That this House has considered the future of social housing.
It is a pleasure to serve under your chairmanship once again, Mr Paisley, for this important debate. I am glad that so many Members from across the House have joined me to make their case and give their perspective on the future of social housing. I want to acknowledge the contribution of the stakeholders that have campaigned for social housing over a considerable number of years, and especially those that have supported this debate, including Shelter, Crisis, the Local Government Association and its constituent councils, the National Housing Federation and the housing associations in my constituency.
I will make a passionate case for a new generation of social housing in this country, built at scale, in mixed communities, from north to south and throughout out devolved regions and nations. It should put tenants centre stage in the healthy and affordable—I mean genuinely affordable—houses of the future.
I will start with the story of a real family in my constituency to add context to the debate. Members from across the House will have encountered similar stories in their caseloads. Sarah and Eddy are a young couple who approached me some time ago. They have a baby on the way. They had been living in the private rented sector for nine years, and were served a section 21 notice. Section 21 should have been consigned to the history books some time ago. There have been many promises that that will happen, and I am sure the Minister will elaborate on that.
Sarah and Eddy were desperate. Weaver Vale Housing Trust, one of the housing associations in my constituency, was in the process of building affordable housing in a place called Helsby, and I was able to go along with the chief exec and hand keys not only to that family but to other families that the housing association and I had helped. I saw their desperation, then their hope, then their happiness. It was one of those days that makes us all tick in this job. Those issues keep us awake at night, but resolving them gives us a sense of purpose and achievement.
That example is one of only a few that I can refer to, because housing is not being built at a sufficient scale to meet the need that is out there; it barely scratches the surface. We have 1.2 million people in housing need, and the number is growing. There are 100,000 families living in temporary accommodation. I am sure some Members have seen the report published today—I think it was from City Hall, commissioned by the Mayor of London—which shows that there are 300,000 children sharing bedrooms with their siblings in very cramped conditions.
Of course, we see the visible consequences of not building enough genuinely affordable housing, whether we walk around the streets of Westminster, Manchester, Norwich or Birmingham, and undoubtedly it will be the same in Northern Ireland, Scotland and so forth. Quite simply, the status quo is broken.
Does my hon. Friend agree that it is a measure of the waste of public funds and the state of the housing crisis that in Kersal and other areas in my constituency—and, I dare say, in his constituency and others—small terraced houses are being turned into houses in multiple occupation for four families, with each individual family in these tiny properties claiming housing benefit? It is bad housing policy and bad public finance policy.
My hon. Friend is correct, and he will know that I am very familiar with the area that he refers to.
Surely it would be better to recycle that money and build the green social homes to provide for need, reduce costs and stimulate the economy. This Government talk about growth, and we do not have it. What better way could there be than to get Britain building and get Britain working? The result of that investment would be a long-term saving for the nation, while improving health and wellbeing and, importantly, the environment.
The National Housing Federation, Shelter, Crisis and the Local Government Association all point to figures of between 90,000 to 100,000 for the number of new homes needed every year over the next decade if we are to stand a chance of meeting demand—I mentioned the 1.2 million who are in housing need—yet the Conservative Government’s record on social housing is pitiful. Since coming to power, they have failed to build sufficient homes to meet demand and even to meet their own targets. Under right to buy, 2 million homes for social rent—public assets—have been sold off. Just last year, some 21,600 social homes were either sold or demolished, while only 7,500 new homes were built, leading to a net loss of 14,100 homes. That has happened every year since 2010; it is a familiar picture.
The Government aim to deliver just 32,000 social rented homes over the next five years. The Prime Minister is quite keen on maths—that is 6,400 a year. It is even less than they are building now, which is pitiful, so it gets even more pitiful. In contrast, post-war Governments built more than 100,000 homes for social rent right up until the end of the 1970s. Part of the answer to this housing affordability crisis has been staring us in the face for too long. It is time to summon that spirit of the 1945 Labour Government and the consensus years beyond it to build hope, houses and opportunity Britain.
If this Government do not change tack over the next 18 months, a future Labour Government must reprioritise social housing to tackle housing poverty and provide genuinely affordable housing for those in need. Our party has already committed to ensure that social housing is the second largest tenure, with that pledge made by my hon. Friend the Member for Wigan (Lisa Nandy), the shadow Secretary of State for Levelling Up, Housing, Communities and Local Government, at the last Labour conference.
Can hon. Members remain standing so that I can see who wishes to speak? I do not want to put a time limit on Members, but if they can keep in mind a maximum of three and a half minutes when they make their speeches, it will give everyone an opportunity to speak. This is a very well-subscribed debate, and I know Members have important things that they wish to say.
