Baroness Bray of Coln
Main Page: Baroness Bray of Coln (Conservative - Life peer)
Mr Offord
I have given way to the hon. Gentleman once, so I am going to continue with my speech.
My experience has been very good. Large elements of the constituency certainly need development—I am thinking of the West Hendon estate and Perryfields, as well as areas of Burnt Oak and, significantly, the Grahame Park estate, of which some hon. Members might be aware. It was the site of the old RAF Hendon base and it is a location that has now changed to allow development from the private sector. That has been a great success and many of my friends live in that area, which is proving to be a real boon to the local economy.
I was pleased a couple of weeks ago to attend the first phase of Choices for Grahame Park, which is a separate phase of development in Colindale, with the mayor of Barnet, Councillor Anthony Finn. When that is completed, it will form a central part of the Colindale area action plan and will create a new community in my constituency, providing greater transport links on the tube, greater community health facilities and a radical rebuilding programme that will transform the estate, which has been a blight for many years. This will happen in the next 15 years and we expect to see about 3,000 new homes as part of this new heart of my constituency.
The regeneration of the area will also provide retail facilities and 25% of the existing homes are built in a traditional layout, instead of like the cardboard boxes and rabbit hutches that some hon. Members have described. In total, we will demolish 1,314 outdated and overused homes and replace them with 2,977 brand-new, purpose-built family homes that will revolutionise life in the Grahame Park area and in my constituency as a whole.
Angie Bray (Ealing Central and Acton) (Con)
Does my hon. Friend agree that too often the special circumstances in London seem to get missed out in policy making? For example, I think we all want to see more family-sized homes built in the affordable sector rather than the small boxes that typified the affordable houses built under the previous Mayor, Ken Livingstone. Many people got very agitated about that because London wants family-sized homes. Here is the problem: a couple of London housing associations came to me and said that they would like to build more family-sized homes but in order to be able to afford to do that under the current circumstances they will have to charge 80% of market value, which many of their tenants will find difficult to afford. Is it not very important that—
Madam Deputy Speaker (Dawn Primarolo)
Order. All afternoon, we have been drifting into longer and longer interventions. Interventions are supposed to be short, not an excuse for a speech, and the hon. Lady has now finished.
Angie Bray (Ealing Central and Acton) (Con)
Thank you, Madam Deputy Speaker. Having rightly been chastised by you for allowing my intervention to run a little long, I thought that I would expand it into a very brief contribution in the form of a speech.
I want to reiterate the point that I was trying to raise with my hon. Friend the Member for Hendon (Mr Offord). In a number of areas, London has a particular set of circumstances that are not shared by the rest of the country. I sometimes feel that London does not get fully considered in the general policy making of Governments of all persuasions. That is why it is so important that we London MPs should sometimes get together and have an opportunity to raise some of the specific issues affecting our constituencies. What we are debating is a particularly important example.
I want to draw the Minister’s attention to something brought to my attention by representatives of a couple of London housing associations, who came to see me to express concerns. They are very keen to build more family-sized houses, which is what we all want. As I said before, it is fine to have large numbers of the sort of very small affordable flats that the previous Mayor of London was famous for building, but there are not the family-sized homes that we all want.
The issue is that the housing associations would very much like to build family-sized homes, but to be able to—in London, particularly—they will probably have to go to the 80% of market value to generate the kind of funds that will make such building possible. There is concern that they may find it difficult to charge that rate to a number of their tenants, but without that 80% they will find it difficult to deliver the kind of homes that we all want so badly. A bit of a problem has been thrown up through the particular circumstances that pertain in London.
I hope that the Government, particularly the Homes and Communities Agency, will bear those circumstances in mind when making the assessments. I am delighted that the HCA is going to be taken into City Hall, because that will make it a great deal more sensitive to the needs of Londoners. It is important that the gap should be considered properly to ensure that there are family-sized homes in the affordable sector. They need to be built, because they are such an important part of building our communities.
Stephen Pound
I am grateful to the hon. Lady, my neighbour, for giving way. She says that family-sized homes are the homes that “we all want”. May I urge her to accept the fact that not everybody wants to live in a family home? A great many people with disabilities, or widows, widowers or people on their own quite enjoy the small properties that she rather put down and implied were some creation of Ken Livingstone that nobody wanted to live in. Actually, a great many people do.
