The credit crunch had just begun to bite when Caroline Flint, then Employment
Minister, inherited the tricky housing portfolio in January. Six difficult
months on, and with no respite in sight, desperate housebuilders and
aspiring buyers are looking to her to feel their painamp;#33; - and find
solutions.
To her chagrin, Ms Flint has instead become better known for her stylish
appearance, her suggestion that unemployed council tenants be forced to work
and her failure to tuck confidential briefing papers into her handbag.
These are mere distractions, says Ms Flint, as, in a new spirit of ministerial
openness, she tells Bricks & Mortar how eco-towns can make Britain a
world leader in green housing.
Q Is it still your view that house prices will fall by 5-10 per cent over the
next year?
A That was the view that was reflected by the data that we were getting in: I
start each day looking at the press cuts on the housing market.
Q How depressing for you...
A Some of it is depressing, but there's still a lot of volatility in the
opinions being expressed. That's why it's such a difficult call. I am
reliant - and I'm happy to admit this - on being informed by experts.
One of the questions I've asked building companies is: ‘Why didn't you see
this coming?' And they've said: ‘We never thought that things would be as
difficult as they are'. Things moved very, very quickly. The public
understand that the Government can't just wave a magic wand, but they do
want to see us responding and taking practical action.
Q Housebuilding is at its lowest level since 1945. How will the government
target of 3 million new homes by 2020 be met?
A That target is as relevant today as it was yesterday and will be tomorrow.
We need more housing. But clearly we are in a different climate to last
year. What I don't want to do is make a quick decision that looks good but
has no substance to it.
I have to be very sure that public money is going to be used to good ends. I'm
having discussions about what we could do with land deals, buying more
homes, shared-equity schemes and improving the offers that we provide for
first-time buyers.
Q Agents report that buyers do not request home information packs. Do you
regret their introduction?
A Look, where did we start from on this? It was responding to public concern
that buyers often had to pay duplicate costs for information that the seller
should take responsibility for. I think that desire to stop duplication and
have information in one place for people to access is as important today.
Hips get a bad rep but I don't believe that they have affected the market and
I think it's rather cheeky of people to try to drag them in. I think we can
improve the product and I'm willing to work with agents and solicitors on
this.
Q Isn't it overcomplicated to tax first-time buyers in the form of stamp duty,
then subsidise them under shared-ownership schemes?
A You can do whatever you want on stamp duty, but if mortgage lenders aren't
lending there's no point. My colleagues in the Treasury are also looking at
these things. There is some validity in some schemes are overcomplicated.
We changed the programme in the Budget, but I think there's more we could do.
There is some interest in a finance package in which lenders and
housebuilders would be part, rather than just a government-led scheme.
Given the terrible - the difficult - situation we're in, might something come
out of adversity to offer us a more sustainable approach to building and
buying homes? In a weird sort of way, without the credit crunch, we might
not have had that.
Q Will eco-towns really provide innovative green living?
A There are two parts to eco-towns: we can provide more affordable housing to
buy and rent in parts of the country that are under extreme pressure both in
terms of supply and affordability.
Equal to that is the opportunity to develop housing that is cleaner and
greener. We are now recognised as a world leader in terms of zero-carbon
homes and the sort of innovation that is happening in our building industry,
despite the credit crunch. Eco-towns are one way in which we can express
this innovation.
Q Aren't the 15 potential eco-towns meant to be on brownfield sites?
A I don't think we ever said it would be exclusively brownfield. With the
locations we are looking at there is substantial use of brownfield but some
greenfield too. There will be no building on the green belt.
Q Will there be a list defining “eco”?
A We are looking for some minimum standards but also each location has to
consider infrastructure - transport, water supply and how it engages with
existing communities. I am not trying to create cloned communities, where
every street has to be laid out a certain way and every door painted the
same colour. I'm not attempting to build “Flintgrads” in the UK.
Q What about the opponents of eco-towns?
A Part of this first stage is myth-busting. Local governments were concerned
that eco-towns would be added to existing housing targets. This is not the
case: eco-towns will be part of the overall target.
There have been legitimate concerns from people living near the proposed
sites. Whether or not these locations end up with an eco-town, these sites
are potentially ripe for development because of the severe shortage of
housing.
Q Do you find the press coverage of your appearance insulting?
A Yes. Many women have less power and less voice than I have, so I wouldn't
want to complain too much. But it is frustrating. If you're walking to
Downing Street and not smiling you're a moany old bag, and if you are
smiling, you're playing to the cameras.
One way that Ms Flint can sort out the housing market is to address the amount that builders get from HA's for affordable homes.
Why are private buyers still having to subsidise affordable homes by up to £70K per home in some areas?
Jonathan, London, England
from a minister who has destroyed the pub trade with her smoking ban yes pub not cafe resturants ? this lady is a Junkie a Power Junkie destroying the house market with useless hips . speeds up the sales process ect what a joke what will she come up with next . Time Gorden ! Rehab for this one .