2:48 pm
Ben Everitt (Milton Keynes North) (Con)
It is a pleasure to serve under your chairmanship, Mr Paisley. I congratulate the hon. Member for Weaver Vale (Mike Amesbury) on securing the debate and enabling us to have this vital discussion about social housing.
I am sure we will cover a broad range of issues relating to social housing; therefore, given the time limit, I will limit my comments to speaking about conversions and incentives to build social housing, where I know we need to be making much more ground than we already are. As of now, 145,000 new affordable homes need to be supplied in England each year to meet current demand, including 90,000 homes at social rent levels. However, Government figures show that just 59,000 new affordable homes were delivered in 2021-22, with only a small proportion for social rent, so we know that we need to do more.
I will cut to the chase: some 1 million households are currently on the social housing waiting list in England, and private sector rents are increasing at their fastest rate in 16 years. It is harder for younger people to afford social housing, and it is harder for anybody to find affordable housing. It is well documented that a lack of affordable housing options contributes to homelessness, which unfortunately remains a significant problem in my constituency of Milton Keynes North. It is vital that we deliver more affordable and social housing to keep people off the streets. Therefore, we must incentivise building more affordable social housing.
I have been looking at getting that done through conversions. The all-party parliamentary group for housing market and housing delivery, which I chair, is doing a joint inquiry with the all-party parliamentary group for ending homelessness, which is spearheaded by my hon. Friend the Member for Harrow East (Bob Blackman) and the hon. Member for Vauxhall (Florence Eshalomi), who I am delighted to be stood opposite.
We must find a way to make it easier for council housing associations, individuals and organisations to build. Permitted development could be an opportunity for that. Between 2015-16 and 2019-20, a total of 72,980 new dwellings were added to our housing stock through permitted development rights, 89% of which were the result of office-to-residential conversions. We have all heard the horror stories about PDRs, so we must ensure quality and standards. In addition to boosting affordable supply through conversions, another crucial element to consider is the infrastructure levy itself. I welcomed the Minister’s commitment at the Dispatch Box last year to look into exempting affordable accommodation from the infrastructure levy, following an amendment I tabled that would have done exactly that. Social housing should be included in that.
Not only could I have made this speech in any year since I was first elected in 2005, I have made this speech in every year since then, because sadly, since long before that, there has been a sustained decline of social housing. Effectively, half the council homes have been lost since the right to buy was introduced as part of Thatcher’s attack on social housing.
It has been a very political attack. There is a completely erroneous belief that social tenants vote Labour and that Conservative voters do not particularly like social housing to be built. Actually, a survey last week showed that 70% of Conservative voters do want more social housing to be built. Perhaps the Conservatives’ electorate is slightly ahead of them on housing policy, because we are now in a deep housing crisis.
The cut to the social housing grant that was introduced in about 2011 and the freeze on rents, which prevented housing associations and councils expanding their stock, has really hobbled providers. This has been a 40-year process of decline. We have lost about half our council homes. It has gone from being a mainstream to a residual form of housing. Until we can reverse that, we will never resolve the housing crisis.
In fact, the struggle now is much greater. Because the last major building programmes were back in the ’60s and ’70s, many of those estates and homes are now either reaching the end of their useful life or need substantial repair. That money is not there. We now have, for sound environmental reasons, a huge bill for retrofitting and we also have—which we discovered in the wake of the Grenfell tragedy—a huge bill for fire safety. Against that, there has been a decline in the amount of money available. This is a created crisis. I do not believe that this Government are going to even begin to try to solve it in the next year, but a future Labour Government will have to tackle it head-on.
There are many practical ways. Yes, of course more grants and investment are needed, but there are underspends in Homes England. There are ways of incentivising developers. There are ways of changing plans to require a minimum of 50% affordable housing, particularly in areas of extreme shortage. That is not impossible; in Vienna the requirement is 66%. We need development corporations and an interventionist market in areas of high need.
It is a pleasure to serve under your chairmanship, Mr Paisley. I thank the hon. Member for Weaver Vale (Mike Amesbury) for securing this important debate. Housing has long been my driving passion and interest. I have published extensively on housing. In that regard, I draw attention to the Register of Members’ Financial Interests and my unpaid role in the Housing and Finance Institute.
Hon. Members know that I am a strong advocate for the importance of social and affordable housing. I grew up in council housing, and I firmly believe that it is social and affordable housing that provides a good home. That is somewhere that provides opportunity—a springboard for life chances—as well as stability, flexibility and affordability. A good home is not incidental or subsidiary to the other fundamental needs or priorities of a Government, such as health or education. Providing good homes is itself a fundamental need and priority. It is the foundation stone for families and people across all ages to live well and prosper in our society.
