House Building: London
Neil Coyle Excerpts(1 week, 3 days ago)
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Neil Coyle (Bermondsey and Old Southwark) (Lab)
My intervention is similar. Under Sadiq Khan’s period in City Hall, there have been 8,236 Greater London Authority-funded affordable starts in my borough of Southwark, including 636 completions in the last year. That somewhat contradicts the hon. Gentleman’s statements. Rather than trying to pin it on the mayor, could it be that the hon. Gentleman’s council is failing on this front? Perhaps we could be working together, rather than trying to pin it on one man.
Building Safety Regulator
Neil Coyle Excerpts(3 weeks, 2 days ago)
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Chris Curtis (Milton Keynes North) (Lab)
I beg to move,
That this House has considered the performance of the Building Safety Regulator.
It is an unrivalled pleasure to serve under your chairmanship, Sir Desmond. I thank the Backbench Business Committee for granting the debate and colleagues from four different parties for adding their names to the application. Since being elected last year, I have been searching for something that the hon. Member for Boston and Skegness (Richard Tice) and I can agree on, and I am thankful that we finally managed to find it. The breadth of support demonstrates the shared determination across the House to make the system work better. I also thank those from across the industry for their tireless campaigning on the issue, as well as for the constructive way they have worked to ensure that we can get safer buildings across the housing system and provide the supply that is so desperately needed.
Across the construction and development sectors, there is rightly a growing frustration about how the new building safety regime operates in practice. Everybody supports the principle of safer buildings, but there is increasing concern that the system as it stands is holding back progress on building the new homes that are so desperately needed. My hon. Friend the Member for Northampton South (Mike Reader) and I sought this debate because of the growing concern across industry that the Building Safety Regulator, while well intentioned, is becoming a real barrier to hitting the 1.5 million homes target that we promised at the general election and that it is so important we achieve.
We should be absolutely clear that this debate is not an attack on the principle of building safety—very far from it. Seventy-two people lost their lives in the Grenfell Tower fire on 14 June 2017—72 lives needlessly and tragically lost. It remains a stain on our national conscience that it took such a disaster to ensure that we have proper accountability and testing in the building industry.
The Building Safety Regulator is a vital part of ensuring that nothing like Grenfell ever happens again, but it has to work. Time and again, developers and councils tell me exactly the same story: that schemes are stuck in the system and that, although the regulator is supposed to process applications within 12 weeks, tens of thousands of homes are still stuck to this day. The latest figures suggest that 22,000 homes are waiting for a remediation decision and that 33,000 new homes are waiting for approval. The cost of that is severe: according to the Centre for Policy Studies, there has been a 73% drop in housing starts in London over the past year, with the regulator one of the biggest causes. It is good to see today’s Government announcement on the ways we are going further to get the London housing market moving again, but the industry will still say the Building Safety Regulator is one of the biggest obstacles.
Perhaps the biggest travesty is that if we do not build new safer homes, more people in this city and across the rest of the country are stuck in more dangerous and older properties. That is before we even start to consider the thousands who are stuck in temporary accommodation —one child in every classroom—or those who are paying extortionate rents because this country has failed for decades to build the homes that are needed.
We now see a growing backlog in the BSR because telecoms infrastructure is being caught up in the new regulations for high-risk buildings—I say this in a building where I still cannot seem to get good phone signal, because we are not building the mobile phone infrastructure that is required across the city. That is causing real practical problems. It threatens to seriously impact the delivery of new buildings, particularly when rooftop installations are involved. If that is not addressed quickly, it could slow down construction and digital roll-out at exactly the point when this country needs to be improving both.
The delays affect not just developers but people: the families living in buildings that are still awaiting remediation and the people who know that their homes are not yet deemed fully safe. The stress that causes day after day is unimaginable. When we talk today about process, paper- work and delays, we must remember the human beings at the heart of this issue.
The economic impact is also huge: rising insurance costs, development finance drying up and higher up-front fees—all before a single brick gets laid. It has a real effect on the viability of building, particularly in our bigger cities. Peter John, the former head of Southwark council put it bluntly:
“The greatest single burden developers have faced over the last five years has been the introduction of the Building Safety Regulator. The unintended consequence of improving building safety cannot be to cut off the supply of new homes.”
He is right.
Melanie Leech of the British Property Federation told the Select Committee that BSR delays are holding back two thirds of the build-to-rent pipeline. As we are rightly reforming the Renters’ Rights Bill, which was considered in the Commons again yesterday, we need to ensure that new build-to-rent properties are built, in order to keep the system unclogged. Fewer new rental properties obviously means higher rental prices for everyone else. The Home Builders Federation says exactly the same: the delivery of high-rise developments has “ground to a halt”.
Earlier this week, the Government held their regional investment summit, and the message could not have been clearer: the UK is open for business, full of opportunity and led by a Government determined to drive growth. But investors also reminded us about the hard truth that investment is global, and if it takes too long or if it is too difficult to see a return here, capital will simply go elsewhere. We must pull down the barriers to investment and make it easier for growth to happen right here in the UK. If we are serious about growth, we need to back the builders, not the blockers.
The good news is that fixing this does not require a huge amount of money from the Treasury—given how difficult it is to get money out of the Treasury—and it is not primarily about huge amounts of new spending. But it does mean investing in the right people: the experts who can process complex applications quickly and accurately. Will the Minister confirm whether the BSR will have the flexibility to offer market rates to attract those people, rather than being constrained by standard civil service pay bands?
