Housing Supply (London)

Tulip Siddiq Excerpts

Wednesday 15th July 2015 Westminster Hall

[Mr Burrowes]

I understand the hon. and learned Gentleman’s concerns. It will work if we increase the number of homes, and the way to do that is to ensure, in the spirit of localism and devolution, that London gets the receipts of the sales. If, as I suggest, we build two houses for every one sold, we would deal with the concerns about overcrowding and waiting lists in the hon. and learned Gentleman’s constituency and mine.

There is another issue on which London councils need to work better. Particularly in Ealing and Enfield, people are coming up from inner-city boroughs and are being placed temporarily in cheap accommodation. There are not only the costs of the accommodation, but social care costs. Children in care have an associated budget, but children in need have lots of associated costs. London councils need to work much better strategically to ensure that Enfield is not picking up the bill for residents of other boroughs. We need to work much better on that to ensure that Enfield, which does not have a properly fair funding formula and settlement, does not have to deal with that impact.

There are lots of other mayoral candidates and others who want to speak, so I will not go on for much longer. I will conclude by saying that we are a one nation party with a great history, not least on building housing.

[Tulip Siddiq (Hampstead and Kilburn) (Lab)]

Will the hon. Gentleman give way?

[Mr Burrowes]

I will not. There are too many candidates who want to speak.

The litmus test of a one nation party and Government is how we deal with the housing crisis. In London, we need to ensure that we continue to build more housing than ever before for the benefit of all Londoners.

--- Later in debate ---

[Jeremy Corbyn]

My hon. Friend is right. I hope that the Government will think this through and not introduce the regulation. It is unworkable and will lead to a lot of perverse results, unless it is a Trojan horse for something else, as I suggested, putting all council rents on to a completely market level. I suspect that that is in the beady eye of at least some in the Conservative party.

The second area of concern is the private rented sector. More or less a third of the population of my borough live in that sector, often in poor conditions. Most are on six-month assured shorthold tenancies; they have no control over the rent and, in reality, no protection against eviction. We must address the question of the quality and regulation of the private rented sector.

[Tulip Siddiq]

Of my constituents in Hampstead and Kilburn, 33% rent privately. Bearing that in mind, does my hon. Friend agree that we should think about a national register of accredited landlords, to weed out the abuse in the system and the revenge evictions that still happen, even though they are technically banned?

[Jeremy Corbyn]

The quality of management of much of the private rented sector is appalling, and the lack of regulation of letting agencies leads to many shocking cases. It is often the most vulnerable people who are victims of what happens in that sector.

The hon. Member for Enfield, Southgate was complaining about the number of people moving in to his borough from other boroughs. Indeed, people from my borough go there—they get moved there because the council has nowhere to put them in Islington. They want to come back. Often they live in poor conditions. The hon. Gentleman is right up to a point that the practice meets a need of the borough; however, it also creates a problem for the children involved. If he goes to any inner-London tube station in the morning, he will see children who travel quite long distances to attend primary school, because their family want to return to the borough they come from and hope desperately to get a council place there to move into. It is a reasonable aspiration, and one obviously hopes for success.

My final point is about sales of council properties. With a £100,000 discount, a vast amount of money is being given to the people who are lucky enough to get a council place. If a tenant of council property buys it and remains there, that does not make much difference to the overall social make-up, the housing stock or anything else; but when they decide to move on, the homes are never sold to people on the housing waiting list. They cannot be. More than a third of the council properties recently sold in my borough have ended up in the private rented sector, often for very high rents. There is something ludicrous about a council rent of £100 to £110 a week being charged for a flat when an identical flat next door is rented for £400 or £500 a week, with most of it being paid for through the housing benefit bill. If this Government deserve a prize it is for subsidising the private rental system in this country.

We need a serious, sensible form of regulation of the costs of housing and particularly the private rented sector. Average rents in Britain are more than double the average for the rest of Europe—in London particularly. We must address the issue, or this city will become even more divided. In 10 or 20 years it will resemble Manhattan. There will be a smallish number of people remaining in council and housing association properties in central London, and those will be the only social rented places available. The rest of the residents will be wealthy enough to buy, or to pay very high rents to live here. All the workforce will travel long distances on trains and buses to keep the city going. We should ask the London Chamber of Commerce and Industry about its concerns for the future London labour market, and we should look at the problems. We are destroying this city by our failure to build enough social housing, regulate what we have and plan for the future, other than by allowing funny money to flow in to buy up large amounts of land and property, which is often left empty and used only as a cash machine.