My Lords, sitting in an office in London dreaming up flexibility to the planning laws to encourage more housing sounds a good use of time. I know; I have done it myself as Planning Minister. I just want to give a cautionary tale. It comes from my former constituency and concerns the Westminster Road area of west Handsworth in Birmingham.
Some 20 years ago, when I left the Commons, the private rented sector in Birmingham accounted for some 10% of households. By 2018, it was 33% and growing. An area that was saved in the 1970s and 1980s by the urban renewal programme of half a dozen streets
in Handsworth, half a mile from the Commonwealth Games village has gone backwards to the 1960s, according to residents. The successor to the specially formed housing association in the 1970s, which did much to enhance and improve the housing, is pulling out. Midland Heart housing association has no heart in Handsworth. The door has been opened up for a new breed of landlords to buy up the larger properties, either for HMO use or the more lucrative supported housing.
Recently, a for sale notice by agents Bairstow Eves stated, “For sale: potential 17 bedrooms”—a clear signal for exploitation. Across the area, landlords are converting garages, outhouses and even sheds into what are cynically called bungalows. For example, signs appear on the front walls of houses stating “Bungalow 6A and 6B at rear”. At 61 Westminster Road, a house converted into an HMO some years ago, providing 11 units, the landlord recently converted four garages in the back yard into living accommodation, with a secure fence to hide what had happened. There is evidence that residents of these dwellings are told to dump their rubbish in black bags on the opposite side of the road.
No. 229 Church Hill Road was a large family house. Used as business premises, it is now applying to be an HMO by claiming it was a “hostel”. No. 22 Livingstone Road, a former family home, has been converted in three social rented flats. Midland Heart cleared the tenants out and sold it at auction in Liverpool for £260,000 on the basis that it would generate an income of £18,000 a year. The new owner maintains that it is still flats, but locals see it run as an HMO, and just two of the tenants are generating over £27,000 per annum.
The HMO Action Group in Handsworth describes it as a “community under siege”. This is a cautionary tale. It ought to be taken note of.