My Lords, I welcome this opportunity to highlight again the current housing crisis and the rise in homelessness, and I am grateful to all noble Lords who have chosen to speak in this debate.
The facts are truly shocking. They are reflected in innumerable reports over the last few years. Charities such as Shelter and Crisis have been sounding warnings for years. Sector bodies such as the National Housing Federation have lobbied hard for an increased supply of homes that can be afforded and are of good quality. The Church of England has produced two important reports re-emphasising the crisis we face, and I am glad that the most reverend Primate the Archbishop of Canterbury has chosen this debate to make his valedictory speech to the House. He instigated the two reports and has shown a strong commitment to ending homelessness. I know that the House will appreciate his many valuable contributions over the years and looks forward to his valedictory address.
It must be a crisis when millions of people and families in this country cannot find or afford a decent home: a home where they feel secure, where they can thrive and where their children can learn. The Labour manifesto was clear that the housing crisis was a national priority and committed to delivering 1.5 million homes over the Parliament. Beneath that headline commitment is an ambition to provide the biggest increase to social and affordable housing for a generation. As I hope to outline today, a major new programme of social housebuilding is more critical than ever, and the role that supported housing can play as a part of that is urgently needed if we are to make any progress in dealing with homelessness.
In the Autumn Budget, the Chancellor promised to deliver not only a £500 million boost to the affordable homes programme but flexibilities to councils when using right-to-buy receipts and consultation on a new social housing rent settlement. On homelessness, additional funds of £233 million were announced—a positive initial step, but these are only foundations on which to build. Demand will still exceed supply even if that target is fully met. Housing has an impact on health policy, education policy, immigration, justice, transport and employment; just about every arm of government has a role to play in addressing this crisis. It is a huge challenge for the Government and for the Minister. I urge the need for a long-term strategy, which will depend on achieving not only cross-departmental support but some degree of cross-party support for long-term policies that can be sustained beyond the lifetime of one Parliament or one Government. I hope the party opposite will agree to play its part in achieving this.
The sheer scale is daunting. Over 8 million people in England cannot access the housing they need, with a large portion requiring social housing. National Housing Federation research into overcrowding found that more than 310,000 children in England are forced to share beds with other family members. One in six children is living in cramped conditions—that is around 2 million children.
My Lords, I am grateful to the noble Baroness, Lady Warwick, for sponsoring this debate and introducing it in such a compelling and moving way. Like her, I also look forward to the valedictory speech from the most reverend Primate the Archbishop of Canterbury. I pay tribute to the work of the Church under his leadership in raising the profile of housing and identifying some solutions, and, in particular, to the report of his commission on housing, Coming Home, which was published in 2019. I am sure he will want to develop some of those themes in his speech today.
This debate follows a similar one in March this year, which I initiated. I started that debate by saying:
“I want to outline what steps might be taken in the next Parliament to improve housing outcomes for everyone”.—[Official Report, 14/3/24; col. 2208.]
I then outlined a large number of policy changes and, in response to three of my suggestions, the noble Baroness, Lady Taylor, then in opposition, said:
“He raised some important issues around downsizing incentives, incentivising to sell properties from the private rented sector and institutional finance, especially pension funds. That is something we definitely have to look at”.—[Official Report, 14/3/24; col. 2231.]
So I will briefly refer to those three initiatives and gently inquire about progress.
I begin with the last, as the need for institutional finance for rented accommodation has been underlined by the passage of the Renters’ Rights Bill. I support that Bill, as I did its predecessor, the Renters’ Reform Bill, but, as I said then, it must be accompanied by measures to increase supply. All the evidence is that private landlords are exiting the market—a process accelerated by the recent Budget. The number planning to sell is predicted to grow exponentially next year, with a massive 41% of private landlords planning to sell at least some rental properties and only 6% planning to buy.
My Lords, I first remind the House that I am a vice-president of the Local Government Association. I thank the noble Baroness, Lady Warwick of Undercliffe, for this debate. I agree with her that we need a long-term strategy and that the scale of the problem is daunting. I also thank the noble Lord, Lord Young of Cookham, for his important suggestions around the private rented sector, in particular the potential impact of the increase in stamp duty on rent levels in the private sector.
