Social Housing in London Debate

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Jane Ellison

Main Page: Jane Ellison (Conservative - Battersea)

Social Housing in London

Jane Ellison Excerpts
Thursday 5th May 2011

(13 years ago)

Commons Chamber
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Clive Efford Portrait Clive Efford (Eltham) (Lab)
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The hon. Member for Brentford and Isleworth (Mary Macleod) referred to 1.8 million people being on the housing waiting list. That is a staggering figure. I recollect that a petition on the No. 10 website against speed cameras once attracted 1.2 million signatories and received headlines in newspapers throughout the country. So speed cameras generate comments in the national newspapers, but the fact that 1.8 million people are on the list does not. I wonder when those people will get angry. We all marched against cuts a few weeks ago—500,000 people marched through London. When will people start to get angry about this issue?

We could all write the Minister’s speech. He will go on about the fact that Margaret Thatcher built more council houses than Labour did in the last 13 years. He will say that Ken Livingstone was a failure because he had a 50% target but only achieved 36%. We have heard all that before, and quite frankly, it is just not good enough. For the past 30 years, Government Members—Labour and Conservative—have, quite frankly, failed on the issue.

Jane Ellison Portrait Jane Ellison (Battersea) (Con)
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Will the hon. Gentleman give way?

Clive Efford Portrait Clive Efford
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Hang on a minute; I have hardly started.

We can make excuses—they are good ones—about the amount of money that we invested in social housing over the last 13 years. We should be proud of that investment. Many of my constituents live in far better quality housing as a result of the commitment and money that we invested in social housing, but we lost sight of a growing crisis in the provision of affordable rented accommodation for our constituents right across the capital and the country.

I congratulate my hon. Friend the Member for Islington North (Jeremy Corbyn) on securing the debate. He referred to articles about how unattractive social housing is, how the failed experiment of building huge monolithic estates of rented accommodation became microcosms of all social ills, and how people with social problems became concentrated in those communities, which were unattractive and difficult for people to leave, but that is not my recollection of growing up in communities full of rented council and housing association accommodation. Back in those days, the Church Commissioners provided social rented accommodation where I lived.

Jane Ellison Portrait Jane Ellison
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Will the hon. Gentleman give way?

Clive Efford Portrait Clive Efford
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I will in a moment. Calm down. [Interruption.] Hon. Members will notice that I was more restrained in my comment.

Those people did not lack aspiration or exhibit all the problems that people have given as reasons for not investing in building social rented accommodation. We have lost sight of the issue. It has been suggested that such people lack aspiration and that such areas become concentrations of high unemployment, low educational attainment and high levels of crime, particularly antisocial behaviour among young people. Such circumstances become self-fulfilling prophecies as a result of people having to be housed according to priority need.

Over the years, the housing supply has been constantly reducing. Because of the right to buy, the amount of social housing for rent went down consistently, in spite of the new building that was taking place, until only a couple of years before the previous Labour Government left office. The only time there was an increase was from about 2008 onwards as a result of the investment of the previous Labour Government. Just as we got to the end of our last term in office, we actually got it and finally started to invest in building again, and so the building of council housing began again. There were projects in my constituency and my local authority was successful in bidding for money to start to build council housing again. That is what we have to get back to. It will be no good the Minister’s coming to the Dispatch Box and saying that it has all been bad under both Tory and Labour Governments. We have to get this right for future generations.

We have heard about the flexibility of having 80% of market rents. To give them credit, many registered social landlords and housing associations are saying that going for 80% of market rents would fundamentally change their ethos. It would mean that they were no longer providers of social housing and they believe that they would be wrong to go down that route. To accept rents of 80% of market rents would be to accept the principle that people who live in social housing should subsidise the future development of social housing—that they should pay for it rather than the general taxpayer or anyone else. For many years, people buying private housing got enormous subsidies. A myth has built up that there are huge subsidies for council housing, but the housing revenue account has paid its own way for decades. Even my local authority, in its response to the consultation on social housing rents, made the mistake of believing that there was a cost to the taxpayer of providing social housing.

