Future of Social Housing

Matthew Pennycook Excerpts

Wednesday 19th April 2023 Westminster Hall

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Paisley.

I start by warmly congratulating my hon. Friend the Member for Weaver Vale (Mike Amesbury) on securing this incredibly important debate and on the compelling remarks he made to open it. His personal commitment to tackling the housing crisis in all its manifestations is second to none. He made a passionate case today for doing what is necessary both to tackle the present chronic undersupply of genuinely affordable social homes and to drive up standards in those that already exist. I thank all the other hon. Members who have contributed this afternoon in an extremely powerful set of speeches, particularly those of Labour Members, who really brought home the human cost of the neglect in recent years.

A wide range of issues has been raised in the debate this afternoon, but the vast majority of them have related either to the pressing need to build more social homes or to the equally pressing need to ensure that our existing social housing stock is well managed and of good quality. I will seek to address each issue in turn, starting with supply.

It is beyond dispute that England’s social housing deficit is now immense. Over 1.2 million households are now on local authority waiting lists, and that number is almost certainly a significant underestimate of the number of families for whom social housing would be an appropriate tenure if it were available. The point was made by my hon. Friend the Member for Vauxhall (Florence Eshalomi) that because successive Governments have failed to build enough social homes, millions of families are trapped in overcrowded or unsuitable properties, an increasing number of low-income households have been forced into insecure, unaffordable and often substandard private rented housing, and the number of households in temporary accommodation has rocketed from 48,000 in 2010 to 99,000 in 2022.

The cost of this tenure shift has been borne not only by those trapped in inappropriate housing, who are often at risk of homelessness, but by the state in the form of a rapidly rising housing benefit bill, which now stands at a colossal £23.4 billion per year. That sum amounts to more than the total running costs of several Government Departments, yet when it comes to social housing supply, the record of successive Conservative-led Governments since 2010 has been nothing short of woeful. As my hon. Friend the Member for Weaver Vale mentioned, the Department’s own data makes it clear that just 7,528 social homes were built last year. At the same time, 21,638 were either sold or demolished. That is a net loss of 14,110 genuinely affordable homes when we know that we need to build around 90,000 a year if we are ever to meet housing need.

That meagre 2021-22 output figure is not an aberration. By means of slashed grant funding, the introduction of the so-called affordable rent tenure, increased right-to-buy discounts and numerous other policy interventions, Conservative-led Governments have actively engineered the decline of social housing over the past 13 years, presiding over an average net loss of 13,000 social homes in each and every one of them. For all that the present Secretary of State waxes lyrical about the need to build more social homes, the steps that the Government are actually taking—namely, slightly tilting the balance of affordable homes programme spending towards social rent and providing local authorities with some additional flexibilities around the use of right-to-buy receipts—are not only too little, too late but undermined by other measures that Ministers are committed to enacting; not least, as my hon. Friend mentioned, the introduction of a new infrastructure levy that will almost certainly deliver less affordable housing overall than is provided through the present developer contribution system. Labour is the only party seriously committed to a marked increase in social house building. We will set out plans ahead of the general election that will make clear the level of our ambition and how we intend to meet it.

Given the chronic shortage of social homes across England and the corresponding lack of choice available to tenants, it is critical that what social housing stock remains is of decent standard, yet we know that the lives of far too many social housing tenants are blighted by poor, unsafe and unhealthy conditions. The shared recognition across these benches of that fact and the consequential need for the Government to act—[Interruption.]

[Ian Paisley (in the Chair)]

Order. There is a vote in the other Chamber, and there will be at least two votes, possibly three. Hopefully, we will be back here at about a quarter past the hour to complete the debate.

--- Later in debate ---

[Ian Paisley (in the Chair)]

I thank colleagues for making their way back so promptly; that is very helpful. I call the Opposition spokesperson—you have six minutes, or thereabouts.

[Matthew Pennycook]

Thank you, Mr Paisley. As I was saying, the shared recognition that exists across these Benches of the fact that the lives of far too many social housing tenants are blighted by poor, unsafe and unhealthy conditions, and of the consequential need for the Government to act, enabled the Social Housing (Regulation) Bill to complete its Commons stages in short order.

However, when it comes to ensuring that standards in social housing improve markedly and rapidly, the Bill is not a panacea. The onus to drive reform is, of course, ultimately on the sector itself, and the steps being taken following the publication of the “Better Social Housing” review are a welcome sign that it may be doing just that. However, the Government are ultimately responsible for the state of social housing in England and, subsequent to the Bill’s receiving Royal Assent, the Government will still have a significant role to play in assisting social landlords to improve their stock and tackle the underlying causes of problems such as damp, mould and leaks.

