House Building: London

Calvin Bailey Excerpts

Wednesday 5th November 2025 Westminster Hall

[Mr Calvin Bailey (Leyton and Wanstead) (Lab)]

It is a pleasure to serve under your chairship, Mr Mundell. I thank the hon. Member for Old Bexley and Sidcup (Mr French) for securing this important debate. Few issues affect Londoners more directly than the shortage of decent and affordable homes. I want to begin by talking about one of the clearest symptoms of that shortage: the rising cost of temporary accommodation. In Waltham Forest, the net overspend on temporary accommodation this year alone is £14.3 million. In my constituency, 7,300 applicants sit on the housing register, and the average wait for homes is irreconcilable—10 years for a three-bedroom home, and 14 years for a four-bedroom home. In neighbouring Redbridge, 3,000 families sit on the temporary accommodation register, and a wait for a three-bedroom home is 18 years, which is the lifespan of a child.

Behind those numbers are people. One of my constituents, a mother and a nurse, has been without a stable home since she was 13. For 20 years, she has moved between insecure rentals and temporary housing, despite working as a public health worker and a nurse, and caring for a child under treatment at Great Ormond Street. She faces eviction, instability and anxiety, all because of a shortage of social housing. That is what the housing crisis looks like for humans. The slowdown in house building has tightened competition for homes, driven up prices and pushed councils to rely on hotels.

The causes are many: the lingering impact of the pandemic, high interest rates since the 2022 mini-Budget, Brexit-related labour shortages, soaring construction costs, and the new fire safety and building regulation requirements. I therefore welcome the agreement by the Mayor of London and the Government to boost house building, which includes a £322 million injection from City Hall in the form of a developer investment fund, which will leverage private capital, and a wider £11.7 billion from the social and affordable homes programme, with low-cost loans from the national housing bank.

We must face the scale of the problem. London councils are trapped in a vicious cycle of rising costs while funding to cover them stays static. Councils even outbid one another for the same limited supply. Many constituents are now housed far outside their own boroughs—we read about that today in an article about Waltham Forest.

The situation is worsened by competition with the Home Office, which also relies on temporary accommodation for asylum seekers. The bidding war benefits a handful of landlords but leaves councils and communities footing the bill, and people from within our communities are sent outwith them. A constructive answer would be to re-establish co-ordination between the Home Office and London Councils, reinstate a cap on bids or prioritise boroughs with the greatest need. I therefore welcome the Home Office’s commitment to develop a more sustainable model of accommodation, but it must go further by reducing competition and expanding supply to restore fairness and stability to local housing markets.

Councils are not only victims of the crisis, but essential partners in solving it. Redbridge is delivering 600 council homes through its own affordable homes programme, and Waltham Forest has bold regeneration plans, particularly at Avenue Road and Montague Road, which I have spoken to the Minister about previously. At Avenue Road, the council could deliver 617 new homes, including 242 for social rent. Montague Road would add 223 new social homes and about 200 additional properties. That is more than 1,000 new homes in total, which would improve the lives of the wonderful community that lives there at the moment.

But like many London schemes, those have stalled. Across the capital, 111,000 homes are paused, and the rate of converting planning approvals into completions is below 10%. That is why our Government’s intervention is vital. It will not override local councils but empower them. Our Labour councils have a strong record of innovation, using infrastructure, finance and land value capture to support house building as part of the regeneration. With modest, well-targeted funding, Waltham Forest could unlock more than 5,000 new homes through estate renewal and redevelopment in underused sites.

[David Mundell (in the Chair)]

Order. I have to draw you to a close there, Mr Bailey.