It cannot be right, at a time when the Government have stated that they want to cut the housing benefit budget, to introduce a policy of moving social housing rents towards market levels. That has to be counter-intuitive. The people who cannot afford to find rented housing in the private sector or to buy will, by the very nature of the problems they are facing in their lives at times of crisis when they search for social housing, be likely to get priority and be on lower incomes, so that policy is likely to have an impact on housing benefit if rents of 80% of market rents are encouraged. At the same time, the changes in housing allowances and the new 30th percentile rate will increase the amount that people will have to contribute to their rent if they are in the private rented sector. That will force many people who live in central London to move to areas such as mine where rents are lower, relatively. That is bound to increase the demand for housing there, which could have an impact on the private rented sector and, again, have a negative impact on rent levels if demand goes up. If the private rented sector refuses to rent to people on housing benefit, what will happen to those people and what will be the consequences for local social housing and the level of demand? How will the council deal with that?

What the Government propose in their social housing strategy does not add up or make sense and will have very contradictory outcomes in many areas. The fundamental problem behind what we are dealing with is supply. Some hon. Members have argued that we should have flexible rents that change as people move through social housing and that people should move into the private sector as they gain employment and increase their income. I do not agree that people should be in social housing only at times when they have a low income and that they should be encouraged to move through the system. Such arguments about the management of social housing are to do with the fact that we are managing a limited supply of housing. That is the fundamental problem and we have to increase that supply.

One issue with which we have faced problems in the past—successive Governments have been at fault in this regard as well—is the supply of land. We have put too many obstacles in the way of local authorities’ supplying land to build social housing. In fact, we have often put incentives in their way to dispose of it. We end up in the curious situation whereby local authority land is sold to a private developer for it to build a housing estate, so that we can try to get a residual amount of properties through that development for social housing under planning gain—usually through a housing association whose rents are higher than the local authority’s target rents. That is certainly the case in my area. That approach has failed to deliver the number of properties that we needed over the past two decades, and is a major contributory factor to the huge shortage of social housing in London.

I do not blame private developers. They do what private developers do. They swim in the sea of regulations that we create for them. The profits that they can make from private developments—buying the land, developing it and selling it on—are absolutely huge. We have failed to tap into those profits to recycle resources and invest in future social housing. As a consequence of that policy, until only a few years ago we saw, effectively, a year-on-year reduction in the units of social housing available for rent. So we need to ensure that the land is made available, and that local authorities are encouraged and given incentives to make that land available for future developments.

Where there have been developments they have often been of the wrong type, in which the properties are not available to local communities. Shelter did a study of eight local authority areas. One was Tower Hamlets, and although that is not my local authority the report makes very interesting reading. Between 2006 and 2010, 10,430 properties were built in Tower Hamlets. Barclays bank, whose headquarters is in Canary Wharf in Tower Hamlets, has just paid out over £1 billion in bonuses to its staff. I wonder what that £1 billion could have done for the 21,000 local people on the housing waiting list in Tower Hamlets if it had been invested in local housing.

Of the houses that were built in the four years between 2006 and 2010, 8,500 were in the private sector and just under 2,000 were built by housing associations. None were local authority builds. Fifty-four per cent. of the properties in Tower Hamlets have been built since 1966, and yet there are 21,000 on the waiting list. There is a very high vacancy rate in the new-build properties in private ownership. So we have been building houses at a heck of a rate in Tower Hamlets, but we have not been building them to meet the housing crisis there. I am not attacking the local authority; I am not attacking anyone. As I have said, it simply highlights the fact that the policy is completely and utterly wrong.

