Social Housing and Regulation Bill [ Lords ] (First sitting)

Sarah Owen Excerpts

Tuesday 29th November 2022 Public Bill Committees

[Siobhain McDonagh]

I support the amendments tabled by my hon. Friend the Member for Greenwich and Woolwich. At the moment, we have two things going on. First, we have exempt accommodation, where private property developers access vulnerable people and place them in houses in multiple occupation, cream off large amounts of housing benefit and provide no support to those individuals. They are exploited and left until the police, in many cases, or mental health services come along and take them away. Secondly, neighbourhoods are completely terrorised by people who are vulnerable but unable to control their behaviour, and absolutely nobody regulates that.

I represent a suburban south-west London constituency. Do not get me wrong; properties are not cheap, but they are cheaper than in other bits of London. Companies such as Stef & Philips are exploiting wholesale every loophole and making large amounts of money to bring fear and distress to neighbourhoods and to the residents who occupy those premises.

Last week, a lady who lives in the Pollards Hill area came to my surgery. The 1930s semi-detached house next door to her had been converted into an HMO for five vulnerable tenants. There were no bins to collect the rubbish and no facilities to ensure people could live adequately. She lives next door and has cancer. One of the residents in that home had pulled a knife on her only the day before, and all the other vulnerable tenants in the house had to stay locked in their rooms to avoid that individual. Stef & Philips are making hundreds or thousands of pounds every week from that property.

In Ravensbury, another ward in my constituency, on Malmesbury Road, the same company had a man who was so vulnerable that the police raided the property and had to withdraw because he had a crossbow and they needed firearms support. The whole street was blocked off. That is St Helier estate, for any hon. Members who may know it. It is a beautiful local authority estate built after the first world war to provide homes fit for heroes. The house is beautiful, but not as an HMO for five vulnerable people. People in the street are terrified. Who knows how terrified the other residents in the property are? The company’s balance sheet goes up and up while people go out to work to pay ever-higher tax rates to sustain that company in exploiting people.

[Sarah Owen (Luton North) (Lab)]

My hon. Friend is making excellent points. That is the human impact of the lack of regulation and enforcement on rogue providers that are making millions out of very vulnerable people. Their impact is felt not only by the individuals who are being harmed, but by entire communities. Does she agree that although we do not want regulation for regulation’s sake, we need not just regulation but enforcement for those who are getting away with this scot-free right now? We do not just need legislation; we need the ability to enforce and act.

[Siobhain McDonagh]

I absolutely agree with my hon. Friend. If there is no regulation, this will just grow and grow. As mortgage interest rates go up and business for buy-to-let landlords becomes less profitable, more people are going to look at providing this style of housing, because they can exploit the housing benefit system. If that is not happening in the constituencies of all the hon. Members of this Bill Committee, it will be coming to them soon.

--- Later in debate ---

[Siobhain McDonagh]

I believe that the regulator should have power to look at this area of housing. It is all very well for councils to get more powers, and I would be the first to agree with that, but many councils already have a lot of powers that they cannot use because they cannot afford to. They do not have access to social housing units. They do not have access to the level of environmental health officers that they need. They do not have access to the number of planning officers they need in the area of planning enforcement.

[Sarah Owen]

My hon. Friend hits the nail on the head. The pilot work that the hon. Member for Harrow East just spoke about is fantastic. We will take whatever we can from that and learn, but the point is that the councils and authorities that did that work had to have extra resources to use their existing powers. This is not just about legislating and enabling local authorities to have more powers; it is also about them having the funds and resources to use those powers.

[Siobhain McDonagh]

Absolutely, and I know the hon. Member for Harrow East will be aware of how few London councils ever prosecute anybody under their current powers. It is about regulation, but it is also about local authorities being able to use their powers. In the light of the recent Budget, local authorities’ powers will become even less well used if their finances continue to be squeezed.

Let us go back to Aves in Pollards Hill and Longthornton. I met the regulator and spoke about Aves and my concern about the exploitation of tenants. The regulator said to me, “We completely agree with you, but there is nothing we can do. We do not have the power to do anything.” Either we give the regulator the powers and do something about it, or we go on talking about it in a well-meaning way while the problem exponentially grows. I, for one, want to see some action rather than none.