The evidence is clear that a good home is provided best in two forms of housing tenure: social housing and home ownership, not the private rented sector. The link between the private rented sector and deprivation has long been shown, and it is time to rebalance the long-standing issue of growth in that sector. The uncontrolled expansion is a grave error. There needs to be a fundamental change to rebalance the tenure mix and provide more social and affordable homes. The nation needs good homes to provide home ownership and stable social rented housing.
Last month, I published Operation Homemaker, which is a groundbreaking plan to house the homeless and provide permanent homes for the most vulnerable households in Britain. Nearly 100,000 households in our country are without a home of their own, including a staggering 11,000 children in bed and breakfast accommodation. The Homemaker plan is to build 100,000 homes over a year and a half. Those homes will house the homeless and provide a permanent home for every family stuck in temporary accommodation such as bed and breakfasts. Operation Homemaker will not only house the homeless, but boost the economy. Building the homes will provide a £15 billion stimulus to the economy, which will help to keep the building industry going and secure hundreds of jobs. The Homemaker plan can be funded by better using available funding. That is both public and private finance, revenue and capital spending. With private finance and institutional investment appetite, the funding and the planning permissions are available to deliver on this important ambition.
It is a pleasure to see you in the Chair this afternoon, Mr Paisley. I congratulate my neighbour and hon. Friend the Member for Weaver Vale (Mike Amesbury) on securing this important debate and his excellent introduction on a subject that he is passionate about, as is every hon. Member here.
If our debates were guided by issues that constituents come to see us about, housing would be very near the top of the list. Whether it is tenants facing eviction, tenants coming to see me for the fourth or fifth time because the damp has still not been fixed, or people who simply want a roof over their heads, it is clear that we do not have enough housing at the right price, of the right quality, in the right places or of the right tenure.
I look at what the young people of today are facing: student loan repayments, sky-high private rents, huge deposits for a home, and maybe even saving for retirement. With inflation continuing to outstrip wage increases for many, even renting privately is a challenge, never mind saving for the future or for a home of their own. A young person who lives with their parents and cannot afford to move out, as many cannot, will probably not even qualify to get on the housing register in the first place. They are essentially trapped.
To get on the housing list now, people have to be in a pretty serious situation. Simply being unable to afford a place of one’s own is no longer enough. Even with those restrictions, there are nearly 6,500 people on the housing register across my local authority area of Cheshire West, with more than 1,500 in the most urgent categories. For context, in the past year, only 922 vacant properties were advertised across the whole of Cheshire West. The average waiting time for an applicant in band A—which is for the most urgent cases, such as those involving domestic abuse or homelessness—is around 22 weeks, while the longest wait is just over three years. Those are just the most urgent cases—the so-called lucky few who can even get on the register in the first place.
It is a pleasure to serve under your chairship, Mr Paisley. I thank my hon. Friend and north-western neighbour the Member for Weaver Vale (Mike Amesbury) for securing this important debate. I know he is passionate about improving the provision of social housing in his constituency and across Britain.
Every single week my office is inundated with stories about scandalous rent hikes in the private sector, amounting to hundreds of pounds, and an ageing stock in the social sector, meaning damp and mould are rampant. Recent census data revealed that house prices in Stockport have risen by almost 50% in the last five years, compared with 20% in the rest of England and Wales. As a result, rents in the private sector are sky rocketing. Understandably, people are turning to an already oversubscribed social housing sector, where temporary and emergency accommodation is full.
Local housing allowance is dwarfed by the median rental value in the two broad market rental areas in my constituency, and with the Government’s consistent delay in abolishing section 21 no-fault evictions, the security of tenure in the social sector is rightly and more understandably attractive. When the Chancellor announced his Budget last month, I was deeply disappointed that local authorities were not given the money to improve the housing stock, or the ability and finances to build more council houses.
I recently received an email from a woman living in social housing, who said that conditions were so bad that her one-year-old baby has
“had to stay with family as we have to protect her health. She was constantly coughing and had bad breathing”.
Another example is a mother who wrote to me following an accident that left her paralysed from the waist down. She is in a property that has no wheelchair access and so is bedbound. There are currently no suitable properties for the family.
3:07 pm
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The consensus on the need to build 300,000 homes of all tenures has now been ditched by the Conservative party—the Conservative Government—to placate Back Benchers and some Tory councillors. Now it is being reported that planning applications in England have fallen to their lowest level in 16 years. The Government are once again well below their target—I say “target”, but I am not sure that it is now. Is it a target or not? It changes by the day.
