Clive Efford
Main Page: Clive Efford (Labour - Eltham and Chislehurst)(10 years, 10 months ago)
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Ms Buck
My hon. Friend is absolutely right that some of the conditions that people are living in are shocking in their squalor. That is particularly offensive, given what was in a superb report produced a few weeks ago by Tom Copley of the Greater London authority. It showed that a third of former right-to-buy properties in London are now in the private rented sector.
I have said many times, in Westminster Hall and elsewhere, that it appals me that we can have two households living next door to each other, one in a local authority property where the rent is, say, £110 or £120 a week—allowing people in that household to work and thereby improving their incentive to work—while next door to them is a former right-to-buy property. Many such properties are rented back to the local authority for emergency accommodation, and the rent for them can reach £500 a week. I have been in some of them and seen water pouring down the walls and black fungus growing in the bathroom, including in the toilet. Even for a rent of £500 a week, it is impossible to ensure that such properties are anything other than a slum.
The coalition Government—and, indeed, the Mayor of London—want to see that process intensify; they want to see social housing sold off in central London. They want to see us flogging the last of the family silver, even though these properties are enormously important.
Clive Efford (Eltham) (Lab)
Does my hon. Friend agree that at the moment London’s housing market is being turned into a Klondike for wealthy foreigners to make money? There are examples such as those my hon. Friend the Member for Hammersmith (Mr Slaughter) has given; there is also the Ram brewery in Wandsworth, which has just been sold to Chinese developers who will build 600 exclusive high-development houses with no social housing whatever.
Ms Buck
I agree. In fact, what we are seeing are two types of new build in London; I simplify, but that is broadly true. One type is high-value properties that are frequently being sold off-plan and internationally. Indeed, last week we heard that only 27% of central London properties are being sold to domestic buyers. As the ITEM Club said of the London housing market:
“Arguably, it would be more appropriate to treat it as an investment market rather than a residential market”.
That is an absolute outrage and a betrayal of Londoners. It also leads to the second type of new build, whereby the affordable social rented housing being built—supposedly to balance the first type of new build—has only Kafkaesque “affordable” rents, charged at up to 80% of market rents, so it is not “social housing” in any sense at all that we have ever understood.
Unsurprisingly, we saw the Office for Budget Responsibility in December uprate its estimate for expenditure on housing benefit by an additional—I stress “additional”—£6 billion. That is the cost of failure: the cost of having to keep families and individuals in private rented and high-rent “affordable” properties, which they cannot afford whether they are working or not.
My hon. Friends have said that there is an alternative, and I completely agree with them. The money being poured into benefits and the pockets of private landlords should instead be spent on building genuinely affordable, decent homes for people to live in and bring their children up in, while maintaining their incentive to work.
As my hon. Friend the Member for Eltham (Clive Efford) said, we also have to do something to tackle the trend of all the other new build properties being sold off-plan and to international investors, so that those young people who want to have a home of their own have a realistic chance of owning one. Everything that the coalition Government are doing is taking us in the wrong direction, whether we are talking about the interests of people’s homes or the interests of the public purse.
Jeremy Corbyn (Islington North) (Lab)
I am pleased that we are having this debate. There is a great Labour turnout. I admire but am surprised at the solidarity that Conservative Members have shown with the tube workers this morning by not coming to the debate. Obviously, the Liberal Democrats are of the same mind.
Like many of my colleagues, I represent an inner-city constituency; 40% of housing there is social housing, 30% is owner-occupied, although that figure is going down, and 30% is in the private rented sector. That figure is going up. There is a desperate housing shortage, as my hon. Friend the Member for Islington South and Finsbury (Emily Thornberry) outlined, and we are stuck with planning policies that are the opposite of what is needed in London. A good example is the absurdity of the sale to a property development company, for a very small amount of money, of the Royal Mail site at Mount Pleasant, and the proposal to build large numbers of executive homes on the site, when there is desperate housing need throughout central London—not just in Islington but in Camden, Hackney, Lambeth and Lewisham. All the boroughs in central London have a desperate housing shortage.
