My Lords, under the Infrastructure (Financial Assistance) Act, the Government intend to issue up to £10 billion of debt guarantees to support the building of both private-rented and affordable-rented homes across the UK. As commonholds typically consist of privately owned properties and given that, in any event, commonholds are relatively rare, it is unlikely that any commonhold scheme will come forward under the guarantees programme.

My Lords, under the Infrastructure (Financial Assistance) Act, the Government intend to issue up to £10 billion of debt guarantees to support the building of both private-rented and affordable-rented homes across the UK. As commonholds typically consist of privately owned properties and given that, in any event, commonholds are relatively rare, it is unlikely that any commonhold scheme will come forward under the guarantees programme.

I am disappointed to hear that commonhold is unlikely to benefit. Does the Minister agree that many young people, particularly first-time buyers, would like to be empowered owners of their own homes and that commonhold is the fairest way of doing that in blocks of flats? Does he

also appreciate that this is the first time that I have had any sort of reasonable answer on housing from a different department? No matter how I table my Questions, I always get an Answer from what is now called communities—but the name changes so it is hard to keep up—no matter what the Question is. When I write to the Minister for Housing, he refers the letter to the Treasury, and the Treasury sends back a hopeless reply saying, “It’s nothing to do with us”. Does the Minister not think that this is a moment in history to have more joined-up government and better liaison and understanding between departments?

I am disappointed to hear that commonhold is unlikely to benefit. Does the Minister agree that many young people, particularly first-time buyers, would like to be empowered owners of their own homes and that commonhold is the fairest way of doing that in blocks of flats? Does he

also appreciate that this is the first time that I have had any sort of reasonable answer on housing from a different department? No matter how I table my Questions, I always get an Answer from what is now called communities—but the name changes so it is hard to keep up—no matter what the Question is. When I write to the Minister for Housing, he refers the letter to the Treasury, and the Treasury sends back a hopeless reply saying, “It’s nothing to do with us”. Does the Minister not think that this is a moment in history to have more joined-up government and better liaison and understanding between departments?

I absolutely agree with the need for joined-up government. As noble Lords would expect me to say, on a whole raft of housing initiatives, not least in relation to the Infrastructure (Financial Assistance) Act, the Treasury and the Department for Communities and Local Government are working extremely closely together.

I understand why the noble Baroness is such a keen proponent of commonholds, but between 2002 and the present day, there have been only 15 commonhold developments in England and Wales comprising a mere 161 units.

I absolutely agree with the need for joined-up government. As noble Lords would expect me to say, on a whole raft of housing initiatives, not least in relation to the Infrastructure (Financial Assistance) Act, the Treasury and the Department for Communities and Local Government are working extremely closely together.

I understand why the noble Baroness is such a keen proponent of commonholds, but between 2002 and the present day, there have been only 15 commonhold developments in England and Wales comprising a mere 161 units.

Has the Minister seen today’s Financial Times, which reports:

“While the government had hoped that pension funds would invest … £2 billion”,

in infrastructure,

“by early next year, a year of talks has so far raised just £700 million”.

When does the Minister expect to raise the missing £1.3 billion?

Has the Minister seen today’s Financial Times, which reports:

“While the government had hoped that pension funds would invest … £2 billion”,

in infrastructure,

“by early next year, a year of talks has so far raised just £700 million”.

When does the Minister expect to raise the missing £1.3 billion?

My Lords, the initial commitment of £700 million consists of a commitment by a significant number of pension funds to put in £100 million each as a starter. We are working very hard with them to scale up the programme, but it is a new programme. Pension funds have never done this kind of thing before and, not surprisingly, they want to dip their toe in the water before they immerse themselves more fully. I am very confident that they will see this initial £700 million as an effective investment, and then they will rapidly scale it up in the way that the noble Lord wishes.

My Lords, the initial commitment of £700 million consists of a commitment by a significant number of pension funds to put in £100 million each as a starter. We are working very hard with them to scale up the programme, but it is a new programme. Pension funds have never done this kind of thing before and, not surprisingly, they want to dip their toe in the water before they immerse themselves more fully. I am very confident that they will see this initial £700 million as an effective investment, and then they will rapidly scale it up in the way that the noble Lord wishes.

My Lords, I declare an interest in that I am a tenant in a flat in a mansion arrangement such as that described. Surely, moving into mansion flats is very attractive for couples or individuals when they are downsizing, which therefore frees up the whole of the housing chain. Will the Minister encourage the relevant department to look at strategies for encouraging commonhold so that this move is not discouraged by the endless confusion over freehold and leasehold? Perhaps there could be talks with Core Cities to encourage developers to follow these kinds of policies as a way to make more housing available all through the spectrum.

My Lords, I declare an interest in that I am a tenant in a flat in a mansion arrangement such as that described. Surely, moving into mansion flats is very attractive for couples or individuals when they are downsizing, which therefore frees up the whole of the housing chain. Will the Minister encourage the relevant department to look at strategies for encouraging commonhold so that this move is not discouraged by the endless confusion over freehold and leasehold? Perhaps there could be talks with Core Cities to encourage developers to follow these kinds of policies as a way to make more housing available all through the spectrum.

