Affordable Homes Programme

Debate between Khalid Mahmood and Tanmanjeet Singh Dhesi

Tuesday 25th April 2023 Westminster Hall

[Mr Dhesi]

I thank my hon. Friend for that intervention. I commend Manchester City Council, the Mayor of Greater Manchester—my good friend Andy Burnham—and others who have made sure that councillors and Members of Parliament have come together to have that ambitious house building programme, but it seems the Government are asleep at the wheel. They have made bold statements, but are not following through. I am sure it has nothing to do with the fact that one in four Tory MPs are private landlords.

The much respected organisation Shelter reports that there are 1.4 million fewer households in social housing than there were in 1980. Combined with excessive house prices making homes unaffordable, demand has been shunted into the private rental sector, where supply has been too slow to meet need. That means above-inflation increases in rents, especially in the south of England and in places such as Slough.

On the affordable homes programme, the National Audit Office reports that there is a 32,000 shortfall in the Government’s original targets for building affordable homes. It goes on to say that there is a “high risk” of failing to meet targets on supported homes and homes in rural areas. Ministers’ targets will be confounded by double-digit inflation, soaring costs of materials and supply disruption, yet the Government seem to have no clue how to mitigate those factors. Perhaps the Minister will enlighten us today. As the NAO report outlines, the issue is not just the number of homes, and I share the NAO’s concerns that there is also a lack of focus on the quality, size and environmental standards of the new homes. Perhaps the Minister will also be able to provide some reassurance on those important points.

The NAO is not the only one with concerns about the delivery of the programme. I am pleased that the Chair of the Public Accounts Committee, my hon. Friend the Member for Hackney South and Shoreditch (Dame Meg Hillier), is here for the debate, and I am sure she will attest to the fact that in December the Committee’s report outlined that the Minister’s Department

“does not seem to have a grasp on the considerable risks to achieving even this lower number of homes, including construction costs inflation running at 15-30% in and around London.”

Exactly when will the revisions to the 2021 plan be published, as recommended and agreed by the Minister’s Department?

The fact is that we need a renewed national effort to fix the housing market and fulfil the promise of owning one’s own home to the next generation. That national effort may well have to wait for the election of a Labour Government, which will have a target of 70% home ownership.

[Mr Khalid Mahmood (Birmingham, Perry Barr) (Lab)]

I thank my hon. Friend for this important debate. Under the leadership of Ian Ward, Birmingham has committed to having 60,000 additional houses, but unfortunately, as my hon. Friend says, cost rises mean that that will be difficult to achieve. Also, housing associations create traps for people in my community, who are unable to afford to buy their properties or to have their children take them over. That is not the way forward; we need councils to be properly resourced to build the houses.

[Mr Dhesi]

I thank my hon. Friend for that intervention, and I commend the work of Councillor Ian Ward, whom I met recently. During my recent visit to Birmingham, I was able to meet council members, who spoke about their hopes and aspirations, but also to the constraints on them given limited resources from Government—indeed, they alluded to the high inflation they now have to contend with.

People sometimes say, “How can there be a housing crisis when there are cranes on our skylines and new houses and flats going up all over?” But those homes are rarely affordable and are often snapped up by investors off plan. Many remain empty—an investment by overseas property tycoons. That leaves hollowed-out communities with flats but no residents. That is why I am so glad that the Labour party has pledged to close the loopholes developers exploit to avoid building more affordable housing and give first-time buyers first dibs on new developments. I very much hope to hear more about those exciting plans from the Labour party spokesman, my hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook), later in the debate.