British House Building Industry

Siobhain McDonagh Excerpts

Thursday 5th September 2019 Commons Chamber

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

I beg to move,

That this House notes with concern the ongoing shortage of housing and the housing crisis across England; further notes with concern the number of families in temporary accommodation and the number of people rough sleeping; acknowledges that there are over one million households on housing waiting lists; recognises the Government’s target to build 300,000 new homes each year; acknowledges that this target has been missed in each year that the Government has been in office and that the number of homes constructed by housebuilding companies that are deemed affordable is insufficient; notes the pay ratios between executives and employees in FTSE 350 housebuilding companies; and calls on the Government to tackle the housing crisis as an urgent priority.

I thank the Backbench Business Committee for granting time for today’s debate and all the Members who will participate. It is amazing to see so many Members here, given the week we have had. At the request of Madam Deputy Speaker, I have stripped quite a lot from this speech because so many people want to speak—I will do my best. I want to give credit to the High Pay Centre and the best possible exposition of its amazing research for this debate on the state of the house building industry.

No Member of this House, whatever their party, can but be fully aware of the crisis in housing and homelessness in all our constituencies. I will open the debate by looking at the scale of the current housing crisis, by considering the record of the FTSE 350 house building companies and their contribution to solving this crisis and finally, and most amazingly, by analysing the utter pay inequality that is rife across the British house building industry.

On streets across our country and on the very doorstep of Parliament, British citizens who simply cannot afford a place to call home are sleeping rough. For the general public, they are the visual representation of our homelessness crisis. As highlighted by the Children’s Commissioner last month, homelessness is far more common in 21st-century Britain.

Not a single week goes by without a normal, hard-working family in my constituency being evicted from their privately rented property and sent to temporary accommodation miles away from family, their schools and their jobs. They join over 83,700 households across our country, including 124,000 children, who are living in temporary accommodation.

[Joan Ryan (Enfield North) (IGC)]

May I add to the picture the hon. Lady is painting by telling her that Enfield has significant problems on housing and homelessness? We have the capital’s highest eviction rate and the second highest number of residents in temporary accommodation, and homelessness has rocketed by 250% since 2011. Does she agree—from what she is saying, I think she clearly does—that the Government’s policy is not only hurting the housing market but causing a huge set of social problems, too?

[Siobhain McDonagh]

The social and financial cost of homelessness far exceeds what we spend on temporary accommodation, which was £1 billion of taxpayers’ money last year—every £1 of it badly spent. Some 6,980 families in my constituency are trapped in bed and breakfast accommodation, having been there longer than the six-week legal limit, including 810 children. Others are stuck in hostels far away from their schools, families and friends.

Some of my constituents are housed, at least temporarily, in Connect House, a warehouse on the busiest south London industrial estate. For anybody who wants to see what Connect House looks like, please have a look at the video on my Twitter account.

I am just crawling through my speech, because I see more and more people here.

Other families who have come to see me are on the ever-expanding waiting list, with 1.2 million families across our country now waiting for a place to call home—1.2 million. Just 6,464 new social homes were built in 2017-18, the second lowest number on record. At that rate, it could take 172 years to give a socially rented home to everyone on the current waiting list. That is utterly appalling when we compare those figures with the 150,000 social homes delivered each year in the mid-1960s or the 203,000 council homes that the Government delivered in 1953. It has been done before and we all know that we can do it again.

In Merton, where my constituency is based, 10,000 families are on the housing waiting list, with lettings for just 2.5% of them in 2018-19. What hope can I give the other 97.5% that they will ever find a place to go? I would like to provide statistics on home ownership but, again, I will move on to some of the other data in my speech.

The statistics and the stories that I have detailed this afternoon should provide thoroughly fertile ground for the British house building industry to get on and build, but its record does not match the potential. Here is the reality: our country’s housing target is 300,000 new homes a year—a figure that has not been reached, as we have already identified, since 1969, when councils and housing associations were building new homes. England is now on course for the worst decade for house building since the second world war.

I would like to look specifically at the performance of the leading house building companies in our country. To the best of my understanding, the figures are all correct as of June. In the last financial year, just 86,685 homes were completed by the 10 FTSE 350 house building companies, despite an extraordinary collective pre-tax profit of more than £5.37 billion. That is a mind-boggling figure, which is better understood when broken down.

Let us start with the four FTSE 100 housing companies: Barratt, Persimmon, Taylor Wimpey and Berkeley. In the most recent financial year, Barratt completed just 17,579 homes—slightly more than Persimmon, which finished 16,449 homes, with profits of £1.1 billion, of which half was down to public subsidy through the Government’s Help to Buy scheme. Taylor Wimpey came third with 15,275 homes completed but, in fourth place, despite an astonishing pre-tax profit of £934.9 million, is Berkeley homes, which completed a pitiful 3,894 homes. Together, those four companies collected a pre-tax profit of an unimaginable £3.68 billion, despite completing just 53,198 homes—less than 18% of the Government’s house building target.

What went wrong? Did they perhaps just not have the land to build the houses? Those four companies are sitting on a land bank of more than 300,000 plots between them. If we add in the rest of the FTSE 350 house building companies—Bellway, Bovis, Countryside, Crest Nicholson, Galliford and Redrow—the collective land bank is a staggering 470,068 plots, yet they completed 86,685 homes between them.

[Jack Lopresti (Filton and Bradley Stoke) (Con)]

I congratulate the hon. Lady on her excellent speech, with which I broadly agree. Does she agree that while, from a moral point of view, we obviously need to build more houses in the public and private sectors, we also need to radically reform the planning system, which takes far too long and is a big roadblock to getting the homes we need for people?

[Siobhain McDonagh]

I absolutely agree with the hon. Gentleman and would love an opportunity to have a debate about planning law, building on the green belt and other matters. I could speak at great length about them, but I will not because I want to allow other people to get in.

I would like Members to focus their attention on pay. Some of the figures are staggering. Let me be clear: I am new Labour to the core. I have no problem with successful business people earning a lot of money, but what happens in this sector goes beyond earning a fair day’s money. I was furious to see that, almost exclusively on the back of the British taxpayer through Help to Buy, Persimmon awarded its former chief executive Jeff Fairburn a staggering £75 million bonus, despite an appalling record of utterly substandard homes. How can that be right or fair?

[Justin Madders (Ellesmere Port and Neston) (Lab)]

That is a truly staggering pay packet. Does my hon. Friend agree that, given that Persimmon has recently given back the freeholds in Cardiff that it mis-sold to a number of homeowners, it should do that for everyone to whom it has mis-sold in the whole country?

[Siobhain McDonagh]

I completely agree with my hon. Friend and congratulate him on all the work he has been doing. Without the attention he has given the issue, much would not have happened.

Let us be clear: the money does not flow through the companies. Thanks to excellent new research from the High Pay Centre, I can reveal the quite extraordinary pay packets of the 10 FTSE 350 house building companies. In the heart of our country’s housing crisis, the four FTSE 100 house building companies spent an eye-watering £53.2 million on their CEO pay. David Thomas at Barratt earned £2.811 million; Peter Redfern of Taylor Wimpey earned £3.152 million; Tony Pidgley at Berkeley reached £8.256 million; and Mr Fairburn, formerly of Persimmon, got a whopping £38.9 million.

[Bob Stewart (Beckenham) (Con)]

The hon. Lady is making a great speech and I totally endorse everything she has said. I am really worried as to what the heck the shareholders are doing. Do they not question this when they have their annual general meeting? They are meant to bring the companies to account on such matters.

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[Siobhain McDonagh]

Actually, the shareholders are doing quite well as well, because they are getting quite a lot of money on the back of Help to Buy. That could be the subject of another debate.

I have no doubt that those four men work hard and have a grasp and understanding of their industry that few others could provide, but surely high pay is supposed to be about high productivity and high quality of product. It seems to me that the more substandard the properties they build and the lower their rate of productivity, the more they get paid. There seems to be no consequence for poor performance. We are in a housing crisis—is it really appropriate to provide such preposterous pay packets, considering the house building record I have described?

[Mr Richard Bacon (South Norfolk) (Con)]

I agree with almost everything that the hon. Lady has said, but I ought to point out—I declare an interest, because as part of an Industry and Parliament Trust fellowship I spent a day at Berkeley—that the main shareholder of Berkeley is Tony Pidgley, who started that business himself. He left school at 15, unable to read and write, and he has employed thousands of people, created a great deal of wealth for this country and paid a huge amount of tax. Moreover, he would deny—and he would be right to do so, unlike some of the others the hon. Lady rightly mentioned—that Berkeley produces poor quality. It does not; it produces extremely good quality. Berkeley refuses to be a member of the Home Builders Federation because it does not consider itself a volume house builder.

[Siobhain McDonagh]

I certainly agree with the hon. Gentleman in part. I have had the honour of meeting Mr Pidgley and I give him credit for his career and his actions. His profits do not come from Help to Buy, but, even so, it does seem like a very unequal company. I have no problem with people earning well at the top, but the people at the bottom should not earn badly.

[Matt Western (Warwick and Leamington) (Lab)]

I congratulate my hon. Friend on securing this debate and making an excellent speech. On her last point, as far as I understand it, Berkeley constructed no affordable housing last year, and for Barratt Homes, Persimmon and the others in the top four, the figures are around 18% to 20%. It is a complete scam. The amount of money they are taking out at the top, and not just for executive pay or shareholder pay—I have no problems with shareholders receiving dividends and so on—is at the expense of much-needed social and affordable housing. The whole viability element of the planning system is a complete scam and should be done away with.