I have a development in my constituency, the Kidbrooke Regeneration. I visited some of the brand-new properties that had been built as the first phase of that development— beautiful properties. The price is £300,000 for a two-bedroom property overlooking one of my local parks. I asked who the target market was for those properties—who was expected to buy them. Was it local people living in big three or four-bedroom houses who were nearing retirement, whose children had moved on and who wanted to downsize to a comfortable flat? I was told “There may be one or two of those, but mainly we’re advertising abroad.” In that regeneration we have knocked down 1,900 local council properties. About 30% or 35% of the 4,400 properties will be social housing, provided through a housing association. Most of the private properties will be targeted at people who are not local.

I am not attacking the developer; it works in the market that is out there, and is trying to maximise its profits, as any company would. However, clearly we need to look at how we encourage development, and who we encourage it for, if we are ever to deal with the lack of supply that is at the root of all the problems that we are debating today.

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Andrew Love Portrait Mr Love
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If we searched long and hard enough we might be able to find an individual instance of someone receiving such sums. If I may say so, it is a bit like the Bob Crow issue that was raised earlier, and is entirely a diversion from the reality that people face in London. What we need to do in any debate in the House—indeed, it is incumbent on us to do so if we are to represent our constituents—is discuss the reality, rather than a figment of someone’s imagination involving Bob Crow.

Jane Ellison Portrait Jane Ellison
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We all accept that some of the exceptional cases that make the newspapers are just that. Nevertheless, at the general election the hon. Gentleman stood on a manifesto that made a commitment to look at and substantially reduce housing benefit. It was not just Conservatives who recognised that that was a problem; the hon. Gentleman’s own party manifesto recognised that it was, too, and made a commitment to reduce the cost of housing benefit.

Andrew Love Portrait Mr Love
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I would not disagree with anything that has just been said, or deny that that was in my party’s manifesto. We must always look at the cost of housing benefit, as with any other welfare benefit. Of course, there is sympathy for trying to limit the amounts paid out from the public purse, if for no other reason than to stop, to put it colloquially, the Daily Mail headlines that we see every day and in every way. I accept that, but it is not reflected in the changes that the Government have made. They have gone much, much further, and those changes impinge on the real lives of ordinary people. As was said only a few moments ago, the people who are affected are train drivers, tube workers and hospital staff.

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Jane Ellison Portrait Jane Ellison (Battersea) (Con)
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Before I make my few remarks, I draw Members’ attention to my entry in the Register of Members’ Financial Interests. In case anyone is curious about it, I rent out the flat I lived in previously. I am in every sense a small landlord. It is slightly unhelpful that whenever people talk about landlords, they constantly refer to Rachman and the like; it has peppered this debate. There are lots of good small landlords, just as there are some good big landlords. It is important that we acknowledge that and do not descend into cliché.

We have had a good debate. There are clearly some ideological differences across the Chamber and within parties, but we all know that there is an issue. Although the debate has been forced on us by circumstances, inasmuch as we appear to be almost the only MPs left in the building, it has been really useful to have a London-focused debate, because we all acknowledge that London is different. Indeed, it is unique.

As the Member for Battersea, I welcome and enormously enjoy representing a genuinely mixed community. I want to continue to represent a mixed community. One of the great joys of London is the amazing mix of people. This morning, I was out at an unearthly hour delivering leaflets in my constituency and I noticed the extraordinary conjunction of posh flats, tower blocks and rows of terraced houses. It is one of the things that makes London amazing and it is an honour to represent a London constituency.

I have a few remarks about a practical solution that my council, Wandsworth, has been putting into practice for some years. When I talk about the number of new homes created under the scheme, Members may think it is relatively small given the scale of need identified during the debate; nevertheless, it has brought real homes to real people in need over the last 10 years, and I take this opportunity to highlight it.

The project is called the hidden homes programme. In 2002, Wandsworth undertook an enormous survey of all its properties and started the first hidden homes initiative. It is an odd title, because obviously the homes are not hidden; they were previously hidden, but they should now be called uncovered homes. Wandsworth undertook a survey of its entire estate and looked at the potential to bring back into use as homes all the rooms and spaces that were designed into the 1950s and 1960s blocks but are no longer needed—storerooms, laundry rooms, the big old boiler rooms, some unused garage spaces and so on. Many of those spaces are abandoned and, as we all know, places where antisocial behaviour lurks. The opportunity was there not only to create some new homes, but to design out crime from some of the estates.

