Housing Supply (London)

Stephen Hammond Excerpts

Wednesday 15th July 2015 Westminster Hall

[Stephen Hammond (Wimbledon) (Con)]

I thank the hon. Member for Ealing Central and Acton (Dr Huq) for securing today’s important debate. She was right to make the point that all parties stressed in their manifestos the need for extra housing. That need is clear in London, the population of which is growing faster than anywhere else in the country and at the fastest rate in history. The official 1939 population peak of 8.6 million was surpassed earlier this year. The projection for 2020 is 9 million, but Members present, most of whom represent London constituencies, will recognise that a huge number of people are missed when data are collected; the figure is perhaps rather closer to 9 million, if not larger, already. It is therefore right to concentrate on housing in London.

It is also right, as the hon. Lady said, that general elections mark a punctuation point, allowing us to consider what we should be doing in the future. They also provide a chance to ensure that we recognise exactly what is being done already. Some of the likely developments have already been set out, and that will continue under this Government in London because we were elected.

The housing strategy, as set out by the Mayor of London, must undoubtedly consider not only the private sector, but other sectors across the market. It is also clear that, under this Mayor, more houses, particularly in the social and affordable housing markets, have been built than ever before—[Interruption.] It is all very well to shout “rubbish” from a sedentary position; some Members may not want to hear the facts. Under the mayoral programme, which set out to build 100,000 affordable homes over two mayoral terms, 94,000 affordable homes have been delivered since the Mayor was elected. He is on course to deliver 15,000 more over the next two years.

[Ms Diane Abbott (Hackney North and Stoke Newington) (Lab)]

Does the hon. Gentleman accept that the Mayor of London’s definition of affordable housing is such that it is beyond the pockets of most of the people represented on these Benches?

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[Stephen Hammond]

I do not accept that. The market has various sections, and affordable homes are clearly aimed at a particular section. The strategy that the Mayor claimed to be able to deliver is being delivered. He is investing £1.25 billion in the supply in London, which will lead to another 42,000 homes being provided between now and the end of 2018. Such allocations of money will support the delivery of homes on the scale announced for the next two years.

No one is suggesting that we do not need to build more houses, and in all areas of the market, but we need to be clear about what is already being done. The affordable homes scheme is delivering more affordable homes in London than ever before. Furthermore, the Mayor’s First Steps strategy, a single brand for shared ownership products throughout London, is clearly part of an ambition to deliver a number of homes in the capital, doubling by 2025 and helping about 250,000 Londoners into home ownership. That will make a significant impact on affordable home ownership, ensuring that 36,000 more affordable homes in London will be coming through, and have been built in the past five years.

The biggest issue in London is the cost of a home and how that cost starts: with the basic cost of land. One of the major promises that the Chancellor of the Exchequer and the Mayor, the hon. Member for Uxbridge and South Ruislip (Boris Johnson), set out in February this year was the London land commission. Members on both sides should be standing up to welcome the fact that we are bringing into use public sector land that is not being used operationally.

[Mr David Lammy (Tottenham) (Lab)]

It is fantastic to have a land commission bringing public land into use, but not if such land continues to be sold off to the highest bidder. Scotland Yard has been sold off for penthouses. Can the hon. Gentleman understand the outrage in London when no affordable homes are built?

[Stephen Hammond]

I would have listened more carefully to the right hon. Gentleman’s comments had he not said that no affordable homes were being built—that is simply not true. As I have already laid out, 15,000 will be built this year in London. Clearly, the Mayor is delivering.

The sources of land and the value to the public sector— how the land and different elements of it are used—will vary, but the London land commission has an opportunity to bring land into use for home ownership of all types throughout London. Significant tranches of land are involved. Transport for London, for example, has 568 designated sites where non-operational land could be brought into use; 98 of those are ready to be rolled out pretty much immediately, according to the TfL development director, Mr Craig.

We should not squander the opportunity, which is significant. Such land has involved work in London’s east end and the Royal Docks; we have already mentioned Old Oak Common. We should also consider the potential that the Mayor has given in the money allocated—not only to land, but to the new housing zones, which are an initiative to accelerate housing developments in areas of high potential. Last year London boroughs were invited to participate in a programme, and I am delighted that my borough will be seeking to participate. The programme is likely to deliver a significant number of homes across the borders of my constituency and that of the hon. Member for Mitcham and Morden (Siobhain McDonagh). Those will not only be affordable homes, but homes in the social rented sector as well as in the private sector.

[Andy Slaughter (Hammersmith) (Lab)]

It is good of the hon. Gentleman to read out the Mayor’s brief, but that is just utter fantasy. The hon. Gentleman mentioned Old Oak Common and TfL, but the largest TfL site is in my constituency and no social rented homes are going in those places. The limits for income have just been put up to £85,000. That is not building for Londoners; it is building for oligarchs.

