HC Deb 28 April 1993 vol 223 cc950-2
8. Mr. Spring

To ask the Secretary of State for the Environment how many housing association homes he expects to be made available in 1992–93.

Sir George Young

A final figure for completions is not yet available. However, the Housing Corporation estimates that at least 80,000 units, including some 6,000 funded through local authority housing association grant, will have been made available by housing associations in 1992–93. This is not far short of double the corporation's forecast of 43,400 units when the programme for 1992–93 was announced—thanks to the housing market package and to the excellent value for money which has been achieved by housing associations.

Mr. Spring

Is my hon. Friend aware of the excellent working relationship between the Conservative-controlled St. Edmundsbury borough council and the 14 housing associations in my constituency? Will he agree with me that this excellent working and organisational relationship has been of benefit by reducing waiting lists and virtually doing away with difficulties for families needing bed-and-breakfast accommodation? Will he also agree with me that this excellent record contrasts markedly with the appalling housing record of so many Labour local authorities that have blighted the lives of so many thousands of our fellow citizens?

Sir George Young

I agree entirely with my hon. Friend. I recently visited his constituency and met the hard-working local councillors in charge of housing policy. I welcome the way in which they have embraced their enabling role and are developing good relationships with housing associations. I also welcome the way in which they are working with my Department on an estate action scheme in Haverhill in the same district. My hon. Friend's local authority is a model of what more local authorities should do to make faster progress in tackling their housing problems.

Mr. Jamieson

Will the Minister tell the House what representations he has made to his right hon. and learned Friend the Secretary of State for Defence about the 9,291 empty Ministry of Defence properties throughout the country, 527 of them in my constituency of Plymouth, which is 21 per cent. of the total MOD stock there? Would he care to congratulate Plymouth city council on having less than 0.75 per cent. of its houses void at a time when many people are homeless in the city? What representations has he made about empty MOD properties?

Sir George Young

The hon. Member will know that after the last election we set up a task force, chaired by John Baker, precisely to deal with the issue that he has raised. He will also know that the Ministry of Defence is bringing back to this country large numbers of service families who will need accommodation when they get here. The MOD is leasing property to housing associations and local authorities. It is disposing of surplus stock and giving cash grants to service men leaving the armed forces; they can use that money to buy some of the surplus stock.

I assure the hon. Gentleman that the MOD is anxious to reduce the number of surplus properties that it owns.

Mr. Simon Coombs

Does my hon. Friend agree that the £2.7 billion worth of new lending by building societies in February clearly shows that it is not just Ministers who believe that now is a good time to buy a new home?

Sir George Young

My hon. Friend is absolutely right. The indicators, some of which I mentioned a moment ago, show that that is so. Abbey National reported that its mortgage approvals in the first quarter of the current year were 60 per cent. up on those in the same quarter last year. Many people are taking the view that this is, indeed, a good time to buy a home.

Mr. Pike

The Minister referred to the number of homes that will become available, but does he recognise that there is a real problem with the rent levels—a problem underlined by the housing associations' campaign on affordability? More than 81 per cent. of housing association tenants now need housing benefits. Are not housing association rents far too high, and is it not time the Government did something to get those rents down, so that people can afford to pay them?

Sir George Young

I cannot agree that average housing association rents are too high. The average rent is about £40 a week. In my view, that is a reasonable figure. I am aware of the sensitivity of the housing associations about this matter. The subject engaged the attention of the Environment Select Committee for some time when I appeared before it last week, and I await its report with interest. But the hon. Gentleman must accept that by reducing the rate of grants from 72 per cent. last year to 67 per cent. this year, we have achieved an extra 3,300 homes for those in need without any increase in the implied rent, because of the fall in interest rates and in land values. One has to strike a balance between rent levels and the output of new homes, and I think that we have got the balance about right.

Mr. James Hill

I congratulate my hon. Friend on the great efforts that he is making to provide more tenancies. Does he agree that a survey of our cities would show up a flaw, however, in that some of the boarded-up houses that are not owned by anyone in particular are not the sort of houses that housing associations want? Is it not possible to direct the housing associations to go for houses that need maintenance but will then provide housing units, instead of the simple solution of buying new build?

Sir George Young

I entirely agree. I am anxious to re-focus the energy of the housing association movement on the inner cities, where many of them started. That is why I have told the Housing Corporation that I should like 18 per cent. of this year's budget to go towards rehabilitation and improvement. We are also conducting research to find out what is impeding the housing associations' attempts to do more work.

There is, of course, an important planning role. The more boarded-up homes that can be brought back into use, the less pressure there will be for development on green-field sites. Hon. Members on both sides of the House are anxious to protect those sites if we can.