Housing and Planning Bill — House of Lords, 2016-05-04
Topic: Housing
Susan Williams (Conservative, Centre-right): My Lords, I shall speak to Amendments 1A, 1B and 1C, which provide a power to implement a tapered approach to the resale of a starter home, in lieu of Amendment 1, the approach which was accepted in this House. The amendments provide that the Secretary of State can make regulations on the length of the taper period and on the details of how the taper will operate. These amendments were agreed by the other place without a vote, demonstrating a clear mandate. The Government have listened to the concerns of this House and have responded. We want to ensure that starter homes are sold to those who are genuinely committed to living in an area, and not to those who simply want to secure financial uplift by selling on quickly—something that has been much debated in your Lordships’ House—but we also want to support mobility, so a balance needs to be struck. I therefore ask that the House do not insist on its Amendment 1 The Government are committed to introducing a tapered approach so that the longer the individual lives in the property, the more value they gain. Our amendment sets out two possible models for the operation of a taper. First, when a starter home is sold within a restricted period, the owner must pay a proportion of the discount to a specified body. This is the broad approach that was proposed by this House at Report and, with this amendment, could now be implemented. We are keen to continue our dialogue with developers, lenders and local authorities to reach agreement on the best mechanism for achieving our aims, and I am very happy to discuss how the model might work with interested Peers over the next few weeks. The detail will be set out in affirmative regulations for both Houses to consider. I am confident that this is the best way for us to ensure that we deliver a workable taper, supported by those working with it Turning now to Amendment 10A, which would reinstate the nationally set starter homes requirement on housing sites but allow councils to have local discretion on rural exception sites, I made a commitment, following discussions during the passage of the Bill on Report, to recognise that rural exception sites may require additional discretion on starter homes. I have listened to concerns that a compulsory requirement could disrupt the supply of rural exception sites coming forward. This amendment has been accepted by the other place with a clear majority of 115 and an even higher majority, of 121, of votes cast by Members for constituencies in England I recognise the strength of feeling behind the amendments to have a locally set requirement, which this House accepted. However, they would totally undermine our manifesto commitment to build 200,000 starter homes by 2020. We made this commitment to address the real and urgent problem of declining home ownership among the under-40s. The electorate has every right to expect the Government to deliver, and the other place has been clear in its support to deliver our starter homes commitment and deliver the number we promised quickly. Many honourable Members commented on the popularity of starter homes within their constituencies and their importance for sustainable communities. It is a ground-breaking move to require that starter homes will be built on all reasonably sized and viable sites, but it is necessary and justified to ensure that these homes are delivered, and delivered soon. We cannot wait for each of the 336 planning authorities to undertake local needs and viability assessments before action on starter homes is taken; given that 30% of councils have not adopted a post-2004 plan, the risks to delivery are simply too high. The amendments would hit hardest the very people whom we are trying to help, and first-time buyers would yet again see their chance of home ownership undermined. We are consulting so that we get the percentage requirement right, including on exemptions from the requirement for certain types of development, and Parliament will be able to scrutinise the resulting affirmative regulations. The amendment in lieu is needed to help a generation into home ownership. I therefore ask that the House considers the manifesto commitment for starter homes and do not insist on its Amendments 9 and 10 but accept Amendment 10A in lieu.