Social Housing in London Debate

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Lyn Brown

Main Page: Lyn Brown (Labour - West Ham)

Social Housing in London

Lyn Brown Excerpts
Thursday 5th May 2011

(13 years ago)

Commons Chamber
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Mary Macleod Portrait Mary Macleod
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I take every single person who comes to my surgery with housing problems extremely seriously, and I deal with them, as I am sure the hon. Gentleman does, too. That is what a Member of Parliament should do.

Lyn Brown Portrait Lyn Brown (West Ham) (Lab)
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I like the hon. Lady, who often comes out with some good stuff. However, today, she is not on the best of wickets. How will she deal with constituents who come to her when they are about to be evicted because they somehow fall short of the bedroom standard? How does she think that that standard will be applied? Does she think that neighbours will tell on each other? Will there be a percentage figure for how often the bedroom is used as an indication of whether someone should be evicted? She talks about realistic policies, but she does not seem to have realistically engaged with that policy.

Mary Macleod Portrait Mary Macleod
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When any constituent comes to me in dire need, I work with the council to find a solution. I work to ensure some solution is found for that person. Rather than hon. Members talking purely about all the problems, which we know are vast and need to be tackled, I would like to hear some really good solutions from the Opposition.

As I said, the majority of tenancy agreements are currently made on a lifetime basis, and the Government have decided that the most reasonable approach is to ensure that a two-year minimum tenancy should be available for landlords to offer. However, longer-term tenancies would be expected to be provided to vulnerable households or those with children. All tenants will also have access to a mechanism that will enable them to move if their circumstances change—for example, if they secure work in another part of London or need to move to be closer to other family members.

Earlier, it was asked what the Mayor of London has been doing. I have already mentioned the 50,000 affordable homes that he will deliver by the end of his mayoral term. However, he also made several other promises to help London: to halve severe overcrowding in social housing by delivering larger, better-designed homes and more family-sized homes; to provide major regeneration; and to end rough sleeping. He has taken a range of measures such as providing a record number of affordable starts—a 35% increase in 2009-10 on 2007-08, the last year of Ken Livingstone’s administration.

More family-sized, affordable homes have been provided under the current mayoral administration than in the previous 10 years, with around 40% social rented homes with three or more bedrooms to help deliver the goal. Some of the red tape has been removed in the draft replacement for the London plan, including the 50% affordable homes target—that was never going to be achieved in the good times, and it would stifle development in the downturn. There has also been a major programme to unlock stalled regeneration schemes, leading to £200 million investment in more than 10 schemes across London. There is also London’s biggest programme to bring empty homes back into use, trebling investment to £60 million, and 1,700 empty homes have been brought back into use so far. Progress has been made. That is not to say that no problems remain, but I stress that some progress has been achieved.

In summary, there is no doubt that the current system of social housing is broken and it was critical for the Government to find ways to improve it. However, there is also room for more innovation. We need to be aware that any provision that simply seeks to allocate supply on a more efficient or compassionate basis will fail unless it is linked to demand-side reforms. Of course, that takes us into the wider issues of transport and infrastructure planning and regional economic policy.

There is scope for innovation, and I believe that the extended freedoms provided to local authorities in the Localism Bill will help encourage that. In London, the Mayor will play a critical role in outlining the strategy and in driving forward his commitments.

We all agree that an effective housing model is important to London, where more than 8 million people live. I congratulate the Government and the Mayor on their aim to raise aspirations and promote opportunities; improve homes and neighbourhoods; maximise the delivery of new homes and end rough sleeping; strengthen localism and reduce dependency; create a more flexible system; try to find a better use of resources; and make the system fairer.

We are discussing improving people’s lives, especially those of the most vulnerable, throughout the city. This is an example of politics making a real difference to people and creating stronger communities.

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Andrew Love Portrait Mr Love
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I would not disagree with anything that has just been said, or deny that that was in my party’s manifesto. We must always look at the cost of housing benefit, as with any other welfare benefit. Of course, there is sympathy for trying to limit the amounts paid out from the public purse, if for no other reason than to stop, to put it colloquially, the Daily Mail headlines that we see every day and in every way. I accept that, but it is not reflected in the changes that the Government have made. They have gone much, much further, and those changes impinge on the real lives of ordinary people. As was said only a few moments ago, the people who are affected are train drivers, tube workers and hospital staff.