There have been many reports on the housing crisis and how to address it from Shelter, Crisis, the National Housing Federation and the Affordable Housing Commission, which is chaired by the noble Lord, Lord Best, and was established by the Smith Institute with the support of the Nationwide Foundation. Of course, Homes for All, the Church of England report published earlier this year, rightly talked of our moral duty to ensure that all households have access to affordable, safe and quality homes—and I agree. It is appropriate that the most reverend Primate the Archbishop of Canterbury has chosen this debate to make his valedictory speech.
All those reports have urged that a national housing strategy and affordable housing—that is, genuinely affordable housing—should be a national priority. Today’s homelessness figures give us a stark warning, with 123,000 households, including 159,000 children, in temporary accommodation. Council spending on temporary accommodation reached £2.29 billion last year, which the National Audit Office said is unsustainable. It is unsustainable, but we cannot solve homelessness without building many more social homes for rent.
We should always remember that secure, affordable homes are fundamental in addressing child poverty. We must build capacity in social housing for rent. I acknowledge the immediate help recently offered by the Government for up to 5,000 new social and affordable homes. I also acknowledge the need to protect new-build social homes. The fact is that around 11,000 council or housing association homes are being built every year but, last year, 23,000 such homes were sold off on knock-down. We must stem the loss of homes for social rent. Indeed, some 2 million homes have been sold under right to buy, of which some 40% are now in the private rented sector, with higher rents in that sector pushing up the housing benefit bill.
My Lords, I am grateful to the noble Baroness, Lady Warwick of Undercliffe, for introducing this debate so brilliantly. I am also looking forward to hearing from the most reverend Primate the Archbishop of Canterbury, who has been a consistent champion on behalf of the homeless and the badly housed.
There is likely to be almost universal agreement in this debate on the need for a huge increase in genuinely affordable, secure accommodation. I am only the fourth speaker, but I find that I will be repeating what has already been said. Perhaps that shows a unanimity of view on the urgency of the situation.
We have heard the figures for homelessness and temporary accommodation; I give special thanks to Crisis for its comprehensive briefing. We know of the impossibly long waiting lists for social rented housing. The Government want the housing associations and councils to build far more new homes, but there is an urgent need for investment in the existing social housing stock. The Grenfell tragedy has highlighted the necessity to spend billions on remediating unsafe buildings. We now have the Social Housing (Regulation) Act, with Awaab’s law, which requires cold and mouldy properties to be treated quickly. It is backed up by an enlarged role for the Housing Ombudsman, so the social housing sector has turned its attention to the need to address its backlog of maintenance and major repairs.
Meanwhile, we see the impact of inflation on building costs, land costs and interest rates. All this means that we are unlikely to build nearly enough new homes to meet the pressing demands. A quick calculation of the proportion of the 1.5 million homes the Government hope to see built during this Parliament suggests that less than 10% of those new homes will be affordable for those on average incomes or below.
So what can be done to dramatically and rapidly increase output of social rented accommodation, at a time when public funds are so scarce? I will suggest three potential ways forward. There has been no pre-discussion of this, but I find that space for two of my three has already been taken by the noble Lord, Lord Young of Cookham. I will expound my three.
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The Archbishop of Canterbury (Valedictory Speech)
My Lords, it is often said and it is a cliché to say it—but hey, I am the Archbishop still—that if you want to make God laugh, make plans. On that basis, next year, I will be causing God more hilarity than anyone else for many years, because the plans for next year were very detailed and extensive. If you pity anyone, pity my poor diary secretary, who has seen weeks and months of work disappear in a puff of a resignation announcement.
The reality, which I wish to start with—then pay some thanks, and then talk about housing—is that there comes a time, if you are technically leading a particular institution or area of responsibility when the shame of what has gone wrong, whether one is personally responsible or not, must require a head to roll. There is only, in this case, one head that rolls well enough. I hope not literally: one of my predecessors in 1381, Simon of Sudbury, had his head cut off and the revolting peasants at the time then played football with it at the Tower of London. I do not know who won, but it certainly was not Simon of Sudbury.
The reality is that the safeguarding and care of children and vulnerable adults in the Church of England today is, thanks to tens of thousands of people across the Church, particularly in parishes, by parish safeguarding officers, a completely different picture from the past. However, when I look back at the last 50 or 60 years, not only through the eyes of the Makin report, however one takes one’s view of personal responsibility, it is clear that I had to stand down, and it is for that reason that I do so.
