Housing, Planning and the Green Belt — House of Commons, 2018-02-06
Topic: Housing
Wera Benedicta Hobhouse (Liberal Democrats, Centre to centre-left): My party has long campaigned for 300,000 new homes to be built every year. There is a compelling social reason for that. Millions of people are now priced out of ever buying a home, and for the lucky few, the only opportunity comes with money from their parents or a direct subsidy from the state. Even then, eight out of 10 new homes are out of the financial reach of working people throughout the country. The housing market is broken. It is a market built for the few and designed to exclude. The lack of housing is a crisis that is denying people—especially young people and the most vulnerable, in my constituency and across the country—a place to call their own. It should not be a luxury to own a home; nor should it be a luxury to have a secure tenancy. Building 300,000 additional homes every year would at least begin to reverse the decades-long failure to match demand with supply. The Government, however, have only one solution, which is to leave house building to the private sector. The interests of private house builders are simple: high profitability sustained over a long period. That means the slow release of property on to the market, land banking, and—as has already been discussed this afternoon—the building of five-bedroom homes rather than affordable housing There is an alternative to that business model. Local authorities and other public organisations must build homes on the basis of different priorities: not profit, but social need and public good. Last Christmas, one in every 111 children in the UK was either homeless or in temporary bed-and-breakfast or rented accommodation. The private sector benefits from that financially, but the private sector does not solve a single problem I have raised the subject of social housing, built by the public sector, many times in the House since my election last June, but the Government have not reciprocated. When I talk about the need for social housing, they respond time and again by talking about affordable housing, which is built by the private sector with some levels of public subsidy. According to research by Shelter, such housing is unaffordable for eight out of 10 working families. It gets worse. In my constituency, the local authority has just shown all developers how not to include affordable homes in their planning applications and has set an example of how to get around their own planning obligations to provide affordable housing The Government’s Budget in November made some noises about empowering councils to build social housing. My party has long called for the housing revenue account borrowing cap to be lifted to allow councils to borrow in order to build social housing again, but my local authority, Bath and North East Somerset, transferred all its social housing stock more than 20 years ago—a move that the Government have encouraged many other authorities to adopt. There was nothing in the Budget for local authorities such as mine. Although the Budget announced the lifting of the cap, it will be lifted only in areas of high demand, and the process will not start for two years. A council’s ability to borrow will be conditional on the whims of the Government, and on what they deem to be high demand. The Government say that they will allow councils to borrow to build, but councils such as mine that have given away their housing stock have little to borrow against, and they will have to continue to go cap in hand to the Government In conclusion, the private sector is not going to fix the housing crisis. The state can embark on a big social housing building programme, and I hope the Minister is listening. The worsening problem of homelessness, as well as individuals and families living in temporary accommodation, is not going to be solved by the private sector. The solutions are there for all to see, but the current position of the Government is blocking any progress. I call on the Minister to listen: the public sector must build again.