[Siobhain McDonagh]

I absolutely agree with my hon. Friend, and I know that he works really hard on that subject. Just like the issues about the whole planning system, that could be the topic of another debate, to which I am sure we would both want to contribute.

The median pay for FTSE 100 house building CEOs is 228 times that of the typical UK construction worker.

[Gareth Johnson (Dartford) (Con)]

Does the hon. Lady agree that one way forward would be to increase the opportunities for self-build? It is incredibly difficult at the moment. If an individual wants to buy a plot of land and find a builder to construct a house for them, they find so many obstacles in their way. Does the hon. Lady agree that that may be a way forward to improve on the current situation?

[Siobhain McDonagh]

I think the hon. Gentleman has stolen the words of the hon. Member for South Norfolk (Mr Bacon), who also does loads of work on self-build. It is an issue that small and medium-sized builders have been squeezed out, but unfortunately I do not have time to address that matter today.

Let me return to the matter of pay ratios. At Barratt, the pay ratio between median executive pay and median construction worker pay is a disappointing 113:1. At Taylor Wimpey, it is an awful 126:1. At Berkeley, it is a shocking 331:1. But at Persimmon, it is an absolutely deplorable 1,561:1. Jeff Fairburn, in his final year of employment as chief executive of Persimmon, received more than £38.9 million, yet his average member of staff earnt £37,118. That was for technical staff. We do not know what the company’s subcontracted electricians, roofers or other wet trades people might have received. How can that be fair?

The vast scale of inequality looks even worse in the light of UK housing prices. Assuming that the average UK house price is £230,630—I assure the House that it is not possible to buy anything in my constituency or in the constituency of the right hon. Member for Enfield North (Joan Ryan) for that price—and that the average UK construction worker saves 10% of their earnings to buy a house, it would take them 92 years to save up and 19 years just to save for the deposit alone. But the average FTSE 350 CEO could buy 28 houses outright in one year, 532 houses over 19 years—the years that the construction worker would be using to build a deposit—and 2,567 houses over the 92 years in which the construction worker would be saving up to afford their home. On no level can this be right or fair. It cannot be right for our society. It cannot be right for us as taxpayers. It is simply wrong. The system is broken. In the main, the market does not reward hard work, endeavour and meeting the housing need. In my view, it certainly should do.

[Madam Deputy Speaker (Dame Eleanor Laing)]

It will be obvious to Members that we have very little time left—not surprising in the current circumstances—and that lots of people want to speak. We will try to manage without a time limit. Let us see whether we can be courteous and consensual. If everyone takes around five minutes, we will get there.

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[Siobhain McDonagh]

I thank everyone who has contributed to the debate. In the few seconds I have left, I want to ask that we ban the word “affordable” in the context of housing. “Affordable” means 80% of market rent, but the vast proportion of our constituents could never afford 80% of market rent. Let us talk about social housing rent and owner occupation, but let us also clearly address the question of what is affordable, because the “affordable housing” is not affordable.

Question put and agreed to.

Resolved,

That this House notes with concern the ongoing shortage of housing and the housing crisis across England; further notes with concern the number of families in temporary accommodation and the number of people rough sleeping; acknowledges that there are over one million households on housing waiting lists; recognises the Government’s target to build 300,000 new homes each year; acknowledges that this target has been missed in each year that the Government has been in office and that the number of homes constructed by housebuilding companies that are deemed affordable is insufficient; notes the pay ratios between executives and employees in FTSE 350 housebuilding companies; and calls on the Government to tackle the housing crisis as an urgent priority.

Oral Answers to Questions

Siobhain McDonagh Excerpts

Monday 22nd July 2019 Commons Chamber

[James Brokenshire]

I am grateful to my hon. Friend for that. He sets out that need for improving the energy efficiency of new and existing homes—that aim is very much shared by the Housing Minister. We plan to consult this year on uplifting the building regulations’ energy-efficiency requirements for new homes and work to existing buildings. Policies are also in place to improve existing homes, and these include the energy company obligation scheme.

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

T7. Mr S has been a brilliant private tenant for the past 12 years in his flat, always paying his rent on time, and decorating the flat and repairing it when necessary. He is also a great patriot, as a Royal Navy reservist. But none of this matters: in eight weeks, when his landlady issues him a section 21 notice, he will become homeless through no fault of his own. How is that right or fair?

[James Brokenshire]

We want to get this right in the private rental sector, which is why we have launched the consultation today on section 21 and how we provide that reform. If the hon. Lady wishes to draw the circumstances of this case to my attention, I will be happy to receive the details, because the sense of fairness underpins the action we are taking and is why these reforms are necessary.

EU Structural Funds: Least Developed Regions

Siobhain McDonagh Excerpts

Wednesday 26th June 2019 Westminster Hall

[Several hon. Members rose—]

[Siobhain McDonagh (in the Chair)]

Order. All Members can see that there is an awful lot of interest in the debate. I understand that it is important to lots of Members’ constituencies, so I ask you to work with me, and I apologise for imposing a limit of four minutes on each speech so that we ensure that everyone may speak on behalf of their constituents.

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[Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)]

It is a pleasure to speak under your chairpersonship, Ms McDonagh. I thank my hon. Friend the Member for Sheffield Central (Paul Blomfield) for securing the debate.

It has been three years and three days since the EU referendum. During that time, the Government have failed to negotiate a decent Brexit deal, and that has resulted in uncertainty in our economy, for my constituents and throughout the country. My constituents voted to leave the European Union but they did not vote for their rights to be watered down, for their jobs to be at risk or for a less prosperous future for their children.

South Yorkshire has had its challenges and its triumphs. I am proud of our region’s strong manufacturing base, which has remained resilient despite the devastation of the 1980s under the Thatcher Government. European structural funds, particularly from the European regional development fund—the ERDF—for infrastructure and the European social fund for employment, have been important elements in rebuilding our regional economy since those days. I have seen how the funds have had huge impacts in my constituency of Sheffield, Brightside and Hillsborough. We have fantastic facilities such as SOAR Works, which is a managed workspace at Parson Cross funded through the ERDF, and Building Better Opportunities—a great scheme to get disabled people in Sheffield into employment that has received £2 million from the European social fund.

Sadly, the Government’s record on supporting the north has been a travesty and has held back the economy in our area. Everyone in Sheffield remembers that one of the very first actions of the coalition Government was to cancel a crucial £80 million loan to Sheffield Forgemasters—a clear sign that investing in the north was not a priority. The Government still talk of a northern powerhouse in slogans, but warm words will not cut it. The north needs investment to turbocharge our economy and to give communities the jobs, skills and opportunities that they deserve.

Under the EU system we would be entitled to a higher level of investment. As the report notes, South Yorkshire would be entitled to more than €500 a head in the next six-year period, which could amount to around £30 million for my constituency alone: a massive amount of money. We have seen food bank use rocket, particularly after the roll-out of universal credit. If the Government fail to invest in areas such as South Yorkshire, we will see more people struggle and rely on food banks to survive.

The 2017 Conservative manifesto stated:

“We will use the structural fund money that comes back to the UK following Brexit to create a United Kingdom Shared Prosperity Fund”.

The fund is to be targeted, flexible and devolved, and it is intended to promote inclusive growth. But although they constantly refer to it as the means by which they will

“tackle inequalities between communities...especially in those parts of our country whose economies are furthest behind”,

the Government have yet to offer any clarity on how it will work or the mechanisms by which it will be distributed.

As we know, the Government said they would consult on the proposals, but here we are in June 2019 and the consultation is still not forthcoming. Will the Minister take this opportunity to assure my constituents in Brightside and Hillsborough that the Government will cover any shortfall that results from leaving the EU? Furthermore, the Minister will be aware that the framework for distribution of the ERDF in the period from 2021 to 2027 has the funding of low-carbon schemes at its heart. Will the Minister commit to a similar focus in the shared prosperity fund in response to the climate emergency?

[Siobhain McDonagh (in the Chair)]

I am sorry, but Members must go down to three-minute speeches, so will everybody be circumspect about making interventions?

Social Housing

Siobhain McDonagh Excerpts

Thursday 13th June 2019 Commons Chamber

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

I congratulate my hon. Friend the Member for Warwick and Leamington (Matt Western) on his tireless work and campaigning on this incredibly important issue. I am sure that, as it is for me, 50% to 60% of the casework of every Member is on issues of social housing and the lack of it.

We can look back at Labour’s record and think that we could have and should have done more, but let us not take any criticism from those on the Government Benches. Under Labour, between 1997 and 2010, there were 2 million more homes, there were 1 million more homeowners and we saw the biggest investment in social housing in a generation. Fast forward to the present day and there are now 1.2 million people on housing waiting lists throughout the country. What was the Government’s response? Just 6,464 social homes in 2017-18—the second lowest total on record. At this rate, it will take 172 years to give everyone on the current waiting list a social rented home. That is simply a diabolical rate when compared with the 150,000 social homes that were delivered each year in the mid-1960s, or the 203,000 council homes delivered by the Government in 1953. The evidence is clear: it has been done before and it can be done again.