Next, I want to say thank you to so many people in the House. In these 12 years, I cannot think of a single moment when I have come in here and the hair on the back of my neck has not stood up at the privilege of being allowed to sit on these Benches. It has been an extraordinary period, and I have listened to so many debates of great wisdom, so many amendments to Bills that have improved them, so much hard work.
I have also found that, despite the fact that I still cannot find my way round this building, the staff here are endlessly patient as I look panic-struck when I suddenly find I am standing on a green carpet, not a red one, and have guided me to the right place. I am hugely grateful, and I am very grateful to noble Lords who have been kind enough to send supportive and encouraging notes over the last few weeks. It has been a great privilege and strength to have that.
Housing, as has been said, is one of the key areas of life in any society. When I look back historically—I will not develop the whole history—whenever this nation has taken a huge step forward since the end of the Napoleonic Wars, three things have played a part: housing, education and health. Where they have changed, they have laid a new basis for a healthy society, not just physically but in every way, and I believe that is what we are called to do now.
My Lords, it is a real privilege to have the opportunity to follow the most reverend Primate. We first met in Durham cathedral. It was a great civic occasion, where I was the appointed preacher and he was the recently arrived—merely, at that time—right reverend Prelate. I preached at him and he blessed me, and it has been like that ever since.
A month or two later, in May 2012, the most reverend Primate made his maiden speech in this House. On that occasion, he was still the Bishop of Durham and he toured the heights of his experience, drawing massively on his secular as well as his religious experiences. He has played a large part in the banking and financial sector themes that we have pursued in this House and in Parliament generally. Indeed, he is a towering figure in many other ways. After all, he officiated at the funeral of Her late Majesty Queen Elizabeth and crowned the brand-new King and Queen in his turn.
He has been a great campaigner for women’s consecration to the episcopacy and to see that happen. We cannot divorce him from the achievement of that great step, which has greatly enriched this House. Another of his great themes is on investment that crosses between morality and ethics, on the one hand, and finance performance, on the other.
In a sense, I could pursue a tour d’horizon of the great themes that he has taken some part in, but it would not really get to where I want to be. In his maiden speech, as well as proclaiming the virtues and qualities of the north-east—we remember that Newcastle drew last evening with Manchester City; a very good thing—he also championed the issue of loan sharks and people with payday loans at extortionate rates of interest. They were gone within two or three years of him striking that note. From then until now—choosing to speak on housing and homelessness in his valedictory address—that for me is the theme that runs right through this particular Primate’s life and witness, like the word “Blackpool” through a stick of seaside rock.
I start with the most reverend Primate again. He says somewhere that his beginning—the opening chapter of his life—was messy, and I can say that mine was messy, too. For him, he was three; for me, I was five and a half when everything broke down and darkness descended upon us. I still have the letter from my father’s solicitor to my mother, indicating that she was to take her two boys out of his client’s home within a week—so, my mother, with two little boys, was on the street. For days we were on the street, and a kind neighbour in the little two-up, two-down houses would put us up, but the pressure on their space was great. In the end, my grandparents, who had two rooms as caretakers in a factory, decided they could live in one room so that we could live in the other. I grew up in one room in a brickyard. That was at five or six.
What can I say about homelessness? I have decided I want to say a word about the homeless—let others talk about construction, targets and all of that. What can I remember? I will tell you what I remember. I remember my mother’s face, tear-struck. I remember her despair. I smelled her panic. Before the welfare state, how was she going to put food on the table? How could she cope with life and its demands? How would her boys have a chance to wear shoes and underwear? I remember homelessness, and I have refused to call it homelessness ever since; I call it the plight of homeless people, in order to remind ourselves that homelessness is about people, their needs must be paramount, and we must find ways of forging policies that hold them and their well-being in mind.
Fast forward 40 years and I have inherited a programme of social work that was begun by Donald Soper, of beloved memory. One of his institutions was a homelessness centre, open 365 days in the year, a brilliant piece of work. The work I did in those few years enabled me to become friends to homeless people. One of them, called Tom, would take me around with him. He spoke Hungarian. He had a PhD. His life had fallen apart. He had resorted to alcohol. All of them have stories. Tom took me to where the IMAX cinema is now, on the Waterloo roundabout—I am sure the noble Lord, Lord Bird, knows what I am talking about—where the homeless would gather, often with a fire. They would send scouts from among their own community to the railway stations to see if any children were running away from home and before predators got hold of them. There was an advice centre in the Royal Festival Hall that helped people who were newly homeless to cope.
