Planning for the Future

Matt Western Excerpts

Thursday 12th March 2020 Commons Chamber

[Robert Jenrick]

That is a very interesting idea, and one that I will give careful thought to. My hon. Friend and I worked together on the creation of First Homes, and I am very grateful for his views on that. He is absolutely right that this will require both supply and demand-side reforms. That is why the planning system is so important in unlocking more land in the places where people want to live, but it is also important to have ways of getting people on to the housing ladder, and First Homes is just one of those options. It will enable people in their local area to get 30% discounts on new homes. I recently met the major house builders, who are fully supportive, and I hope that we will see those homes on the market in this country by the end of the year.

[Matt Western (Warwick and Leamington) (Lab)]

I am sure the Secretary of State is aware that we are building at some of the lowest densities in Europe, which is causing us to have to build on floodplains—although I appreciate what he said earlier. If we are really talking about sustainable development, surely we have to build at density in and around our towns, as opposed to allowing the spread into our rural communities.

[Robert Jenrick]

I completely agree with the hon. Gentleman, and I hope that that is what he took away from the tone and substance of my earlier remarks. In reviewing the planning system and how we calculate local housing need, we will be trying to push development towards urban areas and existing clusters, and away from needless urban sprawl and the ruination of the countryside. We will be using the planning system to encourage that. Some of the planning freedoms, for example, will help people in their everyday lives, allowing them to extend their own properties or build upwards on their homes, and allow entrepreneurs to buy derelict, disused buildings and turn them into housing, to get housing going in towns and cities at a pace that we have not seen for many years.

Local Government Finance (England)

Matt Western Excerpts

Monday 24th February 2020 Commons Chamber

[Mr Kevan Jones (North Durham) (Lab)]

The Secretary of State opened the debate by announcing that this is the best local government funding settlement for a decade. That would not take much beating when we consider what has happened over the past 10 years. In the previous debate, on police funding, I referred to the year-zero approach, because it is as though anything that happened before December 2019 was someone else’s fault and had nothing at all to do with this Government; as though they are a new Administration who are coming in to put everything right. But most of the Ministers now on the Front Bench voted for the austerity of the past 10 years, so it is with some chutzpah that they are now trying to convince us that they had nothing to do with it.

We also now have a key in-word, which we will hear a lot more of. The hon. Member for North West Durham (Mr Holden) mentioned it when he talked about “levelling up”. Well, it will take a hell of a lot of levelling up. I will come on to answer his points about Durham County Council in a minute, because he is clearly going to try to play dog-whistle politics, which does not surprise me at all. He welcomes this statement as though it means extra money for the county council. Yes, this settlement is for this year—it is a one-year settlement. I hope that when the council and the police commissioner put up the local government tax, he does not blame Durham County Council. To do that would be to abnegate his responsibilities, as he would be welcoming it in this place, but saying another thing in County Durham. I look forward to him supporting whatever difficult decision the police commissioner and Durham County Council have to make on the local council tax precept. No doubt, he will try to say something different locally.

This is a one-year settlement. We now have the so-called new fairer funding formula coming in, but we need to remind ourselves about what has gone on previously. Durham County Council has lost 40% of its budget in the past 10 years. That is £232 million. In the early days, when we had Eric Pickles as Secretary of State, this could all be done by cutting back on pot plants and getting rid of chief officers. Well, I am sorry, but I defy anybody who says that we can get 40% efficiencies out of an organisation and still deliver the same services, because we clearly cannot.

What we have had today is the Secretary of State saying that we will have a fairer funding settlement that respects need. That is not what the Government have been doing over the past 10 years. On every indication, the funding formula is seeing money being moved from areas of deprivation to areas of affluence. The National Audit Office has identified that. While Durham County Council has taken huge cuts, places such as Surrey and Wokingham have had increases in their core spending budget. We get to a ridiculous situation now where, if we look at 2019-20, core spending per dwelling for Durham is £1,727, whereas for Surrey it is £2,004. People might ask what difference it makes. It comes back to what we have heard for the past 10 years, which is not only that austerity is needed, but that, somehow, everywhere in the country is the same in terms of delivering services—whether in Surrey, in an inner-city metropolitan area or in County Durham. The two main drivers that are swallowing up most of the budget of counties such as Durham are adult social care and looked-after children.

[Matt Western (Warwick and Leamington) (Lab)]

My right hon. Friend is being very generous. He is making a terrific speech as usual. Does he agree that this issue, as he is describing it, is actually compounded by the deceit that, as part of the devolution of power and fiscal responsibility, these authorities would be able to retain more business rates, but the reality is that the Government do not want increases in business rates, and neither do businesses, because they cannot afford them. The reality is that those authorities will not be given those moneys in any event.

[Mr Jones]

I will come on to business rates in a minute. I will give an explanation as to why, for example, Durham County Council is doing what it is doing with its headquarters. I would argue that it is a response to Government policy.

If we look at adult social care in Durham, we see that there are 3,295 people in home care, 3,151 in residential care, 736 in supported living schemes, and another 763 receiving direct payments. The difference between Durham and places such as Surrey is that we have a higher proportion of people requiring council support. As my hon. Friend the Member for Kingston upon Hull West and Hessle (Emma Hardy) identified, we do not have a large package of support. We actually self-finance, and that makes a big difference in terms of the pressures on local councils.

The same is true if we consider looked-after children not just in Durham, but across the north-east. In Durham, we have 900 children in local authority care. As was said earlier, the number of looked-after children has increased by 20% in the last decade, but in the north-east it increased by 72% in the same period. Two councils in the north-east, Hartlepool Borough Council and Middlesbrough Council, have more than twice the national average number, and five times more looked-after children than Wokingham Borough Council. The new funding formula has to take that need into account. The idea that everywhere is the same is complete and utter nonsense.

