Social Housing in London
Debate between Andy Slaughter and Teresa Pearce
Mr Slaughter
It is anecdotal, but it is a consistent stream—from the year a Labour administration was elected in Hammersmith in 1986 when I recall that the response of Wandsworth council’s homeless person’s unit was to put up a map on the door outside, showing people in housing need the way to Hammersmith’s housing office, right through to the most recent Tory administration in Hammersmith, which makes people wait outside in the cold if they turn up out of hours. They used to be allowed to wait in the foyer of the town hall, but now, in case they offend or upset anybody, they have to wait outside, even in the middle of winter. As I say, those are anecdotes, but they tell a story. Some estates in my constituency have 20% overcrowding—eight times the national average, and it is a growing trend. That is the position on need.
I do not pretend that it is easy to solve the problems created for low-income families in housing need by the price of land and the price of property. However, I do expect Governments to try to solve the problem, and if the present Government did try, they would have our support. I should like to see less partisanship, but I am afraid that this issue has become one of the most partisan of all.
I have spent some years using the Freedom of Information Act 2000 to get various seedy hidden documents out of Hammersmith and Fulham council in order to discover what it really thinks of its tenants and what its real plans are. I was going to quote from some of them, but I think it more entertaining to quote from press releases issued by the Department for Communities and Local Government, particularly those issued in the name of a Liberal Democrat Minister. They say the same thing, only using more fantastical language.
This is what the Government are offering people in housing need. They are offering “flexible tenure”:
“Landlords will be given the freedom to offer their properties under fixed term tenancies, from a minimum of two years”.
They are offering “affordable rents”, which is a new technical term:
“Affordable Rent properties will offer fixed term tenancies at a rent higher than social rent - with landlords able to set rents at up to 80 per cent of local market rents.”
It is a bit like tuition fees. I suspect that most landlords will go for the full 80% rather than for 40%, 60% or 70% when they set their rents.
The Government are also offering
“greater flexibility for councils to make decisions on how best to help people at risk of homelessness at the local level.”
They say that
“Currently some homeless families are turning down the decent private rented accommodation they've been offered as a settled home, and demanding to be provided with expensive temporary accommodation, at huge cost to the taxpayer, until a social home becomes available.”
The scandal of it! It is no surprise that the Liberal Democrat Benches are empty. A Liberal Democrat Minister has said:
“These changes will lead to a much smarter system”.
As well as those three principles, there are a couple that the Government do not need to make law in the Localism Bill. As was mentioned by my hon. Friend the Member for Edmonton (Mr Love), housing grant has already been cut by 63%. He also mentioned the changes in housing benefit. As I do not want to keep Members here all night, I will not go into the details.
The cumulative effect of those five principles—giving councils flexibility to use the private rented sector, which means no more social homes as a permanent solution; flexible tenure, which means no security of tenure; affordable rents, which means no more affordable housing; no more capital investment; and the changes in housing benefit—will be that hundreds of families in all our constituencies will no longer be able to afford to live where their relations are, where their schools are and, in many cases, where their work is, and will have to move out.
If it is allowed to develop over a period of years, the effect of those changes will be the end of social housing in this country. I say that not because I wish to be sensationalist, but because it is the inevitable conclusion, and, increasingly, the conclusion of experts. I think that the Government know what they are doing. I think that this is phase two of the desocialisation of the housing market which began with the right to buy, although this is a much deeper and more profound way of destroying a whole form of housing tenure.
I can speak with some authority about that development, because I believe that much of it originated in Hammersmith and Fulham, the borough that I represent. A document entitled “Principles for Social Housing Reform” contained four of the five principles that I listed—although not the one relating to housing benefit—and was published a year before the last election. When I drew attention to it, I was told that I was scaremongering and that what I was saying was nonsense. The Minister for Housing and Local Government told me on many occasions in the House that this was not Tory policy and would not happen.
The same discussions that led to the development of those principles led to the local policy in Hammersmith and Fulham, which was effectively a policy of removing the bulk of social housing tenants from the borough.
An Evening Standard features article in the middle of 2009 stated:
“Hammersmith and Fulham council is plotting a Dame Shirley Porter-style programme to move out the poor and replace them with private homes and retail developments…new homes will be built to attract residents with higher incomes and areas that have traditionally voted Labour will be broken up as more than 3,500 flats and houses are demolished…One document shows that if rents in Hammersmith were increased to private levels, a two-bed council flat currently costing £85 a week would go up to £360 a week.”
I regret to say that all that is coming true in Hammersmith.
I was amused to find that immediately after the election, in the first interview that he gave to a national newspaper, the Prime Minister singled out Hammersmith and said that he was angry about “appalling” Labour “lies” there. He said:
“They were telling people in Hammersmith they were going to have their council house taken away by the Tories.”
The only thing that we got wrong was that we did not realise that this was going to happen so quickly and that it was going to happen across the country. We certainly did realise what was going to happen in Hammersmith, because we had seen the evidence on that.