Lyn Brown Portrait Lyn Brown
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Is it not the case that the Government have changed and cut housing benefit for 1 million people to deal with what may be just a handful of people in the extreme circumstances of charging the taxpayer enormous amounts for their rent?

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Jane Ellison Portrait Jane Ellison (Battersea) (Con)
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Before I make my few remarks, I draw Members’ attention to my entry in the Register of Members’ Financial Interests. In case anyone is curious about it, I rent out the flat I lived in previously. I am in every sense a small landlord. It is slightly unhelpful that whenever people talk about landlords, they constantly refer to Rachman and the like; it has peppered this debate. There are lots of good small landlords, just as there are some good big landlords. It is important that we acknowledge that and do not descend into cliché.

We have had a good debate. There are clearly some ideological differences across the Chamber and within parties, but we all know that there is an issue. Although the debate has been forced on us by circumstances, inasmuch as we appear to be almost the only MPs left in the building, it has been really useful to have a London-focused debate, because we all acknowledge that London is different. Indeed, it is unique.

As the Member for Battersea, I welcome and enormously enjoy representing a genuinely mixed community. I want to continue to represent a mixed community. One of the great joys of London is the amazing mix of people. This morning, I was out at an unearthly hour delivering leaflets in my constituency and I noticed the extraordinary conjunction of posh flats, tower blocks and rows of terraced houses. It is one of the things that makes London amazing and it is an honour to represent a London constituency.

I have a few remarks about a practical solution that my council, Wandsworth, has been putting into practice for some years. When I talk about the number of new homes created under the scheme, Members may think it is relatively small given the scale of need identified during the debate; nevertheless, it has brought real homes to real people in need over the last 10 years, and I take this opportunity to highlight it.

The project is called the hidden homes programme. In 2002, Wandsworth undertook an enormous survey of all its properties and started the first hidden homes initiative. It is an odd title, because obviously the homes are not hidden; they were previously hidden, but they should now be called uncovered homes. Wandsworth undertook a survey of its entire estate and looked at the potential to bring back into use as homes all the rooms and spaces that were designed into the 1950s and 1960s blocks but are no longer needed—storerooms, laundry rooms, the big old boiler rooms, some unused garage spaces and so on. Many of those spaces are abandoned and, as we all know, places where antisocial behaviour lurks. The opportunity was there not only to create some new homes, but to design out crime from some of the estates.

To date, Wandsworth council has built 183 affordable homes, latterly with a housing association partner. There is a potential programme to bring many more new dwellings on stream. Wandsworth estimates that around 10,000 such new homes could be created across London, and 70,000 nationally, if all councils replicated the programme. It means creating valuable additional housing units at relatively low cost because the land is already owned. The acquisition of land, which, as we all know, is one of the great hurdles in London because it is very expensive, is therefore not a problem, and the council can crack on with building.

Planning permission is also relatively easy to secure. If a scheme is offered that could design out crime in areas where antisocial behaviour takes place, residents will greatly welcome that. Again, a box is ticked on that front. Another particularly positive aspect of the building programme is that it often involves valuable ground-floor and basement properties. Many of those who come to our surgeries have particular needs, which means that ground-floor accommodation is greatly in demand. Some properties have been designed and built from the start with adaptations for families who have a disabled member. The scheme therefore has many positives, and the accommodation has been provided quickly.

Another nice aspect is that many properties are unique in character. As I was slotting a few leaflets through letterboxes this morning, I was thinking that, as many of us recognise, people in social housing have the same desire as anybody else to live in a unique home, which has character and perhaps some quirkiness, rather than something standardised and mass produced. Again, the scheme has much to offer.