Limiting supply is shattering the dreams, hopes and aspirations of so many families and young people. There will be Government Members sat across from me now who are very much aware that it is actually market-led housing schemes that are providing some of the affordable housing schemes in our community. The situation provides yet more evidence that the current Government have set in train a collapse in house building across England, with all the harmful social and economic consequences that that entails.
Let us take our minds back to the covid pandemic. There was grand talk from Ministers of “building back better”, with the homes for key workers scheme draw on the post-war programmes of homes for heroes. We saw that scheme being announced, and spun, in the press. Unfortunately, it amounted to little in the way of substance. It was policy by press release, soundbite and broken promises. Lessons from history are simply being ignored.
During the current cost of living crisis, the relationship between housing and income has been magnified more than ever. Many commentators refer to a housing crisis; in reality, at its heart this is an affordability crisis. Too many people and families are excluded from what should be a basic right for all—a decent, genuinely affordable home that is safe and secure, and free from damp and mould. The case for social housing is stronger now than ever before—for now, not just for the future. That case is not just a moral one; it is about sound economics, too.
Let me start with the economic case. The cost of housing benefit in the UK is now truly astronomical. The Government’s own figures show that it is £23 billion a year. I will repeat that figure: £23 billion a year. Much of that goes into substandard properties in the private rented sector, where—as we all know from looking at our caseloads—rents are rocketing and local housing allowance rates are not meeting the basic costs of those rents. Again, I would like to hear from the Minister whether that will change.
As Sadiq Khan and City Hall have highlighted, over £1.6 billion is being spent on very bad—substandard—accommodation. The Government talk about the affordable homes programme, don’t they? In reality, in a lot of cases that programme is not building affordable homes, yet it costs £11.4 billion over four years. There is £23 billion every year going into the private rented sector, much of it for substandard accommodation, and yet £11.4 billion over four years has been spent on the so-called affordable homes programme.
I want to put a number of points to the Minister. The affordable homes programme should be reinvigorated, with an increased focus on delivering homes for social rent over the next 18 months, not the current vandalised version of affordability that, in many cases, is anything but. Social rent of up to 80% of market rents in London, the south-east and many cities is just not realistic. The Government must change direction on their current proposals for section 106, given that 47% of affordable homes are currently funded by these means. The proposed infrastructure levy is becoming the Government’s very own magic money tree. We have all been in debates where we have been told that it is a remarkable, amazing levy that will pay for all these things. The one thing missing is affordable “affordable housing”.
The Government need to power up local councils and combined authorities, as argued by the Local Government Association, with even greater freedoms to borrow to build, while reforming planning to reduce the cost of land for public housing. I know that it is rather difficult with Government Back Benchers and so forth, but they have to do the right thing. The Government should also direct Homes England to take a more interventionist approach in the marketplace and acquire the land needed for building. In their first 100 days, an incoming Labour Government will do much of that, and very much more, with our “take back control” Bill. I think it will be in the first 100 days after the King’s speech; I look forward to that moment.
Some councils, from Manchester to London, and out to Norwich and further afield in our nations, have started to build council housing again, but meeting the scale of need will require political leadership and missionary zeal to charge up councils as well as housing associations—certainly those that have not lost sight of their founding principles. We must ensure that there is capacity in planning departments to turbocharge that missionary zeal into building social homes. I believe that time is up for right to buy—that is a personal perspective. To protect and grow the public housing stock, redirect an element of that subsidy to first-time buyers, so that they can have first dibs on market-led housing development.
The current Government’s first homes scheme has delivered just 35 completed homes. It is a scheme that had lots of fanfare in the not-too-distant past, with a target of 10,000. I suppose I will pay some slight credit to the Government and the Minister: it is much better than what came before it, which was zero. I think that is referring to starter homes, none of which have been started in any way. The direction of travel on social housing regulation is the correct one, but putting the voice of the tenant at the heart of the community will require sufficient resources for tenants as well as social housing providers to improve housing stock.
I am interested to hear the Minister expand on that. What minimum standards can we expect to be required of social housing providers? Will we see a programme such as we saw some years ago, in the last Labour Government, which drove up standards of social housing? I hope that the Minister can update us on when we can expect to see section 21 abolished.
Let us consider the pressing question for the Minister: will she recognise that it is now time to make significant investment in building genuinely affordable social homes? If she changes tack in the next 18 months, maybe she can make a mark in history. If that is not the case, it is clearly time to step aside and let people and communities take control, with a Labour Government to provide hope, houses and opportunity.
