David Lammy
Main Page: David Lammy (Labour - Tottenham)Housing and Planning Bill
David Lammy Excerpts
Brandon Lewis
In terms of making good use of our social housing stock, I am sure that the hon. Lady will support us in the votes later today, if there are any, on high-income social tenants. If she is that interested in delivering more housing in this country, however, I am surprised that this is the first time she has engaged directly with the Bill. The hon. Member for Sheffield South East (Mr Betts), who mentioned the PAC report, asked about the data behind the policy. As I outlined at the end of last week, there are 16 million pieces of data impacting on this policy.
Mr David Lammy (Tottenham) (Lab)
The Minister has made a lot of “affordable”. Can he define it? Is it right that an affordable starter home in London will be round about £450,000?
Brandon Lewis
The right hon. Gentleman might like to go back to look at the evidence given to the Committee that scrutinised the Bill or at the Bill itself. The £450,000 is a cap. He needs to look at the average price a first-time buyer pays for a home in this country, which is £181,000. If we then include a 20% discount and allow the purchase with a deposit of just 5%, that really changes affordability. I hope the right hon. Gentleman will support the chance for more Londoners to get on the housing ladder, while understanding equally that this is not the only thing we are doing to promote affordable home ownership. There is a £4.7 billion scheme out there now for shared ownership, which also plays an important part, particularly in places such as London.
Brandon Lewis
My hon. Friend makes a good point. When I visited him and met constituents, developers and the local authority, I saw a really good example of an area that wants to deliver the right type of housing locally by understanding its local needs. Whether that involves working with the Government to bid for some of the £4.7 billion in the shared ownership fund or the £1.2 billion for starter homes on brownfield sites—
Brandon Lewis
I will just answer the previous intervention before I take one from the right hon. Gentleman.
Local authorities could also work with authorities around the income from higher-value homes that they may be able to use to deliver elsewhere. It is important to get that flexibility and to understand that different authorities of different parties want it.
I now turn to amendments 54, 55, 57 and 58, all of which I disagree with. Amendment 54 would make our policy to implement fairer social rents voluntary. It is, as my noble Friend Baroness Williams said in the other place, a blatant denial of the primacy of this House. Local authorities can already operate the policy on a voluntary basis, but we are not aware that any have done so. To put it simply, it is a wrecking amendment and this House should treat it as such.
The policy must also apply consistently, as it would not be right for tenants in certain areas to face possible rent increases while tenants in a neighbouring area do not. The amendment completely undermines the Government’s aim of putting in place a consistent approach and of using the funds raised to reduce the national deficit, which we inherited from the Labour party. It would substantially reduce the revenue that the policy would generate.
Mr Betts
Yes. It is interesting that my hon. Friend mentions the LGA, which argued very strongly, on a cross-party basis, that the policy of the right to buy for housing association tenants should not be funded by the sale of local authority assets. I will make sure that I get the Committee’s words right in quoting them to the hon. Member for Thirsk and Malton (Kevin Hollinrake). We said that
“public policy should usually be funded by central Government, rather than through a levy on local authorities.”
As usual, perhaps the Government ought to listen to the words of the Select Committee. The whole issue of the right to buy for housing association tenants would not be a significant point of contention if the Government were not forcing the sale of local authority homes to pay for it—and we still have not had the figures to show how that would work. With regard to sorting out more flexibility on starter homes, I still do not know what their policy amounts to because of the lack of clarity that we have had.
Finally, I want to raise two really worrying issues where the Select Committee did not come to a view—lifetime tenancies and pay to stay. We welcome the fact that pay to stay will be voluntary for housing associations. However, the situation will be a bit strange in a street where two tenants are earning the same amount of money and paying similar rents, one in a housing association property and one in a council property, and one finds their rent going up and the other does not. Let us get away from the talk about subsidised council housing. There is no central Government subsidy to housing revenue accounts, so there is no subsidy to council tenants earning a little more than their neighbours next door, but what there will be, if this measure goes through, is a tax on those tenants, because the money will go not to the council but to the Treasury, and the Treasury levying a charge on a council tenant is a tax by any other name—of course it is.
Let us put that together with the lifetime tenancy issue. Are we really going to end up with council estates where some homes will have been sold, but in different proportions in different areas, some of which will then have been sold on into the private rented sector, so that we have an increasing mixture of people on the lowest incomes and people there on only a short-term basis? By forcing their rents up, we will push out people on slightly higher incomes who may have a long-term commitment to the area and roots in the area. They may be the people who run the local housing association, the local residents group or the local community forums, and are really active there. Of course, the very same people will be the longer-term tenants who have a real interest in and long-term commitment to their area. What does this policy, and this mixture of policies, do for social cohesion? It undermines the whole idea of a long-term commitment by people who are rooted in their areas and want to stay there because they enjoy living there, they have connections there, their kids go to school there, and that is where their home is.
Chloe Smith
I welcome that reminder from my hon. Friend. Like him, I urge people to vote Conservative in city council elections this week, because on the one side we have self-interest, and on the other the principles of public office. Those principles are very clear: council leaders should, like all of us, be upholding integrity, accountability and honesty in public office.
