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May I express my great pleasure at speaking under your chairmanship for the first time ever, Ms Clark, and my gratitude for being able to talk on the supply of public or council housing, and housing association or social housing?
We have a crisis building up at the bottom end of the housing market—public housing for rent—which hits those who cannot afford to buy. That can be up to two fifths of the population, depending on the area. The cause is, effectively, 30 years of disinvestment in housing, starting under the 18-year Conservative Government with the right to buy, which substantially reduced the public housing stock. The right to buy is welcome, of course, but should be paralleled by a policy of building one home for every home sold off, to maintain the stock of public housing. There followed 13 years of under-investment by the succeeding Labour Government, who did not invest enough in housing, and who bribed and bullied councils into privatisation. The problem now is that that long period of disinvestment and under-investment is being followed by the neo-liberal policy of the coalition.
When in opposition, the Prime Minister said:
“We support social housing, we protect it and we respect social tenants’ rights.”
That, however, was the prelude to a neo-liberal policy of running down the public sector, building up the private rented sector, and cutting public spending on housing. The result is that we are now building up to a housing crisis that will severely hit those who cannot afford to buy.
Will the hon. Gentleman join me in congratulating Redditch borough council, which only last night announced a new programme of building council houses?
I am delighted by any building of council houses, but the figures today from Inside Housing show that public housing construction orders are down to their lowest level for many years. Any initiative that produces council housing and new building is welcome, but it is in the context of low public housing build, which is the essence of the problem.
What used to be socially mixed council estates, with people at all levels of the social scale—from top to bottom, almost—are becoming, because of the disinvestment and under-investment, dumping grounds for the poor and the needy, which was not their purpose. The housing stock has shrunk and, given the Government’s announced policy of selling at even more substantial discounts, will shrink further; the houses cannot be replaced at the discount level being given. The waiting lists are already at nearly 5 million individuals— 1.8 million households—and many will never get the housing that they are waiting for. Also, homelessness applications are up by about a quarter. The English housing condition survey says that 391,000 children are living in overcrowded conditions—a figure that is up by about 18%. Housing costs are now at their highest level ever as a proportion of income, and they will be pushed up further, for the people whom we are talking about, by the coming rent increases. Housing build starts are at their lowest level since 1923; there is a pathetic number of council housing starts.