Housing Supply (London)

Debate between David Lammy and Stephen Hammond

Wednesday 15th July 2015 Westminster Hall

[Stephen Hammond]

I do not accept that. The market has various sections, and affordable homes are clearly aimed at a particular section. The strategy that the Mayor claimed to be able to deliver is being delivered. He is investing £1.25 billion in the supply in London, which will lead to another 42,000 homes being provided between now and the end of 2018. Such allocations of money will support the delivery of homes on the scale announced for the next two years.

No one is suggesting that we do not need to build more houses, and in all areas of the market, but we need to be clear about what is already being done. The affordable homes scheme is delivering more affordable homes in London than ever before. Furthermore, the Mayor’s First Steps strategy, a single brand for shared ownership products throughout London, is clearly part of an ambition to deliver a number of homes in the capital, doubling by 2025 and helping about 250,000 Londoners into home ownership. That will make a significant impact on affordable home ownership, ensuring that 36,000 more affordable homes in London will be coming through, and have been built in the past five years.

The biggest issue in London is the cost of a home and how that cost starts: with the basic cost of land. One of the major promises that the Chancellor of the Exchequer and the Mayor, the hon. Member for Uxbridge and South Ruislip (Boris Johnson), set out in February this year was the London land commission. Members on both sides should be standing up to welcome the fact that we are bringing into use public sector land that is not being used operationally.

[Mr David Lammy (Tottenham) (Lab)]

It is fantastic to have a land commission bringing public land into use, but not if such land continues to be sold off to the highest bidder. Scotland Yard has been sold off for penthouses. Can the hon. Gentleman understand the outrage in London when no affordable homes are built?

[Stephen Hammond]

I would have listened more carefully to the right hon. Gentleman’s comments had he not said that no affordable homes were being built—that is simply not true. As I have already laid out, 15,000 will be built this year in London. Clearly, the Mayor is delivering.

The sources of land and the value to the public sector— how the land and different elements of it are used—will vary, but the London land commission has an opportunity to bring land into use for home ownership of all types throughout London. Significant tranches of land are involved. Transport for London, for example, has 568 designated sites where non-operational land could be brought into use; 98 of those are ready to be rolled out pretty much immediately, according to the TfL development director, Mr Craig.

We should not squander the opportunity, which is significant. Such land has involved work in London’s east end and the Royal Docks; we have already mentioned Old Oak Common. We should also consider the potential that the Mayor has given in the money allocated—not only to land, but to the new housing zones, which are an initiative to accelerate housing developments in areas of high potential. Last year London boroughs were invited to participate in a programme, and I am delighted that my borough will be seeking to participate. The programme is likely to deliver a significant number of homes across the borders of my constituency and that of the hon. Member for Mitcham and Morden (Siobhain McDonagh). Those will not only be affordable homes, but homes in the social rented sector as well as in the private sector.

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[Mr David Lammy (Tottenham) (Lab)]

I am grateful, Mr Chope, to have the opportunity to speak, although I will not speak for too long as many colleagues want to get in. I will concentrate on a few points that would change the situation for many people.

Right from the beginning, we must say that there is a big difference of opinion about what is affordable. Frankly, it is not acceptable for the hon. Member for Wimbledon (Stephen Hammond) to use the word “affordable” and not accept what has already been said: that 80% of market value is not affordable for Londoners, who have average earnings of £32,000 a year when the average property in London costs £470,000. It is also not acceptable for the hon. Gentleman not to understand and to say nothing in his contribution about the concept of council or social rents. Most Londoners find themselves in an overheated market, so they want to see affordable social or council rents. That is the dispute.

Other difficult issues face the city. There is deep concern about another word used by politicians that is coming to mean very little—“viability”. It is used too often by developers and local authorities, including Labour ones—this is not a partisan point—to say that the proportion of affordable homes on a development will be low, and that is using Boris’s definition of affordable. That is why two weeks ago I rejected a plan in my constituency to turn a police station into flats, given that only 14% of them were to be affordable. That is not acceptable when public land is involved.

The hon. Member for Wimbledon shouts about the land commission, but he needs to understand that it means nothing if it amounts to the selling off of public land, to which taxpayers have contributed over so many years, to the highest bidder and moving it from public to private ownership. That is not acceptable. It must be fought and stood up to in this city.

[Stephen Hammond]

What is equally not acceptable is to mischaracterise the situation. A huge number of Londoners want to get on the housing ladder, and some of the housing now being provided represents exactly that sort of opportunity. We are not talking only about social rents and affordable housing; some of the opportunities enable young Londoners to get on to the housing ladder.

[Mr Lammy]

Do the maths: the average house costs £470,000 and the average salary is £32,000. With loans at three and a half times a person’s salary, many Londoners will not be able to get on the ladder. People are therefore looking for a Government and a Mayor who have something to say about social housing. What this Government are saying about social housing is, “We are going to extend the right to buy even further and take even more property off the ladder.”