The people of Norwich deserve higher standards of integrity from the leader of our council, rather than a strong smell of self-interest and personal gain. The thousands of people in Norwich on the housing waiting list deserve better. People across the country deserve better than a watered-down pay to stay that could allow local weakness to stand in the way of right and wrong. I urge hon. Members to join me in opposing Lords amendment 54, and to uphold the right thing to do by asking those who are better off to pay accordingly.
Mr Lammy
I am grateful to you, Madam Deputy Speaker, for calling me to speak, because I know that many other Members wish to. I will therefore not take any interventions.
The Government’s own figures show that rough sleeping has increased by 30% over the past year, and it has almost doubled since they came to power back in 2010. The Mayor of London promised to tackle homelessness in the capital, but it has doubled over his period in City Hall. The Combined Homelessness and Information Network found that there are 7,500 rough sleepers on London’s streets alone. Councils are spending a staggering £623,000 every single day on temporary bed and breakfast accommodation just to put a roof over the heads of vulnerable families. That equates to £227.5 million last year, a rise of over £60 million on the previous year. The overwhelming majority of that money—some £176 million —was spent in London; 10% of the total figure—some £20 million—was spent in my home borough, the London borough of Haringey.
We have heard from my hon. Friend the Member for Hackney South and Shoreditch (Meg Hillier), who chairs the Public Accounts Committee, which has looked into the extension of the right to buy. Its report makes sobering reading. The Government have not published a proper impact assessment on the full extent of the right to buy. In fact, my hon. Friend said:
“The Government should be embarrassed by the findings of this Report.”
I could not agree more.
I ask the Government why they are planning to push through changes that would reduce social housing stock by 370,000 by 2020. That figure is not from the Labour party; it is from the Chartered Institute of Housing. Why are they proposing to push that through? They are stretching councils to breaking point but are not even prepared to publish an impact assessment. Homelessness will increase and more families will end up in temporary accommodation. More families on low incomes will be reliant on the private rented sector. Of course, if they are reliant on the private rented sector, who will pick up the bill for that? We the taxpayers will, because housing benefit will increase.
Ms Buck
Does my right hon. Friend also recognise that there is a phenomenon known as “right to buy to let”, which has seen, for example, ex-council flats on the Amberley estate in my constituency, which would have been rented for £140 a week under the council, now being rented for £690 a week? In some cases, they are used to place homeless families in temporary accommodation. Is that not a phenomenal waste of resources?
Mr Lammy
It is a phenomenal waste of resources. Usually, although we play party politics and there are dividing lines, there are issues on which there is some agreement. But here we have a Bill that offers a discount to those who can be earning up to £77,000, and there is already a discount for right to buy. The housing benefit bill is bound to go up. How is that a sensible Conservative policy? That is what I would like the Minister to explain. On what analysis is that fiscally sensible? It does not feel fiscally sensible to me to introduce a set of policies that will not only run a coach and horses through our housing policy, but actually cost the taxpayer more in the long run.
That is all in addition to the issues of social exclusion and, I believe, social cohesion that will inevitably follow in parts of London. It has been said before that what we are seeing in London—this Bill will make this worse—is a move towards what we see in Paris, with an inner sanctum that is very well off, surrounded by an outer banlieue where people who are very poor move when they are increasingly pushed out. We should commit to having a balanced situation. Of course we want to help people on to the housing ladder, but surely we do not want to drive the very poorest into some of the most squalid housing in the city and then ask taxpayers to subsidise it.
Kevin Hollinrake
Opposition Members have made the point that starter homes will be built, rather than affordable homes to rent. That is, of course, true to some extent, because people want to buy homes and people on lower incomes have been excluded from the housing market for too long. We have been building an average of 50,000 affordable homes to rent for the last 20 years. Why have we not been building more affordable houses for sale, if that is what people want? Given that we have 20 years of catching up to do, it is absolutely right for the Government to set the ambitious target of building 200,000 starter homes over the next four years.
The hon. Member for Dulwich and West Norwood (Helen Hayes) gave the example of someone who will have earned £40,000 by the end of this year and is living in an affordable rented property. The average price of a London home for a first-time buyer is £250,000. I believe that, under this policy, a starter home in London could be built for about £200,000. The information provided by Shelter about the unaffordability of starter homes in most local authority areas is flawed, or deliberately misleading, because it is based on the median house price. First-time buyers buy at around 25% below the median house price, and in my area, the average house price is about £200,000.
Kevin Hollinrake
I am not aware of the figures to which the right hon. Gentleman has referred, but, according to the Council of Mortgage Lenders, the average house price for first-time buyers in Greater London is £250,000. In my area the average house price is more than £200,000, but we have some very nice villages in which the average is £300,000. First-time buyers will pay about £150,000, and will move a few miles away from those nice villages to buy in a more affordable area. If they can buy at 20% below that value, they will pay £120,000. Bringing property for home ownership within the reach of many more people is absolutely the right thing to do, and this policy is clearly very popular with first-time buyers.