My Lords, I am grateful for the opportunity to open this Second Reading on the Social Housing Bill. I look forward to listening carefully to noble Lords’ contributions from across the House. I am particularly conscious that many in this Chamber bring deep experience of housing, local government, safeguarding and the realities facing communities. I therefore would like to begin by recognising the value that this experience brings to our debate and thanking noble Lords for giving the Bill the attention that it warrants.
Before I turn to the detail, I hope the House will allow me a brief personal reflection, because this Bill is really personal for me. This legislation is not abstract; I grew up in Stevenage in social housing. In those days, before everyone carried a phone in their pocket, before the internet shaped the world—I should add that not even every house had a phone; I am that old—and before cars were widely affordable, community was the bedrock of our lives. Part of the unwritten contract for my parents when they accepted the offer of a job and a home in Britain’s first post-war new town, which is 80 years old this year, was that their parents would be welcome when they retired and that their children could, if they wished, be housed as children of tenants.
One of the great strengths of living in Stevenage was the sense of continuity and belonging that it offered. Families put down roots, your parents could live nearby and, in time, you could imagine your own children building their lives in the same area with the possibility, if they needed it, of a secure, affordable home in the community they knew. That sense of security—that social housing could be there not only for you but for the next generation—is part of what social housing at its best can provide: stability, dignity and the foundation on which people can build a life.
Amidst the complexities of modern life and the cost of living crisis, retaining that sense of community is more important than ever. Yet for too many people, it is no longer something they can rely on. In Stevenage, the housing stock has fallen from around 32,000 homes in the 1980s to around 8,000 today, and many former council homes are now let to those on universal credit, costing the public purse more than double when compared with a council home and leaving over 2,000 families stranded on waiting lists. This is a picture that we see around the country.
Over time, social and affordable homes have become scarce. In many places, homes sold have not been replaced. The result is that families who could once have lived side by side, in the same town and neighbourhood, are now too often separated by necessity and forced to move far from the support networks they depend on. That is one of the reasons I care so deeply about this Bill. It is about restoring a sense of security and fairness for tenants today and for communities tomorrow. Everyone deserves to live somewhere decent, safe, secure and affordable, in a community where they feel at home.
My Lords, I declare my interest as vice-president of the Local Government Association and of the National Association for Local Councils.
The Social Housing Bill attempts to address an important issue across many local authorities: namely, that we are not building enough social housing. Yet this Bill goes about this issue in completely the wrong way. There are, of course, some measures that we welcome. In particular, we welcome the Government’s efforts to give landlords and the courts more powers to protect tenants who are victims of domestic abuse. It is absolutely crucial that victims do not fall through the cracks of the system, and we will support efforts to strengthen the Bill in this regard.
However, for the most part, this Bill’s focus is not on the development of new social housing; it merely moves the goalposts on the existing housing stock. This Government came to power on specific promises in their manifesto to
“prioritise the building of new social rented homes and better protect our existing stock by reviewing the increased right to buy discounts introduced in 2012 and increasing protections on newly-built social housing”.
The first part of that pledge promises to prioritise the building of new socially rented homes, yet this is not what is prioritised in the Bill before us. Instead, the Bill goes into tweaking overdrive on the right-to-buy scheme. While we recognise the Government’s promise to review the discounts introduced in 2012, other provisions in the Bill represent an all-out attack on the right-to-buy scheme: a key Conservative legacy that has helped so many own their own home and has transformed social mobility across this country. Indeed, I heard the Minister describe the right-to-buy scheme as a “leaky bucket”. For a council that fails to build enough social housing, this may indeed be its point of view, but that is not whose side we are on. We on these Benches are not on the side of failing councils; we are on the side of hard-working families who do not want to be dependent on the state forever.
Well, my Lords, that has started the debate on this important Bill in a rather polarised way. I have to say that I was a bit disappointed in the response from the noble Baroness, Lady Scott of Bybrook, who used some of the rhetoric of pointing fingers of blame at minorities, when we should be talking about people in need of decent housing. I hope that we can do the reverse and think about people who need social housing rather than who they might be.
I have both a practical and a direct interest in this Bill, as a councillor serving on Kirklees council, dare I say? I concur with much of what the Minister said in her introduction to this Second Reading; I too spent all my childhood benefiting from the dignity, stability and quality of a council home.
Liberal Democrats largely welcome this Bill. It is an important step in the right direction. That is not to give it a complete stamp of approval but rather to acknowledge that fundamental reform of the provision of housing—at social rents, I emphasise—is long overdue. The provision of good-quality housing at a rent that is affordable—not affordable rents—is a basic human right that has been sorely neglected over the past 40 years. There is a direct link between quality of housing, educational outcomes and long-term health needs. It is in the interests of society as well as of individual families to provide good-quality housing that is available at a cost that everyone can afford.
The Liberal Democrats’ solution is the building of 150,000 homes for social rent every year to meet the needs of the 1.34 million households in England on local housing registers. That is likely to equate to over 4 million adults and children hoping and wishing to be allocated a property at a social rent.
