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Housing and the Credit Crunch

The report is most useful, and I congratulate the Select Committee on a timely and interesting contribution to the debate. The Committee made a number of recommendations and conclusions, most particularly on the need to continue building social housing and affordable housing to rent, a point made by the hon. Members for Islington, South and Finsbury (Emily Thornberry) and for Sheffield, Attercliffe (Mr. Betts). I agree with the recommendation that it is more sensible for the Government to focus on affordable housing for rent rather than on low-cost home ownership models, because of the difficulties of selling caused by the unavailability of mortgage finance. The right hon. Member for Greenwich and Woolwich (Mr. Raynsford) spoke of the need for sustainable communities and how they could be achieved. In a sense, we have an ideal opportunity to do that, given the Government's policy of dealing with housing developments being started but not completed, and the money being provided to the Homes and Communities Agency to invest in private development. We have an opportunity to drive that model forward. I hope that the Government will think seriously about mixing different types of rented tenure. It does not necessarily have to be a long-term solution. The hon. Member for Sheffield, Attercliffe, who is no longer in his place, asked whether we could encourage developers to continue owning properties and renting them, and whether they would then take a particular interest in the quality of their developments. If the taxpayer is to invest in property, we have an opportunity to ensure a mix of tenure, with affordable housing to rent, and intermediate and private rent. We should not focus on the model of home ownership, part or wholly owned, and affordable housing for rent as being the only option for mixed tenure. It is not. We need to progress that model quickly, particularly as the taxpayer is about to invest in certain developments.