The Conservative party sets out its plans on affordable homes for sale.

Our Conference Message: Security, Stability, Opportunity

  • We are modern, compassionate Conservatives who are truly on the side of working people – whatever stage of life they are at.
  • A home-owning revolution: Generation Rent to Generation Buy

Summary: The Prime Minister has announced a major boost to affordable home ownership. We will ensure affordable housing includes low cost home ownership, so young people are not locked into renting when what they really want is a home of their own.

  •  For years, politicians have been talking about building what they call ‘affordable homes’–but the phrase was deceptive.It basically means homes that were only available to rent. What people want are homes they can actually own. Old rules said to developers: you can build on this site, but only if you build affordable homes for rent. We are replacing them with new rules: you can build here, and those affordable homes can also be low costs homes to buy.We are helping Generation Rent move to Generation Buy.
  • Current planning rules prevent Starter Homes, which give first time buyers at least a 20 per cent discount on a new build home, as counting as affordable. But such homes are a key way for many to turn their dream of owning their own home into a reality as part of a sensible affordable housing mix. This will help deliver more homes for first time buyers, more quickly.
  • Starter Homes are only a part of the Conservative proposals on home ownership. We will extend the Right to Buy to housing association tenants, support Help to Buy up to 2020, and increase the supply of new homes by helping small and medium sized builders,and ensure councils deliver enough homes to meet their local housing need.

Background

  • Extend the definition of affordable homes to include Starter Homes.Starter Homes are a new Government programme to build low-cost homes for first time buyers, under 40 years old. Prices are at least 20 per cent lower than the market rate. However, they are not currently classed as ‘affordable’ housing under government planning rules. The current policy says: ‘low cost market housing may not be considered as affordable housing for planning purposes.’1

 

  • Holding out for unrealistic types of‘affordable’housing hinders house building. While house builders need to support affordable housing, in some cases local authorities demand a particular type, or level, of a particular type of affordable housing that is simply not financially viable to sell and maintain. This stops homes from being built in the first place, and prevents house builders from meeting the untapped market demand of low cost homes to buy. By introducing more flexibility, more sites will be built out, and as a result, more affordable housing provided than would otherwise be the case.
  • People want a home of their own: Thanks to these rigid rules, young people are being locked in to renting, when actually they want to buy their own home –at an affordable price. Given the choice, 86 per cent of people want to own their own home rather than rent, and a fifth say the high cost of housing is the barrier.2 There is massive untapped demand for low cost homes to buy, which the market is being prevented from providing due to state rules.

Our solution

  • We are going to change the rules to include Starter Homes in the affordable housing definition. At present such a model of a discounted home for outright purchase is not covered by the definition. We want this model of discounted home ownership to be seen as part of the affordable housing mix. This does not reduce the total financial value of affordable housing provided –but actually can help increase the total level of affordable housing by making more sites economically viable.
  • We will also make it clear that councils cannot hold out for one type of affordable housing over another. We will be making clear that significant delays based on the type of affordable housing rather than the overall cost of affordable housing are not acceptable,giving flexibility to developers to bring forward sites with different types of affordable housing.This will not reduce the total amount of support toward affordable homes. Existing guidance already states that councils should be flexible in delivering affordable housing through Section 106 agreements. DCLG will be strengthening this guidance, writing to the Chief Executive of the Planning Inspectorate, writing to Chief Planning Officers, and considering any other measures necessary if these measures fail to have the desired impact. Local authorities should be flexible on the type of affordable housing on any specific site in order to make sites viable and get homes built.
  • This will go alongside measures to ensure Starter Homes on all reasonable sized sites. As set out in our Productivity Plan we have said that all reasonably sized sites should have Starter Homes on them. We will also take forward measures at the Spending Review to refocus support on low cost home ownership rather than primarily homes for sub-market rent.

Conservative record

  • Delivering affordable homes. We have built 260,000 affordable homes since 2010–with a quarter of them in London.1
  • Higher level of council houses built. Twice as many council homes were built between 2010-11 and 2014-15 than under 13 years of Labour Government.2
  • Housing starts are at their highest since 2007. Moreover, last year, councils across England granted permission for 261,000 new homes–showing that our locally-led planning reforms are working.3

Costing and funding

  • There is no cost to taxpayers.This is about allowing affordable housing to be for sale as well as for rent.

Bombing Syria?

Mr Fallon has told us that he is seeking to win over more MPs to the idea that the UK should join in bombing ISIL in Syria. He tells us it makes no sense for us to bomb ISIL in Iraq, but not to bomb them if they step over the border into Syria.

