HC Deb 26 May 1993 vol 225 cc906-8
4. Mr. Hicks

To ask the Secretary of State for the Environment what plans he has to provide additional financial resources for the provision of low-cost social housing in rural areas; and if he will make a statement.

The Parliamentary Under-Secretary of State for the Environment (Mr. Tony Baldry)

The Government provide support for low-cost rural housing through the Housing Corporation and local authority housing investment programme allocations. The Housing Corporation plans to approve 1,850 new housing association homes this year under its rural housing programme. That is in addition to the 5,500 homes for which the programme has provided funding since it began in 1989–90. Last year, the housing market package enabled housing associations to buy some 730 homes in villages with a population of 3,000 or fewer. Support for rural housing has also been provided through allocations for local authorities under the housing partnership fund.

Mr. Hicks

The existing situation may appear to be encouraging, but is the Minister aware of the increasing anxiety about the future provision of adequate affordable social housing in rural areas, given the proposed changes in the level of grant support for housing associations? Does he recognise the implications that that will have for rents, particularly in low-income areas such as mine, and the implications of the poverty trap for the families involved?

Mr. Baldry

This year, we were able to bring the grant rate down from 72 to 69 per cent. without any significant impact on rents whatever. However, we were able to ensure that we could build 3,300 more homes. I thought that my hon. Friend would have welcomed that, because many of the homes were able to go into rural areas.

Mr. Winnick

Why does not the Minister admit that the supply of new housing association dwellings has not in any way been able to make up for the fact that, for 14 years, local authorities in rural areas, as well as elsewhere, have simply not been able to build? Although I am not a vindictive person, is the Minister aware that sometimes I wish that Ministers were in the position of constituents of mine and so many other hon. Members—suffering great housing hardship and misery because they cannot afford to buy and having no way of being rehoused either by a local authority or housing association? Why must such people suffer simply because of Tory dogma?

Mr. Baldry

This year, we are investing through the Housing Corporation £2.3 billion in housing associations building a large number of new homes. Moreover, we are making significant sums available to local authorities such as Walsall to invest in improving their own housing stocks to ensure that every family in the country has a decent home in which to live.

Sir Peter Emery

Will my hon. Friend bear in mind what my hon. Friend the Member for Cornwall, South-East (Mr. Hicks) said about the rents charged by some housing associations, especially when land has been given to them and the rent is nearly the market rent, which does little to help those in the west country who cannot afford that sort of rent when they are trying to find accommodation?

Mr. Baldry

As my right hon. and learned Friend the Secretary of State said, we are seeking to ensure that the housing benefit is targeted at those who need help with their housing costs. Of course, we want to ensure that there is affordable housing in rural areas, as elsewhere, and we are investing substantial sums. In addition to the money that is being made available to local authorities in Devon and elsewhere through the housing investment programme, local authorities will be able to spend their capital receipts this year. Money is also available through the housing partnership fund. Some £30 million is available nationwide and £5 million is being allocated to the south-west. Under the Housing Corporation's rural programme, 2,500 new homes have been allocated to rural areas. All that demonstrates a substantial investment in rural housing in my right hon. Friend's constituency and elsewhere.

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