Furthermore, the Government have a specific, deliberate policy of putting no social requirement on the conversion of offices to housing developments. The Archway tower in my constituency is a large office block, originally built in 1967 by London Underground and later occupied by the Department of Social Security, the Lord Chancellor’s Department and various others. It is empty and is due to be converted to housing. I do not have a problem with that; it could help a great deal. However, I have a big problem with its being bought by a company that will no doubt do the conversion work very well, but will not provide one flat for anyone in social housing need, and will set rents that are unaffordable to anyone who lives in the area or is on the housing waiting list. The opportunity to provide more than 100 good-quality new flats for people on the housing waiting list is being lost in favour of off-plan buying by wealthy overseas residents, who can occupy those flats right next to a tube station. What message is that giving to the people who work and live in the community, who want somewhere decent to live? I hope that the Minister will explain.
Not far away from Archway, which is at the northern end of my constituency—someone would need to cycle only for 10 or 15 minutes, up a steep hill, admittedly—is somewhere wonderful, The Bishops avenue. The Bishops avenue is apparently the most expensive housing in Britain, if not anywhere in the world. More than a third of it is empty. A large proportion of the property is owned by various Gulf state royal families, and the Saudi Arabian royal family. There are huge mansions there, and they are deliberately kept empty as part of a process of land banking. Some of those properties have become derelict, and there is a danger that English Heritage will decide to preserve them on the ground that they are good centres for wildlife. Owls and bats have taken up residence in some of those extraordinarily valuable properties. I wish the owls and bats well.
Jeremy Corbyn
As my hon. Friend says, at least someone is occupying them, and no doubt they are having a good life there; but what kind of city are we living in, if we encourage the development or ownership of large, expensive properties for investment and land banking, and for occupation by wealthy people—I understand that some of the properties are used for up to two weeks a year, for summer vacations—while people are sleeping on the streets and hostels are hard to get into, and young people grow into middle age staying with their parents and sleeping on sofas, because they cannot get anywhere to live?
Clive Efford
My hon. Friend is right, but does he agree that we must rumble the Mayor of London for constantly making promises on which he has no intention of delivering? In 2008 he promised 50,000 houses by 2011. That figure went up to 55,000 by 2012 and it is now 100,000, but between April and November last year only 2,235 of those houses were started. He missed his targets again. He constantly does it, and he is letting down the people of London.
Jeremy Corbyn
I was about to refer to one of the briefings for today’s debate: the work of fiction from the Mayor’s office about all he is doing to improve housing in London. The reality is that he and his planning policies support the development of expensive executive housing, which is unaffordable to the people of London. He is not intervening to get social housing, or to support local authorities like mine, which are desperately trying to build housing to solve the housing crisis in London.
I want to refer quickly to what my hon. Friend the Member for Hackney North and Stoke Newington (Ms Abbott) said. I introduced a ten-minute rule Bill in October to regulate the private rented sector. If we are to deal with the housing crisis in London, we have to tackle it in a number of ways. First, we need a planning policy that enforces the need for social housing content on all sites, including office conversions. Secondly, there must be massive investment by local authorities in affordable council housing, with secure tenancies and affordable rents, not the market-level rent model imposed by the Government.
Thirdly, recognising that a third of my constituents live in the private rented sector, and that the proportion nationally, although slightly lower, is rising very fast, we need regulation of agencies, enforced conditions in tenancies so that there are decent-quality homes, and, above all, affordable rents. I therefore seek a default power for London local authorities to impose a rent model across London to ensure that we keep the diversity of our population and work force, and do not go down the desperate road of housing for the wealthy and homelessness for the poor.
Nick Boles
I unreservedly withdraw that slight to the hon. Lady’s political passion.
The hon. Member for Erith and Thamesmead asked a number of quite searching questions, but I must be honest: I do not have the time to answer them. Nor am I the Housing Minister, so I do not have the expertise. We shall write to her, however, to give her the full answers she deserves and copy in all hon. Members who have spoken today, but I fear that I will not be able to answer her questions fully right now.
The debate is a fascinating and challenging one. Of course no one in this House, on either side, denies that not just in London but most acutely in London this country faces a housing crisis. It is a subject to which I have given a great deal of attention and energy in the short time that I have been Planning Minister. It is important to understand that houses take a while to build. In our planning system, they take even longer to secure consent for. It is therefore not unfair to say that the seeds of most of what is happening now were laid several years ago.
The one thing that I missed in the excellent speeches of all the Opposition Members was any sense of responsibility for the situation we find ourselves in, or any sense of recognition that the seeds of the current crisis were sown not after May 2010 but decades ago, and they certainly have not been changed since.
