§ 2. Mr. Simon Hughesasked the Seecretary of State for the Environment what evidence his Department has on the feasibility of building new houses and renovating old property for housing in inner city areas; and what plans he has to fund such housing initiatives.
§ The Secretary of State for the Environment (Mr. Nicholas Ridley)I have no doubt about the feasibility of housebuilding in the inner cities—private housebuilders are already building about 12,000 homes a year in these areas.
I shall continue to support housing initiatives in inner city areas by using public money to attract substantial amounts of private investment.
§ Mr. SpeakerI call Mr. Anthony Steen. Oh, we had better have Mr. Hughes first.
§ Mr. HughesI am grateful for your enthusiastic invitation, Mr. Speaker. Has the Secretary of State seen the house price survey by Campaign for Homes in central London which shows that, last year, the average house price in north Southwark was £160,000 Does the right hon. Gentleman agree that the real need is for cheap housing to rent and affordable housing to buy, at about £40,000? As we see on today's tapes that house prices have risen by more than 25 per cent. in London during the past year, can he give an assurance to young couples and others that there will be affordable housing for them in our capital city?
§ Mr. RidleyHousing is a local authority responsibility. I keep being urged by the Opposition Front Bench not to 855 take responsibilities from local government, but the hon. Gentleman is trying to involve me in a local authority problem. There are large numbers of empty council houses in London and other parts of the country. If they wished to, local authorities could use those houses to house people whom they cannot house themselves.
§ Mr. SpeakerOrder. I am sorry to have whetted the appetite of the hon. Member for South Hams (Mr. Steen), but I think that I shall have to call him later. I call Mr. McLoughlin.
§ Mr. McLoughlinDoes my right hon. Friend agree that, in view of the huge number of empty houses in some parts of London, legislation is required to force councils to sell houses on a homesteading basis after they have been empty for six months, thus giving people an opportunity to buy houses at prices that they can afford?
§ Mr. RidleyMy hon. Friend the Member for Norwich, South (Mr. Pawley) introduced a sensible Bill under the ten minutes rule in that regard and I shall be very tempted to support such a Bill if local authorities do not carry out their statutory function to house people in the capital.
§ Mr. RaynsfordDoes the right hon. Gentleman agree that the private sector has a great many more empty properties than has the local authority sector, and that the worst offenders are Government Departments, who are the landlords of the highest proportion of vacant property? What action will he take to get his colleagues to put their own house in order?
§ Mr. RidleyThe hon. Gentleman invites me to take action on all three fronts. He never knows, I might.
§ Mr. Peter BruinvelsIs my right hon. Friend aware that in Leicester at the moment there are 947 empty houses of which 77 have been empty for more than one year? Does he agree that even if private investment comes forward, the council is obviously opposed to receiving any help, does not want to build any more council houses and wants to keep tenants in run-down housing? Is that not a disgrace?
§ Mr. RidleyIt is quite clear that there is no point in building more council houses in areas such as my hon. Friend's constituency where there is already a surplus. If we are as short of land as all hon. Members think and we want to operate a thoroughly restrictive planning policy in the countryside, the consequence must be that we make all available homes available for occupation by people who want them, whether they be in the public or the private sector. That is the only conclusion of a restrictive planning policy.
§ Dr. CunninghamMay I take up the Secretary of State's suggestion that he would like to act on all three fronts to solve the problems of homelessness — the local government sector, the private sector and where the Government are landlord? If he brings forward comprehensive proposals along those lines, he will have a great deal of support from this side of the House, not least because the growing homelessness in Britain is a social scandal. It is resulting in an economic cost which in 1985–86 in London alone was £26 million for bed-and-breakfast accommodation. The people in such accommodation are getting an appalling deal from the 856 Government and ratepayers and taxpayers are paying through the nose for it. It is a scandal and the right hon. Gentleman ought to act on it.
§ Mr. RidleyI am delighted to hear of the hon. Gentleman's apparent last-minute conversion. I look forward to meeting him behind the Speaker's Chair after questions to get his signature on that.
§ Mr. HickmetDoes my right hon. Friend think that to have masses, or a large proportion, of the nation's wealth tied up in private housing in inner city areas such as London is a fabulous waste of resources? Does he agree that the amount of rented property available has been reduced from about 40 per cent. of what used to be available to under 10 per cent., and that unless and until he bites the bullet and decides to abolish rent control, that position will continue in inner city areas such as London for years to come?
§ Mr. RidleyThe private rented sector has declined from about 6 million to about 1.5 million homes. We cannot afford that loss of accommodation if we are to house all those people who are looking for housing. My hon. Friend makes a point upon which I hope we shall come to have unanimity in the House so that we can tackle the problems about which this question asks.