Supported Housing (Regulatory Oversight) Bill

Baroness Warwick of Undercliffe Excerpts

2nd reading
Friday 21st April 2023 Lords Chamber

[Baroness Warwick of Undercliffe (Lab)]

My Lords, it is clear that there is an urgent need to reform non-commissioned exempt accommodation. I congratulate the noble Lord, Lord Best, on bringing the Bill forward. I wholeheartedly support its aim to drive rogue landlords out of this part of the supported housing market.

It is important to stress, as the noble Lord did, that many exempt-accommodation providers deliver high-quality services and homes that are desperately needed, but rogue providers have been able to enter this part of the market, trading on gaps in funding as well as gaps in oversight. As a result, some residents now live in disgraceful and completely unacceptable conditions. Vulnerable residents have reported truly shocking examples of unsafe housing, non-existent care or support services, feeling financially trapped and having a lack of control over where they were housed. They have experienced exploitation and neglect.

These issues were well documented in the Levelling Up, Housing and Communities Select Committee report into exempt accommodation published last October. It provided a thorough account of why these problems have arisen and what should be done about it. It presented compelling evidence for immediate reform. The noble Lord, Lord Best, a member of that Select Committee, has presented us with an important step in the right direction. His Bill seeks to put in place greater regulation of supported exempt accommodation and to give local authorities the tools to tackle problematic provision. From my previous involvement in the housing sector, I know that exempt accommodation providers are not inherently poor quality or poor value for money. Many housing associations use this model to provide well-run, non-commissioned services appropriate for people with support needs, including sheltered housing for older people, refuges and hostels for people who are homeless.

So, how have some unscrupulous landlords and organisations been able to exploit the system to extract high levels of return while delivering poor-quality or unsuitable accommodation and services? While oversight and regulation of rogue providers has been inadequate in some parts of the country, underfunding of commissioned services has led to a significant and rising unmet housing need among vulnerable groups. Growing numbers of people are desperate for a home. This can make it feel impossible for people to say no to the offer of a home, even if it does not feel safe. The growth of poor-quality providers has to be understood in that context. We are facing an acute shortage of social housing, so it is essential that reforms are accompanied by increasing the supply of new supported housing to meet this growing need.

The Government’s recent announcement on adult social care calls that into question and is deeply worrying. The £300 million housing transformation fund—first announced by the Government in December 2021—would have been a vital step towards ensuring that some of the most vulnerable people have the support or care they need in a home that is accessible to them. The Government seem to have reneged on this commitment during Easter Recess when they published their plan for adult social care reform for 2023-24 and 2024-25, which omitted it completely. Can the Minister explain this decision and confirm whether this pre-committed investment will be made available to supported housing providers via alternative funding streams?

An investment of £300 million to integrate housing with local health and social care strategies would have significantly bolstered supported housing’s contribution to the strategic aims and statutory duties of the NHS, social care and criminal justice services, boosting outcomes for resident health and well-being. In a time of huge cost pressures, supported housing urgently needs greater security of funding and a strategic footing to meet growing need across the population. I urge the Government to address this as part of their efforts to root out poor-quality provision.

The National Housing Federation, which is a statutory consultee in this legislation, has welcomed this Bill and is committed to working closely with the Government to ensure that the reforms are targeted and effective. It has pointed out that many supported housing providers operate in dozens of local authority areas, so the new licensing framework in this legislation could present a significant new financial and administrative burden for tenants and not for profit landlords. This is particularly true of older people’s housing let on a social housing rent, which is subject to consumer regulation by the Regulator of Social Housing and is not the primary target of these regulations.

The NHF has called for a clear exemption or a passporting system for older persons’ housing and other types of supported housing where there is already an adequate regulatory framework to accompany the new licensing system, so that good-quality providers are not subject to duplicated regulations and significant new administrative costs. This will also reduce the demand on local authority resources and allow councils to concentrate on problematic schemes and providers. I hope the Government will take this on board.

Clarification is also needed around the costs of obtaining a licence and whether this will be subject to regulation. If uncapped, costly licensing schemes could act as a financial barrier to much-needed supported housing. This detrimental effect would surely be contrary to the laudable aims of this Bill. I would be grateful if the Minister could confirm whether a cap will be in place.

The Long Title of the Bill, as the noble Lord, Lord Best, pointed out, refers to the regulation of supported exempt accommodation. This definition has no clear legal status, so the scope of these regulations is not yet clear. Establishing a rigorous definition and the scope of regulation in secondary legislation will be essential to reduce the risk of unintended consequences and ensure that local authorities have the right powers and resources to tackle the rogue providers.

Having said that, I end with the point I made earlier: it is vital that there is proper funding for housing-related support so that new supported housing can be provided to meet the unmet need that exists right across the country. As we drive rogue providers out of the market, it is incumbent on the Government to support the delivery of the high-quality supported housing that residents deserve.

