Affordable Homes Programme

Afzal Khan Excerpts

Tuesday 25th April 2023 Westminster Hall

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

I beg to move,

That this House has considered the Affordable Homes Programme.

It is a pleasure to serve once again under your chairmanship, Mr Hollobone. I am so glad to have secured this important debate on the affordable homes programme, and I am immensely grateful to the House authorities for granting it.

Affordable housing is one of the most depressing and urgent issues facing the good people of Slough and communities across our country. Rarely does an advice surgery go by without a constituent raising concerns about their dire housing situation. Although I commend the bold ambitions of the affordable homes programme, which aims to build 180,000 new homes outside London by March 2026, it is clear that when it comes to delivering on housing the Government continue to fall far short of the mark. The reality is that we face an affordable housing crisis. The basic promise made to each generation that if they work hard they can one day own their own home has been broken.

I speak to young people in their 20s and 30s, often with children, who tell me the same thing: they have as much chance of settling on the moon as they have of buying a home in Slough. This week the estate agent’s window shows a four-bedroom house in Slough for £750,000, a two-bedroom bungalow for £525,000 and a one-bedroom flat for £300,000. Even with an elusive 5% deposit mortgage, those prices are way beyond the reach of shopkeepers, teachers, nurses, home care assistants, police officers, firefighters and even junior doctors.

Since the Conservatives came to power about 13 years ago, 800,000 fewer households under 45 own their home, and 1 million more people are renting—so much for the “property-owning democracy”. The answer would be a renewed social rented sector, but the number of truly affordable homes being built has fallen by 80%. The system is broken and the Conservative Government are doing next to nothing to fix it.

[Afzal Khan (Manchester, Gorton) (Lab)]

We are all aware of the housing crisis that Britain faces, but I am pleased we have a Labour-led council in Manchester that understands the problem and has set out a plan to build at least 10,000 affordable homes across our city in the next decade, with more than 1,000 affordable homes and 250 new council houses in the coming year. Does my hon. Friend agree that the Tory Government in Westminster are failing to match the vision of Labour councils to tackle the housing crisis?

[Mr Dhesi]

I thank my hon. Friend for that intervention. I commend Manchester City Council, the Mayor of Greater Manchester—my good friend Andy Burnham—and others who have made sure that councillors and Members of Parliament have come together to have that ambitious house building programme, but it seems the Government are asleep at the wheel. They have made bold statements, but are not following through. I am sure it has nothing to do with the fact that one in four Tory MPs are private landlords.

The much respected organisation Shelter reports that there are 1.4 million fewer households in social housing than there were in 1980. Combined with excessive house prices making homes unaffordable, demand has been shunted into the private rental sector, where supply has been too slow to meet need. That means above-inflation increases in rents, especially in the south of England and in places such as Slough.

On the affordable homes programme, the National Audit Office reports that there is a 32,000 shortfall in the Government’s original targets for building affordable homes. It goes on to say that there is a “high risk” of failing to meet targets on supported homes and homes in rural areas. Ministers’ targets will be confounded by double-digit inflation, soaring costs of materials and supply disruption, yet the Government seem to have no clue how to mitigate those factors. Perhaps the Minister will enlighten us today. As the NAO report outlines, the issue is not just the number of homes, and I share the NAO’s concerns that there is also a lack of focus on the quality, size and environmental standards of the new homes. Perhaps the Minister will also be able to provide some reassurance on those important points.

The NAO is not the only one with concerns about the delivery of the programme. I am pleased that the Chair of the Public Accounts Committee, my hon. Friend the Member for Hackney South and Shoreditch (Dame Meg Hillier), is here for the debate, and I am sure she will attest to the fact that in December the Committee’s report outlined that the Minister’s Department

“does not seem to have a grasp on the considerable risks to achieving even this lower number of homes, including construction costs inflation running at 15-30% in and around London.”

Exactly when will the revisions to the 2021 plan be published, as recommended and agreed by the Minister’s Department?

The fact is that we need a renewed national effort to fix the housing market and fulfil the promise of owning one’s own home to the next generation. That national effort may well have to wait for the election of a Labour Government, which will have a target of 70% home ownership.