Housing, Planning and the Green Belt — House of Commons, 2018-02-06
Topic: Housing
Mark James Harper (Conservative, Centre-right): That proposal sounds sensible. I am not familiar with the detail, but given what my hon. Friend sets out, it sounds like the local authority is focusing on demand. We will need significantly more of that if we are to meet demand in London My hon. Friend the Member for Tewkesbury put his finger on it when he spoke about housing demand. Clearly, compared with the situation when I was younger, we are much tougher with the loans that people can take out. When we look at what happened to the financial system after the banks made unwise lending decisions, such practice is probably very sensible, but it does make it more difficult for younger people to purchase houses. I welcome what the Government have done on the finance side of the argument, and two things are particularly welcome. The Help to Buy equity loan scheme is helping a significant number of young people who can afford a mortgage to be able to finance their deposit. It is not true to say, as some people do, that that only deals with the demand side of the equation, because it is of course only used for buying new houses. If we look at how house builders operate, we see that they build houses as they sell them. If we make it possible for a first-time buyer to purchase a home through the Help to Buy equity loan scheme, the house builder will then build more houses on that estate, as I have seen clearly in my constituency. Such practice helps on the demand side, which in turn generates housing supply I also welcome the introduction of the lifetime individual savings account, which enables younger people to save for a pension or a home, but I have one policy suggestion for the Minister. I am very supportive of our auto-enrolment policy to ensure that everybody saves for a pension, so will he consider whether we could apply auto-enrolment to lifetime ISAs? A young person going into the labour market would then find that their savings and their employer’s contributions would go into a lifetime ISA—at least that would be an option—so that the money could be used to fund either a pension or a home. If someone is a homeowner when they retire, they will not need such a significant pension, because they will not be paying rent on the home that they own. I think that that sensible proposal might make younger people keener to save for a deposit, because they would find it more affordable, so I urge the Minister to consider the suggestion I am grateful that the Government have said so much recently about the northern powerhouse. Given the location of my constituency and that of my hon. Friend the Member for Tewkesbury, I also welcome what the Secretary of State for Wales did with the Severn growth summit to encourage the development of what we might call a western powerhouse to create another centre of gravity for developing economic growth in Wales and the west country. It seems to me that one of the real problems is that we will not deal with the housing crisis simply by building more homes. London, for example, has high levels of immigration—23% of Londoners are non-UK born residents, and 156,000 migrants moved to London in 2016. Having listened to colleagues’ concerns about excessive house building in London, I argue that we cannot build our way out of the problem. A longer- term solution is to generate progress in the northern powerhouse—in transport infrastructure and development in that part of the country—and then generate development in what I might call the western powerhouse in the west of the country and Wales. We could also look at things such as the Cambridge-Milton Keynes-Oxford growth corridor, so that we actually see economic development spread more equitably across the United Kingdom. That would mean that rather than feeling the pressure to move to London, or to get a job or create a new business there, young people in many parts of the country would feel able to stay in their home towns and cities, or indeed to move to Manchester and the great cities of the north. That will happen if we create a powerhouse that is globally competitive, as London is.