--- Later in debate ---

[Baroness Scott of Bybrook (Con)]

I think that that will be part of the overall research into how the system works and where the money is. It was interesting that, even at the Select Committee, a provider said that there is money in the system but it is not being used correctly. We need to have the data on this to look at all those issues.

[Baroness Warwick of Undercliffe (Lab)]

The noble Baroness gave us a very comprehensive response, but will she comment on my point about the £300 million in the adult social care strategy?

[Baroness Scott of Bybrook (Con)]

I understand that that has gone. I do not know the details, but I am very happy to write to the noble Baroness.

Supported Housing

Baroness Warwick of Undercliffe Excerpts

Thursday 30th March 2023 Grand Committee

Asked by

[Baroness Warwick of Undercliffe]

To ask His Majesty’s Government what assessment they have made of the case for providing more supported housing, given its impact on homelessness prevention, health and well-being.

[Baroness Warwick of Undercliffe (Lab)]

My Lords, I have no interests to declare as I recently stepped down as chair of the National Housing Federation. In that role, I was fortunate to visit a large number of supported housing providers and was incredibly impressed by their work. The tragedy is that there is not enough of it. When I think of what can be achieved for those who benefit from supported housing and the savings to the public purse, it is heartbreaking that we do not do more.

A definition might be helpful. Supported housing is accommodation provided alongside support and supervision to help people live as independently as possible in the community. It might be a shared house for people with learning disabilities, a hostel for people who have experienced homelessness or specialist housing for people transitioning out of psychiatric care. Housing associations are the main providers, with more than 400,000 of these homes.

I feel so passionate about this because I have seen that good-quality, suitable supported housing can have significant positive—indeed, life-changing—outcomes for the people it supports. Research has shown that it also plays a key role in relieving pressures on the NHS and social care, criminal justice and housing systems, saving the public purse around £940 per resident per year. I will say a bit more about this, look at some of the challenges facing this service and highlight some potential solutions that I hope the Minister can respond to.

Earlier this month, research was published by Imogen Blood & Associates in partnership with the Centre for Housing Policy at the University of York. It was commissioned by the National Housing Federation and a number of housing associations to understand better the ways in which supported housing supports and interacts with the NHS, social care, the justice system and other public services and its impact on homelessness, health and well-being. Significantly, the research found that good-quality supported housing is shown to aid its residents in building healthy relationships, higher esteem and independence and in developing a greater sense of agency over their lives. It shines a light on how supported housing relieves pressures on the social care, health, criminal justice and housing sectors, ultimately lessening demands on the public purse.

The complexity of need of those living in supported housing is striking. It offers a more person-centred package that can offer greater safety or security than mainstream housing, because multiple needs can most effectively be met as part of a combined housing and support package. The report’s survey of service users found clear evidence to back up this approach; 84% of respondents who had at least five identified needs had made some progress during their stay in supported housing.

The impact of supported housing on homelessness prevention cannot be overlooked. Short-term and transitional supported housing plays a key role in reducing and preventing high-risk forms of homelessness. In 2019-20, housing associations housed more than 57,000 former homeless households, nearly 35,000 of which had been found to be statutorily homeless. Of course, as people benefit, they can move on to independent tenancies, but often that is not possible and they have to stay longer than necessary because there is no affordable and suitable housing. In her response, I hope the Minister will say something about this wider problem facing the country.

The research is also clear that supported housing makes a substantial contribution in helping residents to access primary care and specialist treatment and diagnosis from partner services to maintain their health and well-being. One in four residents across all types of schemes has a physical or sensory disability or a limiting long-term health condition. Effective partnership working with the NHS and social services is therefore critical. Supported housing enables hard-to-reach individuals to access timely preventive healthcare, reducing avoidable emergencies and admissions.

This point was amply demonstrated by the Adult Social Care Committee in its recent report on the state of the adult social care system in England. It called for

“a fundamental rethinking of how we understand, approach and design social care”,

including

“the solutions offered by accessible and inclusive housing”.

I am a member of the committee, so excellently chaired by my noble friend Lady Andrews. Our report sets out what we think needs to change to make this possible—

“to enable every citizen to live a ‘gloriously ordinary life’, regardless of their age or disability.”

Indeed, it is being debated today in the Chamber as we speak. I hope we will have the Government’s response soon.

It will be obvious by now that there are challenges. Despite its significant benefits to the NHS, social care, criminal justice, and housing systems, supported housing is hindered by a lack of government investment and focus. Supported housing in the social rented sector operates on very tight margins and inflationary pressures are pushing up the cost of all aspects of managing schemes.

