Housing Supply Debate

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Housing Supply

Nick de Bois Excerpts
Wednesday 9th July 2014

(10 years, 4 months ago)

Commons Chamber
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Nick de Bois Portrait Nick de Bois (Enfield North) (Con)
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It is appropriate that I should follow another London Member, the hon. Member for Hammersmith (Mr Slaughter). At the risk of being criticised—we often rightly are—for being London-centric, London does face specific challenges, so I would like to spend a few minutes talking about that subject, which is close to my constituents’ hearts.

It is worth setting out some context. Since 2001, London’s population, and therefore the demand for housing, has increased by 1 million. That is equivalent to creating a new borough every two and a half years, such is the speed of growth. That means we have to respond to the challenging housing needs with innovation and imagination. To borrow the words of the former Housing Minister, the right hon. Member for Greenwich and Woolwich (Mr Raynsford), who I think struck the right tone when talking about the failure over 30 years, we also need to find some common ground, particularly if we are to deal with some of the challenges in London.

As the Mayor has rightly identified, if we are to catch up and keep pace with demand in London alone, we will need to provide about 49,000 accommodation units every year for the next 10 years. To put that in context, that has not been achieved since 1930, an age when building on the green belt was not an issue and we did not face the challenge of having to develop brownfield sites, which I believe offer a big opportunity in London. It is probably accurate to say that we have been building, on average, about 20,000 units a year over the past 30 years.

We now have a situation, as Members on both sides of the House have rightly pointed out, in which rents and the cost of purchase in London are so disproportionate to the rest of the country that supply is clearly the key. Let us face it: we cannot simply wave a magic wand, whether at local government level, mayoral level or here, but we have to pull whatever levers we have at our disposal to try to help drive the supply solution. I have looked with interest at some of the proposed measures for doing that, and at one in particular, which I will speak about shortly—the housing zones, which were recently announced in my constituency.

So tricky is the problem we face that we are looking at more imaginative ways to provide more housing. The Mayor’s land and development programme is effectively bringing forward surplus public land owned by the Greater London authority to regenerate areas and help provide housing. About 60 live sites are already under way, which will hopefully deliver at least 40,000 homes over the period of their development. There are 20 housing zones—I will outline this later for the benefit of the House—which are ambitious plans to create 50,000 much needed homes. It is crucial, as I think we all agree, to target those on low and middle incomes who are seeking to buy affordable homes as well as those seeking to rent.

A considerable number of empty homes in London need to be brought back into use. Between 2008 and 2012, around 5,000 empty homes were brought back into use, and I am sure that we can do more. We have more funding to bring another 1,100 empty homes back into use. In fact, there are now about 25,000 fewer empty homes in London than there were in 2008. Supplying new homes is crucial, but so is work on decent homes—restoring the stock we have to make them liveable—and restoring empty homes. In my borough we have benefited from £44 million, which we are halfway through spending between now and 2015, just on decent homes alone.

Andy Slaughter Portrait Mr Slaughter
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I wonder whether the hon. Gentleman will address the point that the Minister would not deal with. The Mayor’s definition of affordable is an income of up to £80,000 for larger properties and up to £66,000 for smaller properties. I realise that that is a maximum, but the hon. Gentleman will have seen the story in the London Evening Standard this week about housing associations such as Notting Hill, which frankly is a disgrace. Pitching the target at those levels, they are demanding for their affordable housing a minimum income of £66,000 in order to qualify.

Nick de Bois Portrait Nick de Bois
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The hon. Gentleman will forgive me if I did not quite catch the whole point, but I think that my hon. Friend the Member for St Albans (Mrs Main) made the point about the steep variation in what is an affordable home. Some regard it as just 80% of market value, which is a lovely description and quite enticing, but we know that that still faces a lot of challenge. However, I welcome many of the Government programmes, such as Help to Buy, that will help to overcome the challenges, particularly on deposits, which are crucial. I happily declare an interest in that regard, having had to help finance one of my daughters when she bought a home. I was lucky enough to be able to do that, but many people are not. The Help to Buy scheme was not around at the time, but I have two more daughters to go, so who knows—I am in trouble now.

I will briefly mention the housing zones. I am grateful that the Mayor and the Chancellor—local government working with national Government—have come together to launch a housing zone scheme across London. They will create 20 zones where home building will be accelerated by working in partnership with boroughs, landowners, investors and builders—all the key stakeholders brought together. They are based on a “something for something” deal, not just a handout. That will enable the GLA to act in concert with the key boroughs and stakeholders so that we can focus resources on sites that will be expensive to redevelop, such as brownfield and former industrial sites. With such policy interventions, we can either drive and fast-track developments that are planned at the moment but facing the hurdles we have all talked about, or stimulate new plans and new sites.

In order to ensure that we see progress on housing zones as quickly as possible, the Government will grant the Mayor the powers he needs—so-called mayoral development orders—to remove planning obstacles. That will accelerate the much needed construction in the zones. The site in my constituency has not, I hasten to add, been formally approved yet. The London borough of Enfield, in concert with Network Rail, has already secured development of a third track up to Angel Road. The development will hopefully be called Meridian Water and be on the very important line between Liverpool Street and Cambridge. That crucial ingredient helped to stimulate developers to show their interest and invest in a site that was once industrial and had gasworks on it, which is very expensive to redevelop. The bid that will be going in for Meridian Water will be effectively to seek assistance in site remediation, some land acquisition and decentralising energy infrastructure.

I will draw my comments to a close, Mr Deputy Speaker, as I can see that that is something you clearly wish me to do. The point is that that fast-tracking will enable us to deliver 5,000 homes at a relatively fast speed, if the scheme is approved, which I am optimistic it will be. That will be critical in achieving the overall challenge that London faces. If it is repeated in 20 other zones, that will make a significant difference. I commend those steps to the House.