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Housing

My Lords, on why we need special ventures and do not simply tell local authorities to go ahead and build, we have taken the decision over some time now that the better role for local authorities is a strategic one, in determining needs and provision rather than building. Other people build and develop better, not least the housing associations, which can borrow money on the open market. That is why, for example, we have been able to raise £19 billion for the decent homes strategy, which uses the local authorities. The special venture vehicles, along with the new local housing partnerships, are new ways in which to raise capacity and increase the role of local authorities in innovative ways. Some local authorities have been very open with us about the lack of capacity. This is what will make sense with regard to deliverability. As for infrastructure, the noble Baroness is absolutely right. The sort of infrastructure necessary to be planned into the new growth areas is why, for example, more than £1 billion in growth area funds and £200 million from the Community Infrastructure Fund have been awarded so far. Those sorts of infrastructure are accompanied by massive investment in education, schools, new health centres, transport and so on. This is very much a coherent programme and we are very well aware of the implications. The Treasury cross-cutting review on infrastructure is looking at how to pull all this together. Building communities is about more than building physical infrastructure. It is about community building: building memory in and building activity for young people, with safe green spaces, and creating spacious places to live, which you can do even in dense communities. That is what people want. Throughout this Green Paper and planning policy statement 3, we make it absolutely clear that we are not in the business of building homes or estates. We are building communities, which need lungs and space to thrive. That is important, as is the question of quality, which runs through this Green Paper. The noble Baroness asked about flood plains and town centres. There is an issue here about intensification of use, but it is not confined to town centres. One reason why the water companies are addressing the issue of repair to such an extent is the real need in that regard. Drainage and sewerage systems are as important as, if not more important than, providing fresh water supplies. On the figure that I gave about the income ratios, the ratio between prices and earnings will be 10 to one by 2026.