I thank the noble Lord very much for that wonderful introduction. My family are Irish, and I think they are even more verbose than the Welsh, but we will not have an argument over that.
I should explain why I am not going to bamboozle your Lordships with loads of statistics and why I can probably make very little contribution to what we have been talking about. Ten years after I started the Big Issue, I was asked by the Times what I was going to do for the next 10 or 20 years. I said, “For the last 10 years I’ve been mending broken clocks, and for the next 10 or 20 years I’m going to try to prevent the clocks breaking”.
In 1991 when we started the Big Issue, 501 homeless organisations were with us. They supplied every conceivable thing for a homeless person, from a condom—not a girlfriend, a condom—all the way through to a place where you could clean yourself, sleep and all that. But not one of those organisations ever asked the question that I wanted to ask: when is somebody going to turn the tap off?
Why do we often see homeless people as homeless? I have never met a homeless person whose problem was homelessness. I met someone who, like a social iceberg, had homelessness just above the water where you could see it, but underneath I could see all sorts of things—abuse, social isolation, mental health problems. I saw 90% of the people I have worked with, who I come from, inheriting poverty.
I was with Prince Charles once, as he then was, at a meeting in our building. He said that anybody could fall homeless. I thought to myself, “That’s not quite right”; I could not imagine him homeless. He was trying to create the idea, as so many people do, that anybody can fall homeless. The noble Lord, Lord Griffiths, mentioned a PhD student who could read Hungarian. Brilliant—I could bring you dozens of them, but I could bring you thousands upon thousands of people who have inherited poverty. Because those people inherited poverty, there is a predictability of failure that none of us has ever really addressed.
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An increase in the number of people facing homelessness has been compounded by the cost of living crisis. The latest official statistics show a 10% increase in the number of households who contacted their local authorities due to being at risk of homelessness. A record number of families are homeless and living in inadequate temporary accommodation, which is disrupting children’s education, undermining their well-being and piling enormous pressure on families. Temporary accommodation, predominantly delivered by the private sector, is often of poor quality and unsuitable for families, who report high levels of stress, anxiety and depression.
Temporary accommodation was created as a short-term solution, but the rise in homelessness and lack of suitable social housing means that households can spend years in it, even where social housing is available. The increased need has meant that local authorities have to rely on B&Bs and hotels. This has become a huge financial burden on local authorities, which between April 2023 and March 2024 spent a total of £2.3 billion on temporary accommodation. The number of rough sleepers has also continued to rise to record levels. In London alone, the Combined Homelessness and Information Network has reported a 19% increase in rough sleepers compared with last year.
The last Labour Government reduced rough sleeping by more than two-thirds in their first term by taking a cross-departmental approach. Can my noble friend the Minister update the House on the work of the Deputy Prime Minister’s ministerial task force to end homelessness? Will the Minister commit the Government to working with mayors and local government leaders to achieve this?
The link between homelessness and health is well known. Unmet mental health needs and lack of treatment for substance misuse are known factors that can trap people in the cycle of homelessness. Health is more than just the absence of disease; it is about people’s overall well-being. Health starts at home, and the housing crisis has had an awful effect on people’s health, with long-term consequences. It is increasing the financial burden on the NHS and costing £1.4 billion per year to treat people affected by poor housing.
Housing that is properly adapted to suit the needs of residents and having the right support in place are key to keeping people out of hospital and living independently. The tragic death of Awaab Ishak reminds us that poor-quality homes can also contribute to avoidable deaths and increase the risk of developing asthma and other respiratory conditions. We must commit to ensuring that nothing like this ever happens again.
Overcrowding can put a real strain on families. Reduced privacy and lack of space to study or play have been linked to developmental issues and poor mental health in children. Appropriate housing with support where needed can help relieve pressures on the NHS by enabling timely discharge from hospital, preventing readmissions and helping people access health services early on. Will the Minister ensure that the long-term housing policy is integrated into the ambitions set out in the NHS 10-year plan, to ensure that it looks beyond just the number of new homes and addresses housing conditions and types, affordability and support?
