53: After Clause 11, insert the following new Clause—
“Local authority registers of social housing stock change(1) Each local housing authority must maintain a register recording—(a) the number of dwellings sold by the authority under the right to buy in each financial year,(b) the number of new social housing dwellings provided by or on behalf of the authority in each financial year, and(c) the net change in the authority's social housing stock resulting from the figures in paragraphs (a) and (b).(2) A local housing authority must publish its register under this section annually and make it available to the public in such manner as the authority considers appropriate.(3) The Secretary of State must publish a summary of the information contained in registers under this section across all local housing authorities in England.(4) The summary under subsection (3) must identify authorities where the number of dwellings sold under the right to buy exceeds the number of new social housing dwellings provided in the same period.”Member’s explanatory statement
This amendment requires local housing authorities to maintain and publish annual registers recording dwellings sold under the right to buy against new social housing provided, enabling public scrutiny of whether authorities are failing to replenish lost stock.
My Lords, I open this group—which is a considerably better position than we were in on Monday, when I thought I would be closing it—by proposing Amendment 53. This group goes to the heart of the Bill’s central test: whether we are serious about ensuring that right to buy does not continue to deplete our social housing stock faster than we can replace it. Amendment 53 is about the transparency and accountability of that process. It requires annual local authority reporting of homes sold under the right to buy against homes newly provided. We need to look particularly at net loss and net gain. This way both the public—and the public are important—and the Government can see a trend within a local authority over time.
I decided to table this amendment because I was recently asked to speak at a housing conference, and I tried to ascertain information about social homes in Hertfordshire. It was more difficult than it should have been. Data is not easy to obtain, nor is it cumulative, so we cannot see trends. Of course, there is also the dilemma of affordable versus social, which we discussed at length on Monday. If we do not have the quality data that tells us on an authority-by-authority basis what is going on, we cannot know whether a policy is working and, more importantly, the Government cannot determine when it is appropriate to intervene.
My Lords, I was going to say I was grateful to all noble Lords who had spoken in the debate, but I am certainly most grateful to the noble Baroness, Lady Thornhill, for doing so. She identifies a couple of critical issues: the need for more housing and the need for clarity and information. That is important.
It is important that we keep a sense of perspective here about right to buy. It does not mean that that home disappears, or that the family living in it disappear; they are still in that home, and in many cases they will remain in it for many years, irrespective of whether it is a social home or they actually acquire it. The issue is therefore not about the loss of physical dwellings but about the change in tenure and the availability of social housing for other tenants. That is precisely why the questions raised by the noble Baroness, Lady Thornhill, and the amendments that we have tabled address the serious discussion about replacement. We need reliable, current information and data.
Equally, if there is a case for one-for-one replacement which we believe, that should be examined openly and supported by evidence rather than assumptions. We have now had the opportunity to look at the impact assessment for this Bill, and the noble Baroness, Lady Thornhill, rightly raised the issue of how we can reduce housing lists by increasing supply. If you look at table 4, what is the impact of removing right to buy? After five years or so, when it settles down, it means that over 3,000 fewer houses every year are built. That is 3,000 fewer homes for families and 3,000 more families on the council waiting list every year. We need more homes, and right to buy is an opportunity to increase that.
My Lords, before I speak about the Social Housing Bill, may I just wish our team England—well, it is “our team England” for some of us—all success this evening, and I hope we will be finished in time for some of us to see some of it.
I thank everyone for the lively and constructive debate we had on this Bill on Monday; it is a pleasure to be back to continue discussing it. Amendment 54, tabled by the noble Lord, Lord Holmes, would require the Secretary of State to reconsider our one-for-one replacement policy. Relatedly, Amendments 55 and 56, tabled by the noble Baroness, Lady O’Neill, and the noble Lord, Lord Jamieson, would require a report assessing the viability of this requirement. Amendment 53, put forward by the noble Baroness, Lady Thornhill, would insert a clause requiring reports to the Secretary of State on sales and replacements. Separately, Amendment 58B from the noble Baroness, Lady O’Neill, would require a report to Parliament within a year on the impact of Clause 5 specifically.