Secondly, it is about culture. Too many developers tell me they face a “computer says no” approach—an invalid application is simply rejected, forcing the whole process to restart. That would be frustrating enough over 12 weeks, but over nine months or more it is a killer for confidence. One of the most frustrating stories I have heard in all this is from a developer who was asked by someone at the Building Safety Regulator to slow down the speed at which they were making applications, to stop the BSR from becoming overwhelmed. At a time when this Government are rightly determined to speed up house building, it is frustrating to see an arm of government trying to slow the process down.
Neil Coyle (Bermondsey and Old Southwark) (Lab)
I congratulate my hon. Friends the Members for Milton Keynes North (Chris Curtis) and for Northampton South (Mike Reader) and the Backbench Business Committee on this debate. My hon. Friend talks about the frustration of a nine-month delay, but the BSR is supposed to work to a 12-week turnaround. Is he aware that 338 council homes at the Bermondsey biscuit factory have already been held up for 54 weeks? When approached, the BSR asked for another 12 weeks to complete the application decision.
Chris Curtis
I thank my hon. Friend for those comments, which show exactly the kind of consequences we are facing because of what has been happening to the Building Safety Regulator. If we are not building new social homes, we have to ask where they are going to be instead. Quite often, children aged one or two are stuck in temporary accommodation, not learning to walk or crawl properly and having their life chances curtailed because this city and this country have failed to build the homes to give them a proper life chance. It is important that we stand up to the blockers who stand in the way of that.
Could we move to a more collaborative approach, in which BSR staff can work iteratively with applications to resolve issues as they arise, rather than starting from scratch each time? I have heard worrying reports of inconsistency, with different teams taking different decisions on similar cases. What is being done to ensure greater transparency and consistency? Has the Department assessed whether further guidance is needed for both applications and the regulator itself?
The BSR has said that it hopes to clear the gateway 2 backlog before Christmas. I welcome that level of ambition, but will the Minister confirm what support the Government are providing to make it happen and whether new applications submitted after that point will be turned around within 12 weeks? Once gateway 2 approvals start to come through, we will start hitting the gateway 3 process, which is the sign-off after construction and before occupation. What preparation is being made to ensure that that process does not simply become the new bottleneck?
I will finish with a slightly wider point. Grenfell was a national tragedy caused by unforgiveable negligence, and it was right that the state responded, but when we design new regulations or regulators, we must remember the cost of getting it wrong. In this case, the cost is stalled projects, families waiting longer in unsafe homes, tens of thousands of children waking up this morning in temporary accommodation, and families paying unaffordable rents. The intent was sound; the implementation has been a catastrophic failure.
The lesson is clear: future systems must be built with feedback loops from day one, clear service standards, real-time data on performance, and consistent guidance. If the first version falls short, as it will from time to time, we need rapid reform, not months of drift while the consequences stack up. That is not about weakening safety; it is how we deliver better and faster. It is how we honour the lives of the 72 people we lost at Grenfell—not only by saying, “Never again,” but by building more of the safe, modern homes that this country needs, with a regulator worthy of the trust we place in it.
Chatham Docks Basin 3 Redevelopment
Neil Coyle Excerpts(1 year, 6 months ago)
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Kelly Tolhurst (Rochester and Strood) (Con)
I beg to move,
That this House has considered the redevelopment of Chatham Docks Basin 3.
It is a pleasure to serve under your chairmanship, Sir Philip.
The debate over the future of Chatham docks has stirred strong emotions in our community. On one side, Peel Waters has proposed a residential-focused mixed-use development, but closer examination raises concerns about its sustainability and impact on our already thriving industries. The proposal has prompted legitimate worries about the quality of jobs, uncertainty surrounding investments and the overall environmental footprint, echoing sentiments that I have been expressing for several years.
In response to those concerns, I have been championing an alternative vision alongside the Save Chatham Docks campaign. It centres around the SPPARC Architecture masterplan, which sets out revitalisation focused on modern industrial space, emphasising job creation, economic growth and environmental sustainability—all essential for the future of the port’s activities. I appreciate the opportunity today to highlight that cause and to bring further information forward as to why saving the docks is the only sensible solution.
Chatham docks was part of the old Royal Navy Dockyard Chatham estate, which has stood proudly for 457 years.
Neil Coyle (Bermondsey and Old Southwark) (Lab)
Sir Philip, is it not normal to declare interests at the start of a debate? Is the right hon. Lady intending to make any such declarations?
Neil Coyle
Sir Philip, you may wish to explain the rules—but I think it is a requirement that where we have interests in a particular area, or a potential financial interest, we declare them before we comment on or speak to that issue. I again invite the right hon. Member to make any declarations that are relevant.
Kelly Tolhurst
I would like the hon. Gentleman to elaborate on which financial interest he thinks I have.
Kelly Tolhurst
My understanding is that there are other organisations operating within the port facility that want to stay where they are. Some have relocated because they unfortunately did not have another option; their leases meant that they were unable to stay.
The operations at Chatham docks span a diverse range of high-value industries. Materials and goods are brought in via water channels, undergo processing and manufacturing, and are subsequently exported.
