Matthew Offord
Main Page: Matthew Offord (Conservative - Hendon)
Mr Matthew Offord (Hendon) (Con)
Today’s debate is very valuable and I congratulate the hon. Member for Islington North (Jeremy Corbyn) on securing it. I do not always agree with everything he says, but on this point there is a lot of common ground between his party, mine and that of my colleagues in the coalition Government.
Labour Members speak about housing as though it is an issue that affects only them and their constituents. We are demonstrating today that there is a housing problem across London that is experienced by all Members, particularly in their surgeries and postbags. People regularly come to see me about this in my surgery and I feel a fraud in many ways because they are concerned and upset about their housing or lack of housing and I know that we will not be able to do anything to help. I feel greatly sorry for them and we recommend that they go to the private sector in the knowledge that we have nothing in the public or social rented sectors.
I want to cover a few points that the Government are addressing as well as to speak about my experience. Some people seem to think that all London is completely the same, but it is not. We have diverse areas and different experiences, which is exemplified in the housing crisis across the city. It is a crisis; we have a problem. Many people are not only unable to afford their own homes but have a problem housing themselves in the type of quality accommodation we would expect all our families to live in.
That is why it is vital that the Government and local authorities continue to promote the development of attractive mixed-tenure communities in our local areas instead of the monolithic estates about which many of us have been concerned. We have seen not a rush but an agenda to knock those estates down, and they are crime-ridden in many parts of London. Promoting such a development is the only way we will help people into home ownership. At the very least we should change their tenancies so they are better suited to individual needs. That is how we will stop people being trapped in that vicious dependency cycle.
I shall not reel off a lot of statistics, but one thing that I am very keen on—I spoke about it in my maiden speech—is social aspiration. I do not believe that people who go into the social rented sector lack social aspiration, but I do think that they have it hammered out of them. In 2008-09, only 49% of tenants of working age in the social rented sector were in work, down from 71% in 1981. I have heard the comments about cardboard boxes under Blackfriars bridge, but they do not stack up with the statistics. In comparison, in that same year, 89% of home owners, and 75% of private renters, of working age were in work. About 60% of social rented households report that they are in receipt of housing benefit compared with just 20% in the private rented sector. I would not say that people in the social rented sector were failures, but I believe that they certainly end up feeling that they are at a disadvantage in comparison with other people who are perhaps attracted to, or able to afford, the private rented sector.
Mr Slaughter
I am just glancing through a report from Family Mosaic, a large housing association that is very good, on the whole. It states that
“setting rents at 80% of market rent would increase our clients’ requirement for housing benefit by 151%”.
What does the hon. Gentleman think of that policy?
Mr Offord
We should allow the social rented sector to help the people who really need that help. The hon. Gentleman asked the hon. Member for Carshalton and Wallington (Tom Brake) who should be thrown out of their homes, and it is quite clear that no demographic section of the community should be thrown out, whether that is the elderly or people with children. It should be done on a financial basis to people such as Lee Jasper and Bob Crow, whom I read about in the paper today and who earns £145,000. If we removed people such as him, we would open up the social rented market to the people who really need it. That is what I think of that policy.
The point I want to make, which helpfully illustrates that answer, is that social landlords are required by inflexible and centrally determined rules to grant lifetime tenancies in the vast majority of cases, and I presume that someone like Mr Crow would have that sort of tenancy. There is no account of how their individual and household circumstances have changed and they cannot be removed. I spoke to my office today and I have received a telephone call from a lady in my constituency who said that she urgently needs to move house as her husband has become disabled, but she is unable to do so because of the rigid rules and structures that I have just described. In shocking contrast, other people’s tenancies can be inherited by family members who might no longer be in need of the housing that they have been allocated. That is clearly not a system that helps to serve the people we represent.
Labour Members have spoken about the development proposals in their local areas and how they feel that the local authority alone should be allowed to develop. That has not been the experience in my constituency.
Mr Offord
I have given way to the hon. Gentleman once, so I am going to continue with my speech.
My experience has been very good. Large elements of the constituency certainly need development—I am thinking of the West Hendon estate and Perryfields, as well as areas of Burnt Oak and, significantly, the Grahame Park estate, of which some hon. Members might be aware. It was the site of the old RAF Hendon base and it is a location that has now changed to allow development from the private sector. That has been a great success and many of my friends live in that area, which is proving to be a real boon to the local economy.
I was pleased a couple of weeks ago to attend the first phase of Choices for Grahame Park, which is a separate phase of development in Colindale, with the mayor of Barnet, Councillor Anthony Finn. When that is completed, it will form a central part of the Colindale area action plan and will create a new community in my constituency, providing greater transport links on the tube, greater community health facilities and a radical rebuilding programme that will transform the estate, which has been a blight for many years. This will happen in the next 15 years and we expect to see about 3,000 new homes as part of this new heart of my constituency.
