Housing and Social Security — House of Commons, 2017-06-22
Topic: Housing
Kevin Paul Hollinrake (Conservative, Centre-right): The hon. Lady raises a valid point. There is a different definition. Social housing is part of the overall definition of affordable housing—that is true. The shadow Secretary of State will tell the hon. Lady that that is true. It is also true that we are building more affordable homes than the Labour Government were in their final six years in office Building more homes has to be our objective and Members on both sides of the House will agree that we must reform the planning process to deliver more homes and release more land, whether that is brownfield or greenfield. That must take up some of the slack to deliver the amount of housing we need We need not just to deliver more land but to reinvigorate some of the sectors of house building on which we have come to rely. Some of that is about our local authorities, and the Select Committee on Communities and Local Government reported on that just before Dissolution. We believe that local authorities should be given the opportunity and more levers to increase house building to previous levels—they were building about 100,000 homes a year back in the 1970s—but only if those houses are properly designed and communities are designed properly around those developments The key element of reforming planning to deliver more homes is the role of small and medium-sized enterprises in house building. In 2008, SMEs built 44% of new homes delivered in this country. Today, they deliver 26% of homes. It is not just about land; it is also about capacity. The difficulty for small house builders is that they cannot find the land. That is the primary difficulty: finding access to the land and to the finance A White Paper from the Department has accepted that we need to deliver more housing for more small sites, and proposes that in the future, instead of local authorities simply allocating a huge site that is ideal for a huge house build and drawing a big red ring around it, which is probably easier for those local authorities, a certain number of sites in that local plan must be allocated for smaller sites and for small and medium-sized enterprises. It recommends that 10% of those sites should be half a hectare or less. That is good progress, but we need to go further if we really want to get small builders back into the business of building houses. It is critical that they do that The other principal problem is finding finance. It is almost impossible for an SME house builder to get finance for their developments. The Government have recognised this with their £3 billion home building fund, but we need to go further. We need to ensure that the mainstream high street banks lend to those SMEs. Those banks are their first port of call, but that is a difficult conversation at the moment. In Germany, the state-backed bank, KfW, sits behind the loans to SME house builders, meaning that builders can keep building. Through that, Germany has been far more successful in ensuring that there is a mixed delivery of house building For the next couple of minutes, I will focus on something else of huge significance to the industry: the tenant fees ban. I am still involved in the business and I am told by my finance director that the ban will cost us around £800,000 a year, so hon. Members might think that I am against the legislation, but I support the fee ban. I recognise that there is a problem. It cannot be right that when a tenant finds a property they want, they are susceptible to charges of which they were not aware and which can vary wildly between different letting agents All legislation that we bring forward in this place cannot just be about the measures. Delivery—the oversight and enforcement—is also needed. My concern is whether the measure will be delivered with that proper oversight and enforcement. The team that currently manages that within the sector is the National Trading Standards Estate Agency Team near Bangor. That team does not have the capacity to deliver the necessary oversight. We need to ensure that if this legislation is brought forward, it drives out the cowboy operators, who will try to find a way around the rules, which cannot be right. If the legislation is well thought through, it can include new measures about rental property standards. We need to ensure that the rented property sector delivers an appropriate standard of rented accommodation.