PARLIAMENTARY DEBATE
Housing - 9 April 2019 (Commons/Commons Chamber)
Debate Detail
That this House has considered housing.
As we forge a new relationship with the European Union, building the homes our country needs is a mission more important than ever, because a home is so much more than a roof over your head; it speaks directly to your hopes and dreams—[Interruption.]
Housing is this Government’s chief domestic priority, and our progress is already clear. For the first time in 10 years, home ownership among 35 to 44-year-olds is up. We have helped over 500,000 people into home ownership since 2010 through Government schemes such as Help to Buy and right to buy. Last year, we built more homes than in all but one of the last 31 years, bringing us closer to our ambitious target of 300,000 new homes a year. However, there is much more to do if we are to meet people’s aspirations.
When I took on this role last year, I made my task a simple one: more, better, faster homes. I will begin with “more”, because we are taking bold action on a number of fronts to increase supply. We are putting billions into housing and infrastructure—at least £44 billion over five years. We are reforming planning and we have empowered Homes England, our new national housing agency, to take a more strategic and assertive approach to increasing supply. We have recently announced the award of £1.2 billion of grant funding from our £5.5 billion housing infrastructure fund. The seven successful schemes have the potential to unlock up to 68,000 new homes, and we look forward to announcing further awards in the coming months.
We are not looking only to the market to deliver; we have paved the way for a new generation of social housing by removing the Government cap on how much councils can borrow, so that they can start to build a new generation of community homes.
In addition to our affordable homes guarantee scheme, which gives £3 billion of guaranteed support, making it cheaper and easier for housing associations to raise funds and get building, we are increasing supply as the means to make the most of the space we already have, including land that has already been built on. With that in mind, the planning proposals and consultations announced in the autumn statement aim to give people more flexibility to build upwards on existing buildings and in converting commercial properties. This is a positive step that ensures we conserve precious land, accelerate supply and help to revive our high streets.
We are also looking at how we can close the gap between planning permissions and homes built, and we will be taking action on the back of the review by my right hon. Friend the Member for West Dorset (Sir Oliver Letwin) to do just that.
That is something we are backing through our £4.5 billion home building fund, £2.5 billion of which is to champion small and medium-sized enterprises, custom builders and more diverse builders to get modern methods of construction and other cutting-edge tech into the mainstream. The fund has already allocated all of the original £1 billion of short-term funding. Over 94% of the funding contracted to date has gone to SME builders. We expect the fund to deliver more than 30,000 homes—around 5,000 more than the original target.
I am mindful that, with such a dramatic increase in supply, the more we build, the more important it is that we get it right. That is why we are focused on building better. A key part of that is communities having a bigger role in shaping the future of the places they call home. We are making changes to our planning system, and in particular the planning rule book, so that they can do this. We are providing greater clarity and certainty for developers and communities alike, by giving local areas more options and the freedom and flexibility to make effective use of the land they have. That is crucial if we are to reassure communities that promises made on the provision of affordable housing and infrastructure will be promises kept. Keeping promises is the only way to ensure that communities will continue to have faith in new developments.
We have also seen how community support increases when we build homes that grow a sense of place, rather than undermine it. It is why we are championing design and quality through the Building Better, Building Beautiful Commission. We reinforced that in February when we hosted a second national design conference. It is increasingly important as we create new settlements across the country, such as garden communities. Last month, we announced support for a further five garden towns with the potential to deliver up to 65,000 homes, in addition to the 23 locally led garden communities we are already supporting.
It is not just about getting numbers up, however. We are determined to put fairness back at the heart of the housing market. Our commitment to restore the dream of home ownership remains as strong as ever. That is why we have committed to a new Help to Buy scheme, which will run from April 2021 to 2023. We have cut stamp duty for first-time buyers and put a call out for evidence on innovation in shared ownership. We believe that the private rental market can be a stronger platform for those aspiring to home ownership, turning “generation rent” into “generation own”.
Turning back to ownership, as I said, I wanted to turn “generation rent” into “generation own”, but we also believe that fairness should not stop once people get the keys. That is why the Secretary of State unveiled a new industry pledge last month to bring an end to onerous lease terms, such as the doubling of ground rents. More than 40 leading developers and freeholders have signed that pledge and I encourage others to follow the lead. We are bringing forward legislation to require developers to belong to a new homes ombudsman to champion the rights of home buyers and to ensure that they get the quality build that they rightly expect. We will soon consult on how this will work so that we can ensure that consumers’ problems are resolved faster and more effectively.
Happily, the picture is also improving for renters. We are cracking down on rogue landlords and from 1 June, the Tenant Fees Act 2019 will come into force, banning unfair letting fees and capping deposits. These vital steps will protect tenants and save them millions. We will also set out our position shortly on longer-term tenancies, because those in the private rented sector can face a high degree of insecurity. It is time that we put that right. Indeed, landlords could also benefit from more stability. As well as feeling more secure, nothing is more important than people being safe in their homes, so we will also be implementing a new regulatory framework for building safety. It is no small task but it is the debt we owe to those who suffered so terribly from the Grenfell fire, because everyone must be safe and feel safe in their home, no matter where they live.
