Council Housing

Siobhain McDonagh Excerpts

Tuesday 27th March 2018 Commons Chamber

[Matt Western]

Yes, the figures do show that, but if one drills down into the number, one will find that they were provided by Labour authorities, and that is despite the borrowing cap that has been placed on them. Without that cap, to which I shall refer, far greater supply would be available.

Despite a promise that there would be one-for-one replacements, in some areas only one in five homes sold under the right to buy has been replaced. A new kind of publicly funded housing was introduced. Ministers branded it “affordable rent”, with rent set at up to 80% of the market price and thereby directly linked to often unaffordable private market rents.

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

I feel sure that my hon. Friend is likely to come to this point, but does he agree that the term “affordable rent” is an offence to the English language, because affordable clearly does not mean affordable if it is 80% of market rent?

[Matt Western]

I thank my hon. Friend for her informed intervention. My very next sentence was going to address that point. If something is already expensive, making it 80% of expensive is still expensive. That is where we find ourselves.

--- Later in debate ---

[Matt Western]

My hon. Friend is, of course, absolutely correct. There is a suppression of building low-cost rental properties by local authorities. Those local authorities know that there is a need, and we must allow them to have that responsibility. Preventing them from supplying that housing has had a huge social and economic cost in our communities.

[Siobhain McDonagh]

Does my hon. Friend also agree that preventing councils from building housing means that it is unlikely that the Government will achieve their target of building 300,000 homes a year? The last time those figures were reached was in 1969 when both councils and housing associations were building, as was the private sector.

[Matt Western]

I thank my hon. Friend once again. Not only is she very well informed, but she is very experienced in this matter. She is absolutely right. The high levels of housing that we have needed over the decades have been delivered by a mix of providers. The crucial element that is now missing is the housing that is provided by local authorities. In its absence, we will never achieve the objective that has been set by the current Government. If we look through the decades, we can see how, in the post-war periods of the 20s and then the 50s and 60s, the local authorities were allowed to ensure a good supply of housing, which they recognised was needed because of the constraints in the private sector.

It is worth looking at this matter in the round. Over the past 10 years, the overall supply of new homes has seen an under-delivery of at least 80,000 to 100,000 homes a year. The result is that the UK faces a desperate shortage of at least 1 million homes. The Royal Institution of Chartered Surveyors now forecasts that we will reach a shortage of 1.8 million low-cost rental properties—that is just low-cost rental properties—by 2022.

All areas of the UK need housing, both public and private, but there is particular and desperate need for low-cost housing for rent. In my constituency there are more than 2,400 people on the housing waiting list. Homes are being built, but not enough are under construction to satisfy this social need. Once again, it is the wrong mix of housing that is being delivered. So, what is the answer? Of course, opinions vary, and the solutions presented to the electorate in last year’s election showed clear blue water between the main parties.

Recognising the critical importance of the housing shortage in its 2017 manifesto, Labour committed to the creation of a new department for housing. Importantly, on house building, we promised at least 1 million new homes over the next Parliament, which, as we now know, can be a very short time, and a new target of 250,000 new homes a year being built by 2022. Of those, at least 100,000 per year, or 40% minimum, would be genuinely affordable homes to rent and buy per year, including the biggest council house building programme in more than 30 years. If I am honest, I would personally like to see a lot more.

Subsequently, at the autumn party conferences, much time and debate were given over to this challenge, and the Prime Minister announced that she was committed to delivering 300.000 new homes. Specifically, she stated that £2 billion would be committed to helping the delivery of affordable housing, but, of course, that equates to just 25,000 properties. Clearly, housing is rising up the political agenda, and it is now one of the biggest domestic issues that we face.

My contention is that we now face a social crisis that is without precedent in the past 50 years. We have thousands of families without their own homes, waiting desperately for accommodation. We have record numbers of people rough sleeping. In my constituency of Warwick and Leamington, we have the highest number in terms of people per 1,000 of the population in the whole of the west midlands. Over the decades, the overall supply of housing has not delivered. Now must be the time to change that.

