Social Housing

Jim Shannon Excerpts

Thursday 13th June 2019 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Members for Warwick and Leamington (Matt Western) and for Stroud (Dr Drew) for securing this debate. We can perhaps take it for granted that other things are currently occupying hon. Members and we would otherwise have a better turnout of people wishing to contribute to the debate. We have to be fair to everyone, wherever they are.

For me, there are two facets to this issue: homes to buy and rent, and social housing provision. Although Northern Ireland has a different set up for the allocation of social housing, the difficulties are the same. I wish to bring a Northern Ireland perspective to this debate, even if the Minister has no responsibility whatsoever for social housing in Northern Ireland—if only he did, we might be able to do some things.

Housing is a major issue in my constituency. Benefits might be pushing it at this moment in time, but housing continues to be the No. 1 priority. The Minister has been generous with his time, and in making himself available for meetings and discussions that we have asked for. I know he has a deep interest in his ministerial responsibility and takes it seriously. He is committed to addressing the problems and, like everyone else, we look to him for a satisfactory, positive and capable response.

When a young couple decide to marry and move in together that is a time for celebration, but such celebrations are short lived when we realise that the choices for first-time buyers and even renters are severely limited. As soon as a couple without children declare that they both work, there goes any chance of a social housing allocation—that has happened in many cases that I have been involved with—because there are simply not enough social housing projects in the works to meet the need. In my own borough council area of Ards and North Down, on 20 March 2018, there were 36,198 applicants on the social housing waiting list. Of those, 24,148 were in housing stress, which means that they needed housing quickly. In 2017-18, 11,877 households were accepted as statutorily homeless. The Northern Ireland Housing Executive does not build houses in Northern Ireland, although it did in the past. Housing associations now build them and we have had a number of social housing build projects in my constituency, which have certainly helped, but the fact of the matter is that we need to encourage more.

People will often say, “Well, you can rent privately.” Again, these figures will probably not correspond with those in other Members’ constituencies, because the rental system is different, but the median weekly rent for social housing is £77 a week for Housing Executive houses. The median weekly private rent is £98 a week. For those not working, the Government no longer make up the difference. For those who are working and are not in receipt of housing benefit, an extra £100 a month is hard to come by when statistics show that the Northern Ireland average disposable income is a fifth less than the UK average.

The issues for those seeking housing in Northern Ireland are critical. The fact is that we are not building enough homes to affordably rent and, due to price hikes, not many developers can afford to lower prices to social housing prices either. I believe we need to do more. I say that conscious of the fact that in Northern Ireland we need to do more, too. We need to build more to meet the need that is out there.

In Westminster Hall yesterday, I spoke on domestic violence and homelessness. Some people remain in abusive relationships because they fear that they have nowhere to go. If there was housing stock to go into, that fear would not hold people back from coming out of the cycle of abuse. The problem illustrated in yesterday’s debate is clear: if you are in a cycle of domestic abuse, getting other accommodation is extremely difficult.

The Crisis briefing provided for this debate highlighted the case in England. I believe the underlying issues are replicated in Northern Ireland. In 2017-18, fewer than 7,000 new homes were provided for social rent. Although that is a slight improvement on the post-war low of 5,900 social homes built, it is far lower than the recent peak of 40,000 in 2011 and the previous peak of 57,000 houses in 1992-93. In the three decades following the second world war, councils routinely built more than 100,000 homes a year for social rent. If we had those days back, I think the issue of those who need to rent would be addressed. We need to allocate more funding to build affordable homes to buy or rent. That would mean they could scrape together a deposit for a home. With the average income not allowing people to rent and save at the same time, we are seeing people stuck in a renting cycle, paying someone else’s mortgage and improving their home.

I recently worked on a private rent case, which is an example of the story I am trying to tell. The landlord put the house up for sale after his rental tenant of seven years had put in a new kitchen at her own cost. That is disgraceful, but it does happen. This single mother saved for years to fit the kitchen, yet she will never get the benefit of it. It is shocking that that should happen. It is little wonder that The Irish News reports:

“Over a third of 20-34-year-olds in Northern Ireland have yet to permanently move out, compared with around a quarter in GB...Over 36 per cent of people acquiring their home through Co-Ownership have children. According to the recent report from the Intergenerational Commission, millennials are half as likely to own their own home by the age of 30 as the baby boomer generation were at the same age.”

My second son Ian and his wife—they were married just over a year ago—bought a co-ownership home in Newtonards. Co-ownership homes provide a great opportunity for those who want to own a home but cannot pay the whole mortgage. It is 50% buy and 50% rental, but it does get them on the housing register. It gives them that opportunity, so I commend co-ownership.

To return to the quote from The Irish News relating to 20 to 34-year-olds in Northern Ireland, this is not from a lack of work or saving ethic, or a flamboyant lifestyle; this is to do with the fact that in early 2018 average pay was still £15 a week lower in real terms compared with 2008. It is harder for people and we are not making it easier for them by allowing them to do what so many in my generation did and get a wee council house that they then buy at a reduced price when they are able to afford it.

I am very fond of my colleagues on the Labour Benches and they know it. We get on well on many, many issues, but I support the right to buy. I always have supported it in my constituency, because I can see the benefits of it. I understand that things are different for some other constituencies, but I support the right to buy scheme. In Northern Ireland, we have restrictions—not all properties are available to buy. For instance, you cannot buy bungalows, because there is a dearth of bungalows. You can buy flats and houses, but you cannot buy bungalows.

We have a generation who are now expected to do it all. They pay for broadband at £40 a month, which is not a luxury but a necessity when banks and shops are closing their high street presence in favour of the low-cost web. They either pay astronomical car insurance and petrol or pay up to £60 a week for the train and bus to work. They might allow themselves a social trip to the cinema, which in my day—I am not sure if you are in the same age bracket as me, Madam Deputy Speaker; I think you are probably not—cost £3 for two tickets. That is a long time ago: the tickets now cost over £15! How do we expect them to have a quality of life which is taken for granted by so many of us in here and still have the ability to have a home?

We must make housing stock a priority across the UK. I think the Minister is committed to that; that is my feeling from my discussions with him. I say that honestly. I believe he has the opportunity to prove himself. That is what he has said he will do. It must be affordable to rent or buy, and to do that we need a more effective strategy than the one we currently have. That is why I have no difficulty in supporting the motion tabled by my colleagues on the Opposition Benches.

From the beginning, when I first became an elected representative many, many years ago, originally on Ards and North Down Borough Council and then in the Northern Ireland Assembly, the biggest issue has always been housing. It continues to be a big issue. Generations of hard-working people are crying out for the right to be safe and secure in a home. We need to do more to provide that for the so-called lower and middle-class people who are the backbone of this country.