Housing and Homes

John Healey Excerpts

Tuesday 15th May 2018 Commons Chamber

[John Healey (Wentworth and Dearne) (Lab)]

This is the Secretary of State’s first housing debate, but it is a bit like Groundhog day. He is the fourth Secretary of State, with the seventh Housing Minister, now in the ninth year of a Conservative Government, and it is clear from this debate that the Conservative party still has no plan to fix the housing crisis.

The Secretary of State may be new to the job, but he has been in government since the start in 2010. Surely he cannot look at the Government’s eight-year housing record and conclude that more of the same is what is needed. After eight years of failure on all fronts, how is the answer more of the same when, since 2010, we have seen 1 million fewer under-45s owning their own home and the lowest level of home ownership for 30 years? How can the answer be more of the same on homelessness when it has risen every year since 2010, and we now have 120,000 children growing up with no home? And how can the answer be more of the same when private renters face rents that are soaring way ahead of incomes? The average rent is now £1,800 a year more than before.

Finally, house building rates are still lower than they were at their peak under Labour, and fewer new social rented homes were started last year than at any time since records began.

[Kevin Hollinrake]

The right hon. Gentleman will be aware that last year’s figure of 217,000 additional homes is the second highest in the past 25 years. Completion levels have risen 30% and starts have risen 85% from their low points under Labour. He must welcome those increases in activity in the housing market.

[John Healey]

The hon. Gentleman is a hard-working, loyal Back Bencher, and I have to give him credit. He is making some of the same arguments the Secretary of State made when he said the Government are making good progress on supply. In truth, a full decade on from the worldwide financial crash, house building is still below the level it was before that global downturn.

[Siobhain McDonagh]

Is my right hon. Friend aware of the article in The Huffington Post at the beginning of the week, suggesting that 1,000 homeless families from Birmingham have been housed tens of miles away from their schools, families and jobs? Does he agree that that is probably because London councils are busy placing their homeless families in Birmingham, because that is the only way they can afford to house them, given that the public purse spent £1 billion on temporary accommodation last year?

[John Healey]

My hon. Friend is right. The number of families—now nearly 80,000—living in temporary accommodation because there are no homes available, let alone homes in their own area, is a scandal that shames us all. I am interested to hear what the Secretary of State has to say. It is not just in Newham; he has been in government since 2010, since when his own council has seen a fivefold increase in the number of families without a home living in temporary accommodation.

The Secretary of State said that we are now investing more in affordable homes, and he cited £9 billion, which of course is the figure for the rest of this Parliament. Even if that money is spent, spending will still be half the level it was in Labour’s last year. To give people a measure of it: in Labour’s last year, spending on building new, badly needed affordable homes was £4 billion; and last year, under this Government, whatever they say, it was less than half a billion pounds. No wonder we saw 40,000 new social rented homes started in 2009, in that last Labour year, and last year we saw fewer than 1,000.

The £28 million for the Housing First pilots is welcome, but let me gently say to the Housing Secretary that that is a small drop when compared with the £996 million the National Audit Office says is the annual cut in the Supporting People programme since 2010—a programme to help the homeless. Finally, the right hon. Gentleman makes the welcome argument that we need more social rented homes, but what does he say to the residents in his own area, where 6,022 are on the council waiting list and the number of new social homes rented homes built last year was zero? He has a lot to pick up on and a lot to learn.

We have seen eight years of failure on all fronts since 2010, and it is no wonder that the Prime Minister admitted that housing was a big part of why her party did badly at last year’s general election. As the Secretary of State has said, as the Prime Minister has said and as I have argued, the housing market is broken, and housing policy is failing to fix it.

I say to Conservative Members that at the heart of Tory policy is the wrong answer to the wrong question. Ministers talk big about total house building targets, but what new homes we build and who they are for is just as important as how many we build. Simply building more market-priced homes will not help many of those who face a cost-of-housing crisis, because that can influence prices only in the very long term. We have to build more affordable homes if we want to make homes more affordable, and the public know that. It is why eight out of 10 people now say the Government should be doing more to get new affordable homes built.

The public expect much more of Ministers—more urgency, more responsibility, more investment and more action to fix this broken housing market. That is why Labour has set out a bold, long-term plan for housing. It is what people need from their Government. We have made the commitment, with the plan to back it, that under a Labour Government we would see 1 million new genuinely affordable homes built over 10 years: the largest council house building programme for more than 30 years, building those new affordable homes at a rate we have not seen in this country since the 1970s. The very term “affordable” has been so misused by Ministers that it is mistrusted by the public, so Ministers should drop it and replace it with a new Labour definition linked to local incomes, not pegged to market prices.

We must build for those who need it, including the most vulnerable and the poorest, with a big boost to new social homes built as part of the programme, but we should also build Labour’s new affordable homes, both to rent and to buy, for those in work and on ordinary incomes, who are priced out of the housing market and being failed by current housing policy. These people are the just-coping class in Britain. They are the people doing the jobs we all depend on—IT workers, delivery drivers, call centre workers, teaching assistants, electricians and nurses. They are the backbone of our economy and the heart of our public services. This is the same Labour aspiration that led Aneurin Bevan to talk of the “living tapestry” of mixed communities as he led the big house building programme after the second world war.

[Mr Mark Prisk (Hertford and Stortford) (Con)]

The right hon. Gentleman’s leader is a keen fan of rent control to cap the total level of rents. Although that may superficially sound attractive, the right hon. Gentleman will understand the impact it will have on the prospects for that market; we may see people leave that market, so there will be fewer homes. Is he too a keen advocate of rent capping?