The Government’s estimate is that, for larger family homes of four bedrooms, the wait to be rehoused can be as much as 18 years and that 28% of new lets are for families who are statutorily homeless. In my council, there are 19,000 households on the housing register and the number of new lets each year is around 1,700. Some 2.4 million council houses have been sold under right to buy. In Kirklees, there were 46,000 council houses in 1980; now, there are fewer than 22,000, with 19,000 households on the housing register. That alone puts into stark relief the acute problem of social housing provision. The fundamental failure of right to buy was that it was never accompanied by a right to build using the income from sales. The result is the scandalous lack of genuinely affordable housing for so many families.
My Lords, I am sorry to interrupt but, as we embark on the Back-Bench speeches, I invite noble Lords to note the advisory speaking time of seven minutes. If we can stick to that, all speakers will get a fair crack of the whip, especially the later ones, and we can achieve a reasonable finish time. I would be grateful for your Lordships’ co-operation.
My Lords, it is a delight to follow the noble Baroness, Lady Pinnock. I declare my housing interests as in the register.
I commend the Bill, which introduces a number of legislative changes to enhance the quantity and quality of desperately needed affordable and social housing. I particularly welcome its provisions for constraining the right to buy, for the repeal of the awful and never-enacted measures to enforce sales of the best social housing, for the next steps in the endless story of the Grenfell tragedy, and for greater security for domestic abuse victims. Together, this whole package of measures will make an important difference.
In Committee, I will be bringing forward some modest but important amendments on points of detail, but for this Second Reading debate perhaps I could set the Social Housing Bill in its wider context. The Government have been taking significant steps to increase the output of councils and housing associations. The social housing sector’s subsidy settlement via Homes England, at £39 billion for the next 10 years, is the best since 2010. The national housing bank looks promising, and the agreement for rents to be increased by CPI plus 1% annually for a decade should ensure ongoing management and maintenance costs are properly funded. Other government measures aim to streamline planning consents and get the reluctant housebuilders to allocate a proper proportion of their new homes for social housing. That is all good stuff which will, I hope, produce around 50,000 new affordable homes per annum, more than half at social rents.
However, it is worth remembering that total investment in the social sector is a fraction of its level in times past. The proportion of the nation’s homes represented by council and housing association accommodation has fallen from its peak of 32% to just 17% today, partly due to the more than 2 million sales under the right to buy. The Bill seeks to address this problem of running the bath with the plug out, which should encourage councils to build once again.
My Lords, it is always daunting to follow the noble Lord, Lord Best, on a matter to do with housing. I begin by declaring my interest: I am the chair of the Church Housing Association, a recently formed, not-for-profit social housing provider that we are seeking to build, literally and metaphorically, on the five core values that were set out in the most reverend Primate the Archbishop of Canterbury’s commission on housing, Coming Home, which was debated in your Lordships’ House a few years ago. Those values—that social housing should be safe, secure, sustainable, sociable and satisfying—provide a set of tests against which any proposed legislation could be measured, hence I warmly welcome the Bill. It will make social housing better.
Housing is a fundamental human right. It is a foundation for other core rights, including things such as health, dignity, sanitation and sometimes the right to life itself. The Bill rightly addresses the concern that there is not enough stock in this country to house those in need.
We have heard some facts—I will offer one or two more. In June 2025, more than 172,000 children in England alone were living in temporary accommodation. For the last six years, temporary accommodation has been a contributing factor to the deaths of at least 74 children. Those are all government figures.
Lack of secure housing, moreover, is damaging our children’s ability to learn. I speak to secondary school heads in Manchester who are having to make special provision for study for children who have no permanent home, who sometimes arrive at school in the morning not knowing where a taxi will take them home to in the evening. We cannot allow this to continue.
Protecting and increasing our housing stock is an essential step to reduce the waiting list. That is why I welcome the Bill’s commitment to exempt newly built homes from the right-to-buy scheme and to streamline processes that will incentivise local councils to build more homes. Indeed, I applaud what is already happening, such as the increased investment in building housing for social rent that Manchester City Council has made in the last couple of years, supported by the Manchester Social Housing Commission, which it has been my privilege to chair. Yet, while building new homes and reducing leakage from the social housing sector are important, it is clear that the condition of our existing housing—as has already been mentioned—poses a very real threat to the health, well-being and lives of many social housing tenants. Here I turn, as others have, to concerns not adequately addressed by the Bill.
My Lords, it is an honour to follow the right reverend Prelate the Bishop of Manchester, who has consistently championed the social housing sector.
Social housing is a vital national asset built to provide families on low incomes with a safe, secure, affordable place to live. After decades of marginalisation and underfunding, the tragic reality is that thousands of families still lack a safe and affordable home. Over 170,000 children currently live in temporary accommodation. I am proud that after a regrettable period of decline and marginalisation under successive Conservative Governments, this Government are once again asserting the value and importance of social housing. The Social Housing Bill is an important pillar of this work.
My noble friend has emphasised the targeted aims of the Bill. I welcome its narrow drafting. It is clear and precise. It aims to achieve three clear and laudable objectives: protect existing social housing stock, protect victims of domestic abuse living in social housing, and clarify the statute book.
With 1.3 million households on social housing wait lists, all social housing sold off under the right to buy should have been replaced, like for like. That has just not happened under the present system. In its current form, right to buy has unsustainably depleted the stock of social homes and restricted confidence to build and invest, depriving so many families of a vital resource.
