Housing and Social Security

Karen Buck Excerpts

Thursday 22nd June 2017 Commons Chamber

[The Secretary of State for Communities and Local Government (Sajid Javid)]

Before I open today’s debate, I want to reflect briefly on the horror that unfolded at Grenfell Tower last week. My thoughts are still very much with the victims, their families and their friends. All hon. Members will have heard the Prime Minister’s statement earlier today and, having visited the site for myself and met some of the bereaved families, I want to echo her determination to get to the bottom of whatever went wrong. I will also write to hon. Members shortly with a detailed update on what we are doing to support the people who have been affected by this tragedy, the progress we are making in rehousing people and the steps we are taking to improve fire safety at similar tower blocks across the country.

In the longer term—this point is perhaps more pertinent to this debate—it is clear that any changes in the wake of this tragedy should not just be technical or legislative ones. What happened at Grenfell also showed us all that we need a change in attitude. We all need to rethink our approach to social housing, and we need to reflect on the way in which successive Governments have engaged with and responded to social tenants. We do not yet know for sure whether this disaster could have been avoided if the people who called Grenfell Tower their home had been listened to, but we do know that for far too long their voices fell on deaf ears. If nothing else, let the legacy of Grenfell be that such voices will never, ever be ignored again.

It is good to see the right hon. Member for Wentworth and Dearne (John Healey) in his place, to which I am delighted to welcome him back after the general election. I am even more delighted that we have not swapped places. I know that we have a great deal in common—perhaps we use the same barber—and it is always a pleasure to debate with him. I look forward to doing so regularly during the next five years. Like other hon. Members, I have heard the right hon. Gentleman talk about his party’s policies on the big issues facing the country, especially the issue of how we can build more homes, and we will no doubt hear him set out some of those policies.

[Ms Karen Buck (Westminster North) (Lab)]

On the point about building more homes in the context of what the Secretary of State has said about social housing, does he accept and will he now confirm that, since 2010, the Government’s record on building social homes has been deplorable, with, in fact, a 97% fall in social housing starts?

[Sajid Javid]

There was a deplorable record on building social homes, but that was the record of the previous Labour Government. As the hon. Lady will hear shortly, as I rightly talk about their record, during the 13 years that Labour was last in office we saw, for example, a decline in socially rented homes of 420,000 units.

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[Sajid Javid]

I will come to the right hon. Gentleman’s record in particular in just a moment, and then I will let him know what I will and will not accept. Let me remind the House that, on Labour’s watch, the number of social rented homes fell by 420,000. In fact, the only thing about social housing that actually grew under Labour was the waiting lists—by a massive 70%.

[Ms Buck]

I am looking at the live tables—published online yesterday, I believe—concerning the record of the Government that the Secretary of State represents. It shows that the number of social rent starts was 39,492 at the end of 2009-10 and had fallen to 944 by 2016-17. Can he explain that?

[Sajid Javid]

Over the past six years, 330,000 new affordable homes have been built, which is a record in a six-year period and is certainly higher than the last six years of the last Labour Government. For every 170 right to buy sales, Labour built just one new council house—a replacement rate of less than 0.6%.

In 2010, when house building completions hit their lowest peacetime level since the great depression, who was the Minister in charge of housing? I will let hon. Members know: it was the right hon. Member for Wentworth and Dearne himself. You will forgive me, Mr Deputy Speaker, for being a little bit sceptical when the right hon. Gentleman stands up and claims to have all the answers.

What is the great answer to housing shortfalls and rising unaffordability? What is Labour’s magic bullet to fix the broken housing market? It is a Ministry of Housing. Young people struggling to get on the housing ladder or people who cannot find a place big enough for their growing family should not worry if nothing in their area is affordable because Labour is going to create a new Government Department. It is the typical Labour prescription: there is no problem that cannot be fixed with a bit more bureaucracy.

That is the difference between Labour and the Conservatives in a nutshell. We want to build more homes for hard-working people; they want to build more offices for civil servants. Moving the furniture around Whitehall may create the illusion of action, but it does not get any homes built. Only this Government can deliver the housing and market reforms that this country needs. Only this Government can provide the economic strength we need for house builders to thrive in a post-Brexit world. Only this Queen’s Speech takes the first steps towards fixing our broken housing market. That is why I am delighted to commend it to the House.

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[Ms Karen Buck (Westminster North) (Lab)]

I warmly congratulate the hon. Member for Aldershot (Leo Docherty) on a fine maiden speech, and congratulate others who have made maiden speeches today.

