Affordable Housing: Planning Reform

Rachael Maskell Excerpts

Tuesday 7th December 2021 Westminster Hall

[Rachael Maskell (York Central) (Lab/Co-op)]

It is a pleasure to speak in this debate, Dr Huq. I thank the hon. Member for St Ives (Derek Thomas) for opening the debate. I want to reinforce much of what he said, because the challenges that we have in York seem to replicate those in Cornwall and elsewhere across the country.

We have a housing market that is out of control and heating up at pace, year after year. When I bought my first house, the housing affordability ratio was 3. In 2019, in York, it was 8.3. Right now it is 11.7. So, just in the period of the pandemic, it has already risen significantly and is increasing even today. In York it is growing faster than anywhere else in the north, or indeed, I understand, in the country, at 14% in the last year. York is a very desirable place to live and, with new ways of working, people now realise they can live in York and still have a base in London.

People’s patterns are changing, but the housing crisis is just escalating for us. We cannot recruit skilled workers, the tourism and hospitality sectors are struggling to function and, while social care has not been able to recruit for some time, we are now seeing graduate professions, such as working in the NHS, coming under significant strain. People cannot afford to live in York, but we need their skills. Therefore, the impact of the housing crisis is showing itself in the economy.

As the luxury and investment markets increase, the housing market is heating up further. I understand that estate agents can, and do, now name their price and that investors see opportunity. Why are we in this situation? There are so many questions to be asked, including why we see housing as at asset at all, when we know it should be a human right. York’s social housing numbers have also been falling, but at the same time, the waiting lists have increased threefold since I have been an MP. Affordability is completely unaffordable in York. In post-industrial cities such as York, like in many areas of the north, there is an economic dependence on low-wage and insecure work. Housing poverty is a reality for vast swathes of my constituents. In the private rental sector, behind Bath, Brighton and Oxford, York is the fourth least-affordable place to rent outside of London—and the least affordable in the north. When 61% of renters have no savings, a future of home ownership is completely unrealistic. This traps more people in housing poverty.

Over the past decade, the City of York Council has only built an average of 36 affordable homes a year, and has seen a net loss of its social housing stock. Over 200 of these units lie empty, awaiting repairs, but the council is struggling to recruit the necessary skills to bring them back into use because traders cannot afford to live in York. That means that we have a skills shortage preventing us from bringing those properties into use. That is a problem right across the industry; it shows how investment is needed to get control of the housing market—to then get control of the economy.

Of those who are lucky enough to rent, many are living in box bedrooms—I am talking about whole families—or damp, mouldy homes. That is completely unacceptable. As in Cornwall, York is being absolutely overrun by Airbnb’s, holiday lets and second homes. Over a quarter of the housing stock is owned by private landlords, who can literally name their price. In addition to the measures laid out by the hon. Member for St Ives, we need to collect proper data, both on what domestic residential properties are being used for and on Airbnb’s and holiday lets. We also need to ensure that we have a mechanism or lever to secure homes for primary occupation, as opposed to other use.

York’s local plan is with the inspectors; this is an issue that runs sore in our city, so we want to see that come forward as fast as possible. However, the local plan process was designed for a different era; I put it to the Minister that we need to refresh and overhaul that process, so it is not just about numbers but about looking closely at tenure and what is needed to join up the housing and economic needs of an area. We need to look at longer-term development, and ensure that it is hardwired into what we are doing. As the Minister knows, we have a massive site in York Central that is owned by Homes England and Network Rail, which are public sector organisations, and yet the demand on Network Rail is to release that land as a capital receipt, in order to see investment over 60 or 70 years that will enable housing to be built to meet local needs in the right forms of tenure.

There are so many things that I could speak about today, but I will end by saying that the issue of land banking must be addressed. Developers’ ability to sit on land without having to pay the price, needs to be brought into focus. Today housing is a driver of inequality, and housing is too important to be used in such a way. We need to make sure that we build homes that people can afford to live in, and end this racket in the housing market.