House Building: London

Meg Hillier Excerpts

Wednesday 5th November 2025 Westminster Hall

[Bob Blackman]

No, the other one: the right hon. Member for Islington North (Jeremy Corbyn). That meant that whole sites in London were not developed to provide housing when they should have been.

Clearly we have a serious problem here. In my constituency, there is a planning application that has been outstanding, after having been reviewed at various times, for nearly 10 years. It would provide housing units that we desperately need, but the housing association refuses to develop it. It is now trying to sell the site again to further developers.

Our other problem in London is where developments have taken place. There have been developments such as Battersea power station, around Wembley stadium and other areas where housing has gone up, but that housing has not been sold to local people; it is been sold to developers or owners abroad, then rented out at exorbitant cost to local London people, who then have to apply for housing benefit and depend on welfare payments rather than having a home of their own. We have to conquer this.

[Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

The hon. Gentleman made a very good point about overseas sales, although I would contest his statement that people are having to receive housing benefit to live in many of those developments because, as he probably knows, they are advertised overseas by yield. We are seeing homes in London as financial investment vehicles for people who have no connection with this country. Many of those landlords have never even visited the property. What would his party’s policy be to tackle this issue?

[Bob Blackman]

I do not speak on behalf of my party; I speak on my own behalf. As the hon. Lady well knows, I have been promoting building 90,000 socially rented homes a year across the country, and for the past 30 years Governments of all persuasions have failed to build the homes that we need at the prices that people can afford.

The sad reality is that we have to look at how we are going to deal with this. We could deal with the Transport for London land. TfL owns huge amounts of unused land that could be developed for housing, and that could be done in co-operation with City Hall, but the sad fact is—[Interruption.] Government Members need to focus on this: not only was Sadiq Khan as mayor given the money that my hon. Friend the Member for Old Bexley and Sidcup mentioned, but he returned it to the Treasury; he could not spend it because he could not get development under way.

We have to look at what we are going to do across the House to make sure that houses are being built in London. I hope that we are not going to reduce the safety requirements for these buildings. That would be a disaster—we know of the terrible tragedy that happened in Grenfell. We should not even contemplate moving away from what has been done to protect people. Lessening those protections would be a mistake in many ways.

I have a couple of questions for the Minister. How are the Government going to ensure that the affordable homes that we need in London are provided when the restrictions have been removed and developers are therefore less likely to build affordable housing that we need? Before agreeing to this decision, what assessment has the Minister made of the impact it will have on those on the affordable housing waiting lists in London? That is a real crisis, and London councils right now are in desperate need of more finance to build more housing. There are possibilities to develop the brownfield sites that TfL and the Government own, but that is being restricted. There is a solution that we could advance. We hope the Government and the Minister, who I have a lot of respect for, can influence the Mayor of London to make that happen.

--- Later in debate ---

[Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

I congratulate the hon. Member for Old Bexley and Sidcup (Mr French) on securing this debate on such a vital issue. I echo many of the points made by my right hon. Friend the Member for Islington South and Finsbury (Emily Thornberry). Her neighbouring constituency now includes a ward that used to be in my constituency—a ward where house prices are reaching £2.5 million to £3 million in some cases. That is one end of the scale.

At the other end of the scale we have a homelessness situation that is intolerable, with thousands of people on the waiting list. Exactly as my right hon. Friend said, every week I visit people in their homes, which is something that MPs do. We see people where they live, with the problems they have: triple bunk beds with little space for the third child to get into bed; five people in a room; and toddlers with no space to run around. I could give a different example every week, but a real one. This is what we need to resolve, so I welcome the Government’s plan to build more homes.

There are a lot of challenges. The right hon. Member for Aldridge-Brownhills (Wendy Morton) mentioned the “brownfield first” approach as a priority. There are plenty of brownfield sites in my constituency. I say “plenty” but, like the constituency of my right hon. Friend the Member for Islington South and Finsbury, my constituency is very small in relative terms but expensive to build on.

House prices in Hackney are 18.5 times average income, so all the young professionals who might want to get on the housing ladder are stuck in shared accommodation, as my right hon. Friend the Member for Islington South and Finsbury said, and families are stuck in social housing, crowded and unable to go anywhere else because they cannot afford private rent, which gives no security anyway. Homeless families are increasingly in hostels for years. Only six years or so ago it would have been about six months before people had a chance of getting some sort of property, and now people are being moved out of the borough, wrecking their lives and opportunities.