The problem is that political choices made by successive Conservative-led Governments have piled significant financial pressure on to social landlords. As my hon. Friend the Member for Hammersmith (Andy Slaughter) argued earlier, the cumulative impact of having to build new, affordable homes despite swingeing grant funding reductions; the four-year 1% rent cut imposed between 2016 and 2020; the fact that the shortfall arising from this year’s 7% rent cut is unfunded; and the long-term challenges posed by decarbonisation and building safety in the absence of adequate Government support cannot be overstated.

Social landlords who wish to improve their existing stock face a monumental challenge. We need a Government who at least recognise that situation and are willing to explore what more is required from them, not least in funding and financing mechanisms to support social landlords to upgrade their stock, yet we see no signs that the present Government are giving the issue the attention it deserves. It is therefore likely to be yet another task that will fall to the next Labour Government.

The historical and ongoing failure to build enough social rented homes has seen growing numbers of families trapped in overcrowded, unsuitable, insecure or unaffordable properties. Those families suffer in terms of diminished health, wellbeing and life chances, and the state also pays in the form of an eye-watering and ever-rising housing benefit bill. Social housing is at the heart of the solution to the housing crisis, and the Labour party is committed to its renewal and rebirth through a substantial programme of social house building and further measures to drive up standards in our existing stock.

When it comes to social homes, “more” and “better” must be our watchwords. It is high time we had a Government who do not just pay lip service to the importance of social housing, but are wholeheartedly committed to providing decent, safe, secure and genuinely affordable homes for all who need them.

[Ian Paisley (in the Chair)]

I call the Minister—our third Rachel of the day.

--- Later in debate ---

[Rachel Maclean]

When I have finished this point, I will. The hon. Member for Stockton North said very clearly that the last Labour Government did not build enough social homes, either to rent or to buy, and I agree with him. [Interruption.] I will let the hon. Member for Weaver Vale intervene on me, but I want to answer his point. He has set out that he thinks a Labour Government are the answer to this situation; I disagree. A Labour Government are not the answer—the last Labour Government did not build enough affordable homes, social homes or council homes. If we look at Labour-run Wales, we see that they have an appalling record of building social housing.

Two London MPs spoke in the debate to highlight problems in London. I would like to remind—

[Matthew Pennycook]

Will the Minister give way?

[Rachel Maclean]

When I have finished my remarks. I would like to remind the House that the Mayor of London is responsible for housing in London. He is a Labour Mayor of London and the problems there lie firmly at his door.

Many Members have also spoken about councils. I would like to point out my own local council’s record. Conservative-run Redditch Borough Council is delivering council housing. That is happening now that the Conservatives are in control of the borough. When Labour was in control of Redditch Borough Council, it delivered precisely zero.

[Mike Amesbury]

rose—

[Matthew Pennycook]

rose—

[Rachel Maclean]

I give way, first to the hon. Member for Weaver Vale, who first asked me to.

[Rachel Maclean]

I thank the hon. Member for his remarks. I listened carefully to the response of the hon. Member for Greenwich and Woolwich on the Front Bench. What I heard is our agreement about the need to build more social homes to rent or buy, and Government Members also set that out very clearly. What I did not hear—from any Opposition Member—was a clear answer on how they will do that, so we await that.

[Matthew Pennycook]

Will the Minister give way?

[Rachel Maclean]

No. With respect, the hon. Gentleman has had his time, and I need to get these points on the record.

I want to talk about what we are doing. To support continued delivery, in March this year we announced that local authorities will have access to a new concessionary Public Works Loan Board interest rate for council house building from June this year. Local authorities have a real part to play in that endeavour. We are giving them the flexibility to make locally led decisions that deliver the best deal for their communities.

The Levelling-up and Regeneration Bill will create a new infrastructure levy—many Members touched on that, so it is important that we set the record straight. The new infrastructure levy will capture more land value uplift. That will enable us to deliver even more affordable housing, which is badly needed.

Local authorities will continue to benefit from the £11.5 billion affordable homes programme, which we have discussed today, along with the scrapping of the housing revenue account borrowing cap. They will also benefit from greater flexibility, which someone mentioned from a sedentary position, in how they can use receipts from right-to-buy sales. I strongly urge councils to make use of those measures so that we can see more new homes built in the places where they are needed the most.

We briefly touched on social housing standards. The Secretary of State for Levelling Up, Housing and Communities could not have been clearer in his statements to the House when he said that every person in this country, no matter where they are from, what they do or how much they earn, deserves to live somewhere that is decent, safe and secure.

The tragedy of Awaab Ishak’s death made clear to us all the devastating consequences of inaction. The time for promises of improvements is well and truly over. Awaab’s law has been added to the Bill, with new requirements for landlords to address hazards such as damp and mould in social homes within a fixed period.

I want to finish by thanking all the Members who have contributed. We are committed to the abolition of section 21 eviction orders—