Transport for London Bill [Lords]: Revival

Debate between Karen Buck and Emily Thornberry

Monday 16th November 2015 Commons Chamber

[Emily Thornberry]

I have to say that Islington residents who are on what could be seen as high incomes are very concerned about their children, as are those who are on middle and low incomes. How will children who were born in Islington remain in Islington, given the price of housing? The Mayor of London’s answer has been to redefine affordable housing. It is a little like getting rid of child poverty by taking income out of the definition.

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

People in my borough of Westminster now need an income of £77,000 to be able to afford what the Mayor of London has deemed to be an affordable property. My constituents, like those of my hon. Friend, look at the proliferation of new developments and see properties that they will never have the remotest chance of being able to afford. They want not just house building, but the building of affordable homes that they will have a chance to access.

[Emily Thornberry]

The point is this: once the land is gone, it is gone for ever. Once these luxury flats are built, Islington residents will never have a chance of being able to afford to buy them, and if no social housing or real affordable housing is built in inner London, that will be it. We need to defend very carefully the land available.

The Mayor of London has decided that affordable housing equates to 80% of market rent. That would be a laugh if it were not so tragic. It is like newspeak in “Nineteen Eighty-Four” and someone saying, “Say black is white and say it for long enough, and hopefully some fools will start to believe it.” In Islington, 80% of market rent is not affordable housing.

I read with alarm what was said in the Financial Times about housing. Transport for London is talking about affordable housing in the constituency of the hon. Member for Harrow East in outer London, but not in inner London. There are 21,000 people on the waiting list for housing in Islington. Does this Bill answer any of their problems?

[Emily Thornberry]

The hon. Gentleman makes a very important point. It brings us back to another rumour, which is that £700 million will be taken away from Transport for London in the comprehensive spending review and Transport for London is therefore even more in desperate need of a fire sale of our land to subsidise fares. London is the greatest capital in the world, and we need a proper transport system that is appropriate and helps our city to continue to be the lifeblood of this country. It seems to me to be short-sighted to the greatest extent to take away subsidy from Transport for London, because our city will grind to a halt. Once we have sold off that land and the opportunity for my constituents to live in affordable housing has gone, for the sake of their having cheaper fares for a year or two, what do we do then, having sold off the family silver in the way that is being suggested?

[Ms Buck]

Does my hon. Friend agree that risk comes in many different forms? The Evening Standard revealed a few weeks ago that there has been £100 billion of investment in the London property market from overseas since 2008. Some of that money comes from very dodgy sources, including money laundering. That kind of investment in property—where it is not transparent and the property is not properly managed—involves a fundamental risk to the London property market and all other sources that depend on such revenue.

[Emily Thornberry]

All of us have probably been down the river and seen all the developments that are happening. Members should look for how many flats have lights on at night, because if they do not, people are not living there. It is simply that somebody in Singapore can either invest a bag of gold or they can think, “No. Let’s buy a flat in south London, on the river with a lovely view. There will be someone to look after it. We can invest in that and keep it empty for years or decades.” Those empty flats are laughing at my constituents, who are in desperate need of proper housing. It seems to me that this opportunity is being frittered away.