To date, Wandsworth council has built 183 affordable homes, latterly with a housing association partner. There is a potential programme to bring many more new dwellings on stream. Wandsworth estimates that around 10,000 such new homes could be created across London, and 70,000 nationally, if all councils replicated the programme. It means creating valuable additional housing units at relatively low cost because the land is already owned. The acquisition of land, which, as we all know, is one of the great hurdles in London because it is very expensive, is therefore not a problem, and the council can crack on with building.

Planning permission is also relatively easy to secure. If a scheme is offered that could design out crime in areas where antisocial behaviour takes place, residents will greatly welcome that. Again, a box is ticked on that front. Another particularly positive aspect of the building programme is that it often involves valuable ground-floor and basement properties. Many of those who come to our surgeries have particular needs, which means that ground-floor accommodation is greatly in demand. Some properties have been designed and built from the start with adaptations for families who have a disabled member. The scheme therefore has many positives, and the accommodation has been provided quickly.

Another nice aspect is that many properties are unique in character. As I was slotting a few leaflets through letterboxes this morning, I was thinking that, as many of us recognise, people in social housing have the same desire as anybody else to live in a unique home, which has character and perhaps some quirkiness, rather than something standardised and mass produced. Again, the scheme has much to offer.

In 2006, Wandsworth council built almost half the new council homes in London through the scheme. It is important, and I understand that three other boroughs are considering it. Some are already some way down the line of looking to do the same on their estates. Wandsworth council has always said that it is happy to share ideas and expertise. Obviously, people learn along the way—it is not always plain sailing. Some of the adaptations— I have come across one or two in basements—have been challenging. However, expertise is available in identifying potential sites and putting together suitable packages.

I encourage other Members to consider that approach in their authorities. As I said, some authorities are looking at the scheme, and it is well worth bringing it up and considering the potential. I do not pretend that it represents anything other than a small contribution towards solving London’s housing, but if it can be brought on stream quickly and relatively cheaply, what’s not to like?

I want briefly to consider under-occupation. I thank the hon. Member for Islington North (Jeremy Corbyn) for securing the debate, not least because, as a member of the Backbench Business Committee, I must say that it was not an easy day to offer to supplicant Members, either in Westminster Hall or the Chamber. There was not a huge queue for the day, so it was excellent that we could have the debate and that the hon. Gentleman secured it. However, I want to pick up on one of his points about people’s need for a civilised family life in the context of solving under-occupation. The right hon. Member for Lewisham, Deptford (Joan Ruddock) also mentioned that. More imaginative thinking is being applied to the matter. The problem cannot be solved by saying, “Here’s the number of people, here’s the number of rooms. That’s it.” Clearly, that will not work.

We have talked about the needs of older people. We need to recognise that it might not be possible to persuade someone to move from a three-bedroom flat to a one-bedroom flat, but it might be possible to move someone from a three-bedroom flat to a two-bedroom flat with room for the grandchildren to stay or for someone who comes regularly to keep them company. Those things are really important. Many housing associations and the National Housing Federation are considering them and trying to encourage people to take that approach. They are not taking the one-size-fits-all approach.

Lyn Brown Portrait Lyn Brown
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I say gently to the hon. Lady that although that is a very humane way of looking at it, the current housing benefit policy would not make it possible.

Jane Ellison Portrait Jane Ellison
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I am not sure I entirely agree with that, if we are talking about older people and pensioners, in particular. Nevertheless, the housing associations are considering the matter, and it is something that we could all look to encourage as well.