The bigger debate, which has not really been had, is about the Government’s direction of travel over the past 10 years, which has been to reduce the amount of central Government funding to local authorities and to push the burden on to the local council tax base. Again, County Durham is at a disadvantage. More than 50% of our properties are in band A, so an increase of 1% in Durham raises very little compared to such an increase in more affluent areas with large numbers of higher-band properties. That will have to be taken into consideration. For true levelling up, there will have to be a complete reversal of what has happened over the past 10 years. If we get to a situation in which what a local authority requires is raised locally, councils such as mine will be at a huge disadvantage, certainly given the increase in the number of looked-after children and individuals in care in the area.

Planning System: Gypsies and Travellers

Matt Western Excerpts

Wednesday 29th January 2020 Westminster Hall

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Luke Hall)]

Thank you, Sir George. It is a pleasure to serve under your chairmanship. I congratulate my hon. Friend the Member for Kettering (Mr Hollobone) on securing this thought-provoking debate. I will begin by touching on the comment by the hon. Member for Oldham West and Royton (Jim McMahon) about cross-party work. It is a hugely important point; it is crucial that we work on a cross-party basis and I am happy to meet him at any time to talk about these issues.

Fairness in the planning system is a matter that we take incredibly seriously. The issues raised today are not all new challenges; I have heard them raised by colleagues in past debates, and they affect my own constituency. Let me reassure colleagues that the Government are working to implement the measures we have promised in order to address unauthorised development—an issue we have talked about a lot. We have consulted on powers for dealing with unauthorised development and encampments. Some issues raised in the debate have reflected the consultation responses: concerns over fairness in the planning system; unauthorised encampments and intentional unauthorised development, particularly in the green belt; issues with planning enforcement; and, of course, the outcomes for travelling communities that we have heard so much about.

Under national planning law, national planning policies and local planning policies to guard against unacceptable development apply equally to all applicants who wish to develop. It is right to recognise that certain groups have protections in law, such as disabled people, the elderly and ethnic groups, including Travellers. Planners may also take into account the specific needs of individual groups when making decisions on development, which will be taken on their own merits. As is the case for all planning applications, planning applications for Traveller sites must be determined in accordance with the local authority’s statutory development plan unless material considerations indicate otherwise.

In 2015, we amended the definition of Gypsies and Travellers for planning purposes to remove those who have ceased to travel permanently. That was to ensure fairness and transparency in the planning system for the whole community, and to avoid any misunderstanding. Those who have ceased travelling permanently will have their needs assessed, as with any valued group in our society, and a decision will be taken on whether a site can be made available.

We have taken into consideration the responses that we received to our consultation on unauthorised development and encampments. Those responses made it clear that, in certain areas, unauthorised encampments are causing significant disruption for local residents. We have made it clear that that must be addressed. In our response, we committed to introducing a package of measures to address those issues, including proposals for stronger police powers to respond to unauthorised encampments, practical and financial support for local authorities to deal with unauthorised development, support for Traveller site provision, and support for the travelling community to improve their life chances. My Department has been working closely with the Home Office on this issue to ensure that we take a rounded approach that provides positive results for both the settled and travelling communities.

Let me address some of the concerns that were raised about intentional unauthorised development, and in particular how that is taken into account when planning permission is sought retrospectively. Planning permission should not be granted retrospectively simply because the development has already taken place. We propose to strengthen the power of local authorities to stop that happening, and we will consult shortly on a range of options for strengthening our policy on intentional unauthorised development so local authorities have stronger tools and levers to address the effects of that type of development.

[Matt Western (Warwick and Leamington) (Lab)]

I am sorry that I was not able to join the debate earlier. Does the Minister accept that this issue costs many local authorities, such as Warwick District Council, as well as businesses and the community, huge sums? Surely, a good use of funds would be to support councils to use compulsory purchase powers to buy land to set up permanent sites.

[Luke Hall]

I thank the hon. Gentleman for raising that point and sharing his local authority’s experience. I am happy to touch on that shortly, but let me turn first to the green belt, which was raised by a number of Members, including my hon. Friends the Members for Mole Valley (Sir Paul Beresford) and for Rugby (Mark Pawsey). Our commitment to protecting the green belt is as strong as it has ever been. Changes to the green belt should happen only in exceptional circumstances, and should be fully evidenced and justified through plan making. The policy is clear that once green belts are defined, local authorities should plan positively to enhance their beneficial use, such as by looking for improvements to access and environmental quality.

We have provided £1.79 million of funding across 37 local authorities to improve their capacity to respond to enforcement issues facing their area, and we are working with the Royal Town Planning Institute to overhaul the national enforcement handbook to provide the latest best practice and expertise on shutting down illegal building while ensuring that developers obtain full planning permission before a shovel hits the ground.

Building Safety

Matt Western Excerpts

Monday 20th January 2020 Commons Chamber

[Robert Jenrick]

I have already said that we are very happy to engage with colleagues in the Scottish Government, and I will make sure that that happens. The funding that the Health and Safety Executive requires will be available. We are still having those conversations with it, so I do not want to wrongly advise the hon. Lady, but I say again that we will ensure that it has the resources it requires to take forward this incredibly important work.

[Matt Western (Warwick and Leamington) (Lab)]

The Secretary of State says that he is minded to review the minimum height of new buildings for the fitting of sprinkler systems. In November 2007, Warwickshire Fire and Rescue Service lost four firefighters in a terrible blaze. Why will the Government simply not legislate for the fitting of sprinklers in all new builds and retrospectively?

[Robert Jenrick]

With respect to the hon. Gentleman, we have to follow procedures so we have consulted, which is the way we proceed on such matters. The consultation is now complete, we have reviewed the evidence and we will be publishing it shortly. However, I have said today that, subject to our exact response in the coming weeks, I am minded to make that move, and that will be done through regulation so it can happen swiftly.

Oral Answers to Questions

Matt Western Excerpts

Monday 13th January 2020 Commons Chamber

[The Minister for the Northern Powerhouse and Local Growth (Jake Berry)]

I welcome my hon. Friend to her place. I know that she, together with the Centre for Social Justice, has been active in this area for many years, which is why I am delighted to tell her that we have a £3.6 billion towns fund, which will support an initial 100 town deals across England, together with the £1 billion future high streets fund. We are working with local government up and down this land to ensure we fight for the future health of our high streets.