One of the biggest challenges facing supported housing has been the reduction in funding over time. This is amplified by cuts right across the public sector, especially for local authorities. Inevitably, rationing has followed, with social care resources concentrated on the highest-need individuals. A procurement-driven, contractual relationship between local authorities and the supported housing sector has led to a lack of long-term security for providers. In the absence of a national strategy and a secure funding stream, a shift towards localism has led to a fragmented approach. As local authority spending on housing-related support has reduced over the past decade, there has been an increase in non-commissioned provision. Profit-seeking landlords have been able to exploit this part of the market by providing dangerously inadequate housing and support services for vulnerable people.

The noble Lord, Lord Best, who I am delighted has chosen to speak in this debate, will bring forward the Supported Housing (Regulatory Oversight) Bill for its Second Reading after the Easter Recess. I strongly support this legislation’s intention to drive rogue landlords out of the supported housing market. However, alongside improved regulation must also come greater security of funding for good providers so that rogue operators cannot exploit this unmet housing need.

I will conclude by touching on some of the potential solutions to the challenges facing supported housing. In their 2021 White Paper, People at the Heart of Care, the Government made a welcome commitment to make

“every decision about care a decision about housing.”

To turn this commitment into a reality, supported housing must play a critical and enhanced role. First, this could be achieved through substantial investment in social housing to improve the short-term supported housing sector’s ability to move people into suitable independent tenancies. I would be grateful if the Minister could set out what the Government are doing to deliver this much-needed social housing.

The Government could also ring-fence the long-term revenue funding for housing-related support to ensure that spending matches, at the very least, the £1.6 billion per year allocated in 2010. Revenue funding for support would help local authorities to commission more effective and better-quality supported housing, as rogue landlords are driven out of this market. What assessment has the Minister made of current levels of revenue funding for support and its impact on supported housing providers?

Gathering better data about the profile and needs of people living in support housing would allow providers, local authorities and central government to deliver better policy solutions for vulnerable and marginalised groups. Does the Minister agree that there is a clear need to improve data and information about the supported housing sector?

Finally, the Government could secure a quick win by allocating the £300 million committed in the Department of Health and Social Care’s strategic housing fund, so that supported housing can continue to support the NHS and social care services. Can the Minister tell us if, and when, this will be done?

Housebuilding

Baroness Warwick of Undercliffe Excerpts

Thursday 30th March 2023 Lords Chamber

[Baroness Scott of Bybrook (Con)]

My noble friend is absolutely right and if he has the time over the Recess to read the levelling-up Bill, he will see that the Government have plans and are committed to building better houses with better design, and building more energy-efficient housing as well.

[Baroness Warwick of Undercliffe (Lab)]

My Lords, changes to the planning system, to which the Minister referred, pose a risk to the supply of new housing. In a recent public letter to the Secretary of State, 19 leading organisations from across the housing sector expressed serious concerns about the impact of proposals, particularly for the new infrastructure levy and its impact on the supply of housing, particularly social and affordable housing. What steps are the Government taking to respond to these widespread concerns and protect affordable housing delivery?

[Baroness Scott of Bybrook (Con)]

We do not agree. We absolutely want to protect the amount of affordable housing and particularly the social housing part of that affordable housing. We believe the Bill will help us to do that. We will continue with it and continue to deliver much-needed housing in that sector.

Housing: Conditions in Rented Sector

Baroness Warwick of Undercliffe Excerpts

Thursday 16th March 2023 Lords Chamber

[Baroness Scott of Bybrook (Con)]

My Lords, the Social Housing (Regulation) Bill that we were talking about earlier will deal with a lot of that problem, particularly with Awaab’s law that has entered that Bill in the Commons. There will be clear timescales, first, for housing providers to respond to tenants, and, secondly, for any serious safety defects in housing to also be dealt with in a good timescale.

[Baroness Warwick of Undercliffe (Lab)]

My Lords, I am sure the noble Baroness will agree that housing associations are very keen to do more to regenerate existing housing but are unable to do so without additional government funding. Will she confirm that the Government will look to maximise the use of the existing funding through the affordable homes programme to support housing-led regeneration right across the country?

[Baroness Scott of Bybrook (Con)]

My Lords, it is the responsibility of social housing providers to maintain their properties, and that includes regeneration, but we have found a £30 million fund to help Greater Manchester and the West Midlands and we will be looking at what more we can do for the sector.

Levelling-up and Regeneration Bill

Baroness Warwick of Undercliffe Excerpts

2nd reading
Tuesday 17th January 2023 Lords Chamber

[Baroness Warwick of Undercliffe (Lab)]

My Lords, it is a great pleasure to follow the noble Lord, Lord Bourne. As we have heard, levelling up embraces so many economic and social challenges, but I believe that the most fundamental is ensuring that families have a home, and it is on this basic issue that I want to focus.