Of course, social housing residents’ ability to buy their own home has an important role to play, but this must be done sustainably, protecting social housing stock where necessary and with clear safeguards against misuse. Measures in the Bill to increase the qualifying period to 10 years, reform discounts, and introduce a 35-year exemption for newly built social housing will help to ensure that the policy is more sustainable and offers better value for taxpayers’ money.
My Lords, it is always a pleasure to follow the noble Baroness, Lady Warwick. I will develop part of the argument she adduced—that there is sometimes a case for disposing of social housing.
I want to address the ongoing controversy whereby the right-to-buy policy led directly to the shortage of social housing. I voted for the 1980 Housing Act; more relevant is that I was a junior Minister under Michael Heseltine and was responsible for implementing it and then defending it. That brought me into conflict with the late Baroness Hollis—then Councillor Hollis and chairman of the housing committee in Norwich—who refused to implement the policy. I had to put in the commissioners and suspend her. We met again 30 years later, when I joined your Lordships’ House. She was emollient, if unrepentant, and we became good friends.
I understand the argument that all the receipts should have been reinvested in social housing. But suppose I had gone to Geoffrey Howe, the Chancellor at that time, and put that argument to him. He would have said, “George, that is not how it works. When we privatise Heathrow and Gatwick, we don’t build more airports. When we privatise the docks, we don’t build more docks. What happens is that the money goes into a pot, along with North Sea oil, income tax and everything else, and there is then a collective decision about how to spend it. You, George, have inherited from the outgoing Labour Government very generous provision for social housing and you’re telling me you want to keep the billions from right-to-buy receipts all to yourself, not just for this year but for every subsequent year. That would be wholly unfair to the Secretary of State for Health, who cannot sell the hospitals and add to his baseline, and to the Secretary of State for Defence, who cannot sell the nuclear deterrent”. I would have come up against the policy that dare not speak its name in the Treasury—namely, hypothecation.
My Lords, it is a privilege to follow the noble Lord, Lord Young of Cookham, and although I may not agree with all his points, I certainly respect his experience and views. I start by declaring that I work for the Local Government Association. I support the Bill, not only as a Member of this House but as someone who has spent years working at the coalface of housing need as a councillor who led on regeneration and planning for eight years, becoming one of London’s largest housebuilders. I welcome the comments made by the noble Baroness, Lady Warwick, and the noble Lord, Lord Best, on the importance and value of regeneration.
I welcome the Bill and other measures that the Government have implemented to speed up housebuilding to address the housing crisis, including the £39 billion for social housing. Social housing is a foundation on which people build lives. It is where children grow up and go to school; it is where families such as mine put down roots and where communities are built. When we allow social housing stock to erode, we are not simply making a balance sheet error, we are narrowing life chances. As mentioned by my noble friend the Minister, the numbers are stark. It is a source of shame that more than 175,000 children are in temporary accommodation. More than 1.3 million households across England are currently on waiting lists for a social home. We simply do not have enough homes.
The temporary accommodation bill alone should give us pause for concern. Government figures show that council spending on temporary accommodation reached £2.8 billion in 2024-25. This is not just a housing argument; it is a fiscal one. Research by the National Housing Federation and Shelter found that the government funding needed to build the social homes we require would be fully paid back within 11 years through savings on housing benefit, NHS costs and homelessness expenditure, and additional tax receipts from construction employment.
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That is why the social housing sector plays such a critical role in our system, providing a home to around 16% of all households in England and supporting many of the most vulnerable, including those on the lowest incomes and those living with long-term illness or disability. Yet, for many, that security is out of reach. Today, more than 1.3 million households are on local authority waiting lists for social housing and over 175,000 children are growing up without a stable home. Families are left with little prospect of secure housing in their community. They are forced instead into the increasingly expensive and insecure private rented sector or into temporary accommodation at significant personal cost and growing expense to the public purse.
This country has not built enough social and affordable housing for decades. While nearly one in three new homes in recent years has been social or affordable, overall delivery remains far below the historic highs of the 1950s and 1960s, when housing was delivered at a far greater scale. This decline reflects a combination of factors over recent years. including lower levels of public investment, constraints on providers’ ability to borrow and invest, and wider economic pressures, such as inflation, which have increased the cost of building and maintaining homes. At the same time, the steady and significant loss of social housing stock, particularly where homes sold under right to buy have not been replaced, has further undermined the ability and confidence of providers to invest in building the new homes that communities so urgently need.
The Government therefore placed social and affordable housing at the heart of our manifesto. We have been clear that addressing these long-standing challenges requires not just incremental change but a sustained programme of renewal, bringing together investment, reform and delivery across the sector. The priority of this Government remains to deliver the biggest increase in social and affordable housing in a generation, alongside a transformational and lasting change in the safety and quality of social homes. The delivery of these commitments is well under way.