[Matt Western (Warwick and Leamington) (Lab)]

T5. Last week it was reported that the new Minister for Housing was lobbying the Secretary of State for more funding for council house investment as opposed to failed ownership schemes. Does the Secretary of State agree with the case she was making?

[Robert Jenrick]

As I have already said in previous answers, the Government want to build more homes of all types. If we are to tackle the housing crisis, we will need to spend more on infrastructure, which we are doing; further reform the planning system, which I intend to do; and invest more in affordable housing, and we have already invested £9 billion through our affordable housing programme and made a manifesto commitment to introduce another one that is even larger. But do I believe that people in this country fundamentally want to own a home of their own? Yes, I do, and we will do all we can to help more people on the housing ladder.

Leasehold and Commonhold Reform

Matt Western Excerpts

Wednesday 2nd October 2019 Westminster Hall

[Ms McVey]

The hon. Gentleman makes a fair point; I will come to it later in my speech. No doubt, he realises that with leaseholds dating back a long time, there are legalities to unpick, but we are working on understanding how to do that.

I am pleased to see that the leasehold house ban has had an immediate effect on the market. In 2017, when we first made the announcement, 10% of new-build houses in England were sold as leasehold; today, that figure is down to 2%, which is significant progress, but we obviously want to make more. We will still legislate to ensure that, in future, apart from in exceptional circumstances, all new houses will be sold on a freehold basis.

Developers will no longer be able to use leases on houses for financial gain—a practice that has become the norm in some parts of the country, as we have heard again today. That will make certain that the right tenure is used on the right properties, which will make it fairer for all. The reforms will remove the incentives for developers and freeholders to use leaseholds to make unjustified profits at the expense of leaseholders.

[Matt Western (Warwick and Leamington) (Lab)]

To echo the point made by my right hon. Friend the Member for Alyn and Deeside (Mark Tami) about going back, do the Government see that as a responsibility and could they find a way to intervene? We have identical houses on the same estate: they were sold in the first phase as leasehold but are being sold in the second phase as freehold at the same price, yet the owners of the first-phase houses have been told that they must pay £3,750 to Persimmon, Redrow or whoever to convert to freehold. There is no market and there is no choice in that—is it not wrong?

[Ms McVey]

Everybody here can agree that is wrong, but it is about the steps that we will have to take to get the situation under control. We are looking at help for existing leaseholders, many of whom face, as the hon. Gentleman says, onerous fees and charges, including the doubling of ground rent in some cases. The Housing, Communities and Local Government Committee and many existing leaseholders want the Government to legislate to amend those. We are deeply concerned about the difficulties that people are having with those charges, but we clearly have to look at how to unpick those contracts, which are set in law.

[Ms McVey]

We are indeed looking at a much simpler model that people can understand and make sense of, and at how to make it easier, smoother and quicker to do.

We have also made sure that there is a voluntary way for the sector to come together to solve the problems of its own creation. The industry pledge is an important first step. It has been signed by more than 60 leading developers, freeholders and managing agents. We will work with them and keep a vigilant eye on how it is working. Through that pledge, freeholders have committed to identifying any lease that doubles more frequently than every 20 years and contacting the relevant leaseholders to offer to amend their lease where necessary. I acknowledge those developers that have signed the pledge not to insert such clauses into future leases and welcome that. The pledge is an important first step, but we need to keep our eye on it. We will continue to monitor how effective it is in supporting leaseholders and we will take further action where necessary.

[Matt Western]

The Minister is being generous in giving way. It is interesting to hear that there is a voluntary assembly of the various housebuilders and developers. Surely, however, there is an opportunity for a paid-for body, funded by all those builders, to come together and arbitrate on behalf of the leaseholders and come to a sensible cost for them to pay for the conversion to freehold. Would not an independent body funded by the builders be a better solution?

[Ms McVey]

All the ideas that have come forward are being looked at to figure out what the way forward will be. That may well be something that ends up happening. At the moment, I cannot say, but we will look at every idea that comes forward.

The Government are looking to standardise the enfranchisement process and have asked the Law Commission to review the current arrangements. That is to support existing leaseholders and, as mentioned, it includes making buying a freehold or extending a lease easier, quicker and as cost-effective as possible. The Law Commission is analysing responses to its consultation paper on leasehold enfranchisement reform, “Leasehold home ownership: buying your freehold or extending your lease”. This autumn, it will report back to Government on the options for reducing the price of that, and on all other aspects of the enfranchisement regime early next year. I look forward to receiving its recommendations.

Building Safety

Matt Western Excerpts

Thursday 5th September 2019 Commons Chamber

[Robert Jenrick]

The hon. Lady can see that we are doing a root-and-branch reform of the building safety system, both in the interim and in the long term with the building safety Bill that will come forward as soon as possible. I am working very closely with local authorities, and today of course I have announced £14 million of additional funding that will help to support them to use their existing powers robustly.

[Matt Western (Warwick and Leamington) (Lab)]

It is almost 12 years since the tragedy in Atherstone on Stour, in Warwickshire, which resulted in the deaths of four firefighters. Sprinklers were subsequently introduced into legislation. Can the Secretary of State not be more ambitious and ensure that sprinklers are retrofitted to all tower blocks and also insist that they be introduced into schools, so that we do not lose schools, as we did in Scotland the other week?

[Robert Jenrick]

As I think I said earlier, we will always be guided by the safety of residents, but we must be led by the evidence, and the consultation I am launching today will do exactly that. We will consider the appropriate threshold and whether measures need to be applied to other high-risk buildings of different types.

British House Building Industry

Matt Western Excerpts

Thursday 5th September 2019 Commons Chamber

[Siobhain McDonagh]

I certainly agree with the hon. Gentleman in part. I have had the honour of meeting Mr Pidgley and I give him credit for his career and his actions. His profits do not come from Help to Buy, but, even so, it does seem like a very unequal company. I have no problem with people earning well at the top, but the people at the bottom should not earn badly.

