HC Deb 25 January 1989 vol 145 cc1018-9
7. Mr. Leadbitter

To ask the Secretary of State for the Environment what steps he intends to take to ensure an adequate supply of affordable housing for those on low and medium incomes on the sites included in the east Thames-side study.

Mr. Ridley

I am still considering the findings of the east Thames-side housing study, including how best to facilitate the provision of subsidised housing in the study areas.

Mr. Leadbitter

Does the Secretary of State realise the significance of the press release from his Department last Monday, indicating a house build achieving 25 per cent. of houses available for rent and 75 per cent. for sale—a complete reversal of what was planned a few years ago? Does he recognise the need, therefore, for a subsidy on land costs and on housebuilding costs on sites in the east Thames-side study areas so that affordable houses may be made available to meet the housing needs of the people in those areas, particularly as two thirds of those affected cannot even afford fair rents?

Mr. Ridley

I have always said of the London Docklands development corporation and in the case of the five east London sites, which are not part of the LDDC area, that the Government would like to see a fair proportion of low-cost housing. In many cases, that can be provided from the profits than can be made on market-price housing, but it is open to local authorities, of course, to negotiate section 52 agreements, and the Housing Corporation is equipped with resources with which to subsidise housing associations that might be involved in these developments and to provide low-cost housing.

Mr. Adley

As affordable housing will often mean one or two-bedroomed flats and terraced houses, will my right hon. Friend look into the present position, under which planning authorities cannot give enforceable planning permission for a minimum number of houses per acre, which would be one way of tackling the problem? Will my right hon. Friend see whether he can find a way of introducing suitable legislation, which would have a significant effect in dealing with the problem?

Mr. Ridley

Local authorities are entitled to draw up development plan density strategies and, of course, they can decide whether planning permission is given according to the extent to which applications comply with their strategies. I do not accept that they have no power over such matters.