Social Housing in London
Debate between Jeremy Corbyn and Jim Fitzpatrick
Jeremy Corbyn
Possibly, yes. I would like that Government to bite the bullet, just as Harold Wilson’s Government bit the bullet in the 1960s and 1970s, and were prepared to introduce rent controls and security of tenure in the private rented sector. That policy area needs to be developed.
Another important issue is the increase in the notional rent levels for local authorities and housing associations to 80% of market rates. That has had absolutely devastating effects on the affordability, or otherwise, of council properties in areas where councils choose to charge 80%. As my hon. Friend the Member for Ilford South (Mike Gapes) intervened on me, I shall cite the case of his borough. The average income in Redbridge of non-housing benefit tenants is £381 a week, and the average weekly rent is £102 a week. The median market rent of 80% of 2010 levels is £160 a week, so tenants in Redbridge are looking at a £60 a week rent increase, which is pretty bad, and I question the affordability of paying £160 a week on an average income of £381 a week.
Other boroughs are in a far worse situation. In Kensington and Chelsea, average income for non-housing benefit tenants is £370 a week, and current average rent is £113 a week, with 80% of market levels at £440 a week—in other words £110 a week more than such a tenant earns, so totally unaffordable. The borough with the lowest average income in London is Barking and Dagenham, where income levels in 2010 for non-HB tenants were £329 a week. Current average rent is £91 a week, and 80% of market rates is £148 a week. Even in Barking and Dagenham, which is regarded as “the most affordable place in London”, we are looking at 50% of pay going on rent alone in the public sector, never mind the private sector. The figures are available for every borough, and they make very grim reading indeed. The discretionary payments to London authorities to try to ameliorate the change to housing benefit should be much greater and more permanent, and the Government and the Select Committee on Communities and Local Government should look at rent controls and security of tenure in the private rented sector.
Jim Fitzpatrick (Poplar and Limehouse) (Lab)
My hon. Friend is making a powerful case for the social housing policy that Opposition Members strongly support, and I know that some Government Members do, too.
In Tower Hamlets, one of the poorest boroughs in the country, 80% market rents around Canary Wharf, which sits right in the heart of my constituency, are astronomical for ordinary people. If local authorities and housing associations apply the 80% threshold, they will drive local people out of the area where their families have lived for generations. In the case of the Bangladeshi community, for example, that area constitutes their arrival point, so they will no longer be able to stay within the bounds of their own community.
Jeremy Corbyn
Absolutely, and I endorse what my hon. Friend said. The average for Tower Hamlets is £248, but if it is assessed on an extremely local level—housing around Canary Wharf or at the edge of the City of London around Spitalfields—rent will become astronomically expensive and there will be rapid social cleansing.
What happened with Lady Porter in Westminster some years ago was regarded as appalling and disgraceful, and was social cleansing. People are coming to me for advice—and I am sure this is true for all London MPs—in desperation, frightened after what has happened, scared of where they are going to go and worried about the disruption of their children’s lives as they are forced out of private rented accommodation. We cannot sit back and watch the private rented sector grow rapidly in London without a greater sense of responsibility and intervening to protect people living in that sector.
What is the solution? Clearly, it ought to be the building of more homes for rent. I remember the halcyon days when my hon. Friend the Member for Edmonton (Mr Love) and I were members of Haringey borough council, and we berated the council leadership—we did a lot of that; they probably deserved it—for not building more council housing. However, I take it all back and apologise. In 1979, Haringey council built 1,000 council house dwellings. Other boroughs did broadly the same. A lot of that building was very good; a lot of it was homes with gardens; a lot has become very nice properties which, because of right to buy, have been sold on and have become very desirable properties indeed. I do not have a problem with people living in desirable properties—I am glad that they do—but I want everyone to be able to do so, with some security, and I want children to grow up with enough space, preferably with a garden. The achievements by many London boroughs at that time are something that we should applaud and seek perhaps to repeat, because there is a desperate need in London.