My constituency is in the London Borough of Merton —a borough that had just 255 lettings in the past year, including just 146 one-beds, 65 two-beds, 43 three-beds and, amazingly, just one four-bed. With figures like these, what hope do any of the 10,000 families on Merton’s waiting list have of ever finding a place to call home? I would be the first to criticise Merton for the level of importance it places on social housing—I do not believe the council concentrates on it enough or is innovative enough—but the Government cannot get away with just blaming Merton.

In 2010, George Osborne cut funding for social housing by more than 60%, leaving us reliant on private developers to provide social housing—the most expensive way to provide a social housing unit that could ever be dreamed up—or on housing associations developing on the basis of the new affordable rents. Surely we must all agree that it is a criminal act to the English language to use the word “affordable” in this context. I am not sure about other Members’ constituencies, but 80% of market rent is not affordable to the vast proportion of people in my constituency. This left housing associations with the dilemma: did they continue to endeavour to fulfil their historic mission to provide housing for people in need, placing themselves under the financial risk of having to charge those rents and to borrow so extensively on their assets; or did they simply give up the ghost? That was a really difficult choice to make and I criticise no housing association in that regard.

[Andy Slaughter (Hammersmith) (Lab)]

My hon. Friend has made a very good point. Some housing associations behave well and some behave badly under those circumstances. This was not only about new build, but about the conversion of more than 110,000 existing social rented homes to affordable homes, taking them out. Was that not a deliberate policy by a succession of Conservative and coalition Governments not just to not replace social housing, but to diminish the quantity of social housing?

[Siobhain McDonagh]

I think that had many motives. One motive was to diminish social housing, but it had the consequence of putting housing associations at financial risk, leading to a terrible crisis and an expensive crisis. My hon. Friend the Member for Westminster North (Ms Buck) informed us of the amount we are currently spending on housing benefit. If we reduce grant rates, we increase the rent and simply place more demand on housing benefit.

Let me give as an example a London and Quadrant development on Western Road in Mitcham. I met my constituent, Tracey. She was desperate to move for many reasons. She had got to the top of the list. I said, “Tracey, bid for this lovely new place, which has been built by L&Q on Western Road.” She said, “I would love to, Siobhain, but the problem is that my partner and I work and the rent is £1,000 a month. We simply could not pay it.” The very people for whom these properties were intended cannot afford to rent them because they go to work.

It is people’s real experiences that motivate me to be interested in this topic. It is about the hundreds of my hard-working constituents who are living in overcrowded conditions at private sector rents that leave them with little to live on and some without even enough to eat. Those families cannot afford to get on the housing ladder. There are not enough social homes to go round. For those who do make it into the private rented sector, they are always just one step away from finding themselves without a home. Not a week goes by when I do not meet yet another hard-working family who have been evicted from their privately rented property and threatened with homelessness just because the landlord can collect more rent from somebody else.

Ms A, with her two young sons, lives in a privately rented property. She pays £1,200 a month, less than the market rent. The landlord could get £2,000 a month. Her young son found his dad dead in bed. The importance of their staying in that home is paramount: so the kids can get to school; she can get to work; and they can get the support from our local church, Saint Joseph’s. She cannot afford to lose that home. When she came to see me, she said, “Siobhain, it’s in a terrible state of repair, and the landlord just told me to think myself lucky. Will you get environmental health involved?” Over the weekend, I thought about it. I know what the consequences will be if I get environmental health involved: six months later, that lady will lose her home. My alternative is to go back to my church to see whether I can find people in that church who will do some of those repairs for her.

Another lady, Miss P, has been a tenant of her privately rented home for the past 14 years. She has never owed money. She has three children and her husband has learning difficulties and a number of health problems. She has received her section 21 notice. It has expired and she faces two years in temporary accommodation at the moment. In two years’ time, who knows how much longer she will be in temporary accommodation. She is desperate to find a property in the private rented sector, but nobody is going to rent to her and she finds it unimaginable that she is in this position.

At 7.30 last Friday, a lady and her 17-year-old son came to see me in a distressed state. They said they were a homeless family from Lewisham who had been housed in Morden for the past year. They had received a phone call that day from Lewisham to say that they must leave their property next Thursday and move miles away. So the eldest son cannot continue his A levels, the middle son cannot continue his GCSEs, and the third son is going to have to move away from his school. This is a vulnerable family who are in temporary accommodation as a result of domestic violence.

Thankfully, Lewisham has changed its mind and it is leaving the family there, but how many families are uprooted, with children having to leave their school? As other hon. Members have suggested, a housing problem is an education problem, is a mental health problem, is a family breakdown problem, is a crime problem.

I am tired of the endless reports, the countless debates, the fruitless words and the lack of action. The Government have a house building target of 300,000 new homes per year, and they cannot simply keep willing the end of more homes without finding the means to provide them. So what will it be? Will we back here at the next debate offering the same ideas and hearing even worse statistics, or will this Government finally open their eyes and see the devastating reality of Britain’s 21st century housing crisis?

[Justin Madders (Ellesmere Port and Neston) (Lab)]

First, let me congratulate my hon. Friend the Member for Warwick and Leamington (Matt Western) on securing this debate and on his excellent introduction. He is right that social housing is absolutely central to what we, as politicians, are here to do. It is damning to see the empty Benches opposite—it really does send out a very poor message to the rest of the country about where our priorities are at the moment.

As most Members have already said, week in, week out, housing problems are a No.1 issue in my constituency surgeries—whether it is to do with a lack of affordable housing, poor living conditions, homelessness, or landlords simply not rectifying problems in properties. We can talk about house numbers in the hundreds of thousands, but we should not forget that at the heart of this matter are real people facing real difficulties because we have had nine years of failure. Sadly, it is no exaggeration to say that this Government have failed across the board when it comes to housing. They have failed buyers and renters alike. They have allowed the leasehold scandal to emerge, and they have failed to tackle the root cause of the problems that the sector is facing.

I am pleased that today’s debate is focusing on social housing. It is no coincidence that the steep decline that we have seen in social house building has coincided with an increase in homelessness and soaring private rents. Since this Government came to power, rents have become increasingly unaffordable, with private renters spending, on average, 41% of their household income on rent. In those circumstances, it is no wonder that more than half of private renters say that they struggle to meet their housing costs. Worse still, Shelter reports that a third of low-income renters are struggling to the extent that they have to borrow money just to keep a roof over their head. That means that putting money aside to save for a deposit so that they can eventually own their own home is completely unrealistic. A lack of social housing has put enormous pressure on the private sector, which means that a quarter of private renters, equating to more than 1 million households, rely on some element of housing benefit or universal credit to keep a roof over their head.

We have already discussed the Supreme Court judgment yesterday on the local housing allowance, which demonstrates the current injustices in the system. I know that in Neston, in my constituency, rental costs for a property are at least £150 a month more than the local housing allowance provides for. That is a totally indefensible and unsustainable situation, but what choice do people have? The decline in social housing stock has left more than 1.1 million people trapped waiting for social housing, with many of those families facing greater instability with rising rents in the private sector. At the same time, the number of homeless families living in temporary accommodation has increased to 74% since 2010. Let us just think about that. These are young people who may be forced to move out of area, potentially affecting their schools, their family connections and their jobs. Temporary accommodation really does strike at the heart of what we are trying to build with families in this country.

Welfare reforms have made private sector landlords increasingly reluctant to let to tenants who rely on housing benefit. As we know, many landlords simply refuse to accept any tenants who are in receipt of benefits. This is a discriminatory practice, and I pay tribute to Shelter for its campaign on that. Sadly, though, it is a fact that someone who is facing homelessness is not going to look to bring a court case for discrimination; they will simply look elsewhere—if there is anywhere else to look. The reality is that landlords’ behaviour will carry on in this way, while local authorities, in an ineffective attempt to discharge their statutory duties, will continue to hand out lists of private sector landlords to those facing homelessness, but those landlords will never actually rent their properties to those people because they are in receipt of benefits.

[Siobhain McDonagh]

Both of my parents came to Britain from Ireland at the end of the 1940s, when there were postcards in the windows that said, “No Irish, no blacks, no dogs”. Does my hon. Friend agree that if there were such postcards today, they would just say, “No benefits”?

[Justin Madders]

I thank my hon. Friend for her intervention. Yes, we were familiar with the sign, “No DSS”—the one that used to apply. Letting agents, lenders and landlords all need to get the message that they are operating a potentially discriminatory policy. This really does go to the root of the difficulties we have when people are making homelessness applications. If they get a section 21 notice, that does not seem to have much effect on priority. It is almost as though there is a waiting game. Court costs, eviction notices, stress and uncertainty all have to come before any real priority is applied to people who are facing homelessness. The system is not working; it is under tremendous pressure and supply is nowhere near meeting demand.

Why do we still have the bedroom tax? Six years on, the same injustices carry on. I regularly see constituents who are still paying it and have been paying it for six years now. It is absolutely causing havoc with their finances. They are getting into debt and struggling to pay their day-to-day costs—and for what? To pay this unfair tax with money they do not have. If we have a new Prime Minister who genuinely wants to show that they are different from what has gone before, the first thing they should do is abolish the bedroom tax.

Of course, it is no coincidence that at the same time as we are facing this crisis in social housing, home ownership is also declining. Just a quarter of people born in the late 1980s own their own home by the age of 27, compared with 33% of those who were born five years earlier, and 43% of those born earlier than that, in the late 1970s. There is a clear trend here. There is a danger that an entire generation will be locked out of home ownership, because there is no sign of the situation improving. A major part of the reason for this collapse is that house prices have grown far faster than incomes, leaving young people struggling to meet the affordability tests set by lenders. Even if they are able to save the tens of thousands of pounds needed for a deposit in the first place, it is still a struggle, because the average home in England now costs eight times more to buy than the average pay packet. There are 900,000 fewer homeowners under the age of 45 than there were in 2010. The trend is going backwards, and that is why there is so much need for more social housing.

