Homelessness — House of Commons, 2020-01-29
Topic: Housing
James Roger Cartlidge (Conservative, Centre-right): It is a pleasure a pleasure to follow the right hon. Member for Birmingham, Hodge Hill (Liam Byrne). He spoke with great passion, which I share and I am sure the whole House shares. We want to end homelessness. It is a shared goal I draw the House’s attention to my entry in the Register of Members’ Financial Interests: I am a director of a shared-ownership property portal, so I have a great interest in the issue of first-time buyers. In fact, when I was involved in the business day-to-day, before I became an MP, we used to give part of all our mortgage commissions to the Broadway homelessness charity, which is now part of St Mungo’s. From my experience of working with Broadway and meeting many homeless clients, I can say, as my hon. Friend the Member for Gravesham (Adam Holloway) did, that one should resist the temptation to generalise about the reasons why people have found themselves in very difficult circumstances. It was often drugs or alcohol, in particular it was family breakdown, and many times it was a combination of them all. I therefore very much welcome the additional £112 million that my right hon. Friend the Secretary of State has announced. It will include £30 million for mental health, which is very welcome. As my hon. Friend the Member for Gravesham said, health is a significant issue in this context Having said all that—that we cannot generalise on the individual factors and that each case is different—we must all be concerned about the worrying underlying structural trend in causes of homelessness, which is that there has undoubtedly been a significant increase in the number of people becoming statutorily homeless because they have reached a certain point in an assured shorthold tenancy and been unable to renegotiate it, the rent has then been pushed up, they cannot afford it, and the property has been re-let. That is incredibly worrying, because more and more families are now in rental accommodation because of the affordability crisis that I referred to earlier in an intervention on the right hon. Member for Wentworth and Dearne (John Healey). The price of homes has gone up hugely under successive Governments. It is a widespread problem, particularly in our largest cities. So, what can we do about it When we talk about high rents, the other side of the coin is of course wages. There is no doubt that this period in which the end of an AST has become a factor in rising homelessness has coincided with a period of flat wages and significant rising rents, particularly in London and the south-east. The good news is that wages are now rising at their fastest rate in a decade—that is an incredibly important part of the issue—but on the other side of rents, the Government are entirely right that we need more supply. We cannot get around that. If a tenant finds themselves at the end of their tenancy, having to renegotiate, and the landlord knows that they can easily re-let—that there is an under-supply in the market —we know who will be wearing the boot on which side of the equation, and that will mean pressure on the tenant to accept a higher increase than they otherwise would. We need more supply and more choice I wish to make two points on how we can move forward. There is no easy solution, but what is called the build-to-rent sector offers a potential solution. Build to rent is generally institutionally funded and there is huge potential finance available for it from City institutions and so on. It is growing significantly: there was a 20% increase in build-to-rent development last year, and I believe that 148,000 units have been developed in the UK under build to rent. The key thing about build to rent is that under the national planning policy framework, tenancies should be offered of at least three years—what are called family-friendly tenancies. If we were to see a widespread increase in the supply of these types of properties in the market, with better-quality tenancies, it would force those in the sector who may not offer such good tenancies to improve their offer.