[Stephen Hammond]

I am not just reading out the Mayor’s brief; I have a panoply of things in front of me. Opposition Members will undoubtedly read out the Labour party prepared brief in a moment. I am happy for anyone to inspect my things—no brief talks about the TfL numbers, because I personally researched them. I know that those numbers are there and that they are possible. A number of sites of varying size can be brought back into all sorts of home ownership. Some of that will be affordable housing and some social renting—[Interruption.] As my hon. Friend the Member for Enfield, Southgate (Mr Burrowes) rightly points out from a sedentary position, when it comes to Old Oak Common, we cannot yet be sure—the potential is there for at least 24,000 homes, but the mix is not yet certain.

Clearly, there is a housing supply problem in London—[Interruption.] It is not right to say that the Government are doing nothing; the Government are doing a huge number of things, supporting the Mayor in London. Labour Members might not like this, but the reality is that in the Labour party’s 13 years of office, almost no council houses were built; in the past five years of the coalition Government, twice as many were built. [Interruption.] It is no good Labour Members shaking their heads: the numbers are there—that is absolutely true. Despite Labour cries, it is Conservative Members and their Government, with the support of a Conservative London Mayor, who are taking the action to deliver the housing that Londoners need.

[Mr David Lammy (Tottenham) (Lab)]

I am grateful, Mr Chope, to have the opportunity to speak, although I will not speak for too long as many colleagues want to get in. I will concentrate on a few points that would change the situation for many people.

Right from the beginning, we must say that there is a big difference of opinion about what is affordable. Frankly, it is not acceptable for the hon. Member for Wimbledon (Stephen Hammond) to use the word “affordable” and not accept what has already been said: that 80% of market value is not affordable for Londoners, who have average earnings of £32,000 a year when the average property in London costs £470,000. It is also not acceptable for the hon. Gentleman not to understand and to say nothing in his contribution about the concept of council or social rents. Most Londoners find themselves in an overheated market, so they want to see affordable social or council rents. That is the dispute.

Other difficult issues face the city. There is deep concern about another word used by politicians that is coming to mean very little—“viability”. It is used too often by developers and local authorities, including Labour ones—this is not a partisan point—to say that the proportion of affordable homes on a development will be low, and that is using Boris’s definition of affordable. That is why two weeks ago I rejected a plan in my constituency to turn a police station into flats, given that only 14% of them were to be affordable. That is not acceptable when public land is involved.

The hon. Member for Wimbledon shouts about the land commission, but he needs to understand that it means nothing if it amounts to the selling off of public land, to which taxpayers have contributed over so many years, to the highest bidder and moving it from public to private ownership. That is not acceptable. It must be fought and stood up to in this city.

[Stephen Hammond]

What is equally not acceptable is to mischaracterise the situation. A huge number of Londoners want to get on the housing ladder, and some of the housing now being provided represents exactly that sort of opportunity. We are not talking only about social rents and affordable housing; some of the opportunities enable young Londoners to get on to the housing ladder.

[Mr Lammy]

Do the maths: the average house costs £470,000 and the average salary is £32,000. With loans at three and a half times a person’s salary, many Londoners will not be able to get on the ladder. People are therefore looking for a Government and a Mayor who have something to say about social housing. What this Government are saying about social housing is, “We are going to extend the right to buy even further and take even more property off the ladder.”

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[The Minister for Housing and Planning (Brandon Lewis)]

It is a pleasure to serve under your chairmanship, Mr Chope. I congratulate the hon. Member for Ealing Central and Acton (Dr Huq) on securing the debate. We recognise that there is a huge demand for housing in London and there is a real challenge for the Government and the Mayor, who has set himself a significant challenge to meet the needs of the growing population in this hugely important world city. London is an economically important and vibrant place to live and work, and it is crucial that we ensure that the housing market works well.

It has been interesting this morning to listen to a mixture of mayoral and leadership hustings, as well to quotes from George Orwell. I assume that the hon. Member for Ealing Central and Acton, who quoted one of my favourite authors, will therefore want to support things such as right to buy and the starter homes package, despite the opposition of her Front-Bench team. She has outlined her desire to see more home ownership, which is something that both schemes will deliver.

We have introduced a range of measures to get Britain and—working with and supporting the Mayor—London building again, to fix the broken housing market and help hard-working people to get the home that they want.

[Stephen Hammond]

Does my hon. Friend agree that the Mayor’s task has been made even more difficult by the fact that he inherited a situation in 2010 in which housing stocks were at their lowest level since the 1920s? Council house building was less than half what it has been during the coalition period.

[Brandon Lewis]

My hon. Friend makes a good point. I find it ironic, to use parliamentary language, that the Labour party makes the case for house building while seeming to forget that it left us with the lowest level of house building since, I believe, 1923, as well as a reduction in the number of social homes. The coalition Conservative-led Government built more council-owned homes than were built during the entire 13 years of Labour.