Angie Bray
I thank the hon. Gentleman for that important contribution. Of course it is true that not everybody wants to live in family-sized homes, but the problem in the past was that small properties were the only affordable housing on offer. A large number of families in our communities need affordable houses, and one or two-bedroom, even three-bedroom, flats simply do not accommodate them properly. It would also be nice to think that families might have a bit of green space outside and not always be housed in large blocks of flats.
Of course there has to be a balance, but in the past family-sized houses were neglected; it was too easy to tick boxes, as the previous Mayor did, to say, “I’ve delivered X affordable homes,” but they were flats rather than the family-sized houses that many of us think of when we hear the word “homes”. My request to the Minister is that he ensures the Government are fully aware that London’s special circumstances make it important to recognise the particular problems of housing associations when they are providing housing in areas where market rents are high.
Heidi Alexander
It is a complete trap. I look forward to the Minister’s response to that.
I used some figures to demonstrate how much more people would have to pay out were they living in a family-sized property and being charged 80% of market rates. What concern me more are the proposals for universal credit in this context and what the £26,000 will mean for people in London who are paying out such amounts of money in their housing costs.
If we assume that the universal credit means that a family in London will get no more than £500 a week and that they are paying £240 a week for a four-bedroom flat at 80% of market rent in Lewisham, they will be left with £260 a week for all their other living costs. I presume that that £260 will cover their council tax benefit as well as payments for their gas, electricity and phone. We must also remember that if those people want to move into work, the costs of child care in the capital are much higher than elsewhere in the country and so are public transport costs. I therefore take this opportunity to ask the Minister to have conversations with his colleagues about how realistic the £26,000 universal credit cap is in a London context.
I draw a distinction between London and the situation elsewhere in the country. I heard my hon. Friend the Member for Hayes and Harlington (John McDonnell) talk about his upbringing. My dad is an electrician. He has a nice house now. If he was an electrician in London, there is no way that he would live in the sort of house that he lives in now. He would tell me that £26,000 is a lot of money. His annual income has been about that figure for as long as I can remember. So I have some sympathy with what the Government are trying to do with welfare reform, but I ask them to consider carefully what that means for people in London. I have spoken a lot about figures, and they show how dreadfully difficult that reform could be for people who live in London on low incomes.
If the Government do not think that families on low incomes should be able to live in London, they should come clean and say so, because that will be the result of their proposals and policies. We have talked about the impact of housing benefit changes and the potential clearance from London of people who simply cannot afford to live in their private rented properties. They will have to move either to the outskirts of London or elsewhere.
Personally, I genuinely think that we must ensure that those people—my hon. Friend the Member for Eltham (Clive Efford) talked about them—who drive the lorries to clear our roads and who clean our offices and work in our shops can live close to their places of work. It is right to do that. It makes absolutely no sense for people to have to rely on the transport system, and it makes no sense to people’s lives when they have caring responsibilities and need to pick up their children from school. It is right that we have genuinely mixed communities of people able to live in central London. The proposals to change the welfare and housing benefit systems run a real danger of making that impossible in future.
Before I move on from the wider changes to welfare reform, I want to pick up another point: the possibility of paying housing benefit directly to tenants so that they can pay it to their landlords. Housing associations in the capital have some concerns about that. I see where the Government are coming from, and it is right to make people realise and think about quite how much it costs to live in a property—encouraging individual responsibility is a good thing—but equally, housing associations tell me that this is the worst time that the Government could consider giving housing benefit and accommodation support benefit, even if incorporated in universal benefit, straight to tenants, because we all know that their household incomes and budgets are coming under extreme pressure.
Housing associations also tell me that if rent arrears increase, they could find it harder to borrow money because their cash flow will be less secure. They are concerned that the banks will re-price their debts when they borrowed the money to build homes. I hope that the Minister will pick up on some of those concerns when he responds.
