Mark Francois
Main Page: Mark Francois (Conservative - Rayleigh and Wickford)(8 years, 8 months ago)
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The Minister for Communities and Resilience (Mr Mark Francois)
It is a pleasure to serve under your chairmanship, Mr Owen. It is a privilege to be speaking in Parliament on the day that Her Majesty Queen Elizabeth II becomes our longest-reigning monarch, which is a truly remarkable achievement. We all wish her well for the future.
A great number of points have been raised in this debate, and I will do my best in the limited time available to cover as many as possible. I recognise that the demand for affordable housing in London is challenging, and the Mayor clearly has a significant task ahead to meet the needs of the growing population in such an important world city. That is why the Government remain committed to working with him to address the issue, which is important to people across the capital. My remarks will focus in particular on affordable housing and our plans to help to increase supply in the capital over the years ahead.
I am pleased to say that we have an encouraging track record over the past five years in delivering affordable homes, with more than 260,000 delivered in England since 2010, including more than 67,000 in London, of which more than 3,000 were delivered in the Croydon borough of my hon. Friend the Member for Croydon South (Chris Philp).
Mr Francois
I have a lot to cover. If the hon. Lady is patient for a moment, I might be able to give way later.
We exceeded our 2011-15 affordable homes target by 16,000 homes, delivering nearly 186,000 affordable homes during the period. In fact, more council housing has been built since 2010 than in the previous 13 years. To give one example in my hon. Friend’s constituency, the Cane Hill development, which he mentioned, will include up to 675 homes, including 25% affordable homes and 80% family-sized homes. It will also bring back into use three local listed buildings, which are currently derelict, and provide new open public space. It is a very good example of the kind of mixed use development that can take place in London and that can help boost affordable housing along the way.
Several hon. Members mentioned foreign ownership of properties. My right hon. Friend the Member for Cities of London and Westminster (Mark Field) made a number of suggestions on that point; I am not sure that I agree with all of them. I think that he was provoking debate and I suspect that he succeeded. He referred to capital gains tax at one point. On that specific point with regard to overseas purchasers, he will know that the autumn statement 2013 announced that from April 2015, the Government will introduce capital gains tax on future gains made by non-residents who sell residential property in the UK. That change addresses a significant unfairness in our capital gains tax and property tax regime. That is perhaps one point of comfort that I can offer him, and of course, given the timings, that change is in effect now.
My hon. Friend the Member for Ruislip, Northwood and Pinner (Mr Hurd) mentioned, among several points, the so-called skills gap in construction. It is worth mentioning that the Construction Industry Training Board has reported a rise in apprenticeships. In a 40% increase on 2013, 15,010 new apprenticeships started in 2014, so in fairness the CITB is playing its part to bring people, including young people, into the construction industry to provide the skills that we need for the future.
I talked about initial steps for affordable housing, but we need to go further. We have a big ambition to deliver 275,000 new affordable homes over the course of the Parliament. It will be the fastest rate of affordable housing building in the past 20 years. Delivery in London will be a vital element of that programme, and our officials are working with the Mayor, the GLA and London Councils on increasing capacity to make that ambition a reality to benefit the people of London.
Nearly every Member who spoke talked about the need to increase the rate of affordable house building in the capital, so I will come to that point specifically. The Mayor aims to build at least 42,000 homes a year. The 2015-18 programme is already under way. The initial programme was announced last summer, including the Mayor’s housing covenant 2015-18, and the GLA are inviting further bids. Last year, the Mayor exceeded the target for the number of affordable homes to be built in London, building 17,914 affordable new homes. That was the highest number of affordable homes delivered since current records began in 1991. The Government have invested £3 billion through the GLA from 2011-12 to 2014-15 in housing, Olympic legacy and economic development. An additional £1.45 billion will be invested in housing delivery for the period 2015-18.
In addition, to boost the supply of affordable housing, the Mayor has announced 18 out of a promised 20 housing zones in London, bringing the total number of homes to be built as part of that specific initiative to more than 50,000, of which nearly one third will be affordable to buy or rent. The Mayor expects to confirm two further zones—to complete the 20—later this year.
