Affordable Housing (London)

Andy Slaughter Excerpts

Wednesday 9th September 2015 Westminster Hall

[Chris Philp]

Let me take the latter point made by the right hon. Member for Tottenham (Mr Lammy) before coming on to the hon. Lady’s. On affordability, supply and demand clearly drive prices. I am delighted that under the current Mayor of London we have delivered 3,000 council houses, whereas under the previous Mayor virtually none were delivered. Taken together, the number of housing association starts and local authority starts under this Government is 5% higher than under the Labour Government.

[Andy Slaughter (Hammersmith) (Lab)]

Will the hon. Gentleman give way?

[Chris Philp]

I would like to make a little progress first; I will give way in a moment. The Mayor of London, my hon. Friend the Member for Uxbridge and South Ruislip (Boris Johnson), has brought forward 94,000 affordable units during his mayoralty —a considerably larger number than was brought forward by his predecessor, Mr Livingstone. We have a good track record on affordable housing, but more clearly needs to be done.

On foreigners buying property in London, there are two elements: who is buying it, and are they occupying it? On foreigners buying it, the phenomenon tends to be concentrated in prime central London places, such as Kensington and Chelsea—

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[Chris Philp]

It is certainly not my intention to make the debate rabidly party political—I am not sure that I have been called “rabid” before, but I thank my right hon. Friend for introducing the adjective. I want this to be a non-partisan and constructive discussion about London’s housing. I hope there are things that we can agree on during the debate.

[Andy Slaughter]

Does the hon. Gentleman agree that his Government’s policies to force the sale of high-value council homes in London and to restrict or cut the rents without compensating councils, which is completely decimating council building programmes, are not helpful in providing more affordable housing?

[Chris Philp]

I am sure that the Minister will comment later, but the sale of valuable houses might provide councils with the opportunity to use the proceeds to build two or three new social housing units. For example, I used to be a councillor in Camden and some of its housing stock, such as some units in Bloomsbury, was worth well in excess of £1 million—one of those units was occupied by the hon. Gentleman’s former colleague, Mr Dobson. Were such a unit to be sold, we could have built two or three council or social housing units elsewhere in Camden or London. There is some merit in that.

On the rent reductions, making housing more affordable clearly means making rents cheaper, which will help housing association and council tenants to pay lower rents. There are opportunities to force efficiency savings in those organisations. Most branches of government—local authorities, the police, every Department—have made savings over the past four or five years, quite rightly, and it is fair to ask other organisations to make savings and pass those on to their tenants.

[Andy Slaughter]

The hon. Gentleman should have read his brief a little more carefully. In places such as Camden, it will often not be possible to find the land on which to build to replace those houses that are sold. If it can be found, under his Government’s rules, it is likely that the newly built homes will also have to be sold. The fact is that councils in London have tried hard to have house building programmes. The effect of the rent cut may be good in itself, but unless Government money is supplied to compensate for it, there will be no council housing building programme for London. He needs to address those points if we are to take him seriously.

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[Chris Philp]

No. I am simply saying that where there are very high-value council properties, it makes sense to sell them and free up money to build more properties. Ideally, those would be in the same borough, but if there is a lack of land—I am not sure that Hackney has a particular lack of land; that is more a problem for the inner London boroughs, such as Camden, Westminster and RBKC—and it is impossible to find new land in the borough, we should look a little more widely. That seems to be common sense. If we can sell one unit and build three, that seems to be a trade-off well worth—

[Andy Slaughter]

Will the hon. Gentleman give way?

[Chris Philp]

I will make a little progress. I have been unusually generous.

The Mayor of London has made progress during the seven years of his mayoralty. He has brought forward 94,000 affordable houses since 2008, which—to respond to the point made by the right hon. Member for Tottenham—is extremely welcome. The 20 housing zones established jointly between the Government and the Mayor of London, with £400 million of investment, are also extremely welcome. In those zones the local authority, the Mayor and the Department for Communities and Local Government get together to put in place the planning, infrastructure and support required to deliver large-scale housing. Those zones will help, and the £200 million London housing bank will help as well.

There are also specific projects that I am sure we are all keen to encourage. For example, the Mayoral Development Corporation is bringing forward 24,000 units on derelict industrial land at Old Oak Common in Ealing. We need to see far more schemes—

[Andy Slaughter]

Will the hon. Gentleman give way on that point?

[Chris Philp]

Is it partly in Hammersmith? [Interruption.] The fact that it goes over three London boroughs shows that we need MDCs to step in and make things happen when large numbers of public bodies are involved. In my own borough, the Croydon growth zone is important; it will, I hope, bring forward 4,000 houses. The Brent Cross regeneration project is another important scheme. Those specific projects, in which the Government, the Mayor of London and the boroughs focus together on bringing forward large numbers of houses in a particular area, are very effective. I strongly encourage the Mayor and the Minister to do even more in that way.

I also commend the Greater London Authority for its programme of disposing of its public land for housing. Over the last couple of years, the GLA has disposed of 98% of the land that it owns—that excludes Transport for London, by the way—for public housing. That includes the site of the old Cane Hill hospital in my constituency—which is directly overlooked by my house—where Barratt Homes is currently building 650 houses. That is an example that other public bodies should follow.

In that vein, I welcome the London Land Commission, which met for the first time on 15 July. Its duty is to catalogue surplus public sector land that can be brought forward for housing. TfL has 6,000 acres that could be used across 600 sites; the NHS has 1,000 acres, 15% of which is potentially surplus to requirements. There is a huge amount that can be done by bringing forward public sector land for house building.

I also strongly support the idea of using local development orders to effectively grant outline planning consent on suitable brownfield land, even if the landowner has not applied for consent. The target is to get LDOs for 90% of brownfield sites by 2020. That is a really important initiative. One housing association estimates that there are 8,000 acres of developable brownfield land in our city. It is a matter of absolute urgency that we develop that land as quickly as possible, partly to create new housing and partly to take pressure off the green belt, which it is essential to protect.

I am conscious that other Members wish to speak. In closing, I will briefly put eight specific proposals to the Minister. The first is to consider extending the office-to-residential conversion scheme that has been in operation for the last two or three years, in areas where there is no pressure on office supply. Certainly some clarification is needed about the definition of change of use. At the moment, the change of use has to have occurred by May 2016, but there is a little ambiguity about what the change of use actually is, so some clarification would help developers and investors.

Secondly—this is more a matter for the Treasury than DCLG—the regime for buy-to-let mortgages is currently a bit softer than the mortgage regime for owner-occupiers. For example, most owner-occupier mortgages are repayment, whereas most buy-to-let landlords get interest-only mortgages. In my view, that means that buy-to-let landlords are unfairly advantaged relative to potential owner-occupiers. The Bank of England and the Treasury should look at that, to create a level playing field so that owner-occupiers can purchase on an equal footing to buy-to-let landlords. That would encourage home ownership.

Thirdly, local authority planning departments are often a serious bottleneck, leading to the missing of statutory deadlines for granting planning consent. I suggest that we should consider allowing higher planning fees to be charged in exchange for a guaranteed service level. Planning fees are quite low, and I am sure that many developers—particularly larger ones with big schemes—would happily pay a great deal more money to get a quick, clear decision. That would bring planning consents forward more quickly and get us building.