I am also mindful of those without a place to call home. When I reflect on what we can do better, I am clear that we must do everything possible to confront rough sleeping and the broader challenges of homelessness. Our cross-Government, £100 million rough sleeping strategy is helping our rough sleeping initiative reach more parts of the country—now more than 75% of local authorities in England. As part of that, we announced £46 million to support people off the streets and into accommodation in 2019-20, because we have already seen how that can work and make a real difference. Recent figures have shown the first fall in the number of people sleeping rough in eight years. However, we should make no mistake: one person sleeping rough is one person too many and we remain more determined than ever to end rough sleeping for good. That means combating homelessness, and our ambitious £1.2 billion package of support will help tackle it in all its forms, giving some of the most vulnerable people in our society the security and dignity they deserve.
As I hope I have shown, we are making every effort to get everyone on board to deliver not just more homes but stronger communities. My triple challenge—more, better, faster—is the key to the country’s happiness, health and prosperity and the work is starting to pay off. The number of homes built is up, rough sleeping is on the turn, there is greater fairness in the rented sector and more beautiful and innovative places to call home should start to appear. We have every reason to be confident and optimistic as we look forward to our future outside the European Union. A stronger, fairer, more diverse housing market can be the bedrock of our future success—a way to spread opportunity and ensure that no one is left behind. We remain focused on delivering that and fulfilling the basic promise that each generation must make to the next: that their life will be better than ours.
“Housing remains the Government’s top priority”.—[Official Report, 10 December 2018; Vol. 651, c. 18.]
It is a pity that he has not made it the top priority in his diary today.
It is good to see the Housing Minister speaking for the Government today. He not only told the House that housing was the Government’s chief domestic priority, but told an industry conference in February that
“once we get beyond Brexit, housing will be the Government’s priority.”
Given the mess that the Government have made of Brexit for more than two years, and given that the Prime Minister is in Europe today begging for an extension just so that we can move on to the next stage of the negotiations, that bodes badly for the Government’s future focus on housing. I have to say to the Minister that Brexit is a very feeble alibi for a totally non-Brexit Department with six Ministers and 2,000 civil servants.
I enjoyed the Minister’s speech, but the story that he tries to tell is so at odds with the experience of millions of people up and down the country that he and his colleagues risk sounding complacent. They risk sounding as if they just do not get it. They do not get the public’s anger and frustrated hopes of a housing market that they feel is rigged against them. They do not get the despair at being one in a million on council housing waiting lists when the number of new homes for social rent built last year was just 6,453. They do not get the lives blighted by bad housing—children growing up in temporary accommodation hostels, renters too scared to ask landlords to do repairs, young couples stripped of the hope of home ownership and prevented from starting a family or putting down roots—and they do not get the fact that a systematically broken housing market demands wholesale change and cannot be fixed without big action from Government.
The Government’s record is now very clear. The rate of home ownership is lower, with almost 900,000 fewer under-45s owning a home now than in 2010. The level of homelessness is higher: the number of people sleeping rough on our streets has more than doubled since 2010. Private rents are higher, with the average tenant paying £1,900 more than in 2010. The rate of social house building is lower, and in the last two years it has been the lowest since the second world war. Let me say this to the Minister. If the Government had only continued to build homes for social rent at the same rate as Labour did in 2009, there would be 180,000 more of those homes—more than enough to house every family in temporary accommodation, every person sleeping rough on our streets, and every resident in every hostel for the homeless.
The Minister said, in response to an intervention from my hon. Friend the Member for Hornsey and Wood Green (Catherine West), “We are very close to completing the rehousing of everybody who was involved in the Grenfell Tower fire”. I have to say that, nearly two years on from that shocking national tragedy, the Government’s action is still on go-slow. He would not give the House the figures, but one in 10 of the residents from the tower and one in three of the residents from the wider estate who were involved in the fire still do not have a permanent new home. Eight in 10 residents of other high-rise blocks across the country that are covered in Grenfell-style cladding have still not had it removed and replaced. Those are residents in 354 high-rise blocks across the country, nearly two years on from the fire.
Given that record over nine years, it is little wonder that, when asked, three in four people say that they believe the country has a housing crisis. They are right, of course. Everybody knows someone who cannot get the home they need or desire. They say that the crisis is getting worse, not better, and they are right. Even many Conservatives have lost faith in the free market fundamentalism about housing, because it is failing on all fronts. That is why the Conservatives have been losing the argument and have been forced to cede ground to Labour, from legislating to outlaw letting fees, to banning combustible cladding on high-rise blocks and lifting the cap on council borrowing to build new homes.