We announced in our response to the consultation on right-to-buy reforms that we are removing the formal one-for-one right-to-buy replacement target. However, and I say this very specifically, this does not mean we are complacent about replacing homes sold. Far from it: we call on councils to go over and above replacing sold stock and to play a central role in the Government’s commitment to deliver a generational increase in social and affordable housebuilding. The one-for-one target was introduced in 2012, when the only social and affordable housing delivery that councils were asked to do was to replace homes sold under right to buy.
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The Government will continue to monitor right-to-buy sales and council housing delivery to ensure that—to respond to the noble Lord, Lord Jamieson—we are consistently delivering more social rent homes than we are losing. On this, I refer noble Lords to the annual right-to-buy sales and replacements statistics, and the statistics on the delivery of new affordable housing supply, which are published on GOV.UK. I agree with both the noble Baroness, Lady Thornhill, and the noble Lord that data is key to ensuring that we meet our ambition. I would want to see that, as I know all the Committee would.
In these statistics, noble Lords will be able to find the number of right-to-buy applications and of completed right-to-buy purchases and replacements, broken down by local authority, as well as the discount and bedroom number for properties sold. They will also be able to find the number of new social and affordable homes delivered each year, by tenure and by provider. The continued publication of these statistics will provide a sufficient overview of the impact of the Act, when it comes into force, and robust monitoring of right-to-buy sales and replacements.
On right-to-buy discounts, it is difficult to assess the impact of discount changes in isolation. We will, however, keep discount levels under review and ensure that the right balance is being struck between protecting social housing stock and enabling tenants to access home ownership. On these grounds, and on the basis that we do not want a replacement target that limits ambition, we are going to resist these amendments, but we will continue to work in partnership with councils to reinvigorate council housebuilding and ensure we are consistently replacing more homes than are lost through right to buy. On that basis, I ask the noble Baroness to withdraw her amendment.
May I ask for some clarification from the Minister? Clearly, table 4 in the impact assessment shows that under the pre-November 2024 baseline, if we take the 2034-35 figures, 4,750 homes would be built from the right-to-buy receipts and, under the new baseline, 1,550 would be built. That is 3,200 fewer homes. The assumption that we are going to have more homes available for social tenants relies on the fact that those tenants who might have bought their home will leave that home anyway. If they stay there, we will have fewer homes for new social tenants.
I think the figures stated relate to what happens once we have enacted the Bill. As I have said many times, the ambition to deliver more social homes is not just about the replacement of right-to-buy homes. Right-to-buy sales may go down, but we still anticipate that the measures being taken in the Bill will result in a net increase of 18,000 homes over the period; whereas, because the sales were going up, we would have lost 26,000 homes. With the social and affordable homes programme adding to the overall total and the net increase in homes that we are seeing through the right-to-buy programme, which is 18,000 as opposed to a 26,000 loss, we will see an increase in social housebuilding.
I thank the Minister for her response, which was very much as I would have predicted. My main point to make to her was that it was not easy to find that data—on GOV.UK you have to look for a bit here and a bit there. Where is all this information on what is such a major plank for the Government, which we totally agree with? Where is it easy to see who is doing what? Where is the analysis and where is it drawn together? Who are the shirkers and who are the leaders? It is a challenging thing. Without meaningful, accurate and localised reporting, councils cannot be properly scrutinised, which is important, and policy failure is harder to challenge. For example, we actually had net losses last year. Again, you can google that and it will tell you, but it is not easy to see it within the mountain of data. In the meantime, I have to say the magic words: I will withdraw my amendment.
57: After Clause 11, insert the following new Clause—
“Social housing estates: regeneration(1) The Secretary of State must, within 12 months of the day on which this Act is passed, lay before Parliament a document setting out proposals to support the regeneration of existing social housing estates.(2) The document under subsection (1) must include proposals relating to—(a) funding to deliver alternative housing for existing tenants during the redevelopment of social housing estates,(b) support for increasing density as part of social housing redevelopment where appropriate,(c) the use of public land and housing assets to facilitate regeneration, and(d) grant funding for energy efficiency improvements as part of redevelopment schemes.(3) In preparing the document under this section, the Secretary of State must have regard to the need to increase overall housing supply within existing urban areas.”Member's explanatory statement
This amendment would require the Government to bring forward proposals within 12 months to support regeneration of social housing estates, including decant funding and densification opportunities.