[Matt Western (Warwick and Leamington) (Lab)]

I congratulate my hon. Friend on securing this debate and making an excellent speech. On her last point, as far as I understand it, Berkeley constructed no affordable housing last year, and for Barratt Homes, Persimmon and the others in the top four, the figures are around 18% to 20%. It is a complete scam. The amount of money they are taking out at the top, and not just for executive pay or shareholder pay—I have no problems with shareholders receiving dividends and so on—is at the expense of much-needed social and affordable housing. The whole viability element of the planning system is a complete scam and should be done away with.

[Siobhain McDonagh]

I absolutely agree with my hon. Friend, and I know that he works really hard on that subject. Just like the issues about the whole planning system, that could be the topic of another debate, to which I am sure we would both want to contribute.

The median pay for FTSE 100 house building CEOs is 228 times that of the typical UK construction worker.

--- Later in debate ---

[Mr Richard Bacon (South Norfolk) (Con)]

That is very helpful, Madam Deputy Speaker.

May I start by congratulating the hon. Member for Mitcham and Morden (Siobhain McDonagh) very sincerely? I realised how strange times are in this particular area of housing debate when I attended a lunch at the Institute of Economic Affairs, where the hon. Lady was the guest speaker. I realised that it is the case not so much that there is political cross-dressing going on, but that many of us are searching for solutions outside the traditional parameters; and that is because, as the title of the White Paper from January 2017 said, we have a broken housing market. We might have some differences about the causes of the situation she accurately describes and about the best prescriptions for solving it, but it is absolutely clear that supply does not rise to meet demand. She used the word “market” in her last couple of sentences, which rather implies that we have a market for housing, but we have no such thing; we have a tightly controlled oligopoly, and actually supply does not rise to meet demand, because most suppliers do not wish to damage their own profit margins by oversupplying the market so that prices fall. We would not expect that in any other area of business and we should not expect it in housing.

Fundamentally, we need to change the model. If we have a broken housing market, we need to create a different ecosystem, and one of the fundamental things we need to do is increase choice for consumers. It is by far the single biggest thing people spend money on —whether renting or buying, it is the thing that people spend most of their monthly income on—but it is the thing over which they have the least choice. In any ecosystem in which the consumer had any say, it would be the thing over which they had the most choice.

As well as increasing choice, we have to lower barriers to entry, and that is where I want to bring in my favourite subject, mentioned by my hon. Friend the Member for Dartford (Gareth Johnson), namely self-build and custom house building.

[Matt Western]

On choice, I totally agree with the hon. Gentleman’s point. One of the critical things, in addition to self-build, is the reintroduction of all the small and medium-sized enterprise builders we lost after 2007-08. Apparently, a quarter of all houses built are built by SMEs, whereas it used to be two thirds.

[Mr Bacon]

In 1988, it was indeed two thirds. If we increase the regulation and make it more difficult to get hold of land, it is the SMEs that will go, because only the big firms with the big balance sheets can afford it. It is a very risky enterprise, and actually local planning authorities prefer dealing with a small number of large companies because it is easier for them. That is one of the other things we have to change.

I am accused of wanting everyone to learn how to be a builder and build their own house. It has nothing to do with doing it yourself. It is very important to stress that. It is about self-commissioning and giving the customer more power. I will be briefing the Minister next week on the terms of the Self-build and Custom Housebuilding Act 2015, which commenced three years ago in April 2016, and the way it was augmented successfully by the Housing and Planning Act 2016, so that now the more people who are on the local register, the greater the legal obligation on a council to provide suitable planning permissions.

The point about having individuals and associations of individuals under the terms of the legislation is that it could apply to anybody. It could be used by school governors wishing to use the provision of a serviced plot of land as a recruitment and retention tool; by local social services directors trying to recruit social work managers in parts of the country where it is difficult to find the right calibre of social worker; by NHS trusts trying to accommodate staff, whether young junior doctors, paramedics or ambulance staff; by local Army commanders trying to retain that very expensively trained staff sergeant with 20 years’ experience; by the Royal British Legion and other veterans groups trying to accommodate veterans; by probationers and ex-offenders trying to make sure that ex-offenders coming out of prison have accommodation that is not the drug dealer’s sofa; and by the homeless themselves—I have seen just outside Berlin, in Potsdam, homeless single mums building their own accommodation for an affordable rent.

That brings me to my next point: it has nothing to do with tenure. One can use self-build and custom house building both for private ownership and for all kinds of affordable accommodation models, including mutual housing co-operatives and various other types of social landlords.

I am keen to keep my remarks brief, but I want to say a few things to the Minister about what the Right to Build Task Force, which I have been involved with for some years, is now looking for. We had £350,000 of funding from the Nationwide Building Society, and with that we can evidence an additional 6,000 to 9,000 houses added to the pipeline in the last three years. If we can do that with £350,000, think what we could do with some serious money. I would like the Department to take on the funding for that, but also as part of a help-to-build team installed within Homes England with the task of facilitating the delivery of service plots, buying land and working with local authorities and other public sector partners on public sector land for a range of client groups, especially the young and those who have been most marginalised. That team should also reach out to anybody who wants to get a service plot so that we reach a point where someone can go to the plot shop in the local town hall in their home town and find a plot of land as easily as people can in the Netherlands, where I have seen it done.

We have to put help to build on a level playing field with Help to Buy. The Government are currently planning to spend £22 billion on Help to Buy, subsidising demand, when we should really be subsidising supply. If one wants more of something, then subsidise it and it will happen. I know from many people I have spoken to, including Treasury Ministers, that there is a desire to do something about the growing cost of Help to Buy. The obvious thing to do is to wean people off Help to Buy—a subsidy for demand—and wean them on to a subsidy for supply, thus increasing supply.