I want to say a little about planning. I served on the Committee that considered the Localism Bill for a number of weeks, and I have a number of concerns about how the Bill’s proposals will impact on the construction of new affordable homes in London. I think the Chancellor said when he announced his Budget that there would be a presumption in favour of sustainable development, and that is completely at odds with what is said about planning in the Localism Bill. I am not saying that there are not occasions on which people should be able to say, “No, that development is not appropriate.” Indeed, there is a housing development like that in my constituency at the moment in a place called Pitfold close. It is right that local people should have a say about what happens in their neighbourhood, but what the Government propose, as many hon. Members will know, is the creation of neighbourhood forums that will be able to come up with neighbourhood plans. The Minister with responsibility for decentralisation, the Minister of State, Department for Communities and Local Government, the right hon. Member for Tunbridge Wells (Greg Clark), who was on the Bill Committee, seemed to think that those neighbourhood plans would always contain higher housing numbers than the strategic plan for the local area, but my experience of attempts to bring development forward is that local people often want to say no.
I can understand people’s concerns about new homes. If a block of flats going up at the end of the road would cut out the sunlight to someone’s garden, I can understand why they might say, “I am not too happy about that.” I can understand why people might say, “How’s my child going to get into the new school?”; “How am I going to get on to the doctor’s or dentist’s list?”; or “What about all those cars coming down my road, blocking up the road network?” I understand why people are concerned about new development, but if we give too much power in the planning process to very small community groups in these neighbourhood forums, which it is proposed would include only three people, I am not sure that we will get the levels of house building in the capital that we need.
While I am on the subject of planning, there was much debate in the Committee about the 50% target, whereupon the Minister would jump out of his seat and say, “Ah, well, even though you had the 50% target, Ken Livingstone delivered only 36%,” to which I would say that at least we tried. Setting that target and saying that we believe the provision of affordable housing is so important that half of all the new homes built in the capital should be affordable is the right message to send to developers and planning officers. When those planning officers sit down at the table and start their negotiations, they should be saying, “Ideally, we want 50% of new homes to be affordable.” Yes, there will be some situations in which it is impossible to do that because of the commercial realities of the scheme, but it is right to have that target.
Angie Bray
Does the hon. Lady agree that one problem with aggressively setting such a target, as the previous Mayor of London discovered, was that many developers were put off coming into more expensive parts of London altogether because it was not worth their while financially? They tended to be put off rather than coming forward to work out what they might have been able to afford to do.
Heidi Alexander
There will be different situations in different parts of London, but I suggest that the hon. Lady goes back and looks at the figures for the number of home starts in London and the number of new homes that it is predicted will start in the next couple of years because of the policies of the Tory Mayor of London we now have.
I have probably tried Members’ patience by making a longer speech than I had anticipated making. I will end by giving an anecdote about someone whom I met a number of years ago, whose story sticks in my mind as a reason why we have to tackle the housing crisis in London. This picks up on a number of points that have already been made about the impact of poor-quality housing on people’s life chances—how healthy they are, how well they do at school, and how able they are to succeed economically. I was once asked to visit a family in an overcrowded flat in Deptford. When I was there I met a young man of 19 and chatted to him while his mum was doing something before she came to speak to me. I asked him if he was studying or was at school and he said, “I am retaking my GCSEs because I didn’t get the grades I wanted.” Later in the visit, it transpired that he was sleeping in an armchair in the living room. He had no bed to sleep in because the flat was so overcrowded. I thought to myself, how on earth can this young man do well at school? How can he get the GCSEs that he needs to go on to study at university, as he wants?
That image will probably stay with me for the rest of my life. That is why we have to do something to increase the supply of affordable homes in the capital. I am sorry to say that everything that the Government are doing in respect of housing makes it so much less likely that we will see the new homes that we so desperately need.
Mr Slaughter
It seems okay to me.
Mr Johnson is in charge of some of the most controversial and largest developments not just in this country or in Europe but across the world—that is, the opportunity area schemes in Hammersmith and Fulham that will see the demolition of thousands of units of good quality social housing and their replacement with luxury high-rise housing, principally, as my hon. Friend the Member for Eltham (Clive Efford) said, for the benefit of people living abroad who wish to have a pied-à-terre somewhere near central London.
