleworth (Debbie Abrahams) will welcome that. Labour’s response has been silence, no doubt because Labour councils want to tax people to the hilt.
We need only to look at Labour’s policies, which we have heard about from the right hon. Member for Leeds Central. Labour has a five-year plan and has reinstated a national housing target of 200,000 homes a year. The previous Labour Government had a target of 240,000 homes a year, yet house building fell to its worst peacetime level since the 1920s. It is a little like the state targets for the tractors that failed to roll off the Ukrainian production lines.
How would Labour build new homes? I understand the Opposition have three policies. First, the shadow Housing Minister has called for five “new towns”. I remind her that the last Labour Prime Minister promised five new eco-towns in 2007, and then, when they were not built—perhaps in a silent, unconscious tribute to Nikita Khrushchev—increased the number from five to 10. Not a single house was built. Not one. The only thing that eco-towns built was resentment. Labour has simply dusted off and reheated its old policies under a different name. The Government are supporting locally led large scale development, with more than £500 million of investment. We have kick-started new homes in the likes of Cranbrook, Wokingham and Sherford, and Ebbsfleet will follow very soon.
Labour’s next policy is so-called land banking, as we have just heard, and is a solution to a problem that does not exist, according to the Office of Fair Trading, Savills and Kate Barker. Of the half a million units with outstanding planning permission, almost 90% have started or are working towards a start. The number of homes on stalled sites is just 59,000 units. The Get Britain Building investment fund, worth more than £500 million, is helping unlock those sites, and we have made things easier by enabling unrealistic section 106 agreements to be renegotiated, making such stalled sites viable—a move opposed every single time by the Labour party.
Alex Cunningham (Stockton North) (Lab)
In Stockton borough, planning permission for hundreds of houses on brownfield sites has existed for years, yet developers are not doing anything. Is it not time that they were helped and encouraged to build more homes on those sites by the idea that they might lose the land, as we suggest?
Mr Pickles
Perhaps we could nationalise them—[Interruption.] I thought that would get the hon. Member for Blyth Valley (Mr Campbell) excited. Perhaps we should confiscate the land. Perhaps we should use a North Korean solution and start arresting and executing them for failing to do that—[Interruption.] I am afraid that it is that rather daft rhetoric that will dry up all housing supply.
Labour’s policy of new development taxes and state confiscation of land would have the reverse effect of that desired, discouraging developers from complex land assembly projects. House builders will just let their planning permissions lapse or be more cautious about applying for permission in the first place. It is a recipe for fewer homes and a slower planning system.
Labour’s third policy is the right to grow, another Labour land grab to allow Labour councils to dump urban sprawl on their rural neighbours and rip up green belt protection. Labour cites the likes of Stevenage—we have heard from my hon. Friend the Member for Stevenage (Stephen McPartland)—Oxford and York. In every case, the green belt is providing a green lung for those towns and cities and the Opposition want Labour councils with no democratic mandate to rip it up.
Gavin Shuker (Luton South) (Lab/Co-op)
I am grateful to the Secretary of State for giving way, not least because he missed Luton off his list of places that Labour has suggested might need a right to grow. In the period running through to 2030, Luton borough requires about 30,000 new homes to keep up with population demand but can only build about 6,000 within the borough. What should Luton do?
Mr Pickles
They should begin to talk to their neighbouring authorities, and stop trying to bully North Hertfordshire council—I have had an opportunity to meet that council—and using terror tactics and being extremely unpleasant. It is the return of Stalinist top-down planning, and the biggest threat to the green belt that the country faces.
Labour’s policies are like buses: you wait for years, then three come along at once. It has even asked Sir Michael Lyons to come up with a couple more. Under the Labour Government, Sir Michael was paid £400,000 for his last review of Department for Communities and Local Government policy, so I hope that the Labour party is getting him at a cheaper rate. For all Labour’s lame attempts at policy making, we can see what Labour would be like in reality, as my hon. Friend the Member for Monmouth (David T. C. Davies) suggested. In Wales, where housing is devolved, Labour runs the Administration, and its record on housing there is a disaster. According to the National House-Building Council, while new home registrations are up in England, they have fallen successively in Wales. Labour has hit the housing market with extra red tape, adding £13,000 to the cost of a new home with measures ranging from building regulations, to fire sprinklers and waste site management plans. House builders Redrow say that owing to the burden of regulation:
“Wales is the most difficult area in the UK in which to operate”.
Persimmon Homes has pulled out of development in south Wales and the construction firm Watkin Jones has shifted its development to England rather than Wales.
Labour failed to support the housing market, and has belatedly introduced a help to buy equity loan scheme. Watkin Jones said that
“it is difficult to comprehend why the Welsh Assembly Government are failing to recognise the importance of following the UK Government’s lead in getting much needed homes built.”
The Welsh Government, true to Labour form, have slashed right to buy. In microcosm, this is the real face of Labour: high tax, high regulation, the enemy of the free market, and the enemy of aspiration.
I have outlined how the coalition Government’s long-term economic plan is turning the housing market around, but there is more to do to build more homes to meet demand and deal with demographic change. The next spending round will see a further £23 billion of public and private investment in affordable housing. We are looking at further reforms to the housing revenue account to help councils build more homes. Our £1 billion build to rent fund is bringing institutional investment into the private rented sector—something that no Government have achieved before. Further change of use reforms will make it easier for redundant and under-used buildings to be converted to housing. We will deliver fairness in social housing by ending taxpayer subsidies to high-income social tenants—people like Bob Crow.
Our economic plan is for the long term. Contrary to the doom and gloom of the Labour party, which wants to talk our nation down, our economy is on the mend, thanks to the hard work of the British people, and thanks to tough decisions to tackle the deficit left by Labour and to clean up their mess. Our policy is firing up the kilns, bringing the brickies on site, and getting Britain building again. I urge right hon. and hon. Members to reject the Labour motion, and I commend the Government’s housing record to the House.