Housing

Rupa Huq Excerpts

Tuesday 15th December 2015 Commons Chamber

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

In 1892, Mr Pooter, from “The Diary of a Nobody”, was the archetypal suburban London Mr Average, but on current figures he could not afford today to live where he did. In 2009, The Spectator said his home would be worth £1 million and that his clerk’s salary would be £40,000. In Ealing, a typical suburb, the figures are astronomical and are placing an average suburb out of reach for the average Joe and Josephine, for whom suburbia was intended. Last year, average rents were £1,400. According to this year’s Land Registry figures, a terraced house in W5 now costs £781,000.

The Government’s housing record is one of abject failure, on homelessness, homeownership, house building, rents and, crucially, supply. Shelter, an objective charity, says that channelling existing public resources to build homes that only those on high incomes can afford will result in 180,000 affordable and low-rent homes not being built or sold. That is as a result of the changes in the Housing and Planning Bill. The goalposts have been moved several times. In respect of rents, “affordable” can now mean up to 80% of market rents, which is just not realistic.

These subsidised starter homes have been trumpeted, but they are a non-starter for people in my constituency. In Ealing, average earnings are about £34,500. If someone wanted a shot at just a one-bedroom starter home in W13, they would have to earn £73,142. In W4, it is even worse: £90,501. At first sight, the 1% rent reduction looks good, but it will have massive unintended consequences. I went recently to the reopening of the YMCA foyer in my constituency. It has sunk all its assets into it, based on a business plan of rising rents, and it now expects to be completely sunk. It was a massive oversight not to have exempted supported housing.

There is so much I could say about the mandatory “pay to stay” policy. The figure of £40,000 means two incomes of £20,000, which is not a princely sum in London. It is an attack on aspiration, which Conservatives keep talking about. Our capital city is being hollowed out, as we pay ever more for housing yet become ever more insecure at the same time. The Spectator says that Holloway is now becoming banker land. I fear that not just Mr Pooter but many others on average and modest incomes are being forced out of London, which is being left to bankers, oligarchs and off-plan buyers, whose playground our capital is becoming.