Mr Calvin Bailey

The hon. Member is right, but we cannot adjust the market situation without adding more houses to the stock. Once we have increased the number of houses, we can start tackling the private rented sector. We are doing so, and I hope that the Minister will expand on some of the measures that this Government are taking to bring our landlords into line and improve the quality of the private rented sector. As a result of the problems I have described, London’s boroughs are facing an unprecedented financial crisis, one that threatens the vital public services that millions of Londoners rely on, including my constituents in Leyton and Wanstead. Our communities are strong, but we also face significant challenges, ranging from crime and antisocial behaviour to a shortage of decent, affordable homes and the need for better opportunities for young people. All those issues can only be addressed effectively if our excellent councils can invest in our future. Many councils are now teetering on the edge of issuing section 114 notices—meaning effective bankruptcy—and those risks are increasing, because the drivers of increased costs have simply not been accounted for. Seven London boroughs, nearly a quarter of the total, require exceptional financial support for 2025-26 amounting to over £400 million, and London accounts for almost a third of the total national EFS funding of £1.3 billion. We need to seriously engage with these challenges and chart a sustainable path forward. According to London Councils, London boroughs are forecast to overspend by £800 million this year; particular pressures include homelessness at £330 million, adult social care at £200 million and children’s social care at £160 million. The cost to the public purse will be so much greater in the long run if we do not deal with this crisis now. By far the most acute financial pressure facing London boroughs is homelessness. The scale of the crisis is staggering: London Councils assesses that one in every 50 Londoners is currently homeless and living in temporary accommodation, including nearly 90,000 children. First and foremost, this is a human tragedy. Like many other colleagues, I have been engaging with individuals and families who are suffering as a result of the housing crisis, including a very powerful visit that I had this Christmas with Crisis in central London. In addition to this human suffering, homelessness represents the fastest-growing financial risk to London’s local authorities, with our councils spending £4 million per day on temporary accommodation—a figure that has surged by 68% in just one year.