House Building: London

Munira Wilson Excerpts

Wednesday 5th November 2025 Westminster Hall

[Dame Meg Hillier]

That is a fair challenge, and I am sure that the Minister will pick that up. It is important that we all know where the goal posts are.

I would like to ask the Minister about the release of public land. This is something that I have looked at over the years. Whether it is the Ministry of Defence, Transport for London or the Department of Health and Social Care, the Treasury has, over many Governments, insisted that that money goes back to the Department. On one level, that is completely logical, but looking at hospitals or schools, if that land could be used for housing, it would help teachers, nurses or doctors to live locally.

[Munira Wilson (Twickenham) (LD)]

I have long campaigned on that issue. I have a disused police station in my constituency, in Teddington, and we want to turn it into a GP surgery and social housing. I tabled an amendment to the Planning and Infrastructure Bill to ensure that public sector sites are redeveloped for public good. Unfortunately, I have had no response from the Minister. Does the hon. Lady agree that that would be a good amendment to make?

[Dame Meg Hillier]

I hear what the hon. Lady says, but I also recognise that there are financial challenges with the Treasury signing a fairly blank cheque to say that all public land could become housing. We need to be creative about this, and that is where we need a mixture of local knowledge and some flexibility from the Treasury. For example, the change of use of school sites was quite gummed up in the Department for Education under the previous Government. We need to make sure that any change of use can be dealt with relatively quickly. It will be better for health and education outcomes if we use that land for other things.

We need a national mission on housing, and I applaud the Minister for leading on that. Does he have any plans to limit further overseas purchasers buying these properties? It is great for developers, because they get that cash in, but we need to prioritise local people, and tax does not seem to be doing it. Does he have any thoughts about restricting Airbnb? I know well the blocks that my right hon. Friend the Member for Islington South and Finsbury was talking about, because during covid, people paid rent to go to those places to isolate, but they were not proper homes. That is having a devastating effect on school numbers across London. Could the Minister look at the costs of building? The long-term costs of not doing it will be enormous, and we need to support those families who desperately need social rented housing.

--- Later in debate ---

[Luke Taylor (Sutton and Cheam) (LD)]

Thank you, Mr Mundell. It is a pleasure to serve under your chairship. I thank the hon. Member for Old Bexley and Sidcup (Mr French) for securing this debate. It is extremely timely, because it is less than a fortnight since I was last in this Chamber debating housing policy—it seems that I am the Liberal Democrats’ housing spokesperson for London. Contrary to what some in the Government seem to think, there is no inherent tension between the three most important tasks facing us: to build safe homes, to build green homes and to build affordable homes. The limitations or structural problems with the market are self-imposed by our lack of ambition and our worrying proclivity to shun innovation.

During the debate two weeks ago, the Housing Secretary and the Mayor of London were announcing the raft of measures that triggered this subsequent debate. The measures were announced not at the Dispatch Box, or even in this Chamber in front of what would have been a captive audience, but to the press, giving us no opportunity to scrutinise them and rendering that Westminster Hall debate moot. I invite the Minister to confirm that no subsequent major changes with such a profound impact on the local authorities that everyone in this room works with on a daily basis and on our constituents will be made outside of this place.

Frankly, those measures are not small fry; they hand developers a get-out while Londoners on waiting lists across our city continue to suffer, and they are a threat to the financial stability and forward-planning ability of local authorities across London. The Liberal Democrats are clear: the plans will not solve the housing crisis in London, but make things worse.

[Munira Wilson]

My hon. Friend is making an excellent speech. Does he agree that the measures announced by the Mayor of London and the new Housing Secretary actually reward developers and do not incentivise them? Not only will the mayor be funding half of developers’ affordable housing if they meet the new target, but our local authorities will have their community infrastructure levy money slashed. In Richmond, we could lose £21.5 million of CIL money from the Stag brewery site. That comes on top of the Labour Government cutting our core Government funding under their so-called fair funding formula. Our communities are going to be left without the infrastructure they need and deserve alongside new housing developments.

[Luke Taylor]

I thank my hon. Friend for providing that example of the impact on a specific project, which shows how difficult this will be for our councils.

The announced measures will quietly reduce the requirement for affordable homes from 35% to 20%, forcibly slash the community infrastructure levy money, and barely scratch the surface of the bigger and more profound structural barriers to getting green, affordable and safe housing built. The Government have triggered great uncertainty and more financial instability for local authorities while achieving very little in the shake-up, seemingly because they think that big, decisive action with very little prep work and no consultation is the way to get things done. The Housing Secretary is clearly taking more than just headwear inspiration from a certain world leader—which would make sense if it were not his own zone that he is flooding with a substance that the courtesies of this House do not allow me to name.

