Teresa Pearce
Main Page: Teresa Pearce (Labour - Erith and Thamesmead)
Brandon Lewis
Somebody who buys a home in this country lives in it for an average of seven years and the average cost, depending on the independent expert, could be £3,000 to £4,800. The cost would of course be cheaper on larger sites. On some of the small sites, of which we need more, particularly in rural areas that have a desperate need for housing, it could get up to almost £15,000 on the cost of a home. If somebody lives in a house for an average of seven years, that is a pretty high price to pay.
However, I propose today to place a statutory duty on Government to undertake a review of energy standards for new homes. It will seek evidence on the costs of energy measures and the benefits in fuel bill and carbon savings, which is the right hon. Gentleman’s point. It will identify what is cost-effective to require, and cost-effectiveness must be key not just for developers, but for homeowners. We said in our manifesto that we will meet our climate change commitments and that we will do so by cutting emissions “as cost-effectively as possible”. The electorate voted for that and the review will help to ensure that we can deliver it.
Likewise, I am concerned about the impact of amendment 110 on house building and our ability to bring forward the homes that people need. Flood risk is an incredibly important issue, and I fully understand the strength of feeling on the matter. The Government are committed to ensuring that developments are safe from flooding, and the delivery of sustainable drainage systems is part of our planning policy, which was strengthened just over a year ago. Our policy is still new, as I outlined in more detail last week, and I am willing to consider issues further as it matures. I am happy to review the effectiveness of current policy and legislation on sustainable drainage and to place that commitment on the face of the Bill, so I want to move amendment (a) in lieu of amendment 110.
In conclusion, I want to say something to all Members of both House as we consider a couple of key points. The issues that we are debating and voting on tonight and that the Lords will be considering shortly are about delivering on our general election manifesto and therefore delivering our general election mandate. They are about delivering new homes for the people across our country who are in desperate need of them. It is the democratic right of this House to deliver on the Government’s agenda. We are determined to deliver on our promises to the British people and ask both Houses to respect that mandate.
Teresa Pearce (Erith and Thamesmead) (Lab)
We began scrutinising this Bill last autumn, and it was bad at that point. After a string of concessions and 18 defeats, some of its harshest aspects have now been amended, but it still presents a missed opportunity to solve the housing crisis. Since 2010, homelessness and rough sleeping have more than doubled, house prices and private rents have risen dramatically, and the housing benefit bill has ballooned. The Bill does little to tackle the housing crisis head on, and concerns have been raised by housing experts, leading charities, and MPs, councillors and peers from across the political divide, including Conservative council leaders, Conservative peers and Conservative MPs.
Lords amendment 10B would enable starter homes to be built while giving local authorities greater flexibility to deliver other forms of low-cost home ownership products to meet the need in their areas. The amendment seeks to expand the opportunities in the Bill for people to own their own home and gives serious consideration to other forms of affordable ownership. There is now a wide consensus that starter homes, which can cost up to £450,000, will be a big let-down and will be out of reach for young people and families on ordinary incomes—those who need a hand up on to the ladder the most. It is not just in my constituency that starter homes will be unaffordable. Research by Savills and by Shelter both found that starter homes will be unaffordable to families on average incomes in areas across the country.
We agree with the Local Government Association and want the Bill to provide for more affordable homes to rent as well as to buy. We agree that amendment 10B is a big improvement on the Government’s plan to impose starter homes on local communities to the exclusion of other types of affordable homes to buy. The LGA has stated:
“The discretion for local authorities to determine the number of starter homes built locally, alongside affordable homes for rent”
is
“critical for ensuring new housing meets the needs of communities.”
I was disappointed, but not surprised, to see that the Government will not be supporting amendment 10B. The Government’s focus on starter homes puts at risk other forms of affordable housing, including other forms of affordable home ownership. The Government argued in their manifesto:
“Everyone who works hard should be able to own a home of their own”.
Therefore, the Government will surely want to expand opportunities for home ownership by allowing other forms, rather than exclusively promoting starter homes, which could be unaffordable for many. If someone is over 40, they are excluded from the product altogether. If the Conservative party really does want everyone who works hard to be able to own their own home, there needs to be something for the over-40s. If we are serious about fixing the housing crisis and if the Government are serious about encouraging people on to the housing ladder, they must consider all forms of tenure and not just exclusively encourage starter homes. I hope that they will reconsider their opposition to the amendment.
Lords Amendments 47B and 47C would attempt to ensure that, where needed, councils homes that are sold are replaced on a like-for-like basis. The Bill provides the statutory basis to extend the right to buy to housing association tenants paid for by the forced sale of council homes to the highest bidders, including buy-to-let landlords and overseas investors. The Government have still failed to commit to genuine, like-for-like replacements for homes that were forcibly sold, and we now see that they have marked the amendments as engaging financial privilege. If the Government do not accept the proposal for one-for-one, like-for-like replacements, they need to explain why. Without that commitment on the face of the Bill, there will be a huge loss of genuinely affordable homes as this Government sounds the death knell for social housing.
The Government have said that they are simply honouring their election manifesto. Well, I checked the manifesto and the relevant passage commits to a replacement, something which this Bill does not effectively do. Any sensible meaning of the word replacement in this context would ensure that if a house is sold, it is replaced by one of the same type and tenure. The Bill and Government policy will make the delivery of new social rented and affordable rented housing near impossible. The new starter homes requirement will push social rented housing out of section 106 agreements. The 1% rent reduction over the next four years will make it harder for housing associations to deliver social rented housing in their schemes. Grant funding for new affordable rented properties by the Homes and Communities Agency will end in 2018. Those steps, without like-for-like replacement, will result in a huge loss of genuinely affordable homes. The Local Government Association has come out in favour of these two amendments, and it believes that
“as a minimum all councils should retain sufficient funds to replace each home sold on a like for like basis.”
It believes that negotiations between central and local government must allow councils to take into account the impact of wider housing reforms on the responsibilities of councils to meet housing needs. The cross-party Public Accounts Committee, too, has released a damning report on the Government’s plans, and no information has been provided on the impact of the forced sale. This policy will affect many people up and down the country, but the Government have failed to provide basic information to demonstrate how it will achieve its aims.
I will also touch briefly on amendments 97B, 108 and 110. Amendment 97B is a revised amendment to the one we debated last week, proposing a restricted, limited right of appeal in certain specific circumstances only in those areas where there is an approved neighbourhood plan. The amendment would empower local communities to have a greater say over their neighbourhoods, which should be welcomed. The Government’s counter-amendment only provides for a report to be written on neighbourhood plans when applications are permitted—we would already expect that of any good local planning authority.
Amendments 108 and 110 would ensure that all new homes built are carbon-compliant and have sustainable drainage provision. Although it would have been a positive step to see these issues covered in the Bill, it is welcome that the Government have committed to reviewing them. I hope the Minister will be able to provide further details, missing from the amendments themselves, about when these reviews are likely to commence; what a statutory review entails; when these reviews will be completed; and whether their findings will be reported to Parliament.