Housing

Kevin Hollinrake Excerpts

Tuesday 9th April 2019 Commons Chamber

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

I am glad that so many Members are keen to speak in the debate, which has been delayed for too long and is unfortunately too short. It has been almost a year since we had a housing debate in Government time. The Secretary of State told us in December:

“Housing remains the Government’s top priority”.—[Official Report, 10 December 2018; Vol. 651, c. 18.]

It is a pity that he has not made it the top priority in his diary today.

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

Will the right hon. Gentleman give way?

[John Healey]

No.

It is good to see the Housing Minister speaking for the Government today. He not only told the House that housing was the Government’s chief domestic priority, but told an industry conference in February that

“once we get beyond Brexit, housing will be the Government’s priority.”

Given the mess that the Government have made of Brexit for more than two years, and given that the Prime Minister is in Europe today begging for an extension just so that we can move on to the next stage of the negotiations, that bodes badly for the Government’s future focus on housing. I have to say to the Minister that Brexit is a very feeble alibi for a totally non-Brexit Department with six Ministers and 2,000 civil servants.

I enjoyed the Minister’s speech, but the story that he tries to tell is so at odds with the experience of millions of people up and down the country that he and his colleagues risk sounding complacent. They risk sounding as if they just do not get it. They do not get the public’s anger and frustrated hopes of a housing market that they feel is rigged against them. They do not get the despair at being one in a million on council housing waiting lists when the number of new homes for social rent built last year was just 6,453. They do not get the lives blighted by bad housing—children growing up in temporary accommodation hostels, renters too scared to ask landlords to do repairs, young couples stripped of the hope of home ownership and prevented from starting a family or putting down roots—and they do not get the fact that a systematically broken housing market demands wholesale change and cannot be fixed without big action from Government.

[John Healey]

Unfortunately, although there are good landlords and many tenants are satisfied with the homes that they rent, my hon. Friend has described the experience that too many of the country’s now 11 million renters face from day to day. After nine years in office, the Government just cannot carry on talking about what they are going to do. What they are doing at the moment simply is not working.

[Kevin Hollinrake]

The right hon. Gentleman has mentioned nine years, and what we are going to do. Does he not accept that the number of housing starts is roughly 100% higher than it was at the lowest point under a Labour Government in 2009? If he is not sure about that, he need only speak to any brickie, chippy or sparky. They will tell him that they are a lot busier than they were back then.

[John Healey]

The hon. Gentleman has a very short memory. In 2009 we were in the direct aftermath of a global financial crisis and recession. It was the action that the Government took then that kept house building going and helped to pull the country out of the crisis. More than a decade on, under this Government, the level of house building has still not reached the pre-crisis peak. We have seen a pitiful performance over the past nine years. The public have lost patience with a Government who, nine years on, try to blame their Labour predecessors.

The Government’s record is now very clear. The rate of home ownership is lower, with almost 900,000 fewer under-45s owning a home now than in 2010. The level of homelessness is higher: the number of people sleeping rough on our streets has more than doubled since 2010. Private rents are higher, with the average tenant paying £1,900 more than in 2010. The rate of social house building is lower, and in the last two years it has been the lowest since the second world war. Let me say this to the Minister. If the Government had only continued to build homes for social rent at the same rate as Labour did in 2009, there would be 180,000 more of those homes—more than enough to house every family in temporary accommodation, every person sleeping rough on our streets, and every resident in every hostel for the homeless.

The Minister said, in response to an intervention from my hon. Friend the Member for Hornsey and Wood Green (Catherine West), “We are very close to completing the rehousing of everybody who was involved in the Grenfell Tower fire”. I have to say that, nearly two years on from that shocking national tragedy, the Government’s action is still on go-slow. He would not give the House the figures, but one in 10 of the residents from the tower and one in three of the residents from the wider estate who were involved in the fire still do not have a permanent new home. Eight in 10 residents of other high-rise blocks across the country that are covered in Grenfell-style cladding have still not had it removed and replaced. Those are residents in 354 high-rise blocks across the country, nearly two years on from the fire.

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[Alison Thewliss (Glasgow Central) (SNP)]

Thank you for calling me, Mr Deputy Speaker; it is a wee bit sooner than I had expected to be called, but I am glad to speak for the SNP in this debate. Our record on housing in Scotland is excellent and far outstrips the record of the Conservatives in England. I am sure there is much the UK Government could learn from what Scotland has done.

Part of the problem with the Conservatives’ approach is its ideological underpinning. They insist on the dream of everyone owning their own home, totally undermining the fact that many people can live long, happy and productive lives in social rented housing. For many of my constituents, a social rented house is an aspiration, and they are perfectly happy to live in one. Indeed, my gran lived in social rented housing her entire life and never owned her home.

