Housing: Long-term Plan

Alison Thewliss Excerpts

Tuesday 9th February 2016 Commons Chamber

[Alison Thewliss (Glasgow Central) (SNP)]

I am glad to be able to contribute to this debate on housing, because it is a clear example of a tale of two Governments and of the positive effect that the different approach taken by the SNP Scottish Government is having on housing provision in Scotland.

I read with interest the Liberal Democrat motion before us today, for the Liberal Democrats’ record on housing under the coalition Government was not great. They continually voted with the Tories in favour of the bedroom tax, and even voted against exempting social tenants who were carers or had disabilities. The SNP in Scotland has been working to mitigate this catastrophic policy and its effects on vulnerable people. The Scottish Government have committed £90 million since 2013 to mitigate the impact of the tax on 72,000 households in Scotland.

In Glasgow alone, £18.8 million has been spent providing community care grants and crisis grants from the Scottish welfare fund to mitigate the welfare reforms brought in under the coalition, with £8.3 million in discretionary housing payments to combat the bedroom tax specifically. The SNP has helped the most vulnerable, and I feel deeply for every household in England that struggles on unaided. The recent court cases demonstrate the deep injustice of this policy— many of those who had had their homes specially adapted for their needs have now lost their

“decent, affordable home to live in”.

In Scotland, too, the Lib Dems’ legacy on housing is very poor. Their motion talks of under-delivery by successive Governments, and how right they are. In coalition with Labour, the Lib Dems in government in Scotland built all of six council houses in a full four-year term in Parliament. Those were all in Orkney and Shetland. I see that the right hon. Member for Orkney and Shetland (Mr Carmichael) is not in his place. Since the Scottish Government took office in 2007, 162 council homes have been provided in that constituency—a 2,600% increase. That is a good record for us in Orkney and Shetland at least.

In Scotland we are doing all we can to increase housing stock, having already exceeded our five-year target for building 30,000 affordable homes. Figures released on 1 December last year show that 30,133 affordable homes have been built since 2011, which is 133 more than our target. Since 2007, the Scottish Government have seen the completion of 54,186 affordable homes. Social rented completions have also exceeded our target of 20,000. At the end of October last year those stood at 400 more than our target. The target of 5,000 council homes has been exceeded by 292. The Scottish Government have already invested over £1.7 billion in affordable housing to achieve this target, despite a 26% real-terms cut to Scotland’s budget since 2010. The Scottish Government are not stopping at that, however, and if re-elected in May, an SNP Government will press on with an even more ambitious target of 50,000 new affordable homes, a £3 billion investment that will help to create 20,000 jobs per year.

The Liberal Democrat motion notes the increase in training and apprenticeships that home building can bring, and, in that, it is absolutely correct. We have invested in apprenticeships in Scotland, and many of the developments I saw in my eight years as a councillor had significant apprenticeship programmes. Community benefit clauses have also been brought in as part of housing projects, which is really important for the local communities involved.

Investing in housing is particularly important in areas of deprivation, creating a virtuous circle that gets people out of poverty. The investment in affordable housing in Scotland over the current parliamentary term is creating an estimated 8,000 jobs per year.

In contrast to England, where the right to buy has been extended, the Scottish Government have increasingly restricted the scheme. In 2013, they confirmed that they will abolish it, and that will take effect soon. In July 2013, Nicola Sturgeon announced that they intended to do that to prevent the removal of properties from the social rented sector. She said:

“we can no longer afford to see badly needed homes lost to the social sector…That is why I am today announcing the final stage of the abolition of the Right to Buy—a decision that will safeguard Scotland’s social housing stock for the benefit of citizens today and for our future generations.”

In 35 years, the right to buy has resulted in the selling of about 2 million council properties in England and just shy of 500,000 in Scotland. In Scotland, more than 160,000 replacement homes were built—leaving a huge deficit in social rented housing. By scrapping the right to buy, the Scottish Government are keeping up to 15,500 homes in the social sector for the next decade.

The UK Government’s proposals involve selling off at least another 113,000 council properties to fund the selling-off of housing association properties, while so many people still languish on waiting lists. Conservative Members talk about people’s right to own their own home, but they forget completely about the rights of the people on these waiting lists, who sit in accommodation for the homeless and do not have the right even to rent, never mind to buy.

The maddening thing is that this obsession with the right to buy does not even save money for the public purse. Often, these homes do not end up being lived in by the purchaser. Figures presented by the Scottish Federation of Housing Associations in evidence to the Communities and Local Government Committee inquiry into the right to buy show that 40% of the properties purchased under the right to buy end up in the private rented sector, incurring higher rental costs for tenants and higher rates of housing benefit than if they had remained in the social rented sector. SFHA estimates that that equates to £324 million per year in Scotland alone.