Three main local attacks are being used in Hammersmith, and some of them will be familiar to the shadow Minister because we all remember the days of Shirley Porter in west London. We thought that we had got rid of the terms “designated sales” and “building stable communities” in west London, but they have come back to haunt us. Some 64 council properties were sold up to last year, bringing in just over £30 million and, according to a decision taken this month, a further 300 will be sold to bring in a further £107 million. These will not just be sales of the largest properties; a range of sizes will be involved, with one, two, three and four-bedroom flats being sold. As hon. Members will see, these properties will be expensive, selling for about £500,000 each in many cases. More than 9,000 families are on the waiting list, so what is the purpose of deciding to sell 300 to 400 of the council’s best properties? These will be not be sales of estate properties; they will be sales of street properties, which command very high values in Hammersmith and Fulham.
In discussing the second principle, I shall again talk a little about housing associations. For some years we thought that housing associations would save us from the ideologically driven policies of Tory councils and that associations such as Notting Hill Housing Association and Shepherds Bush Housing Association, the two largest in my constituency, would perform that role. As I said, Notting Hill Housing Association was set up, following the Rachman era, to perform that role and ensure that good quality, affordable housing was available.
I shall read just a few sentences from the NHHA’s response to the Government consultation paper proposing the social housing changes. It states:
“We are likely to grant 2 year tenancies to all new tenants of both new homes and existing homes that become available for new letting.”
It goes on to say:
“In appropriate cases we would like to be able to increase rents up to market rents for those who can afford them.”
It also says that
“we may want to sell some voids, or to let them on full market rents”.
It continues:
“The new flexibilities will also enable us to support boroughs’ efforts to create more mixed communities”—
that phrase again—
“reducing the concentrations of deprived often unemployed people found in areas of social housing in London.”
The NHHA response continues:
“we see no need for the Government to specify that particular groups of tenants such as older people or people with long term illnesses or disabilities must be provided with a social home for a longer period than the two year minimum.”
Finally, and perhaps most poignantly of all, given the history of the NHHA:
“We support the proposal…that local authorities should be given greater flexibility in bringing the homelessness duty to an end with offers of accommodation in the private rented sector.”
What I find particularly objectionable about that is, as I said in an intervention, that these organisations were set up purely to provide good quality affordable housing to people.
The chief executive of Notting Hill Housing, who featured in the popular press over the last weekend and previously along with her partner, who was director of housing and regeneration for Hammersmith and Fulham, earns £200,000 a year, whereas he earns £260,000 a year as a consultant. Their jobs have been to run the two main social landlords in Hammersmith and Fulham and they are also the advisers to the Conservative party who contributed to the document “Principles for Social Housing Reform”. So far, he, Mr Nick Johnson, has been paid more than £830,000 as a consultant and director of regeneration in Hammersmith and Fulham.
Teresa Pearce (Erith and Thamesmead) (Lab)
Is it true, as far as my hon. Friend believes, that that contract was given to Mr Nick Johnson under a corporate vehicle so that national insurance on those payments was not paid by Hammersmith and Fulham?
Mr Slaughter
Yes. I do not want to get too far off the subject and speaking about individuals can be invidious, but this is an extreme case. The Minister smiles, so let me read him what the Minister for Housing and Local Government said about the case. I should point out before I read that that Mr Nick Johnson retired on a permanent ill-health pension as chief executive of the London borough of Bexley with a £300,000 lump sum and a £50,000-a-year pension that was payable immediately. Within three months, he had taken up his £260,000-a-year job, first running Hammersmith and Fulham Homes and then as director of housing and regeneration in Hammersmith and Fulham. The House can imagine my views on this.
When I raised the matter in the House, the Secretary of State appeared to take Mr Johnson’s side. The council has certainly taken his side, as the Daily Mail reported this week that
“the council defended the move, saying Mr Johnson was ‘excellent value for money’.”
For once—this might be a one-off, so everybody should take note of it—I want to praise the Minister for Housing and Local Government, who said:
“Town hall pensions cost every council tax-paying household over £300 a year. Hard-pressed taxpayers cannot afford to foot an ever-growing bill. It’s not justifiable to have healthy employees working in local government and claiming an ill-health benefit at the same time. Councils have power to stop such payments and should use them.”
What is Mr Johnson being paid to do that means that he is such good value for money for the London borough of Hammersmith and Fulham? I think we know why Ms Davies is good value for money, because she parrots every right-wing phrase that is needed to support the Government’s atrocious housing policies and that sort of support from the housing association movement, although shameful, is, I am sure, very welcome in providing cover. She is earning her money all right.
How is Mr Johnson earning his money? As director of housing and regeneration he was in charge—and is still, because even though Hammersmith and Fulham has now appointed a director of housing and regeneration on about £170,000 a year, Mr Johnson is still retained as a consultant to help him out—