I referred to supported housing. Homelessness schemes are essential to ensuring that people get the support they need to break the cycle of homelessness. But the sector is facing a truly dire financial situation. Cuts to funding and the financial stress of supplying temporary accommodation have forced local authorities to make some very difficult decisions. This has included decommissioning vital supported housing and homelessness services—a lifeline for vulnerable groups at risk of rough sleeping. Despite the increasing need for supported housing, one in three supported housing providers has had to close services in the past year, and 60% expect to close schemes in the future due to unviability. This will lead to an increase in need for temporary accommodation and residential care, and so increase even more the financial pressures on local authorities.
The NAO’s July report argued that:
“Dealing with homelessness is creating unsustainable financial pressure for some local authorities”.
Funding constraints are undermining local authorities’ capacity to prevent homelessness and invest in good-quality temporary accommodation and other forms of housing. I hope the Government are under no illusions about the scale of the pressure that councils are facing after years of underfunding and increasing demand for services. It would be helpful if the Minister could confirm the steps the Government are taking to reset the relationship with local government.
There are some things that can be done quickly. The empty homes round table on 19 November highlighted the urgency of tackling long-term empty homes as part of broader efforts to alleviate housing shortages, reduce homelessness and improve housing sustainability. It focused on the need to improve funding flexibility to enable local authorities to acquire and refurbish empty homes, simplifying enforcement measures such as empty dwelling management orders, and the importance of linking empty homes initiatives to wider national housing, homelessness and retrofitting strategies.
Although the NAO report I referred to was based on the legacy of the previous Government, it presents a further challenge for the Government now as they develop their own strategy for dealing with that legacy of homelessness and insufficient housing supply. Local authorities, along with housing associations, are key deliverers of social and supported accommodation. The Government’s commitment to a long-term strategy is essential if they are to ensure a stable and sustainable building programme. The NAO also warned that funding had remained fragmented and generally short term, and it is worth noting that the constant changes in Housing Minister over the last 10 years cannot have done much to encourage longer-term thinking. I hope this Government will learn that lesson.
I turn briefly to the private sector, which has a significant role to play in housebuilding but has severe limitations. The private market has rarely delivered more than 150,000 homes a year, and in many years fewer than that. The only post-war period where we have built more than 300,000 homes a year was when we were building over 100,000 council homes as part of the mix. Importantly, this was founded on a firm cross-party commitment to the value of social housing. The speculative private housebuilder model means market homes will not build out quickly enough to deliver 1.5 million homes this Parliament. Boosting social and affordable housing will be vital to the new Government’s plans for housing-led growth and delivery. So I hope the Minister will agree that we need a big uptick in social housebuilding, as well as moving ahead with planning reform that will open up sites over time.
I will comment briefly on planning. In recent years, the total number of homes that were granted planning permission fell sharply, from 302,000 in 2021-22 to 236,000 in 2022-23. Can the Minister tell us what the Government are doing to reform the planning system in order to deliver the quality of homes and infrastructure the country is crying out for? I hope these issues will be raised in more detail by other speakers.
Let me conclude. We know that building social homes speeds up and stabilises overall housebuilding, as well as increasing the resilience and productivity of the construction sector and boosting growth. The National Housing Federation and Shelter commissioned research which showed that building 90,000 social rented homes a year would add £51.2 billion to the economy. Social housing is not a debt or financial burden on the Exchequer, it is a precious national asset that we need to invest in, protect and maintain. Will the Minister commit to reinforcing this vital message with the Treasury in the forthcoming spending review?
Increasing the supply of homes alone will not solve the housing and homelessness crisis. We need investment in our existing homes to improve quality. We need to secure long-term, ring-fenced funding to protect supported housing and homelessness schemes.
We should consider the scale of the opportunity as well as the challenge. Every year, social landlords save their tenants £18 billion compared with equivalent rents in the private rented sector, meaning lower-income families have more income after housing costs to spend on essentials. This is a contribution that has been overlooked by successive Governments.
Looking ahead to the spring spending review and the Government’s long-term housing strategy, will the Minister urge her Secretary of State and colleagues at the Treasury to ring-fence funding for housing-related support allocated to local authorities? It is also vital we provide more flexible revenue and grant funding, so that supported housing can deliver and develop according to local needs.
Fourteen years of austerity and piecemeal solutions have had an appalling impact on housing, but solutions remain within reach. Will the Minister commit to working across all government departments to cover all aspects of housing and ensure that this feeds into their long-term strategic planning?
