British House Building Industry
Jack Lopresti Excerpts(4 years, 7 months ago)
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Siobhain McDonagh
The social and financial cost of homelessness far exceeds what we spend on temporary accommodation, which was £1 billion of taxpayers’ money last year—every £1 of it badly spent. Some 6,980 families in my constituency are trapped in bed and breakfast accommodation, having been there longer than the six-week legal limit, including 810 children. Others are stuck in hostels far away from their schools, families and friends.
Some of my constituents are housed, at least temporarily, in Connect House, a warehouse on the busiest south London industrial estate. For anybody who wants to see what Connect House looks like, please have a look at the video on my Twitter account.
I am just crawling through my speech, because I see more and more people here.
Other families who have come to see me are on the ever-expanding waiting list, with 1.2 million families across our country now waiting for a place to call home—1.2 million. Just 6,464 new social homes were built in 2017-18, the second lowest number on record. At that rate, it could take 172 years to give a socially rented home to everyone on the current waiting list. That is utterly appalling when we compare those figures with the 150,000 social homes delivered each year in the mid-1960s or the 203,000 council homes that the Government delivered in 1953. It has been done before and we all know that we can do it again.
In Merton, where my constituency is based, 10,000 families are on the housing waiting list, with lettings for just 2.5% of them in 2018-19. What hope can I give the other 97.5% that they will ever find a place to go? I would like to provide statistics on home ownership but, again, I will move on to some of the other data in my speech.
The statistics and the stories that I have detailed this afternoon should provide thoroughly fertile ground for the British house building industry to get on and build, but its record does not match the potential. Here is the reality: our country’s housing target is 300,000 new homes a year—a figure that has not been reached, as we have already identified, since 1969, when councils and housing associations were building new homes. England is now on course for the worst decade for house building since the second world war.
I would like to look specifically at the performance of the leading house building companies in our country. To the best of my understanding, the figures are all correct as of June. In the last financial year, just 86,685 homes were completed by the 10 FTSE 350 house building companies, despite an extraordinary collective pre-tax profit of more than £5.37 billion. That is a mind-boggling figure, which is better understood when broken down.
Let us start with the four FTSE 100 housing companies: Barratt, Persimmon, Taylor Wimpey and Berkeley. In the most recent financial year, Barratt completed just 17,579 homes—slightly more than Persimmon, which finished 16,449 homes, with profits of £1.1 billion, of which half was down to public subsidy through the Government’s Help to Buy scheme. Taylor Wimpey came third with 15,275 homes completed but, in fourth place, despite an astonishing pre-tax profit of £934.9 million, is Berkeley homes, which completed a pitiful 3,894 homes. Together, those four companies collected a pre-tax profit of an unimaginable £3.68 billion, despite completing just 53,198 homes—less than 18% of the Government’s house building target.
What went wrong? Did they perhaps just not have the land to build the houses? Those four companies are sitting on a land bank of more than 300,000 plots between them. If we add in the rest of the FTSE 350 house building companies—Bellway, Bovis, Countryside, Crest Nicholson, Galliford and Redrow—the collective land bank is a staggering 470,068 plots, yet they completed 86,685 homes between them.
Jack Lopresti (Filton and Bradley Stoke) (Con)
I congratulate the hon. Lady on her excellent speech, with which I broadly agree. Does she agree that while, from a moral point of view, we obviously need to build more houses in the public and private sectors, we also need to radically reform the planning system, which takes far too long and is a big roadblock to getting the homes we need for people?
Siobhain McDonagh
I absolutely agree with the hon. Gentleman and would love an opportunity to have a debate about planning law, building on the green belt and other matters. I could speak at great length about them, but I will not because I want to allow other people to get in.
I would like Members to focus their attention on pay. Some of the figures are staggering. Let me be clear: I am new Labour to the core. I have no problem with successful business people earning a lot of money, but what happens in this sector goes beyond earning a fair day’s money. I was furious to see that, almost exclusively on the back of the British taxpayer through Help to Buy, Persimmon awarded its former chief executive Jeff Fairburn a staggering £75 million bonus, despite an appalling record of utterly substandard homes. How can that be right or fair?
Housing and Home Ownership
Jack Lopresti Excerpts(5 years, 6 months ago)
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Neil O'Brien
The hon. Lady has a very interesting idea, but I am not familiar with that measure. I will have to go away and look at it.
Outside of the cities, we generally build right up to existing developments. I see that in my constituency.
Jack Lopresti (Filton and Bradley Stoke) (Con)
I thank my hon. Friend for giving way and bringing this crucial debate to the House. Does he agree that unless we radically reform our local planning system, we will never get the planning applications through and the houses built that we need? We need to build in huge numbers—more than the Government are proposing at the moment.
