New Housing Supply

John Penrose Excerpts

Monday 5th June 2023 Commons Chamber

[Mr David Davis (Haltemprice and Howden) (Con)]

I beg to move,

That this House has considered the matter of delivering new housing supply.

One of the critical issues facing our constituents today is housing. Whether it is young people struggling to get on the property ladder, tenants having to put up with high rents and substandard housing, or families who cannot afford an adequately sized home, across the political divide we are all acutely aware of the growing crisis we face. Seven out of 10 voters think that there is a national housing crisis. Housing is a top issue for millennials. After the first and second world wars, there were campaigns for homes “fit for heroes.” What we need now is a campaign for homes fit for a new generation.

It is worth pausing for a moment to reflect on why home ownership is so important. I think we all believe in the ideal of a property-owning democracy. MPs in every party will understand that buying your first home is a huge milestone in life. We all understand that having your own space and somewhere to call home is incredibly valuable. It gives people a stake in society and a sense that they control their own life. Ownership also provides much greater security than the rental market, which is especially difficult at the moment. It is not right that huge numbers of people, including families with young children, have to keep moving or are insecure and unable to properly put down roots anywhere. That is bad for all of us and undermines our collective sense of community.

House prices have reached unaffordable levels because, as is fairly evident, we have a housing shortage. The average home costs about £285,000. In London, where the picture is even more stark, the average cost is an enormous £523,000. Over the last 25 years, housing affordability has worsened in every single local authority across England, and younger people most acutely feel the impact of the crisis.

In my lifetime, the number of young families trying to buy a house has virtually halved. When I first bought a house, the average house cost three times the average income. Now it is between eight and nine times the average wage. In the last decade, over half of first-time buyers have had to rely on some kind of help from their parents. The increasing need to rely on the bank of mum and dad is widening the inequality gap and further eroding social mobility in the UK. The crisis is forcing those who cannot rely on well-off parents to fork out thousands of pounds more in rent, to stay at their family home for longer and to delay their plans to start a family.

Even those who can afford a home are getting less for their money. Since 1970, the average size of a living room in a new build property has declined by a total of 27%. The average floor space of homes has declined by almost 20% in that time. We need not only to build more houses but to build them better. Our constituents deserve and, rightly, expect both quantity and quality.

Obviously, housing is a matter of supply and demand. Let us deal with demand first. Since the mid-90s, the nation’s population has grown by between 9 million and 10 million, principally because of immigration. Governments of all persuasions—I am making this deliberately a non-party matter—have failed to build the homes required to meet that increased demand. The result has been a huge backlog in housing need—probably of 3 million or 4 million, although I have seen all sorts of estimates. Clearing that backlog and meeting new annual demand would require us to create several hundreds of thousands of homes every year for decades to come, which, again, all Governments have failed to do.

On the face of it, the answer is simple: build more houses. But with our planning system, that is far easier said than done. The real question is not whether to build, but where to build, and not just because demand is higher in some places than in others. All of us have run into vested interest groups who oppose new build estates. Often those groups can have legitimately held and valid concerns about overdevelopment, the impact on local amenities and infrastructure, or the concreting over of local countryside.

If we want to attack this problem properly, we should not see nimbys as irrational or selfish. Indeed, their feelings are entirely understandable. A home is probably the most significant investment that a family will ever make. So-called nimbys quite rightly want their children to grow up in a decent home in a good-quality neighbourhood. If someone has moved to a rural or semi-rural area, already facing stretched public services or congested roads, they will not wish to see their idyllic new home engulfed by rapid and substantial urban sprawl, or local infrastructure placed under unnecessary or additional stress.

[John Penrose (Weston-super-Mare) (Con)]

My right hon. Friend is making a powerful case and is absolutely right in the way he is laying out the problem and how people see it. Is he aware not just of nimbyism but of yimbyism—the “yes, in my backyard” movement? It says that many people are willing to accept densification, particularly in British towns, to see more investment in town centres and to breathe life back into those towns, both socially and economically. That goes with the grain of what people want and also cuts housing costs, both to rent and to buy.

[Mr Davis]

I agree entirely. It is slightly separate from the main thrust of my argument, but my hon. Friend is exactly right. One of the issues is quality of community, which is addressed directly by what he just said.

How do we get around the nimby problem in its conventional sense? I believe that a large part of the answer is garden towns and villages. It is not a new proposal but a tried and tested policy, albeit with some tweaks to deliver it in the 21st century. Indeed, my hon. Friend the Member for South Thanet (Craig Mackinlay) has spoken about it before, as have I, and there have been Policy Exchange think-tank papers on it. It is not that new, but it is worth resurrecting. In the 20th century, the garden city movement resulted in the creation of towns such as Letchworth and Welwyn Garden City, now populated by around 30,000 and 40,000 people in each case. Those new garden towns and cities were great successes. What is the measure of that? Nearly 3 million people live in the 32 towns created under the New Towns Acts 1946. Reviving these ideas will hold the key to solving much of the housing crisis.