This has an important impact on rents. Recent figures from Zoopla show that there are now 21 households bidding for every property to rent. Recent Budget decisions were branded as “disappointing” by Paul Johnson, the director of the IFS. Referring to stamp duty, he said that
“at least part of the consequence will be to reduce the supply of rental housing and so increase rents”.
We need to put the private rented market on a much more sustainable basis.
Other countries have a different model, which we should progressively adopt. In Europe, long-term institutional finance provides secure, well-managed rental accommodation. In this country, it provides just 2% of the rented stock. We need progressively to reduce our overdependence on the private landlord, who can release this capital only by selling, and get the financial institutions to invest in what historically would have been an even better investment than equities. At the meeting that the Minister was kind enough to hold with me last week, she explained that she was working on this with the Treasury, which also wants pension funds to invest more in the country’s infrastructure—so where better to start than housing? Local authority pension funds have an interest in increasing housing supply, in turn helping the Government to achieve their ambitious target of 1.5 million new homes. We need urgent progress on that front.
I turn next to downsizing initiatives. There are 3.6 million homes with two or more spare bedrooms. Many older people want to trade down or rightsize, freeing up their homes for young families. An older person triggers a chain of movements promoting labour mobility and making better use of the country’s housing stock. In the medium term, the planning system should be much more proactive in ensuring the right mix of new build, and we look forward to next week’s NPPF to see whether there is a step in that direction. Professor Mayhew estimated that we need 50,000 homes per year for older people who want to rightsize, but we are producing only 8,000.
Finally, on incentivising to sell properties from the private rented sector, many families have to rent but, as I have said, private landlords are leaving the market due to high interest rates, concerns about impending legislation, a less attractive tax regime and new energy efficiency standards. We should say to private landlords that, if they sell to their tenant, no capital gains tax and no stamp duty would be paid. This would be not a right to buy but an incentive to sell. This would have a dramatic effect on home ownership for those who would prefer to own and not rent; it would almost certainly lower their housing costs and enable them subsequently to move up the home ownership ladder. The landlord could realise their capital without having to give notice to the tenant. It would be a win-win policy that I would gladly allow the Government to adopt.
I look forward to hearing from the Minister about the progress on the three initiatives that she commended only a few months ago.
I applaud the scale of the Government’s ambition. They have promised the biggest increase in affordable housing in a generation. I welcome this and hope that it proves true. The Government promise 1.5 million more homes by 2029, but we should bear in mind that the chief executive of Homes England said in a recent message to staff that this would need “two parliamentary terms”, while the Centre for Cities has said that the Government will undershoot by 388,000. In any case, a target is not an outcome. Outcomes need plans, and plans need to be published and debated outside of the spending review.
There is a big problem: since 2015, 1 million homes in England and Wales—that is one in three—have had planning permission but not been built. Also, 70,000 housing association and council dwellings currently stand empty—a figure that has been rising. So, as an urgent priority, might the Government address solutions to these two immediate problems?
We should also remember that government spending on housing is at its highest ever level, in real terms. Fifty years ago, 95% went into building and improving homes; today, it seems that almost 90% is going into housing benefit, on which the Government are now projected to spend £35 billion a year by 2028. This is clearly unsustainable.
On the numbers, lots of ambitious targets have been set by a wide variety of bodies. It appears as though the Secretary of State may be thinking of a number lower than some of those reported by, for example, the National Housing Federation. That, I suggest, is a consequence of their understanding of the significant structural problems with delivering large numbers in the short term. We need to build capacity in councils and housing associations. We need a bigger construction workforce and more planning officers. It is not just the planning system but its resourcing. We should bear in mind that more planners can be self-financing.
I welcome the Government’s sense of direction but, with 1.2 million households on local authority waiting lists, solutions have become urgent. Let the Government concentrate on putting in place the foundations we need to address this housing crisis of high demand and inadequate supply. One of those foundations could be that local authorities should be able to buy land at current use value rather than hope value. But the test of success will be that homes become genuinely affordable to those on medium and low incomes.
First, it seems quite possible that the huge expense of the land for development may, in future, be reduced where the uplift in value can be captured for the public good; if necessary, backed by compulsory purchase powers. Where land is bought by local authority arm’s-length development corporations—not least those established for the new generation of new towns and urban extensions—a comprehensive master plan can parcel out sites to a range of private and social developers, achieving quality place-making as well as higher levels of social renting.