We must build new social homes and affordable homes, both to rent and to buy, for all those who need them—yes, for the most vulnerable, but also for those in work and on ordinary incomes, for young people, for families locked out of home ownership, and for older people reaching retirement who are facing old age in insecure, unaffordable, unsuitable properties. All those people are being failed by current housing policy. We are facing a situation where, for the first time, children can expect to earn less than their parents. After decades of the number of houses being built failing to keep up with demand, we are at a crunch point where home ownership looks out of reach to an entire generation.

I am pleased to say that my local authority is taking the lead on this. Cheshire West and Chester Council has now built in Ellesmere Port the first council housing we have seen in 40 years, as part of a mixed development. I was absolutely delighted to welcome the shadow Secretary of State, my right hon. Friend the Member for Wentworth and Dearne (John Healey), to this new development only last month. I am very proud that after 40 years, we are starting that development, but due to the huge increase in right-to-buy applications, we are not even standing still. Of course I support people’s aspiration to own their own home, but the right-to-buy policy is incredibly short-sighted, because the reality is that far from there being one-for-one replacement, there is probably about one property being replaced for every four sold. I agree with the Local Government Association that this situation is completely unsustainable. The loss of social rented housing pushes more families into the private rented sector, further pushing up rents and exacerbating the housing crisis. In addition, as we have heard, some of these houses end up in the private rented sector, which again pushes up rents.

It is a gargantuan task to replenish this country’s depleted housing stock. I am pleased that after many years of stagnation, we are seeing quite a lot of house building going on in my constituency, particularly on brownfield sites, but very few of these developments have any affordable housing. That is because the permissions were all granted some time ago, and the developers used rules brought in under the coalition Government to plead poverty and tell us that they could not build affordable houses because they could not maintain their 20% profit margins. As a result, all these new houses are being built, but on just about every private development in our constituencies hardly any affordable housing is being built. Most developers sought release from those obligations four or five years ago but have only started building in the past couple of years. It is therefore quite clear that the affordable housing was not the problem; it was about what they wanted to do to maximise their profits—it was greed. If we are going to build ourselves out of this housing crisis, we cannot continue to rely on the same avaricious developers who have got us into this mess in the first place. A cursory look at the leasehold scandal tells us everything we need to know about the priorities of some developers.

There is a massive job ahead of us, and things need to change. Enough is enough. My Front-Bench colleagues have set out a very ambitious plan about how we can achieve this. Yes, we need to build 1 million more genuinely affordable homes; yes, we need to target Help to Buy on first-time buyers on ordinary incomes; and, yes, we need to give councils the freedom to build and retain council homes for local people. But we need to get on with it now. This Parliament is broken. We look around and absolutely nothing is happening. The Government are incapable of making decisions. Every day they spend arguing among themselves is another day further away from tackling this urgent and very real crisis. This country deserves so much better.

House Building Targets

Siobhain McDonagh Excerpts

Tuesday 11th June 2019 Westminster Hall

[Anne Marie Morris (Newton Abbot) (Con)]

I beg to move,

That this House has considered house building targets.

It is a pleasure to serve under your chairmanship, Mr Hollobone. I am grateful to have been granted this important debate. I do not think anyone in the Chamber will disagree that we need more houses; I suspect that there will be violent agreement that we need homes and communities, not just blocks, because that will have an impact on how society develops, and we are aware of the close link between the provision of homes and the mental health of those who live in them. Given that, there is clearly a role for targets to ensure that we build more such homes, but they need to be the right targets followed by the right incentives and disincentives to ensure that we get the right behaviour.

The main house building target with which we are all familiar is the numbers target set by central Government. The National Audit Office has looked at that number and it is not entirely clear that it is valid. I am sure that the Minister will respond with exactly why that figure has been picked and whether he agrees with the NAO’s conclusions.

There is a similar challenge with the local government number, which is generally based on each 10-year census, the last of which was in 2014. There is room for some flexibility around affordability, but that is about it. In the same way, then, those local government targets also need to be properly validated, and we need evidence, so it would be appropriate for local authorities to be required to collect more information about that housing need and to look at brownfield sites and empty properties that are not being used.

Local authorities also need to be given more flexibility and enforcement power to bring uninhabitable sites into habitable use. Although, clearly, there are powers, the challenge is that most local authorities choose not to use them, because they do not have the finances or resources for a long, drawn-out process. That is not the right approach, however, and we need to consider how to make it simpler and easier for local authorities to use their powers. The real need has to be established, not just estimated.

If we are to look at the totality of the housing we need, we must also consider the challenge of land banking. Local authorities need new powers to prevent that behaviour. We could do that in a number of ways, such as by looking at the rules that allow a developer to comply with the legislation enforced at the time he purchased, not the time he develops, when it is often more stringent. One small thing would be to say, “You must comply with the rules as they are today.” We could also consider some form of compulsory notice, or, in extremis, compulsory purchase, to make sure that those plots of land are brought into supply.

The targets based largely on numbers are not enough. There are probably four areas that we need to look at, for which there are some targets and plans that are, however, not strong enough. Those four areas are affordability, environmental impact, infrastructure and community benefit. On affordability, I do not think that any hon. Member present disagrees that 80% of the market frankly does not represent anything affordable. The problem is that the link is with the market price of the house, not the average salary. I appreciate that if we make that link, there will be a huge funding gap that will have to be met from somewhere; I will come on to how I might do that in a minute.

We need new national and local targets for affordability, and we need to ensure that they cannot be diluted. Many developers, having said that they will develop x% in accordance with the local council’s rules and regulations, come back and say, “Oh dear, I cannot develop that number of affordable homes. They must all be executive homes”, and because the council is so needy of the community infrastructure levy and the new homes bonus, by and large, it caves in. That cannot be right.

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

The hon. Lady is making a very interesting speech. On the point about whether a developer can develop the proportion of social housing units, does she agree that developers should be required to publicly produce their affordability assessments in order that we can all have a look at those figures?

[Anne Marie Morris]

That sounds to me like an excellent proposition—I agree.

With absolutely the best interests at heart, the Government have introduced very good schemes, such as Help to Buy and so on, and I believe there are more on the way, but the challenge we have is that if a local authority complies and creates enough housing stock as part of those schemes, that squeezes the amount that can be available for truly affordable housing. Where I am in Devon, that has been a huge challenge for Teignbridge District Council. Once the percentages of affordable homes are agreed, they should be pretty much immovable, except in extremis. It should not be in the gift of the developer to change that.

How are we going to pay for all of this? I think we all accept that the fundamental link between salaries and the cost of a property has been broken and needs to be fixed. We need to look at how to share more fairly the benefit and the burden of the windfall that comes, first, as a chunk taken by the owner and, secondly, as a chunk taken by the developer. How might we do that?

Owners already pay a tax, so they do have to make some contribution. In addition, they should be required to set aside a fund for infrastructure provision, which is one of the biggest challenges for any housing development. That would be important. That money should be provided up front.

At the moment, the owner getting paid generally depends on the developer getting planning permission. It should be conditional not just on that but on the delivery of the infrastructure and, potentially, the affordable housing. There has to be some way of tying the owner to a greater responsibility for delivering the homes.

What can we do with regard to the developer? The developer is generally already required to make a contribution to the infrastructure, but, by and large, it is not an up-front contribution. We need to make changes so that it is. We need to look at putting infrastructure in place before we build even one house. There will be some occasions when, for practical reasons, the houses have to be built before the roads are, but the principle is important.

We then need to ensure that the developer is held to account on developing the types of homes that the council needs. Whether an area needs flats or two-bedroom homes or three-bedroom homes, or whatever, will be in the council’s local plan, with more information in the neighbourhood plan. Often, the developer brings an argument that they cannot provide what is required—that they need to provide executive homes, because that is all they can afford to produce. That is not the right answer. The council ought to have the power to ensure that, when it grants planning permission, it is to provide the houses or flats that we actually need. There might be a question about whether a developer would then continue to develop. If that were a national policy, rule or regulation, they would continue to develop, on the assumption that they want to stay in business.

What about the council? In this whole process, they do not have the relevant power or resource. By and large, they cannot say to a developer, “No, you are not providing the sort of houses we need.” They need the CIL money, they need the new homes bonus and they know that if they lose an appeal brought by a developer, they will have to pay the costs. That rule needs to be changed. Councils need to be free not to give planning permission where they feel it appropriate, without having over their heads the real burden of paying fees if they are then proved wrong.

On brownfield sites and empty properties, councils need to be given the power to enforce. That means ensuring that they are properly funded to do so and that the legislation has the teeth to make that happen. Without that, those who own brownfield sites or have vacant properties will not be willing to do much about them.

I want to touch on the environmental impact. This is a huge issue; it has had a significant impact in my constituency. There is a much fought-over development in Newton Abbot, called NA3. It is currently being reviewed by the Government, because the local authority did not make a decision in sufficient time. The developer has effectively said that they want it to be looked at in more detail, and that process is ongoing as we speak. I will not refer to the details exactly, as the matter is currently in train, but the way the system works means that no account has been taken of the real number of houses we need, nor of the real value of that particular piece of land, which offers much in environmental support and opportunity for the area as a whole.