In 2025, we set out a clear five-step plan to deliver a decade of renewal for social and affordable housing. First, we are delivering the biggest boost to grant funding in a generation through the £39 billion 10-year social and affordable homes programme to support social housebuilding at scale. Secondly, we are rebuilding the sector’s capacity to borrow and invest, supported by a stable 10-year rent settlement. Thirdly, we have established a more effective and stable regulatory regime by updating the decent homes standard, implementing new minimum energy-efficiency standards, and the passing of Awaab’s law to drive up the safety and quality of homes for tenants. Fourthly, we are reinvigorating council housebuilding, which this Bill directly supports, recognising the central role of councils in social housing delivery. Fifthly and finally, we are strengthening our partnership with providers and investors to unlock capacity and accelerate delivery, and with tenants themselves to guide our reforms—including addressing the social housing stigma that tenants highlight as a key priority.
This Bill forms one targeted part of this wider programme of renewal, making the necessary legislative changes to underpin our reforms. We have already given social housing providers the long-term certainty and stability they need to dial up their housebuilding ambitions, through grant funding, long-term certainty about their incomes, clear and final quality standards, and specialised support for councils. We now need to deliver the parts of our decade of renewal plan which require primary legislation. The Bill will protect the number of social homes available to those in need and, in doing so, incentivise the building of more social rented homes. It will create a fairer system, with stronger protections for tenants who are victims of domestic abuse. It will reduce unnecessary bureaucracy and clarify the statute book so that providers can invest in new social and affordable homes with confidence.
Taking each of these objectives in turn, I turn first to protecting homes and enabling new supply. Right to buy has long provided an important route into home ownership, helping many social housing tenants achieve greater security and a tangible stake in their community. Since its introduction, it has supported more than 2 million households to buy their homes and realise the benefits of home ownership. But—and this a very big “but”—too often the homes sold have not been replaced. This has led to a steady loss of social housing stock, reduced the availability of genuinely affordable homes, and weakened councils’ confidence and capacity to invest in new supply, particularly where homes are sold and do not return to the sector.
It cannot make sense for a council to invest in building a new home and then for a qualifying right-to-buy tenant to move in and purchase that home for significantly less than it cost to build. The Bill therefore builds on the existing tranche of reforms that the Government have already made to the right-to-buy scheme. The measures will continue the mission to deliver a fairer and more sustainable scheme, one that continues to support long-standing tenants to buy while ensuring that councils can replace what is sold and better protect existing social homes to meet future housing need. We will increase the eligibility period from three years of tenancy to 10 years, which better reflects current practice and ensures that the scheme is targeted at those with a long-standing connection to their home. We will also better align discounts with cash caps and introduce a 35-year exemption for new-build homes, protecting new supply and giving councils the confidence to invest in homes for the long term.
Alongside this, the Bill introduces a new requirement for private providers of social housing to notify their local authority and other potential buyers before selling a home. This will maximise opportunities to retain homes within the social housing sector. Taken together, these reforms will shift the trajectory of the system from one where stock has been gradually depleted to one where it is protected and can begin to grow again. These measures are not about undermining aspiration but about ensuring that it is delivered in a way that is fair, balanced and sustainable, so that future generations have the same opportunities as those before them. They are designed to ensure that the sector is larger in the future, not smaller, and more capable of meeting need, not less.
Secondly, on the protection of tenants who are victims of domestic abuse, all tenants deserve safety and stability but those experiencing abuse face acute risks and, too often, must choose between staying in their home and continuing to suffer that abuse, or leaving and risking homelessness. The Bill strengthens protections to help victims remain safely in their homes where possible or move to suitable alternative accommodation where necessary. These measures form part of the Government’s wider commitment to tackle violence against women and girls, ensuring that the housing system supports rather than frustrates a victim’s route to safety and recovery. This sits alongside wider government action to improve quality standards, strengthen tenant voice and ensure that the sector works in the interests of those it serves.
Thirdly, the Bill reduces unnecessary bureaucracy and clarifies the statute book, enabling councils and providers to invest with confidence. It repeals unimplemented and unworkable provisions from previous housing legislation, including requirements to sell high-value homes, impose fixed-term tenancies by default and charge higher rents to higher-income tenants. It also streamlines the outdated consents process so that councils can make more decisions about the management of their social homes without having to get approval first. These changes bring clarity and reduce barriers to delivery, setting up the social housing system for the ambitious future we are working towards.
Social housing is an essential part of a functioning housing system. It provides security for families, supports communities, reduces homelessness pressures and, when done well, represents good value for the taxpayer over the long term. This Bill is a vital part of our reforms, but legislation alone cannot deliver the decade of renewal we want to see across the quality and supply of social housing. As I have said, this Bill is one targeted part of a comprehensive and ambitious plan that the Government are already delivering through record investment into new social housing; through new modern and robust standards to improve housing quality and safety and to strengthen tenant engagement and landlord accountability; and through working with the regulator and the sector to ensure that the system is stable and investible. Ultimately, the Bill is grounded in the everyday reality of families who need secure homes, in the practical requirements of councils and providers that need certainty to build so that future tenants can access social homes, and in the principle that the state has a responsibility to ensure that safe, secure and affordable housing is available to those who need it.
In the course of this debate, I know that noble Lords will rightly scrutinise the detail—how reforms are implemented, how we safeguard fairness and how we ensure that the sector can deliver—and I welcome that scrutiny. But I hope that the House will also recognise the central purpose of this Bill: to strengthen tenant protections for victims of domestic abuse, to clear away barriers that prevent investment and delivery, and to protect and grow the social housing available across the country. I commend the Bill to the House.