The Government’s obsession with homeownership is resulting in the continuing depletion of social housing stock in a way that is unsustainable given the continued high levels of need. The proposals in the Housing and Planning Bill, which talks of pay to stay, ending secure tenancies, extending right to buy to the hard-pressed social rented sector and enforcing rent reductions on housing associations, all speak of a Government who do not recognise the significance and importance of being able to rent a decent home. Some people cannot afford to buy; some do not want to buy and are happy to be in social rented housing.

I hope the Liberal Democrats are moving towards improving their previous position on social rented housing. If they are, I welcome that. I also hope that they will look to Scotland and follow the SNP Government’s lead.

--- Later in debate ---

[Mr Bacon]

I am very pleased to hear that. There is quite a lot going on in the south-west, and I hope it will spread right across the country to all corners of our great kingdom.

According to a YouGov survey, 75% of people do not particularly want to buy the product of the volume house builders. That probably has something to do with the quality of the offer and the fact that there is not enough choice. However, they sometimes have to do so even though they would prefer to do something else. An Ipsos MORI survey discovered that 53% of people would like to build their own house at some point in their lives, that 7 million people would like to do it in the next five years, and that 1 million would like to start in the next 12 months.

There are a whole range of benefits in this approach. We get much better quality building standards—I am sure the hon. Member for Erith and Thamesmead would approve of this—because people who are investing in their own homes are not doing it to get a margin that they can sell on in the way that, perfectly understandably, a volume house builder tries to do. Rather, they will try to get the highest quality fabric, and the highest thermal performance standards, that they can possibly afford. It also helps the skills agenda. Some people are doing it themselves, while some are commissioning others to do it but often still get involved at some level or other. There is a tremendous opportunity for the apprenticeships programme. Locally built housing causes money to stay in the local economy.

Self-builders are often much more community-spirited. They are much more likely to stay and to become pillars of their local communities; they are the ones who get on to the parish council. It is great for helping the vulnerable. What I find so depressing about the droning I have heard from the Opposition Benches for some years now is that there is no sign of radicalism. Somebody who goes on to the Community Self-Build Agency’s website—I encourage anyone to do this—will read the following on the front page:

“I was encouraged by the local council to apply for the CSBA Scheme, I rang them and said; ‘I am disabled, unemployed, on benefits and I know nothing of building.’ They said; ‘You fit all the criteria!’ I have never looked back.”

Rod Hackney said:

“It is a dangerous thing to underestimate human potential and the energy which can be generated when people are given the opportunity to help themselves.”

That is what this is really about.

I recently spoke to the headteacher of a small, rural high school in my constituency. It is always going to be a small school, because of the demographics, and it finds it difficult to recruit teachers. I told him, “You and the governors could tell a potential recruit in a difficult-to-fill subject, ‘If you come to our school, we’ll help you create your own house, which you could either rent or perhaps buy from us in the future.’ A history teacher could have a library for a couple of thousand books, and an arts and crafts teacher could have a workshop. Do you think that would help you recruit teachers?” He said, “God, yes, it would.”

The head of children’s services at Norfolk County Council recently told me that it is very difficult to recruit senior social workers with lots of experience of leading teams. Under the Self-build and Custom Housebuilding Act, a county council could register as an association of individuals; a planning authority would then be required to provide them with serviced plots. The potential of the Act is extraordinary. It gives us a chance to change the equation and how things are done.

The hon. Member for Westmorland and Lonsdale said in his opening remarks that we cannot rely on the dysfunctional market. Of course we cannot. It is touching that there are people who think we have a functioning housing market, and the fact that he refers to the market in that way suggests that he is one of them. What we have to do is fix it. In markets, people have real choice. My hon. Friend the Member for Pudsey (Stuart Andrew) said earlier that there have been decades of under-investment. I was going to intervene on him, but I did not, to ask him why he thinks we have managed to have enough shoes for everyone without decades of Government investment in the shoe industry. No one says that we need a national shoe service in order to solve the problem of not having enough shoes. What we need is a market that actually works.

[Alison Thewliss]

Perhaps that is because shoes are not particularly expensive, whereas a flat in London can cost £500,000.

[Mr Bacon]

The word “expensive” is a function of supply and demand, and the word “affordable” is itself deeply laden. If there were enough supply, the price would not be as high relative to income. At present, the average cost of an average dwelling in South Norfolk and in Harlow is about 8.2 times the average income, while in Hertfordshire the average cost is 13.6 times the average income. If we had a market in which supply rose to meet demand, those statistics would not be so out of kilter. That is what we need to fix.

The hon. Member for Westmorland and Lonsdale said that it takes bravery to take the community with you. No, it doesn’t! It does not take bravery to stand up for one’s constituents and say, “I want you, your family and your children and grandchildren to have somewhere to live, and if we make it beautiful and somewhere that people would welcome, the people in your community would welcome it, too.” We have a revolution on its way, and people should get with the programme or get out of the way.