We have 3,400 homeless households in temporary accommodation, which is a big issue for us all and costs the taxpayer a lot of money. It does damage to the families and the children’s opportunities. It breaks our communities, and all taxpayers have to fund that, so we need to resolve it. We have a total of 8,500 households on the council’s housing register, and the notional wait for a three-bedroom property is over a decade—it is a nonsense wait, because by that time the children have grown up. Around 44% of Hackney residents live in social housing. We have more private renters than homeowners and that level of social housing residents. Even though house prices are going up for some, the housing situation is worsening for many others.

Hackney council has been great at delivering properly affordable social housing. Affordable homes, which include both social rented and intermediate, make up 57% of council housing-led delivery. In crude terms, if Hackney council wants to build a home because of the land value, which I will touch on, it has to build one for private sale to pay for the one that is for intermediate or social rent. When I say to people, “We are working hard to get you a house,” they look at the houses I am pointing to on the neighbouring bit of land and say, “Will I get one of those?”, and I cannot, hand on heart, say that they will within any reasonable period of time. The devastation this is having is surely feeding into our special educational needs and health crises. It is just not long-term sustainable.

Since 2022, the current council period since the last council elections and between now and next April, 956 council homes for social rent have been in design, planning or acquisition or under construction. It is cheaper to buy back a leasehold property on a council estate than it is to build new, because it costs £450,000 in Hackney to build a new social rented home. It is no wonder we are having challenges delivering and no wonder that the Government and the Mayor of London are trying to work out a way to get more homes built. If they are all for private rent, we are going to exacerbate the problem, so we need to work that out. Construction costs are now around £5,000 per square metre compared with £1,000 to £1,500 a decade ago. That is being led by a number of issues globally, including Brexit, but this is the reality we are dealing with. When I looked at this in my previous role on the Public Accounts Committee, the Government’s own figures showed—I am sure the Minister is aware—that bricks and mortar subsidies offered the best value for money for the taxpayer to try to resolve the problem.

We need things not just on brownfield but on grey belt. I do think that the green belt has some grey belt —we need to be realistic about this. Bits of old car park that no one is using could be turned into homes. We need to be creative when looking at this.

[Wendy Morton]

The hon. Member makes a really important point about grey belt. I completely understand her example of a car park, but grey belt needs much clearer definition, because we are seeing cases of development that inspectors are now saying is grey belt when it is actually greenfield, and that is really damaging to our communities.

[Dame Meg Hillier]

That is a fair challenge, and I am sure that the Minister will pick that up. It is important that we all know where the goal posts are.

I would like to ask the Minister about the release of public land. This is something that I have looked at over the years. Whether it is the Ministry of Defence, Transport for London or the Department of Health and Social Care, the Treasury has, over many Governments, insisted that that money goes back to the Department. On one level, that is completely logical, but looking at hospitals or schools, if that land could be used for housing, it would help teachers, nurses or doctors to live locally.

[Munira Wilson (Twickenham) (LD)]

I have long campaigned on that issue. I have a disused police station in my constituency, in Teddington, and we want to turn it into a GP surgery and social housing. I tabled an amendment to the Planning and Infrastructure Bill to ensure that public sector sites are redeveloped for public good. Unfortunately, I have had no response from the Minister. Does the hon. Lady agree that that would be a good amendment to make?

[Dame Meg Hillier]

I hear what the hon. Lady says, but I also recognise that there are financial challenges with the Treasury signing a fairly blank cheque to say that all public land could become housing. We need to be creative about this, and that is where we need a mixture of local knowledge and some flexibility from the Treasury. For example, the change of use of school sites was quite gummed up in the Department for Education under the previous Government. We need to make sure that any change of use can be dealt with relatively quickly. It will be better for health and education outcomes if we use that land for other things.

We need a national mission on housing, and I applaud the Minister for leading on that. Does he have any plans to limit further overseas purchasers buying these properties? It is great for developers, because they get that cash in, but we need to prioritise local people, and tax does not seem to be doing it. Does he have any thoughts about restricting Airbnb? I know well the blocks that my right hon. Friend the Member for Islington South and Finsbury was talking about, because during covid, people paid rent to go to those places to isolate, but they were not proper homes. That is having a devastating effect on school numbers across London. Could the Minister look at the costs of building? The long-term costs of not doing it will be enormous, and we need to support those families who desperately need social rented housing.

[David Mundell (in the Chair)]

I ask our last three speakers to stick to their five minutes.