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10.11 pm
The Parliamentary Under-Secretary of State for the Environment (Mr. James Clappison): I welcome the opportunity to respond to this debate on an important subject. My hon. Friend the Member for Finchley (Mr. Booth) has demonstrated before the House his long-standing knowledge and expertise on this subject, in which he has taken a great interest for many years.
I assure my hon. Friend that it is of continuing concern to the Government that every potential home in the public or private sector be used. The Government's best estimates point to a 4.4 million growth in the number of
households between 1991 and the year 2016 and, as my hon. Friend rightly argued, against that background we must have a strategy that makes best use of all existing housing. We cannot afford to have homes lying empty, for the reasons that my hon. Friend eloquently set out, and the desire to make best use of our homes is widely shared, as my hon. Friend the Member for Castle Point (Dr. Spink) emphasised in his intervention.
The latest figures, for 1 April 1996, show a welcome overall estimated 9 per cent. reduction in the number of vacant dwellings in England since April 1993. That is welcome news, but every home lying empty unnecessarily--owned by a local authority or housing association or privately owned--is a wasted resource, which could provide a home for someone in housing need.
As my right hon. Friend the Minister for Local Government, Housing and Urban Regeneration said when launching the empty homes week of action on 17 February, there is a role for each of us to play in addressing the problem. I hope that my hon. Friend the Member for Finchley and the House will agree, after hearing my response to his speech, that much is already being done by the Government and all the relevant agencies.
Empty homes fall into different categories, according to their ownership. I will deal first with the local authority sector. My right hon. Friend the Minister for Local Government, Housing and Urban Regeneration announced on 14 February that the number of local authority "management" vacants--dwellings that are ready for occupation immediately, or after minor works--rose to 47,700 at 1 April 1996, from 41,000 in April 1995. That is disappointing news. My hon. Friend made some observations about that, with which it is hard to disagree.
The Government encourage local authorities to find ways of maximising the use of their existing stock. Authorities can do that in a number of ways. For example, they can reduce under-occupation, first by ensuring that tenants are allocated homes that are the right size for their needs; secondly, by using transfers, exchanges and mobility schemes to release under-occupied dwellings, and thirdly, by using cash incentive schemes to encourage tenants to move to smaller homes or to buy a home in the private sector.
Collaboration between housing associations and local authorities to tackle under-occupation is essential. Local authorities can use their nomination rights to housing associations' dwellings and they can work with housing associations on planning new developments so as to achieve the right size of dwelling and type of housing.
Dr. Spink:
Does my hon. Friend agree that one of the best things that local authorities can do, especially those who deal with run-down local authority housing estates, is to pass those estates to the ownership of non-profit-making organisations, which generally run them much better, in the interests of tenants and the homeless?
Mr. Clappison:
My hon. Friend will be aware of the efforts that we have made to promote housing transfer and to bring private investment into housing, and especially of the efforts that we have made to help the poorest estates, through the estates renewal challenge fund. It gave me pleasure yesterday to visit in Durham one of the first of those estates to pass to a housing association. That has been met with great optimism in Durham.
Housing associations' performance in minimising their empty properties is generally good, and their vacancy rate is fairly stable. Housing associations are now required, collectively, to generate 500 extra lettings each year, by bringing vacant levels down further. The Housing Corporation publishes performance indicators which show that the target is being met. We can expect continued improvements as the corporation takes an increasing interest in the performance of individual housing associations.
The Government fully accept that they, too, should keep their own house in order. Government Departments have made great strides over the past few years to tackle the problem of empty homes. The number of empty homes on the civil estate fell by almost 600 between April 1995 and April 1996, and more exacting targets were set for 1996-97. That is on top of significant reductions achieved the previous year. We are particularly keen to ensure that Departments do not hold on to their empty properties for long periods. That is why we have set separate targets for tackling properties that are empty for more than six months.
Our key objective remains that of getting empty Government-owned properties into the hands of those who can make best use of them, and we encourage Government Departments to consider the option of sale or lease for social housing. Sale to the private sector can also help to address housing need, by creating home ownership opportunities and expanding the supply of rented housing.
One of the notable facts about empty homes is that by far the greatest number of vacancies is in the private rented sector. It is encouraging to see that the numbers of empty homes in the private sector have fallen, from 690,000 in 1995 to 667,000 in 1996. Nobody pretends that it is easy to find a solution to the problem, as the reasons for privately owned property lying empty are complex. Research carried out for my Department by a university showed that many privately owned properties are empty for valid reasons, reflecting normal transactions in the market. However, there are longer-term, problematic vacancies that require attention.
Local authorities have a role in tackling that problem, not only by keeping their own empty properties to a minimum, but by developing a corporate approach, working in partnership with housing associations, private owners and developers, property professionals and other public and voluntary sector bodies.
The problem of empty homes cannot be tackled in isolation. The most effective projects are part of broader-based regeneration programmes, tackling housing problems alongside unemployment, training, crime prevention and so on. For that reason, we have maintained the existing level of funding under the single regeneration budget for this year.
However, the most important role for Government is to create the conditions for a healthier housing market and remove obstacles to its effective working. The housing market is now on a firm upward trend. Low interest rates and low inflation mean that housing is now more affordable than it has been since the early 1970s. There could not be a better time for the first-time buyer to enter the market.
We have also put together a package of measures that will make letting a home easier and safer, and that will play an important part in encouraging more owners of empty properties to let them. The Housing Act 1988 made letting an empty property a more viable option by removing rent control and introducing the assured shorthold tenancy. The Housing Act 1996 progressed the situation further, making it easier for owners to let their properties on an assured shorthold tenancy and for landlords to get their properties back if tenants do not pay their rent or cause a nuisance to local people.
My hon. Friend went into some detail about his ideas for tackling these problems, such as appointing an empty property officer. I hope that he will not mind if I do not go into the details of his proposals. I know that my hon. Friend has had some interesting discussions about them. I assure him that we are anxious to see the records of some local authorities improve in this field. We want the worst performers to try to lift their standards to those of the best, who have set a good example in this area. The hon. Member for Greenwich (Mr. Raynsford) seems unable to restrain himself, so I shall give way.
Mr. Nick Raynsford (Greenwich):
I have restrained myself from commenting in the debate so far. I apologise to the hon. Member for Finchley (Mr. Booth) for arriving late to the Chamber owing to a prior housing engagement. Nevertheless, I told him that I was keen to be present for the debate. I welcome his initiative in raising the issue of empty properties. As to the percentage of properties that are currently void, no local authority in the country has as bad a record as some Government Departments. I hope that the Minister will adopt the view that the Government should take the lead by putting their own house in order before they lecture others about the proportion of empty properties.
Mr. Clappison:
I have already set out our approach to that situation, and the emphasis that we place on Government Departments' minimising the number of empty properties. However, I cannot allow to pass without comment the fact that the performances of local authorities vary widely in this area, as my hon. Friend correctly pointed out in his speech. The fact that some authorities are not reaching the standards of the best authorities means that hundreds--in some cases, even a thousand--properties are lying empty at a time of housing need.
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