I have spent many days in the public inquiry dealing with this matter and I shall try not to bore Members with the subject for too long. The core strategy documents, which hon. Members will all have in their various boroughs, are interesting reading if one sits down with them. The housing policy in the Hammersmith and Fulham core strategy, which is the planning document that is supposed to last us for 20 years, states:
“The Council would prefer all additional affordable housing to be intermediate housing unless a small proportion of new social rented housing is necessary in order to enable proposals for the regeneration of council or housing association estates”.
That was amended during the public inquiry to add the words “and affordable rented housing”. That is a bit of a give-away that the Minister might want to blush about. In other words, all the time that the definition of affordable housing was social housing, the council wanted none of it, but as soon as it became 80% of market rent, it was happy to include it in its planning documents. That exposes what so-called affordable housing is about.
I am dealing with dozens of those schemes across the constituency, but let me mention just three of them. There are three opportunity areas in the borough. There are 30 of those large London plan schemes—roughly one per borough—but we have three of them in Hammersmith and Fulham, even though it is one of the smallest and most densely populated boroughs. One of them covers Earls Court and West Kensington, where the proposal, apart from knocking down the historic exhibition centres, is to demolish 750 newly modernised, good quality and popular council homes, half of which are terraced or semi-detached three or four-bedroom houses with garages and gardens, so that they can be replaced with 7,500 luxury flats in blocks up to 30 storeys high. That is described as four villages and a high street. I went to the architect’s premises to look at the plans. He had given nicknames to the high street and the other road that will be built—one was Sloane street and the other was South Molton street—and that is where the West Kensington and Gibbs Green estates are at present.
Of those 7,500 homes, the only social rented homes will be for tenants who are displaced because their homes have been demolished who insist on having a new home in the area. I believe that about 250 such homes will be built, and they will be built conveniently just outside my constituency, so that those people will not be able to vote for me anymore.
The White City opportunity area is much larger. It is the area around the BBC site in which at least another 4,000 homes will be built—again, in blocks 20 to 30 storeys high. The planning document contains a little orange circle where it says, “This is where we are going to build just over 1,000 social rented homes.” That sounds like quite an attractive prospect, until one finds out that those homes will be built so that tenants can be moved from the 2,400 homes on the White City, Batman Close and Wood Lane estates in another part of Shepherd’s Bush. In other words, without saying anything about what will happen to the nearly 2,500 families who live on those estates—the document is silent on that—more than 1,000 homes will be built to rehouse them. Well, I might not be Inspector Clouseau, but I can work out that once those families are moved into those 1,000 homes, the leaseholders have been bought out and other people have been discouraged from living in the area, the bulldozers can then go into the White City estate, which is the largest estate in my constituency.
The most controversial site is Hammersmith town centre and riverside, which includes the listed town hall, cinema and flats owned by the Pocklington Trust, which is a trust for people with visual impairments. Again, the ambition is demolition and to build 320 luxury flats and a footbridge over the A4 that will take out a third of the riverside park, so that Malaysian investors can have somewhere with direct access to the riverside to put their money into and perhaps come to when they are in Hammersmith. How that is conceived as providing for all the needs—let alone the housing needs—of my constituents I do not know.
Council officers proudly told me that the Earls Court development is the largest one of its kind—I think that they mean by value—outside China. They are very proud of that. What those developments have in common is that they face the unanimous opposition or near-unanimous opposition of residents and that the council is co-developer. The planning authority is the developer in each case, and hon. Members can imagine how planning committees go in that context.
The key point for today’s debate is that there is no affordable housing—not one new unit of affordable housing, by which I mean social rented housing. As London citizens will say, the only type of housing in London boroughs such as mine that is affordable to people on the London living wage, which is now almost £8 an hour, is social rented housing. That is what there is a need for. Of course, we need other types of housing as well, but they are easier to provide. The function of government is to provide for unmet needs, but those unmet needs are not being provided for. On the contrary, the whole thrust of policy—not just in Hammersmith, although it is more obvious in Hammersmith—is to reduce the quantum of social rented housing, to stop the construction of new social rented housing and in that way to change the nature of housing tenure across inner London.