In December 2020, PricewaterhouseCoopers published a survey titled “Rethinking ‘levelling up’”. It found that:

“Housing was the stand out priority for our respondents ... 70% agree a focus on housing would be the most effective in levelling up the country and reducing inequality.”


Polling by YouGov last year found that a clear majority of Conservatives want their party to deliver more affordable housing, with two-thirds calling for new developments to include more affordable housing.

It is clear that housing must play a key role in the levelling-up agenda. Social housing in particular is central to addressing regional inequalities, particularly health outcomes. For families struggling with unaffordable private rents and unsuitable or overcrowded accommodation, social housing would transform living standards, and the nation’s health. Yet we currently face a grave affordable housing crisis: 4.2 million people are in need of social housing in England. Research from the National Housing Federation found that to meet demand, England currently needs 340,000 new homes a year for the next 10 years, including 145,000 affordable homes.

Social housing on this scale would help to bring down the housing benefit bill, support better health and well-being outcomes and reduce reliance on temporary accommodation. So why have successive Governments failed to realise this? Why have they allowed the supply of social rented housing to fall by 85% since 2010-11? The Bill could have really got to grips with this. Sadly, it is a missed opportunity to tackle our housing crisis and deliver the real levelling up which communities need and voters clearly want.

Happily, the noble Lord, Lord Bourne, mentioned health. There is a strong link between housing and health. In November 2021, a Building Research Establishment report, “The Cost of Poor Housing in England”, found that poor housing could be costing the NHS £1.5 billion a year in treatment bills. Legal and General’s research, “Levelling up through health”, found that investing in housing, particularly affordable housing, yields a multiplier effect which creates jobs, boosting the economy as well as public well-being.

In particular, supported housing helps ease the pressure on the NHS and care services and saves the public purse around £940 per resident per year. It makes a vital contribution to positive health outcomes for disabled people, homeless people, older people, people with mental health problems, people who have experienced domestic abuse and many others. Yet the sector is under acute pressure from inflation, rising costs and funding uncertainty, leaving vulnerable people without a safe place to live. Will the Minister give us the Government’s estimate of the impact on levelling up of the contraction in supported housing, and how they propose to reverse that decline?

I will briefly touch on regeneration, featured in the title of the Bill, and planning. Many communities are crying out for regeneration, but where are the measures that would unlock housing-led regeneration? With access to appropriate funding, councils and housing associations can deliver regeneration and employment support where it is most needed. Under current net additionality rules, housing associations cannot access grant funding for regeneration projects from Homes England, so they cannot regenerate homes that are often unfit for purpose. By changing that rule, the Government could unlock significant new funding for regeneration, delivering high-quality new affordable homes that support better environmental and health outcomes for residents. I hope the Minister will address this issue in her reply.

Lastly, on planning, there is a real risk that the Bill would further reduce the supply of affordable housing. Part 4 of the legislation creates provision for a new infrastructure levy to replace the current system for developer contributions via the planning system. That system is responsible for almost 50% of all new affordable housing. Without further protections included in the Bill, the new infrastructure levy risks diverting funds away from affordable housing towards other unspecified forms of infrastructure. In areas of low land value, it is difficult to see how levy rates will be able to deliver the same level of affordable housing as the present system. Ministers have said that the levy will deliver at least as much affordable housing as the current system, but can the Minister provide the evidence to support that claim? I urge the Minister to heed the calls from across this House, and from the housing sector, and include stronger protections for affordable housing in the Bill.

Domestic Abuse Victims: Housing Benefit

Baroness Warwick of Undercliffe Excerpts

Monday 12th December 2022 Lords Chamber

[Baroness Scott of Bybrook (Con)]

Of course I understand that, and I will certainly take that back and make sure we are looking at that particular group of young women.

[Baroness Warwick of Undercliffe (Lab)]

Does the Minister accept that this needs to be seen in the context of a chronic shortage of truly affordable homes and that there has been a very considerable increase in the number of unscrupulous agencies exploiting gaps in the regulatory regime in order to claim higher benefit levels, effectively, without providing even the most minimal support? Can she confirm that the Government are aware of the extent of this problem now and where the problem arises and that the review that she has indicated has been undertaken will make sure that those unscrupulous agencies will be stopped completely?

[Baroness Scott of Bybrook (Con)]

Yes, the Government are aware and, yes, we always need more social housing. There are more and more pressures on social housing. The Supported Housing (Regulatory Oversight) Bill, which had its Second Reading in the other place on 18 November, is being supported by the Government. It should, through licensing and regulation, stop these rogue landlords for the future.