Another example is Kingsteignton, one of the smallest towns in the country. It started out as a very small village and just got developed and developed. The character of that village has largely been destroyed and it has become a small commuter town—a dormitory suburb of Exeter. It was never developed to be a town, so there is no physical centre such as a cluster of shops that people can go to, to give a heart to that community.

There are a number of things that might be done to address these issues. I start with carbon impact, which is slightly dislocated from my previous point. There used to be carbon impact targets. As I understand it—the Minister may correct me—they were abolished in 2014 or 2015. It seems to me that everyone feels very strongly, and rightly so, that if we are to do our bit, we need to ensure that new housing is developed with the lowest carbon impact possible. That is not the case at the moment. Many constituents say to me, “Why are solar panels not mandated nowadays on new developments?” Not to mandate them on industrial developments certainly seems to me to be madness. That needs to be re-examined, and I hope that with the new focus on environmental matters, the Government will do that.

If the Government are really serious about trying to ensure that there are beneficial rather than adverse environmental impacts, they need to look at investing in and supporting investment in new technology to enable us to build new, high-quality, environmentally friendly houses and homes.

My other concern is about the green lungs. In communities that have been further built out, we have tried to retain small areas of parkland and so on, so that people feel the area is a home, and they have somewhere they can take their children and their dogs and so on. In a large conurbation like London, that is difficult, and we are where we are, but there needs to be a greater focus in planning on retaining the green lungs going forwards. I am concerned that we now seem to be continually reducing the footprint that a property has, and reducing the amount of land/garden. Mental health is also a big issue today, and greenness and space are very important to mental health. The link between planning, housing and mental health does not need me to prove it. It is already there for all to see.

The Government should be looking at a new strategy. Alongside looking to develop new towns—I know there are some already—they should be looking at new villages. I appreciate the appeal of new towns with their greater population, but our villages are one of the beautiful things about our green England, and Scotland, Wales and Northern Ireland. Why is it that we cannot have a new villages strategy? They might be the template for environmental pilots. If the Minister in any way accepts any of that, the national policy planning framework will need to be reviewed and fundamentally overhauled.

Let me now look at the issue of infrastructure. I have talked a bit about the funding and when the money comes forward, but I am still amazed that, although there is an obligation to put in a telephone line and connect to water and electricity, there is no obligation—unless the Minister says it has changed—to put in broadband. It seems to me that planning should not be given unless the developer makes a commitment to put in broadband, by which I mean a broadband connection to BT—not because I love BT, but because it provides the physical infrastructure. In some areas where in theory there has been a commitment to provide broadband, it has been access to Virgin or one of the other suppliers. As they do not have control over the physical network and infrastructure, the reality is that the community cannot get broadband. I am hopeful that the Minister is looking at some of the challenges.

Infrastructure is not just about electricity or broadband but about having enough schools and health provision. One of the things that has continued to surprise me is that some very important consultees are not statutory consultees. One of those is health. Although the Minister’s predecessor would say to me, “But they can be consulted, and usually they are,” my response has always been, “Well, that’s true, Minister, but the reality is that if there is no statutory obligation to do it thoroughly and properly, you will probably not do it to the degree that it needs to be done.” I am certainly aware that there are many areas in my part of Devon where we do not have adequate provision for health services, which is a real issue.

Part of the infrastructure is normally funded through the council. One of the things that has been a barrier to councils is their inability to borrow against future receipts of CIL moneys or the new homes bonus. If we could change that—at one point, one of the Minister’s predecessors started looking at it—it would make a significant difference. Although the CIL and NHB moneys go to the council, there is no obligation for them to use that money in the local area where the development takes place. I appreciate that where there is a neighbourhood plan—I am certainly a great fan of them—it is a win-win for that neighbourhood, because they get an element of the money to use in their own area. Although that is a good start, I do not believe that it is adequate.

Let me now turn to the final area where I think we should have different thinking, new targets and a new approach: the community. How does the community benefit from all this? Looking back in history, the concept of planning and planning approval was introduced because it was believed that landowners had too much power to build anywhere—rightly so, because they own the land—and it was therefore thought more appropriate for there to be some control, hence the planning process.

It seems that there is a stakeholder missing from this agenda: the community. I have talked about providing homes and ensuring that we have stable and mentally healthy communities, but we will not do that unless the community is involved. I know that there is a requirement in the NPPF to look at environmental and community issues, but there are no real teeth to it. It seems that the concept of community interest is very limited and needs to be reviewed. At the moment, we generally look at the impact of any plan put forward on productivity—rightly so—but we do not look at the impact of that development on the community’s quality of life, which is important. If we are so focused on the need for healthy communities and on reducing our mental health issues, that is critical. If we are to achieve this, the NPPF will need to be changed.

In trying to put the community at the heart of all this, we need to look at a viable villages initiative. I have referred to the issue before. One of the challenges is that most of the large developers will not develop small villages. The small developers find it more expensive because they do not have economies of scale, and many have gone out of business. Without support from the Government, we will not change that. Unless we look specifically at how we will ensure that existing villages remain viable, so that there are still enough children to attend the schools and enough people to go and drink in the pubs, we will find that our villages die. Wherever they are in the country, that will be a loss. We need to look at how we do that, be it through simplifying the planning permission or through Government grants and support for small builders. I am sure that the Minister is better placed than I am to address that.

I have an old chestnut: engagement with the community. I have raised this with just about every Minister who preceded the current Minister, whom I shall also ask to consider it. For all the reasons I have expressed, I believe that the community should have a right of appeal in the planning process. The Minister’s predecessors have always said to me, “You can’t, because you’ll create a nimby world where anybody who doesn’t like something simply puts up their hand.” I would say no. Indeed, a piece by the National Federation of Builders that was based on an article I wrote said, “You can’t do this.” I am sure its concern was that, should we get the community involved in nimbyism, it would simply block development.

If we were to manage the process properly and say that only a town or parish council could appeal, and if appeals had to be made on planning grounds, it would minimise the room for manoeuvre and for nimbyism to creep in. I recommend to the Minister that he look at this again. The intention is not to take power away from district councils; it is to get a better, joined-up system that works for communities, councils, central Government and all of us who want more houses in the right places. We want communities, not just blocks of flats.

I thank the Minister for his patience. Owing to the actions of a number of Governments over the years, our planning system is now broken. Although I commend the Minister’s predecessors for working hard to change that—much of what went into the NPPF and the new plans was good—it remains broken. It cannot just be a numbers game, which is what we focus on now. The system must take into account some of the other issues that have been raised. We have to look at how we will link house prices to wages, and I have made some proposals on how we do that. We absolutely need to address this key issue, so that people on average wages in Devon can actually afford to buy a house in a sensible timeframe, rather than having to rely on the bank of mum and dad and/or wait until they are 40. As Maslow said in his hierarchy of needs, a home is the most important thing for human survival.

It seems to me that the community must and should have a voice. I hope that the Minister will take my suggestions, and that he will look at them and digest them. I very much hope that he will stand up and say that many of these are good ideas. Indeed, it would be even better if the Minister were able to tell me that the present Government were already looking at them. I shall now sit down and look forward to hearing the Minister’s and other contributors’ thoughts on this very thorny issue.

--- Later in debate ---

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

Thank you, Mr Hollobone; it is a pleasure to serve under your chairship. I congratulate the hon. Member for Newton Abbot (Anne Marie Morris) on securing this particularly important debate.

Since 2010, housebuilding has fallen to its lowest level since the 1920s. Rough sleeping has risen every year, rents have shot up faster than incomes, there are almost 200,000 fewer homeowners and new affordable housebuilding is at a 24-year low. Meanwhile, average house prices are at a record high of almost eight times the average income, yet we wonder why home ownership is at its lowest level in Britain since 1985.

In reality, although 1.2 million people are on housing waiting lists across our country, this Government delivered just 6,464 social homes in 2017-18. That is simply diabolical when compared with the 150,000 social homes delivered every year in the mid-1960s. The evidence is clear: it has been done before and can be done again.

The housing crisis is about the reality behind those statistics. I am tired of the endless reports, countless debates, fruitless words and lack of action. The Government have a house building target of 300,000 new homes per year, but they simply cannot keep willing the completion of more homes without finding the means to provide them. Here are some of those means.

[Hugh Gaffney (Coatbridge, Chryston and Bellshill) (Lab)]

North Lanarkshire Council is the biggest homeowner in Scotland. Some £160 million has been invested in 1,000 houses, on top of 800 new houses. North Lanarkshire is leading the way in Scotland. More of that can be done by the Scottish and UK Governments.

[Siobhain McDonagh]

I thank my hon. Friend for his intervention.

First, it is time to burst the myth that the green belt is green and start using the non-green sites for the homes that our children so desperately need in London alone. There are garage sites, waste plants and deserted scrublands all posing as green-belt land. Would we rather use them for homes that our young people can afford to buy, or are we happy for scrappy plots of land and non-green-belt land to remain wrongly designated as green belt just because of the potential furore that de-designation may cause?

Secondly, the Government should introduce planning policy guidance so that all new building on public sector sites is considered for social housing in the first instance. Thirdly, is it not time to end the taboo and encourage the building of modular homes? They are cheap, efficient, quick to build and can last for up to 120 years.

