Levelling-up and Regeneration Bill

Baroness Swinburne Excerpts

Report stage
Wednesday 6th September 2023 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

My Lords, I thank the noble Lord, Lord Stunell, and—

[Baroness Swinburne (Con)]

I apologise but, given that we are running over what we thought was the anticipated time for starting, and given the large number of topics to discuss today on Report, I respectfully remind all participants to have a brevity objective in mind, as required in the Companion for Report stage.

[Baroness Hayman of Ullock (Lab)]

As I was saying, I thank the noble Lord, Lord Stunell, and the noble Baroness, Lady Bennett of Manor Castle, for their support for my Amendment 201. My amendment inserts a new clause for the definition of affordable housing. It asks that, within 90 days of when the

“Act is passed, a Minister … must publish the report of a consultation on the definition of affordable housing”.

Following the publication of that report, within 30 days, the definition must be updated in the National Planning Policy Framework. The reason we have put this forward is because we feel that the current definition in the National Planning Policy Framework is simply not fit for purpose.

Earlier today, we passed the amendment from the noble Lord, Lord Best, on social housing. He is not in his place, but I point out that getting that sorted out is part of managing our problem with affordable housing. So, in many ways, although they are not in the same group, these amendments in fact work together. The noble Lord is also the chair of the Affordable Housing Commission, and although he is not here, I pay tribute to the important work that he has done with that. The Affordable Housing Commission has produced an important report on this issue, Making Housing Affordable Again, which I urge all noble Lords with an interest to study.

When we consider affordable housing, we need to look at a number of issues, the first of which is to ask who has a problem with it. What the commission did was to divide the overall picture into four different groups: struggling renters; low-income older households; struggling home owners; and frustrated first-time buyers. So this issue affects a very large proportion of our population, including people who are trying to find themselves a decent, secure home. The way that housing affordability is currently defined and measured is as rents or purchase costs that are lower than in the open marketplace; we believe that that definition is both misleading and confusing. It is a crude definition, which is not helping to solve the problem. It brings “affordable housing” to a level that is way beyond the means of many who need a home.

The commission offers a new definition of affordability, which views the issue from the perspective of the household and not from the marketplace—as the current definition does. What can people pay for their housing without risking financial and personal problems? Who is facing these problems of unaffordability, and exactly what is the scale of the problem?

The NPPF definition of affordable housing is made with reference to various housing products, from social rent to low-cost home ownership. Even if eligibility is bounded by local incomes, except for social rent, of course, affordable housing remains market-led, rather than being defined by personal income. This has led to a number of local authorities being extremely sceptical about their ability to deliver the affordable housing their areas need.

A cursory glance at the affordable rent level shows that in many areas a three-bedroom, affordable-rent property cost £400 per week. This is clearly way out of the pocket of many people in this country. I suggest that the Government look at what the Affordable Housing Commission is calling on them to do. We believe it provides a good starting point for solving the housing crisis we are in.

First, it suggests a rebalancing of the housing system so that there will be affordable housing opportunities for all by 2045. Affordable housing should be made a national priority and placed at the centre of a national housing strategy. The safety net for struggling renters and home owners should be improved. A new definition and alternative measures of housing affordability should be adopted which relate to people’s actual income and circumstances, rather than just to the market.

We agree with the Affordable Housing Commission. Will the Minister accept that the current definition is not fit for purpose? In order to help the very many people who are struggling either to buy or rent a home, will the Government put into the Bill a commitment to act to change the definition so that affordable housing actually means what it says?

I have spoken on this issue a number of times. Others are saying what we are saying. The Affordable Housing Commission is saying it. People who understand the system and have identified how it can be changed for the better are offering concrete, constructive ways in which things can be improved. I hope that the Minister can accept my amendment as a starting point on this journey to improve the current situation. If I do not have her assurance that this will be the case, I will test the opinion of the House on this matter.