As several Members mentioned, we have launched a new London Land Commission, which first met in July, with a mandate to identify and release all surplus brownfield land owned by the public sector in London. Led jointly by the Government and the Mayor, the commission will take a central role in driving the delivery of new homes. For example, with the amount of property held by Transport for London, there is a possibility of developing housing, including affordable housing, around some of the stations across the capital.
Mr Francois
I will take an intervention from the hon. Lady first and then one from my hon. Friend. I must be quick.
Ruth Cadbury
I thank the Minister for giving way. The Minister for Housing and Planning wrote to me last month to confirm that the Government believes that
“the best way to encourage affordability”
—his term—is by “increasing supply”. I thank the Minister for his description of the supply he is bringing. If that is the sole policy driver, I would like to know what formula the Government are using to deliver that market-based policy. To put it another way, by what level will private rents in London come down with the delivery of that 42,000?
Mr Francois
On the formula, to help with the increasing supply of affordable homes, we are making debt cheaper for housing associations to deliver more affordable housing through the affordable housing guarantee scheme. It aims to deliver up to 30,000 homes through guaranteeing up to £3.5 billion of debt.
A number of hon. Members mentioned the matter of buying property in London.
Stephen Hammond
The Minister is a absolutely right that the London Land Commission has the ability to be transformational. I urge him to use the good offices of Government to ensure that the whole of the public sector complies. Parts of the public sector have a history of dragging their feet in bringing the land forward. The Government can play that inspirational and effective role.
Mr Francois
My hon. Friend knows a lot about the subject and his point is well made.
The Mayor’s London housing strategy includes a commitment to double the number of First Steps homes —the single brand for shared ownership products in London—delivered in the capital by 2020, and to double it again by 2025, helping 250,000 Londoners into home ownership.
Several hon. Members mentioned planning. The Localism Act 2011 gave the Mayor strategic housing and regeneration powers and enabled the establishment of mayoral development corporations to support the regeneration the Queen Elizabeth Olympic park—it is very fitting to mention that today—and Old Oak Common and Park Royal. Since then, the Government have invested more than £3 billion and housing delivery has increased. In 2014, 52,000 homes were granted planning permission in London, up from 45,000 in 2013. Those figures include both minor and major schemes and are consistent with the national total of 253,000 for 2014.
The Government have helped to unlock major regeneration sites in London to deliver new housing. Those include the Greenwich peninsular, with 10,000 new homes, including approximately 3,270 affordable homes for rent or part-rent, 600 student beds, and 3.5 million square feet of commercial floor space. Of the 10,600 new homes at Barking riverside, 31% will have three or more bedrooms and more than 40% will be affordable. Of the 10,000 new households at the Queen Elizabeth Olympic park, around one third will be affordable housing, with many built for long-term rent, as well as to buy. Five new neighbourhoods provide play areas, schools, nurseries, community spaces, health centres and shops, with places to relax, play and exercise all within easy walking distance.
Some hon. Members mentioned changes in rents and the pressure on housing associations. It is important to bear in mind that housing associations generated a surplus of about £2.4 billion in 2014. The sector is financially robust and will be able to deliver the efficiency savings that the change in rental costs implies. To help them further, the regulator will be on hand to help housing associations consider how they can deliver greater efficiency and value for money.
In the few minutes that I have had, I hope that I have managed to outline the number of initiatives under way to increase the supply of affordable housing in London. The Mayor has an extremely proactive programme of attempting to do that. There is a step change in the number of affordable houses being aimed for in London. He is rolling that programme out and making progress. It is incumbent on us all in this debate, which has been conducted in a relatively non-partisan manner, to encourage the Mayor and his successor—whoever they may be—to continue the programme of providing affordable housing in London and giving the people who live in our great capital city a good place to live. On that point, I will keep my word and give just over one minute to my hon. Friend the Member for Croydon South to conclude the debate.