Neil Coyle
Two of the companies that have been operating in Chatham docks for marine repairs are EAPL and Stick-Mig Welding. Does the right hon. Lady have anything to say about the relationship between Skipper Ltd and those two companies?
Kelly Tolhurst
I think the hon. Gentleman is referring to Skipper (UK) Ltd, which I am still a director of—and which has no customers or interests in Chatham docks or any of the businesses that operate in Chatham docks.
A sometimes overlooked aspect of the incumbent operations at Chatham docks is the strong commitment to nurturing talent. The array of apprenticeship programmes provides excellent avenues towards rewarding careers. In 2020 alone, 16 apprenticeship programmes offered 20 positions per 1,000 jobs, massively surpassing the Medway average of about nine apprenticeships for every 1,000 jobs. The investment in people not only benefits the individuals involved but strengthens the workforce of the entire region, offering high-quality careers that make a real difference.
Importantly, the jobs offered at Chatham docks provide above average wages, raising the median wage in Medway. The average annual earnings were £43,000 in 2023—nearly 9% higher than the Medway median wage. These positions serve as a crucial driver of economic stability, especially in an area where 13.5% of Medway’s workforce earn below two thirds of UK median pay as of 2021. It is clear that Chatham docks are absolutely essential for the local population. In 2019, it was found that 20% of its workers lived in the Chatham docks three-digit postcode—ME1—and 45% across Medway.
The economic significance of the docks extends beyond direct employment and wages: it contributes significantly to the regional economy, accounting for more than 4% of Medway’s gross value added and generating approximately £89 million in GVA annually. In addition to its economic contribution, Chatham docks also plays a vital role in generating tax revenues, which contribute essential funding for local services and infrastructure. The annual tax revenues are estimated to range between £27 million and £36 million, and the annual business rates payments are about £2 million. Those revenues also provide financial resources to support the community.
The main issue at hand, and my reason for calling this debate, is the progress of Peel Waters’ attempt to end the use of Chatham docks as a commercial port, displacing the businesses within it, with the loss of high-quality jobs. Peel Waters has a vision to implement a residential-led, mixed-use development across the site. It has been over a decade since Peel Waters first set its sights on the redevelopment of Chatham docks, and started to redevelop part of the land. Its 2013 application initially boasted that development of Chatham Waters would provide 3,549 permanent jobs once fully developed, or 2,418 net additional jobs, with an associated GVA of around £92.4 million.
The projections suggested a substantial boost to both employment and the local economy. Looking deeper into the plans as time progressed, however, all is not as it seemed. The 2013 planning statement provided a more specific breakdown of the employment that would be delivered. It showed a significant proportion of projections included employment for retail and hospitality. For the projected 764 jobs as part of phase 1, 400 to 450 would be provided at the Asda retail food store, 40 to 50 at the pub and 20 at a coffee shop. I have long championed the hospitality industry, but this would be a stark contrast to the jobs that they would replace from the manufacturing, construction and transport industries.
Social Housing Occupancy
Neil Coyle Excerpts(1 year, 8 months ago)
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Catherine West (Hornsey and Wood Green) (Lab)
I beg to move,
That this House has considered social housing occupancy levels.
It is a pleasure to serve under your chairmanship, Sir Gary. I shall be speaking about an important issue that my constituents raise weekly—one that I have been campaigning on for many years as a Member of Parliament and a London council leader before that. It is about overcrowding in social housing, and indeed the housing crisis. I hesitate to use the term “crisis” because that would imply that the problem was sudden, unexpected and appeared out of nowhere, but no, the housing emergency intensified after the global financial crash of 2008-09 and in ensuing austerity years under consecutive Conservative Governments.
The generation born at the end of the second world war grew up in a world where people from a range of backgrounds had the opportunity, rightly, to live in an affordable and secure home. However, that completely changed after Mrs Thatcher’s privatisation, which created a property boom, and for the first time ever, homes became a barrier to social mobility. Over the years, the right-to-buy policy has led to the depletion of high-quality social homes. Nowadays, people are more likely to own a home if their parents own a home.
In England, there are now 1.2 million families waiting for social homes. In my own borough, 13,343 households are on the housing register. To date, over 2 million council homes across the UK have been sold off, with only 4% of them replaced. The Chartered Institute of Housing found that, as of 2021, 40% of the homes sold under right to buy were owned by private landlords who could charge as much rent as they wanted. Rather than subsidising rents through millions of pounds of housing benefit, surely it would be easier and cheaper to build council homes.
In my constituency of Hornsey and Wood Green, the average house price is £630,000, way above the national average of £285,000, according to a Library briefing from March 2023. Home ownership is an impossible dream and council homes are in short supply. Young people growing up in my constituency are forced to move away, or to live with their parents, or to spend up to 60% of their monthly income on expensive, insecure and often poor-quality privately rented housing.
Neil Coyle (Bermondsey and Old Southwark) (Lab)
I thank my hon. Friend for securing this important debate. Will she take the opportunity to congratulate the London Mayor on trying to tackle part of the problem by building homes? In my own borough of Southwark he has built 926 homes, including on the Manor and Rennie estates in Bermondsey, in Rotherhithe, and, in partnership with the Leathermarket Joint Management Board, off Long Lane.