I am convinced that council housing was, is and will be the answer to our housing crisis. The Government need to release local authorities from the bounds of their borrowing cap and allow them to use their pension funds to invest in their communities. The use of public land holds the key to unlocking the potential to deliver this. Simply selling public land to the highest bidder will not solve anything. Land is the fundamental denominator in the cost equation of UK housing, and the planning process surrounding it needs urgent, radical reform.

Building more council housing solves at least two key problems: first, the lack of genuinely affordable housing for those who cannot afford market rents; and secondly, the chronic under-supply of housing that is the root cause of our housing crisis. As I said, there is a lack of genuinely affordable housing, with historically high waiting lists of 1.16 million households nationally. The easiest way to help those in need is to provide council housing. If we fail to do this, the result will be increasing homelessness, which we have witnessed more than doubling nationally since 2010. Another, less frequently made, argument is that building more council housing is the key to boosting overall supply, thereby addressing the root cause of the UK’s housing crisis.

The Government’s own target is to build 300,000 new homes each year, but the number of additional homes delivered in 2016-17 was 217,000, falling well short of their target. Although last year was the first year since the financial crisis in which over 200,000 homes were added—and I do applaud that—it was not enough, and the wrong mix of homes is being built. It is now stated that 300,000 houses would just about keep up with demand. Even if the Government hit this target, it is unlikely to bring down house prices and rents significantly. Also, in order to deliver those 300,000 houses, we need all providers to be supplying into the process.

History provides important lessons. It is no coincidence that house building rates reached their post-war peak during the 1950s and ’60s, when successive Governments were committed both to private sector and public sector house building. At the time, housing was plentiful and house prices stayed low, so that many on low to average incomes could afford to rent or buy their own homes. The success of the ’50s and ’60s shows that prioritising council housing need not be a partisan issue. Harold Macmillan, the Conservative Housing Minister from 1951 to 1954, initiated some of the greatest council house building programmes in order to meet his target of building 300,000 homes a year. During those Macmillan years, local authority housing made up 87%, 84%, 77% and 69% of completed dwellings per year respectively. This compares with just 1% in each of the past four years under this Government—or about 20% each year if we include housing associations as well as councils. Importantly, as I have illustrated elsewhere—I want to give credit where it is due—post-war Conservatives recognised that the public sector must build the homes that the private sector will not build during a housing crisis, which is where we find ourselves.

So why will this Government not do that? I would like to believe that it is not simply ideology that says that the state is bad while the private sector is good and will solve all our problems, because this crisis is holding back our country socially and—I cannot stress this enough—economically. I believe that there is a duty on one-nation Conservatives to come forward and urge the Government to commit to a mass council house building programme if they are serious about solving our housing crisis. In this light, I have recently relaunched, with my hon. Friend the Member for Stroud (Dr Drew), the parliamentary campaign for council housing. I invite all MPs to get involved with this cross-party initiative that aims to see more council houses being built.

Central Government policy currently acts as a disincentive for councils to build more council homes: first, because, there is next to no funding from central Government for the provision of council housing; and secondly, because there has been just £5.9 billion gross investment in social housing in 2015-16 compared with £10 billion in 2009-10, and the vast majority of this will be directed to housing associations.

This compares with the £22 billion forecast to be spent on housing benefit in the 2017-18 financial year, which is a direct result of not building the housing we need. Is that not ironic? Surely the Government would rather not line the pockets of landlords in the private sector, but prefer to invest long term in the council housing that we need. Is that not pragmatic? The additional £2 billion investment announced by the Prime Minister at the conference was welcome, but it will only provide a few thousand homes by 2021, including the affordable homes that can be anything up to 80% of the market rent. The money is not ring-fenced for genuinely affordable social rents.

As I said earlier, the borrowing cap stifles a council’s ability to build where councils can currently only borrow up to a certain amount to invest in council housing. I welcome the announcement in the Budget that the Government will raise the cap by a total of £1 billion for areas under high affordability pressures, but more needs to be done. If the Government accept that the cap stifles building, why will they not lift it entirely for all areas, as has been done in Scotland?

--- Later in debate ---

[Dominic Raab]

I wish a happy birthday to my hon. Friend’s housing association, and I commend housing associations and local authorities up and down the country that have the ambition to get the homes built. We will do our bit as central Government, whether that is on planning reform or infrastructure funding, but we need local authorities to be up for this challenge, so I commend him for the work that he and his housing association are doing.

