Affordable Housing (London)

Debate between Albert Owen and Chris Philp

Wednesday 9th September 2015 Westminster Hall

[Chris Philp (Croydon South) (Con)]

I beg to move,

That this House has considered affordable housing in London.

[Interruption.] We seem to have been attacked by some sort of ghost in the acoustic system.

As long ago as 1946, Anthony Eden laid out a vision of a property-owning democracy, describing ownership of property as

“a reward, a right and a responsibility that must be shared as equitably as possible among all our citizens.”

I hope that both Government and Opposition Members agree with that sentiment. Demand for housing in London is at record levels. The population of our city recently exceeded the pre-war high of 8.6 million, overtaking the peak in 1939. It is growing by 100,000 people per year. That rate is forecast to continue, and by 2030 the population of our city will exceed 10 million. That population growth means that each and every year we need to build 50,000 more homes in the city to keep pace with population demand. I ask Members to keep that number in mind as we continue the debate.

The challenge that our city faces is that for the last 20 years or so we have been building only between 15,000 and 25,000 new homes a year, meaning that each and every year we are building fewer houses than required to meet population demand. That situation is clearly not sustainable. I have done some calculations for the period since 2000: in that time, we have built about 300,000 fewer homes than required to meet population demands, so we have that accumulated under-supply in our city. As a consequence, there are enormous pressures on the availability and affordability of houses in this city, as Members know from their constituency casework. [Interruption.]

[Albert Owen (in the Chair)]

Order. We have a problem with the acoustics. Will you try switching your microphone off? [Interruption.] I am told there might be no recording, so please turn it on again—we need a report. We shall carry on.

[Chris Philp]

As Members know from their constituency postbag, there is enormous pressure on the affordability and the availability of housing in our city. That is why 25% of 20 to 35-year-olds are still living with their parents. As the father of two-year-old twins, I very much hope that that is not the case in 18 years’ time. The average age of a first-time buyer in this city has risen to 37, so there are real challenges to do with the availability and affordability of housing.

Some people, such as the hon. Member for Islington North (Jeremy Corbyn), may talk about rent controls and so on, but at the most fundamental and basic level the issue is one of supply and demand: demand is exceeding supply. The demand side of the equation— population growth—is hard for the Government to regulate, and the only component that they can influence is probably immigration, which is clearly a big driver of housing demand in London, so it is right that the Government should want to get immigration under control. The other side of the equation is supply. By increasing supply we can alleviate the pressures to which I have referred.

--- Later in debate ---

[Albert Owen (in the Chair)]

Order. This debate has been oversubscribed, and just to be fair, the Minister has agreed to give two minutes at the end to the mover of the debate.

[Chris Philp]

One minute.

[Albert Owen (in the Chair)]

It will be down to one minute. The Minister has offered two minutes, and we are using up time arguing over a minute or two. The hon. Member for Ealing Central and Acton (Dr Huq) and the right hon. Member for Tottenham (Mr Lammy) will each make a two-minute contribution. If the Front-Bench spokespeople keep their contributions to eight minutes each, we will get everybody in. David Lammy—two minutes, and you will be cut off.