To be clear, we do not dispute that we need more social housing. Our population has grown rapidly, and development has not kept up with that demand. Under this Government, more landlords are exiting the market; unemployment is on the rise, especially for young people; and more and more people may be forced to look for social housing. But what do they find? They find the First Lady of Sierra Leone, who otherwise occupies a presidential palace. They find that social housing is being taken up by non-UK nationals, as was highlighted in the “Alternative King’s Speech”. Approximately 33,000 new social tenancies each year are going to households where the lead tenant is a non-UK national. At the same time, the Government invest around £4 billion annually to deliver roughly 30,000 new social homes. That is neither sustainable nor fair for British citizens.
According to the 2021 census for England and Wales, 72% of those who identified as Somalis live in social housing in the UK. That is an example of a dependency culture right before our eyes. This is not why the British taxpayer pays tax. This is not a functioning safety net, nor is it a welfare state working for its own citizens. Moreover, it is evidently not the right-to-buy scheme that is the problem here. We Conservatives know the solution. We need to build more new social homes for local people, not restrict their opportunities for home ownership.
We need the opportunity of right to buy, but at least one new home must be built with the money from the right-to-buy sale. If you do this, it is a win-win outcome. We need an honest and mature conversation about whom social housing is for and what the state can afford. We need to recognise that it is a finite resource and should be reserved for those who truly need it, without needlessly trapping people into welfare indefinitely and with no way out. We also believe that councils should have the powers to decide who to prioritise, such as those with existing connections to their local area, or veterans who have done so much for our country.
Reacting to the King’s Speech at the start of this Session, one Labour MP summed it up perfectly: “This is incrementalism”. That is exactly what we are seeing with this Bill before us now: tweaking with a successful scheme in order to weaken a proud Conservative legacy, rather than solving the problems the country faces today. This is red meat to appease Labour Back-Benchers in the other place, who—let us be honest—would rather see the right-to-buy scheme abolished altogether.
This is not serious policy direction, let alone a vision. This House and the British people deserve better. I repeat that there are measures in this Bill that we welcome, particularly to protect victims, and there are certain measures that we, of course, recognise as manifesto commitments. But we have serious concerns about significant aspects of this Bill: its implementation and commencement, the powers being handed over to the Secretary of State and all that is currently absent from the Bill to properly and adequately address the problems we face.
Where are the measures to keep larger social housing providers accountable to their local communities, for example? How can we make shared ownership schemes more workable in practice? How can we enable councils to have more choice over what works best for their residents? I look forward to hearing the contributions and insights of other noble Lords across this House on how we can make this a better Bill for the other place, and I look forward to engaging constructively with the Minister throughout the passage of the Bill.
The Bill begins to address the lack of supply of social housing. First, it introduces a 35-year exemption for new builds, which provides certainty that a council investing in building new homes is financially sustainable, as the capital borrowed to build can be paid back from rental income over that period. Increasing the qualifying period for the right to buy to 10 years will further protect the much-reduced stock that remains. Those are positive changes in our view, but what the Bill fails to do is substantially increase the supply of social housing.
The Government will point to the £39 billion allocated for the construction of houses in the social rent and mixed tenure sector. However, the aim is for just 180,000 new homes for social rent in a decade, when the need is so great. Measured against the scale of the challenge, that is a paltry response. Increasing the supply of housing at social rents benefits families who are in receipt of housing benefit. Their low income can then be spent on essentials for their family. The lack of social housing has resulted in many families entering the private rented sector, where rents are not equivalent to housing benefit. For example, in my own town a two-bedroom back-to-back house for rent in a Victorian terrace will cost around £750 a month—I know noble Lords who live in London think that that is peanuts, but where I live it is a lot of money—whereas the local housing allowance for claimants for a two-bed property is under £650 a month. There is a gap of £100 a month for a family claiming benefits, which makes a huge impact on their being able to afford basics.
There is also an impact on the cost to government, which the Minister pointed to. This year, spending on support for housing will reach £37 billion. The provision of housing at a social rent would reduce that revenue demand on government. It makes good sense to invest in more provision of social housing.
The other good thing in the Bill is the indefinite right of first refusal to purchase a former council house, in Clause 6, which provides a new route to increasing the supply of social housing. An additional benefit of this clause will be to provide greater stability in some council housing estates where private landlords have taken over houses that were formerly for social rent, having been bought under the right to buy and then sold on to private landlords. Often, these private landlords are distant—with some living in South Africa, in my experience—and in these situations do not provide the same support and management as that provided by council housing providers and registered social landlords.
There are other important changes in the Bill—for instance, on responding to domestic violence, as well as the proposal to streamline housing consents. There is therefore much to support. However, the gaping hole in the Bill is a more ambitious plan to meet the need for genuinely affordable housing at a social rent—not affordable housing, which is very different and often not affordable. Doing so would transform the immediate lives and future prospects of so many of our fellow citizens. Against the magnitude of the need, the Bill provides important first steps but falls mightily short of the real challenge, which is a greater supply of social housing.