However, those are baby steps. The biggest roadblock to the radical changes needed to fix the housing crisis for millions of people is the Conservative party itself. It is largely the same ideologically inflexible Conservative culprits who are making the Prime Minister’s life so difficult over Brexit who will not countenance the Government action that is needed to deal with the other big challenges our country faces: social care, falling real wages, deep regional divides and, of course, housing. So after nine years, we must conclude that the Conservatives in government cannot fix the housing crisis, and that it will fall to a Labour Government to do that.
Here is the plan. We will build 1 million genuinely affordable homes over 10 years, the majority of which will be for social rent, with the biggest council house building programme in this country for nearly 40 years. We will reset grants for affordable housing to at least £4 billion a year. We will scrap the Conservatives’ so-called affordable rent and establish a new Labour definition linked to local incomes and not to the market. We will stop the huge haemorrhage of social rented homes by halting the right to buy and ending the Government’s forced conversions to affordable rent.
We will end rough sleeping within five years, with 8,000 new homes available to those with a history of rough sleeping and a £100 million programme for emergency winter accommodation to help to prevent people from dying on our streets. We will legislate so that renters have new rights: to indefinite tenancies; to new minimum standards; to controls on rents; and to tougher enforcement. We will give young people on ordinary incomes the home ownership hope that they deserve, with first-buy homes, with mortgage costs linked to a third of local incomes and with first dibs on new homes in their area.
I believe that the fund will transform the community-led housing sector. It is expected to deliver 10,000 homes by 2021. However, the fund ends with the end of the current spending period. With more than 3,500 homes now in the pipeline, it is essential that the fund is extended to the next spending review period so that those homes can be delivered. Because of the delay in the spending review, there will now be a significant period of uncertainty for groups. Money must be spent by March 2020, so few bids will come forward from this point on. The spending review will not conclude until the autumn statement, at the earliest, and there could be further delay and indecision following that. So groups, including those in Cornwall, face an invidious choice. Should they continue to work on their projects and hope that funding will come through, or should they wait and potentially stall and collapse?
In the social housing Green Paper, the Government acknowledged that housing associations could deliver more if they were given more time. That is more true for this sector than for any other. To illustrate my point, the Cornwall Community Land Trust, a well-respected enabler of community-led housing, estimates that the discontinuance of the community housing fund could put up to 230 community-led homes in jeopardy.
I am sure we all agree that we need to deliver more genuinely affordable homes for local people in beautiful coastal communities where there are very high house prices, such as those in Cornwall, where it is so attractive for people to buy second homes. We need those affordable homes to sustain communities for generations to come, so I urge the Minister, who I know wants to ensure that my constituents and people all over the country have high-quality homes to live in, to make an urgent statement about the continuity of the much-supported and much-needed community housing fund.
Part of the problem with the Conservatives’ approach is its ideological underpinning. They insist on the dream of everyone owning their own home, totally undermining the fact that many people can live long, happy and productive lives in social rented housing. For many of my constituents, a social rented house is an aspiration, and they are perfectly happy to live in one. Indeed, my gran lived in social rented housing her entire life and never owned her home.
The Tories’ record on housing is one of their failed promises. The UK Government talk big but deliver very little, with flagship manifesto pledges disappearing almost as soon as they are made. House building in England has fallen to its lowest level since the 1920s, while evictions are at a record level, the lead cause of people becoming homeless is the end of a tenancy, and a mere one in five council homes is replaced when it is sold.
Contrast that with Scotland, where we have ended the right to buy for social rented housing, securing social rented housing stock for the future. No longer do houses disappear from the social rented sector and reappear almost instantly in the private rented sector at inflated rents that people cannot afford to pay. We have secured that investment, which has meant a huge amount to many of my constituents and to people right across Scotland.
In England in particular, hundreds of thousands of people are stuck on social housing waiting lists because new stock just is not being built and houses that are sold off are not replaced. All the while, homelessness is up by 50% and rough sleeping has risen for seven consecutive years. I note that the Minister said rough sleeping has fallen recently, but that is on the back of huge spikes.
It is widely recognised that the Scottish Government are leading on housing policy. Our legislation on secure tenancies and in other areas has given renters in the private rented sector huge security. Ensuring that everyone has a safe, warm and affordable home is central to the Scottish Government’s vision of a fairer and more prosperous Scotland. People cannot get on in life if they do not have a secure tenancy, a warm home and a roof over their head.
The SNP remains on track to deliver on our target of building 50,000 affordable homes during the lifetime of this Scottish Parliament, which is backed by more than £3 billion of investment in the sector. There were 18,750 new build homes completed across all sectors in the year ending September 2018, an increase of 4%, or 635 homes, on the previous year. The latest statistics show that the Scottish Government have delivered nearly 82,100 affordable homes since 2007, which is significant. [Interruption.] The hon. Member for Ochil and South Perthshire chunters from a sedentary position, but things are not going nearly as well in England. We are building proportionately more homes, more quickly, and he would do well to listen to us about this.
