We have confirmed £12 billion over the next five years, which will be the largest investment in affordable housing in a decade. This includes our new £11.5 billion affordable homes programme; around half of its delivery will be for social and affordable rent. We expect our new programme to deliver around 32,000 social rent homes, double the number of the current programme.
I thank the Minister for his reply. House prices have been rising steadily because of demand-side subsidies by the Government for owner-occupation, yet the National Housing Federation estimates that almost 4 million people need the security of a home for social rent because they cannot afford to buy. I ask the Minister whether he thinks that the Government have got their priorities right.
My Lords, of course I think that we have got our priorities right. We are focusing on building homes of all types and tenures. That includes affordable and social rent and, importantly, giving people the opportunity to buy and own their own home.
My Lords, will the Minister also recognise that what is aggravating the lengthening waiting lists and undermining any future social housing target is a net loss of existing social housing stock, due to sales on the open market by certain social landlords; demolitions masquerading as regeneration, resulting in a net loss of social housing; and developers wriggling out of their commitment to social housing quotas? What are the Minister and the Government going to do about those factors?
My Lords, I have set out our programme, which is designed to increase the amount of social rented homes. I also point out that, over the last decade, the number of social homes has remained broadly static at around 4 million households.
Does the Minister accept that, if house prices rose by 2.1% in April—the highest monthly increase since 2004—making homes more affordable is simply not working? Those 4 million who are waiting for homes deserve a better answer. If this Government are all about levelling up, why are all the subsidies currently pushing up house prices? Would levelling up not be more achievable and better value if a greater subsidy were redirected into social housing?
It is not all about demand-side subsidies. We have pointed out that the Government are committed to increasing the supply of affordable housing and are investing over £12 billion in the affordable housing programme over the next six years, which is the largest investment in affordable housing in a decade.
My Lords, we all agree that more social homes should be built and I welcome my noble friend’s statement, but does he agree that, for every one family housed in a newly built home, roughly eight are housed in the relet of existing stock? In addition to building more new homes, will my noble friend promote home ownership schemes for existing social tenants who want to move out and buy, thus freeing up a home for those in housing need?
I agree with my noble friend that social mobility and social housing are critical, and that social housing can and should be a springboard into home ownership. We will look at promoting many of the schemes that he outlines, including our offer for shared ownership.
I declare my interest as a trustee of the Nationwide Foundation. The Affordable Housing Commission found that 72% of social landlords are concerned that the Government’s planning reforms could lead to fewer social rented homes. Given that social housing is one of the best ways of reducing poverty, will the Minister agree that any proposed planning reform should ensure that social rented accommodation is not only protected but its availability increased?
My Lords, I do not accept that characterisation of our planning reforms. They look to simplify the developer contribution through a new infrastructure levy that I am sure will capture the land value uplift so that that can be put into social and affordable housing.
My Lords, I refer the House to my relevant interests as set out in the register. Can the Minister explain why, when asked about social housing, he often refers to affordable housing? They are not the same thing. We need a greater percentage of government spend on social rented homes to address the chronic shortage of homes for people on low incomes. Many of the affordable homes he talks about are just not affordable for these people.
My Lords, I was very clear in my original reply that this programme will deliver approximately double the number of social rented homes, but there are also ways to provide subsidised housing that gives a discount on the market price, which is the definition of affordable rent.
Following on from the noble Lord, Lord Kennedy, by centrally imposing an assumption that around 50% of the programme will be used for home-ownership schemes, the Government are preventing local authorities and social housing providers delivering what is most needed: social housing for rent, including accessible and adaptable homes. Will the Minister consider the case for expanding the social rent element of the programme to reflect the ability of families to pay their rent, especially those with disabled members, who are much more likely to live in relative income poverty than those without?