Bring down the barriers to the housing ladder

Shadow housing minister Grant Shapps

Monday, 16, Jul 2007 12:00

Shadow housing minister Grant Shapps argues home ownership has become an issue of social justice and calls on the government to reduce the barriers for first-time buyers. As part of this, the government will have to build more homes – but not at the expense of the environment or local wishes.

One of the biggest challenges facing this country is the fact that many young people cannot afford to buy a home. Under the current government, the number of first time buyers has plummeted to the lowest annual total since 1980.

Soaring costs of living and higher council taxes have make it harder to save for a deposit which, combined with house prices, make it very difficult for many to raise a sufficient mortgage. First time buyers face an average stamp duty bill of £1,500 compared to nothing ten years ago; and Londoners getting on the housing ladder face a shocking £7,700 tax bill.

We need to build more homes – while protecting the environment and providing the infrastructure to support local communities. The greenbelt must be maintained, and infrastructure like roads, water, public transport, schools and hospitals need to be provided.

We will lend our cross-party support to measures which build sustainable, eco-friendly communities on brownfield sites, provided the plans have local support. Yet Conservatives would abolish the unelected regional planning bodies, and hand their powers back to local authorities. To encourage councils to plan for more homes, we want to see local authorities being given greater financial incentives to promote development in their area, and will reform the rigid and complex system of Section 106 agreements.

Planning regulations and density targets introduced by Labour have resulted in a relative glut of flats and a shortage of homes with parking spaces and gardens. Conservatives will change these rigid Whitehall planning rules, so that the market can build the homes that people actually want to live in.

Labour have made a series of cuts to right to buy for council housing tenants, and new tenants in housing associations do not have a full right to buy. By contrast, Government schemes like Social Homebuy are voluntary for housing associations to offer, leading to a minimal take-up rate.

We want to open up shared ownership schemes to a wider audience, rather than the small number of workers in the state sector at present, and end the scandal of new homes lying empty. This should include the right to part-own a stake in their homes and increase that equity stake over time. Right to buy and equity shares have a vital role in creating mixed communities and ensuring that residents have a direct interest in the state of their neighbourhood. Building societies and banks should have a key role to play in making shared equity more accessible.

We recognise the importance of a vibrant private rented sector, and want to avoid responsible landlords being enveloped in excessive red tape – which threatens to force up rents and restrict supply.

In short, Conservatives believe in wider home ownership is a matter of social justice. We want to bring down the barriers to getting on the housing ladder, to protect the environment, and to give families and young couples the scope to grow and to fulfil their aspirations of having a place of their own.