We have to remove the regulations that currently allow local authorities to charge people to be on the register each year. Most do not, but Camden and Islington councils charge £350, and people do not get any guarantee of a plot for that. That should be revoked. I said that to Gavin Barwell when the regulations were introduced. I was not put on the Committee for some reason, even though it was my own private Member’s Bill that became the Act, but I went along anyway and spoke. He said on the record—I can show this to the Minister—that if it proved to be a problem, he would take a look at it. Although he is no longer the Minister, the Government were committed to looking at it. I can tell the Minister that it has become an issue and we should now revoke these regulations. The charge is supposed to recover the cost of keeping a register, but that is really very small—it can be done in an exercise book kept in a drawer or on a spreadsheet.

We need to introduce a series of specific planning reforms, particularly allowing for exception sites where councils are not fulfilling their legal obligations. We need to make it clear that the national planning policy framework has a presumption in favour of sustainable development in circumstances where councils fail to meet their duties under the legislation, irrespective of whether there is a five-year land supply, in terms of providing service plots. We need to introduce changes to the planning system that provide greater predictability to reduce the planning risk—for example, through the compulsory use of form-based codes or through local development orders. We need to take forward the proposals in the White Paper to facilitate land pooling, which has worked very successfully in Germany and elsewhere on the continent.

We do have a broken system, and doing more of the same will not produce a different result. We have to think differently and do differently. I encourage the Minister to take that responsibility seriously.

Ministry of Housing, Communities and Local Government

Matt Western Excerpts

1st reading: House of Commons
Tuesday 2nd July 2019 Commons Chamber

[Matt Western (Warwick and Leamington) (Lab)]

It is a pleasure to follow the hon. Member for Stoke-on-Trent South (Jack Brereton). I appreciate some of the points that he made, particularly on social housing and on how Stoke is taking on the same challenges that face so many of us.

I thank the hon. Member for Oxford West and Abingdon (Layla Moran), who is currently not in her place, for securing such an important debate. I am obviously delighted to support her as I, too, put in to speak in the debate.

Clearly, local government faces huge challenges. As my hon. Friend the Member for Sheffield South East (Mr Betts) said, the cuts faced by MHCLG have been far greater than those faced by any other Department. It is our local authorities that have borne the brunt of austerity as, of course, have our communities with the cuts to so many of their services—whether it be the hostels provided for those coming out of prison or the Army or those who are victims of domestic abuse. Certainly, we have seen significant cuts in Warwickshire. We have seen cuts to children’s services; closure of children’s centres; cuts to waste and recycling; cuts to fire and rescue services; cuts to our libraries—and the list goes on.

I want to concentrate the rest of my remarks on social housing. As chair of the Parliamentary Campaign for Council Housing, I have been pressing for more social rented housing since I arrived in Parliament. It is well understood that we are facing a housing emergency: 277,000 people are homeless; 1.1 million households are on waiting lists; and young families spend three times more on housing costs than they did 50 years ago. Just 6,000 social rented homes were built last year. Warwick District Council, which more or less overlaps my constituency, has built just eight social rented properties in the past four years, despite the fact that 2,000 people were on the waiting list.

I have been making my case ever since I arrived in this place, and I regard housing as the No. 1 priority for all of us in this House. We must fix this housing crisis. Shelter reports that 3.1 million homes need to be built in the next 20 years to meet the demand of those at the sharp end of housing need, particularly the younger trapped renters and the older renters, too. Back in the 1950s, in response to Churchill’s challenge, Macmillan, as Housing Minister, built 200,000 council homes. Meeting the housing need will happen only with significant investment in social rented council housing.

It is social housing that is desperately needed. Since 1980, house building in this country has been distorted by various policies, which have resulted in an average of just 25,000 social homes being built a year, compared with 125,000 during the post-war period. That is a loss of 100,000 units per year—4 million in total. The question that I want to put to the Minister is simple: how best can we use that £8.5 billion allocated to housing and planning? That is a significant sum and accounts for 80% of the total MHCLG budget.

This year, the Ministry of Housing, Communities and Local Government estimates that it will spend £3.9 billion on affordable homes—although that is often a misnomer. As well as home ownership options such as part-buy, there will also be social rented housing. To put this into context, back in 1953, in one year alone, the then Conservative Government invested £11.35 billion at today’s prices. Clearly, we are not doing enough. From speaking to Members across the House, I have learned that there is widespread support for increasing the budget. Where we differ is the proportion that should be spent on social housing, and there is real clear blue water between us on how that should be funded.

This call for a massive increase in social rented housing is echoed by Shelter. In its report produced by the Social Housing Commission, it concluded that there was a need for 3.1 million homes over a 20-year period, equating to 155,000 homes a year, of which I believe 100,000 at least should be council houses. I proposed that to the House on 13 June, and it was supported. This number is not pie in the sky; it was supported by my right hon. Friend the Member for Doncaster North (Edward Miliband) and, indeed, by Baroness Warsi. The only way councils will hit these kinds of numbers is through grant funding direct to councils, ring-fenced for building social rented housing. London Economics estimates that £10.7 billion is needed per year—less in real terms than the figure that was being spent in 1953.

It would be easy to think that the lifting of the local authority borrowing cap will be sufficient to provide the funding needed, but it will not. Don’t get me wrong—the lifting of the cap is very welcome, although long overdue. However, it is estimated to result in only £3.4 billion of investment in building council homes over the next four years. What is fundamentally wrong with the provision of housing is that too much money is being spent on the wrong schemes. The Help to Buy scheme falls within the remit of MHCLG. In my view, this scheme is totally the wrong priority and is simply being used to maintain inflated house prices and the bloated profits of house builders and developers.

This year, the Help to Buy scheme will once more account for the largest share of housing spend at £4.1 billion. The National Audit Office reports that two thirds of this—£2.7 billion—is in effect being used to subsidise homebuyers who could have bought a home without it, and one in 25 of those homebuyers had household incomes of over £100,000. Surely it would be better to use the £4.1 billion to build 40,000 social rented homes instead. Beyond MHCLG, there is of course the massive £21 billion being used on housing benefit annually. Again, surely this budget would be better utilised building social rented housing and realising those assets, rather than fuelling the private rental sector at the taxpayers’ expense.

