Housing Debate

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Tuesday 15th December 2015

(8 years, 4 months ago)

Commons Chamber
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John Healey Portrait John Healey
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That is exactly what the Chancellor said:

“We’re doubling the money for housing to build 400,000 new affordable homes”.

After the Chancellor’s autumn statement, the Government’s annual investment in housing will be £1.7 billion. Under the money inherited in 2010 from Labour, it was £3.1 billion. That is not an increase, but a cut—it is not a doubling, but a halving—of vital investment in housing in our country for our people.

Robert Neill Portrait Robert Neill (Bromley and Chislehurst) (Con)
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The right hon. Gentleman was a long-serving Minister. Will he reflect on the fact that, on his Government’s watch, the number of households on the housing waiting list went up from 1 million to 1.8 million and that there were 420,000 fewer social homes to rent at the end of his term in office than before? Is that not 13 years of failure?

John Healey Portrait John Healey
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The hon. Gentleman might like to reflect on the fact that, under 13 years of Labour, more than 2 million new homes were built in this country and the number of homeowners rose by more than 1 million, but in the five years under his Government that figure has fallen by more than 200,000. So much for the party of the so-called homeowners.

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John Healey Portrait John Healey
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Has the hon. Gentleman ever heard the term, “shotgun arrangement”? If he talks to a lot of housing association chief executives, their boards or their tenants, as I have done, he will find that they feel that they are left with no choice. They do not like it, they do not believe it, they do not trust Ministers, but they signed up to it because it is the least worst option for them.

With so many people’s dreams of buying their own home out of reach, Ministers have responded by announcing plans to fiddle the figures again, by changing the definition of affordable homes to include so-called starter homes for sale at up to £450,000. That is an insult to young people and families on ordinary incomes, and a mockery of common sense and sound policy. It is like the Health Minister tackling the GP shortage by reclassifying cashiers at Boots pharmacy as qualified doctors.

The second area that demonstrates the direction that the Government are taking in this Parliament is the systematic side-lining of local people and local decision making. Whatever they say, Ministers’ actions are anti-localist. At every turn since the election, housing policy has been set to undermine the say of local people and override their local representatives. The Housing and Planning Bill puts 33 new centralising powers in the hands of the Secretary of State, from directing starter homes to be built instead of affordable homes, to fixing rents for so-called high-income tenants.

Those powers include a legalised annual cash grab from councils, which totally undermines their ability to plan for housing need in their area. The Bill also rips up the contract of localising local finance for housing, which until this point has been the subject of all-party support. Ministers will have sweeping new powers to award “automatic planning permission”—the so-called “permission in principle”. That is not, as the House has been led to believe, simply a policy for dealing with brownfield sites; it is a power and policy for any site allocated for use in a local plan. There will be no need to apply for full planning permission, no limitations on what sort of development can be built, and no planning gain or obligation on developers. Only the technical details will be left for the elected local planning authorities to deal with.

A host of organisations now echo Labour’s concerns about such open-ended powers, including the Campaign to Protect Rural England, Friends of the Earth and the Woodland Trust. There will be deep concern in all parts of the House if the Government’s dramatic failure on housing leads to such drastic steps and denies local communities a voice on development in their areas.

Robert Neill Portrait Robert Neill
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I am following what the right hon. Gentleman is saying, but would his argument have rather more weight if he had not been part of a Government who imposed regional spatial strategies that gave no choice to local communities on how housing was imposed? Is he contradicting his own policy in government?

John Healey Portrait John Healey
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The hon. Gentleman is a master of distraction. I am making a point about clause 1 of the Bill, and he has enough experience to know what is at stake. If he reads the Bill, I know he will be worried about the sweeping, open-ended powers that it contains. If the Minister wants those powers, he should justify that in this House and the other place during the passage of the Bill, or tighten them up so that they do what he says he wants them to do. I look forward to the Minister’s response on that point, but I am not holding my breath.

In the housing world the Minister has become known as “Mr Million Homes”. He said:

“By the end of this Parliament success would mean that we have seen a build in total of something like a million homes”.

In other words, an average of 200,000 homes a year. Now we know that the Minister is prone to a bit of bullish bluster, but that is going some. In his first year as Housing Minister, not 200,000, but 115,590 homes were built. Last year—the best year out of the previous Government’s five years—only 117,720 homes were built. The total number of homes built in that Government’s best year was still lower than in the worst year of the Labour Government’s 13 years, which was in the depths of the global banking crisis and recession. Even the Prime Minister has not gone as far as the Minister.

In conclusion, no Government can sit back and see a whole generation priced out of a decent home, and call themselves a “one nation” Government. No political party can say nothing in their manifesto to the 11 million people living in private rented accommodation, and call itself a “party of aspiration”. No party can have a programme that will lead to a huge loss of genuinely affordable housing, and call itself the “party of working people”. This country has seen five years of failure on housing under Conservative Ministers. People desperately need and deserve better, and during this Parliament, this party—the Labour party—will prove itself to be the party of working people, of aspiration, and of one nation.

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Brandon Lewis Portrait Brandon Lewis
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One day, the hon. Gentleman or one of his colleagues will intervene to explain the wonders of eco-towns and just how many got built under the Labour Government.

Robert Neill Portrait Robert Neill
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Perhaps I could bring my hon. Friend back to the London housing market. Does he agree that one of the worst things that could happen to the London housing market is the imposition of rent controls on the private sector, as it invariably drives up costs, reduces supply and encourages the bad landlord rather than the good one whom we need to see in the capital?

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Brandon Lewis Portrait Brandon Lewis
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My hon. Friend highlights the reality and what the ambition should be. London is a shining example of what a city can achieve under the leadership of a powerful Mayor. He has overseen the delivery of more than 67,000 affordable homes since the mess we inherited in 2010, and we want to build on that, which is why we are looking to devolve more powers to mayoral London and enable my hon. Friend the Member for Richmond Park (Zac Goldsmith) to take forward my hon. Friend’s work. We make no apology for focusing on affordable home ownership, while Labour does everything it can to deny people the chance to own their own home. It is what people want; buying a home is an aspiration shared by the vast majority of the public—86% say they would choose to buy their own property—which might partly explain the result at the general election, when Labour was ignored by the public.

Robert Neill Portrait Robert Neill (Bromley and Chislehurst) (Con)
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The Minister is right to emphasise the importance of delivering on aspiration, but is he not also right to contrast the delivery by my hon. Friend the Member for Uxbridge and South Ruislip (Boris Johnson) with the complete failure of the top-down dirigiste policies of the former Mayor of London, who I gather now advises the leader of the Labour party?

Brandon Lewis Portrait Brandon Lewis
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My hon. Friend puts it succinctly and highlights the mess inherited nationally and in London. I hope we can build on our work delivering for our country, following the general election result, by ensuring good governance in London with another Conservative Mayor next year.