Housing Market

Baroness Warwick of Undercliffe Excerpts

Thursday 17th November 2022 Lords Chamber

Moved by

[Baroness Warwick of Undercliffe]

That this House takes note of the multiple problems affecting all tenures in the housing market in England; and the case for a coherent strategy to encompass the social, economic, and environmental aspects of housing and construction.

[Baroness Warwick of Undercliffe (Lab)]

My Lords, there has been no shortage of reports on housing of all tenures over the past 10 years. There is a general consensus that our housing market is not fit for purpose. We are not building enough new homes; most houses that are built are unaffordable except to those on above average earnings; young people find it impossible to get on to the housing ladder; we have a growing elderly population in homes not adapted to suit their needs; and more and more people are being forced into the private rented sector.

The House of Lords Built Environment Committee addressed many of these problems in its 2021 report and stressed the need to improve housing supply, saying

“too many people are living in expensive, unsuitable, poor quality homes.”

I am sure that all these issues and more will be raised in this debate. I will focus most of my contribution on social and supported homes, but I start with some very basic facts.

Looking at affordability, the latest ONS figures show that the average UK house price was £296,000 in August 2022, up 14.3% over the previous year in England. Prices in England have gone up by 76% since 2012. Despite regional differences, all areas have experienced increased prices. Average house prices in London, despite it having the lowest annual house price growth rate, remain the most expensive of any region in the UK. The ONS also estimates that full-time employees can typically expect to spend around 9.1 times their workplace-based annual earnings on purchasing a home in England, compared to 3.5 times in 1997. The number of new social rented homes has fallen by over 80% since 2010. The Government committed in their 2019 manifesto to build 300,000 new homes annually by the mid-2020s. I hope the Minister will tell the House what plans are in place to deliver on those numbers, given the stark facts I have listed.

The Grenfell Tower tragedy of June 2017, in which 72 people lost their lives in a high-rise fire in west London, focused political attention on social housing and the relationship between tenants and landlords. The Government’s response has been painfully slow. Although they have begun to make changes, as the right reverend Prelate the Bishop of Chelmsford said in a recent debate, there is a need for significant investment in new social housing and a comprehensive housing strategy.

We currently face a grave affordable housing crisis which continues to worsen, with 4.2 million people currently in need of social housing in England. Understanding the scale and types of housing need across the country is essential for planning effective policy responses and informing the debate around the need for new homes. People in Housing Need, a report published by the National Housing Federation last December, found that half a million more families are in need of social housing than are recorded on official housing waiting lists. Two million children in England—one in every five—are living in overcrowded, unaffordable or unsuitable homes. Some 1.3 million of these children are in need of social housing, as this is the only suitable and affordable type of home for their families.

Need for social housing has risen in all parts of the country, yet the supply of social rented housing has fallen, as I have said, by 85% since 2010-11, with the number of social rent homes available for letting each year also falling since 2014-15. We are living through a severe crisis of housing supply and affordability, which is increasing housing vulnerability. Long-term investment in social housing would provide people with suitable homes that they can afford and support the Government’s commitment to level up disadvantaged communities across the country. Social housing brings down the housing benefit bill, supports better health and well-being outcomes and reduces reliance on temporary accommodation.

Last year, housing associations built more than 38,000 new homes. Building these homes directly added £2.1 billion to the national economy, supporting more than 36,000 jobs. Housing associations in England currently provide 2.8 million homes for 6 million people, housing 11% of the population. The lower rents they charge save tenants £9 billion annually, making significant savings for the Treasury by bringing down the housing benefit bill. However, current inflationary pressures are having a significant impact on housing associations’ ability to deliver new developments. According to data commissioned from the Centre for Economics and Business Research, material costs for repairs and maintenance have increased by 14% and it is 12.3% more expensive to build new homes than it was last year.

Planning reforms included in the Levelling-Up and Regeneration Bill would replace the Section 106 agreements with a new infrastructure levy. This would have significant implications for the delivery of new affordable housing. Although Section 106 is not perfect, it delivers significant numbers of affordable homes; currently around 50% of all new affordable housing is delivered in this way. As it stands in the Bill, the infrastructure levy would enable local authorities to divert developer contributions away from affordable housing and towards other unspecified forms of infrastructure. Around two-thirds of Section 106 proceeds currently go towards affordable housing, so this would represent a dramatic tilt away from affordable housing delivery when demand for it is increasing all over the country. Will the Minister tell us what steps the Government are taking to ensure that their new infrastructure levy does not result in a net loss of affordable and social housing delivered via the planning system?

The current energy and cost of living crisis urgently solidifies the importance of energy-efficient homes for the future. England’s homes produce more carbon emissions every year than are produced by all the country’s cars. Much of the country is living in draughty homes that are not fit for purpose, which not only has an impact on the environment and the future climate but leaves many unable to afford to heat their homes. It is imperative that we decarbonise all homes in England, to reach the national net-zero targets by 2050. The social housing sector is the best place for the Government to start. The quantity and variety of homes within the sector mean that there will be more opportunities to deliver change at scale and provide the market mechanisms required to build up supply chains.