There are of course two ways of dealing with this apparent anomaly. We could decide to bomb them in both places as he wishes, or we could decide to bomb them in neither. At some point war in Iraq and Syria has to give way to a peace settlement. At some point people have to lay down their arms and turn to the much maligned arts of politics to seek a way of living together. When that happens in Syria a  thug government has  to talk to terrorist opponents, and the potential moderates have to find their voices and voting support in order to  offer some solutions that are more palatable.

There are reasons why the UK has  not rushed to bomb in Syria as well as in Iraq. Mr Fallon has to recall that when the government last wanted Parliament to vote to support bombing, it was to support bombing against Assad in  the name of his opponents. I refused to do so then not   because I have any love of Assad’s brutal regime, but because I could not see a friendly democratic opposition who could rise up, win the war and offer a peaceful transition to better government. I was worried that harming Assad more could either give opportunity to extremists to take over, or might just prolong the war and bloodshed further.

Iraq and Syria are different, not least because the Iraqi government has asked us to help them by bombing ISIL, whereas Assad does not. The UK sees the Iraqi government as different in kind from the government of Syria. Legally the case is easier for Iraq than for Syria. Politically and morally the UK government is happier to help the government of Iraq than the government of Syria.

In  other ways they are similar. Both countries contain entrenched warring factions. Both have terrorist problems not just from ISIL but also from groups like Al Qaeda and Jabhat al Nusra. Both are split between Sunni and Shia groups. Both have Kurdish areas where the people want an independent state.

The best the UK could offer might be to seek to lead a very difficult initiative to get the forces and factions on the ground and the great and regional powers circling the two conflicts to sit down and discuss borders, systems of government, and who is best equipped to lead. Russia’s intervention is clearly trying to move the forces in Assad’s favour in Syria, not something the west welcomes. The longer the west delays in seeking a negotiated solution, the worse the position on the ground may become.

Poverty and inequality

Poverty is a scourge which always needs fighting. I spoke about this on Monday. I was pleased to see the Prime Minister dedicate himself to an all out assault on poverty yesterday.  Poverty is relative as well as absolute. The west has long since gone beyond making sure people have the basics for life – enough food to survive, a few clothes and shelter. Our welfare systems are designed to let people afford  some of the benefits of the rich society around them in addition to some absolute minimum. The political argument is over how much should people enjoy from benefit payments, who should qualify for benefits,  and what is the best way of encouraging and helping more people into work, and then into better paid work.

In my speech to the Conference fringe meeting I sketched a small  society. Nine people each earned £20,000 a year. The average earnings of the community was £20,000, and there was no inequality. Total earnings were £180,000. A very well paid CEO of a multinational decided he wished to join this community, bringing his income of £820,000 a year. The socialist was against his arrival, as it would generate a huge jump in inequality.

After his arrival the average earnings of the community leapt from £20,000 to £100,000. Inequality shot up from zero, to the highest paid earning 41 times the lowest. The community  now had someone to be jealous of. The total earnings of the community reached £1 million.

Surely, however, the community should welcome his arrival. It would immediately mean the community could collect around £500,000 or more  of additional income, capital and sales taxes from the new arrival, to spend on the  existing community members and their needs. It would allow them to find new markets for their products and services, or to gain higher paid employment by working for the new arrival. Far from the new arrival being bad news, he would generate more growth  and allow the people on £20,000 a year each to earn more and to enjoy more public spending than they could afford for themselves. The inequalities need to be looked at on a post tax basis, not a pre tax basis, and need to take into account the impact of the spending by the more affluent on the incomes of the less affluent.

Poverty is the problem to tackle vigorously. Inequality is very bad if it comes about by the poor getting poorer. If inequality rises because more rich people decide to live here, it can provide money for higher living standards for all.

Children in need and cancer care

t the request of constituents I visited the Children’s Society stand at Conference to receive their briefing on how we can make more progress tackling child poverty and abuse of children.

I also visited the Cancer Research stand to hear of their progress and plans for better cancer research and care.

 

Mrs May changes her mind on the EU and borders.

Mrs May has travelled a long way since 2002 and her modernising  agenda. More recently she asked the Conservstive party to vote to sacrifice criminal justice powers to the EU when we had no need to do so.

Yesterday she posed as a resolute fighter against the EU having power and influence over our borders and migration policy, and warned that allowing too much migration into the UK was damaging to our society.

Mrs May is the senior Minister charged with the duty of getting net inward migration down to tens of thousands from the current level in excess of 300,000 a year. This is a good and popular policy. I am glad she is taking it seriously.

 

It it happens to be remarkably similar to the policy offered by the Coalition government in the last Parliament, when Mrs May was also the responsible senior Minister. Maybe it was too difficult to do with Lib Dems using a veto on measures required to achieve it. Now she is freed of that problem, what we want to hear from Mrs May is the practical steps that she is taking to achieve the policy aim. We do not need dramatic language or warnings. We need her to preside over a harmonious and successful society, and to find fair and effective ways of carrying out her prime policy goal.