Catherine West
My hon. Friend is right that this issue takes political will. If people cannot afford to save while privately renting, they are not able to save for a deposit, so it is a Catch-22 situation.
Since becoming a Member of Parliament in 2015, I have campaigned for the building of social and affordable homes. I am particularly concerned about the level of overcrowding and its long-term impact on children and young people.
Catherine West
As ever, the hon. Member makes an extremely important point. I am aware from reading in the press that Northern Ireland also has a shortage of the correct sorts of homes. Perhaps the right number of bedrooms are available, but not in the right configuration.
In Haringey, 1,053 individuals are estimated to be living in overcrowded or severely overcrowded council homes, and 871 private sector tenants in the highest social housing priority band are overcrowded or severely overcrowded. We know that no local authority wants to place a household in unsuitable or overcrowded accommodation. However, the severe reduction in the number of homes available to let through social housing and the changes to the local housing allowance mean that councils are forced to use the dwindling private rented sector, bed and breakfasts, low-quality accommodation, and hotels.
Sadly, constituents get in touch with me all the time who are exhausted with living in overcrowded, damp and mouldy homes, waiting years or even decades for suitable social housing. Last summer, one constituent told me she lives in an emergency one-bedroom studio with her 16-year-old teenager and six-year-old severely autistic son. As well as the cramped conditions, she told me,
“the roof has collapsed, and our bulbs keep going out as there is some electrical fault here, the fridge doesn’t work, I keep feeling constantly ill because there’s no windows that work either”.
Of course, in London, we all live with the shadow of the terrible tragedy of the Grenfell fire. Another constituent told me that she lives with her elderly parents and two children aged 17 and two. She tells me she has been waiting for her own social home since 2012. She says:
“my parents are elderly, they love me and my children, but due to being overcrowded and being in each other’s space every day, it has caused a major communication breakdown and arguments. I am a single mother with 2 children trying to build a bright future for my children”.
Another constituent currently lives in two-bedroom temporary accommodation with his wife and two children. He has been bidding for a permanent three-bedroom property for eight years with no success—and the list goes on.
London’s housing catastrophe has been 14 years in the making. When London Mayor Sadiq Khan arrived at City Hall, the number of new genuinely affordable homes, as my hon. Friend the Member for Bermondsey and Old Southwark (Neil Coyle) said, had fallen to the lowest levels since records began. The previous Mayor left the cupboard bare and changed the definition of affordable housing to make it even harder for working families. However, things are gradually changing. The Mayor of London is leading a renaissance in council housing development in London. Thanks to Labour, London has seen more new homes completed during Sadiq’s tenure than at any time since the 1930s.
In Haringey—a Labour authority—the council is on track to deliver 3,000 council homes by 2031 and will continue to improve the existing stock. Last year, council house building in London was higher than in the rest of the country, built almost entirely in Labour-run authority areas, where members are pragmatic and tend to agree planning applications where they fit best-practice recommendations, and get on with it over the four years of their term.
Neil Coyle
My hon. Friend makes an excellent point. Southwark Council is the biggest landlord in London, but it also has the biggest council house building programme in the country. Does she agree that it is only with Labour working in partnership with the private and social housing sector that we will address these problems fully, and that we need a Labour Government to do that?
Catherine West
I completely agree. The combination of a Labour Government and Labour authorities at regional level would have a huge impact on house building. We know that it needs to be scaled up to a national level, and regional leaders need the power and backing to build more homes. Imagine the difference that a Labour Government could make.
Neil Coyle
Will the Minister tell us whether the number of people in overcrowded social housing is going up?
Jacob Young
I do not have that figure to hand, but I am happy to write to the hon. Gentleman. I should say that I am not the Social Housing Minister; I am responding on behalf of Baroness Scott in this debate. But I will ensure that the hon. Gentleman gets an answer to his question.
We are also working to improve the quality of social housing nationwide, taking action through the Social Housing (Regulation) Act 2023, which will deliver transformative change across the sector, rebalancing the relationships between landlords and tenants, and ensuring landlords are held to account for their performance. The Act is one of a wide range of measures we are taking to drive up standards across the sector, which include supporting a new regulatory regime to improve the quality and regulation of social housing; introducing new standards on competence and conduct for staff involved in the provision of housing management services; and the introduction of Awaab’s law.
I know the hon. Member for Hornsey and Wood Green is particularly concerned about households that struggle with damp and mould. Awaab’s law, following the tragic death of two-year-old Awaab Ishak in Rochdale in 2020, will now require landlords to address hazards, such as damp and mould, in social homes, within a fixed period. Collectively, those measures support our ambition to halve the number of non-decent rented homes by 2030, as set out in the levelling-up White Paper.
Neil Coyle
In the light of the specific case he just referenced, does the Minister regret the Lib Dem-Tory coalition decision to slash the Homes and Communities Agency’s funding by 83%, which prevented some of those home improvements happening for at least the five years of that Government?
Jacob Young
I would say that we are acting, through legislation, in the Social Housing (Regulation) Act 2023. We introduced Awaab’s law as an amendment to that Act, to ensure that such issues are tackled in a timely manner, to prevent more tragic deaths such as Awaab Ishak’s.
