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What is a starter home?

Part of Housing and Planning Bill – in the House of Commons at 7:30 pm on 3rd May 2016.

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Photo of David Lammy David Lammy Labour, Tottenham 7:30 pm, 3rd May 2016

It is a phenomenal waste of resources. Usually, although we play party politics and there are dividing lines, there are issues on which there is some agreement. But here we have a Bill that offers a discount to those who can be earning up to £77,000, and there is already a discount for right to buy. The housing benefit bill is bound to go up. How is that a sensible Conservative policy? That is what I would like the Minister to explain. On what analysis is that fiscally sensible? It does not feel fiscally sensible to me to introduce a set of policies that will not only run a coach and horses through our housing policy, but actually cost the taxpayer more in the long run.

That is all in addition to the issues of social exclusion and, I believe, social cohesion that will inevitably follow in parts of London. It has been said before that what we are seeing in London—this Bill will make this worse—is a move towards what we see in Paris, with an inner sanctum that is very well off, surrounded by an outer banlieue where people who are very poor move when they are increasingly pushed out. We should commit to having a balanced situation. Of course we want to help people on to the housing ladder, but surely we do not want to drive the very poorest into some of the most squalid housing in the city and then ask taxpayers to subsidise it.

Only last Thursday it was reported that Camden Council will be auctioning off £150 million of council homes on the private market in order to pay for these short-sighted reforms. Those council homes should be going to families on the capital’s waiting lists, but instead they are being sold to private buyers. For what reason? Is it fund the fire sale of yet more council properties to tenants at a discount rate under the right to buy? It just does not make sense. I am putting on my best Conservative hat and trying to understand it, but I am struggling—usually I can just about get there, but I cannot on this occasion. I am really looking forward to hearing the Minister explain this.

Last month I asked the Minister what steps his Department is taking to ensure that replacements under the replacement housing scheme will be provided. He told me that

“housing associations will have the flexibility to replace nationally.”

He has repeated that line today, but the House has pressed him for detail. He is an educated man, so can we get into the detail, because this is important stuff that we are being asked to see through? He has been asked for detail by the Public Accounts Committee and its Chair, but we have heard absolutely none. When there is no detail, as this House knows from experience, it is usually because it has been done on the back of an envelope. We will be back here in a few years’ time to tidy up this mess—when I say “we”, I mean the House as a whole. Where is the detail? We need to hear more about what flexibility he actually means.

In London there were just 4,881 affordable homes built last year, which is the lowest number since 2008. How will this Bill make that any better? It will not, and that is why we oppose it.