It is vital that the energy efficiencies of homes are greatly improved. Over 60% of social homes are certified EPC C or above, but other tenures average just under 40%. An immediate commitment to long-term retrofit funding will do wonders to move people away from gas and prevent residents moving into fuel poverty. Will the Minister protect the existing social housing decarbonisation fund? Can she tell the House when the Government will release the remainder of the £3.8 billion investment up to 2030?

The horrific tragedy at Grenfell Tower has shown that more needs to be done to ensure that tenants are listened to by their landlords when they talk about issues related to quality and safety. Currently, 23% of privately rented homes are non-decent, rising to 29% of homes privately rented by people receiving housing support. Some 16% of owner-occupied homes and 12% of social housing homes are currently non-decent. The recent appalling case in Lancashire reinforces this point.

Social housing landlords have been working to encourage a culture of transparency. Some 207 housing associations have signed up to the Together with Tenants charter, which has developed relationships of mutual trust and respect in over 2 million homes. The Social Housing (Regulation) Bill is a welcome step to empowering residents through stronger consumer regulations. Does the Minister agree that any measures brought forward must be meaningful to residents but also proportional to the capacity and resources available for housing providers of all sizes?

I now move on to supported housing. Good-quality supported housing transforms lives. It gives people choice and provides tailored, person-centred support that is vital to their resilience, health and well-being. Residents with physical and mental health needs benefit from specialist homes and services, and live independent, healthy lives. Supported housing can be a lifeline for older people and those with long-term care and support needs, including learning disabilities, autism and mental health conditions. This vital housing resource is facing a number of acute funding pressures which represent a serious threat to its long-term future. Against a backdrop of reduction in commissioning, the current inflationary pressures are crippling supported housing services, with increases in energy costs, costs of repairs, maintenance, building safety upgrades, legal and insurance costs and the costs of cleaning materials. The sector is also experiencing significant issues with recruitment and retention of staff, largely due to the low levels of pay providers are currently able to offer.

The cost of providing supported housing schemes is much higher than in other tenures. Operating margins for supported and sheltered housing schemes are tight and are on average 8% lower than social housing lettings overall. These margins have become only tighter as costs have risen across the sector. For example, one small supported housing provider I know of is currently operating on a very thin margin of 0.9%. One medium-sized provider recently saw bills for its gas and electricity increase by 100% from last year to this year, from £1 million to £2 million, adding that if it had to go out to tender at this point, the bill would come to £5 million. Some housing associations are considering pulling out of supported housing provision altogether. Given the unique funding pressures facing this vital part of the sector, can the Minister tell us what the Government are doing to improve funding certainty for supported housing providers?

The Government have produced a number of policies to address some of the issues I have outlined, but they have made little or no progress on the underpinning problem: we are not building enough homes, and we are not remediating enough of the existing homes which form the vast bulk of the housing market.

In conclusion, it is clear that we need a joined-up, long-term, outcomes-based strategy for housing people on lower incomes. Reform in the sector is often piecemeal and disjointed, as illustrated by the fact that we have had five different Housing Ministers in the past year and 14 different Ministers since 2010. Affordable housing is a key driver of economic growth. Managing and maintaining housing associations’ existing homes directly adds £11 billion to the national economy annually. Housing associations are an essential part of the housing market. I hope that the Minister will agree that it is vital that they are able to continue this contribution and deliver much more.

--- Later in debate ---

[Baroness Warwick of Undercliffe (Lab)]

My Lords, I thank the Minister for her very thorough response, much of which we need to take away and concentrate on. I appreciate the detailed way in which she sought to respond to the questions raised and the comments made.

I will not go over the different contributions that have been made. It has been a quite illuminating debate. It is intriguing that each of us has come forward with rather different perspectives on the market. However, there was a considerable degree of consensus about the major problem that faces this country, which is that we are just not building enough homes. I remind the Minister, in her optimism about building new social homes, of the 4.2 million people who need them.

I also thank my noble friend Lady Taylor for her wonderful and passionate maiden speech, which added considerable lustre to the debate and gave us a wonderful picture of somebody growing up not just in a city but with a city, and of all the lessons that were learned and the amazing contribution that she has made to her local government area over so many years. I thank all noble Lords for their contributions.

Motion agreed.