Turning to local housing allowance, the Government recognise the cost of living pressures that tenants face, and that paying rent is likely to be a tenant’s biggest monthly expense, as the hon. Member for Hornsey and Wood Green said. From April 2024, we are investing £1.2 billion, restoring local housing allowance rates to the thirtieth percentile of local market rents. That significant investment will mean 1.6 million low-income households will gain, on average, nearly £800 per year in additional help towards their rental costs in 2024-25.
Decisive action has been taken across the UK to support households through cost of living challenges, meaning that more than 8 million of the most vulnerable households will continue to be supported through winter by additional cost of living payments. Discretionary housing payments are also available to help meet shortfalls in housing costs. Cost of living payments are also available this year to households on means-tested benefits, those on disability benefits and pensioners, with the household support fund now extended by a further six months, to help cover the cost of essentials.
As this debate has shown, we all recognise that social housing is a precious resource, which is why it must be used wisely and fairly. The British public want to know that decent, hard-working people, who have contributed to this country and played by the rules, can secure a home in their local community. That is why we are taking action to ensure that those who abuse the housing system should not benefit at the expense of those who play by the rules, and that local housing authorities do not disproportionately allocate housing to those newly arrived in the country or local area, while local families are left on waiting lists.
In conclusion, we will ensure that all applicants and tenants of social housing can benefit from a system that rewards responsible behaviour and protects local households, while supporting the most vulnerable and those most in need. That system would provide good homes as the building blocks for strong communities to be proud of, and the launchpad for people and families to get on in life.
Question put and agreed to.
Social Housing Standards
Neil Coyle Excerpts(2 years, 11 months ago)
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Michael Gove
The hon. Lady raises a number of important issues. First, local authorities such as Leicester can use selective licensing, which can be a powerful tool. Local authority leaders were recently in front of the Select Committee to discuss the appropriateness of using selective licensing; some regard it as a useful tool and others do not, but I believe it has an important role to play.
The hon. Lady’s second point is about tracking down the ultimate owner, which is a big problem. On coming into the Department, I was surprised by the way in which ultimate owners of property hide behind myriad opaque structures. Through the Land Registry and elsewhere, we need to find means of determining the ultimate beneficial owners of property so that we can take appropriate enforcement action. I look forward to working with the hon. Lady on the issue.
Neil Coyle (Bermondsey and Old Southwark) (Ind)
The Government spend more on housing benefit and its equivalents than on policing and transport combined. How much of that £20 billion of public money is paying for substandard, mould-ridden private rented accommodation? Will the Secretary of State accept the invitation from the housing ombudsman to extend its remit to the private rented sector?
Management of the Economy and Ministerial Severance Payments
Neil Coyle Excerpts(3 years ago)
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Lisa Nandy
My hon. Friend is absolutely right, and I will say more about that in a moment. This country is facing not just a housing crisis, but a growth crisis. Housing is a central part of the answer to the growth problem that the Tory Government have presided over for the past 12 years and it has to be part of the solution. This is a Tory crisis; it was made in Downing Street and is being paid for by working people. It is not Tory Ministers who will pay the price for it, but working people who will do so for years to come.
Neil Coyle (Bermondsey and Old Southwark) (Ind)
There are 8,000 mortgage payers in Southwark who face a rise, on average, of £1,254 a month. Does my hon. Friend agree that they are owed and still waiting for an apology from the Government for the mess of the mini-Budget, which directly caused their mortgages to rise?
Lisa Nandy
The hon. Member is absolutely right. Like many others, I was astonished to see the former Chancellor, the right hon. Member for Spelthorne (Kwasi Kwarteng), recently give an interview in which he said that the only thing that the Government had got wrong was not to explain themselves properly. That is absolutely disgraceful. We are giving Government Members the chance to set this right today and to show whose side they are on. Are they on the side of the people they put in office, who walked away with ministerial severance payments and profited from the crisis that they caused, or are they on the side of working people, who are currently paying the price?
Lucy Frazer
I am grateful to my hon. Friend for that intervention, because I think it is really important to be honest with the British people about the challenges we face, why we are facing them and, therefore, how we can deal with them. To suggest that they are simply being caused by an event that happened two months ago is simply wrong, and Opposition Members know that.
As well as providing immediate support, we have focused on doing everything we can to get our finances in order domestically, because the risk of higher inflation becoming entrenched is the greatest danger. Sound money and a stable economy are the best ways to deliver what the hon. Member for Wigan asked for: lower mortgage rates, more jobs and long-term growth. We have taken every opportunity to do that in the first weeks of this Government—to restore credibility to the public finances, being up front about the enormous task ahead—and the markets have responded positively to what we have done and the direction in which we are going.
Let me now deal with a specific issue raised by the hon. Member for Wigan, that of interest rates. It is important to point out that the pricing and availability of mortgages are not decided by the Government; they are commercial decisions for lenders in which this Government—indeed, any Government—do not seek to intervene. However, let me highlight four points that I am sure Opposition Members would like to hear.
First, as I mentioned earlier, we have already taken immediate action to secure the UK’s economic stability, demonstrating our commitment to fiscal discipline. That has provided stability for the markets, including mortgages. Secondly, although I recognise that many people are concerned about their mortgage payments and do not want in any way to diminish their real and legitimate concerns about the cost of living, about 75% of residential mortgages are on a fixed rate and are therefore shielded from rate rises in the near term. Moreover, because of changes that have been made to the regulatory regime introduced by the coalition Government applying the lessons of the last financial crash, the mortgage application process has been more rigorous, ensuring that borrowers will be able to continue to afford to make repayments. Today’s mortgage holders are therefore better placed to weather the changes.