I  suspect she knows that we do need to regain control over migration from the EU to fulfil the policy objective.  Her new anti EU rhetoric needs to share with us  how she intends to get back lost powers over our borders from within the EU and how she is contributing to Mr Cameron’s renegotiation. I wish her well with that endeavour.

Guide Dogs

I met the Guide Dog representatives at party Conference. They are running their campaign to stop pavement parking, as bay parked vehicles get in the way of blind people seeking to walk along the pavement. I support their campaign and will raise it again with Ministers.

We might need to leave the EU to reassert our sovereignty

At the Politeia meeting last night on Stay or Leave we ended up debating sovereignty. Most of us wish to restore or reassert UK sovereignty. If the UK people and their Parliament want to change a law or control our borders, or decide how much to tax and spend we need to be free to do so. None of that is possible under the present Treaties.

 

Some argued that the UK remains sovereign. They pointed out that the EU only has power in the UK thanks to the 1972 European Communities Act. What Parliament granted to the EU it could take away. Clearly having a referendum on whether to stay in the EU is the act of a sovereign country. If we vote to leave then leave we can and leave we shall. We can leave by repealing the 1972 Act.

The problem is if the UK does not wish to exercise this power, at what point does the power cease to exist? At what point are we so dominated by European Treaty law and by EU regulations and directives that we can no longer claim to be sovereign? At what point would seeking the amendment or repeal of the 1972 Act cease to be possible, as we were so bound in by EU laws?

The danger is the EU already has a very different view of our legal position to our view of it. They see us as subject to the superior law of the treaties and European Court. Re asserting sovereignty comes down to a question of political will. Either the government has to show it in its renegotiation, or the British people have to show it in, the referendum. If we leave it too long we will discover our sovereignty is no more, and the EU can control us by court judgements and new laws.

Aircraft noise

I met the Heathrow management again at Conference. I told them there are still many complaints about the more persistent and loud aircraft noise Wokingham is now suffering.

They said their records showed that once they ended the trials of new routes prematurely following our complaints, they thought air traffic movements had gone back to normal. They now realised that people do not agree that have to live under the flight paths. They now think that maybe individual air traffic controllers are deciding to route more planes on the same routes, concentrating the noise over Wokingham and Bracknell.

They agreed to take this up with NATs to see if air traffic controls have changed and if this can be changed again to take it back to the situation prior to the trials. I too will pursue it again with Ministers and NATs.

 

 

Opportunity for all, prosperity and home ownership for the many

I wish to hear today an optimistic message from Conference. Conservatives must use this period in office to promote greater opportunity and prosperity.

To do so requires lower taxes. People should keep more  of what they earn, and more of what they make by venturing their savings.

Lower tax rates on income and gains will also yield more tax revenue to help those in need. the state should be generous to the disabled, and to the elderly who need care.

To do so requires us both to build more homes and to limit inward migration. House prices are too high and rents too dear in places around the country and especially in London.

To do so requires more gas fuelled power stations providing more reliable and cheaper energy.

To do so requires a transport policy that makes it easier to get work by car or by train, with more commuter rail capacity and more road capacity.

 

I go to Conference to further my campaigns for these improvements.

Europe and the Conservative conference

Some in the media have already written the script for the Conservative conference – splits on Europe. It was a silly script to write during the Opposition years, when the Conservative party was happily united opposing the Nice, Amsterdam and Lisbon treaties, opposing the Euro and resisting more powers to Brussels. It is an even sillier script now we are united in offering the UK people a referendum on our membership, with all enjoying the freedom to express their own view on what is wrong with our EU relationship and how we wish to change it.

The good thing about the Conservative conference is it offers the government an opportunity to remind other members of the EU that behind Ministers lies a party and a country that is far from happy with our current relationship. We have alerted people to the growing political union on the continent, and how the UK needs a new relationship with that emerging union as we have no wish to join it. Today those who want to stay in the EU agree with many of the current Eurosceptic criticisms of the current EU. They do not defend the present borders and migration policy or our lack of control over our own borders. They do not defend the dear energy policy which is hitting our industry, the lack of trade agreements with India, China and the USA, the high bills sent to UK taxpayers for spending elsewhere in the EU, or the mass unemployment being created by the Euro in many countries of the Union.  They need to show us how the UK can negotiate a settlement from inside, as many of us are happy to leave to solve these problems once and for all.

Conference should be primarily about how we increase the prosperity of our country. It is time to explain and to develop the policies we need to offer home ownership to the many at affordable prices, to create more and better paid jobs, to rebuild industry and embrace new technology.