House Building: London

Debate between Wendy Morton and Meg Hillier

Wednesday 5th November 2025 Westminster Hall

[Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

I congratulate the hon. Member for Old Bexley and Sidcup (Mr French) on securing this debate on such a vital issue. I echo many of the points made by my right hon. Friend the Member for Islington South and Finsbury (Emily Thornberry). Her neighbouring constituency now includes a ward that used to be in my constituency—a ward where house prices are reaching £2.5 million to £3 million in some cases. That is one end of the scale.

At the other end of the scale we have a homelessness situation that is intolerable, with thousands of people on the waiting list. Exactly as my right hon. Friend said, every week I visit people in their homes, which is something that MPs do. We see people where they live, with the problems they have: triple bunk beds with little space for the third child to get into bed; five people in a room; and toddlers with no space to run around. I could give a different example every week, but a real one. This is what we need to resolve, so I welcome the Government’s plan to build more homes.

There are a lot of challenges. The right hon. Member for Aldridge-Brownhills (Wendy Morton) mentioned the “brownfield first” approach as a priority. There are plenty of brownfield sites in my constituency. I say “plenty” but, like the constituency of my right hon. Friend the Member for Islington South and Finsbury, my constituency is very small in relative terms but expensive to build on.

House prices in Hackney are 18.5 times average income, so all the young professionals who might want to get on the housing ladder are stuck in shared accommodation, as my right hon. Friend the Member for Islington South and Finsbury said, and families are stuck in social housing, crowded and unable to go anywhere else because they cannot afford private rent, which gives no security anyway. Homeless families are increasingly in hostels for years. Only six years or so ago it would have been about six months before people had a chance of getting some sort of property, and now people are being moved out of the borough, wrecking their lives and opportunities.

We have 3,400 homeless households in temporary accommodation, which is a big issue for us all and costs the taxpayer a lot of money. It does damage to the families and the children’s opportunities. It breaks our communities, and all taxpayers have to fund that, so we need to resolve it. We have a total of 8,500 households on the council’s housing register, and the notional wait for a three-bedroom property is over a decade—it is a nonsense wait, because by that time the children have grown up. Around 44% of Hackney residents live in social housing. We have more private renters than homeowners and that level of social housing residents. Even though house prices are going up for some, the housing situation is worsening for many others.

Hackney council has been great at delivering properly affordable social housing. Affordable homes, which include both social rented and intermediate, make up 57% of council housing-led delivery. In crude terms, if Hackney council wants to build a home because of the land value, which I will touch on, it has to build one for private sale to pay for the one that is for intermediate or social rent. When I say to people, “We are working hard to get you a house,” they look at the houses I am pointing to on the neighbouring bit of land and say, “Will I get one of those?”, and I cannot, hand on heart, say that they will within any reasonable period of time. The devastation this is having is surely feeding into our special educational needs and health crises. It is just not long-term sustainable.

Since 2022, the current council period since the last council elections and between now and next April, 956 council homes for social rent have been in design, planning or acquisition or under construction. It is cheaper to buy back a leasehold property on a council estate than it is to build new, because it costs £450,000 in Hackney to build a new social rented home. It is no wonder we are having challenges delivering and no wonder that the Government and the Mayor of London are trying to work out a way to get more homes built. If they are all for private rent, we are going to exacerbate the problem, so we need to work that out. Construction costs are now around £5,000 per square metre compared with £1,000 to £1,500 a decade ago. That is being led by a number of issues globally, including Brexit, but this is the reality we are dealing with. When I looked at this in my previous role on the Public Accounts Committee, the Government’s own figures showed—I am sure the Minister is aware—that bricks and mortar subsidies offered the best value for money for the taxpayer to try to resolve the problem.

We need things not just on brownfield but on grey belt. I do think that the green belt has some grey belt —we need to be realistic about this. Bits of old car park that no one is using could be turned into homes. We need to be creative when looking at this.

[Wendy Morton]

The hon. Member makes a really important point about grey belt. I completely understand her example of a car park, but grey belt needs much clearer definition, because we are seeing cases of development that inspectors are now saying is grey belt when it is actually greenfield, and that is really damaging to our communities.

[Dame Meg Hillier]

That is a fair challenge, and I am sure that the Minister will pick that up. It is important that we all know where the goal posts are.

I would like to ask the Minister about the release of public land. This is something that I have looked at over the years. Whether it is the Ministry of Defence, Transport for London or the Department of Health and Social Care, the Treasury has, over many Governments, insisted that that money goes back to the Department. On one level, that is completely logical, but looking at hospitals or schools, if that land could be used for housing, it would help teachers, nurses or doctors to live locally.