Thirdly, the Government have some lines of support available aimed at helping people to avoid repossession, including support for mortgage interest loans for those in receipt of an income-related benefit. As I am sure the hon. Member for Wigan heard, the Government announced earlier this year that they would allow homeowners to access support for mortgage interest earlier than the current nine-month wait time. The details on that will follow shortly.
Lucy Frazer
I will give way shortly.
Furthermore, there is some protection in the courts through the pre-action protocol, which makes it clear that repossession must always be the last resort for lenders. Fourthly, if mortgage holders do fall into financial difficulty, guidance from the Financial Conduct Authority requires firms to provide support through tailored forbearance options, which could include a range of measures depending on individual circumstances. We continue to work with the FCA and the financial services sector to explore what additional measures may support efforts to help people facing rising mortgage costs.
Lucy Frazer
I am grateful for my hon. Friend and neighbour’s intervention. He is knowledgeable on all these matters and makes an important point about rhetoric and not action, because I also know, as I am sure hon. Members across the House do, that the Labour party did not deliver the building of the same number of affordable houses—social houses—as this Government did.
On house building, the hon. Member for Wigan seemed to suggest that she was not aware that the Levelling Up Secretary had committed to our plans to work towards 300,000 homes a year—[Interruption.] I have heard him commit to that several times since I have been in the Department. To that end, we have already announced £10 billion-worth of investment in housing supply since the start of this Parliament, with those supply interventions ultimately due to unlock over 1 million new homes over the course of this Parliament and beyond.
Lucy Frazer
I am going to continue for a moment.
Let us be clear about this. There has been a lot of criticism from the Opposition about what we on this side of the House would do, but what is Labour’s record of delivery? This Government have always been clear that it is difficult to solve everyone’s problems all the time, but let us consider what solutions a Labour Government would have come up with in this challenging time and their record of delivery. Our Prime Minister’s approach is one of fiscal responsibility and sound money. Does anyone across this House know what Labour’s annual fiscal black hole is? Labour has racked up £147.8 billion— [Interruption.] I am happy to provide the details. Labour has racked up £159.8 billion of annual spending commitments and only £11.2 billion of annual revenue raisers across a five-year Parliament. Does the hon. Member for Wigan know what that would cost every household? It would be £5,474—
Patricia Gibson (North Ayrshire and Arran) (SNP)
There was a time, not so long ago, when Governments took responsibility. Listening to the Minister, it seems that time has passed, as we heard no contrition and no humility for the Government’s calamitous decisions.
The events of the last few months in particular have been unbelievable, even by the standards of this Tory Government. “It’s all the fault of Putin. It’s all the fault of covid. A big boy did it and ran away.” People across the UK, including in my North Ayrshire and Arran constituency, are now suffering real financial harm and real financial hardship as a result of this Government’s incompetence. The Minister says there are tough roads ahead, and there are indeed tough roads ahead, but those roads will not be travelled by all equally.
Neil Coyle
The hon. Lady shows more courtesy than the Minister did.
The Minister would have us believe that the Government’s Budget had nothing to do with the 8,000 people in Southwark paying higher mortgage rates, and she would like to blame Russia. Does the hon. Member for North Ayrshire and Arran (Patricia Gibson) believe that the Government should take measures to punish those in Moscow and Russia who have profited since the war broke out, such as the Prime Minister’s family, to the tune of £7 million?
Patricia Gibson
The public are becoming increasingly wise to the snake-oil salesman approach in which one thing is said, accompanied by handwringing and head shaking, but no real action is taken to tackle those who profit in a way that most people would find obscene.
If we listened to the Minister, we would think that the so-called mini-Budget had not happened at all. The name “mini-Budget” is ironic because it makes it sound small, but the damage it has caused is very considerable. This Budget revealed, for those who still harboured any vestiges of doubt, whose side the Tories are really on. The so-called mini-Budget sought to scrap the bankers’ bonus cap, reduce taxes for the most well off, cancel the planned increase in corporation tax, refuse to bring forward an extended windfall tax and weaken the rights of trade union members.
Labour’s opposition to the mini-Budget amounted to £24 billion out of £43 billion of tax cuts, and it was left to the right hon. Member for Hayes and Harlington (John McDonnell), as it so often is, to call this mini-Budget what it actually is:
“the most socially divisive Budget in a generation.”
I understand that Labour is a bit worried about upsetting hardcore Tory voters in England, but sometimes harsh language has to be used.
Once the markets took fright and Labour saw the extent of the mini-Budget’s fiscal irresponsibility, it demanded that the entire mini-Budget be reversed, which was not its original position. The Resolution Foundation noted that almost half the gains from the proposed tax cuts would have gone to the richest 5%, who would have gained £8,650 on average, while the poorest half of households would have gained £230 on average. Almost two thirds, 65%, of the gains from the personal tax cuts would have gone to the richest fifth of households.
Torsten Bell from the Resolution Foundation described the measures as a
“simply staggering…tax cut for richer households”.
Save the Children described the tax cuts as
“a hammer-blow to low-income families”.
There were £45 billion of unfunded tax cuts, almost exclusively benefiting the rich.