Nevertheless, there is one serious omission in the Government’s support for the social housing sector: there is virtually no funding or strategy for the upgrading of hopelessly outdated current housing stock. That includes the leftover 1960s and 1970s prefabricated estates and tower blocks that now need renewing or replacing; the flats over shops in half-abandoned high streets; and the unfit privately rented pre-1919 properties that are long past their sell-by dates. While the Government’s emphasis on adding 1.5 million extra homes over the life of this Parliament is to be greatly applauded—particularly with the emphasis on social housing—it is a serious hole in the Government’s strategy that existing outdated housing is largely ignored. While I welcome the special help for particularly deprived neighbourhoods in the form of the Government’s Pride in Place initiative, this new funding does not stretch to improving existing accommodation. Sadly, the current absolute priority for new building is leaving tens of thousands of tenants in the sort of conditions that led to the untimely death from cold and mould of little Awaab Ishak in Rochdale.
Investment in housing-led regeneration has its own paybacks, with beneficial side-effects that are not always so apparent from the building of new homes: the most hard-hit local economies get a boost; much-needed opportunities emerge for training and apprenticeships for the growing number of NEETs; communities can see and engage with the renewal of their local environments; health and well-being can improve for populations with the worst health records; and hope and aspiration, after years of neglect, can be restored. The Renew project, representing the social housing providers in the northern regions, shows what can be done using devolved powers and funding for pilot schemes. In Greater Manchester, mayoral development corporations—MDCs—with wide powers are busy with major regeneration projects.
In relation to private sector properties in urgent need of upgrading, Blackpool Council, for example, is putting pressure on the worst landlords and taking direct action of its own through a local housing company. Elsewhere, community-based housing organisations are acquiring and modernising the poorest-quality private rented housing. So much more could be done to improve neglected estates and neighbourhoods if regeneration were mainstreamed once again. Maybe the Government’s overdue long-term housing strategy will address this omission. Perhaps the shift in powers to the mayors and combined authorities will lead to greater priority for regeneration activity. It would be helpful to hear from the Minister when the promised national housing strategy can now be expected.
Finally, I will comment on the state of the housing association sector. Mergers and takeovers have led to fewer and much larger organisations, which has brought some downsides. This trend has obvious financial advantages—lower borrowing costs and economies of scale in procurement and employment—but it has meant that some housing associations are geographically widely dispersed and decision-making is distant from those affected. Some of the sector’s broader, housing-related, place-shaping activity—local employment schemes, partnerships with local homelessness charities, civic engagement of staff in local affairs, et cetera—has unfortunately been lost. In return for the help that the Government are now providing and the extra support from this Bill, I hope more of the housing associations will behave like the best in class and increase their sensitivity to their tenants and communities at the local level, regaining the trust and confidence that this sector needs and deserves.
The measures introduced in Awaab’s law, as the noble Lord, Lord Best, referred to, were a direct response to the death of a young child in my diocese. These measures hold social housing providers to account for addressing the root causes of damp and mould, not just blaming them on the lifestyle of the tenants. Among those living in these conditions, the proportion with an occupant suffering from a health condition has now increased to 47%. Almost half of those living in those conditions have a health condition.
Alongside mould and damp, we are approaching a decade on from the Grenfell tragedy, yet too many people are still living in homes that do not provide adequate protection against fire. Some 44% of buildings with unsafe cladding have not yet even begun remediation works. These are official figures. I echo the noble Lord, Lord Best, by inviting the Minister to set out for us how the Government intend to prioritise the safety and condition of existing homes alongside the delivery of new housing.
I turn from stock condition to poverty. We are all created equal. We should all be afforded equal opportunities. For children growing up in poverty, their aspirations for the future are overshadowed by the constant burden their families face in making ends meet, confronting food insecurity or being unable to afford to heat the home properly. I have had to address this House too many times on the growth of food banks. If the Government do not prioritise making social homes more affordable—genuinely affordable does not mean 80% of market rent, and when we define it like that we are not only insulting Britain’s households; we are abusing the Oxford English Dictionary—and if we do not address this problem, the cycle of poor life outcomes for today’s children, tomorrow’s adults, will only continue.
Poverty is a problem not only for social renters but for those in the private sector. Currently, more than 45% of private renters are living in unaffordable housing, according to IPPR research. Might the Government consider introducing double-lock rent caps in private sector housing, not only to slow the growing number of private renters who are falling into poverty but to free up social housing stock by making this sector more accessible to low-income families?
Sometimes, over time, the unintended side-effects of what was a well-intended piece of legislation—it might have done some good in its time—can come to outweigh the merits of the policy behind it. Some 40% of properties acquired through right to buy appear in the private rented sector within 10 years. As the noble Baroness, Lady Pinnock, reminded us, they do so at much higher rents and often much poorer standards, both of physical maintenance and support for the tenants in them. That was not the intention of right to buy but that has been the outcome.
At the same time, it is now beyond any remaining doubt that subsidies to enable first-time buyers to get on to the housing market have done little more than further inflate property values. That is all they have done; there was a report on it in just the last week or so. The real beneficiaries have been the volume builders and those with significant capital already in property. Money that could and should have been spent building more social housing or keeping rents lower has been wasted on pointless political posturing. Can we be assured that that era is now over?