Neil O'Brien
I utterly agree; I was about to make that very point. At the moment, we infill bits on the edges of every village and town. We are effectively building in the places that annoy people the most, so we do not build enough homes, as my hon. Friend said. When we do that, we cannot keep up with the infrastructure needs of these places, because it is physically impossible. Perhaps the primary school is on too small a plot or we cannot widen a road that has become a rat run because there is not enough money to meet infrastructure needs.
Previously, we did things very differently. There was the new towns programme: those new towns now house more than 2 million people very successfully. They are fast-growing places. Mrs Thatcher created docklands in London and Liverpool, and the model was roughly the same for both. A development corporation would buy land cheap at existing low values. It would assemble the land, install the infrastructure and sell on that land for uplifted values, therefore paying for itself. That model has been used successfully all over the world.
Oral Answers to Questions
Jack Lopresti Excerpts(5 years, 10 months ago)
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Mr Speaker
I must say to the Minister that on Saturday at the Buckingham literary festival I met one of his constituents, and I told the constituent that the hon. Gentleman was a clever fellow.
Jack Lopresti (Filton and Bradley Stoke) (Con)
Dominic Raab
Thank you, Mr Speaker, for your kind words.
Through the changes that we are making to the national planning policy framework, we want to streamline the process to get homes built and, particularly through our emphasis on the housing delivery test, to make sure that homes are built for the next generation.
Local Government Funding
Jack Lopresti Excerpts(6 years, 1 month ago)
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Jack Lopresti (Filton and Bradley Stoke) (Con)
I welcome the funding settlement approved by this House last month, which will see my own local authority of South Gloucestershire given an additional £3.2 million in funding. This will have a number of positive consequences, based on the budget agreed a week after this funding was announced.
The school improvement fund will double, meaning that more help will be available to ensure our children get the most out of their education. I am most proud of the fact that the extra £3.2 million will allow the council to act to help care leavers, meaning that they have increased opportunity to meet their own potential. As well as receiving council tax relief, care leavers will benefit from a programme to encourage apprenticeships. I have spoken many times before about the power of apprenticeships to encourage social mobility. I am very proud to see the money being put to such good use, so our youngsters can fulfil their true potential.
The Conservative leaders of South Gloucestershire Council have ensured that the budget is balanced for this year. It is regrettable, however, that that balance was achieved with a 5.99% increase in council tax. The introduction of council tax referendums from 2012 was the expression of a key Conservative principle that taxation should be by consent, with a mandate and as low as possible. It is, however, no surprise that when the threshold for a referendum is a 6% increase, we see a number of councils raising tax by 5.99%. A cynical observer may suggest that they do not want the public scrutiny that would come with a debate and a referendum. The lesson of Northamptonshire County Council is that financial obligations cannot be dodged and that the political leadership of our councils cannot be abandoned.
Mr Deputy Speaker (Sir Lindsay Hoyle)
Order. Just one second. We are not going to be able to get Members in. Members have had six minutes each and I have now dropped the limit to four minutes. We are in danger of being self-indulgent if we are not careful. Some people will not get in and that is unfair when this issue matters to every constituency.
Jack Lopresti
Apologies, Mr Deputy Speaker. I was just being polite.
South Gloucestershire Council managed to balance its budget, but if councils are struggling to balance their books and need more money, they should not be afraid to make that case to their residents and ask them to fund the services they need. That would require real political leadership and potentially expose some uncomfortable facts, but it would be the responsible course of action. I sincerely hope that, buoyed by the funding increase this year, South Gloucestershire Council takes this opportunity to look carefully at the governance of the council and how effectively it works.
Sir Greg Knight
I am grateful to my hon. Friend for giving way. Does he agree that one thing councils should not do if they are trying to raise money is increase in-town and in-city parking charges? In her report, Mary Portas clearly identified that as a disincentive to the public to shop in our town centres.
Jack Lopresti
There has been a big debate in my own area about parking at the Mall at Cribbs Causeway, which remains free. It is always a tough balancing act. Decisions have to be made at a local level to match the circumstances of any particular local authority.
When it works well, an experienced team of senior officers can provide vital support and advice for a council, and they can be an invaluable resource for the elected leaders of councils. However, the dangers can be significant. Too many councils fall into the trap of being officer-led, rather than councillor-led. The leadership of South Gloucestershire Council needs to show political courage. For instance, I do wonder whether South Gloucestershire Council requires a chief executive who is paid more than the Prime Minister, at £158,885 per annum. Indeed, I find myself wondering whether South Gloucestershire Council needs a chief executive at all. As the Department for Communities and Local Government said in 2014:
“the traditional model of chief executive, with a wide public role and a significant salary, is unnecessary and can weaken the ability of a council’s political leadership to set a direction through elected members.”
