Cost of Living: Private rented sector

Munira Wilson Excerpts

Tuesday 18th July 2023 Westminster Hall

[Munira Wilson (Twickenham) (LD)]

I congratulate the hon. Gentleman on securing this important debate. I am a London MP, representing a constituency in south-west London. On average, renters in London are spending almost 50% of their pre-tax income on rent, and the housing supply in the private rental sector has dropped dramatically. The impact is that our key workers—our nurses and teachers—cannot afford to live in the capital, and young families are being driven out, which is demonstrated in falling school rolls. However, London Councils says that local authorities could be building 143,000 new social homes; they are ready to do that, but they just need the funding. Does the hon. Gentleman agree that the Government need urgently to come forward with that cash so we can boost the supply of social housing in our capital?

[Andrew Western]

I agree with the points made by the hon. Lady. I commend the work of the local authorities that are leading the way in building social and affordable homes in an incredibly difficult climate. It is not an easy thing to do with the way the grant regime is set up, but I know how fixated council leaders are on tackling the housing crisis, particularly in places such as London and my constituency in Greater Manchester, where prices are driving key workers and low-income workers out of the local area, which causes all sorts of issues with labour shortages and the provision of skills that we desperately need.

I support planning reform, but it will not be easy. Difficult choices must be made to end the gross inequities of our housing market. In the current system, we are set to spend more on housing benefit than on building affordable homes, and renting is no longer a step in the journey towards owning a home, but an expensive, insecure quagmire, dragging down a generation of younger people. The cost of living crisis is affecting us all, but especially private renters. They are generally, younger, poorer, more vulnerable people, trapped in the vicious circle of a broken rental market. It is no wonder that Sky News found last week that low-income private renters are suffering the most in the current financial climate, and the need for action to tackle this social catastrophe is now acute. Labour has shown that it gets this. I hope that when the Minister responds to the debate, she will show that she understands it too.

--- Later in debate ---

[Mrs Paulette Hamilton (Birmingham, Erdington) (Lab)]

It is a pleasure to serve under your chairmanship, Dr Huq. I thank my hon. Friend the Member for Stretford and Urmston (Andrew Western) for securing this incredibly important debate.

The cost of living is one of the most difficult challenges facing people across the UK. It comes up on the doorstep and in my constituency surgeries in Erdington, Kingstanding and Castle Vale time after time. My constituents, just like many people across the UK, are really struggling to manage the rising costs of energy and food. A constituent told me that they cannot even pay their bills, let alone start paying off their debts. This is all while residents have been hit by the Tory mortgage bombshell—either as homeowners or as renters absorbing costs through higher rents. One of my constituents said:

“Our rent was increased twice within the space of a few months”.

That feeling of helplessness is sadly not unique to communities such as mine. Shelter estimated that on a single night in 2022, there were more than 20,000 homeless people across the west midlands and more than 14,000 in Birmingham. That is equivalent to one in 80 people in the region. We know that the cost of living crisis is pushing more people than ever out of secure housing, with no-fault evictions increasing by 116% this year.

One of my constituents was issued with a section 21 notice. She lives with her son and is a foster carer for her three grandchildren. She has been renting her home for the last six years, but her landlord has decided to sell the property and now she does not even know where they will be living this time next month.

[Munira Wilson]

I am sorry to interrupt the flow of the hon. Lady’s speech, but she gave startling statistics on homelessness in the west midlands. I wonder whether she is aware that in London, where the homelessness crisis is probably at its most acute, a shocking one in 23 children is homeless. That is, on average, one in every classroom. In constituencies such as mine—Twickenham, in the London Borough of Richmond—very little emergency accommodation is available to the council. Families who come to my surgery are having to come in from as far afield as Croydon, Slough and the upper reaches of north London to get to school. That is particularly difficult if their child is on an education, health and care plan. Does the hon. Lady agree with me that as well as urgently building more social housing, a short-term fix for some of these problems is to increase the local housing allowance urgently?

[Mrs Hamilton]

I thank the hon. Lady for that question. I absolutely agree with her that the allowance needs to be increased. The situation is just going from bad to worse. At the moment, to say that we must tighten our belt, as the Prime Minister has said, is just not good enough. Sometimes we have to spend so that we can ensure that our citizens are being taken care of.

There are real, human implications from the Conservatives’ failure to end no-fault evictions. Since they promised to do so three years ago, more than 50,000 households—like my constituent’s—have been threatened with homelessness under section 21. Where people can find housing, it is not always suitable or even safe.

In Erdington, we have real problems with houses in multiple occupation and exempt accommodation. In April 2023, the ward of Stockland Green in my constituency was assessed as having 271 HMOs. That places the ward sixth highest in Birmingham, with an increase of 39 properties this year; it is reducing family homes in that area. I hear regularly from constituents living in so-called supported housing complaints about anything and everything from bedbugs and disrepair to serious concerns about fire safety, fly-tipping and antisocial behaviour.

In the last month alone, two new planning applications have been made for HMOs in my constituency. One is to turn a three-bedroom property into a seven-bed HMO, and one is to turn a former pub into a 10-bed HMO. I led a campaign calling on local people to object, and our petition collected the support of 398 concerned residents in a week. That is an issue that my constituents and I feel strongly about, and it is not going away. The only way to fix the housing crisis is to build far more social housing. Under the Conservatives, the number of new social rented homes has fallen by over 80%. Labour will build more social homes, ban no-fault evictions and prioritise boosting our economy so we can fix the broken housing market. The bottom line is that everyone deserves a secure and safe home, but sadly right now my constituents and people across the UK cannot have one because they are paying the price of a Tory Government. It is time for change.