I beg to move,
That this House has considered reducing fire risk in high rise social housing.
It is a pleasure to be here under your chairship, Ms Rees, and to speak about the subject at last, because I have been trying to obtain this debate for some time. It is a shame it clashes with the Building Safety Bill evidence session, but that shows how important these issues are to the House, and they will remain so for a considerable time.
The human tragedy of the Grenfell Tower fire was apparent from the morning of 14 June 2017 as the world woke up to the horrifying images of people killed in their own homes in a particularly savage manner. Four years later, the scale and depth of that tragedy are only now being explored. The Grenfell inquiry is still years from resolution, however, interim investigations, such as the Hackitt report, have provided some clue to the comprehensive failures in the building industry. The Government have been slow to legislate, but earlier this year the Fire Safety Act 2021 was passed and Parliament is currently considering the Building Safety Bill.
Much focus has rightly been on the priorities for action, such as the removal of flammable cladding from the exterior of tall buildings and who will pay for the huge remedial costs, in particular whether the costs should fall on leaseholders given they had no knowledge of the risks they were taking on and do not have the means to meet bills that, in some cases, are higher than the price they paid for their homes. Members may wish to raise these issues and others today, but my purpose in requesting the debate was to highlight two aspects of the crisis exposed by Grenfell that have not received sufficient attention. It is not by coincidence that they both relate to social housing.
Anyone who watched Daniel Hewitt’s distressing documentary, “Surviving Squalor: Britain’s Housing Shame”, on ITV on Sunday night and saw some of the conditions social housing tenants are living in in 2021 would have been sickened by how far the sector has fallen from its post-war pride and ambition. I am sure every Member present has horror stories of neglect, under-investment and poor service to relate, but Grenfell has exposed how the failure of some Governments to invest and of some landlords to show a duty of care has become a threat not only to the quality of life of millions of tenants and leaseholders, but to life itself.
In the second part of my speech, I want to deal with the causes of fire in social housing, especially electrical fires, and why more is not being done to prevent them.
First, I want to comment on the consequences for social housing landlords and tenants of the costs of undertaking fire safety works. This morning, Inside Housing—all of us, particularly the Government, should be grateful for its investigative work throughout this crisis—published a story that One Housing, one of the G15’s supersized housing associations, recorded a deficit of £25 million for the last financial year. In the same year, it spent £27.3 million on fire safety work to its stock.
Over the next five years, One Housing expects to spend £200 million on such works. Clarion, another of the G15, estimates it will spend £150 million in the next four years, and in total the 12 biggest housing associations will spend an estimated £3 billion over the next decade. Yes, that is right: 12 housing associations will spend £3 billion when the Government’s total building safety fund stands at £5 billion, and the National Housing Federation says the total bill for the sector will be £10 billion. Clarion told me that it expects to receive £5.4 million from the BSF of the £150 million it will spend. That shortfall is significant, not only for the association as a housebuilder and landlord, as we shall see, but for its leaseholders. Like most associations, it will try every other source of revenue, including builders, developers and the BSF. If all else fails, it will bill the leaseholders. Tenants lack even that mitigation; there is no BSF for them. The majority of the costs social landlords must bear will come from their existing income streams—mainly rents—or from diverting funds from other services, from repairs to new developments. Expect more Daniel Hewitt documentaries in the years ahead.
I contacted the main social landlords operating in my constituency that are tackling significant remedial works with a series of questions, including how much they were spending on remediation. The London Borough of Hammersmith and Fulham said it will apply to the BSF but
“the remainder is from the Housing Revenue Account.”
To its credit, it added that
“leaseholders are not being charged”.
Catalyst says that
“overall, we expect to invest over £109m remediating our high-rise portfolio”.
It has secured £22 million from the BSF, but will charge leaseholders where grants are not available. Shepherds Bush Housing says that
“the total cost of our building safety programme is estimated to be over £40m”.
For buildings under 18 metres, or where grant is not forthcoming, it is concerned that it may have to pass on costs to leaseholders. Notting Hill Genesis estimates a bill of £41 million for the last financial year, and will pass on costs where third-party funding is not forthcoming.
Almost every landlord said the unrecovered costs of fire safety works will impact significantly on core functions and other duties. That means fewer, slower repairs and fewer staff to manage properties and to liaise with residents. Members who already have a full inbox of housing casework will groan, as will tenants and leaseholders, at the prospect of a continued rapid decline in the resources and services available.
The most shocking effect will be on development programmes and new home building. Shelter estimates the need for 90,000 new social homes a year. Last year, 6,000 were built. Earlier this year, the Financial Times
carried a report based on evidence from Clarion, Peabody, Network Homes and the L&Q group—four of the biggest landlords—that the number of affordable homes built over the next five years would fall by 40% as a direct consequence of fire safety works. Small and medium-sized associations have even less room for manoeuvre. Shepherds Bush Housing estimates a 50% cut in the development budget and less planned maintenance spend.