Fourthly, why are the Government not introducing more punitive action for the 200,000 homes currently lying empty across our country? Fifthly, how about increasing the surcharge for the 10% of people who own a second property before so many even own their first? Sixthly, the Government should introduce punitive or preventive action for land bankers. After all, if the Government started unlocking their own land bank, the private sector would rush to follow.

Seventhly, what about reducing the proportion needed to buy into shared ownership, from 25% to 5%? Eighthly, could the Government not incentivise more building of specialised accommodation for the elderly, thereby releasing some of the current housing stock? Ninthly, it is time to prioritise locally, especially in the capital. Londoners should have first option on local properties before they are sold off internationally and are likely to remain empty.

Finally, how about directing pension funds into residential investment? As my hon. Friend the Member for Croydon Central (Sarah Jones) will know, Legal & General bought 167 homes in Croydon and leased them back to the local council over 40 years, for homeless families. Those are just some suggestions. In the name of all the families who we see every week at our advice surgeries, let’s get building!

Oral Answers to Questions

Siobhain McDonagh Excerpts

Monday 23rd July 2018 Commons Chamber

[Kit Malthouse]

I am sure that there are many in Redditch who breathe a sigh of relief that the Conservatives are in control of that particular part of the country, championed by such a wonderful Member of Parliament. My hon. Friend is absolutely right: it is still the case that more affordable homes have been delivered in the last seven years than were delivered in the last seven years of the previous Labour Government.

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

7. If he will meet the National Trust to discuss the potential effect on levels of housing need in local authority areas of that trust's proposals to increase rents to market levels on all its housing stock; and if he will make a statement.

[The Minister for Housing (Kit Malthouse)]

I will be more than happy—in fact, it would be a pleasure—to meet the National Trust.

[Siobhain McDonagh]

My constituent, Maria Bentley-Dingwall, has lived in her rented National Trust property for the last 12 years. She pays rent of £850. This is now going to increase to £1,450 per calendar month, which will be considerably in excess of the local housing allowance. As she is a disabled person, when she is eventually evicted for rent arrears, she will become the responsibility of the local authority, quite apart from the personal distress that that will cause her. Does the Minister agree that he should intervene with the National Trust to find out what it is doing and that, as a much loved body, it has a greater responsibility than tearing out the maximum amount of rent from its properties?

[Kit Malthouse]

The hon. Lady makes a strong case for her constituent, as we would expect, and as I say, I would be more than happy to meet the National Trust. I know that it is reviewing its property policies generally and has decided to overcome the problems created by the modern ground rent regulations that are affecting many of its tenants. It is, however, a charity and it has to balance its legal obligation to maximise its income against its charitable obligation to those it cares for.

--- Later in debate ---

[James Brokenshire]

The Government are clear that the Mayor can and should do more to increase housing delivery and it is vital that the new London plan provides the strategic framework to achieve that. The Mayor must show strong and proactive leadership and take responsibility for creating the right conditions for development, but it is also about Labour councils in London. It is notable that, in Haringey, it appears that the council has put left-wing ideology in the way of 6,400 more homes. It is really concerning that Labour appears to be putting politics ahead of people.

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

T6. In tune with the comments by the Housing Minister during these questions that he thinks that the answer to the housing crisis is to build more homes, can he tell the House whether he will be accepting my amendment to the national planning policy framework to build on ungreen green-belt land within 10 minutes of a London train station?

[The Minister for Housing (Kit Malthouse)]

I am hesitant to anticipate the release of the new planning framework that will be released, hopefully, shortly, but the hon. Lady will know that there is significant commitment by this Government to the green belt and, when that plan emerges, I will be more than happy to have a conversation with her about her plans.

Homes (Fitness for Human Habitation and Liability for Housing Standards) Bill

Siobhain McDonagh Excerpts

Committee Debate: House of Commons
Wednesday 20th June 2018 Public Bill Committees

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

For all those people who are cynical about MPs, the Bill stands out as a shining light. My hon. Friend the Member for Westminster North regards very seriously her role of doing casework and understanding the problems of her constituents in a built-up urban area where the demands for housing outstrip supply, and where landlords can behave as they choose.

We are all beginning to understand that our local authorities are either unable or unwilling to take action to resolve many of those problems. That is either because they do not have the finances to do so or because they are concerned that, if more private tenants are evicted by landlords, they have to take on the responsibility for rehousing them and are unable to do so.

This is a great Bill born out of a great place by a great campaigning MP, but our constituents and vulnerable tenants will be able to take action only if they have support. Once again, we will fall back on the great work of our local law centres and legal advice agencies, which are also experiencing great demand and difficulty. I would be grateful if the Government took on board what needs to be done to allow the words on the page to become reality and enable some of our most vulnerable constituents to take action against their landlords.

[Mrs Wheeler]

It seems appropriate to wrap up my comments here. It is great news that everybody on the Committee completely agrees with the Bill. In broader terms, everyone deserves a safe and decent place to live, regardless of tenure. The vast majority of landlords work hard to ensure that their tenants live in decent and properly maintained properties. The majority of tenants are satisfied with their home, but for a minority of tenants the picture is very different.

According to the English housing survey, the social rented sector contains about 250,000 properties out of 4 million-plus with at least one serious hazard. The situation is worse in the private rented sector, where approximately 800,000 properties contains at least one serious hazard. It is unacceptable that anyone should have to live in a property with serious hazards, and we are determined to ensure that all landlords either meet their obligations or are forced to leave the sector. Local authorities have strong and effective powers to require landlords to carry out improvement works, and we expect them to be used.

We recently introduced a range of additional powers through the Housing and Planning Act 2016. Those powers include the abilities to impose a civil penalty of up to £30,000 and to ban the most serious and prolific offenders, potentially for life. We know that many local authorities are already making good use of the powers. Torbay Council, for example, has used revenue from civil penalties to fund an extra enforcement officer for its housing team. There is more to do, however. That is why the Government strongly support the Bill, which will help drive up standards in rented homes and ensure tenants get a fair deal.

The Bill will not introduce new obligations on landlords. They can already be required by their local authority to rectify any serious hazards in their property. The Bill empowers tenants to hold their landlord to account in the courts, rather than having to rely on the local authority to take enforcement action on their behalf.

--- Later in debate ---

[Mrs Wheeler]

Indeed. Interestingly, when a tenant might take a landlord to court because of a hazard, we know that 75% of those hazards are visible, such as uneven floor surfaces, excess cold or damp and so on. Where a tenant has concerns, they should ask the local authority to inspect and determine what level of hazard it is. Bodies such as Citizens Advice and Shelter can also give advice on such matters.

[Siobhain McDonagh]

Is the Minister aware of how many London boroughs have capital funds to do works in default where such problems in the private rented sector are very high?

[Mrs Wheeler]

That is exactly why we have got the fines of up to £30,000 that can be levied. As I have explained, Torbay Council has been on the front foot. It has now employed another person because of the fines it has levied and received. I think that answers the hon. Lady’s question. Councils need to step up.

It was clear on Second Reading that there is wide cross-party support for the Bill and general agreement that we need to act now to require landlords to proactively ensure that their properties are free from hazards at the outset. Not to do so would be unfair on good landlords who are in the majority and who do keep their properties properly maintained. It would also mean that those tenants living in a property with serious hazards would be unable to hold their landlord to account.

It is important that tenants clearly understand their rights and know what to do if something goes wrong. Subject to the Bill successfully receiving Royal Assent—we hope it will be in spring 2019, to answer the question of the right hon. Member for Wentworth and Dearne—we will produce a short guidance document for tenants that will explain their rights under the legislation and how to represent themselves in court, should that prove necessary. The guidance will complement the “how to” series of guides produced by my Department, which have recently been revised and expanded. The revised versions will be published shortly. Tenants are already protected from retaliatory evictions where the local authority has confirmed that there is a legitimate complaint regarding a hazard.

The Bill sits very well with the range of initiatives that the Government have taken to improve conditions in the private rented sector. We have introduced fines of up to £30,000 for a range of housing offences. We also introduced legislation allowing tenants and local authorities to reclaim up to 12 months’ rent for offences such as failing to comply with an improvement notice or a prohibition order. We have also introduced banning orders, potentially for life, preventing the worst landlords from renting out property. We are not resting on our laurels, however; we know there is still much more to do to drive up standards. That is why we are legislating to ban letting agent fees for tenants, thereby reducing costs and improving affordability.

Housing and Homes

Siobhain McDonagh Excerpts

Tuesday 15th May 2018 Commons Chamber

[The Secretary of State for Housing, Communities and Local Government (James Brokenshire)]

I beg to move,

That this House has considered housing and homes.

I am delighted to be leading this debate in my new role as Housing Secretary. I pay tribute to the reforms so ably led by my predecessor, my right hon. Friend the Member for Bromsgrove (Sajid Javid).

I look forward to working with colleagues on both sides of the House as I consider the next steps on the Government’s housing agenda, but our priority—my priority—remains to build the homes our country needs. It is to deliver on the ambition of families and of those starting out in life to have a home that they call their own, to give people security in their homes, and to take further action to combat homelessness and rough sleeping.

I know there is more to do to fix the broken housing market, and to provide the opportunities and, quite simply, the stability that previous generations took for granted and that is being denied to today’s families and young people. It feels unfair, and that is because it is; they are being held back through no fault of their own, and as a result our country is being held back. So we need to act to help people and address the fact that we simply need to build more homes. This Government understand that and understand what is needed: more homes of the right type and quality and in the right places. We must ensure that they are affordable and that the housing market works for all parts of our community.