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It is worth saying that it is very clear that all housing providers are now having to deal with those with far more complex needs, disabilities and mental illness. It is tough having to ration a scarce resource on a daily basis. Housing officers are unsung heroes, in my book.
We went through the statistics at length on Monday, so let us just say that, whichever estimates you look at, we are nowhere near building either the amount or the right type of social housing needed. It is evident that demands for social housing vary considerably from area to area, and that the challenges of meeting those varied needs, with increasing homelessness and families in temporary accommodation, are bringing more councils into a precarious financial position, while others remain relatively unaffected. We believe that the responsibility to meet those needs should be spread fairly, as much as is practically possible, and that every council should take its responsibility seriously. I regret that I do not believe that is the case, which is why Amendment 53 matters. If there is no clear, consistent public record of what is happening locally, it becomes impossible to monitor trends and to direct change.
I turn briefly to the other amendments in this group. While I have some sympathy with Amendment 54 in the name of the noble Lord, Lord Holmes of Richmond, I believe it could possibly be unworkable in practice due to land availability, planning delays, and so on—all legitimate reasons for delay—so putting a time limit on it would not be helpful. We would prefer to encourage creative compliance than pinpoint an actual delivery date.
Clearly, Amendment 56 in the names of the noble Baroness, Lady O’Neill, and the noble Lord, Lord Jamieson, is almost a duplication of my amendment; likewise their Amendment 58B. It is interesting that across both Committee days we are going to be looking at collective amendments that clamour for more data of one kind or another. Obviously, it is up to Ministers to know whether they have the data they need to inform policy and make judgments on whether or not a policy is working, and we need that same data to be able to scrutinise it. In my heart, I hope the Minister tells me, “Yes, the data’s actually there, Lady Thornhill, you just weren’t looking in the right place”, but if it is available somewhere, it is probably not publicly or easily.
On Amendment 55, I am interested in what the noble Baroness, Lady O’Neill, has to say, but I hope the Government are more aspirational than one-for-one replacement, given the scale of need. But I say again that without knowing what each local authority is actually losing and delivering—hence my Amendment 92 on our first day in Committee regarding conflation of the terms “affordable” and “social” housing—we will not know what is happening on the ground. Trends over time are important, not just averages on a national level but over local authority areas, which, as we have also discussed previously, are going to get much larger. Accountability, in our view from these Benches, therefore needs to be stronger in these new mayoral authorities and the larger unitaries. I beg to move.
Think what would happen if the Government were to focus on building more homes rather than stopping families having the opportunity to own their own home. As we seek a minimum of one-for-one replacement, we could be seeing over 5,000 extra homes every year. That is 5,000 more families given the opportunity for a social home and 5,000 fewer people every year on housing waiting lists.
The amendments in my name and that of my noble friend Lady O’Neill do not seek to prescribe a particular outcome; they seek to ensure that Parliament and the public have the information necessary to assess the effectiveness of the policy and make informed decisions about its future.
I was going to say that this has been a constructive debate—maybe I should say this has been a constructive discussion—but we all recognise the need to increase housing supply and the opportunities for home ownership. I hope the Minister will reflect on the arguments made, the case for greater transparency and the need for more homes.
Our ambition far surpasses this now. We want to see more than one-for-one replacement and do not want a target that limits that ambition. As I set out my letter following Second Reading, this Bill is not the extent of our delivery ambition. Our ambition is to deliver 300,000 social and affordable homes over the course of the programme, and we are taking decisive action to reinvigorate council housebuilding, including supporting councils in our £39 billion social and affordable homes programme. We also invested £17 million last year to boost council housebuilding skills, and we have permitted councils now to combine their right-to-buy receipts with grant funding.
The Government’s impact assessment for the Bill forecast that England was on course to lose 26,000 social homes between 2026 and 2036. However, through our package of right-to-buy reforms, including allowing councils to keep all the receipts from sales—something we have long campaigned for from local government—and reducing cash discounts, alongside the provisions in the Bill, we now expect a net gain of around 18,000 homes over the same period, instead of what would have been a loss.