Social Housing (Regulation) Bill [HL]

Baroness Warwick of Undercliffe Excerpts

2nd reading
Monday 27th June 2022 Lords Chamber

[Baroness Warwick of Undercliffe (Lab)]

My Lords, I add to the compliments to the noble Viscount, Lord Camrose, on a most thoughtful and interesting speech. It was something to ponder on and I am sure that, in further contributions to the housing debates, it will be possible to expand on some of his thoughts and ideas. I am also delighted to follow the noble Lord, Lord Bourne of Aberystwyth, with whom I share a number of interests.

I am pleased today to welcome unreservedly the Social Housing (Regulation) Bill, as others have. It is vital legislation, which will give residents a much more powerful voice when it comes to the homes in which they live. It is an important part of the response to the horrific events at Grenfell Tower five years ago. The Bill goes a long way to address constructively some of the key issues that matter most to residents and social housing providers, including quality of services, safety and performance.

I declare an interest as chair of the National Housing Federation, the trade body for England’s housing associations, a position I have held since 2015. During my tenure in this role, which draws to a close in September, I have been privileged to see first-hand the ways housing associations work tirelessly to deliver good-quality, secure housing for millions of people across the country. The important role that housing associations and social housing can play in every community was highlighted to me during the pandemic, when the sector galvanised at speed to keep residents safe, keep vital services operating and protect residents’ financial security by committing to a no-evictions pledge, which is still in place today.

Most strikingly, however, I have seen from what I regard as a brilliant sector a continued and unfailing commitment to learn and improve where services are not meeting residents’ expectations and needs—and that is exactly why the sector stands behind this legislation. Since the very start of the process of developing the social housing White Paper, from those early conversations with the then Housing Minister and tenants across the country following the Grenfell fire, the NHF and its members have been engaged and proactive in seeking change. There was a clear message from tenants that social housing providers were not always living up to the high standards that we rightly expect from that sector, with its long and proud history of housing people in need. We were not always listening to tenants’ views as closely as we could and should, or responding quickly enough to their concerns.

While it may not always have been easy to listen to such criticisms, the sector is now unflinching in recognising where improvements could be made and is always committed to getting things right. In fact, the sector stepped forward without legislation or government policy decisions to develop, along with residents, Together with Tenants, a sector-wide initiative focused on strengthening the relationship between residents and housing association landlords. Based on a four-point plan and charter, the programme has been delivering tangible changes in accountability, transparency and governance across housing associations since its launch in 2019. To date, 207 housing associations are signed up to the programme, covering 83% of all housing association homes. The NHF was pleased to see Together with Tenants referenced in the White Paper. I am confident that the programme has laid excellent foundations on which the regulations brought forward by the Bill can stand securely.

Furthermore, in the last three weeks the sector has taken a huge step forward in tackling issues of poor-quality housing. Earlier this month it was announced that the National Housing Federation and the Chartered Institute of Housing have worked together to set up an independent panel to make swift recommendations to tackle issues of poor-quality housing in the sector. We have seen from reports on ITV News and campaigns on social media that some residents have been badly let down by unacceptable problems with housing quality and poor customer service. The work of the new panel, chaired by Helen Baker, the chair of Shelter and an expert in housing, social care, health and education, will guide housing associations to tackle these problems head-on.

I am proud to say that the NHF and its members embrace a culture of transparency and openness when it comes to performance in dealing with issues that matter to residents, and we want that to be clear, meaningful and inclusive. We are at a critical point for improving many residents’ experience of social housing, and housing associations stand ready to deliver this change.

As I welcome the Bill, I hope the Minister will join me in welcoming the work that housing associations are already doing to drive up standards. Will he commit to continuing to engage closely with housing associations on what I believe to be vital reforms?

New Homes Commitment

Baroness Warwick of Undercliffe Excerpts

Tuesday 21st June 2022 Lords Chamber

[Lord Greenhalgh (Con)]

My noble friend is right that there has been a recent report by the CITB, but I point out that that shortfall is for the whole of the construction industry, not just housing. We have significant cross-government intervention and investment in skills, and the CITB made £110 million available in training grants to support 14,000 businesses. However, we continue to recognise—this was picked up by the Federation of Master Builders—that there are stresses and strains in terms of labour and materials. The Government are working hard to overcome these.

[Baroness Warwick of Undercliffe (Lab)]

My Lords, I declare an interest as chair of the National Housing Federation, which estimates that we need 90,000 social homes a year in England. Can the Minister tell us how the Government will ensure that their reforms in the planning system contained in the Levelling-up and Regeneration Bill will help deliver that much-needed social housing?

[Lord Greenhalgh (Con)]

My Lords, there is a real commitment to build more social housing, including more affordable housing. As the noble Baroness knows, the programme is for some £11.5 billion, with a target of double the number of social rented homes in this particular grant period than the previous one. The Levelling-up and Regeneration Bill recognises that, in order to get the housing, we need the infrastructure in place and must ensure that neighbourhoods have mixed communities at their heart. That is what the Bill is planning to do.