Since 2010, we have delivered over 357,000 new affordable homes, including over 128,000 homes at social rent. The hon. Member for Warwick and Leamington will know that, between 1997 and 2010, the number of social homes for rent fell by 420,000 and waiting lists rocketed by 70%.

[Siobhain McDonagh]

Would the Minister address the issue of what “affordable” means? What would he say to my constituent, Tracey, who could not move into a brand new London and Quadrant property where she needed it? She said, “Siobhain, I can’t move in there. Me and my partner work but we can’t afford the £1,000 a month rent.”

[Dominic Raab]

I say to the hon. Lady and her constituents across the board that we are absolutely restless to create more affordable homes so that they can realise their dream of home ownership. I encourage her and her party not to vote against cutting stamp duty for first-time buyers. I do not think that doubling council tax would be the answer, but I share her aspiration to help precisely those people to realise the dream of home ownership. We will be straining every sinew to make sure that that happens.

That is why we have announced a package of measures to help local authorities to build additional affordable homes for their local communities. The autumn Budget provided a further boost with the announcement that local authority housing revenue account borrowing caps will be increased by £1 billion, as was mentioned both by the hon. Member for Warwick and Leamington and the hon. Member for Stroud (Dr Drew). That is good news; it is something on which we are making progress. Local authorities will be able to bid for increases in their caps from 2019-20, up to that total of £1 billion by the end of 2021-22. Again, it will be for local authorities in areas of high affordability pressure, where authorities are ready to start building, but the decision should be welcome news. I hope that the hon. Member for Warwick and Leamington will take that back to his local authority.

The increase shows that we have listened to local authorities and hon. Members across the House who asked for it. It will come on top of the £3.5 billion-worth of borrowing headroom that is already available to local authorities across England. We will release information shortly about how councils can apply for an increase in their local housing revenue account cap. I am keen to see local authorities, wherever they are across the country and irrespective of where they are across the political divide, take up the opportunity to bid. I hope that local MPs will get on board and back them and that we can have a broader cross-party approach to this. I want to see that programme well subscribed, so I encourage all local authorities to think about how the additional borrowing can help them to deliver more council homes for their local community.

National Planning Policy Framework

Siobhain McDonagh Excerpts

Monday 5th March 2018 Commons Chamber

[Sajid Javid]

I thank my hon. Friend for all the work he has done on planning and all the advice he continues to provide. I can assure him that the formula we have set out today in the draft NPPF is no different from the one that was set out in the September consultation.

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

There are 19,334 hectares of unused, unloved, ungreen green-belt land around London’s train stations—enough to build 1 million homes. On the day that the Daily Mirror announced that £1.1 billion was spent on horrible temporary accommodation last year, is it not right that that land should be used to provide homes in the areas people want to live in?

Scottish City Deals

Siobhain McDonagh Excerpts

Tuesday 27th February 2018 Westminster Hall

[Mr Sweeney]

Glasgow City Council has been pressing valiantly to deliver projects such as the Glasgow airport rail link, but it has been thwarted at every turn by Transport Scotland. Why? Because municipal power has been progressively ripped out of city councils across Scotland by the Scottish Government. [Interruption.] It happened in 2008, when SPT was denuded of any executive transport planning powers. It has the capacity to do it.

[Siobhain McDonagh (in the Chair)]

Order. It is great to have so much enthusiasm in the room, but I remind Members that any comments should be made through the Chair.

[Mr Sweeney]

Thank you, Ms McDonagh. I shall conclude by putting two direct questions to the Minister. What will he do to ensure that city deals in Scotland are properly delivered and to ensure the deals bring the hoped-for benefits to the city regions? What discussion has he had with the Scottish Government about enhancing the Glasgow city region’s political power in concert with the city deal, as has happened in other UK cities to their benefit? Will he show us some of the leadership lacking in the Scotland Office by committing to raise those issues with the Scottish Government without delay?

Homelessness

Siobhain McDonagh Excerpts

Tuesday 27th February 2018 Commons Chamber

[Chris Evans]

Yes, I can. In my constituency of Islwyn and in Caerphilly, we have the quality home assurance, which is providing top-quality accommodation. We are ensuring that families do not have to stay in bed and breakfasts, and that they are given accommodation as soon as they become homeless. These are small steps, but they are making a large difference to people’s lives in my constituency.

