House Building: London

Rachel Blake Excerpts

Wednesday 5th November 2025 Westminster Hall

[Mr French]

I am going to make a bit of progress, because I have been up and down quite a lot, and I am not fit enough to keep doing it.

Under this Labour Government, more and more first-time buyers are unable to afford a home, and they are the primary market for new builds in London. Over 3,700 new homes are sitting unsold. This is not a market where developers will build more. The Labour Government were wrong to slash first-time buyers’ stamp duty relief, costing first-time buyers up to £11,250 more in taxes. That is why the Conservatives’ plan to abolish stamp duty is the right one, and the Labour Government must rule out further market-suppressing tax rises.

Developers also face excessive policy costs—section 106 payments, community infrastructure levy payments, mayoral community infrastructure levy payments, carbon offset levies, biodiversity net gain requirements and the new building safety levy. The collective cost of those demands makes it too expensive to build. To make matters worse, on top of the burdensome London plan, the well-intentioned post-Grenfell Building Safety Regulator is now delaying building in the capital. It has rejected 70% of building safety designs, and some completed projects have had to wait 18 months for approval before people can move in.

[Rachel Blake (Cities of London and Westminster) (Lab/Co-op)]

I am grateful to the hon. Member for giving way. I have listened carefully to his analysis of the problem—I have waited to hear the full analysis—and I would be grateful for some reflection on why the deregulatory proposals he is making were not brought forward under the previous Government when there was clearly an opportunity to do so.

[Mr French]

I appreciate the argument the hon. Lady is trying to make, and I am about to come on to some suggestions to hopefully help the Government.

The mayor has had strategic planning powers in the capital for nine years, and he was awarded £9 billion of affordable homes money by the previous Government. We have to be clear about where blame in the capital lies.

[Rachel Blake]

I am listening to the hon. Gentleman’s argument about strategic planning, but I believe every Member present, including myself, has substantial experience in bringing forward new genuinely affordable homes. We all know that it requires finance and real delivery focus, particularly in local authorities. Can the hon. Gentleman reflect on his time in local government and how many genuinely affordable council homes were brought forward in that period? Obviously, the ability to deliver from a council setting is a key part of solving this important challenge for London.

[Mr French]

Again, I appreciate the point that the hon. Lady is trying to make. I have already outlined the Bexley position in response to the hon. Member for Bermondsey and Old Southwark (Neil Coyle), so I do not need to go back into that—Bexley has been delivering affordable homes.

What can be done now? I am afraid that the recent measures announced by the Government and the Mayor of London—without consulting London’s 32 boroughs—to unlock house building are too little, and potentially too late. They will give developers only temporary, targeted relief from the community infrastructure levy on brownfield sites, but not from the more expensive mayoral levy. The changes to the affordable homes targets do not go far enough; at 35%, demand is still placed on industrial and public land, acting as a blocker on these sites that could host thousands of homes. While a temporary fast-track route for homes that provide 20% affordable housing is welcome, it is a minor amendment to a system that has ultimately failed.

More concerning are the proposals to give the Mayor of London the power to call-in applications for 50 homes or more and for developments on green belt and metropolitan open land. It is undemocratic to withdraw planning powers from local communities. It will backfire, eroding the little remaining public trust in the Greater London Authority, and it will confirm to outer Londoners that Labour’s plan is not to unlock building on well-connected brownfield sites, but to concrete over our precious remaining countryside.

--- Later in debate ---

[Rachel Blake (Cities of London and Westminster) (Lab/Co-op)]

It is a pleasure to serve under your chairship, Mr Mundell. I commend the hon. Member for Old Bexley and Sidcup (Mr French). Although we probably disagree on both the analysis and the solutions, I recognise his passion for his constituency and his concern about the issue in London.

In Cities of London and Westminster, which I am proud to represent, we recognise the appalling cost of temporary accommodation. As the hon. Member for Harrow East (Bob Blackman) said, it costs £5 million every day. The eye-watering average price of a home in my area is nearly £1 million. Given the average prices that the hon. Member for Bromley and Biggin Hill (Peter Fortune) spoke about, we are looking at average private monthly rents of £3,221, so the housing crisis is felt acutely right here in the very centre of London.

We have heard powerful contributions about why this issue matters so much, but I want to reflect on the drivers of this debate: the green belt, greenfield land, the brown belt, the grey belt and brownfield land. Only 6.7% of the green belt is in an area that can be developed for housing. In fact, since 2013, just 0.2% of green-belt land has been brought forward. In London, 99.6% of development takes place on brownfield land. That reflects the London that we all know and love, and is one of the real positives of strategic planning in our great city.

However, we face challenging circumstances in converting planning applications into permissions, and permissions into starts on site. We have heard some really compelling contributions about that. We need to focus on stability in the sector, which is critical for ensuring development and delivery. We must recognise the important role of the £39 billion that the Government put into genuinely affordable homes. We need a stable rent-setting system that will enable councils and housing associations to plan, and a stable economy with interest rates going down so that people can have confidence that they will be able to get on to the housing ladder.

I will now focus my remarks on buy-backs. I welcome the contribution from my very respected hon. Friend the Member for Hackney South and Shoreditch (Dame Meg Hillier) on how effective buy-backs can be in solving inner London’s very particular housing crisis. I commend Westminster city council for investing £20 million in buying back 45 former council flats earlier this year. This is something that we can do immediately. We have a short, medium and long-term challenge in recognising London’s and the UK’s housing crisis. Ifirmly believe that this Government, together with the Greater London Authority’s right to buy-back programme, can enable 1,200 homes to be brought into council ownership, and that will make a tangible difference to lives this week, this month and in the years going into the future.

The new programme brought forward by the Greater London Authority, the council homes acquisition programme, is aimed at helping local authorities to buy back 10,000 homes within just the next few years, and that can be supplemented with local authority housing funds. It is a really effective and immediate means of providing people with the home that they deserve and bringing down our temporary accommodation costs. I would be grateful if the Minister updated us on the conversations he is having on that very topic, the immediate temporary accommodation crisis that we face in London, and how together we might move forward by investing in current council homes to tackle that issue.