We are making good progress on housing supply. We have delivered over 1.1 million homes since 2010. In 2016-17 some 217,350 new homes were delivered, the highest number in all but one of the last 30 years. Since 2013 we have helped over 158,000 households on to the housing ladder through our Help to Buy equity loan, and 81% of them were first-time buyers. At the autumn Budget we cut stamp duty for first-time buyers, benefiting 69,000 households to date, and also announced over £15 billion of new financial support for house building over the next five years. This brings our total support for housing to at least £44 billion over this period.

However, I know we need to do more to deliver an average of 300,000 homes a year by the middle of the next decade. It will not be easy, but we are determined to get there, and this requires a major push in three areas: improved planning and faster build-out; delivering infrastructure; and diversifying the house building market.

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

Is the right hon. Gentleman aware that the last time the Government’s target of 300,000 homes in a year was met was in 1969, when not only was the private sector developing, but so too were the councils and housing associations? What can he do to ensure that councils and housing associations can expand their activities?

[James Brokenshire]

The hon. Lady will be aware of the borrowing cap issue and how we have made changes around that, and I also gently point out that when her party was in power house building starts fell by 45% in 12 years and the number of homes purchased in England fell by over 40%. I make that point to underline that there are challenges that have existed for many years under a number of different Governments, and that is why this Government are determined to make progress and address the key issues that I have highlighted.

First, on planning and build-out, this Government recently set out a bold and comprehensive approach via our new national planning policy framework. This will help us to build more high-quality homes in the places people want to live. The consultation recently closed and my Department is looking carefully at the responses we received. The framework implements reforms from the housing White Paper and further steps announced at the Budget. It also strengthens our commitment to protect the green belt. Our framework makes it clear that local authorities must pursue all options, such as brownfield land and increasing density on urban sites, before looking to the green belt. Alongside this, we have announced our intention to consult on a permitted development right to build upwards.

The framework also clarifies how our new method of assessing housing need will work. It will help all communities to have a clear understanding of the homes they need while maintaining the importance of local and neighbourhood plans.

Planning permissions are up. That is good news, but a planning permission is not helpful if it is not turned into a home. That is why our housing delivery test is tackling unjustified delays in housing delivery. Local authorities must be accountable to make sure that homes in their area are not only planned but delivered.

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[John Healey]

The hon. Gentleman is a hard-working, loyal Back Bencher, and I have to give him credit. He is making some of the same arguments the Secretary of State made when he said the Government are making good progress on supply. In truth, a full decade on from the worldwide financial crash, house building is still below the level it was before that global downturn.

[Siobhain McDonagh]

Is my right hon. Friend aware of the article in The Huffington Post at the beginning of the week, suggesting that 1,000 homeless families from Birmingham have been housed tens of miles away from their schools, families and jobs? Does he agree that that is probably because London councils are busy placing their homeless families in Birmingham, because that is the only way they can afford to house them, given that the public purse spent £1 billion on temporary accommodation last year?

[John Healey]

My hon. Friend is right. The number of families—now nearly 80,000—living in temporary accommodation because there are no homes available, let alone homes in their own area, is a scandal that shames us all. I am interested to hear what the Secretary of State has to say. It is not just in Newham; he has been in government since 2010, since when his own council has seen a fivefold increase in the number of families without a home living in temporary accommodation.

The Secretary of State said that we are now investing more in affordable homes, and he cited £9 billion, which of course is the figure for the rest of this Parliament. Even if that money is spent, spending will still be half the level it was in Labour’s last year. To give people a measure of it: in Labour’s last year, spending on building new, badly needed affordable homes was £4 billion; and last year, under this Government, whatever they say, it was less than half a billion pounds. No wonder we saw 40,000 new social rented homes started in 2009, in that last Labour year, and last year we saw fewer than 1,000.

The £28 million for the Housing First pilots is welcome, but let me gently say to the Housing Secretary that that is a small drop when compared with the £996 million the National Audit Office says is the annual cut in the Supporting People programme since 2010—a programme to help the homeless. Finally, the right hon. Gentleman makes the welcome argument that we need more social rented homes, but what does he say to the residents in his own area, where 6,022 are on the council waiting list and the number of new social homes rented homes built last year was zero? He has a lot to pick up on and a lot to learn.

We have seen eight years of failure on all fronts since 2010, and it is no wonder that the Prime Minister admitted that housing was a big part of why her party did badly at last year’s general election. As the Secretary of State has said, as the Prime Minister has said and as I have argued, the housing market is broken, and housing policy is failing to fix it.

I say to Conservative Members that at the heart of Tory policy is the wrong answer to the wrong question. Ministers talk big about total house building targets, but what new homes we build and who they are for is just as important as how many we build. Simply building more market-priced homes will not help many of those who face a cost-of-housing crisis, because that can influence prices only in the very long term. We have to build more affordable homes if we want to make homes more affordable, and the public know that. It is why eight out of 10 people now say the Government should be doing more to get new affordable homes built.

The public expect much more of Ministers—more urgency, more responsibility, more investment and more action to fix this broken housing market. That is why Labour has set out a bold, long-term plan for housing. It is what people need from their Government. We have made the commitment, with the plan to back it, that under a Labour Government we would see 1 million new genuinely affordable homes built over 10 years: the largest council house building programme for more than 30 years, building those new affordable homes at a rate we have not seen in this country since the 1970s. The very term “affordable” has been so misused by Ministers that it is mistrusted by the public, so Ministers should drop it and replace it with a new Labour definition linked to local incomes, not pegged to market prices.

We must build for those who need it, including the most vulnerable and the poorest, with a big boost to new social homes built as part of the programme, but we should also build Labour’s new affordable homes, both to rent and to buy, for those in work and on ordinary incomes, who are priced out of the housing market and being failed by current housing policy. These people are the just-coping class in Britain. They are the people doing the jobs we all depend on—IT workers, delivery drivers, call centre workers, teaching assistants, electricians and nurses. They are the backbone of our economy and the heart of our public services. This is the same Labour aspiration that led Aneurin Bevan to talk of the “living tapestry” of mixed communities as he led the big house building programme after the second world war.

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[Siobhain McDonagh (Mitcham and Morden) (Lab)]

It is a delight to follow the hon. Member for Harrow East (Bob Blackman), who had many very good ideas, but we have to talk about the green belt in London. There is enough land to build a million homes that are 10 minutes from tube and train stations and an hour’s journey away.

What is the green belt? What is the land that I am talking about? Is it nice, pleasant and green—somewhere we would wish to spend the day with our families? No. I spent my bank holiday going around and looking at some of these sites. I started over in Hillingdon, where I saw an illegal waste tip and stood on 20 feet of rubble that could be land on which we could build 3,500 new homes. I went along the A40 to Ealing, where I saw, close to a mosque, two schools and a train station, a site covered with building rubble and surrounded by chain-link fencing. I then went to the pièce de résistance: a tyre-changing shop and car-valeting service at Tottenham Hale, where a housing association had had its application for housing turned down because it was green belt.

At some point, we have to stop being frightened of the title and inspect what land makes up this designation. I do not want to build on a park that children use, or on rolling green fields that people enjoy on their bank holidays, but I do want to build on scrappy bits of land that nobody in their right mind would choose to regard as green belt.

[Mr Bacon]

Well said. Carry on.

[Siobhain McDonagh]

I would love to, but I do not want to stop anyone from speaking.

I ask hon. Members from all parties to support my early-day motion on this issue and to support the contribution that we have made to the consultation on the national planning policy framework, which has Members from both sides of this House, academics, housing associations and businesses saying, “Yes, stop it. Please look at the green belt.” We cannot keep talking about building more homes unless we have the means and the land to provide them, and we do, if only we all got a backbone and started looking at what we call the green belt.

Council Housing

Siobhain McDonagh Excerpts

Tuesday 27th March 2018 Commons Chamber

[Matt Western]

Yes, the figures do show that, but if one drills down into the number, one will find that they were provided by Labour authorities, and that is despite the borrowing cap that has been placed on them. Without that cap, to which I shall refer, far greater supply would be available.

Despite a promise that there would be one-for-one replacements, in some areas only one in five homes sold under the right to buy has been replaced. A new kind of publicly funded housing was introduced. Ministers branded it “affordable rent”, with rent set at up to 80% of the market price and thereby directly linked to often unaffordable private market rents.

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

I feel sure that my hon. Friend is likely to come to this point, but does he agree that the term “affordable rent” is an offence to the English language, because affordable clearly does not mean affordable if it is 80% of market rent?

[Matt Western]

I thank my hon. Friend for her informed intervention. My very next sentence was going to address that point. If something is already expensive, making it 80% of expensive is still expensive. That is where we find ourselves.

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[Matt Western]

My hon. Friend is, of course, absolutely correct. There is a suppression of building low-cost rental properties by local authorities. Those local authorities know that there is a need, and we must allow them to have that responsibility. Preventing them from supplying that housing has had a huge social and economic cost in our communities.

[Siobhain McDonagh]

Does my hon. Friend also agree that preventing councils from building housing means that it is unlikely that the Government will achieve their target of building 300,000 homes a year? The last time those figures were reached was in 1969 when both councils and housing associations were building, as was the private sector.

