Housing and Planning Bill (Twelfth sitting)

Helen Hayes Excerpts

Thursday 3rd December 2015 Public Bill Committees

[Matthew Pennycook]

That is not a public subsidy and the hon. Gentleman misunderstands my point. HRAs are self-financing. We are not talking about the two thirds of tenants in council housing who claim housing benefit, but there are problems in that regard. That is an economic subsidy from Government.

[Helen Hayes (Dulwich and West Norwood) (Lab)]

I want to make a similar point. The procurement of affordable housing through the planning system is not public subsidy, but the use of the democratic planning system to ensure that development provides what local communities need.

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[The Chair]

Before I call the next speaker, it may be instructive to note that we have spent an hour and a half dealing with two groups of amendments. On the basis of the amendments that have been tabled, that would imply that we would need a total of 60 Committee sittings, lasting well until the new year, were it not for the programme motion. Therefore, it might benefit the whole Committee to consider the Bill sensibly, and to try to make our deliberations as speedy as possible to avoid missing out a large part of those deliberations. Of course, that is a matter for the Committee and not for me. I merely observe the statistical point.

[Helen Hayes]

Thank you, Mr Gray. It is a pleasure to serve under your chairmanship. I want to speak to this group of amendments because they cover and address many concerns that have been raised with me by three organisations: Southwark Council, Lambeth Council and the Southwark Group of Tenants Organisations, which represents all of the tenants and residents associations in the London Borough of Southwark. Between them, those organisations have responsibility for and engagement with huge numbers of social tenants. The points that they have to make are worth the Committee hearing and considering.

The organisations have expressed concerns to me about the impact of the pay-to-stay clauses on the erosion of mixed communities, as mentioned by my hon. Friend the Member for City of Durham. In boroughs such as Lambeth and Southwark—and, indeed, in my constituency within those boroughs—some very wealthy communities live cheek by jowl with housing estates. Critical to the success and wellbeing of those communities is the mix that exists at a micro-level in and among our estates.

When I meet some of my most successful, thriving tenants and residents associations, I find that long-term, elderly tenants are supported by newer, younger tenants and homeowners. Hardworking people with professional skills support much more vulnerable tenants who need help and need their neighbours to look out for them. I am concerned that the clause will have a detrimental effect on the mix, which keeps our communities healthy. I want all my communities, irrespective of tenure, to be successful. Having a diverse mix is critical.

I have deep concerns that pay to stay is a tax on aspiration, which will prevent people from taking additional hours at work, or from seeking promotion or a pay rise for fear of facing increased rents or losing their home. It is also a tax on aspiration to the extent that people who manage to increase their level of pay will be prevented from saving for a deposit to achieve their aspirations of home ownership.

[Mr Bacon]

Does the hon. Lady not agree that an innovative housing association might consider combining pay to stay with an eventual translation of increased rents over a period of time into equity that becomes a deposit, so that a tenant who has been in the same dwelling for a long time can eventually become the owner?

[Helen Hayes]

That brings me to my next point. As a consequence of pay to stay, some tenants might feel under pressure to consider home ownership when their financial circumstances mean that that is not a sustainable option for them to undertake in the long term.

In my nearly six years as a local councillor, I have seen many examples of tenants who have bought—either under right to buy or more often the second purchases of original right-to-buy properties—at very high levels of mortgage and are then affected by major works bills. That affects the viability of their home ownership and puts them under threat of losing their home.

Many people aspire to home ownership as the right thing to do but we must ensure that it is sustainable.

[Mr Bacon]

Does the hon. Lady not understand that, in the world that is eventually coming, innovative housing associations will offer a menu to tenants? They could offer them a chance to buy, and for tenants who find it is too much when they have bought, they could offer on a slide rule to go back into tenancy. It is perfectly possible to imagine an innovative housing association, an independent body, coming up with such a formula.

[Helen Hayes]

I agree with the hon. Gentleman that a menu of options is a good thing. However, the clause will be introduced immediately while the rest of the social housing sector is still gearing up. I am concerned about the immediate impacts of the legislation, in a world where the menu of options he described is not widely available and accessible to the majority of tenants.

[Mr Bacon]

Will the hon. Lady give way?

[Helen Hayes]

In the interests of making progress, I prefer not to give way again. I am concerned that, by forcing some tenants into home ownership that may not be sustainable for the long term, the Bill will cause more hardship.

Research undertaken by Savills indicates that 60% of households that cross the proposed pay-to-stay threshold will neither be able to pay market rent nor take advantage of right to buy. They will nevertheless be affected by increased rent, which will stop them from saving and may put them at risk of losing their home.

On a final brief point: it is incumbent on the Government to apply a level of consistency as to who they regard as high earners. I argue that there is a fundamental lack of logic—potentially a fundamental hypocrisy—in designating someone as a high earner in one piece of legislation when they are not recognised as such by Her Majesty’s Revenue and Customs. I ask the Government to consider that point and respond to it.