Social Housing and Regeneration: Earl’s Court and West Kensington

(Limited Text - Ministerial Extracts only)

Tuesday 20th February 2018 Westminster Hall

[The Minister for Housing (Dominic Raab)]

It is a privilege to serve under your chairmanship, Mr Owen. As is the custom, I congratulate the hon. Member for Hammersmith (Andy Slaughter) on securing this debate. We have sparred many times on justice matters, and I look forward to an equally rigorous friendship on housing issues. He takes a close interest in those issues and I know how tenaciously he makes his case for his constituents and on matters of principle. I pay tribute to the residents who have come to listen to him and to hear the different views on this important matter.

I take note of all the hon. Gentleman’s points regarding the merits or otherwise of the development of the Earl’s Court and West Kensington area. He will know that the Secretary of State for Housing, Communities and Local Government has been asked to make a decision on two specific matters submitted for his determination. The determination requests are currently being considered in the Department. The hon. Gentleman made some specific requests that I want to address clearly. As a lawyer and an assiduous local MP, he will know that that process precludes me, for legal and propriety reasons, from commenting specifically on the regeneration proposals for the Earl’s Court and Kensington area. As he knows, to do so would prejudice the very decision making he is calling for. Notwithstanding those limits, in his usual deft way he has highlighted his concerns over the Earl’s Court project while also raising—the shadow Minister did this, too—wider issues relating to social housing and the place for regeneration within that. I will say as much as I conceivably can.

Members will know that social housing is a priority for this Government. Last year we announced a review to examine the issues affecting social housing. To help inform the Green Paper we have spoken directly with 1,000 people who live in social housing, as well as with more than 7,000 people through online surveys. Notwithstanding the fact I have only been in this post for a short time, I have been to two workshops this year in Basingstoke and for Lancaster West residents in north Kensington. I hope that reassures the hon. Member for Kensington (Emma Dent Coad). Those workshops and the wider feedback have made a profound impression on me. We have an important opportunity to look afresh at the sector. A lot of the wider points that Members have made will feed into, touch on and resonate with some of the issues we will be grappling with. We will publish the Green Paper this year for consultation, and I look forward to engaging with all Members at that point on those wider policy issues as we strive to get the best out of the social housing sector.

More broadly, the Government are increasing the supply of homes and implementing policies that help people to access housing, whether they are renting or looking to buy in whichever sector, private or social. In 2016-17, which is the last year for which we have full figures, nearly 220,000 net additional homes were delivered. There were more than 41,000 affordable housing completions, which was up 27% on the previous year. We saw nearly 145,000 completions on the Help to Buy equity loan scheme by the end of September 2017.

Building affordable homes is a top priority for this Government. Since 2010, we have delivered more than 357,000 new affordable homes. In relation to the specific issues raised by the hon. Member for Hammersmith, about one quarter of those homes have been delivered in London. The Prime Minister recently announced an additional £2 billion of funding for affordable housing. That will increase the affordable homes programme budget to more than £9 billion. The new funding will support councils and housing associations to build more affordable homes where they are needed most: where families are struggling with rental costs and some may be at risk of homelessness.

The shadow Minister raised the issue of affordable housing in the wider context, and the hon. Member for Hammersmith made a number of political points. I hope both will forgive me for pointing out a few basic undeniable facts about affordable homes in Hammersmith and Fulham. Affordable home delivery in Hammersmith and Fulham in 2016-17 was 28% of the level of the last year of the previous Conservative administration. In the same year, Hammersmith and Fulham delivered 15% of the affordable housing that Wandsworth delivered. I note that as a matter of balance with the account of the borough given today by Members. It is worth putting it in some perspective. Nevertheless, across the political aisles and across the country—the issue is most acute in relation to London, where there is a serious housing shortage and high demand—I think we all are clear about our ambition and restlessness to go much further.

At the autumn statement in 2016, we agreed a record-breaking £3.15 billion package of funding for affordable housing in London to deliver at least 90,000 new affordable homes by March 2021. In addition, London will also get a share of the extra £3.4 billion investment in the affordable homes programme announced recently. Since 2010, we have delivered more than 357,000 new affordable homes, and about one quarter of them have been in the capital.

As London struggles to build enough homes to keep pace with demand, attention is naturally turning to the broader options regarding the regeneration of housing estates. Estate regeneration done the right way can create new improved homes and communities for the people who live there. It can increase the supply and quality of homes through densification and design. Those two can be viewed as a win-win, rather than a zero-sum game. Savills has estimated that in London there is capacity to provide more than 54,000 additional homes using a street-based model. The Government published a new estate regeneration national strategy in December 2016, which supports local partners to improve how they do estate regeneration in partnership with residents to drive better quality housing, local growth and wider opportunities for the residents of local communities.

To give some examples of good practice, in the north Solihull area of Birmingham, a focus on education with the local community infrastructure amenities has led to an increase in educational standards. The regeneration set out to change the lives of 40,000 people by building new homes of mixed tenure, developing new state-of-the-art schools and creating new village centres with improved health and enterprise facilities. The best estate regeneration schemes make the community central to the project.