What is the motivation for that approach? If I am right about this, and I think I am because I have spent a lot of time looking at it, the first motivation of those politicians—principally Conservative, although we must now associate the Liberal Democrats with them—is economic. A phrase that I hear from Conservatives in my area is “sweat the asset”, and a memorable comment from the leader of the council is, “We want to attract people to the area who are very rich.” I think that such people see council houses with affordable rents, on what would otherwise be very expensive land, as an affront to them economically. They think, “This is not what should be done with this piece of land. What we should have here is a 30-storey, Singapore-style tower block or a conference centre or office block. What we should not have is low to medium-rise housing built in the same style as the rest of the district when it was created in the Victorian era.”
The second motivation is, I think, a social agenda. Estates are described in the most disparaging terms in official council documents—as “not decent”, or “inward-looking”. I know that Tory politicians are often not comfortable with council estates, but I do not know whether that is because they think the people who live on them vote Labour or because they do not like the collective ideals that built them. Perhaps they do not like the communities who live there, but they could at least leave them alone. Those communities are often the opposite of inward looking: they are some of the most diverse and cohesive in the country and now, partly because of housing policies, they are among the most stable in the country, but they are pilloried in that insulting language.
The third motivation is a personal objection to people who live on council estates. If hon. Members do not believe me they should go back and look at some of the election literature and what was said in Hammersmith and Fulham about dependency culture and how living in subsidised housing with security of tenure makes people flaccid and unambitious. Some politicians think that such people need a touch of iron and that we should go back to the more competitive and animalistic culture that the Conservatives would like us to have.
Mr Slaughter
I hope that my constituency neighbour, who is not, from what I have heard of her comments, in that category, shakes her head because she does not want to be associated with such people.
I shall close on a point that I think is where this debate, in relation to Hammersmith, started. I shall read a couple of paragraphs from an article on ConservativeHome, of which I am a great reader. I enjoy it and find it amusing—sometimes intentionally and sometimes not. Hon. Members can make up their own minds about the article, which is about social housing and was written by the leader of Hammersmith and Fulham council in relation to a Commons debate such as this one almost exactly two years ago. It reads:
“On the day of the first Opposition social housing debate for three years, we ask here whether this is the time to reform social housing. It may not be an issue for the current intake of Conservative MPs at this time, but it will become an issue for many new MPs elected from target marginals which have far higher levels of social housing. Figures supplied to Greg Hands MP from the Commons Library show that shadow housing minister Grant Shapps’s seat (Welwyn Hatfield) has the highest percentage of social rented housing of any Conservative seat. Some key targets have huge percentages: Hammersmith at 36%, Westminster North at 30% and Birmingham Edgbaston and Battersea both at 29%.”
With the exception of Battersea, what do those other three seats have in common when one looks at the results of the last election?
The article continues:
“Whilst Conservatives are at a highpoint in local government, we still have a mountain to climb in our inner cities. We have no Conservative councillors in Liverpool, Sheffield or Newcastle and just one in Manchester. Many inner London boroughs remain either Labour or Liberal Democrat-run…Finally Boris Johnson’s stunning victory in our capital city was largely a suburban revolt. Why is this? The current state and levels of social housing in our inner cities may provide part of the answer. All our inner cities have relatively high levels of social housing compared to their suburbs. Today social housing has become welfare housing where both a dependency culture and a culture of entitlement dominate…Competition revolves around drawing welfare support and taking something out of the system. Conservative principles of freedom, self-reliance and personal responsibility run counter to this culture.”
That is not some lunatic adviser in the Conservative party; that was the head of the innovation unit for local government, who is running the Mayor’s campaign for re-election and is the leader of a London borough council.
I do not make the obvious point, which is that this is all about politics and gerrymandering. Of course it is about that, in a far more profound way than the things that Shirley Porter did. But the fact that we have people like that driving policy within the Conservative party creates a complete divide between the parties that has never existed before, such that it is now impossible for rational voices to be heard—even the voices of people in the Conservative or Liberal parties who know that they have a duty towards people in housing need and ought to be helping them, and that that should be separated from a political argument. This well has become so poisoned now that I believe that, unfortunately, it is Government policy—I have traced in this speech the link from that article through to the “Principles for Social Housing Reform”, through to Government policy in the Localism Bill and the demise of social housing—that is driving social housing policy in this country, particularly in London.
