Homelessness

Feryal Clark Excerpts

Wednesday 29th January 2020 Commons Chamber

[James Cartlidge (South Suffolk) (Con)]

It is a pleasure a pleasure to follow the right hon. Member for Birmingham, Hodge Hill (Liam Byrne). He spoke with great passion, which I share and I am sure the whole House shares. We want to end homelessness. It is a shared goal.

I draw the House’s attention to my entry in the Register of Members’ Financial Interests: I am a director of a shared-ownership property portal, so I have a great interest in the issue of first-time buyers. In fact, when I was involved in the business day-to-day, before I became an MP, we used to give part of all our mortgage commissions to the Broadway homelessness charity, which is now part of St Mungo’s. From my experience of working with Broadway and meeting many homeless clients, I can say, as my hon. Friend the Member for Gravesham (Adam Holloway) did, that one should resist the temptation to generalise about the reasons why people have found themselves in very difficult circumstances. It was often drugs or alcohol, in particular it was family breakdown, and many times it was a combination of them all. I therefore very much welcome the additional £112 million that my right hon. Friend the Secretary of State has announced. It will include £30 million for mental health, which is very welcome. As my hon. Friend the Member for Gravesham said, health is a significant issue in this context.

Having said all that—that we cannot generalise on the individual factors and that each case is different—we must all be concerned about the worrying underlying structural trend in causes of homelessness, which is that there has undoubtedly been a significant increase in the number of people becoming statutorily homeless because they have reached a certain point in an assured shorthold tenancy and been unable to renegotiate it, the rent has then been pushed up, they cannot afford it, and the property has been re-let. That is incredibly worrying, because more and more families are now in rental accommodation because of the affordability crisis that I referred to earlier in an intervention on the right hon. Member for Wentworth and Dearne (John Healey). The price of homes has gone up hugely under successive Governments. It is a widespread problem, particularly in our largest cities. So, what can we do about it?

When we talk about high rents, the other side of the coin is of course wages. There is no doubt that this period in which the end of an AST has become a factor in rising homelessness has coincided with a period of flat wages and significant rising rents, particularly in London and the south-east. The good news is that wages are now rising at their fastest rate in a decade—that is an incredibly important part of the issue—but on the other side of rents, the Government are entirely right that we need more supply. We cannot get around that. If a tenant finds themselves at the end of their tenancy, having to renegotiate, and the landlord knows that they can easily re-let—that there is an under-supply in the market —we know who will be wearing the boot on which side of the equation, and that will mean pressure on the tenant to accept a higher increase than they otherwise would. We need more supply and more choice.

I wish to make two points on how we can move forward. There is no easy solution, but what is called the build-to-rent sector offers a potential solution. Build to rent is generally institutionally funded and there is huge potential finance available for it from City institutions and so on. It is growing significantly: there was a 20% increase in build-to-rent development last year, and I believe that 148,000 units have been developed in the UK under build to rent. The key thing about build to rent is that under the national planning policy framework, tenancies should be offered of at least three years—what are called family-friendly tenancies. If we were to see a widespread increase in the supply of these types of properties in the market, with better-quality tenancies, it would force those in the sector who may not offer such good tenancies to improve their offer.

[Feryal Clark (Enfield North) (Lab)]

Does the hon. Gentleman agree that, in addition to his suggestions around build to rent, the Government need to hurry up on their proposals to end section 21, so that we can put an end to no-fault evictions? In my borough of Enfield, the no-fault eviction rate is the highest in the capital and the second highest in the country. The way to end that is to ask the Government to hurry up with their proposals that they have been sitting on and talking about for several years now.

[James Cartlidge]

That is a very fair point, but the Government are, of course, looking at it, and we await further details. None the less, it is a perfectly valid point. I was simply arguing that, ultimately, the best thing that can happen to those tenants in that position is for them to have choice—to have more supply. Here we have a sector with build to rent that can bring significant extra supply. When we talk about supply, the key thing is additionality, which is a terribly technical word. In other words, it really is additional stock that has come about as a result of an intervention in the planning or funding system, and that additional stock would not have happened without that intervention. It is an incredibly important point.

I also want to talk about regeneration. If we look at the NPPF, we will see that there is encouragement for that type of tenure, for build to rent, where there is large-scale urban regeneration. Something that concerns me about the current housing dialogue, particularly in some Labour-controlled London boroughs, is that, let us be honest, regeneration has become something of a dirty work. It is seen as enforced gentrification by some. Actually, there is a point in that. There have been urban regeneration schemes in some areas, particularly in London, where, arguably, some of the people who lived in the development before the regeneration lost out compared with what happened afterwards. It is difficult, because, in theory, the great thing with regeneration is that greater density brings more supply and improvement to the current stock for those who already live in the development. It is about regenerating and improving an area. That is something that has been supported by parties from across the divide, but we need to see much more of it and more joined-up support from Government for it. We can build on greenfield, on brownfield or on existing stock through regeneration. There is nothing else available unless we reclaim the sea through polderisation, and I do not think that that is about to happen any time soon.

If we do not have significant urban regeneration, we see disproportionate pressure on the countryside, and easy planning decisions of just building more and more on greenfield sites. Brownfield sites come under pressure when we need economic development—when we need land for industry and so on. Regeneration is the key, and that combination of large-scale build-to-rent developments in densely populated urban areas is one part—only one part—of delivering that increased supply so that there is less pressure on rents and, as wages increase, we can reduce the number of people becoming statutorily homeless at the end of an assured shorthold tenancy. There is no easy single answer, but those factors can form a joined-up, holistic, one-nation Conservative housing policy.