The Government and I will be very happy to make that commitment. The problem with commonhold is that virtually no one knows what the word means. Since being asked this Question, over the

past week I have asked a number of housebuilders and senior chartered surveyors whether they thought that it was a good idea. More than half of them said that they did not know what it was. There is a big education job to be done.

Very often the management of mansion blocks is by a management company in which each leaseholder has a share. At their best, they can work very effectively and are almost identical to commonhold, but clearly there are ways in which we can improve how those blocks are managed.

The Government and I will be very happy to make that commitment. The problem with commonhold is that virtually no one knows what the word means. Since being asked this Question, over the

past week I have asked a number of housebuilders and senior chartered surveyors whether they thought that it was a good idea. More than half of them said that they did not know what it was. There is a big education job to be done.

Very often the management of mansion blocks is by a management company in which each leaseholder has a share. At their best, they can work very effectively and are almost identical to commonhold, but clearly there are ways in which we can improve how those blocks are managed.

My Lords, does not the noble Lord appreciate that there is a major need for large infrastructure plans to be implemented now? Industry has made quite clear that guarantees are not sufficient. They want some Treasury cash. Why is the Treasury not willing to introduce just a little cash to implement these plans?

My Lords, does not the noble Lord appreciate that there is a major need for large infrastructure plans to be implemented now? Industry has made quite clear that guarantees are not sufficient. They want some Treasury cash. Why is the Treasury not willing to introduce just a little cash to implement these plans?

Our experience is that everyone wants some Treasury cash but, sadly, they cannot all have it. It may be of some comfort to the noble Lord to know that in the past quarter, housing starts were up 18% over the previous quarter. In terms of social housing, housing association starts were up almost one-quarter.

Our experience is that everyone wants some Treasury cash but, sadly, they cannot all have it. It may be of some comfort to the noble Lord to know that in the past quarter, housing starts were up 18% over the previous quarter. In terms of social housing, housing association starts were up almost one-quarter.

My Lords, will the Minister explain the circumstances in which it would be cheaper for the taxpayer for infrastructure to be financed with the use of a Treasury guarantee than for that same expenditure to be funded directly by the Treasury?

My Lords, will the Minister explain the circumstances in which it would be cheaper for the taxpayer for infrastructure to be financed with the use of a Treasury guarantee than for that same expenditure to be funded directly by the Treasury?

My Lords, the noble Lord is making a classic error to assume that there is an endless pot of Treasury money for use in infrastructure expenditure. As he knows only too well, guarantees do not feature as public expenditure unless they are called in. Our expectation is that the 70 expressions of interest we have had so far under the Infrastructure (Financial Assistance) Act are all extremely viable schemes and that the guarantees will not be needed.

My Lords, the noble Lord is making a classic error to assume that there is an endless pot of Treasury money for use in infrastructure expenditure. As he knows only too well, guarantees do not feature as public expenditure unless they are called in. Our expectation is that the 70 expressions of interest we have had so far under the Infrastructure (Financial Assistance) Act are all extremely viable schemes and that the guarantees will not be needed.

To ask Her Majesty’s Government whether they will support the development of commonhold properties by means of the guarantees to be given under the Infrastructure (Financial Assistance) Bill.

To ask Her Majesty’s Government whether they will support the development of commonhold properties by means of the guarantees to be given under the Infrastructure (Financial Assistance) Bill.

My Lords, I am delighted to be able to open the proceedings on the Infrastructure (Financial Assistance) Bill. The purpose of the Bill is to help accelerate significant investment in major infrastructure projects and it will increase the number of homes being built and occupied.

Before I set out the main...

My Lords, I am delighted to be able to open the proceedings on the Infrastructure (Financial Assistance) Bill. The purpose of the Bill is to help accelerate significant investment in major infrastructure projects and it will increase the number of homes being built and occupied.

Before I set out the main...

Is this putting into law the loan guarantee scheme?

Is this putting into law the loan guarantee scheme?

I hope that my speech will answer the noble Lord’s question adequately.

Firms will have access to the communications and transport networks that they need, wherever in the UK they happen to be, enabling Britain to compete on the world stage.

Our national infrastructure plan published last November sets out an ambitious...

I hope that my speech will answer the noble Lord’s question adequately.

Firms will have access to the communications and transport networks that they need, wherever in the UK they happen to be, enabling Britain to compete on the world stage.

Our national infrastructure plan published last November sets out an ambitious...

The noble Lord was kind enough when I asked him why we needed a Bill to point me to an answer given in the other place, which I have to tell him I found completely incomprehensible. I am still stuck. Will he say in terms that we need a Bill...

The noble Lord was kind enough when I asked him why we needed a Bill to point me to an answer given in the other place, which I have to tell him I found completely incomprehensible. I am still stuck. Will he say in terms that we need a Bill...

It is partly the scale of the operations and the length of the guarantees, and also because the current rules have gaps in them, as I understand them, or there are certain parts of the whole infrastructure world, as it were, that are not covered by the existing rules. To...

It is partly the scale of the operations and the length of the guarantees, and also because the current rules have gaps in them, as I understand them, or there are certain parts of the whole infrastructure world, as it were, that are not covered by the existing rules. To...