In 2006, Wandsworth council built almost half the new council homes in London through the scheme. It is important, and I understand that three other boroughs are considering it. Some are already some way down the line of looking to do the same on their estates. Wandsworth council has always said that it is happy to share ideas and expertise. Obviously, people learn along the way—it is not always plain sailing. Some of the adaptations— I have come across one or two in basements—have been challenging. However, expertise is available in identifying potential sites and putting together suitable packages.

I encourage other Members to consider that approach in their authorities. As I said, some authorities are looking at the scheme, and it is well worth bringing it up and considering the potential. I do not pretend that it represents anything other than a small contribution towards solving London’s housing, but if it can be brought on stream quickly and relatively cheaply, what’s not to like?

I want briefly to consider under-occupation. I thank the hon. Member for Islington North (Jeremy Corbyn) for securing the debate, not least because, as a member of the Backbench Business Committee, I must say that it was not an easy day to offer to supplicant Members, either in Westminster Hall or the Chamber. There was not a huge queue for the day, so it was excellent that we could have the debate and that the hon. Gentleman secured it. However, I want to pick up on one of his points about people’s need for a civilised family life in the context of solving under-occupation. The right hon. Member for Lewisham, Deptford (Joan Ruddock) also mentioned that. More imaginative thinking is being applied to the matter. The problem cannot be solved by saying, “Here’s the number of people, here’s the number of rooms. That’s it.” Clearly, that will not work.

We have talked about the needs of older people. We need to recognise that it might not be possible to persuade someone to move from a three-bedroom flat to a one-bedroom flat, but it might be possible to move someone from a three-bedroom flat to a two-bedroom flat with room for the grandchildren to stay or for someone who comes regularly to keep them company. Those things are really important. Many housing associations and the National Housing Federation are considering them and trying to encourage people to take that approach. They are not taking the one-size-fits-all approach.

Lyn Brown Portrait Lyn Brown
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I say gently to the hon. Lady that although that is a very humane way of looking at it, the current housing benefit policy would not make it possible.

Jane Ellison Portrait Jane Ellison
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I am not sure I entirely agree with that, if we are talking about older people and pensioners, in particular. Nevertheless, the housing associations are considering the matter, and it is something that we could all look to encourage as well.

I want to deal with another matter that I feel strongly about and that has been alluded to already. I think that the hon. Member for Eltham (Clive Efford) asked why people are not angry or marching on Parliament and so on, given that so many people sign petitions about other things. There is a genuine problem in how we democratically represent the housing problem. One of the biggest challenges we face is that we often do not speak on behalf of the people who are not yet living in an area. The voices to which MPs and councillors listen—rightly—are those of the people already living in their areas. However, there remains a democrat deficit when it comes to speaking up for the people who want to live in an area but are not yet there. Naturally representatives will tend to voice the concerns of local residents.

MPs and councillors have to set themselves a challenge. It was slightly naughty of the hon. Member for Lewisham East (Heidi Alexander) to suggest that nimbys are limited to any one party. I do not think that is true; there are nimbys across all parties, and probably, if we look to our own consciences, everyone at some point in their political lives has thought in their heart of hearts, “Hang on, actually there is a real need for this housing, but there is a huge local campaign against it.” Sometimes we have to take courage and say to someone, “No, I’m sorry, but there is a real housing need.” I did it recently at an exhibition on my patch. A lady was saying, “Oh, there are going to be too many houses and so on”, and I said, “I’m sorry, but there is a terrific housing need in London, and this is an urban area with brilliant transport links. This is a really great place to build some new homes. So I do support this building.” We have all got to be prepared to do that from time to time.

On a tangential point in relation to what is happening today around the country, I voted no in the AV referendum this morning, mainly because I worry about encouraging blandness and people’s desire to try to please everybody. Sometimes we have to show leadership and be prepared occasionally to be unpopular, perhaps in the short term or with a particular group of residents. Giving political leadership means that occasionally we have to be prepared to go against the grain, and housing is a good example of an issue in which we should be prepared to do that. There are things we can do. We have to encourage great design and sensitive interaction with local residents. I have seen the amazing difference that it can make if the people who want to build have in place a good programme of communication, but I have also seen terrible programmes with really bad models and representations and in which people have been treated with arrogance. I have seen good and bad examples.