It is not a good situation if people have substandard accommodation, and it is not even a good use of taxpayers’ money. Perhaps the only beneficiaries of such a situation are the unscrupulous landlords who charge extortionate rents for substandard accommodation and get away with it, with the taxpayer footing the bill.

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

May I inform my hon. Friend about a converted warehouse in the middle of an industrial estate in my constituency where four London boroughs are placing families? We estimate that the landlord of that premises gains between £1.2 million and £1.5 million of taxpayers’ money each year.

[Chris Evans]

Sadly, that is not an isolated case. There are a number of cases, especially in south-east England—I know some Members in the Chamber represent that area—of unscrupulous landlords cashing in on the misery and misfortune of homeless families. Something needs to be done by the Government, and we need to come down on these people like a ton of bricks.

The rapid increase in the number of rough sleepers and those in temporary accommodation strongly suggests that the Government’s approach to tackling homelessness is failing. Clearly there is a need for radical thinking on this matter, in line with the example set by Wales, that goes beyond undoubtedly well-meaning but ultimately vague and unrealistic promises.

The local housing allowance appears to be unfit for purpose in supporting families into private rented accommodation. Something should be done about the level of the local housing allowance or the cost of private rents—or both. Even more than concrete action on the LHA and the cost of rented accommodation, it would clearly make sense to increase the supply of social housing, as my hon. Friend the Member for Sheffield South East (Mr Betts) said.

It is well known that there is a severe housing shortfall in this country. It seems that relying on private developers to build the necessary units of housing is another Government strategy that is failing. Perhaps it is time for the Department to consider expanding the delivery of new units of social housing and ensuring that social housing remains under the ownership of local authorities. While I think that we can all agree that people should be able to own their own home, we can ensure value for taxpayers’ money only if social housing is not constantly sold off to the private sector.

While this is merely the tip of the iceberg in addressing the causes of homelessness, such measures would at the very least represent an important step forward in reducing the numbers of people who find themselves without a home. We have heard it many times in this place and elsewhere, but I will say it again: we live in one of the richest countries in the world, but it is clear that rising inequality has created a divided nation between the haves and the have-nots. It is almost like there are two countries, and this is expressed clearly and harshly in the number of homeless people. We can and we must act to reduce the extent of homelessness in this country. It is our duty to those people and to the 120,000-plus children living in temporary accommodation. Their families are suffering; they need our help now.

--- Later in debate ---

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

Who would choose to spend £845 million of taxpayers’ money on poor, shabby, terrible temporary accommodation that is often never checked by local authorities? I could tell the hon. Member for Harrow East (Bob Blackman) about all sorts of guidance on how local authorities should act, but none of that guidance is enforced or checked. Families are living in accommodation for which we would never wish to pay.

That £845 million could be better spent on thousands of modular homes—prefabs—that would allow people to be warm, dry and able to pay their rent. The estimates also show us that £72 million for affordable homes is to be handed back to Her Majesty’s Treasury by the Ministry of Housing, Communities and Local Government because the money is no longer needed.

Who in this House believes that that £72 million is not needed for affordable homes? If the Government do not feel they need it, they should give it to me. Let me spend it. I will spend it on 1,333 genuinely affordable modular homes. I can find the sites; I can suggest where we can do it. I promise the House that I can get £124 million spent by 1 April on real homes that people need.

We have so many of these debates, with lots of warm words and good intentions, but with not one house built. The time has come to get building. The time has come for each Member to pressurise their local authorities to release the land they are sitting on for social housing and to make sure that doing so is a priority—it currently is not for most local authorities. The time has come to talk about the green belt, most of which is not green and is not beautiful, and could be built on. There is enough land around London stations to build 1 million new homes if we chose to do it. The question is: do we choose to?

[Bob Blackman]

The hon. Lady reminds me that I piloted a Bill through this place to enable Transport for London to do precisely what she is asking for. Will she therefore join us in calling on the Mayor of London to do the job that he is elected to do and build new homes?