The Tories’ record on housing is one of their failed promises. The UK Government talk big but deliver very little, with flagship manifesto pledges disappearing almost as soon as they are made. House building in England has fallen to its lowest level since the 1920s, while evictions are at a record level, the lead cause of people becoming homeless is the end of a tenancy, and a mere one in five council homes is replaced when it is sold.

Contrast that with Scotland, where we have ended the right to buy for social rented housing, securing social rented housing stock for the future. No longer do houses disappear from the social rented sector and reappear almost instantly in the private rented sector at inflated rents that people cannot afford to pay. We have secured that investment, which has meant a huge amount to many of my constituents and to people right across Scotland.

In England in particular, hundreds of thousands of people are stuck on social housing waiting lists because new stock just is not being built and houses that are sold off are not replaced. All the while, homelessness is up by 50% and rough sleeping has risen for seven consecutive years. I note that the Minister said rough sleeping has fallen recently, but that is on the back of huge spikes.

[Kevin Hollinrake]

The hon. Lady talks about the great things happening with housing in Scotland, but what does she make of the fact that the target of delivering 35,000 homes between 2007 and 2016 was missed by 50%? Only 16,000 of the planned 35,000 were delivered.

[Alison Thewliss]

The Scottish Government’s house building record has been excellent. We have a target to build 50,000 new homes during this term of the Scottish Parliament, and houses are being built right across the country. The hon. Gentleman will remember from our time together on the Housing, Communities and Local Government Committee how well the Scottish housing sector was spoken about by those who came to give evidence to us. [Interruption.] The hon. Member for Ochil and South Perthshire (Luke Graham) should pay no attention to his colleague the hon. Member for Thirsk and Malton (Kevin Hollinrake), who, as he often does, has his own axe to grind on all this.

It is widely recognised that the Scottish Government are leading on housing policy. Our legislation on secure tenancies and in other areas has given renters in the private rented sector huge security. Ensuring that everyone has a safe, warm and affordable home is central to the Scottish Government’s vision of a fairer and more prosperous Scotland. People cannot get on in life if they do not have a secure tenancy, a warm home and a roof over their head.

The SNP remains on track to deliver on our target of building 50,000 affordable homes during the lifetime of this Scottish Parliament, which is backed by more than £3 billion of investment in the sector. There were 18,750 new build homes completed across all sectors in the year ending September 2018, an increase of 4%, or 635 homes, on the previous year. The latest statistics show that the Scottish Government have delivered nearly 82,100 affordable homes since 2007, which is significant. [Interruption.] The hon. Member for Ochil and South Perthshire chunters from a sedentary position, but things are not going nearly as well in England. We are building proportionately more homes, more quickly, and he would do well to listen to us about this.

That is all in the face of the challenges of austerity. Housing associations tell me they are deeply concerned about the Government’s social security policies. For example, the roll-out of universal credit has negatively affected both tenants and landlords due to the major increase in rent arrears. I hear that from housing associations in my constituency and across Scotland, and my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) could tell the House how housing debt has soared astronomically and how the Government have not learned the lessons.

A report this month from the Scottish Government shows that in East Lothian, for example, 72% of social housing tenants claiming universal credit are in arrears, compared with 30% of tenants overall—that is happening across England, too—and with a trebling of evictions for non-payment of rent over the year since universal credit was rolled out.

Some 88% of local authorities expect an increase in homelessness as a result of welfare reform over the next two years, and 75% expect that the roll-out of universal credit will increase homelessness. We are doing what we can in Scotland, and we have introduced a full mitigation of the bedroom tax, which people in England still have to pay. Without that, 70,000 individuals would lose, on average, around £650 a year. We also provide additional funding for direct mitigation of welfare reforms, direct support for those on low incomes and advice and other services.

Further, concerns remain on the UK Government’s right-to-rent scheme. There is a lack of clarity on what will happen with the scheme, and the Scottish Housing Minister, Kevin Stewart, has been in touch in light of the recent High Court ruling. What is actually going to happen with the right to rent? We need to know for the security and safety of our tenants in Scotland.

We are still waiting on the courts to see whether Serco’s lock change policy in Glasgow of August 2018 is unlawful. The policy has led to huge distress among those in the city of Glasgow with insecure immigration status, and we need to know the answer so that those affected have some certainty.

In Scotland, we are also taking a range of actions to bring empty homes back into use. There are many empty homes that could provide people with good housing and a secure future. Since 2010, the Scottish empty homes partnership has been instrumental in bringing more than 2,800 empty homes back into use, each and every one of them hugely valued both by communities that do not want empty homes and by those now living in them—the homes are no longer going to waste. Empty homes partnership funding is to double from £212,500 in 2018 to over £400,000 in 2021 to bring those empty homes back into productive use and to make homes for people who need them very much.

We have also created an ending homelessness together fund of £50 million over the five years from 2018-19 to support the prevention of homelessness and to drive sustainable change. Scotland has some of the world’s strongest rights for homeless people, but we are not resting on our laurels.