The regeneration of the area will also provide retail facilities and 25% of the existing homes are built in a traditional layout, instead of like the cardboard boxes and rabbit hutches that some hon. Members have described. In total, we will demolish 1,314 outdated and overused homes and replace them with 2,977 brand-new, purpose-built family homes that will revolutionise life in the Grahame Park area and in my constituency as a whole.
Angie Bray (Ealing Central and Acton) (Con)
Does my hon. Friend agree that too often the special circumstances in London seem to get missed out in policy making? For example, I think we all want to see more family-sized homes built in the affordable sector rather than the small boxes that typified the affordable houses built under the previous Mayor, Ken Livingstone. Many people got very agitated about that because London wants family-sized homes. Here is the problem: a couple of London housing associations came to me and said that they would like to build more family-sized homes but in order to be able to afford to do that under the current circumstances they will have to charge 80% of market value, which many of their tenants will find difficult to afford. Is it not very important that—
Madam Deputy Speaker (Dawn Primarolo)
Order. All afternoon, we have been drifting into longer and longer interventions. Interventions are supposed to be short, not an excuse for a speech, and the hon. Lady has now finished.
Mr Offord
I was enjoying my colleague’s contribution. She certainly has some relevant experience in her constituency, but I want to continue by talking about the current system’s inflexibility in providing social tenants with heavily subsidised rents for the duration of their time in the sector regardless of their changing needs and ability to pay. Perhaps, again, Mr Crow is one of those people.
Inflexible lifetime tenancies contribute to significant imbalances between the size of the households and the property that they live in. A one-size-fits-all model for rents and tenancies is not the best answer to the wide-ranging needs and circumstances of those who access the social rented sector.
I understand—I hope to hear from the Minister about this later—that the Government believe that we must make far better use of existing social housing, by ensuring that we target our support where it is needed most. Given the huge pressures on the public finances, we must ensure that we get more for the money that we invest in new social homes. My colleague’s point about investing in family homes is a serious and important one, particularly for people in my constituency.
I hope and believe that the Government will create a more flexible system of social housing—a system that recognises that everyone’s needs are not the same, that offers stability when needed, that helps people to move when they start to work, for example, and that protects the most vulnerable people in society.
Ms Buck
The hon. Gentleman makes quite a lot of an anecdote about Mr Crow—we could all make policy by anecdote—but does he recognise that the average income of social tenants is dramatically lower than that of private owners and tenants and therefore that Mr Crow’s house and those of a handful of others like him will not house the 1 million people who are on social housing waiting lists?
Mr Offord
I thank the shadow Minister for making that interesting point, but a principle could be set that someone such as Mr Crow should not espouse certain values on the one hand and live in a different fashion on the other. She also makes the important point—I am sure that she is very keen to hear this—that the Government’s plan to make work pay for people will be a valuable incentive to encourage people towards home ownership rather than the culture of dependency that I spoke about earlier.
Currently, the rules to allocate social homes are unfair. Despite the previous Government spending £17 billion on social housing in the past 13 years, more than twice as many people were left on the waiting lists. Again, I welcome the Government’s recent consultation, and I notice that the local authorities that responded welcome the plans to give them extra freedoms to manage their waiting lists in particular and that two thirds of social landlords said that they plan to use the new flexibility to offer fixed tenancies—something that will reinvigorate the market. Indeed, the Localism Bill, which is currently before Parliament, will give landlords the option to offer flexible tenancies and give councils greater control over allocating their social homes. The valuable resource that we all have in our constituencies will be available to all those who need it, when they need it.
Clive Efford (Eltham) (Lab)
My local authority has foolishly considered the possibility of fixed tenancies, but its objective is to provide housing for people in employment. Does the hon. Gentleman think that it would house Bob Crow?
Mr Offord
Bob Crow earns enough—if we can call it earning—to house himself, so I do not think that he will need such assistance from any local authority.
I hope that the Minister mentions some of the reforms that the Government are promoting. I am certainly aware of flexible tenures, which I have mentioned, and fair allocations, but I should like the Government also to focus on greater social mobility. Again, I return to making work pay and to fixed tenancies that allow people to consider their housing needs and, as they change, to change where they live.
I want the Government to consider fairer provision for homeless people. I should like local authorities to have greater flexibility to make decisions on how best to stop people becoming at risk of homelessness. Currently, some homeless families turn down the decent private rented accommodation that they have been offered as settled homes and demand to be provided with more expensive temporary accommodation at greater cost to the taxpayer until a social home becomes available. Surely—I hope the Minister agrees—that cannot be right for the taxpayer, and it cannot be right for those individuals.
I shall leave my comments there, but as I said, I certainly welcome the debate. It is important; we have heard some good contributions; and I look forward to the Minister’s response.