[Matt Western]

I thank my hon. Friend once again. Not only is she very well informed, but she is very experienced in this matter. She is absolutely right. The high levels of housing that we have needed over the decades have been delivered by a mix of providers. The crucial element that is now missing is the housing that is provided by local authorities. In its absence, we will never achieve the objective that has been set by the current Government. If we look through the decades, we can see how, in the post-war periods of the 20s and then the 50s and 60s, the local authorities were allowed to ensure a good supply of housing, which they recognised was needed because of the constraints in the private sector.

It is worth looking at this matter in the round. Over the past 10 years, the overall supply of new homes has seen an under-delivery of at least 80,000 to 100,000 homes a year. The result is that the UK faces a desperate shortage of at least 1 million homes. The Royal Institution of Chartered Surveyors now forecasts that we will reach a shortage of 1.8 million low-cost rental properties—that is just low-cost rental properties—by 2022.

All areas of the UK need housing, both public and private, but there is particular and desperate need for low-cost housing for rent. In my constituency there are more than 2,400 people on the housing waiting list. Homes are being built, but not enough are under construction to satisfy this social need. Once again, it is the wrong mix of housing that is being delivered. So, what is the answer? Of course, opinions vary, and the solutions presented to the electorate in last year’s election showed clear blue water between the main parties.

Recognising the critical importance of the housing shortage in its 2017 manifesto, Labour committed to the creation of a new department for housing. Importantly, on house building, we promised at least 1 million new homes over the next Parliament, which, as we now know, can be a very short time, and a new target of 250,000 new homes a year being built by 2022. Of those, at least 100,000 per year, or 40% minimum, would be genuinely affordable homes to rent and buy per year, including the biggest council house building programme in more than 30 years. If I am honest, I would personally like to see a lot more.

Subsequently, at the autumn party conferences, much time and debate were given over to this challenge, and the Prime Minister announced that she was committed to delivering 300.000 new homes. Specifically, she stated that £2 billion would be committed to helping the delivery of affordable housing, but, of course, that equates to just 25,000 properties. Clearly, housing is rising up the political agenda, and it is now one of the biggest domestic issues that we face.

My contention is that we now face a social crisis that is without precedent in the past 50 years. We have thousands of families without their own homes, waiting desperately for accommodation. We have record numbers of people rough sleeping. In my constituency of Warwick and Leamington, we have the highest number in terms of people per 1,000 of the population in the whole of the west midlands. Over the decades, the overall supply of housing has not delivered. Now must be the time to change that.

I am convinced that council housing was, is and will be the answer to our housing crisis. The Government need to release local authorities from the bounds of their borrowing cap and allow them to use their pension funds to invest in their communities. The use of public land holds the key to unlocking the potential to deliver this. Simply selling public land to the highest bidder will not solve anything. Land is the fundamental denominator in the cost equation of UK housing, and the planning process surrounding it needs urgent, radical reform.

Building more council housing solves at least two key problems: first, the lack of genuinely affordable housing for those who cannot afford market rents; and secondly, the chronic under-supply of housing that is the root cause of our housing crisis. As I said, there is a lack of genuinely affordable housing, with historically high waiting lists of 1.16 million households nationally. The easiest way to help those in need is to provide council housing. If we fail to do this, the result will be increasing homelessness, which we have witnessed more than doubling nationally since 2010. Another, less frequently made, argument is that building more council housing is the key to boosting overall supply, thereby addressing the root cause of the UK’s housing crisis.

The Government’s own target is to build 300,000 new homes each year, but the number of additional homes delivered in 2016-17 was 217,000, falling well short of their target. Although last year was the first year since the financial crisis in which over 200,000 homes were added—and I do applaud that—it was not enough, and the wrong mix of homes is being built. It is now stated that 300,000 houses would just about keep up with demand. Even if the Government hit this target, it is unlikely to bring down house prices and rents significantly. Also, in order to deliver those 300,000 houses, we need all providers to be supplying into the process.

History provides important lessons. It is no coincidence that house building rates reached their post-war peak during the 1950s and ’60s, when successive Governments were committed both to private sector and public sector house building. At the time, housing was plentiful and house prices stayed low, so that many on low to average incomes could afford to rent or buy their own homes. The success of the ’50s and ’60s shows that prioritising council housing need not be a partisan issue. Harold Macmillan, the Conservative Housing Minister from 1951 to 1954, initiated some of the greatest council house building programmes in order to meet his target of building 300,000 homes a year. During those Macmillan years, local authority housing made up 87%, 84%, 77% and 69% of completed dwellings per year respectively. This compares with just 1% in each of the past four years under this Government—or about 20% each year if we include housing associations as well as councils. Importantly, as I have illustrated elsewhere—I want to give credit where it is due—post-war Conservatives recognised that the public sector must build the homes that the private sector will not build during a housing crisis, which is where we find ourselves.

So why will this Government not do that? I would like to believe that it is not simply ideology that says that the state is bad while the private sector is good and will solve all our problems, because this crisis is holding back our country socially and—I cannot stress this enough—economically. I believe that there is a duty on one-nation Conservatives to come forward and urge the Government to commit to a mass council house building programme if they are serious about solving our housing crisis. In this light, I have recently relaunched, with my hon. Friend the Member for Stroud (Dr Drew), the parliamentary campaign for council housing. I invite all MPs to get involved with this cross-party initiative that aims to see more council houses being built.

Central Government policy currently acts as a disincentive for councils to build more council homes: first, because, there is next to no funding from central Government for the provision of council housing; and secondly, because there has been just £5.9 billion gross investment in social housing in 2015-16 compared with £10 billion in 2009-10, and the vast majority of this will be directed to housing associations.

This compares with the £22 billion forecast to be spent on housing benefit in the 2017-18 financial year, which is a direct result of not building the housing we need. Is that not ironic? Surely the Government would rather not line the pockets of landlords in the private sector, but prefer to invest long term in the council housing that we need. Is that not pragmatic? The additional £2 billion investment announced by the Prime Minister at the conference was welcome, but it will only provide a few thousand homes by 2021, including the affordable homes that can be anything up to 80% of the market rent. The money is not ring-fenced for genuinely affordable social rents.

As I said earlier, the borrowing cap stifles a council’s ability to build where councils can currently only borrow up to a certain amount to invest in council housing. I welcome the announcement in the Budget that the Government will raise the cap by a total of £1 billion for areas under high affordability pressures, but more needs to be done. If the Government accept that the cap stifles building, why will they not lift it entirely for all areas, as has been done in Scotland?

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[Dominic Raab]

I wish a happy birthday to my hon. Friend’s housing association, and I commend housing associations and local authorities up and down the country that have the ambition to get the homes built. We will do our bit as central Government, whether that is on planning reform or infrastructure funding, but we need local authorities to be up for this challenge, so I commend him for the work that he and his housing association are doing.

Since 2010, we have delivered over 357,000 new affordable homes, including over 128,000 homes at social rent. The hon. Member for Warwick and Leamington will know that, between 1997 and 2010, the number of social homes for rent fell by 420,000 and waiting lists rocketed by 70%.

[Siobhain McDonagh]

Would the Minister address the issue of what “affordable” means? What would he say to my constituent, Tracey, who could not move into a brand new London and Quadrant property where she needed it? She said, “Siobhain, I can’t move in there. Me and my partner work but we can’t afford the £1,000 a month rent.”

[Dominic Raab]

I say to the hon. Lady and her constituents across the board that we are absolutely restless to create more affordable homes so that they can realise their dream of home ownership. I encourage her and her party not to vote against cutting stamp duty for first-time buyers. I do not think that doubling council tax would be the answer, but I share her aspiration to help precisely those people to realise the dream of home ownership. We will be straining every sinew to make sure that that happens.

That is why we have announced a package of measures to help local authorities to build additional affordable homes for their local communities. The autumn Budget provided a further boost with the announcement that local authority housing revenue account borrowing caps will be increased by £1 billion, as was mentioned both by the hon. Member for Warwick and Leamington and the hon. Member for Stroud (Dr Drew). That is good news; it is something on which we are making progress. Local authorities will be able to bid for increases in their caps from 2019-20, up to that total of £1 billion by the end of 2021-22. Again, it will be for local authorities in areas of high affordability pressure, where authorities are ready to start building, but the decision should be welcome news. I hope that the hon. Member for Warwick and Leamington will take that back to his local authority.

The increase shows that we have listened to local authorities and hon. Members across the House who asked for it. It will come on top of the £3.5 billion-worth of borrowing headroom that is already available to local authorities across England. We will release information shortly about how councils can apply for an increase in their local housing revenue account cap. I am keen to see local authorities, wherever they are across the country and irrespective of where they are across the political divide, take up the opportunity to bid. I hope that local MPs will get on board and back them and that we can have a broader cross-party approach to this. I want to see that programme well subscribed, so I encourage all local authorities to think about how the additional borrowing can help them to deliver more council homes for their local community.

National Planning Policy Framework

Siobhain McDonagh Excerpts

Monday 5th March 2018 Commons Chamber

[Sajid Javid]

I thank my hon. Friend for all the work he has done on planning and all the advice he continues to provide. I can assure him that the formula we have set out today in the draft NPPF is no different from the one that was set out in the September consultation.

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

There are 19,334 hectares of unused, unloved, ungreen green-belt land around London’s train stations—enough to build 1 million homes. On the day that the Daily Mirror announced that £1.1 billion was spent on horrible temporary accommodation last year, is it not right that that land should be used to provide homes in the areas people want to live in?