Private Rented Sector

Baroness Bennett of Manor Castle Excerpts

Monday 20th June 2022 Lords Chamber

[Lord Greenhalgh (Con)]

There are two parts to how the right reverend Prelate has put the question. The first is that we need to make sure that there is enough supply of social housing, otherwise people who should be in social housing rather than in private housing lose out. There is a real commitment in the affordable homes programme to deliver far more social rented homes: 32,000, which is double the amount of social rented homes in this period than in the previous one. On the cost of living, the best thing is to take action now, and there have been quite a few measures. Some are universal but some are aimed at pensioners; there is a separate one-off payment of £300 to 8 million pensioner households, and obviously there are the measures around people who require support around the costs of essentials. The Government have stepped in where there need to be specific measures, as well as universal measures around fuel bills. Equally, however, the right reverend Prelate is right that we need to ensure that we continue to build more homes and especially ensure that there are more social homes.

[Baroness Bennett of Manor Castle (GP)]

My Lords, tenants’ groups and campaigners say that they need three layers of foundation to give everyone the secure and stable home that they need. The first is decent structural condition, maintenance and repairs, and the second is not to be evicted unfairly. As other questioners have said, this White Paper makes considerable progress on both those areas. However, the third key part of the foundation according to renters’ groups is to have a home that you can afford. The Minister said that the Government were looking at rent controls and pointed back to the kind of rent controls that we had in the 1970s. However, are the Government prepared to consider different, more flexible, smarter forms of rent control? In Scotland, the Green Tenants’ Rights Minister is looking at ways in which rent controls can deliver what people actually need, which is rental costs that are not more than 25% of their income. Another way of looking at this might be that powers for rent control are given to mayors, like the Mayor of London and other regional and city mayors around the country. That would be a way of experimenting and working. How can the Government ensure that people can afford to rent, which is an essential foundation?

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[Lord Greenhalgh (Con)]

It is fair to say that we raised the local housing allowance and maintained that raise. What the noble Baroness is saying is that we have not increased it further. Let us give the Government credit for having raised it in the first place and having maintained it. The reality is that it goes back to getting the balance of tenures right. We have far too many people who cannot afford to live in market-rate accommodation and therefore they need taxpayer support. The housing benefit bill has effectively ballooned from when I was first a council leader from around £7 billion to around £30 billion, I think—or at least, that is what the projections are. That is completely unsustainable. We need more affordable housing and social housing to mitigate the unintended consequences of getting the taxpayer to fund these very high-cost homes for people who cannot afford to live in them. That is why there is a need to look at other ways of answering that point.

[Baroness Bennett of Manor Castle (GP)]

I join the noble Baroness, Lady Thornhill, on the Minister’s celebration of social and genuinely affordable housing. In that case, why are we looking at extending the right to buy instead of ending that great privatisation of social and affordable housing?

[Lord Greenhalgh (Con)]

I can answer that very sincerely, having been a local authority leader in an area where one-third of the housing was social housing. It had very high levels of council and housing association housing. I start with a definition that social housing should be a springboard to home ownership, for those who want it to be. It should not just be a destination. The issue is that once you have got the receipt, it gets pocketed by the Treasury and not reinvested in social housing—something that the noble Baroness, Lady Thornhill, has raised before now. The Government are putting more flexibility in and allowing more money to go back into supply. There are strong arguments that all that money should go back in; therefore, you allow mobility and fluidity and create a springboard for those people who can afford to own their own homes. That is a great thing, which should be available to both council tenants and housing association tenants.