I do not expect to get a rational response from the Minister to this debate today—or probably ever—but I would like Government Members to think about the implications, not for us in our seats and our livelihoods going forward, but for the thousands of families who are the victims of the very crude political policy that is being pursued, in relation to housing uniquely. We can all have disagreements on other areas of policy, but they do not have such profound effects on people’s lives as this form of experimentation—demolishing people’s homes, making people move away from the communities that they have lived in for generations and separating families.
Those are the policies that are being directly pursued by the Conservative-Liberal coalition Government now. They are shameful policies. They should have received more attention from the media, and I wish that they did, but I think there is enough morality in the governing parties for them to go back and look at what they are doing in relation to housing policy and to think again. We are talking about future generations of people in this country who are growing up in conditions that are wholly uncivilised and wholly unworthy of the country.
Ms Karen Buck (Westminster North) (Lab)
I begin, as many others have done, by congratulating my hon. Friend the Member for Islington North (Jeremy Corbyn) on introducing the debate. How the years slide by, and I think of the first time that we spoke in the Chamber on housing in London, joined by my hon. Friend the Member for Eltham (Clive Efford) and others, who have all been habitual attendees of housing debates. How we wish that the problems that we were so exercised about in 1997 were the problems that we face now.
I am also delighted to place on the record my thanks to the Backbench Business Committee for giving us the opportunity to discuss this issue on the Floor of the House. We often have our debates in Westminster Hall, but it is important to be able to use the main Chamber to reflect on an issue that is so important to many of us. My hon. Friend the Member for Hammersmith (Mr Slaughter) said that we so often address with great passion the welfare concerns involved in education and health policy, but housing, which is at least as critical and stands alongside those issues in importance, tends to be marginalised.
I thank the hon. Member for Ealing Central and Acton (Angie Bray) for making an important point. She said that London was often not understood in the context of national politics. Although, sadly, there are housing pressures and problems in every part of the country, London is unique and faces particular cost pressures. It is good that we have had an opportunity to bring London Members together to talk about London problems, but we want colleagues from other parts of the country to hear more about why London is different and why the pressures are so intense here.
We have heard outstanding speeches from Opposition Members. I am thinking of my right hon. Friends the Members for Lewisham, Deptford (Joan Ruddock) and for Holborn and St Pancras (Frank Dobson) and my hon. Friends the Members for Lewisham East (Heidi Alexander), for Eltham, for Hammersmith, for Hayes and Harlington (John McDonnell), for Edmonton (Mr Love) and for East Ham—
Ms Buck
I am sorry; I meant my hon. Friend the Member for West Ham (Lyn Brown).
All those speeches addressed, with slightly different emphases, the impact of the housing crisis on people—on families in overcrowded accommodation, homeless families and families forced into constant moves and changes of address. The statistics matter, but it is important that we should remember that people are at the heart of the issue. I suspect that most of us in the Chamber, on both sides, have sat in advice surgeries with people weeping with distress as they have talked about the conditions in which they live and the number of times they have been uprooted and forced to move. They crave only a stable home.
Opposition Members drew out something important about social housing policy—that it has come about as a consequence of market failure. It is precisely because the private housing sector could not meet the needs of low-income and vulnerable people that council housing came about—and before that, there were the great social housing developments of Peabody and Octavia Hill. Subsequently, the housing association movement grew up in response to the catastrophe of the private rented market, particularly in places such as my previous constituency, the home of Rachman and Hoogstraten.
As the hon. Member for Battersea (Jane Ellison) said absolutely rightly, most landlords are not bad landlords at all—I am happy to place that on the record. However, the grim truth is that a substantial minority are, which brings the entire sector into disrepute. We already know from the English housing survey that 40% of private houses are below the decent homes standard and the conditions in the private rented sector are worse across the piece; a larger proportion of them fail to meet that standard. That is a particular challenge if vulnerable people are in the part of the market that has failed. That is exactly why the housing association movement developed. It is sad to hear from my hon. Friend the Member for Hammersmith how some housing associations seem to have strayed so much from their original purposes.