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Social Housing in London

Absolutely. That is the question that we wish to put to the Minister, and I hope that he will respond. We are not asking, ““Have you taken housing benefit from someone who was receiving £100,000?”” We would hope that that would be looked at carefully and sensibly, and we hope that if that was suggested, it would be done. What we are asking is why the Government are taking from families on low incomes in enormous housing stress and multiple deprivation their one lifeline of accommodation. Let me park that issue and move on to the next, which is ever so important—the supply of affordable accommodation in London. As has been said by everyone, it is obvious that we need to increase supply to tackle severe housing stress in London. Let me repeat something that was said earlier, now that the hon. Member for Brentford and Isleworth is back in the Chamber. She was asked how much grant funding had been slashed: it has been slashed by 63%, and how the Government can stand by and say that they can sustain the supply of affordable rented accommodation on the basis of a 63% cut beggars belief. Their argument is that the revenue from higher rents can be used to build houses that would not otherwise be built because grant is not available. The first thing that should be said about that is that the Homes and Communities Agency says that it will provide grant funding towards the building of accommodation, but only where the expectation—that is the word used— is that the rents will be close to the maximum 80%. It also says that the tenancy should be of two years or thereabouts. Therefore, it is looking to set conditions. What will be the impact of those changes? Everyone who has spoken from the Opposition Benches has already mentioned this, but I will say it again for emphasis. According to independent figures produced not by Opposition Members or Labour-dominated local authorities, but by independent commentators, in the year to 2011—before all this comes into place—there has been a 20% drop in housing starts. There is forecast to be a 40% drop between 2010 and 2013, and, as has already been said, because of the uncertainties and the dramatic change that is being brought in by the Government, the whole thing falls off a cliff after 2013. I hope that the Minister will give some reassurance that the Government are aware of that problem and will do something about it. I tried to get figures out of my local authority. It proudly proclaimed that in the years from 2008 to 2011 it would reach the target of building 648 new properties, but it takes a long time to build houses, so they were all built—if I may put it this way—under the administration of the former Mayor of London, Ken Livingstone. It also tells me that a significant reduction is anticipated. It could not quantify that, and it is still early days to be able to do so, but the local authority was secure in the knowledge that the number would be significantly lower. Therefore, what credence can we give to the figures being produced by the Mayor of London, and what are the Government doing to address this problem? The problem with the slump in the supply of accommodation is the affordable rent model and the complex interaction between ““affordable””—however that is defined; we seem to be redefining it continuously—and the introduction of universal credit in 2013. As background to this, in my local authority two thirds of all social tenants are on housing benefit, either partially or fully, so this affects a large proportion of my electorate. Comparisons of social rents with market rents show where the problem arises. In my local authority area, for one-bedroom accommodation it is 40% of the market rate, and for three bedrooms it is 33%. For RSLs, the equivalent figures are 45% and 41%. But on re-lets, where the rent goes up somewhat, it is 58% for one bedroom and 42% for three. It goes down even further for larger accommodation. I would like to spread a little good news to ease the situation for the Minister. Under the current rules, accommodation in Enfield is affordable, whether one is working or not. But as was mentioned earlier, under universal credit the figures will be capped at £500 a week. My local authority has worked out that if rents are set at 80%, as is being suggested, an average family, living in three-bedroom accommodation, will pay 46% of their universal credit in rent. They will have only 54% left for all the other necessities of life. If, on the other hand, we use the definition of affordability used by Enfield, and I think by many others, which is that no family should pay more than 30% of their income in rent, and no single person or childless couple should pay more than 35%, on a three-bedroom property they would pay only 52% of market rent. So there is a very stark choice for everyone. We do not yet know what the definition of ““working”” will be; it has been suggested that the cap might not apply to working households, but we do not know what ““working”” means. Many people in my constituency—and, I suspect, all over London—are in work, out of work, back in work and back out of work. How will it all pan out? I hope that the Minister can reassure us that the Government recognise the problem that I am trying to convey and have solutions to it.