Housing Supply (London)

Debate between Rupa Huq and Jeremy Corbyn

Wednesday 15th July 2015 Westminster Hall

[Dr Huq]

Yes, I will come on to some of the more noteworthy schemes in the constituency—just hang on in there and I will get to that.

I do not want to brand all private landlords as neo-Rachman rogues. According to the post-2015 election Register of Members’ Financial Interests, 142 MPs declared rental income under the category for land and property in the UK and elsewhere, in which annual rental income that exceeds £10,000 must be declared. That is 22% of MPs—just over one in five. There must be some decent ones among them.

It seems illogical that nine out of every 10 pounds spent on housing in this country goes on housing benefit, including for properties that went into private hands under the right to buy and are now rented back to councils as emergency accommodation to combat homelessness, which we have seen manifested in mushrooming night shelters, soup kitchens and food banks across the capital. Although red tape is often condemned and flexibility championed, I am proud—despite Labour losing the election—to have stood on a platform of reining in the violent price rises that lead to instability for tenants. We also need minimum standards, not only for tenants but for the letting agencies that can charge sky-high fees, in the hundreds of pounds—I have never understood what for; a couple of references, if that.

Renting is no longer just a transitory stage for people in their 20s; it is the new normal, and it is becoming routine for people further up the age scale, including many professionals in my constituency. A new staffer started with me the other day. He is in his 20s and on good money, but he is sharing 12 to a house, with a shared sitting room and kitchen. At that stage of life, “Who Stole My Cheese?” should not be a way of life, and there are older people than him in the same situation.

I am now in my 40s and first bought, pre-boom, in the 90s, but it seems that people a bit younger than me or who were not as quick to buy have missed the boat. That includes people with kids. I see them every day on the school run, and they are quivering at the prospect of the landlord selling off the property any minute, meaning that they will have to move on and find new schooling for their kids. For the people who did not buy, it seems that the generations before have benefited from rising equity and pulled the ladder up behind them.

In his new book, “Injustice”, Professor Danny Dorling says that in 2015, the combined value of houses and flats in the London boroughs of Kensington and Chelsea, and Westminster is worth more than the entire annual product of Denmark, the world’s 35th largest economy. That is a stark reminder of how London is different, and that applies to the suburbs too. The road where I grew up was not built for rich people. Opposite us lived Mr and Mrs Cotter—this was the ’70s: we did not know people’s first names—a postman and a dinner lady with two kids. Yesterday, I googled our old postcode, W5 1JH. No properties were for sale there, but all the homes on the neighbouring Greystoke estate, which are largely semis, were worth slightly plus or minus £1 million. There is no way that a postie and a dinner lady could afford to live in that road now—indeed, no public sector worker could afford any house in any part of my constituency on the open market.

The other day, I met our local chief superintendent, who told me that 60% of Met officers now live outside the M25, far removed from the communities they serve. Every school I visit locally tells me that it can get young teachers in to train, but as soon as they want to settle and put down roots, they are lost to Slough or beyond, because housing in west London is too prohibitively costly for them to stay.

The current Mayor of London, the hon. Member for Uxbridge and South Ruislip (Boris Johnson), is notable by his absence—where is he when you need him? I have had my brushes with him, it must be said, but it was he who claimed that not only property prices but benefit changes in this city were causing “Kosovo-style social cleansing”. Those are not my words; they are his. What steps is the Minister taking to reverse the trend of a growing proportion of London’s key workforce, be they in public services or other employment, being left behind and pushed out?

In an attempt to bring down the housing benefit bill, last week’s Budget effected a raid on housing associations and registered social landlords, whose properties look set to be sold off and whose revenues will be raided, stopping them from building more houses. The little social housing that we have will dwindle, and the policy is being funded by the sale of the so-called most expensive social housing properties in those boroughs. Were that to happen, it would lead to the total decimation of all housing stock in most of zone 1.

[Jeremy Corbyn (Islington North) (Lab)]

Is my hon. Friend aware that my borough of Islington has a good record of building new council houses to a high standard? We have just completed an excellent development on Caledonian Road of 25 first-rate flats. If the Government’s policy goes through, they will all be sold and not one person on the housing waiting list or in housing need will get them. They will just be sold on to the private market and rented out privately. Does she agree that that is a scandal?

[Dr Huq]

I thank my hon. Friend for his intervention. It sounds like good things are being done in Islington, but they are being stifled by central Government. If only everywhere could be like Islington. With his leadership bid, maybe we could roll out the Islington model more widely.

A residential research report from JLL states that a fifth of women and a third of men aged from 20 to 34 are still living in their parent’s homes in London. They have been termed “the boomerang generation”, and there is academic research showing that this is causing redefined roles between adults and identities and intergenerational conflict, because it creates a dependence model. Before becoming an MP, I was a lecturer at Kingston University, and a lot of people among the student body there were not even boomeranging away from the parental home to boomerang back to it. The combination of tuition fees and the economic slowdown means that they do not even leave to pursue their education in the first place, so we are starting to resemble France, where people tend to stay local for university. Lord Kerslake has stated that

“Londoners are missing out on opportunities: delaying having families, being forced to rent for longer and many are locked out of home ownership completely.”

Housing is not just about bricks and mortar; it is about resilient, ideally mixed communities, and its affordability is key to unlocking this city’s full potential.

I was asked earlier about developments in my constituency. On the eastern edge is Old Oak, the super-development zone that we are promised, with 24,000 dwellings coming on stream, but most of these properties will be out of reach for most of my constituents. Can the Minister say what is being done to change the definition of affordability from the current Mayor of London’s reckoning of it as a whopping 80% of market rate?

The word “crisis” tends to be one of the most overused in politics, but right here, right now in this city, it is justified. It is not hyperbole; it is reality. London’s population is set to expand to 10 million in the next 15 years. The suburbs were once seen as the solution to our social ills—combining the convenience of city working with the values of a rural idyll; positioned between concrete jungle and village green—but even these districts at the edge of our city are now suffering with out-of-control house prices, and they are spawning these unsafe beds in sheds. The saying was meant to be that an Englishman’s home is his castle, not his shed—leaving aside the implied sexism of that phrase.

Only a massive house building programme can solve the problem, and that is something that, I will admit, successive Governments have failed to undertake. The coalition Administration concentrated on developer-led, private homes, rather than social housing and mixed communities. The cuts to tax relief for landlords in the Budget sounded laudable, but what happened to the promised neo-garden city movement? I do not hear so much about that anymore.

We need to ensure that we do not lose people to Slough, Milton Keynes and Luton. We need to reverse the brain drain away to other global cities, which will see this city hollowed out by all the Old Oaks of this world and other developments in my constituency. Indeed, there is one by the railway tracks at Ealing Broadway—Dickens Yard—where new two-bedroom flats cost £1.2 million. Needless to say, the lights are always off, because absentee purchasers snap them up as investment vehicles rather than as a roof above their head. I imagine that the Minister will say, “It’s all devolved in London,” but will he agree to include in his next housing Bill a power to let councils ban overseas and off-plan sales, to ensure that first-time buyers in London at least have a chance?