Temporary Accommodation

Kevin Hollinrake Excerpts

Tuesday 7th November 2017 Commons Chamber

[Bob Blackman]

The Government have given extra money: £81 million over a two-year period for the implementation of the Act. That might not be sufficient, but we can bet our bottom dollar that the Communities and Local Government Committee, which is going to look at the implementation of the Act, will be on the Minister’s case to make sure that extra funding is provided if it is required. If local authorities do their job properly, they will make savings in the temporary accommodation budget, which should then balance up the costs of their requirements under the Act.

The greatest cause of homelessness is the end of an assured shorthold tenancy. They usually run for six months and at the end of that period families often have to move. The solution is clear: we need longer tenancies and more security of tenure for families, but also assurances to landlords that they will get paid their rent and that the tenants will behave themselves in accordance with the contract they have signed. I ask the Minister to update us on where we are going with lengthening tenancies, which would dramatically reduce homelessness at a stroke. Perhaps we can do that.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

Does my hon. Friend agree that not all tenants want to sign a longer tenancy, as it ties them into something they might not want to be tied into for so long? What we need are asymmetric tenancies, so the landlord signs up to a longer period—three years, perhaps—but the tenant can have a break clause to leave earlier, which would encourage them to sign that longer tenancy agreement.

[Bob Blackman]

Clearly, any tenancy agreement signed would have break clauses in by mutual convenience. That would be appropriate.

Large numbers of children and young people are currently in temporary accommodation, and for far too long. What are the Government doing to make sure that children are put into permanent accommodation with their families in an appropriate way?

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[Kevin Hollinrake (Thirsk and Malton) (Con)]

It is a pleasure to follow the right hon. Member for Tottenham (Mr Lammy), and I congratulate the hon. Member for Mitcham and Morden (Siobhain McDonagh) on securing this important debate. There is no question but that we have a problem in this area; no one can be comfortable with a situation where 78,000 people are in temporary accommodation. That is a 7% increase on the previous year’s number and a 63% increase on the 2010 figure. The number of people living in temporary bed-and- breakfast accommodation is 6,600; there has been a slight decline, of 4%, since the previous year. On the overall context of temporary accommodation, let me try to take some of the party political heat out of this by pointing out that the figure peaked in 2003 at 100,000. Therefore, we need to look at the issue in its overall context. However, that is not a justification or excuse for the fact that we need to move people out of temporary accommodation and into decent housing.

The Government are taking a deal of action on the issue. Obviously, we are allocating £550 million by 2020 to homelessness reduction. The first thing we have to do is reduce the number of people who are becoming homeless. The Government’s ambitious objectives to halve homelessness by 2022 and completely abolish it by 2027 are profound and must be welcomed. I also welcome the work of my hon. Friend the Member for Harrow East (Bob Blackman) on the Homelessness Reduction Act 2017; I served on the Bill Committee. It is important legislation. We heard lots of anecdotes and saw lots of evidence about people who just were not well served when they presented themselves to local authorities in desperate need of advice to prevent them from becoming homeless or to be rehoused. The Act will have a profound effect in trying to help them. It includes new duties for local authorities and a new code of conduct.

I also welcome the Government’s actions on supported housing, which will have an effect in this area. There was concern about the new policies on supported housing, but the Government listened to the Joint Committee comprising the Communities and Local Government Committee and the Work and Pensions Committee on the issue. We looked at that and tried to form a policy that was going to work better nationally and locally. The Government listened and then put in place pretty much what we recommended in terms of looking at the different types of supported housing, including a new sheltered rent category, and ensuring that we have moneys allocated for short-term supported housing.

On wider solutions, I agree with a number of earlier contributors that the fundamental problem we have to solve is the number of houses we are building in this country. That drives all the affordability issues, which are driving many people into homelessness. So we need to build more homes. Clearly, we are building more than were built during the nadir of the housing market crash—it was difficult to build homes in 2008. New homes are being delivered at about twice the rate they were in 2008, which is good—[Interruption.] That is a fact. But we also need to build more affordable homes and more social homes. I agree with the right hon. Member for Tottenham: 80% of market value in many cases is simply not enough. So we must deliver more affordable homes. That works for many people.

[Ruth Cadbury]

How?

[Kevin Hollinrake]

The hon. Lady asks how, from a sedentary position, and I will address that point. The Government have announced an extra £2 billion, bringing the total contribution to £9 billion by 2020.

We must get to grips with the viability assessments. They are a way for developers to avoid their responsibilities to deliver affordable homes or social housing. Some 79% of the affordable homes that should have been delivered through section 106 contributions have been avoided through the use of viability assessments. It was right to bring in viability assessments in 2012, when sites were not viable, but now that that time has passed we should consider a completely new policy on contributions from developers and of course landowners—the money is supposed to come from the landowners—to pay for affordable homes and social homes to rent. I favour a simple system of tariffs, either per bedroom or per square foot, rather than the complex section 106 system, in which a local authority requires a certain percentage of affordable housing. I think such a system would work much better.

[Ruth Cadbury]

The hon. Gentleman is making an interesting point, but if the private sector was expected to meet the need for new truly affordable social rented homes alone, and was required by law to comply with tariffs to the extent that he suggests, is it not likely that the private sector, particularly in London, would just walk away from delivering homes at all?