I want to deal with another matter that I feel strongly about and that has been alluded to already. I think that the hon. Member for Eltham (Clive Efford) asked why people are not angry or marching on Parliament and so on, given that so many people sign petitions about other things. There is a genuine problem in how we democratically represent the housing problem. One of the biggest challenges we face is that we often do not speak on behalf of the people who are not yet living in an area. The voices to which MPs and councillors listen—rightly—are those of the people already living in their areas. However, there remains a democrat deficit when it comes to speaking up for the people who want to live in an area but are not yet there. Naturally representatives will tend to voice the concerns of local residents.

MPs and councillors have to set themselves a challenge. It was slightly naughty of the hon. Member for Lewisham East (Heidi Alexander) to suggest that nimbys are limited to any one party. I do not think that is true; there are nimbys across all parties, and probably, if we look to our own consciences, everyone at some point in their political lives has thought in their heart of hearts, “Hang on, actually there is a real need for this housing, but there is a huge local campaign against it.” Sometimes we have to take courage and say to someone, “No, I’m sorry, but there is a real housing need.” I did it recently at an exhibition on my patch. A lady was saying, “Oh, there are going to be too many houses and so on”, and I said, “I’m sorry, but there is a terrific housing need in London, and this is an urban area with brilliant transport links. This is a really great place to build some new homes. So I do support this building.” We have all got to be prepared to do that from time to time.

On a tangential point in relation to what is happening today around the country, I voted no in the AV referendum this morning, mainly because I worry about encouraging blandness and people’s desire to try to please everybody. Sometimes we have to show leadership and be prepared occasionally to be unpopular, perhaps in the short term or with a particular group of residents. Giving political leadership means that occasionally we have to be prepared to go against the grain, and housing is a good example of an issue in which we should be prepared to do that. There are things we can do. We have to encourage great design and sensitive interaction with local residents. I have seen the amazing difference that it can make if the people who want to build have in place a good programme of communication, but I have also seen terrible programmes with really bad models and representations and in which people have been treated with arrogance. I have seen good and bad examples.

We have to do much to convince people about designing out antisocial behaviour and crime. We all know that when we talk about building new blocks of social housing, some people worry that it will bring a disproportionate amount of antisocial behaviour.

Heidi Alexander Portrait Heidi Alexander
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The hon. Lady has made a thoughtful and persuasive speech. On some of the understandable concerns that her constituents express about new developments, what assessment has she made of the provisions in the Localism Bill for neighbourhood forums? Does she think that those forums will come forward with plans to build new housing, including suitable housing for older people?

Jane Ellison Portrait Jane Ellison
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That is a fair question, and it takes us back to my point about leadership. We will have to engage with the problem, put the case to people and be a voice for those who have not yet got a home in our areas. People’s natural instinct is to be wary, and I acknowledge that it will not be easy, but I think we have a role there. There are sensible ways of proceeding—such as by presenting some of the benefits to the local area—although sometimes someone who objects to new houses being built might take one view as a resident, but will see things from another perspective when we talk to them about their children or grandchildren struggling to get on to the housing ladder or to find a home close to where the family has always lived. We all have a leadership role to play, although sometimes the objections will be entirely valid, as we all know. However, we have to be equally prepared to engage with the process and speak up on behalf of those who really are voiceless—people in great housing need or those who are sofa-surfing. They have fallen down the cracks of the democratic system, and we have to be imaginative on their behalf.

To finish, let me say that infrastructure planning is incredibly important, because as the hon. Lady said, people often object when they look at a scheme and ask, “Well where’s the school? Where’s the post office? Where are the car parking spaces? How will my local train or tube station cope?” It is important not to divorce the two, particularly in London—my view is that London is almost a mini-economy of its own. I am glad that many of the big infrastructure programmes have continued to go ahead and I welcome the fact that the Mayor is pressing ahead with some of those important transport capacity expansion projects. If we go to local communities with a plan that makes sense and that shows that we have thought through all the issues, we are more likely to find that people will engage willingly with the need to create more housing and expand our communities to meet the need that we all acknowledge exists in this amazing city that we all represent.