While all this was going on, the SNP in Scotland was being urged, not least by the hapless hon. Member for Moray (Douglas Ross) among others, to follow the Tories in Westminster in entering the bowels of tax-cutting hell, where the most well off enjoy the windfall of a tax-cutting bonanza. Of course, he U-turned on this, as he so often does. It is often hard to tell if he is going somewhere or coming back.
It was, quite frankly, immoral for such a Budget to be delivered when so many are struggling to pay their bills, and the consequences of announcing these measures—again, it is difficult to call it a mini-Budget given its consequences—were catastrophic. The pound dropped by nearly 2% against the dollar, to the lowest level since 1985. The IMF rebuked the Government for causing such damage to the economy, and international investors declared that the UK’s greater economic suffering than similar countries is a consequence of the “moron premium” it pays due to its terrible leadership under the Tories. The cost of this so-called moron premium stands at £30 billion.
For households across the UK, the cost of the Government’s staggering incompetence is still being counted. Forty-one per cent. of mortgage deals that had previously been available were pulled by the banks, with more than 1,700 mortgage products being reintroduced at rates 2 percentage points higher, leaving hundreds of thousands of families across the UK paying far more for their mortgage. Pensions almost collapsed, and the instability within the UK was the talk of the international steamie. The Minister talks about restoring financial stability, but such urgent measures would not have been needed had the Government not caused such instability.
Building Safety
Neil Coyle Excerpts(3 years, 10 months ago)
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Michael Gove
Absolutely the intention of today’s statement is to try to address the concerns raised so powerfully by my hon. Friend on behalf of constituents who face those imminent bills. I am really grateful to her for drawing attention to the immensely hard work being done by Ministers in the Department. The Minister for Housing, Lord Greenhalgh and the Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for Walsall North (Eddie Hughes), who has responsibility for rough sleeping, have all been working incredibly hard to engage with colleagues across the House and with others in order to try to move this forward. It has been a collective effort and I am very grateful to my colleagues for that.
Neil Coyle (Bermondsey and Old Southwark) (Lab)
It is four and a half years since Grenfell. The Secretary of State has made clear today that the Government have failed to solve the problem, but he then said that his chief action has been to write a letter to developers to ask them to come along to a meeting. That is simply not good enough for the thousands of leaseholders affected in Southwark. The biggest threat in this statement is to allow the backdating of action against those who have installed unsafe products over 30 years, but it is leaseholders who will be forced to take on the legal and other burdens involved, including the fees. Will the Secretary of State therefore amend the Building Safety Bill to finally clarify responsibility and load the burden where it belongs—on the developers, builders and manufacturers—so as to properly protect leaseholders, as Ministers have promised multiple times but which today’s statement fails to deliver?
Michael Gove
The proposals that the hon. Member enjoins on me are the ones that we are seeking to bring forward. However, in fairness to the hon. Member, for whom I have a great deal of respect—he is a courageous and doughty campaigner—I can understand a degree of cynicism and/or scepticism, given some of the missteps we have had in the past. If we manage to make progress along the lines that he has outlined, I hope that he will be in a position then to say that his worst fears were not realised. I think it is perfectly legitimate for him, at this stage, to want to see the colour of other people’s money.
Fire Safety Bill
Neil Coyle ExcerptsMonday 22nd March 2021
(4 years, 7 months ago)
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Neil Coyle (Bermondsey and Old Southwark) (Lab) [V]
Nearly four years after Grenfell, it is very disappointing that the Government still have not finalised support to make people’s homes safe, and that leaseholders are still waiting for the protection that Ministers promised multiple times, and that the Lords amendments could help deliver.
I am in touch with more than 3,000 households affected in my constituency, and hundreds of leaseholders have completed my online survey. These are people left in limbo by our Government, but already facing the cost of service charges or waking watches. There are also those facing costs where there is an uncertain timeline for the work. Seven out of 10 people who completed my survey said that works had been identified as necessary but they had yet to get the date for repairs. There are also people whom the Government deliberately excluded from help with compartmentalisation safety measures, and people living in buildings less than 18 metres tall. I am working with people living in 28 such buildings, and with people who have seen delays in Government action, despite the Government having failed to ensure that regulations meant that house building and renovations were safe. Of course, other people have seen Government guidance needlessly affect their insurance or mortgage.
Today, I am supporting the Lords amendments, but I am also asking the Government not to profiteer from this situation. I am seeking, with cross-party backing, including from the hon. Member for Southampton, Itchen (Royston Smith), who has already spoken, a VAT exemption on essential works required through fire safety surveys, in line with VAT changes made three years ago for some new builds. If that measure is adopted, the Government’s building safety fund will go 20% further, as money will not be lost to VAT. That fund goes on not luxury changes, but essential remedial works required by the Government to make people’s homes safe. Put simply, we cannot go from dishy Rishi eating out to help out last year, to rip-off Rishi profiteering from people’s misery today. I hope that this cross-party request will gain further support, and that Ministers will meet campaigners on this issue.
Bob Blackman (Harrow East) (Con) [V]
It is a pleasure to follow the hon. Member for Bermondsey and Old Southwark (Neil Coyle). The Government have moved swiftly to try to remediate the cladding on tall buildings. There has been slow progress, but progress is being made. In medium-rise buildings—those below six storeys—leaseholders will have to bear a cost, but we do not know what that cost will be, and we do not yet know the results of the proposals for the loan scheme. It is quite clear that the Government are trying to find a way forward, but we have yet to see the details.
