Affordable Housing

Baroness Donaghy Excerpts

Thursday 25th October 2018 Lords Chamber

[Baroness Donaghy (Lab)]

My Lords, I thank the noble Lord, Lord Shipley. One thing that we can be sure about in this debate is that the Minister will not use his reply to say, “I’d rather not talk about that. It’s been covered already, actually”. I can understand why the chief executive of Persimmon, Mr Jeff Fairburn, said it as he walked off the set of BBC’s “Look North”. If I had had my bonus cut from £131 million to £75 million, I might feel a bit snippy with the media as well, but I think that we can rely on the Minister to give us a good reply. More than half the homes sold by Persimmon benefited from enormous taxpayer subsidies under the Government’s Help to Buy scheme, aimed at people who would have been able to buy their own home anyway. These new homes are out of the reach of 83% of working private-renting families, even with Help to Buy. I doubt whether Mr Fairburn is interested in affordable homes, whatever the definition.

As my noble friend Lord McKenzie said, we have the lowest levels of social rented housebuilding on record. Social housing is leaching out of our housing stock because of various government policies, permitted development rights, the notorious viability assessments, which took too long to clamp down on, and finally right to buy. I question whether there should be a right to buy council housing, but at the very least councils should be able to keep 100% of receipts, instead of the one-third, for investment in new housing.

The Local Government Association has estimated that local authorities have lost enough homes to house the population of Oxford in the last five years. Termination of private rented sector tenancy is now the single lead cause of homelessness, ahead of family or relationship breakdown. Other noble Lords mentioned the borrowing cap on local authority housing and mention has been made of the lax rules surrounding permitted development rights, which represent 8% of the new-build sector, with no community obligations. I agree with all that has been said. The LGA has said that we have lost more than 7,500 affordable homes over two years under the current PDR scheme.

I turn finally to housing associations. We need to bring forward the £2 billion announcement from 2022 to now. It is a relatively small figure but it might help cash-starved housing associations to preserve their stock. In my street in Peckham there are two empty properties owned by different housing associations. One is a four-storey house and the other is a ground-floor flat. Both need major refurbishment to make them habitable. There is a desperate need for social housing in the area. What is going to happen? They are both going to be sold off. The ground-floor flat has been home to successive families in need for more than 35 years, to my knowledge. Now it will no longer be available to those who are poor. If the Government really care about housing associations, they should bring forward the £2 billion grant and stop the sell-off now.