That is all in the face of the challenges of austerity. Housing associations tell me they are deeply concerned about the Government’s social security policies. For example, the roll-out of universal credit has negatively affected both tenants and landlords due to the major increase in rent arrears. I hear that from housing associations in my constituency and across Scotland, and my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) could tell the House how housing debt has soared astronomically and how the Government have not learned the lessons.
A report this month from the Scottish Government shows that in East Lothian, for example, 72% of social housing tenants claiming universal credit are in arrears, compared with 30% of tenants overall—that is happening across England, too—and with a trebling of evictions for non-payment of rent over the year since universal credit was rolled out.
Some 88% of local authorities expect an increase in homelessness as a result of welfare reform over the next two years, and 75% expect that the roll-out of universal credit will increase homelessness. We are doing what we can in Scotland, and we have introduced a full mitigation of the bedroom tax, which people in England still have to pay. Without that, 70,000 individuals would lose, on average, around £650 a year. We also provide additional funding for direct mitigation of welfare reforms, direct support for those on low incomes and advice and other services.
Further, concerns remain on the UK Government’s right-to-rent scheme. There is a lack of clarity on what will happen with the scheme, and the Scottish Housing Minister, Kevin Stewart, has been in touch in light of the recent High Court ruling. What is actually going to happen with the right to rent? We need to know for the security and safety of our tenants in Scotland.
We are still waiting on the courts to see whether Serco’s lock change policy in Glasgow of August 2018 is unlawful. The policy has led to huge distress among those in the city of Glasgow with insecure immigration status, and we need to know the answer so that those affected have some certainty.
In Scotland, we are also taking a range of actions to bring empty homes back into use. There are many empty homes that could provide people with good housing and a secure future. Since 2010, the Scottish empty homes partnership has been instrumental in bringing more than 2,800 empty homes back into use, each and every one of them hugely valued both by communities that do not want empty homes and by those now living in them—the homes are no longer going to waste. Empty homes partnership funding is to double from £212,500 in 2018 to over £400,000 in 2021 to bring those empty homes back into productive use and to make homes for people who need them very much.
We have also created an ending homelessness together fund of £50 million over the five years from 2018-19 to support the prevention of homelessness and to drive sustainable change. Scotland has some of the world’s strongest rights for homeless people, but we are not resting on our laurels.
We are doing much more to tackle rough sleeping. We have a national objective to eradicate rough sleeping, and we have established a homelessness and rough sleeping action group chaired by Jon Sparkes, the chief executive of Crisis. The group has developed 70 recommendations on the actions required to end rough sleeping and transform the use of temporary accommodation. The Scottish Government accepted those recommendations and are now taking them forward. Jon Sparkes has said he is
“very pleased the Scottish Government has given in principle support to all of the recommendations on ending rough sleeping from the Homelessness & Rough Sleeping Action Group. The members of the action group have gone above and beyond to dedicate themselves to bringing forward the right recommendations that will have the biggest impact on the way people sleeping rough can access and receive services.”
In that light, we have been piloting Housing First. This is hugely important, and it will have a huge impact on reducing homelessness.
The Under-Secretary of State for Housing, Communities and Local Government, the hon. Member for South Derbyshire (Mrs Wheeler), has been to Scotland to hear about what is happening, and she has noted that she is pleased with what Scotland is doing—she said so at Question Time, so I assume she still is.
A recent documentary visited various cities, and the connectedness of services in Scotland—different services speaking to one another and taking action—was well commended, but we do not rest on our laurels. When there are still people sleeping on the streets of Glasgow, we must do more to ensure rough sleeping is ended, and ended soon. The Scottish Government’s strong direction of travel is key. We need to prioritise that, but it takes a lot more than warm words and things said in statements and manifesto pledges to make that happen.
Before coming here, I was reflecting on the number of housing developments in my constituency in the past few years. Off the top of my head, new houses have been built for social rent in the Gorbals, Pollokshields, Govanhill, the Toryglen transformational regeneration area, Oatlands, Calton, Bridgeton, Dalmarnock, the city centre, Anderston, Kinning Park and the Laurieston transformational regeneration area. None of them happened by accident. They happened because of the work of community-based housing associations, which strive to develop, build more and house their local communities. That comes on the back of the Scottish Government supporting them in everything they do and ending the right to buy to ensure that their investment is sound and can continue. The UK Government would do well to learn from what has happened on housing in Scotland, because our record is a good one.
First, the issue of how the five-year land supply is calculated affects communities across the country. In planning applications and appeals, we see developers trying to pick apart the declared pipelines in councils’ local plans. To be frank, highly paid consultants and advisers are producing lengthy reports for applications and appeals, and the public struggle to contest them because they do not have the resources. I have seen many cases in my constituency of developers trying to pick apart the council’s supply pipeline and go against local community planning and the council’s planning objectives. That is not good enough.