We must also be alert to the dangers of councils with significant layers of highly paid senior officers putting a real burden on budgets for frontline services. South Gloucestershire Council should really be looking to make sensible savings, for example by sharing back-office costs wherever possible. As well as having a chief exec paid more than the Prime Minister, not to mention a deputy and supporting back-room staff, the council has 15 permanent heads of service. These are joined by one temporary head, four permanent directors, one deputy director, one temporary director and one managing director. Based on pay data published at the end of last year, that amounts to a minimum of £2 million per annum on just 23 senior officers.
This is the kind of scrutiny and debate that councils would face if they held referendums on sizeable council tax rises. They would have to justify officer pay and reduce it where appropriate, and elected councillors would have to regain their role as strategic leaders. Therefore, as much as I welcome the £3.2 million provided to South Gloucestershire Council, I would also welcome any move towards councils having to publicly justify their rising costs through a referendum, trusting the verdict of the people.
Council Housing
Jack Lopresti Excerpts(6 years, 1 month ago)
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Matt Western (Warwick and Leamington) (Lab)
We are all agreed: the UK has a housing crisis. No matter which party is speaking, there is universal recognition of the desperate need to urgently increase the supply of housing. So there is no debate, then, is there? The global financial crash had a catastrophic impact on the house building industry in this country. Given that much of the credit crunch was down to bad debts, particularly those resulting from bad lending in the US domestic housing market, this was perhaps to be expected. In just two years, the number of homes built crashed by 30%, and with this the supply of housing just dried up. That economic shock forced the then Labour Government to drive for affordable house building as part of an economic stimulus programme to help the country through the deep recession.
By 2009, the foundations for a new era of affordable house building were laid, with a £4 billion annual affordable housing programme, backing for councils to receive grant funding and build new council housing, full localisation of council housing finance agreed with the Treasury to boost building still further, and a programme of progressively higher standards agreed with industry to make all new build homes zero carbon by 2016. It was a comprehensive programme.
Since the change of Government in 2010, public policy has been perceived as at best indifferent and at worst hostile to affordable housing. One of the first decisions made by Conservative Ministers after the 2010 election was to cut back new housing investment by more than 60%. As a result, the number of new Government-backed homes for social rent started each year has plummeted from almost 40,000 to fewer than 1,000 last year. The number of new low-cost ownership homes being built has halved. The plans that Labour left to get councils building 10,000 homes a year were undermined, dashing any hopes of councils being able to build at scale again.
At the same time as the number of new homes being built has fallen, there has been a huge loss of existing social homes. In 2012, right-to-buy discounts were hiked to a massive £100,000.
Jack Lopresti (Filton and Bradley Stoke) (Con)
On a point of information, is the hon. Gentleman aware that since 2010 more than three times as many council houses have been delivered than in the previous 13 years —the golden era of Labour government that he talks about?
Matt Western
Yes, the figures do show that, but if one drills down into the number, one will find that they were provided by Labour authorities, and that is despite the borrowing cap that has been placed on them. Without that cap, to which I shall refer, far greater supply would be available.
Despite a promise that there would be one-for-one replacements, in some areas only one in five homes sold under the right to buy has been replaced. A new kind of publicly funded housing was introduced. Ministers branded it “affordable rent”, with rent set at up to 80% of the market price and thereby directly linked to often unaffordable private market rents.
Oral Answers to Questions
Jack Lopresti Excerpts(6 years, 1 month ago)
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Dominic Raab
The hon. Lady makes an important point but, if she looks at the detail of the new revised national planning policy framework, she will see that there is scope for local authorities to make precisely the distinction that she mentions. I look forward to her support.
Jack Lopresti (Filton and Bradley Stoke) (Con)
When are we likely to get a decision on the fantastic plans for expansion at the Mall at Cribbs Causeway in my constituency? With the greatest of respect, I do not know why the Secretary of State is taking so long, because I do not know what there is not to like about thousands of new permanent jobs, more housing and better transport infrastructure.
Sajid Javid
I should declare an interest, because I have been shopping at Cribbs Causeway many times and it is probably my mum’s favourite shopping complex. It is a live planning issue and we are considering it in detail. It is relatively complex, but we will try to reach a decision as quickly as possible.
Oral Answers to Questions
Jack Lopresti Excerpts(6 years, 3 months ago)
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The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Jake Berry)
As the hon. Gentleman will be aware, these growth deals are extremely complicated. That is why I have agreed to meet the backers of the Ayrshire growth deal to talk about how, for our part, the UK Government can take an exciting deal forward.
Jack Lopresti (Filton and Bradley Stoke) (Con)
The Minister for Housing (Dominic Raab)
My hon. Friend is absolutely right. We delivered 217,000 new homes last year, which is 50% more than the last year of the last Labour Government. We want to get that level up to 300,000. We have planning reform, release of public sector land and targeted funding to achieve that, which is crucial for key workers, the next generation and those on low and middle incomes.