Housing Supply
Debate between Meg Hillier and Tony LloydWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
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Tony Lloyd
The hon. Gentleman brings me on to an important point. One thing that we must begin to recognise is that we do not actually have a housing market; we have many different segments of housing, all of which have different features. Of course we must recognise the needs of vulnerable people and older people—older people are not necessarily vulnerable, but they have different housing needs. Those needs must be recognised in a long-term housing strategy, and we must ensure that provision is across the piece.
I have the current figures on new starts. In their 2015 manifesto, the Government committed to building some 200,000 starter homes over the Parliament, which is 40,000 a year. Quite frankly, the figures are so dismal and so insignificant that we are failing not simply to hit the statistical targets, but failing real families and real people.
Meg Hillier
I hesitate to repeat myself, but, as my hon. Friend just said, the Government are building 40,000 starter homes, and I remind Members that the waiting list for housing in Hackney is 12,000. That is just one London borough. That demonstrates the stark gap between demand and supply.
Tony Lloyd
My hon. Friend is absolutely right. We have got to have a radical shift in how we deliver things.
In the few moments I have at my disposal, I want to talk about some of the things we have to do. I applaud a number of comments made by Members from all parts of the Chamber. London is probably a special case, but there certainly has to be an examination of the capacity for people to move speculatively into the London housing market. They might not simply be overseas investors; in some areas it might be about recognising that institutional investors, or even private investors, have a detrimental impact on the capacity to house our population. A real issue has been raised about London in particular and the position of people on low pay in public services. We want them to work in our inner-city schools, but frankly they cannot afford to pay the rents or mortgages considered to be the norm.
When we still have the concept that a £450,000 property is affordable, we are living in the realms of fantasy. The traditional lending ratio that building societies offer is 4.5:1. By definition, that means that someone needs a family income of £100,000 for that affordable property. Most of us would not regard that as being the income of the people we want to target affordable housing towards.