[Siobhain McDonagh]

I will do everything I can to encourage the Mayor to do that, but it is not just about the Mayor; it is also about the Government and local authorities. It is about how serious we really are about building homes, attacking shibboleths such as the green belt, and forcing local authorities to use the sites they have not to generate cash, but to build homes. It is about what our priorities are. Having sat in all these debates, I suggest that when it comes to it, we do not really want to do this. It can be done and it should be done, but it is up to us whether or not we choose to do it.

Housing, Planning and the Green Belt

Siobhain McDonagh Excerpts

Tuesday 6th February 2018 Commons Chamber

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

It strikes me that now is the time to act. We have had enough speeches and articles, and enough wringing of hands. What are we going to do to build more houses for the people who need them? In this country there are currently about 128,000 children in homeless families living in temporary accommodation, 86 of whom live in a converted warehouse on an industrial estate in my constituency. There is no single solution to this long-term problem. There are many, but I would like to suggest just three to the Minister that I think are practical, easy and quick, because this has to happen quickly.

First, we need modular homes. Let us go back to the prefab. We have wonderful designs for modular homes in my constituency, including the Y:Cube set up by the YMCA, which provides units at a cost of about £56,000 a year. They have a 60-year life, and incredibly low gas and electricity bills because they are so well insulated. They can be put on small sites, and because of the way in which they can be plumbed in and connected up, it is always possible to get the land back at a later date. This can be done. The private and the charitable sectors are actively doing this now, and we can do it on small sites because the buildings are constructed in a factory rather than on site. One company that I met a few months ago, Ilke Homes, can provide three houses per day once the foundations are built. That is a solution that can be provided quickly.

Secondly, at the moment, public bodies such as local councils and health authorities have an incentive to sell their sites to the highest bidder. Many councils of all political persuasions hide behind the need to get best value. I suggest to the Minister that we need to change the planning framework to ensure that public bodies give first preference to residential development involving social and mixed developments.

Thirdly, we have been talking about the green belt, but, as we all know, the green belt is not always the green belt. The term does not necessarily apply to areas of outstanding natural beauty, parkland or “lungs” in cities. It can apply to the tatty bits of land that it is hard to believe are part of the green belt. I was amazed to discover that there are some 19,334 hectares of undeveloped green-belt land around train stations in London. If we were to develop only those sites, we could build 1 million new homes. Rather than sticking to one side of the argument or the other—building private housing or building public housing—we need a solution and we need it now. I offer just three, but there are many more and I could have a chat with the Minister over a cup of tea at any time.

--- Later in debate ---

[Mr Bob Seely (Isle of Wight) (Con)]

I thank my hon. Friend the Member for Tewkesbury (Mr Robertson) for calling this important debate. I am delighted to follow my right hon. Friend the Member for Forest of Dean (Mr Harper).

Does the Minister know how many affordable houses were built for Islanders two years ago? Thirty-five. Would the Minister hazard a guess at the number of affordable houses built for Islanders last year? Thirty-four. Just 79 affordable houses were built in two years for an Island with a population of 140,000. This is utterly unacceptable. It is proof of a system in need of reform and, judging by the many voices here, in need of much greater local flexibility and the support from the Government that that would entail. I would like briefly to outline the problem and to suggest a few thoughts on the situation, locally and nationally.

Like many areas, the Isle of Wight needs sustainable, intelligent and sensitive regeneration to drive economic and social development. The current housing system does not serve the Island well. It is a system of developer-led housing, which generates only a small number of affordable houses. It fails to deliver the right type of housing. It is not sustainable. It encourages urban sprawl and all the transport problems identified by my hon. Friend the Member for Bolton West (Chris Green) and others. It forces communities to accept unpopular local developments. And in a place like the Isle of Wight, which has a visitor economy and an important tourism industry, greenfield development actually damages our economy.

A better system would be one where there is a funding scheme to support housing associations and others to build—as a significant, if not near-100%, solution to our housing problems—genuinely affordable housing for local people in small-scale developments in existing communities. That would ensure that we were able to provide housing for our people and to protect our environment at the same time. The wrong type of housing actually damages our society, because what developers want is not what my constituents need. It is not designed for local people. And, frankly, even so-called affordable housing is not really affordable for many people who earn the Island’s average wage.