We all recognise that the delivery of land and housing can sometimes be beyond councils’ framework and mandate. I urge the Government to look again at how much weight is applied to the five-year supply. We must ensure that councils and communities have more protection. Developers think that by ripping apart five-year supply calculations, they can develop almost anywhere. That is a major issue across the board.
I am a great believer in neighbourhood plans and I encourage all my parishes to develop them. We want much more support for community-based planning and neighbourhood plans, particularly with parish councils. I urge the Minister and his team to give more resource to parishes and communities so we can ensure that they are protected from developers, who sometimes come along wanting to rip up the five-year land supply and to challenge councils and communities. Importantly, we must ensure that there are resources and that place-shaping can happen. The Minister has already spoken about that.
My final point is about the ways in which we can support housing and development. The Minister spoke about garden settlements. We have had many conversations and I urge him to ask the Secretary of State to reply to me—we have some outstanding correspondence. There is a huge opportunity for all Departments to work together to ensure we have integrated planning. That means that we have the right infrastructure, including road and rail, health, schools, and public amenities and services. That is a great programme that our Government could take forward. I urge the Minister and his colleagues across Government to work in an integrated way so we can drive the right kind of local community outcomes on housing and planning.
The Minister should not sit back and say, “I sit in my office and I cannot tell councils what to do.” It is about not just borrowing the money but being able to fund the borrowing. The Government will have to look at more revenue support for councils and housing associations to get those numbers up. Of course, there will have to be developments such as modern methods of construction, which the Select Committee is examining at present but, in the end, revenue funding is crucial.
I also say to the Minister, in terms of the HRA, the funding does not only go to build new homes; it is vital to make sure that existing homes are properly maintained. In 1997, when the Labour Government came in, there was a £19 billion backlog of disrepair in the social housing sector, which the decent homes programme had to deal with. So councils have that responsibility. They will need extra revenue support to build the homes.
I shall make a couple of points about the private rented sector. There are now more people living in the private rented sector than in the social housing sector. Hopefully, we might reverse that in future by building more social housing. I say three things to the Minister. First, let us have some more tough powers to deal with bad landlords. The Select Committee recommended, in extremis, confiscating the properties of landlords who put the health and safety of tenants at risk. Let us go for that. Secondly, let us give councils more freedom: selective licensing can work. If councils want to do it in their area, they should be free to do so. The Minister reviewing the whole process of selective licensing––I hope that is where we get to––but, in the end, selective licensing works where councils can go into properties proactively and seek out the problems and the problem landlords, and deal with them. Thirdly, the difficulty for councils is that selective licensing needs resources. Since 2010, the funding for private sector housing teams in councils has been cut by 60%, and it is not possible to deal with bad landlords proactively, constructively and properly without more money.
I say to the Minister, therefore, that there is a major financial challenge, both in terms of building social housing and of properly dealing with the problems in the private rented sector.
We need to build more truly affordable housing, both to rent and to buy. We cannot simply do what Labour would do—put more pressure on an overburdened taxpayer. We must do it in different ways. The best way to do it is to cut out the middlemen or middlewomen; I speak as a middleman who has been involved in the property market for 30 years. There are a couple of simple ways we could do that that are simply too good to miss. The Housing Minister is familiar with some of my ideas on this, particularly on delivering more affordable homes to purchase through the section 106 system.
Every year, we deliver around 25,000 affordable homes through section 106 requirements. They are typically sold to housing associations at 50% of market value. The housing association then rents them out at 80% of market value and puts them on their balance sheet at 100% of market value; nice work if you can get it. Why, instead of doing that, do we not simply sell those properties—or half those properties—to first-time buyers on low incomes, at 50% of market value? That would be in perpetuity and those first-time buyers could pass the properties on to the next person. There is no cost to the taxpayer whatsoever. It is good for them. It is good for the developers, who are dealing direct with their customers. The only people who probably will not be too keen on it are the housing associations, but that is not who we are here for; we are here for real people.
The second way to cut out the middlemen is through the pension system. Currently, residential property cannot be put in a pension. If we change that rule, lots of empty or unconverted space above shops could be changed overnight. We should allow those properties to be put in a pension, as long as—this would be the catch, but it is a fair one—those properties were made available at a social rent. We would widen the pension system to allow people to buy property to put it into a pension, as long as they let it out at a social rent. That would be good for the owner as a tax break and great for the tenant, and great for the taxpayer because the burden of housing benefit is reduced. Everyone wins, apart from the middleman.
The homeless people I see on the streets of Birmingham often live in medieval conditions. I have met people in subways in their hospital gowns and people with rat bites fighting and fearing sepsis, and yet the homeless people in Britain’s second city, in the sixth richest economy on earth, face a health system that is rated inadequate and a mental health service in which the caseload is rising four times faster than funding, and where only 1% of the money promised to the West Midlands combined authority for housing has actually been paid over to build new homes.
That roll of names is a roll call of shame. I hope that in our city, if not elsewhere, we build a permanent memorial, so that we are confronted every day with the names of those who died, the names of those whom we have collectively failed. The best memorial of all, however, would be to end this scandal for good and to sweep the disgrace of homelessness into the history books once more.