We have to do much to convince people about designing out antisocial behaviour and crime. We all know that when we talk about building new blocks of social housing, some people worry that it will bring a disproportionate amount of antisocial behaviour.

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Lyn Brown Portrait Lyn Brown (West Ham) (Lab)
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Follow that! Today’s debate would be really important at any time, and I am really grateful to my hon. Friend the Member for Islington North (Jeremy Corbyn) for securing it, because as other hon. Members have said, it is a good idea for Members from the capital to get together and debate subjects that are central to the capital.

I am pleased to see the Minister in his place, because he represents a London constituency so I know that he will be able to empathise, at least, with some of the issues that we are bringing forward today—and as he is a West Ham United supporter, I am sure that he is honourable enough to take note of the concerns expressed in the House and perhaps try to do something about them. When we are thinking about our national housing policy, we might want to look specifically at the needs of the capital within that, where a one-size-fits-all approach may not be possible, ethical or even manageable, in the long or even the short term. I ask the Minister to listen carefully to the arguments that have been so persuasively advanced from both sides of the House, and see whether he can do anything to influence Government policy in this area.

The judgment that many experts have reached is that taken together, the Government’s policies will make it increasingly hard for people on low incomes to find a decent place to live in London. What happens to social housing and its supply, security and affordability are central to the story that will unfold across the country, and especially in London, in the next few years. As we have heard Labour Members say time and again, Ministers have announced a raft of policies that will, among other things, reduce and restrict the financial support for housing available to many who are already struggling on low and fixed incomes. The Government will end security of tenure in social housing for new tenants and penalise social tenants who have just one spare bedroom.

The Government have tried to assert that the measures are part of a solution that somehow progresses fairness and flexibility, but there is more than enough information now for us to see that their approach will lead to new problems without seriously addressing the core priority, which must be to increase the supply of genuinely affordable housing. That is important for all of London, and for our national economy. The shortage of decent affordable housing in London is holding back economic growth and the creation of a socially successful city for residents and businesses alike.

London clearly faces big housing challenges. That is not new; it has been the case for some time. Labour Members have confronted the Government with the issues in previous years, so we are not saying these things simply because a Government of a different colour have been elected. The city’s population has been increasing steadily since the 1980s, which has led to high and sustained demand for housing. House prices have held up better in London than anywhere else in the recession. The upshot is that the average London house costs about 14 times the average London annual salary, taking home ownership further and further beyond the reach of those on low and even modest incomes.

For many, the only realistic option is renting, but probably not in the social housing sector, as there are more than 800,000 people on housing waiting lists in London—more than 30,000 in my area of Newham alone. Shelter says that at the current letting rate, it will take Newham council 38 years to clear the list, so for most of those waiting, social housing is just a dream. The Government have correctly noted that people who are not working are over-represented in social housing, but if there were more social housing we would see a more mixed community living in it; it is as simple as that. The Government have incorrectly concluded that social housing is the primary problem, and that the way to solve it is to end secure tenancies.

As the Minister is a London MP, he will understand that the extraordinary pressure on social housing means that it is increasingly occupied by the people with the greatest needs, such as the elderly, the disabled, the chronically sick and lone parents. The Government’s response—ending secure tenancies—misses the fundamental point, and will cause difficulties for vast numbers of residents. In Newham 35% of households already rent privately, and the demand for that form of accommodation seems sure to rise. If we consider all those facts, it becomes obvious that the top priority, and the most cost-effective thing to do, is simply to create more social housing in London.

During the recession the Labour Government increased investment in the construction of new affordable homes, and the volume coming on stream has risen for several years as a direct result, protecting construction jobs and enabling the economy to continue at least to bubble along in the circumstances. Last year, however, the new Government decided to slash the budget in the spending review, and whereas more than half of the cost of any housing association building scheme used to be met from capital grants, that will go down to 20%, which is far too low. Experts say that with much less public investment, the number of new social home completions will inevitably fall.