This housing crisis is not just a question of supply but of dignity, health and justice. The Church of which I am proud to be a part is committed to its long-standing role in building communities and supporting social cohesion. But families cannot participate in community life when their most basic needs are not being met. This Bill will be judged not only by the number of homes it delivers but by whether those homes enable renters to feel safe and secure, plan for their futures and nurture their communities.
Back in 1990, as a young parish priest, inspired by the noble Lord, Lord Best—he was not a Lord then but he was a great campaigner for housing—I wrote to my then bishop. I warned him that the crisis of unemployment that had plagued the 1980s was about to be superseded by a crisis in social housing. Some 25 years on, that crisis is still with us. This Bill can be a big step towards addressing it. I look forward to its progress.
These reforms will also give councils greater confidence to invest in new supply, which is essential if we are to begin reversing decades of lost stock. This is particularly important in rural areas, where pressures are especially acute. Research from English Rural found that while 17% of the population live in rural communities, they receive just 7% of new affordable homes. Over 306,000 people are currently on rural waiting lists, and at current building rates it would take nearly 90 years to clear that backlog.
Rural development is always more challenging due to the availability of land, amenities and resources, but low replacement rates against right-to-buy sales have exacerbated these challenges further. I therefore strongly support the provisions in Clause 7 to disapply right to buy in national parks, areas of outstanding natural beauty and designated rural areas. These changes will help safeguard vital social homes and better reflect the realities of constrained rural housing markets.
Among the most important protections are those contained in Part 2 of and Schedule 1 to the Bill, which confer new protections on victims of domestic abuse who live in social housing. We know that housing plays an important role in cases of domestic abuse, where housing uncertainty can be used by perpetrators to exert control. A lack of safe, secure, high-quality housing can put people who are experiencing domestic abuse at risk of homelessness and therefore make them hesitant to speak out. Social landlords are well placed to identify domestic abuse and prevent escalation through offering support and guidance to survivors of domestic abuse, but the present legal framework does not always allow them to respond effectively, particularly in cases involving joint tenancies.
That is why the National Housing Federation has said that it strongly supports measures in this legislation which allow survivors to apply to remove a perpetrator from a tenancy, giving the survivors greater housing security and the ability to remain safely in their homes where appropriate. This is a significant and welcome step forward. It is, however, a highly complex and sensitive area in practice. It will be critical to work closely with social housing providers on the implementation of these changes. We need to ensure that staff are fully equipped to protect victims and support them in rebuilding their lives. Can my noble friend the Minister say a bit more about the Government’s plans to support the implementation of these changes?
Finally, I turn to the topic of social homes being sold—referred to as “disposals” in the sector. We know that England has some of the oldest housing stock in Europe. Many properties are ageing, require significant investment or no longer meet modern standards or regulatory requirements. It is understandable that there are concerns about any social homes being sold in this context. However, it is important to note that disposals act as a standard part of responsible asset management. Crucially, proceeds from these sales are reinvested to build new, higher-quality homes and improve housing stock. In some cases, a single sale can fund the building of more than one home, supporting the Government’s ambition to deliver 1.5 million homes this Parliament.
The number of social homes owned by housing associations has consistently grown in recent years, increasing by over 26,000 per year for the last three years. The sale of housing association homes out of the social rented sector has therefore not resulted in any net loss of social homes. For some properties, regeneration could be a desirable alternative to disposals. The noble Lord, Lord Best, emphasised this point very effectively. I suggest that the Government could support housing associations and councils in increasing the rate of regeneration by introducing greater flexibility on net additionality rules in the social and affordable homes programme and providing other forms of assistance.
The Government’s plan to put in place the foundations for a decade of renewal in social and affordable housing can deliver lasting change and finally turn the tide on the housing crisis. The package of long-term investment announced at the spending review last year was the first step towards doing so. This legislation is another. I echo the National Housing Federation in saying that this legislation
“demonstrates the government’s commitment to protecting the supply of social housing for future generations”.
I hope that the social housing sector continues to work in partnership with government to deliver a decade of renewal for social housing and ultimately to build the homes that our country so desperately needs.
Under hypothecation, all the fuel duty and vehicle excise duty would go to transport and be spent on potholes, and health would have to survive on parking charges and prescription charges. So there are very good reasons why all the capital receipts did not automatically go back to the department that generated them. I see a former Permanent Secretary at the Treasury, the noble Lord, Lord Macpherson, smiling—if not nodding.
Even if I had won that argument and all the receipts had been kept by my department, it would have made no sense in housing policy terms to allow each local authority to spend 100% of the receipts on housing. In the 1980s, all the receipts stacked up in the shire districts, where there were houses with gardens and the housing pressure was much less, and there were relatively few receipts in the inner cities, where the predominant stock was flats. The policy of requiring the local authority to reduce its debt by 80% of the receipts enabled the department to recycle the receipts. We would say to South Bucks, for example, “You’ve got to use all the receipts to reduce your debt”, and to Islington or Tower Hamlets or Southwark, “You can increase your debt by the corresponding amount in order to invest in housing”. It was a progressive policy, which annoyed a lot of Conservative councillors, but which should be supported by the other side.