As for affordability, for the bottom quartile of homes—that is, the ones that should be most affordable—the average price is more than £500,000 in my constituency. Average monthly rent is over £2,000, and the ratio between house prices and earnings is over 20:1. And yet, because of the way in which the Government implement policies like the benefits cap, the reality is that people simply cannot afford to live in areas where they, their families and their communities have lived for decades. The only remedy is the sort of radical programme that my right hon. Friend the shadow Housing Secretary has set out.
It is possible to make a difference locally. We do not have local elections in my area this year, but for those who do, I will just outline the difference between having a Labour council and a Conservative one. My council was Conservative until 2014. In its last four years, it sold off more than 300 empty council properties because they had become vacant. That included three and four-bedroomed houses, and many two-bedroomed houses and flats. These properties were sold off on the open market, putting them out of reach of families forever and a day. Cynically, that council then took a housing waiting list of over 8,000 families and reduced it to over 1,000, simply by knocking families off the list. In many cases, the council did not even have the courtesy to tell them. That degree of cynicism and that type of social engineering has gone on not just in my borough, but in many boroughs across London and elsewhere—and it is a moral crime, not just bad policy.
I contrast that situation with the position of my council under Labour. This issue is one of the reasons that Labour was elected in Hammersmith and Fulham, and was then re-elected with a landslide last year. Labour-run Hammersmith and Fulham Council stated this month that it
“has recently secured more than 1,600 genuinely affordable homes in the borough at zero cost to taxpayers after negotiating a series of deals with developers.”
That is the difference that Labour makes in local government, and I believe that in national Government—with this sort of programme of housebuilding, and the crackdown on poor landlords and poor conditions—we can actually tackle this crisis. It is not just that this Government are complacent; as my right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne) said, they simply do not care to solve the housing crisis in this country.
“I feel stuck in a loop”,
and said that they felt that they were “being held hostage”. Others said:
“I’ll have nothing to leave for my children”.
One of the most common situations I have heard about is when homeowners wish to move home in order to downsize before retirement, but no company will offer a mortgage on the property because the lease is not long enough. Those people either have to find someone to buy the property cash in hand, or extend the lease. But extending the lease costs at least £10,000 and is frankly not an option for many of my constituents, who want to use that money to live on for the rest of their retirement.
The Minister has stated many times that at least there is choice in the property market for those who may not wish to buy freehold, but the evidence collected by the Select Committee and the heartfelt responses I have received suggest that this so-called choice is anything but. It is not a choice if there is a lack of information about what leasehold means, and 36% of the responses to my survey indicated that people were unaware of what leasehold meant at the point of sale. It is not a choice when homebuyers are not told that the property is leasehold until the very day that they are signing for their new home, which is what three of my constituents told me had happened to them. It was also not a choice for 13 of my constituents who told me that, after saving up and wishing to buy the freehold, and paying numerous administrative fees—in the hundreds of pounds—the freeholder simply said that they were not willing to sell at that point. It is not a choice for those families.
Another injustice is that of leases being sold by the freeholder to third-party companies, without any consultation, correspondence or notice given to the leaseholder. Where is the accountability? My constituents are telling me of their increased anxiety at the fact that their property does not “feel like their own”, and saying that
“outside people control their destiny”.
Does the Minister agree that this is not a healthy situation for any family to go through? This is the home that people have worked for, saved for and are paying for. I hope that she understands that this is not just a case of a few people feeling a little disgruntled at the system. I hope that she will really take into consideration the well-researched Select Committee recommendations, and specifically consider an investigation into the widespread mis-selling of leases.
Because of its affordability and its green footprint, I think the future should be modular. In my constituency, I have had the pleasure of watching modular social housing coming up just outside my office. They are some of the most energy-efficient homes in the country. Not only are they providing people with a beautiful place to live, but they are helping them save money.
As I am sure the Minister is aware, Hull is the caravan building capital of the country. We have fantastic skills in my constituency, with an industrial base and knowledge that have developed over generations. I urge the Minister to look seriously at the businesses in Hull and to give them a secure funding stream and stability, so that these modular building companies have the capacity to develop and invest. These are uncertain times and there is uncertainty for business investment, but having a promise from the Government that they see modular homes as the way forward and are willing to invest in innovation would give those businesses the security they need.
Finally, the Minister or anyone else is always welcome to come and see the beautiful modular social homes in my constituency, because I really think we need to look at them again if we are serious about protecting our planet.
This Government are failing, as the coalition did before them, by cutting the subsidy for new social housing, redefining affordable housing to make a mockery of the word “affordable”, penalising residents with the bedroom tax, and lining the pockets of shoddy developers such as Persimmon and unscrupulous private sector landlords. The Government are also presiding over the disastrous relaxation of the rules on permitted development rights. In the time left available to me, it is this policy that I will focus on.
