§ 7. Mrs. Ann Cryer (Keighley)If he will make a statement on resources for local authorities to improve their housing stock. [143970]
§ The Minister for Housing and Planning (Mr. Nick Raynsford)The Government inherited a £19 billion backlog of renovation and improvement work that was needed on council housing stock. We have made a commitment to tackle that and to bring all social housing in England up to a decent standard by 2010. Allocations for housing capital expenditure by local authorities have been increased from £750 million in 1997–98 to £1.9 billion in the current year. Next year, there will be a further large increase to £2.4 billion, more than double the annual average that the previous Government made available over their last five years.
§ Mrs. CryerI thank my hon. Friend for his helpful comments. Does he believe that they will help my young constituents in Ilkley, where there is a total lack of affordable housing to buy or to rent, mainly due to the previous Government's right-to-buy legislation? When many of my young constituents in Ilkley want to set up home, they have to move away from the areas in which they were brought up, and away from family and friends.
§ Mr. RaynsfordWe fully understand the problems that people experience because of the shortage of affordable housing and the poor condition of the housing stock, to which I referred earlier. That is why we have increased capital allocations. I am pleased to say that the increase for my hon. Friend's authority means just over double the current allocation, in line with the national trend, from £12.7 million in 1996–97 to £26.3 million in 2001–02.
For the provision of more affordable housing, we have doubled the allocation to the Housing Corporation for new investment through registered social landlords. We expect that to lead to a significant improvement in the output of affordable social housing in the next three years.
§ Mr. Ronnie Fearn (Southport)Will the Minister give more help to housing associations, which, in partnership with local authorities, occasionally provide housing for 194 single people? For example, in my constituency Quest housing has done a remarkable job. Will that work be extended?
§ Mr. RaynsfordAs my hon. Friend will have heard me say in answer to my hon. Friend the Member for Keighley (Mrs. Cryer), we have doubled the Housing Corporation's allocation for funding of registered social landlords. Total provision will rise from some £690 million in the current year to more than £1.2 billion at the end of the three-year spending review. The money will be available for new investment by housing associations, and local authorities will be able to use their enhanced housing investment programme allocations in the form of local authority housing grants to support similar initiatives.
§ Dr. Lynne Jones (Birmingham, Selly Oak)Will my right hon. Friend confirm that the Government intend to ensure that there is enough investment in social housing for them to honour their commitment to bring all council housing up to a decent standard within 10 years?
My right hon. Friend said earlier that council tenants would decide the future of their housing. If tenants vote against stock transfer, will the amount that would have been available for that process be available for investment in housing that remains in council ownership?
§ Mr. RaynsfordAs my hon. Friend says, we believe that it is for tenants to determine the best option. We have provided four options for the future of council housing, all of which include increased resources.
It is right for tenants to decide in the light of local circumstances. We expect about 200,000 properties to transfer from local authorities to registered social landlords, but that will be determined by tenants. We expect substantial investment through the new major repairs allowance, thereby enabling local authorities to improve the condition of their stock. We expect a take-up of the new arrangements for arm's-length companies, under which local authorities will qualify for additional capital allocations; and we expect increased allocations through the fourth option, the private finance initiative.
By means of a range of different provision, we will ensure a substantial increase enabling us to meet our target of bringing all social housing up to a decent standard by 2010.