The Spirit Quarters redevelopment in Coventry is a resident-led scheme. They have set up three social enterprises: a community café, a neighbourhood centre and a business centre. In addition to the physical transformation, there have been improvements in many social and economic outcomes. Overall, reported crime in the area is down by almost 20% and the number of residents claiming jobseeker’s allowance has reduced by 44%. The percentage of students leaving school with five or more GCSEs at grades A* to C has increased from 5% to 33%. Those are all incredibly positive outcomes.

The issue of tenant participation has been raised by hon. Members. Residents are clearly key partners in any regeneration scheme. They should have opportunities to participate from the start, developing the vision, design, partner procurement and delivery. Working with residents can help to build trust and consensus on regeneration. I have said this numerous times since taking on this portfolio: we need to build more homes, but we also need to build up stronger communities, too,

It is particularly important that residents have the opportunity to express their views on the final options for regeneration, whether as individuals or through the democratic process more generally. The way that is done should be agreed locally. That is the template for the national policy that we put out. The regeneration should have the support of a majority of the residents whose lives will be directly affected. At the Wornington Green estate in north Kensington, support for the regeneration was helped by early and ongoing conversations with residents. It included a resident steering group, regular outreach, independent advice and advocacy, regular public meetings, and training for residents.

It is important to set out a clear set of commitments about how the regeneration process will work and what housing options are available. Providing security and confidence through a charter early on is one option for helping to establish trust and foster positive discussions about the scheme. All existing council and housing association tenants, whether on a lifetime or fixed-term tenancy, should have the option to return to the estate. It is a legal requirement for leaseholders to be compensated if their home is demolished. However, we expect that schemes will go further and offer leaseholders a package that enables them to stay on the estate or at least close by.

It is important that home purchase options are made available. Residents should be given the opportunity to change tenure if they so wish. Regeneration can help first-time buyers get a foot on the housing ladder and provide opportunities for tenants to own their homes. Shared ownership has an important role to play in helping those who aspire to home ownership but cannot afford to buy. For example, residents of the Rayners Lane estate in Harrow have been guaranteed the right to remain in affordable housing on the estate, with the extra 260-plus homes creating a vibrant mixed-tenure community through the introduction of outright sale and shared ownership. All of that requires strong leadership from local authorities.

Our strategy highlights the importance of devolution and the leadership role of local authorities working with their communities to support estate regeneration. We have seen good examples of that type of strategic leadership and co-operation. Notwithstanding the criticisms that have been made, I hope we will not throw the baby out with the bathwater and lose sight of the good examples and the positives.

[Andy Slaughter]

Will the hon. Gentleman give way?

[Dominic Raab]

I will make a little more progress and the hon. Gentleman can comment at the end.

Combined authorities in the Tees valley, the west midlands and Greater Manchester are now tackling housing and regeneration alongside transport, infrastructure and skills as they take a more holistic approach. Strategic regeneration plans can act as the catalyst for delivering place-based services and infrastructure through, for example, new community hubs and schools that service the areas being regenerated.

Opposition Members have sometimes accused me of focusing too much on London and the capital. However, the regeneration of Anfield in north Liverpool has focused not only on housing, but on the place as a whole, including the commercial offer and the wider infrastructure. Your Housing association, Liverpool football club and Liverpool City Council created a partnership that enabled them to consider the needs of the community across the whole Anfield area. That was important and is a good example of the strong joint partnership and long-term community engagement that has transformed Anfield into a place where people want to live.

[Andy Slaughter]

I appreciate the tone of the Minister’s speech and what he said about not giving a view on the regeneration scheme. However, may I press him a little on two points? First, if he cannot say what his position is, can he indicate—this is not unreasonable after two years—when there is likely to be a decision on the right to transfer? Secondly, there are many regeneration schemes, but so many of them involve a reduction in the number of social rented homes. When we have a new deal for Earl’s Court and West Kensington, will he agree to work with the other players there to ensure that we preserve and enhance the existing community?

[Dominic Raab]

The hon. Gentleman has made his point in a constructive and reasonable way. I appreciate his frustration on the time issue. After the length of time and all the issues that have been churned over, no one will say this has been done in a rushed way, but we need to take the time required to get the decision right. I cannot give him a specific timeframe, but we will move as expeditiously as we can. I certainly will take back to the Department the point that he has made.

On the wider question, we have an opportunity through the social housing Green Paper. We will collate the extraordinarily wide range of feedback we have had. We will put that into the proposals through a Green Paper for consultation. I look forward to working with the hon. Gentleman and hearing from him at that stage.

In conclusion, I want to make sure this debate does not lose sight of the fact that local regeneration can offer enormous scope to build more homes and at the same time build up our local communities, which, whatever side of the political argument we sit on, is the shared objective. It requires ambition from local authorities, which many are providing. It also requires that residents have a strong voice in the process to shape the local plan, and support from central Government, which London and many other communities are receiving, not least with the recent homes infrastructure funding that has been made available. It also requires strong leadership to carry local communities with us.