The expansion of permitted development rights is delivering poor quality homes in former office buildings up and down the country, resulting in children playing in industrial estate car parks, poor fire safety standards, and homes that are not homes but essentially hotels by the back door that are let out through Airbnb and other platforms for short-term lets. Most shockingly, having introduced this major planning reform, the Government have undertaken no evaluation of its impact and propose further expansions that would enable developers to demolish and rebuild office buildings without planning permission.
This policy is removing quality control and democratic accountability from housing delivery. Councils and communities have no say, and the developers who profit from these developments make no contribution to local community needs or the delivery of genuinely affordable housing. In many areas, the expansion of permitted development rights is delivering the slums of tomorrow and the fire safety horrors of tomorrow. This is happening on the Minister’s watch.
I therefore urge the Minister to do one small practical thing: to halt the expansion of permitted development rights while a full evaluation of its impact is undertaken, and to restore housing delivery to the full democratic control of local authority planning departments, which can decide where their communities need new housing, say where it should be built, and secure affordable housing contributions and funding for community facilities, so that we build not the slums of tomorrow but the high-quality, sustainable, affordable communities that this country so desperately needs.
On a positive note, my local council, Chester West and Cheshire Council, is now building council housing, the first for nearly 40 years. I am delighted about that, but we still have less council housing than we had a couple of years ago, due to a huge increase in right-to-buy applications. Who can blame people for wanting to take advantage of 70% discounts? The policy, however, is short-term in the extreme. It is, of course, the Government’s stated aim that every council property sold under the right to buy should be replaced, but the reality is that, rather than one-for-one replacements, it is more like one new property for every four sold. The situation is clearly unsustainable.
There needs to be a wholesale change in the culture of and approach taken by developers. There seems to be general agreement across the political spectrum that we need to build more homes, but those good intentions are at risk of failing because there is an over-reliance on the market to deliver those aims. To date, the private sector has shown itself incapable of working in a way that chimes with the needs of the country. To put it mildly, I remain to be persuaded about the altruism of the house building industry; one need only look at the £100 million Persimmon bonus to see where its priorities lie. Plc house builders that help themselves to more than £8 billion of taxpayers’ money through the Help to Buy scheme show their true colours when they rip off their own customers through “fleecehold”. They have a lot to answer for.
The reliance on a small group of developers has been a very poor deal for the taxpayer, and that is the backdrop against which the leasehold scandal emerged. I look forward to the Government’s response to the excellent report by the Select Committee on Housing, Communities and Local Government. I hope concrete action will be taken soon.
Many in the industry have signed a pledge to move away from onerous leases, but to be frank I think that has happened only because there has been so much bad publicity against the people guilty of this wholesale scam over the years. The pledge also seems hollow to those of my constituents who have been notified in the past couple of weeks that their freehold has changed hands again, from one opaque company based in Guernsey to another opaque company based in Guernsey. The industry pledge intends to make the whole process
“cheaper, easier and more transparent”,
but actions such as those in my constituency will make it more expensive, more difficult and less transparent for people to buy out their freehold. The only way these rapacious people will be brought to order is through changes to the law, and the sooner the Government get on to that, the better.
The biggest developers in the country have not just ripped off millions of homeowners; they have ripped off all of us. We should not rely on them to solve the crisis we face. The housing market is broken and needs radical intervention, and it certainly needs a Labour Government.
After years of under-investment in social house building, work is now under way to deliver 50,000 affordable homes in Scotland by 2021. People around the east end can now see the tangible results of that investment—whether on Cranhill’s Bellrock Street, Easterhouse’s Auchinlea Road or Shettleston’s Wellshot Road—because work is under way to invest in new housing, which will go some way towards meeting the demand we face.
That 50,000 target, though, should only be a starting point. I have been very clear with the Housing Minister, Kevin Stewart, that we need to keep up our investment in new build social housing. I was encouraged to hear him say at a recent Tollcross Housing Association event that, for so long as associations can keep up the house building, he will be happy to sign the cheques.
The reality, however, is that we will quickly run out of space to build those new properties, which is why we must also protect and preserve our existing tenement stock housing. As the MP for Glasgow East, I am acutely aware that about one third of my housing stock is made of tenement properties. A quick drive along Tollcross Road, Baillieston Main Street or Westmuir Street will demonstrate that. The fact is that Glasgow’s tenements have become a rich part of the city’s architectural heritage, and my local housing associations genuinely understand the importance of maintaining them to meet the demands of their waiting lists. They want to invest in and preserve those buildings for generations to come, but that comes at great cost and there is a role for the British Government to assist with that.
This morning I suggested to the Chancellor of the Exchequer that VAT could be reduced on tenement repair work. Currently, an association wishing to undertake costly works to preserve tenement properties will have a 20% VAT charge slapped on to the invoice. If the Chancellor was willing to look sympathetically at a reduction in VAT for that type of work, it would allow associations to invest in tenement stock and simultaneously provide a fiscal stimulus for the construction industry.
