Housing Supply and Homelessness

Baroness Bennett of Manor Castle Excerpts

Thursday 5th December 2024 Lords Chamber

[Baroness Bennett of Manor Castle (GP)]

My Lords, I declare my position as a vice-president of the Local Government Association. I thank the noble Baroness, Lady Warwick of Undercliffe, for securing this debate, which has been so well attended by noble Lords.

When we talk about housing policy, what is really noticeable is that the Government’s focus is on supply. For the Green Party, the focus is on what kind of homes the homeless need and how they will get them. We can all agree that fixing the current crisis of homelessness is a crucial priority for our society. It not just the people we see right here on our doorstep, on the streets of Westminster and in the Tube stations, sleeping increasingly uncomfortably and at danger to themselves, as winter draws in. There are also—and what damage is this doing?—the families in temporary accommodation. For England, the numbers are at the highest level since records began 22 years ago, with a 15% increase in the year to June. There are also the young—and not so young—people forced to rent a room in overcrowded shared housing. They are inadequately housed, with no realistic hope of future improvement, as reluctantly tolerated couch-surfers or in homes with several households squeezed in to them.

Yet when we hear the Government talk about housing, the focus is always on housebuilding. The milestone that Sir Keir Starmer set out with much fanfare this morning was “building 1.5 million homes”. The talk was about foisting homes on unwilling communities, with planning “reform”, despite the fact that a third of homes receiving planning consent are not being built. That means that more than a million approvals handed out since 2015 have not resulted in homes. Had all those homes which were granted planning permission been built, the previous Government would have hit the target of 300,000 new homes a year in eight out of the past 10 years.

So why are these homes not being built? They are mostly large-scale schemes of a handful of mass-market developers, whose entire aim and whose legal responsibility to their directors is to maximise profit. Their responsibility is not to build homes. What generally makes the most profit? It is so-called executive homes, often free-standing and wasteful of the scarce resource of land, built to poor energy-efficiency standards on greenfield sites without public transport provision, and feeding into already congested roads. What will those do for the homeless people on our streets, for the families crowded horribly into B&Bs without housing facilities, and for young people who have moved back home with the family, for want of a rental deposit?

The Government are applying the theory that suitable housing will eventually trickle down to those who need a decent, secure and affordable place to live. But, just as trickle-down economics has been a total failure, so has trickle-down housing policy. We need to build, or repurpose and refurbish, genuinely affordable and high-quality homes close to transport and other facilities, that meet the needs of people rather than focus on the profit for the market.

Of course, relying on an underregulated and non-competitive monopoly in the private sector to supply housing has not resulted just in a failure of housing numbers. The Grenfell tragedy exposed, in a huge disaster, the deadly failure of quality and safety. The campaign group End Our Cladding Scandal estimates that 600,000 people in Britain still live in homes at a heightened risk of a fatal fire, and 3 million own homes that they cannot sell, for fire safety reasons. Since Grenfell, more than 15,000 people have been forced to move out of their homes indefinitely.

What is the story behind that? I go to an account from James Meek in the London Review of Books of the now infamous Skyline Chambers in Manchester. The building was completed in 2007 by a company called Space Developments UK, which was bought by the multinational Ireland-based housebuilder McInerney. When it went down in the financial crash, Skyline was picked up from the creditors by Wallace, a company owned by an Italian investor sometimes styled “Count di Vighignolo” in official documents. It is a Cambridge-based network of companies owned by a Gibraltar-registered company, Perseverance Ltd, which in turn is owned by the Guernsey-registered Hauteville Trustees. That is what is supposed to supply housing.

What do we need to do to tackle homelessness to reshape our housing policy and our society, so that they work for people and the planet, rather than human needs and planetary essentials being ground down by the demand for profit? We need to shift our understanding to housing primarily as homes—affordable, secure and quality places for people to live—rather than simply as financial assets. We need to tackle the financialisation of our housing supply, just as we need to tackle the financialisation of our public services and our whole economy.

The Government are starting to demonstrate, just a little, that they realise that these old 20th-century economic models are not working. In Sir Keir’s speech this morning, we saw something of a shift, as previewed by Politico’s London Playbook, starting to realise that just talking about growth provokes the question: who is it for and who benefits from it? The same question must be asked about our housing supply.