Robert Fox, Norwich, Norfolk
Hips "where did we start from on this?"
Depends which minister is speaking. First it was to "speed up the conveyancing process". Then it was to give buyers an idea of how (in)efficient their proposed new house may be in terms of Co2 emissions. Now it's to avoid duplicate costs.
Gobbledegook!
Stephen Mannering, Nottingham,
I agree with Katie, HIPs are having an appalling affect in property sales. Its a shame the government couldn't have listened to the objections and concerns about HIPs in the first place! The market is already difficult enough as it is for Vendors!
Sophie, Tyne & Wear, UK
Another labour economic numpty, just like Gordon. They see the solution to falling house prices as getting banks to start lending again. The banks don't lend because they understand house prices are massively overvalued. Labour need to accept their debt replacing real production project was flawed.
Edward, London,
Face it Flint you and your government are a disgrace and the ongoing housing market collapse will become the mother of all UK housing market collapses making the 90s seem tame in comparison. And whose fault is it? Your glorious leader Brown who created the bubble with cheap credit. Just resign now.
chris, brighton,
No building on the green belt? The Weston Otmoor site is 25% green belt. The plan seems to get round that by just moving the green belt! Wonderful spin at its best! Why not move all the green belt to the Outer Hebrides, then we can concrete over the whole of South England and she won't have lied!
D Roskell, Weston on the Green, UK
Eco town policies are flawed & 997,000 houses are empty in the UK. 90% of workers from new town s will commute to work in existing towns & cause more un-ECO pollution.
The proposed ECO town at 'Long Marston' near Stratford on Avon will destroy beautifull countryside near the north Cotswolds.
Tim, Stratford on avon,
Eco-towns are a 'greening' of proposals previously rejected by local planning, and imposed without consultation
The proposed Ford Eco town site is 83% greenfield, the road network is operating above capacity, it will swamp three villages and is a flood plain.
I'm so glad that Ms Flint has "experts"
K. Chenery, Yapton, UK
So when she looks at improving the HIP she should remove the requirement for the costly local search. It's 3 month validity leads to duplication.She should then do what the Scots are doing - i.e. add the mandatory single survey and sellers questionnaire - things of real value to buyers.
Ed Chamberlain MRICS, NEWTON ABBOT, UK
After listening to a well informed female assessor who came to my house to complete the Energy Certificate I am now fully in favour of HIP's. Yes i have to pay for it, but so does the person I am buying from and I now know what to look for and how much i could save in my new house - brilliant.
Diane Martin, Norfolk, UK
Why are the government always looking to reinvent the wheel. There are many cities already with an oversupply of houses. If they bring much needed new eco industries to those cities it will solve many problems including some social issues.
Denise, Formby, UK
We here in Pennbury (Stoughton) Leics are looking forward to M/s Flint coming to see the Green and pleasant land that Co Op wish to build an 'Eco' Town ,and she will see that the so called Brown field site is an Active working Airport,(a facility that is used by Business men to help Leicester thrive
Anne Bond, Oadby Leics, England
HIPs- Ms Flint really needs to appreciate the system - The cost of the local search is being duplicated and in many cases, so too is the evidence of title cost. There is nothing in the HIP which would either persuade or disuade a potential buyer. It is a pointless exercise.
Vivienne Ives, Nottingham, UK
Does Flint own a second home (possibly paid for by the taxpayer thanks to MPs' self-awarded rip off expenses) or any BTL properties etc? She should state the position at the start of the interview - does she have any vested interests? Until then, I don't trust a word she says.
Clive, Chichester, UK
The HIP energy report makes an estimate of energy costs. My utility bills provide the actual costs. The HIP contains the title and this can be obtained online from the Land Registery for £3.00. There are pages of water search boiler-plate. Just flush the loo. At up to £400, it's a rip-off.
Edward, Bristol, UK
The minister's remarks may be true of the majority of sites but not Weston Otmoor.
It:
- is 80% agricultural land & a busy grass airfield, hardly brownfield or "ripe for development".
- does not engage with local communities (its only road exit is onto the M40 motorway)
John Whitworth, London, UK
Why does a labour minister find it "depressing" that house prices are falling? She claims to want to help first time buyers. Well if prices fall 50% it WILL help first time buyers. Flint however is more keen to help builders and banks make money by giving them taxpayers cash. Do nothing!!!
John Smith, Manchester, UK
As a conveyancer HIPs are now having a detrimental affect on the market - purchasers are not paying any money up front and it is therefore easier for them to withdraw from a transaction right up to the point of exchange - that is if they are not already demanding a £20,000.00 reduction!
Katie, Weymouth, UK
Waiting lists lengthen in every District,as house-building shrinks - in Maidstone now over 2500 - estimated that 15,000 building operatives will be sacked this year - give the Minister the 'magic wand' she needs and re-empower Councils to build houses-for-rent. Situation a disaster: Les Turner
Leslie Turner, Maidstone, UK