[Mr Betts]

I have quite a lot of sympathy with my hon. Friend’s point about the Help to Buy scheme, particularly with regard to the NAO report. Does he agree that, whatever different views there might be, the Government should at least do an evaluation of the Help to Buy scheme before they embark on a further phase of it?

[Matt Western]

My hon. Friend always makes an important point, and his knowledge of the sector is unsurpassed. He is absolutely right that we should suspend the scheme and think about how the budget should be used urgently to kick-start a social rented programme.

I say all this because of the pressing and urgent crisis of homelessness and rough sleeping. My hon. Friend the Member for York Central (Rachael Maskell) gave us an example of what this crisis looks like across our communities, as our housing markets are distorted by developers. Lord Porter put it very well when he said that a good home provides a good chance of good health, good education and good lives. The reality is that, without good homes, we are seeing a huge increase in social and health-related issues, all of which add to the already great burdens faced by our local services and thus our local authorities.

Local government faces huge challenges indeed: the rising costs and numbers related to children’s services; the crisis that is the unsustainable pressure brought by adult social care; the closure of hostels; the cuts to welfare services; and the closure of children’s centres, libraries and fire stations. But I would assert that the desperate need for social rented housing is at the core of so many of the problems we face. To that end, I urge the Minister to reconsider the allocation of budgets, to slash the support for and suspend Help to Buy, to lay claim to the housing benefit budget and to use that money to kick-start the industrial-scale social housing that our society desperately needs.

Social Housing

Matt Western Excerpts

Thursday 13th June 2019 Commons Chamber

[Matt Western (Warwick and Leamington) (Lab)]

I beg to move,

That this House recognises that there is a housing crisis with too few genuinely affordable homes to rent and buy; further recognises that the number of new social rented homes built in recent years has been too low; notes that the Government has set a target to build 300,000 homes a year, which is unlikely to be achieved without building more social homes; further notes that Shelter’s recent report, A Vision for Social Housing, concluded that 3.1 million new social rented homes need to be built over the next 20 years; and calls on the Government to adopt a target of building 155,000 social rented homes, including at least 100,000 council homes, each year from 2022.

It is an honour to rise to discuss one of the most critical issues facing us, and I thank the Backbench Committee for affording me the opportunity to do this today. Sadly, looking round the Chamber, I see surprisingly few people here to share the debate. I thank those who are here, but I am surprised at how few there are, given the very real and pressing crisis that we face in this country. It is the foremost of all the crises that we face.

The housing market is fundamentally broken, and it is the social housing sector that has been the casualty. As a result, homelessness is up 50% and rough sleeping has risen 160% since 2010. Elsewhere, hundreds of thousands of people are living in homes that are not fit for human habitation, yet this is the fifth wealthiest country on the planet. Despite that apparent national wealth, we are impoverished by crushing personal debt, large mortgages, high private sector rents, student loans, significant unsecured debt as great as it was in 2007 and stagnant wages that have failed to keep up with the cost of living. It is no wonder that the UN rapporteur has observed us as a country in crisis where the social fabric is not just frayed at the edges but badly torn.

This week marks the second anniversary of the terrible tragedy of the Grenfell Tower fire, and we are reminded of how recent and current policy on social housing has failed and continues to fail our society, so how is it that the market and the policies that govern that market are not delivering the much-needed housing? The social housing report commissioned by Shelter in January estimates that the UK needs to build 155,000 social homes a year for the next couple of decades. That is the scale of the crisis. If good housing is fundamental to the quality of our lives, why is it not the basis for everything in our society? Lord Porter put it succinctly when he said that, with a housing problem,

“you haven’t just got a housing problem, you’ve got an education problem, you’ve got a health problem, anti-social behaviour problem, whatever.”

It is clear that we need to reset the market and restore the principle that a decent home is a right owed to all, not a privilege for the few.

[Darren Jones (Bristol North West) (Lab)]

Does my hon. Friend agree that the market has failed in constituencies such as mine, where it is getting more and more expensive to either rent or buy, and that we therefore need to build council houses to provide security for people and their families, including accessible housing, given that more and more people with disabilities cannot find homes?

--- Later in debate ---

[Matt Western]

My hon. Friend makes an incredibly important point, and I will come on to it. I am particularly familiar with his constituency, and I know that many areas of our country have seen high house price inflation, which has priced out young people, a lot of whom would ordinarily want to stay in those communities. This needs to be urgently addressed through social housing.

Twelve months ago, I was fortunate enough to meet a former soldier at one of my Saturday surgeries. He was back in his home town of Warwick, having been discharged from the Army after 10 years’ service. A veteran of several tours, soldier Y found himself searching desperately for a job and a home, and he was not in a good place. He was really struggling. He had he been diagnosed with, and was clearly suffering from, post-traumatic stress disorder. Soldier Y was sofa-surfing. Until relatively recently, it would have been possible for him to access one of the hostels provided by Warwickshire County Council, but the cuts since 2013 have resulted in a huge drop in capacity and places such as Beauchamp House in Warwick are no longer available. I have mentioned soldier Y, but I could have spoken about any of the dozens of people I have met since my election in 2017, all of them desperate for help to resolve their own housing situations.

[Matt Rodda (Reading East) (Lab)]

I would like to thank my hon. Friend for securing this debate, along with my hon. Friend the Member for Stroud (Dr Drew). I agree with him wholeheartedly about the need for a major council house building programme. The issue I would like to raise is the need for much greater funding for local authorities to build council houses. In my area of Reading, there has been an ambitious programme to build council houses within the limited scope of the funding that is available, but more funding is clearly needed. We have an excess of brownfield land in Reading, a former light industrial town. We have enough brownfield land to build all the houses that are needed until 2036, and I understand from colleagues that many other boroughs, towns and cities around the country face a similar situation in which former industrial land is available but there is no funding to enable the local authorities to build. Does my hon. Friend agree that that should be a priority for this Government?

