A housing chief has warned that Labour’s plans to ensure more homes are available for Londoners would result in ‘limited progress’. Ahead of the General Election on July 4, the expert has called for an additional measure to make sure houses can continue to be built.
Labour’s deputy leader and shadow housing minister, Angela Rayner, told MyLondon last week that her party would seek to tackle London’s housing ‘supply problem’ as hundreds of thousands sit on borough waiting lists. Speaking during a visit to the Westway Trust in North Kensington on Thursday afternoon (June 20), she also said that getting rid of Section 21 ‘no fault’ eviction notices would help cut the number of people left homeless in the city.
This would involve changing planning rules so that so-called ‘grey belt’ land – a class between green belt and brownfield – could be utilised. “We have to deal with the supply problem that we have got as well, and that’s why we’ve got a programme to build more social houses,” Ms Rayner said.
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“With a Labour government, working with [City Hall] to deliver that, I think we can tackle homelessness […] and also make sure that people can get the houses they deserve. That security is very important. It affects families, it affects your job, it affects every respect of your life.” She then described house building ‘in terms of growing the economy’ as a ‘number one issue’ for the party, and Labour would ‘deal with the planning situation’.
‘Progress will be limited’
But, Fiona Fletcher-Smith, Chief Executive of L&Q and Chair of the G15, representing London’s largest housing associations, has now said: “I welcome the Labour announcement on increasing social housing in London. However, without a guaranteed long-term rent settlement, progress will be limited.”
The Government has announced that, annual rent increases will continue to be capped at Consumer Price Index (CPI) of inflation plus one per cent for 2025-26. Inside Housing reports that social housing rent rises are usually capped by the government at a maximum of CPI plus one per cent, set in September every year.
Ms Fletcher-Smith added: “This policy – which would come at no cost to whoever forms the next Government – is crucial for providing the stability and financial certainty housing associations need to continue investing in building new homes for Londoners. Anything short of this will fail to fundamentally address the issue.
“And according to new research published by my colleagues at the G15, the cost of not housing the 323,800 households on London’s waiting lists is £7.7 billion. Providing these homes is a vital asset to the country, generating significant social and economic benefits.
“A long-term rent settlement would give housing associations the financial certainty to continue building the homes the capital desperately needs.”
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