I hope I may be forgiven for particularly singling out my hon. Friend the new Member for Kensington (Emma Dent Coad), who not only made a fine and moving speech but has had to rise to the kind of challenge that I am not sure anybody has ever had to rise to so soon after being elected to Parliament. Kensington needs her, and she has certainly risen to that challenge in these days. I hope we will all do what we can to support her in the times ahead. I speak with particular feeling because some of the wards in the northern part of her constituency were in my constituency under previous boundaries, as was Grenfell Tower. What she said was therefore particularly powerful and moving for me.

I echo what my hon. Friend and others have said about the extraordinary community response at a time of serious failure in the institutions of the state in the aftermath of the tragedy, including from many constituents in north Westminster, a sister community who have been working tirelessly over the past week to help the victims and survivors of the disaster.

Along with very many other Members of Parliament, my hon. Friend and I have residents living in other tower blocks, many of whom are deeply concerned. I hope that few will have anything like the equivalent level of reason to be concerned, although they will still need reassurance. However, some may need more support and assistance than reassurance. It is absolutely incumbent on us to rise to that challenge.

[Steve McCabe]

Is not the one single bit of reassurance that everyone needs the knowledge that if local authorities are going to carry out inspections and take remedial action, there will be funding from the Government to deliver it?

[Ms Buck]

My hon. Friend is absolutely right. I and others pushed for that during the statement and at other opportunities. The local authorities, the arm’s length management organisations and other providers must have a guarantee. They must have the bills underwritten both for the inspection process and for any remedial works. I think we have nudged closer to that commitment this afternoon, but we still do not have it unequivocally. This is important because local authorities have had their budgets cut very severely, Kensington by 38% in the past five years and my own borough of Westminster by 46%. Local authorities, including the environmental health teams who are so important in this context, have had their budgets cut, and social housing providers have had a rent cut imposed on them, with an impact on housing revenue accounts and on management and maintenance in social housing. That has to be recognised. It was a policy imposed by the Government and it has implications that they need to respond to. That action has to be forthcoming.

The Government will need to demonstrate to us how quickly they can respond to the findings of the inquiry, which cannot be prejudged, of course, but actions need to be taken even before that. We have spoken about social housing in this context, but we need to remember that many residents in towers and high-rise blocks, even those built by local authorities, are not actually local authority tenants. In many cases, about a third are either leaseholders, or are legally subletting their properties to private tenants. Those people are all in different situations and subject to different regulatory arrangements, and there are real concerns that the fire safety and other standards applying in social housing do not automatically apply to private owners and leaseholders in social housing blocks. That must be urgently addressed by the Government.

In my view, we need to bring into force section 38 of the Building Act 1984, which would allow victims of breaches of building regulations to sue for damages. The Government could move on that. We need to introduce a statutory consultation process applying to tenants when there are major works in buildings. Such a process currently applies to leaseholders, but not to tenants. We need to amend the Regulatory Reform (Fire Safety) Order 2005 to allow landlords to go into tenanted properties and ensure that fire safety standards are comparable. We also need to impose new obligations on leases to enable landlords to require access for the purpose of making fire safety improvements, and so forth. There are regulatory changes on which the Government could act immediately and urgently—and they must do so—without in any way prejudging the findings of the inquiry and the separate actions that they will need to take afterwards.

I ask the Government to revisit a revised version of the Homes (Fitness for Human Habitation) Bill—I introduced the proposals as a private Member’s Bill, and the Opposition put them forward as amendments to the Housing and Planning Act 2016—because, particularly in an age of cash-starved local authorities, we need to enable tenants to enforce standards in law when there is substandard accommodation, as they can currently do with respect to properties in disrepair. This is not about having a new regulatory burden; it is about tenants being able to enforce such standards.

In my last remaining minute I want to raise one other matter. The absolute first priority today must be to house the survivors of the Grenfell Tower tragedy adequately—we must provide them with decent local accommodation—but that must not be at the expense of the needs of other people who are homeless and in desperate housing need, whether in Kensington, Westminster or other parts of London. At the moment, we are in the dire situation that homelessness is rising fast: it has risen by 17% since 2010, and just yesterday we saw figures showing that the number of households in temporary accommodation has risen by a staggering 61% since 2010. As has happened in Kensington and Westminster, many of those families have been moved away from their homes, their children’s schools and their support networks. Social housing is not part of the problem; social housing for these and other people is part of the solution, provided it is properly funded, decent and affordable.