[Matt Western]

My hon. Friend makes another important point. This is absolutely about the cost of providing housing and land and about how authorities are facilitated to do that. This is the most pressing issue of our time, as I have said, and Government policy should be to help our local authorities. Indeed, at one of the meetings of the parliamentary campaign for council housing, which I co-chair with my hon. Friend the Member for Stroud, Lord Porter made it clear that, in his view,

“all the bad things in our society stem from bad housing, and the best way to fix any of those problems is to make sure as a fundamental that everybody’s got safe, secure, decent housing.”

I could not agree with him more.

We only have to walk down streets such as the Parade in Leamington Spa—and, I am sure, any of the high streets across the country—to see some of the casualties of this crisis: rough sleepers curled up in our doorways or sitting at street corners crying out for help, asking for loose change, desperately trying to create personal order out of social disorder. Inevitably, there will be an ex-forces person among them, but no matter—they are all one community now. Surely civvy street was not meant to be this uncivilised or, for an ex-soldier, this ungrateful.

To understand how we got here and where we need to go, it is worth briefly considering the past and how times have changed. Had soldier Y been lucky enough to have been returning from the first world war rather than from Afghanistan 100 years on, he would have been greeted by the then Prime Minister’s promise of “homes fit for heroes”. Lloyd George recognised the importance of social provision and knew that because house building would be difficult it was only through subsidies that local authorities would be able to afford to deliver them. His progressive social and local authority approach kick-started the sector and resulted not just in a growth of housing supply but in improved standards in all new homes. It was actually following world war two that the council house really arrived. Enlightened administrators strove to deliver them, and none more so than the Attlee Government, which, despite the ravages of war and the shortage of materials, managed to build more than 1 million new homes to replace many of those that had been destroyed.

[Stephanie Peacock (Barnsley East) (Lab)]

On that point, statistics show that the construction of social housing has fallen 90% since 2010? Under the right-to-buy scheme, houses are not replaced on a one-for-one basis, which has led to a drastic fall in provision. Does my hon. Friend agree that we need to look at how we can tackle these issues?

[Matt Western]

My hon. Friend makes an incredibly important point. We have seen an absolute crash in the supply of social homes, and I understand that only one is being built for every five we are losing. Those are the tragic numbers that underline this, and they explain why we are seeing so many social crises in our communities.

[Sarah Newton (Truro and Falmouth) (Con)]

I should like to congratulate the hon. Gentleman on securing this really important debate. Although there are not many colleagues on the Conservative Benches this afternoon, there is huge support for social housing on this side of the House. He made a point about numbers. Cornwall is not led by a Conservative council, so I am not making a party political point here. When I came to the House in 2010, Cornwall was delivering around 700 social homes each year, but in this past year, according to the Library, the number was 1,437. That is a doubling of the number of social homes available to people in Cornwall, which has a very challenging housing market because it is such a popular place for people to have second homes. Where communities and local authorities work together and innovate, it is possible to use the Government’s policies to meet local housing need.

[Matt Western]

I thank the hon. Lady for her intervention and I hope that she will make a speech later. Her point is valid and I am sure there are huge pressures in her community and other parts of Cornwall. I have discussed this very issue with many of her colleagues on the Government Benches, and I know that the right hon. Member for West Dorset (Sir Oliver Letwin) and Members from Somerset reflect similar views. There is a lot of hardship in our rural communities related to access to and requirement for social housing. What is being done in her constituency is admirable, but it comes down to the ability to borrow and what can be done. She may be referring to provision by housing associations, but I am particularly keen that we should see a rapid ramp up in council housing provision if we are ever to achieve the 300,000-plus figures that everyone mentions.

As I was saying, the achievements of the post-war period were extraordinary, and under the Attlee Government an astonishing 80% of houses built were council houses. Materials were in short supply, but they achieved it. The boom continued under the incoming Conservative Government. In response to Churchill’s challenge, Macmillan who had been appointed Minister for Housing, delivered more than 750,000 council homes in just one year: things had never been so good.

The giddy heights of those years and new social housing developments ended abruptly at the end of the 1970s with the radical policy changes of the incoming Conservative Government, and one of their first moves was to cut public expenditure for housing. Giving council tenants the opportunity to buy the homes they were living in, at a generous discount, was one of the defining policies of the Thatcher era and more than 2 million council tenants took advantage of it.

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

Does my hon. Friend acknowledge that one of the first acts of the incoming Conservative Government was to shift housing subsidy away from bricks and mortar and into housing benefit? It was a conscious policy decision and the consequence was not a shortage of money, but the spending of £22 billion a year on personal subsidy instead. As lower-income people are increasingly trapped in the expensive private rented sector, that is set to explode still further. The collapse in social house building is an extremely false economy.

[Matt Western]

I thank my hon. Friend who is very learned on this topic, and I bow to her knowledge. She is right: what we have seen is a transfer of wealth from the public to the private sector. A big chunk of that budget has gone into private pockets, as opposed to into public assets. Changing that is the ambition behind my motion.

That period was a watershed: it developed our unhealthy obsession with housing and a dependence on the fortunes of the private sector to satisfy it. Rising house prices were all the talk in the pub and they became the nation’s conversation, fuelled by the press and an insatiable media seeking feel-good stories and helped along by the Government of the day. House prices seemed an impossibly good driver of the economy. Those who had capital and a good wage could buy a place and, through the sell-off of council houses, those fortunate enough to have access to money could bag a bargain. What was not to like?

Perhaps most striking was the impact on young people who rapidly realised the possibility of ownership was drifting away from them: data shows that at the age of 27, those born in the late 1980s had a home ownership rate of 25%, compared with 33% for those born five years earlier in the decade and 43% for those born 10 years earlier in the late 1970s. With hindsight—perhaps for some of us at the time—the excesses of the heady 1980s, 1990s and 2000s, when access to finance was unlimited and we saw the mass sell-off of council housing, were akin to financial ecstasy, but it would only be a matter of time before the market would go cold turkey. Of course it did, with the credit crunch and the global financial crash of 2007-08. At the core of that financial disaster was over-leveraged debt and bad property debt. Lending had reached unsustainable levels.

