(3 days, 13 hours ago)
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Lord Goodman of Wycombe
To ask His Majesty’s Government what recent progress they have made towards delivering 1.5 million new homes by the end of this Parliament.
The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)
My Lords, an estimated 309,600 net additional homes have been built in this Parliament, but we recognise the need to push further. We are driving progress through bold planning reforms, including the Planning and Infrastructure Act 2025, and a record £39 billion investment in social and affordable housebuilding. Investment in construction skills, our £16 billion national housing bank, rapid transformation of the building safety regulator—under the leadership of my noble friend Lord Roe—and initiatives such as the new homes accelerator programme will remove barriers and ensure that we build the homes we need.
Lord Goodman of Wycombe (Con)
I am grateful to the Minister for that Answer. Up to 100,000 new homes could be built were the Government to scrap the old, outdated EU-era nutrient neutrality regulations. Will the Government bring in new regulations to protect the environment, and scrap these old ones which are helping to deny young people and families the homes they desperately need?
Baroness Taylor of Stevenage (Lab)
New measures were introduced in the Planning and Infrastructure Act to make sure that we deal effectively with nutrient neutrality. We have had to do this without causing the impact on housebuilding that had been done under the previous Government. We have taken the steps needed. We have the nature restoration fund. Developers can work as part of this to make sure that they are able to deliver the homes and meet the needs of the environment at the same time.
Lord Sahota (Lab)
My Lords, in order to deliver these homes, local authorities need to co-operate with the Government, particularly in preparing local plans, allocating land, speeding up planning decisions, working with developers and communities, and so on. Are local authorities co-operating with the Government to deliver these 1.5 million homes in this Parliament?
Baroness Taylor of Stevenage (Lab)
As I stated, I remind my noble friend that we see our partnership with local authorities as critical to delivering the housing numbers we need. The Planning and Infrastructure Act that we passed last year will accelerate housebuilding while preserving important environmental protections, making sure that we get the consenting process sped up and a more strategic approach to nature recovery, and improving certainty in the decision-making and planning system. We have supported local authority planning capacity with the funding and training that are needed. We are working together with our partners in local authorities to make sure that we get this moving as quickly as possible.
Lord Naseby (Con)
My Lords, the Minister mentioned that local authorities are vital to the production of homes. She is right, but how is it that the Labour-controlled Greater London Authority has produced only a third of what it had as a target? Do the Government understand that a large number of young people want to own their own homes? Where is the help-to-buy scheme? By all means, have a Labour help-to-buy scheme, different from the Conservative one. Surely, those two points would enable us to provide some decent housing for people who are desperate to have a home of their own.
Baroness Taylor of Stevenage (Lab)
We have introduced a whole package of support, working with our colleagues in London to make sure that they are supported and helped to get building the homes they need.
In the previous Question, perhaps the noble Lord heard me say that I am working very closely with a whole partnership of people from across the sector on developing the support that young people need to get into home ownership, including on a new ISA that will help with this and making sure that the whole industry is focused on freeing up the system so that it is possible for young people to buy homes. It was good to hear, when I spoke to the sector last week, that both Lloyds and Santander have brought in very low-start mortgage packages. That was just last week. I am very pleased to see that, and I hope that will help some of our young people get out of high-cost renting and enable them to buy their own property.
Lord Best (CB)
My Lords, the 1.5 million new homes target is only part of the big housing jigsaw. It is about quality as well as quantity and regeneration as well as new build. All this is meant to come together in the Government’s long-term national housing strategy. This was due out about a year ago. I ask the Minister: when we will see the national housing strategy?
Baroness Taylor of Stevenage (Lab)
I am grateful to the noble Lord for his patience on the long-term housing strategy. We will be publishing that in the first quarter of this year.
Captain of the Honourable Corps of Gentlemen-at-Arms and Chief Whip (Lord Kennedy of Southwark) (Lab Co-op)
It is the turn of the Lib Dem Benches.
Baroness Thornhill (LD)
My Lords, obviously, the noble Lord was not quick enough today.