Just last Monday, the council failed again when it signed off a 72 acre brownfield site for over 2,000 luxury apartments that our city does not need. I would juxtapose that with the 11 homeless people who lost their lives in our city last year, and with the people I see in my surgeries who are living in box bedrooms—whole families are in that situation—with adults and children sleeping on sofas. That is the reality of York, as so many people in housing poverty know. Not only that, but the council has handed over its influence over the future of that site, through a commercial agreement, while contributing £35 million to the site. This must be stopped and reviewed. Residents are rightly angry. They are being driven into deeper housing poverty, while the elite moves in on their space. They are being driven out of their city, and they are being ignored. While people invest in their assets and purchase their commuter and second homes, my local families are cooped up in unsuitable, cramped and damp housing. York, which calls itself a human rights city, is the most inequitable city outside London, and this latest development will simply make it worse.
The Lib Dem-Tory council’s plan just supports corporate greed over local need, and it must be changed. That will start with a Labour council, which will build the housing that our city desperately needs. It will put right the local economy by ensuring that we have the skills our city needs. We need 500 people in the NHS, and there are also those needed in the care workforce, but they cannot afford to live in our city. We will relive the dream that Joseph Rowntree planted in our city as he built the houses fit for heroes and the housing developments that set the agenda for the garden villages and sustainable green homes that will ensure people across our city can live in and enjoy our city. Labour will make the difference in York: it is time for change.
The Government are not just failing to address the housing crisis; they are actively making it worse. I do not know whether it is incompetence, mismanagement, complacency or deliberate policy, but this Government are wilfully exacerbating the housing crisis. Whether it is homelessness, private renting, leasehold, home ownership or fire safety, the story is always the same: things are getting worse, not better. The problems can be traced to bad Government policies. In government, Labour managed to successfully tackle these issues. As a Government in waiting, Labour is the party with the solutions to these problems.
Things are getting worse, not better. Rough sleeping has doubled. We heard from my right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne) that rough sleeping has gone up by 333% and that someone is dying every fortnight. Only 6,500 homes for social rent were built last year. Home ownership is supposed to be the thing the Conservative party cares about, but nearly 1 million young people are unable to access it. My hon. Friend the Member for Washington and Sunderland West (Mrs Hodgson) was absolutely right to talk about the overwhelming sense of injustice felt by leaseholders.
My hon. Friend the Member for Dulwich and West Norwood (Helen Hayes) talked eloquently about the plight of permitted development—something the Government want to increase. The problems can be traced right back to the Government. Ministers have stretched the term “affordable housing” to breaking point, to include homes that are let at up to 80% of market rents. We are building the wrong homes, as my hon. Friend the Member for York Central (Rachael Maskell) said.
The Government have repeatedly ignored fire safety advice that sprinklers are essential. They have also ignored advice following the Lakanal House and Grenfell Tower fires and refused to intervene in other blocks with aluminium composite material cladding. We have 40,000 people still trapped in deadly buildings. We have also lost more than 170,000 affordable council homes through poorly designed policies.
In government, Labour managed to successfully tackle these issues. As a Government in waiting, Labour is the party with the answers to solve these problems and the ability to deliver the change we need. It is the Government’s job to solve the housing crisis, and it is the Government’s shame that they have failed. This country has a right to expect better, which it will get under a Labour Government.
The important thing to me is talking about community land trusts, as my hon. Friend the Member for Truro and Falmouth (Sarah Newton) did, and sorting out what we are going to do in the private rented sector, with the changes to electrical standards and carbon monoxide—
I am appalled at the way in which issues are turned into political footballs. There is no stronger Department in trying to deal with such issues one by one, in a logical way, so that nobody ends up sleeping rough or dying on our streets. The important thing is that the Government totally get this. We are spending an awful lot of money to change things around, because that is what is important. People out there realise that changes are being made in the private rented sector, changes are being made for tenants, and changes are being made to professionalise the professional services—the letting agents and managing agents. Leasehold changes are on the way. There are all sorts of things in our country that are wrong; they need to change, and it is this Government who are going to change them.
I am delighted that our ministerial team is on the case, looking at how many houses we need to build in the year; looking at giving councils the freedoms to build more council houses; encouraging social housing to grow; encouraging first-time buyers; encouraging veterans to get on the housing ladder once they leave the armed forces; making sure that veterans are not sleeping rough and that they get the help they need; and looking after people in Scotland, where there are innovative ideas—I looked at rough sleeping issues and Housing First in Glasgow. All these ideas are very important to the Government; no one should be left under any illusion about the fact that only the Government are making the changes that will get these things right.
People’s lives are at risk. People’s happiness is at risk. We want to make sure that fairness is sorted out for the future. I pay huge tribute to the teams of civil servants that are going round the country making sure that people get the help they need. In Medway and Cornwall, there has been a 40% reduction in rough sleepers. These are huge changes, and I am very proud of what the Government are doing.
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