The Government claim that that need not be the case, and say that the difference can be made up both by borrowing, which worries many housing associations, and, as we have heard from Labour Members, an increase in the income from higher rates, which worries all of us. Under the Government’s so-called “affordable rent” model—my hon. Friend the Member for Hammersmith (Mr Slaughter) nicked the term “Orwellian” from me—rents can be set at up to 80% of the market level, threatening to price many people out of their home in the capital, especially larger families, once the universal benefit cap of £20,000 a year kicks in.

We are about to see major disruption in the private sector too. Average rents vary enormously in London, so pegging local housing allowances city-wide will instantly price some households out of some districts, making London more socially segregated and geographically unequal, and further increasing churn. I do not want hon. Members to think that churn is some kind of social or geographic term with few or no consequences. It results in children being shunted from house to house, living in poor conditions and temporary accommodation, often over chip shops or Chinese takeaways. It has profound effects on health, education, inclusion in the community and mental well-being. It weakens the sense of community across London while giving tenants little reason to invest in their home or local area and become part of an inclusive community by generating income and making a contribution. Thousands of people are expected to be displaced outwards from the centre, risking jobs and work, child care and schools for families with children, and breaking valuable ties with GPs and hospitals for the elderly and disabled.

By 2016 most of inner London will be unaffordable for tenants claiming local housing allowance, so cheaper neighbourhoods in outer London will have to house many more people. Those areas, which include my part of east London, already have high rates of deprivation and unemployment, so they are poorly placed to cope with a surge of incomers with acute housing and other needs. Newham expects people to migrate from more expensive areas nearby such as Hackney and Tower Hamlets, putting further strain on hard-pressed council services that have been subject to big cuts, and increasing the gap between supply of and demand for school places in the borough.

My constituents have problems of their own. Newham has the fourth highest level of child poverty in the country. Research for the East Thames Group confirms that in our area more than 65% of households will be unable to afford a three-bedroom home at the 80% market rent, which is a very high number. I am sure that the Minister will not want to see such results in Newham or elsewhere, because the churn and movement resulting from higher rents will effectively find its way to Bromley and surrounding areas.

What will people who find themselves in this position do if they are on a low or fixed income and cannot make up the shortfall? Apart from moving to cheaper areas, with all the problems that that entails, they seem to have only two options. Either they can, as my hon. Friend the Member for Eltham (Clive Efford) said, move to a smaller home—further increasing the number of overcrowded households in the city, which is already worryingly high—or they can try to hold on, as they do. They try to hold on, despite the odds against them, despite it being mathematically impossible, because they do not want to move the children, or because they have roots in the area that make their property so important to their life. They will go into arrears and run up huge debts, increasing the risk of real poverty and homelessness.

The Government’s approach rests in part on the premise that reducing local housing allowance will force landlords to lower their rents, but experts say that that is wishful thinking in London, where the demand for rented accommodation is unusually strong—and, as Ministers are keen to point out, one cannot buck the market. They also risk prompting an increase in homelessness—a shocking reversal in trend after a series of years in which the number of homeless households was reduced, thanks to the successful preventive policies of the Labour Government.

When taken together, rather than improving the position of people in housing need in London, the Government’s policies look like making things so much worse, creating needless distress and huge destruction along the way. That means that Ministers have some serious questions to answer. First, they need to explain where, in the city, people on low incomes will find decent affordable accommodation in future, once all the policy changes have come into effect. They also need to explain why they have chosen to introduce measures that will make life considerably harder for thousands of Londoners, including many vulnerable elderly and disabled people, for no good end, instead of focusing relentlessly on increasing the amount of affordable social housing.

People need homes, not just a roof over their heads. Secure tenure is an essential feature of a home, and that is what social housing should continue to provide. Social housing’s key defining characteristics have always been security and affordability, so that those in housing need can access it. But now it seems that Government policies will make it impossible for either of those conditions to go on being met in London.

Ministers need to explain how, under their policies, the social housing that does exist can possibly still be worthy of the name. Instead of introducing confused policies that will rip communities apart and leave many living in insecure inadequate housing—or worse, homeless—the Government must start delivering the decent affordable housing that is so desperately needed.