Research by Crisis and the National Housing Federation found that we need to build 90,000 social homes a year to tackle the current homelessness situation. We know that councils are spending around £2.8 billion a year on temporary accommodation. I ask the Minister: will the Government commit to a specific target for social housing within their overall 1.5 million homes target, alongside a detailed pathway to deliver these homes? We all know that that end of the housing market is the real logjam in the housing crisis.
Picking up on what the noble Lord said with regard to London, will the Government commit to looking again at their disappointing decision to slash the proportion of social homes required for all new developments in London?
Baroness Taylor of Stevenage (Lab)
The target for the £39 billion spend that we have is that 60% of that will be social housing. The whole amount will be spent on social and affordable housing. That is the most money that has been invested in social and affordable housing for a very long time, and I am very proud of that record.
In relation to the noble Baroness’s question on London, having discussed this extensively with London councils, the important thing is to get housebuilding moving in London. London authorities will decide the percentage of social housing. We are working closely with them on that.
Lord Kennedy of Southwark (Lab Co-op)
We will hear from the Labour Benches, then the Conservative Benches.
Baroness Winterton of Doncaster (Lab)
My Lords, my noble friend the Minister has outlined very clearly what a great opportunity this target is, for not only local jobs but local training schemes and use of local materials in building the houses. She mentioned local authorities, but what discussions are being held with developers and housebuilders to ensure that they commit to using local labour, putting on proper training schemes and using local materials whenever they can?
Baroness Taylor of Stevenage (Lab)
It is very important that as we go through this process of building more homes, we also create the jobs to go alongside that. We have been working very closely with the sector and particularly with the developer skills group to make sure that we invest in skills as we go along this path of building. It has been very supportive, to the extent of investing £140 million in skills alongside the skills funding that the Government have put in. It is very much committed to this. We welcome the Home Builders Federation statement in July 2024 looking to rapidly increase the pace at which homes are built, deliver the high-quality affordable homes that the country needs and provide the skilled jobs that we know we need to deliver that.
Lord Jamieson (Con)
My Lords, as the Minister said earlier, only a little over 300,000 additional homes have been delivered in the first 18 months of this Government. Given their target of 1.5 million homes, they will have to deliver at the rate of 342,000 homes a year. Previously, in response to my noble friend Lady Scott of Bybrook, the Minister said that they would achieve this by speeding up existing planning permissions. Given that housing starts continue to run at well below the average rate under the previous Conservative Government, can the Minister say when this will happen?
Baroness Taylor of Stevenage (Lab)
It ill behoves the Government who caused the housing crisis to be pressing us on this. We have already taken very significant steps, which I have outlined, to move this forward. We updated the National Planning Policy Framework. It is early yet to see an impact from those changes. We expect to see the effects feeding through into a higher number of homes being granted permission later in the year. However, new figures show that already we are seeing some green shoots of recovery, with a 29% increase in housing starts compared with 2024. It will take time to turn the tide after decades of underinvestment and a failure to build the homes and infrastructure that we needed to keep up with demand. We expect housebuilding to ramp up, particularly in the later years of the Parliament, as our reforms take effect. We will continue on our mission to deliver those 1.5 million homes.
Lord Birt (CB)
My Lords, I return to the question of social housing. Since 1990, the UK’s population has grown by around 20%—an additional 12 million people. In that same period, our stock of social housing has not grown but contracted by nearly 10%. We now have fewer than 400,000 units of social housing than in 1990. Precisely how many additional units of social housing do the Government expect to have by 2030?
Baroness Taylor of Stevenage (Lab)
The Government are committed to the biggest increase in social and affordable housing in a generation. That £39 billion social and affordable housing programme I spoke about will combine the best elements of previous programmes with new design elements to make sure that we maximise the delivery that we want to see, enabling providers to build the types of homes that the country needs. The ambition is to deliver around 300,000 homes with at least 60% social rent. We have also provided long-term income stability for social housing providers with a 10-year rent settlement, which will help to give them the stability and confidence they need to invest even further in funding for social housing. It is a comprehensive policy package. We want a simpler, more transparent system and are driving forward. We know that social housing is important.