Secondly, we have failed nationally to recognise the opportunities as well as the obligations from demographic change. By building specifically for older people, as noted in last week’s Older People’s Housing Taskforce report, significant financial benefits can be achieved. On the one hand, more suitable accommodation for older people pays its way in postponing or preventing hospital admissions, delayed hospital discharges, home-care costs and moves into residential care; on the other hand, each new home for an older person is likely to achieve two for one by releasing a family home for the next generation. This secures the precious asset of a social rented family home at no cost, while better serving the needs of an older person.
Thirdly, a shortcut is needed to secure accommodation for those forced to accept highly unsatisfactory temporary accommodation, and to address the crippling costs of this temporary accommodation for local authorities. An answer lies in channelling funds to the acquisition and modernisation of the private rented properties where landlords want to exit the market, not least under new pressure from the Renters’ Rights Bill coming down the track. The Government could incentivise the outgoing landlords to sell to a social landlord through exemption of capital gains tax. Stamp duty does not work so well because it is paid by the purchaser, and the social landlords will not be paying stamp duty, but capital gains tax presents a real opportunity. This approach, as advocated by the Affordable Housing Commission, represents “Back to the Future” for housing associations, whose main output in the 1960s and 1970s was in buying and improving street properties. It means investing in property rather than paying private landlords exorbitant rents for low-quality, short-term use: bricks, not benefits.
I hope the Minister can comment on these three ways of getting a bigger bang for the public buck: capturing land value; addressing unsuitable, underoccupied housing for older people; and, once again, purchasing and upgrading unsatisfactory private rented housing. Now I am honoured to hand over to the most reverend Primate the Archbishop of Canterbury, and I pay tribute to the leadership and inspiration he has demonstrated in relation to the housing crisis.
There has been much reference to the two reports that the Church of England has issued, and I am in the same place, as much of what I was going to say has been said. So, I will not say it again and will say something slightly different—but very briefly. The Coming Home report that the noble Lord, Lord Young, referred to so kindly, sets out five words beginning with “s” which it decided to recommend as the moral centre of good housing. They are: that housing should be safe, and we have heard and know about the need for that through Grenfell, mould, and the need to improve the safety of housing; that housing should be secure, so that people know they can bring up families; that housing should be stable, as people should not constantly be forced to move without choice—it is utterly disruptive; and that housing should be sustainable and zero carbon. We cannot afford to build tens of thousands of houses which increase the problems of climate change.
But I want to add two things. First of all, housing must be affordable, particularly social housing. Social housing is one of the areas which is very inelastic in terms of supply and demand. We need clear criteria for what “affordable” means. One of them should not be in proportion to the average cost in the area, which is the present test: 80% of average cost. I can assure noble Lords that, as we come to the end of our time where we are living at the moment and start looking for a house to buy, 80% of average market cost puts us a very long way away from where we would like to be—and that serves us right, in some ways. Affordable housing needs to be related to income, not to average cost. It needs to be measured against real living wage in a particular area if it is going to be genuinely affordable.
Secondly, it is no use building houses unless you build communities. Housing without community sets us up perfectly for the social problems of the future, so, when we build houses, we have to create the open spaces. And I forgot one “s”, which is satisfying. It has to be a place where children can play, where families get to know each other and where—obviously, I would say this—there is a church, or at least a community centre that acts as a church, where people are brought together. Community facilities in most of our new developments are nugatory, nil, useless; we have to do better.
My last comment: the Church Commissioners for England hold about 5,000 to 6,000 acres of strategic land, out of the 100,000 acres of the Church Commissioners’ total landholdings and another 100,000 acres in the hands of dioceses, parishes, trusts and so on. I know that they are now working on plans for working with government and local authorities, using the mapping tool developed in the Coming Home report, to see the best places to get together with others and have economically helpful areas with good returns. Look at what the Duchy of Cornwall has done with that: you can look down a street and you cannot distinguish which is social housing and which is non-subsidised housing. That also is part of the way in which we treat people with respect.
I look forward to hearing from the Minister. I hope that the Government will undertake to work right across the sector of landholders, so there will be good mixed development that brings people together and sets us up for a better future—and that, as part of that, it is done in the deliberate building of communities before we talk about individual houses.