We reach the present day, and housing has become simply too expensive—ridiculously so against relatively flat incomes. The average house price in my constituency is £285,000, 20% more than the average in England and Wales. Supply has been constrained for decades, but now the wrong housing is being built in the wrong places, and it is unsustainable. People are increasingly being driven out of the communities that they work in, such as in my constituency of Warwick and Leamington, and that threatens the local economy. Though average salaries are greater than the average for England and Wales, they are only 10% higher, meaning an absolute differential of 10% against the average house price. Put another way, the ratio of house price to wage is 9.2; for England and Wales it is 8.0.

Despite all that, the council has built just eight social homes in the past four years. Soldier Y is not just an individual: he is the victim of a systemic problem in our housing provision—market is no longer the right word. That is why we need to re-set the sector. Yes, the Government have set an ambition of building 300,000 homes, but they are falling way short with just 223,300 built last year, even with the numbers being distorted by the permitted development of office blocks that are often wholly unsuitable to long-term or family accommodation. While 47,000 new affordable homes were delivered in 2017-18, 57% were homes for affordable rent, 23% for shared ownership and just 14% for social rent. For many people, affordable rents are no longer affordable, given that in reality they can be set at up to 80% of market rates.

Most concerning is that the Government have no target for social rented housing. As I said earlier, Shelter’s commission on social housing estimates that 3.1 million homes need to be built in the next 20 years if we are to arrest this crisis. That is an average of 155,000 a year, which would cost only £10.7 billion per year. Just 6,500 homes were built last year, and at that rate only 130,000 would get built over the next 20 years, or just 4%.

We could afford to build those homes. According to Shelter’s report and data provided by the New Economics Foundation, we currently spend £21 billion on housing benefit annually, money that more often than not is going to private landlords. Instead, what we have seen is a massive increase in the private rental sector, insecure tenancies, fees scandals, rogue landlords and too little agency involvement in enforcement among local authorities.

What needs to be done? I want to see a radical reconstruction of our communities. In Tuesday’s debate, the Minister suggested that it is a complicated landscape, but I am afraid I have to disagree. We have made it complicated by yielding to market interests and failing to regulate in the interests of our people and our communities. In my view, we need to urgently reform planning, adopting a model similar to that in Germany; resurrect a regional spatial strategy, including for new towns and villages; reform compulsory purchase; scrap the nonsense that is viability, which is a scam exploited by corporate house builders; and ensure a 50% minimum of social housing on all greenfield developments and 80% on all brownfield sites in towns and cities.

We can address the funding though redirecting housing benefit to investment in the assets that come from building new homes. We should stop the sell-off of 50,000 social rented homes a year, and I urge an end to the right to buy. There are so many things we could do. I have talked about funding, and there is also the possibility of using pension funds, whether local authority pension funds or new ones, to support building homes. Birmingham and Greater Manchester are leading the way. On land, we could do so much with the public estate rather than selling it off to the highest bidder.

I am conscious of time and I know that many Opposition Members wish to speak. As I have said, we face a crisis and, to paraphrase Macmillan, the housing market has never been so broken. Homelessness is now 277,000 and 1.1 million are on housing waiting lists, while rough sleeping has risen 165% since 2010. The Government could, and should, deliver 3.1 million social homes over the next 20 years. It is an explicit target of 155,000 social rented homes a year and it is critical that we focus minds on delivering it. That is what my motion seeks to do. Without it, the housing crisis will only get worse.

--- Later in debate ---

[Matt Western]

May I start by thanking everyone across the House for their incredibly valuable contributions to what I would agree with the Minister was a constructive and illuminating debate. I particularly thank the hon. Member for Southend West (Sir David Amess) and my hon. Friend the Member for Stroud (Dr Drew) for supporting and sponsoring this debate today.

As we have heard, it is generally understood that housing is particularly important, but that social housing is even more so. We have heard from across the country just how expensive housing can be in so many of our towns and cities. We have heard about multiples of 20 against average income, such is the expense of property—certainly in Cambridge, London and elsewhere.

We have also heard just how popular social housing and council housing can be and about the massive loss of stock we have suffered in recent decades. My hon. Friends the Members for Ipswich (Sandy Martin) and for Hammersmith (Andy Slaughter) gave good examples of what can be done when local authorities have the foresight and the ambition to deliver good-quality social housing. We also heard illustrations from my hon. Friend the Member for Mitcham and Morden (Siobhain McDonagh), who described the reality for her constituents and the hardship that they face.

Elsewhere, my hon. Friend the Member for Ellesmere Port and Neston (Justin Madders) talked about the struggles that people still face incurring the bedroom tax and asked why that tax still had not been cancelled.

The hon. Member for Strangford (Jim Shannon) highlighted very well the reality for young people in particular and explained what a struggle it is for millennials to get on the housing ladder.

I also thank the hon. Member for Kilmarnock and Loudoun (Alan Brown), who highlighted the very positive reality north of the border and described what it had been possible to achieve in delivering housing as a result of being liberated from some of the constraints we have here. He also talked about the challenges and the threats from universal credit and of Help to Buy.

I thank the shadow Minister, my hon. Friend the Member for Croydon Central (Sarah Jones), for her excellent summary of the debate. I will not attempt to repeat that, but she rightly highlighted the reality of what has happened, as we find ourselves still reflecting on Grenfell two years on. She talked about all the mistakes that were made with Lakanal and described how people were indifferent and not listening. That case and those arguments have also been well set out in the campaign led by my hon. Friend the Member for Kensington (Emma Dent Coad). I thank the Minister for his summary and for his warm words, and I look forward to working with him in the future.

Question put and agreed to.

Resolved,

That this House recognises that there is a housing crisis with too few genuinely affordable homes to rent and buy; further recognises that the number of new social rented homes built in recent years has been too low; notes that the Government has set a target to build 300,000 homes a year, which is unlikely to be achieved without building more social homes; further notes that Shelter’s recent report, A Vision for Social Housing, concluded that 3.1 million new social rented homes need to be built over the next 20 years; and calls on the Government to adopt a target of building 155,000 social rented homes, including at least 100,000 council homes, each year from 2022.