HC Deb 24 January 1990 vol 165 cc876-7
3. Ms. Ruddock

To ask the Secretary of State for the Environment if he will consider linking grant rates to a definition of affordability of housing based on an agreed percentage of disposable income; and if he will make a statement.

The Secretary of State for the Environment (Mr. Chris Patten)

Landlords who provide rented housing with the help of public subsidy are already expected to charge rents within the reach of those in low-paid employment, and are best placed to decide what such rents should be.

Ms. Ruddock

I thank the Secretary of State for that reply, but it is wholly inadequate. Last year the Government forced the providers of such public housing—housing associations—to put up their rents by 24 per cent., thus compelling them to abandon the very goals that the right hon. Gentleman has just reiterated. Public housing rents are now forcing people into poverty.

Mr. Patten

I am not sure that the hon. Lady's propositions are entirely correct. As I believe she knows, the rates of grant for housing association schemes are aimed broadly at enabling housing associations to set rents that comply with the tenants' guarantee. We wish to stand by that guarantee, as do the Housing Corporation and housing associations, so that the accommodation that they provide is within reach of those in low-income employment.

Mr. Robert G. Hughes

Does my right hon. Friend agree that, with the present generous system of housing benefit for those in need, low rents do nothing to help those with housing problems? What is more, do not Labour councils that are engaging in what might be called a rent holiday with the approach of the district council elections care less about housing problems than about gaining votes in those elections?

Mr. Patten

I entirely agree with my hon. Friend's last point: such conduct demonstrates the irresponsibility of some Labour authorities. As my hon. Friend implied, housing benefit covers any increases in rents and, as he knows, we are currently spending more than £5 billion on housing benefits.

Mr. Soley

The Secretary of State is not only complacent but ill-informed. That is probably why the turnover of Ministers responsible for housing has now reached a rate of more than one a year. Assuming that the present Minister remains in his post for long enough before being evicted, will the right hon. Gentleman bear in mind that housing association rents went up by 24 per cent. last year? No one disputes that figure—except, apparently, the Secretary of State. If the Government really care about housing problems and homelessness, when will they get their act together and adopt a housing policy that delivers homes at prices that people can afford, whether for rent or for sale?

Mr. Patten

We have been fortunate in having a succession of excellent Ministers responsible for housing, although it would be invidious for me to suggest that each has been better than his or her predecessor. I am sure that my hon. Friend the current Minister is as delighted as I am that we are now set to double the Housing Corporation's programme, and that the money going to the housing associations is to increase twofold over the next three years.

Mr. Knapman

Does my right hon. Friend agree that those who shout loudest for open government are often the last to divulge details of their own policies, particularly when it comes to housing?

Mr. Patten

It seems that the Opposition are opaque not only about their housing policies but about some of their other policies, particularly those on local government finance. They all wait avidly for the next appearance of the hon. Member for Dagenham (Mr. Gould) in the television studios so that they can learn something about Opposition policies.