We are doing much more to tackle rough sleeping. We have a national objective to eradicate rough sleeping, and we have established a homelessness and rough sleeping action group chaired by Jon Sparkes, the chief executive of Crisis. The group has developed 70 recommendations on the actions required to end rough sleeping and transform the use of temporary accommodation. The Scottish Government accepted those recommendations and are now taking them forward. Jon Sparkes has said he is

“very pleased the Scottish Government has given in principle support to all of the recommendations on ending rough sleeping from the Homelessness & Rough Sleeping Action Group. The members of the action group have gone above and beyond to dedicate themselves to bringing forward the right recommendations that will have the biggest impact on the way people sleeping rough can access and receive services.”

In that light, we have been piloting Housing First. This is hugely important, and it will have a huge impact on reducing homelessness.

The Under-Secretary of State for Housing, Communities and Local Government, the hon. Member for South Derbyshire (Mrs Wheeler), has been to Scotland to hear about what is happening, and she has noted that she is pleased with what Scotland is doing—she said so at Question Time, so I assume she still is.

A recent documentary visited various cities, and the connectedness of services in Scotland—different services speaking to one another and taking action—was well commended, but we do not rest on our laurels. When there are still people sleeping on the streets of Glasgow, we must do more to ensure rough sleeping is ended, and ended soon. The Scottish Government’s strong direction of travel is key. We need to prioritise that, but it takes a lot more than warm words and things said in statements and manifesto pledges to make that happen.

Before coming here, I was reflecting on the number of housing developments in my constituency in the past few years. Off the top of my head, new houses have been built for social rent in the Gorbals, Pollokshields, Govanhill, the Toryglen transformational regeneration area, Oatlands, Calton, Bridgeton, Dalmarnock, the city centre, Anderston, Kinning Park and the Laurieston transformational regeneration area. None of them happened by accident. They happened because of the work of community-based housing associations, which strive to develop, build more and house their local communities. That comes on the back of the Scottish Government supporting them in everything they do and ending the right to buy to ensure that their investment is sound and can continue. The UK Government would do well to learn from what has happened on housing in Scotland, because our record is a good one.

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

It is a pleasure to speak after my Select Committee Chair; we agree on much, although I am not sure about selective licensing, which is too often a licence to print money for some local authorities. It is also a pleasure to speak with the Housing Minister on the Treasury Bench. I feel, from my short time in Parliament, that he has got at least as good a handle on these issues as anyone I have seen.

We need to build more truly affordable housing, both to rent and to buy. We cannot simply do what Labour would do—put more pressure on an overburdened taxpayer. We must do it in different ways. The best way to do it is to cut out the middlemen or middlewomen; I speak as a middleman who has been involved in the property market for 30 years. There are a couple of simple ways we could do that that are simply too good to miss. The Housing Minister is familiar with some of my ideas on this, particularly on delivering more affordable homes to purchase through the section 106 system.

Every year, we deliver around 25,000 affordable homes through section 106 requirements. They are typically sold to housing associations at 50% of market value. The housing association then rents them out at 80% of market value and puts them on their balance sheet at 100% of market value; nice work if you can get it. Why, instead of doing that, do we not simply sell those properties—or half those properties—to first-time buyers on low incomes, at 50% of market value? That would be in perpetuity and those first-time buyers could pass the properties on to the next person. There is no cost to the taxpayer whatsoever. It is good for them. It is good for the developers, who are dealing direct with their customers. The only people who probably will not be too keen on it are the housing associations, but that is not who we are here for; we are here for real people.

[Kit Malthouse]

My hon. Friend has raised this issue with me a number of times. I am keen to promote it with him. Will he meet me to discuss how we might promote it to councils?

[Kevin Hollinrake]

I certainly will.

[Mr Deputy Speaker (Sir Lindsay Hoyle)]

Order. I will just say to the Minister, you took 27 minutes or more, and every time you intervene puts another minute on. In fairness, I want to try to get everyone in.

[Kevin Hollinrake]

This proposal is also good for the community because people are buying those houses rather than renting them, which is very popular locally. To give a local example, in the town of Easingwold where I was born and brought up, 656 homes are being delivered, 279 homes affordable, all for renting, and only eight are two-bedroomed properties for young first-time buyers. That dynamic could be changed, and tens of thousands of homes delivered for first-time buyers on low incomes.

The second way to cut out the middlemen is through the pension system. Currently, residential property cannot be put in a pension. If we change that rule, lots of empty or unconverted space above shops could be changed overnight. We should allow those properties to be put in a pension, as long as—this would be the catch, but it is a fair one—those properties were made available at a social rent. We would widen the pension system to allow people to buy property to put it into a pension, as long as they let it out at a social rent. That would be good for the owner as a tax break and great for the tenant, and great for the taxpayer because the burden of housing benefit is reduced. Everyone wins, apart from the middleman.