[Kevin Hollinrake]

No, I do not accept that. There is already a requirement for the private sector to deliver on section 106 commitments. It needs to be fair, not only to the landowner but to the community. For me, too much of the planning gain is going to the landowner and not enough is going back to the community. The viability assessments allow developers to have a race to the top in terms of land prices. I would happily have a longer debate about the matter with the hon. Lady, but I absolutely think that the existing system creates a loophole for developers. Of course it is not just the responsibility of the private sector, and of course the Government need to contribute, as they are, although they need to contribute more.

I have just remembered that I should have drawn the House’s attention to my entry in the Register of Members’ Financial Interests. I have some business interests in the housing market, but that does not affect my keen desire to see more social homes delivered.

Another idea we might consider with respect to delivering more social rented homes is to allow investors to put private rented sector property into a self-invested pension, which they cannot do currently. They can buy commercial property and rent it out, but they cannot do that with residential property. I have talked to the Chancellor and the Secretary of State for Communities and Local Government about why we cannot allow private sector investors to put residential property into a pension, as long as they are willing to let it out at a social rent, or less than 50% of market rents. That is another way we could deliver the social rented homes we need.

Local authorities and housing associations are clearly part of the solution. We should allocate, or allow local authorities to borrow, more money to develop more affordable homes or homes for social rent.

On the issues in the private rented sector, I believe that most landlords are very responsible in delivering decent-quality accommodation in the rented sector, and they will remain a key part of the delivery of decent temporary and permanent accommodation. Nevertheless, we should consider having a property rental standard. The draft Tenant Fees Bill, or other legislation, may give us the opportunity to tag in a property rental standard to ensure that all property in the private rented sector is of a decent quality and that we have decent enforcement, using redress schemes or other bodies.

I agree that we should consider longer tenancies. They should be voluntary for landlords, but there should be incentives. I wonder whether one such incentive could be to allow some dispensation around the section 24 mortgage interest provisions that have been introduced, because they have been received quite badly by many landlords. If landlords are willing to offer longer tenancies, perhaps there should be some dispensation around how we treat mortgage interest in the private rented sector.

I congratulate the hon. Member for Mitcham and Morden again on securing the debate. Like her, I am keen to see much higher-quality accommodation in the private rented sector and temporary accommodation.

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[Rachel Maclean (Redditch) (Con)]

I, too, congratulate the hon. Member for Mitcham and Morden (Siobhain McDonagh). It is a great pleasure to follow her and other hon. Members in highlighting the importance of this critical issue. I understand the importance of temporary accommodation, which plays a vital role, because no child should be left without a roof over their head at a time of their lives when they face a crisis.

This is not a new problem. The number of children in temporary accommodation was at its peak in 2006, and it has come down somewhat since then. However, I absolutely accept that the Government should not be complacent and must do more to continue to bring the number down.

I have sought assurances from Redditch Borough Council, which has 21 units designated as temporary accommodation, that as few families as possible will be sent outside the borough, and I commit to doing more to work with the council to ensure that those numbers are not excessive.

This issue has a number of root causes, which have been admirably tackled by other Members, and I will highlight just three today. The first is, of course, ending homelessness. The Government have shown their commitment to preventing and reducing homelessness, particularly through the Homelessness Reduction Act 2017, which was introduced and championed by my hon. Friend the Member for Harrow East (Bob Blackman), and I thank him for his detailed description of the Act.

[Kevin Hollinrake]

That was not detailed.

[Rachel Maclean]

Well, he has done a fantastic job of championing this issue, and I welcome the work he has done, which all our constituents will benefit from.

The Government are committed to preventing and reducing homelessness, as well as to halving rough sleeping and eliminating it altogether by 2027. Clearly, that is challenging, but they have committed to making real progress by spending over £550 million between now and 2020 to tackle this serious issue. That includes £11.7 million that I am assured has gone to local authorities to help them and that places duties on them to intervene earlier, so that they can be there when families most need their help, which is what we all want to see.

Of course, we need to fix the broken housing market. My goodness, how many times have we heard that in this place? Again, this is not a new issue. For 30 or 40 years, no Governments have built enough houses. We heard absolutely fantastic stories from the hon. Member for West Ham (Lyn Brown) about her experience in a social home. That is definitely where we need to get to. We have heard the commitment to fixing the broken housing market—to diversifying the market—and we have seen progress there, with 333,000 affordable houses, including 240,000 for affordable rent, since 2010.

I accept what the right hon. Member for Tottenham (Mr Lammy) said about the definition of “affordable”. That does need to be looked at, particularly in the Greater London area that many Members here represent. I welcome the fact that in my own constituency of Redditch homes are more affordable in general. In fact, the average age of a first-time buyer in Redditch is 25. There are massive differences across the country, and policy needs to reflect that.

Another reason for homelessness can be the ending of an assured shorthold tenancy. I have heard that there will be some announcements on that in the Budget, so I hope that the Government will bring forward plans to ensure that private landlords can offer longer tenancies where it suits the individual’s situation, as was highlighted by my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake). More security of tenure would very much help families in that situation and help to reduce homelessness. There is no simple solution to this issue, as I hope that I have made clear.

Labour Members have raised the issue of universal credit, which was rolled out in my constituency last week. I visited the housing providers who provide the most homes in my patch, and I also visited the jobcentre. I asked people there what they are going to do to help prevent anyone being made homeless as a result of the changes. They said that they welcome universal credit because it is helping people to get back into work, while for those families who are in work, it is helping them to take on more hours. Debt counsellors told me of the difficulties that families had had before when they could not take on more hours even if they wanted to. This system can work and it can support people out of poverty. In Redditch, there is a very proactive approach, so every claimant is being given the advance by default. I really hope that with this proactive approach families can benefit from universal credit, as we all agree is within the scope of the policy.