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[Kevin Hollinrake (Thirsk and Malton) (Con)]

It is a pleasure to speak in this debate and to follow such excellent maiden speeches from Members on both sides of the House. I was here to listen to the tremendous contribution made by my hon. Friend the Member for Middlesbrough South and East Cleveland (Mr Clarke)—the first, I am sure, of many in this House.

I must draw the House’s attention to my entry in the Register of Members’ Financial Interests. I have been involved in the property market for 25 years and am still involved. I am deeply passionate about it, and I am very pleased by the Government’s clear and ambitious plans to increase house building by 1 million homes between 2015 and 2020, and by 500,000 more by 2022. Those are very ambitious plans.

I am delighted to see that the shadow Secretary of State is back with us in the Chamber. I tried to intervene on him earlier to question one or two of the facts that Opposition Members keep repeating. They keep saying that since 2010 house building has fallen to its lowest level since the 1920s, but the House of Commons Library shows that some 100,000 houses were built in 2009-10, and 153,000 in 2016. Where do these figures come from? The claim is that affordable housing building is at a 24-year-low—the shadow Secretary of State can intervene on me on this point—but we know that in the past six years we have built 304,900 affordable homes, and in the last six years of the Labour Government, 294,000 affordable homes were built. Members can choose their own opinions, but they cannot choose their own facts.

[Ms Buck]

Is the hon. Gentleman querying the Department for Communities and Local Government’s own statistics, on its website, which show that there has been a 97% drop in the number of social housing completions since 2010? Those figures are there on the website now to be inspected.

[Kevin Hollinrake]

The hon. Lady raises a valid point. There is a different definition. Social housing is part of the overall definition of affordable housing—that is true. The shadow Secretary of State will tell the hon. Lady that that is true. It is also true that we are building more affordable homes than the Labour Government were in their final six years in office.

Building more homes has to be our objective and Members on both sides of the House will agree that we must reform the planning process to deliver more homes and release more land, whether that is brownfield or greenfield. That must take up some of the slack to deliver the amount of housing we need.

We need not just to deliver more land but to reinvigorate some of the sectors of house building on which we have come to rely. Some of that is about our local authorities, and the Select Committee on Communities and Local Government reported on that just before Dissolution. We believe that local authorities should be given the opportunity and more levers to increase house building to previous levels—they were building about 100,000 homes a year back in the 1970s—but only if those houses are properly designed and communities are designed properly around those developments.

The key element of reforming planning to deliver more homes is the role of small and medium-sized enterprises in house building. In 2008, SMEs built 44% of new homes delivered in this country. Today, they deliver 26% of homes. It is not just about land; it is also about capacity. The difficulty for small house builders is that they cannot find the land. That is the primary difficulty: finding access to the land and to the finance.

A White Paper from the Department has accepted that we need to deliver more housing for more small sites, and proposes that in the future, instead of local authorities simply allocating a huge site that is ideal for a huge house build and drawing a big red ring around it, which is probably easier for those local authorities, a certain number of sites in that local plan must be allocated for smaller sites and for small and medium-sized enterprises. It recommends that 10% of those sites should be half a hectare or less. That is good progress, but we need to go further if we really want to get small builders back into the business of building houses. It is critical that they do that.

The other principal problem is finding finance. It is almost impossible for an SME house builder to get finance for their developments. The Government have recognised this with their £3 billion home building fund, but we need to go further. We need to ensure that the mainstream high street banks lend to those SMEs. Those banks are their first port of call, but that is a difficult conversation at the moment. In Germany, the state-backed bank, KfW, sits behind the loans to SME house builders, meaning that builders can keep building. Through that, Germany has been far more successful in ensuring that there is a mixed delivery of house building.

For the next couple of minutes, I will focus on something else of huge significance to the industry: the tenant fees ban. I am still involved in the business and I am told by my finance director that the ban will cost us around £800,000 a year, so hon. Members might think that I am against the legislation, but I support the fee ban. I recognise that there is a problem. It cannot be right that when a tenant finds a property they want, they are susceptible to charges of which they were not aware and which can vary wildly between different letting agents.

All legislation that we bring forward in this place cannot just be about the measures. Delivery—the oversight and enforcement—is also needed. My concern is whether the measure will be delivered with that proper oversight and enforcement. The team that currently manages that within the sector is the National Trading Standards Estate Agency Team near Bangor. That team does not have the capacity to deliver the necessary oversight. We need to ensure that if this legislation is brought forward, it drives out the cowboy operators, who will try to find a way around the rules, which cannot be right. If the legislation is well thought through, it can include new measures about rental property standards. We need to ensure that the rented property sector delivers an appropriate standard of rented accommodation.