[Siobhain McDonagh]

May I say how much I support the line that the hon. Gentleman is taking about the use of the word “affordable”? Does he agree that applying the word “affordable” to housing that is 80% market rent probably means that it is unaffordable for most?

[Mr Seely]

I thank the hon. Lady for her suggestion. I would say semi-affordable, rather than affordable— and, even then, people are reliant on the bank of mum and dad.

Housing associations tell me that what they need is one-bedroom or two-bedroom housing, but what is built, because we are part of a south-east market where people come to retire, is three-bedroom and four-bedroom housing, which is not what Islanders need. One of the most painful experiences of the last election was hearing the desperation of young people unable to find anywhere to live. I want a system that prioritises housing for Islanders at prices they can afford, and specifically for young Islanders. Indeed, research that I commissioned from the House of Commons Library a few months ago shows that an increase in our population on the Island has not led to an increase in prosperity—quite the opposite. Our gross value added per head has actually gone down slightly since 2000, while adult social care costs threaten to bankrupt us on a near-annual basis.

Throughout Britain, especially in island communities, in national parks, in areas of outstanding natural beauty, and perhaps even in the big cities nowadays, our country needs a system of building that is sensitive to the environment, caters for the resident population, and has much greater local flexibility. In considering these housing proposals, I am thinking not of the next five to 10 years—where to stick a housing estate now— but of what my Island is going to look like in 50 or 100 years’ time. Its landscape has inspired people for generations, and, frankly, I do not want that disappearing just to fulfil Government targets.

Our housing policy should oppose, in principle, all greenfield development unless it has strategic advantage for Islanders. Our housing target is 640 houses a year. Few of those houses will be for people who currently live on the Island. For me, that is difficult to accept; in fact, I do not want to accept it. I have yet to meet a single person on the Island who supports it. It is much better for us to have a system that builds what we need. Working with Government and the Housing Inspectorate, we should aim to support the building of, say, between 200 and 400 properties a year, overwhelmingly funded by housing associations who will be given the support to do that. If that means social housing, council housing, or whatever we want to call it nowadays, then yes, that is what we need.

This housing should be built overwhelmingly for two groups of people: first, young people, for whom we need to build social housing, starter housing and shared-equity housing—we should also include key worker housing in this—and secondly, elderly people who are seeking supported and sheltered housing. We need to make sure that our elderly do not face a choice between an expensive nursing home, which very often the council ends up paying for, and staying in a bungalow or house that they cannot quite manage to run. By having that midway point, we can free up more housing as part of a more sustainable model of development. I hope to work on this with the Campaign to Protect Rural England, as well as other green or green-oriented groups, to develop a sustainable model that I can work on with the Minister and with the Government.

I envisage that some of this housing may be for, say, an old lady or an old gent who moves out of a bungalow that could then be purchased by a housing association who would have a planning assumption whereby they were allowed to repurpose the building, perhaps by adding a second storey or creating two properties on the site, so that we meet increased housing targets without eating into our precious landscape, and provide perhaps a home for old folks on the bottom and a younger couple on the top.

We need intelligent, sustainable and sensitive development. We do not have that at the moment; I do not feel that the current system provides it. I will do what I can in the coming months and years to work with the Minister, perhaps using the Island as a test case for a sustainable model of development that accepts some increase in population but also accepts that in unique environments we need to protect that landscape rather than just see green fields as further housing developments of the future. I look forward to working with the Minister on this.

--- Later in debate ---

[Siobhain McDonagh]

May I suggest that that will happen only if the Government force—or encourage—public sector bodies to do it? Extorting their good will will not work.

[Dominic Raab]

I know that the hon. Lady has a great deal of experience in this regard and she is right. I suspect that what is needed is a mixture of coaxing and cajoling, carrot and stick. We must try to ensure that there is a win-win. However, it seems to the Government, and certainly to me, that there is a huge opportunity not just to build more affordable homes, but to control the process to ensure that those homes are for key workers on low and middle incomes.

We have heard a range of excellent speeches. I shall try to do justice to as many as possible in the time available. The hon. Member for Halton (Derek Twigg) raised the issue of funding and, in particular, the issue of the homes infrastructure fund. As I have said, we want to encourage the building of more homes, but we know how important it is to provide the infrastructure that will enable us to carry communities with us.