There is also the issue of fire safety in buildings. The Bill is vital to preserving fire safety across the country in all buildings, whatever their structure. The Grenfell inquiry lifted the lid on the scandal of the tall buildings erected in this country without following proper fire safety regulations. Once a survey is carried out on a building, we know the extent to which work is required, whether regulations were followed, when the building was put up and whether the materials used in the building were correct. The people who provided substandard materials should be made to replace them free of charge. If builders put buildings up without following the proper regulations, we should go back to them and required them to carry out the remediation.
The one set of people who are completely and utterly innocent is the leaseholders. They did not build their building; they bought their lease in the belief that it was safe and secure. We should send out the strongest signal tonight that leaseholders should not have to pay a penny piece towards the cost of remedying things that were not their fault.
The Minister may say that the Bill is the wrong place to put that provision, but it will take at least 18 months—possibly two years—to bring the building safety Bill to fruition. Leaseholders do not have time to wait for us to deliberate, so let us join together and send the signal that leaseholders do not have to pay a penny. If the Government believe that Lords amendment 4B is somehow flawed, let them come forward with an amendment that is satisfactory and will result in the key outcome: not requiring leaseholders to pay.
Building Safety
Neil Coyle Excerpts(4 years, 9 months ago)
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Robert Jenrick
I honestly do not know. The Scottish Government have, as far as I am aware, done nothing with the very significant sum of money that the Chancellor has given them through the Barnett consequentials process. I am not aware of what the Welsh Government are doing. I think those questions are better directed to the Scottish Government and the Welsh Labour Administration.
Neil Coyle (Bermondsey and Old Southwark) (Lab) [V]
The Secretary of State has said that his mission is safety and fairness for leaseholders. How do today’s proposals protect a leaseholder who has been paying £50 a month but still has a large loan outstanding on their home at the point of sale, because of the cost of removing unsafe cladding? Is the truth not that the Secretary of State has failed to deliver on his promises of fairness, and that he is choosing to leave thousands of leaseholders facing massive costs?
Robert Jenrick
The hon. Gentleman, for whom I have great respect, misunderstands the scheme that we have just announced. For buildings of between four and six storeys, where the risk is much lower, leaseholders will have the opportunity, if they wish—there will be no compulsion—to take advantage of the financing scheme. That loan scheme financing arrangement will sit with the building, not with the individual. It will not affect the individual’s personal credit rating, and it should not have a material impact on the value of their property. It will be akin to paying somewhat more on their service charge every month. As I say, it will be capped at £50 a month, which is similar to the average service charge. Of course, in many buildings the service charge is already far in excess of that.
Unsafe Cladding: Protecting Tenants and Leaseholders
Neil Coyle Excerpts(4 years, 9 months ago)
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Neil Coyle (Bermondsey and Old Southwark) (Lab)
Happy birthday, Madam Deputy Speaker. I congratulate those on the shadow Front Bench on prioritising this debate in the absence of sufficient attention or pace from the Government. I enter into the spirit of today’s debate mindful of the cross-party support for amendments aimed at addressing the issue, and in the hope that we will see that support reflected in today’s vote. Frankly, everyone affected has waited far too long.
In Bermondsey and Old Southwark, more than 60 blocks of homes and thousands of people are affected. People have often bought in good faith and then been told that their home may not be safe. They have since been left in limbo. They include NHS worker Lucy Grayston, who attempted to sell her L&Q flat. A buyer was found, and Lucy, who was five months pregnant, moved out. The sale fell through due to an external wall survey issue, and she is now having to pay for two properties. They also include William Lecky, who celebrated the birth of his new baby with his wife and had plans to relocate to Scotland. They are now trapped in a one-bed property in Borough that they are unable to sell until this matter is resolved.
This could have been sorted by now, with the right political will and wherewithal, but it has not been, despite the Government’s promising 15 times to protect leaseholders. My constituents are still waiting and some face extortionate costs while they do so. One block is paying £40,000 a month for a waking watch, which is well above average and in no way a reasonable fee. I have asked the Government many times about the waking watch relief fund, and I am glad that they have finally published the eligibility criteria, but I hope Ministers will now answer my other questions on the fund. When will applications be assessed, and when will those funds begin to be distributed? The people waiting for news cannot wait any longer. They cannot sell their homes, they cannot reinsure and they cannot remortgage. Some of the people affected have also lost their job due to covid. They cannot afford their existing mortgage, and speed is of the essence. For many people, sadly, all they have seen is delay, and Government guidance has even contributed to the problems they face. For example, homeowners in Sudrey Street, Leathermarket Street and Monmouth Court are all being asked to provide EWS1 forms, despite the height of their blocks not reaching the threshold.
Last year, I raised concerns on behalf of constituents affected and asked Ministers to provide new guidance or clarify existing guidance, given the misapplication of the 18-metre rule. Today, I again ask Ministers to prevent misinterpretation, to ease pressure on the system and to take many of the people affected out of coverage altogether. Today’s motion would address many of the concerns of so many people affected and I hope that it is successful in the vote, to ensure that the thousands of my constituents who are experiencing these huge concerns can begin to plan their lives again.