[John Healey]

I am surprised if the hon. Gentleman has not already done so, but he should read the housing manifesto that I launched with the Labour leader during the election campaign last year. It pledged longer tenancies, with a cap on the rent increases during that period. I shall come to the Labour plans for private renters in a minute. This debate is about differing views and very different visions of the housing problems that people face and the solutions that the country requires.

Our determination to get built the new genuinely affordable homes that are needed in this country was redoubled after the terrible Grenfell Tower fire. When the Grenfell survivors who contributed to our review say that

“tenants were victims before the fire”

and

“we’re treated as second class citizens in social housing”,

it is clear that radical, root-and-branch reform is required, so we will build more and we will build better, as the public sector has always done in housing. We will have leading-edge standards on energy efficiency and smart-tech design, so that Labour’s new affordable homes will be people’s best choice, not their last resort.

A huge majority of us in Britain aspire to buy our own home, yet the dream is currently denied to millions, especially young people facing a lifetime locked out of the housing market. We set out in our Green Paper a plan for Labour’s living rent homes, which would have rents set at no more than a third of average local household incomes and would be aimed at ordinary working families, young people and key workers—those who need to be able to save a bit for a deposit or who need a bit more to spend on the other things they need.

Labour’s low-cost home ownership home would be a new type of low-cost home, called first-buy homes. Again, they would be discounted, so that mortgage payments would be no more than a third of average local incomes. Crucially, the discount on those homes would be locked in so that it could potentially benefit not just the first first-time buyer, but future first-time buyers.

[Mr Jim Cunningham]

In the past, local authorities were able to handle housing crises, such as when way back in the ’60s they were building 300,000 homes a year. Having said that, local authorities also built houses for sale, helped first-time buyers and actually offered mortgages. It was the Thatcher Government who abolished that. Can we not do something about that?

[John Healey]

My hon. Friend might be interested to read the fine detail of the Green Paper that we launched last month, because it makes the commitment to look into enabling local authorities once more to provide mortgages for local people who may find the mortgage market closed off to them.

[James Cartlidge (South Suffolk) (Con)]

The right hon. Gentleman just committed to a policy of permanent discount. Is he aware that lenders generally do not involve themselves in those types of purchase, because they find the perpetual discount is very unattractive on repossession? When we had similar products in the past, such as the price discount covenant, only one or two lenders got involved and they required relatively high deposits.

[John Healey]

I have less concern than the hon. Gentleman about that. I recommend that he read the Green Paper. The point of Labour’s proposal is to create almost a parallel market that is permanently affordable to local people who are in work and on ordinary incomes—the very people the Government are currently failing and to whom the housing market is closed. [Interruption.] I give way to the hon. Member for South Norfolk (Mr Bacon). No? I beg your pardon, Madam Deputy Speaker. Labour’s policy on home ownership is about first-buy homes, first dibs for local people in all new developments and tightly targeted Help to Buy. That is the real hope that first-time buyers need.

I promised to come back to the hon. Member for Hertford and Stortford (Mr Prisk) on private renters. Since 2010, the number of households renting privately has gone up by more than a third, and there are now 5 million households renting privately throughout the country. The one thing that we cannot do is see a further slide back to those bad old days around the time of the second world war, when we had private rented housing that was unregulated, overpriced and badly maintained, and it was the only default housing for people earning ordinary incomes. What is needed is very clear: it is Labour’s plan for legal minimum standards, longer tenancies, a cap on rent rises and local licensing to drive out the rogue landlords. They are similar consumer rights that we all expect and all have in other markets, but not in housing.

Finally, the tragedy and unforgiveable scandal of the rising levels of homelessness in this country, particularly of those sleeping rough in the streets, is that we know what works because we have done it before. We did it before when the country was faced with rising homelessness in the early 2000s. Our action as a Government then led the independent Crisis and Joseph Rowntree Foundation homelessness monitor to declare that, by 2009, we had in this country seen what it called an unprecedented decline in homelessness. We back the new Homelessness Reduction Act 2017—we pay tribute to the hon. Member for Harrow East (Bob Blackman) for steering it through—but we cannot help the homeless without more homes. I say to the Minister: go beyond the Housing First pilot; consider requiring housing associations to set aside, let us say, 8,000 of their homes across the country so that those with a history of rough sleeping have a low-cost, secure home in which to rebuild their lives; and then help to fund a replacement, like for like, of those homes.

[Mr Richard Bacon (South Norfolk) (Con)]

rose—

[John Healey]

I gave the hon. Gentleman the chance to speak earlier. I will conclude now, because many Members wish to speak.

In conclusion, this has been a disappointing first debate with the Secretary of State, who seems—[Interruption.] I listened very carefully, but saw no evidence that he is willing to challenge his own Government’s thinking or to make the radical changes required to fix the housing crisis. This is the test for the Secretary of State and for the Government. It is a big challenge to political thinking, not just to policy decisions. When the evident answer to the housing crisis lies in a bigger role for councils, stronger regulation of private markets, greater investment by Government in new low-cost homes, higher legal standards on everything from energy efficiency to safety, and tougher conditions on public contracts and public funding, it is clear that Conservative ideology, not just Conservative policy, must change. I say to the House that it is also clear from the Secretary of State’s speech this afternoon that the country will only see this change—the change that millions of people need and want—with Labour in government.

[Several hon. Members rose—]