In all seriousness, the housing crisis in London deserves more than a knee-jerk reaction. There are 330,000 households stuck on social housing waiting lists—more than the total number of households in our two largest boroughs, Barnet and Croydon, combined. As we have heard, London boroughs are spending £5 million a day on temporary accommodation, although I have heard that figure for about a year, so it must be considerably more by now. According to London Councils, there is a £700 million shortfall in the housing revenue accounts that fund new house building.

The proposed measures will simply make that worse, for two main reasons. First, the Government will facilitate the right kind of house building not by dropping the regulations that developers face, but by amending them and fixing the structural issues within the Building Safety Regulator. Secondly, the measures actively—and inexcusably—disrupt the already stretched financial picture for local authorities. I will take them in turn.

First, granting the right to reduce the level of affordable housing per project fails to recognise that the proliferation of a particular kind of luxury, unaffordable housing in London means that it is unlikely that new building accelerated under the scheme will ease upward pressures on house prices in the capital. Giving the mayor new powers to call in decisions and accelerate them almost on a whim does nothing to address the concerns that local authorities and local residents will have about their ability to object to new housing that will not contribute to solving the crisis. The measures seem to be imposed in an imagined battle against the nimbys, when most in London have lived experience of housing instability—either their own or that of younger family members, co-workers or friends—and, as such, are in favour of the kind of house building that actually addresses the crisis.

--- Later in debate ---

[Matthew Pennycook]

I recognise my right hon. Friend’s point. I cannot comment on specific applications, but it is important that I emphasise that applicants will be expected in the first instance to seek grant to maintain or increase the level of affordable housing in existing section 106 agreements. Only where that has been fully explored with the GLA, and has been demonstrated not to be possible, can schemes be renegotiated via a deed of variation with the aim of delivering at least the relevant level of affordable housing established in the new planning route, and on the same terms.

We are providing the mayor with new planning powers that expand his ability to intervene directly in applications of potential strategic importance in order to support housing delivery and maximise densities. Those powers are set out the policy statement that we published on 23 October. In response to the concerns raised around those specific powers, I think Londoners would expect, with the scale and severity of the housing crisis we have in our capital, the mayor to do everything he possibly can to ensure homes are not being ruled out without good reason on sites, and to ensure that sites are coming forward with appropriate density.

[Munira Wilson]

Will the Minister give way?

[Matthew Pennycook]

I will give way briefly, but it will be the final intervention that I accept.

[Munira Wilson]

Does the Minister accept that sometimes the mayor’s intervening slows down development? Earlier, I cited the example of Stag brewery in Mortlake. That development of 1,000 units would have started years ago, but thanks to the mayor calling it in, it was slowed down and it has still not been built.

[Matthew Pennycook]

I am not going to comment on the use of the mayor’s planning powers in specific instances. We think these additional expanded powers are a sensible response to the crisis in house building that London faces.

Finally, we are providing £322 million of funding to establish a City Hall developer investment fund. Building on the success of the mayor’s land fund, which has already delivered 8,000 homes five years ahead of schedule, this new fund will allow the mayor to take a direct, interventionist role in unlocking thousands of homes, driving regeneration and creating thriving communities.

It is also worth noting that alongside the implementation of this package of support, the Government intend to clarify the use of section 73 of the Town and Country Planning Act 1990 so that an application under the section to vary a condition of a planning permission should no longer be used as an alternative means of reconsidering fundamental questions of scheme viability or planning obligations.

In the time available to me I am not going to be able to respond to all the points that have been raised. There have been a number of very good points. I could speak, for example, about what more can be done on TfL land. I think it is worth noting that Places for London is on site, constructing nearly 5,000 homes, 56% of which are affordable. It has already delivered 1,600, but there is definitely more we can do on TfL land around train stations. There is more that the Government are doing on the release of public sector land. I am happy to write to my hon. Friend the Member for Hackney South and Shoreditch (Dame Meg Hillier) about that in particular. I can assure hon. Members that our new social and affordable housing fund will leave a role for acquisitions to be funded.

We know that there is no single simple solution to the development crisis that London is facing. Action to address the acute viability challenges facing residential development in the capital is a necessary intervention, but it is not sufficient. We know that a revival of house building in the capital is dependent on other factors, including increased demand for private for-sale homes, but taken alongside the reforms we are making to the Building Safety Regulator and the significant grant funding we are allocating to London for land, infrastructure and affordable housing, this time-limited package will give house building in London a shot in the arm, and the Government look forward to working with the mayor and the GLA to implement the package and kick-start house building in our capital.