My Lords, I am hugely grateful to have been here. You remain in my prayers and in my deep affection and profound respect for the huge contribution made by this House to our nation, which it usually does not recognise. I am hugely grateful to the noble Baroness, Lady Taylor, for allowing this debate to happen.
Somewhere along the way, he has espoused the marginalised, the oppressed, the poor people of the land, and internationally too. He has travelled to every province of the Anglican Communion. We can only honour him for his stamina as far as that is concerned; stamina to get there, but holding it together is an entirely different challenge. Somewhere on that parabola he quoted a line from Nelson Mandela which is the hallmark for his particular ministry—that overcoming poverty is a matter of justice, not charity. That is a pretty high bar to set. I honour him for his work.
I am reading an enlightening book, which I am enjoying, that traces the history of John Milton’s Paradise Lost through its various iterations and its usefulness around the world. It is truly insightful, but it is called What in Me is Dark. There is not a Member of this House, not one noble Lord or Baroness, who has not had to face the dark at some stage in their lives. We can only feel with the most reverend Primate as he gazes into his, none of us feeling superior as we do so. However, it is a good thing to follow to the end John Milton’s quotation,
“What in me is dark
Illumine, what is low raise and support;
That to the highth of this great Argument
I may assert th’ Eternal Providence,
And justifie the wayes of God to men”.
That is nobler than the cut-off title of the book that I am reading at the moment.
One last word, if I may, as I have some indulgence on these occasions—it is very dangerous to give such an indulgence to a Welshman, but I will do my best. It allows me to give vent to a long-nurtured secret desire of mine to quote some Latin, as an alumnus of Llanelli Boys Grammar School, to an old Etonian. It is from the Aeneid. In Carthage, Aeneas is looking at a mural of Juno at the fall of Troy and all his friends who died there. He weeps to see them fallen:
“sunt lacrimae rerum et mentem mortalia tangent”—
there are tears at the heart of things and the mind is affected by ideas of our mortality.
There are tears at the heart of things. I would guess that the most reverend Primate knows that as well as anybody. However, they can be tears of joy. We must hope that the future that he will enjoy with Caroline and the family will be full of joy, that joy will invade the darkness and dispel it, so that the man whom we know will have a chance to be himself again, breathe his own air and stand in his own dignity. Justin, I am going to miss you, and I think we are going to miss your family too. God bless you.
One night—just one—I spent a night in Lincoln’s Inn Fields. Tom told me how to wrap my legs and my lower body in newspaper. He told me where to find the best cardboard, outside McDonald’s: there was not so much grease in it, and therefore the rodents would not bother me in the night. In the middle of the night, we were woken up by a soup kitchen that wanted to feed us with sustainable food. I have to say that, when the rain started at 3 am, I was a coward and went home, but I have never forgotten the comradeship of the people in Lincoln’s Inn Fields, the jokes and the banter.
Homelessness is about people. This debate is about finding ways to solve the needs of people. If we do not do that, then all the statistics, trends, budgets and hopes are for nothing. I am so glad that I am being followed by the noble Lord, Lord Bird, who is a more authentic voice than I on these matters.
We tried to address it 75 years ago when we created the welfare state. We tried to address the fact that there were people who were unwell, ill educated, doing jobs that destroyed their bodies and caught in poverty. But did we ever really put the effort, the energy, the drive and the wonderfulness of our intellectual ability into saying, “Why is there no science for breaking people from poverty or a government department especially looking to prevent poverty”, so that we do not have a situation where the only inheritance people get is that they are poor? I believe we live in an age of dunces. Unfortunately, the dunces are the people making the decisions.
I am astonished that poverty costs us so much. I reckon that, of every £1 paid by the taxpayer, about 40p goes into poverty. We, in a sense, leave poverty. The Conservatives are great believers in leaving poverty to work itself out because there are so many examples of people two or three generations away from the coalface, or even one generation, so they think poverty should just be sorted out by leaving the system. Then Labour believed in inventing a methodology that created social housing but did not answer the problem. Only 2% of people whose children are brought up in social housing ever get out of poverty. Only 2% ever get to university or even finish their A-levels. In my opinion, we have these big contradictions. Until this House and that House embrace the idea of finding a way of turning the tap off, we will just have a lack of social housing as a forerunner for getting out of poverty.