Affordable Housing

Lord Kennedy of Southwark Excerpts

Thursday 15th December 2016 Lords Chamber

Asked by

[Lord Kennedy of Southwark]

To ask Her Majesty’s Government what assessment they have made of the impact of the availability of affordable housing on the ability of both private and public sector organisations to recruit and retain staff.

[Lord Kennedy of Southwark (Lab)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper. In doing so, I declare an interest as a councillor of the London Borough of Lewisham and a vice-president of the Local Government Association.

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, the Government do not do a formal assessment in this area but we recognise that the country’s housing shortage can act as a barrier to employers recruiting the skills that they need.

[Lord Kennedy of Southwark]

My Lords, the problem is particularly stark in London, where a survey by Grant Thornton found that 84 % of businesses in the capital believe that London’s housing costs and housing shortage pose a risk to its economic growth. When are the Government going to start working with the Mayor of London to build the thousands of council and housing association homes at true social rents that are needed and accept that the overreliance on the affordable rent model, at up to 80% of market rents, is just not working and is damaging businesses, jobs, prosperity and growth in London?

[Lord Bourne of Aberystwyth]

My Lords, the noble Lord will be aware that we have just reached a record settlement in London with a £3.15 billion package, which has been acknowledged by the Labour Mayor of London and widely welcomed, not least by the Labour mayor of Lewisham, Sir Steve Bullock. Therefore, I think the noble Lord will associate himself with that welcome.