Building Safety Bill

Baroness Warwick of Undercliffe Excerpts

2nd reading
Wednesday 2nd February 2022 Lords Chamber

[Baroness Warwick of Undercliffe (Lab)]

My Lords, I am pleased to join others in welcoming the Building Safety Bill to the upper House and I congratulate the Minister on its introduction. The tragedy of the Grenfell fire four years ago exposed huge concerns about building safety in relation to both fire safety and building standards more generally. The Bill is a hugely important piece of legislation in our efforts to ensure that a tragedy like the fire at Grenfell Tower can never happen again.

Housing associations across the country have been working since June 2017 on assessing and remediating building safety risks in thousands of blocks. As chair of the National Housing Federation, the representative body of housing associations in England—I declare that interest—I have come to understand and appreciate the depth and breadth of the crisis.

It is the priority of the sector to ensure that safety concerns can be identified and addressed as quickly as possible to help residents feel safe in their homes. So many of us will remember from the passage of the Fire Safety Act that progress towards ending this crisis has been delayed and prolonged by seemingly intractable funding challenges, not least for innocent leaseholders facing huge bills.

That is why I very much welcome the announcement that the Secretary of State made in the other place on 10 January that the Government will protect leaseholders from the costs and make developers, contractors and manufacturers pay to fix the building safety issues that they caused. The Government are right to make those who profited from unsafe building practices pay. This important step will enable us to start the process of charting a course out of the crisis.

As I have mentioned many times in this House, housing associations are not-for-profit organisations providing affordable homes for those on the lowest incomes. To cover the costs of remediation on buildings where social renters live, housing associations are already expecting to spend in excess of £6 billion on building safety works. As a consequence, housing associations are now less able to improve their current homes or build new ones.

The National Housing Federation’s 2021 survey found that 12,900 homes, more than 10% of affordable new homes to be built over the next five years, have already had to be cut to prioritise spending on building safety. I welcome confirmation from the Secretary of State that leaseholders of buildings owned by social housing providers will have access to the new funding to avoid these costs spiralling further. However, like others, I would welcome clarity from the Minister on the Government’s approach to non-cladding costs, and whether funding recouped from industry will be allocated for this purpose.

I know that the housing association sector is committed to working closely with the Government to find a fair and sustainable solution to our housing prices that balances both making buildings safe and enabling new homes to be built. I was delighted to hear the Secretary of State refer to building social housing and improving existing homes as a core mission of his department. However, I was worried that correspondence from the Treasury made public at the start of the year suggests existing departmental budgets would need to be used, should it not be possible to recoup money from industry. That is why I hope that the Minister will assure us today that the affordable homes programme will be protected to avoid any further reductions in the delivery of much-needed affordable housing.

I also want to support the Government’s evidence-based approach to assessing and managing risk in buildings. It is right that, where safety issues present an unacceptable level of risk, they are fixed with urgency; it is also right that, if risks can be eliminated and effectively minimised without vast building works, these options should be explored and, where suitable, implemented. I welcome the launch of PAS 9980 to aid this transition. We are in the early stages of implementation, and it is not yet clear how it would truly impact on how mid-rise buildings are treated and, in truth, what impact it will have on the amount and costs of work needed on buildings between 11 and 18 metres. I understand that the Government have already undertaken a survey of such buildings to ascertain a view on this; I also believe that close monitoring of the implementation of PAS 9980 could greatly help the Government, building owners, tenderers and lenders in understanding the evolving situation. Will the Minister commit to publishing the findings of the Government’s recent survey, and what plans does he have to monitor the approach to proportionality?

Finally, I welcome the part of the Bill that introduces a new homes ombudsman scheme—and I declare an interest as the chair of the Property Ombudsman. I wholeheartedly agree with the points made by the noble Lord, Lord Best—indeed, I would like to see the ombudsman report directly to Parliament. I just want to emphasise that, at a time when public and particularly home-buyer confidence is so low, the need for transparency and absolute real and perceived independence is crucial if the Government are to reassure homeowners that the ombudsman has teeth. Only that way will they have the trust and confidence in the redress or reassurance that they receive from the ombudsman. This is especially true when property developers do not comply with a decision; there needs to be a clear and transparent mechanism for enforcing decisions, in the worst case removing businesses from membership, and communicating this to existing and potential home-buyers. That enforcement should apply not just to financial redress but to implementation of recommendations to drive better outcomes for all.

This urgently needed Building Safety Bill has the potential to provide safety and security to those whose homes have wrongfully been built with safety risks. I hope that it will create a future in which the horrors of an event like Grenfell are no longer possible. The housing association sector wants to work with government to ensure that the Bill is as effective as possible at delivering that ambition.