Right to buy brought additional benefits in addition to being popular—so popular that no one has ever repealed it. All the evidence that I saw at the time showed that those households that exercised their right to buy looked after their property better than the cash-strapped local authority they had bought it from—they had a real incentive to do that as home owners—so the nation’s housing stock benefited. Also, the newly enfranchised residents on the estates joined forces with existing tenants’ associations, or in some cases set up new ones, to campaign for improved conditions on the estates, and everyone benefited from that.
I would also argue that there were wider social benefits in that the predominantly single-tenure estates became pepper-potted with owner-occupiers, leading to more diverse and less polarised communities. On some estates there are now third-generation owner-occupiers—a continuity that the Minister herself commended in her opening speech.
However, I have to concede that there was one consequence of the policy that we did not foresee and which has done much to discredit it. Once the properties had changed from tenancy to owner-occupation, we assumed that the owners would stay there. The whole thrust of Conservative policy was to promote owner-occupation. We did not envisage, nor did I personally want, properties then to be bought by landlords charging market rents, often underpinned by housing benefit. For the first decade or so, that was not actually an issue; it became an issue after 1996, when buy-to-let mortgages were introduced.
This is not the right time to argue whether it makes sense for the nation’s savings to be spent buying existing assets—pushing up the price—or to be invested in government stock and then in infrastructure, or in stocks and shares and then in industry, providing wealth and jobs. That imbalance is now being slowly put right by making ISAs more attractive than buy to let and encouraging institutional investment in new build.
In conclusion, what basically happened is that the right-to-buy receipts went into the pot. No homes were lost; the tenure simply changed. The pot was then spent on schools, hospitals, aircraft carriers and the rest, from which everyone benefited. The decision not to spend enough on social housing after 1980 was a collective decision by successive Governments after considering all the other demands on the public purse, as the Minister said in opening. I end where I started. The right-to-buy policy was not inevitably going to lead to the loss of social housing. The consequence of enfranchising millions of tenants has been a bonus. The lack of social housing, as I said, is a reflection on successive priorities by successive Governments.
If the case is so clear, why have we not built? I know from direct experience why councils find this so difficult. Barriers such as the state of the housing revenue account, the cost of public borrowing and workforce shortages have all been challenges to councils which want to build, and I welcome the steps the Government have taken to start to address these. Then there is right to buy, which the Bill rightly addresses. Right to buy was introduced in 1980, and today there are more than 131,000 fewer affordable homes than there were at the start, driven largely by the failure to replace homes under that scheme. The measures in the Bill to extend eligibility to 10 years, exempt newly built stock for 35 years, and provide a perpetual right for first refusal on resale are genuine improvements and I welcome them wholeheartedly.
There is, of course, a rich irony in the fact that those on the opposite Benches who argue most loudly for the right for every family to own their own home have, at the local level, spent years frustrating the very development that would give families somewhere to live in the first place. We have all watched the pattern: support for housing in principle but objection to housing in practice—a planning application in a leafy ward that somehow never quite gets backed. The former Government removed mandatory housing targets and saw new approvals collapse accordingly in precisely those areas where housing need was greatest.
We on this side of the House believe that you cannot claim to support housebuilding while blocking homes at every planning meeting. This Bill is for those who are willing to follow this through. Addressing supply must meet demand. I offer two suggestions. The first concerns a replacement ratio. Parliamentary scrutiny has previously found that the system should ensure that any home sold via right to buy is replaced like for like, with local authorities retaining all receipts to enable them to do so. A one-for-one replacement principle could be built into the framework, even implemented flexibly over a defined period, to give councils and communities the assurance that every sale is matched by a new beginning.
The second concerns the flexibility of right-to-buy receipts. I raise this as someone who has seen at first hand how the current rules interact with the real complexity of delivering housing at scale. A major regeneration scheme—the kind that generally transforms a community, delivering hundreds of homes alongside schools, green spaces and new streets—may take five, seven or even 10 years from conception to completion. Planning processes can be lengthy and viability assessments contested. Development timelines are not solely within a council’s control. Restrictions on the use of right-to-buy receipts have been identified as a key barrier to council housebuilding and, although temporary flexibilities have been introduced at various points, they have not provided the certainty or permanence that councils need to plan with confidence.
When receipts must be spent within fixed timelines or face clawback, councils are pushed to smaller, faster projects that may not represent the best long-term value, rather than larger, more complex schemes that transform communities. Allowing councils permanent flexibility to combine right-to-buy receipts with other government grants and to spend receipts at a timescale that reflects local development realities, particularly when councils can demonstrate that receipts are committed to a named scheme, could be a way forward.
This is a good Bill. It is overdue and it is needed. But good housing policy is not made in this Chamber alone; it is made when legislation is matched by resources, by long-term partnership between central and local government, and by a shared willingness at every level—local, national, urban, suburban and rural—to say yes to the homes that our country needs. The National Housing Federation and Shelter estimate that 90,000 homes a year are needed to meet demand. This Bill is another step which this Government are taking. Every measure that we take in this House to bring those homes a little closer is a measure worth taking. I look forward to engaging with this Bill and I commend it to the House.