We must incentivise SME house builders to play a more significant role in the social housing sector. SMEs bring innovation, flexibility and local knowledge to the table and are often better equipped to take on small, bespoke projects than large firms. Therefore, we must make it much easier for them to enter the market.
The future of social housing in the UK requires a comprehensive and co-ordinated approach from both the Government and private sector. We must increase the supply of affordable housing, including social housing, by incentivising conversions and supporting SME builders. Consequently, we can realise our shared ambition, which is for everyone to have access to safe, secure, and affordable housing that meets the needs of our local communities.
One of the good things about canvassing, which I first started about 40 years ago, is that we get to see how people live. Forty years ago, we were worried about conditions in the private rented sector. Now, in many cases the social housing sector is just as bad. Housing associations are running their stocks badly, partly because they do not have the means to do it. Unless and until we have a Government that are serious about housing people on low and medium incomes particularly, but also the population generally, as was the pledge from Governments of both parties in years gone by—until we get that sea change in attitude, we are not going to resolve this problem. To think it can be tinkered with through the sorts of means this Government are introducing now is a pure fantasy.
As a constituency MP, I am proud of the work that the Conservative-led Dover District Council has undertaken to provide new council and affordable homes for our local community. However, more must be done nationally to support those in need. It is time for Operation Homemaker —a new national mission to house the homeless and build the affordable homes that our country needs. We can and must deliver the social homes that are needed. The time to deliver social and affordable housing is not the future; it is right here and right now, and that is what we must do.
The only answer is to massively increase the amount of council housing. As the LGA says, a generational step change in council house building is required to boost housing supply. What we have at the moment is a lottery. If there is a central Government grant going, or a new private development, where the developers might be required to build a few affordable homes, we might get a bit of new social housing, but it is piecemeal and nowhere near enough to meet demand.
The new builds we are seeing are not even enough to replace the homes lost to the right to buy, never mind to meet existing demand. I understand why, in the rush to reach the decent homes standard, many councils transferred their stock to housing associations at the start of this century, but that has led to council housing becoming detached from the communities it is supposed to serve. It is now all about asset management.
Although our council has built what it can, it is nowhere near what it needs to be, because of the straitjacket imposed by Government. Most of the new social housing built in my constituency in recent years has been built by housing associations, often based many miles away from the constituency, with no connection to the area, other than having a few dozen homes there. I doubt very much that the leaders of those organisations have spent much time in the constituency, if they have visited it all.
When councils had the capacity and resources to plan over the long term for housing need, it was about so much more than just putting a roof over people’s heads. It was about building communities, and successive generations living side by side in secure, well maintained, low-cost homes. We have lost all that. Decent and affordable housing, built in sustainable, joined-up communities, has the power to fundamentally improve people’s lives, and the life chances of children in my constituency and across the country. What we have now is a market-first, people-last approach, which ultimately makes us all the poorer. Build more council houses and build them now.
In the last fortnight I met with Stockport Homes, which is the primary social housing provider in my constituency. The truth is that it is so much more than a social housing provider. Whether by providing food and mental health or employment support to its tenants, or by tackling antisocial behaviour in and around its properties, it regularly goes above and beyond. Take, for example, the work it does through its money advice team, which supported more than 2,000 customers to obtain additional income worth £7.2 million. Stockport Homes is truly an example of an excellent social service.
But when I met with representatives from Stockport Homes, they shared with me the utter despair that they feel, day in, day out, about their inability to provide suitable housing to the people who come through their doors, despite the excellent work and services they already offer. There are 7,000 households on the waiting list, 4,000 of which are in housing need of some kind. There has been an almost 30% increase in the number of homelessness inquiries from people currently in the private rented sector across the Stockport borough. A total of 569 properties have been reported as having damp, mould and condensation. If those figures are not shocking enough, in the last month a single studio flat received 325 bids. That means that 324 people missed out on securing one single-bed property, which demonstrates the exceptionally high demand in the Stockport constituency. I place on record my thanks to the chief executive, Helen McHale; the head of homelessness and rehousing, Jeff Binns; and all the staff at Stockport Homes who work so hard to provide for people in my constituency.
The Government must understand, though, that without addressing the inadequate finances and the much-needed upgrades to a significant portion of the stock, Stockport Homes will continue to struggle. The Government talk a good game on housing. The Secretary of State has previously publicly shamed failing social landlords, and the overdue renters reform Bill is coming, although it seems to be stuck in the pipeline. Beyond words and empty promises, what are the Government doing to ensure both that there is enough social housing provided and that the stock is of the highest quality, meeting the demands of tenants in Stockport and across Britain? I want to hear much more from the Minister on that.