Housing Supply and Homelessness

Baroness Warwick of Undercliffe Excerpts

Thursday 5th December 2024 Lords Chamber

Moved by

[Baroness Warwick of Undercliffe]

That this House takes note of the need to increase housing supply and tackle homelessness.

[Baroness Warwick of Undercliffe (Lab)]

My Lords, I welcome this opportunity to highlight again the current housing crisis and the rise in homelessness, and I am grateful to all noble Lords who have chosen to speak in this debate.

The facts are truly shocking. They are reflected in innumerable reports over the last few years. Charities such as Shelter and Crisis have been sounding warnings for years. Sector bodies such as the National Housing Federation have lobbied hard for an increased supply of homes that can be afforded and are of good quality. The Church of England has produced two important reports re-emphasising the crisis we face, and I am glad that the most reverend Primate the Archbishop of Canterbury has chosen this debate to make his valedictory speech to the House. He instigated the two reports and has shown a strong commitment to ending homelessness. I know that the House will appreciate his many valuable contributions over the years and looks forward to his valedictory address.

It must be a crisis when millions of people and families in this country cannot find or afford a decent home: a home where they feel secure, where they can thrive and where their children can learn. The Labour manifesto was clear that the housing crisis was a national priority and committed to delivering 1.5 million homes over the Parliament. Beneath that headline commitment is an ambition to provide the biggest increase to social and affordable housing for a generation. As I hope to outline today, a major new programme of social housebuilding is more critical than ever, and the role that supported housing can play as a part of that is urgently needed if we are to make any progress in dealing with homelessness.

In the Autumn Budget, the Chancellor promised to deliver not only a £500 million boost to the affordable homes programme but flexibilities to councils when using right-to-buy receipts and consultation on a new social housing rent settlement. On homelessness, additional funds of £233 million were announced—a positive initial step, but these are only foundations on which to build. Demand will still exceed supply even if that target is fully met. Housing has an impact on health policy, education policy, immigration, justice, transport and employment; just about every arm of government has a role to play in addressing this crisis. It is a huge challenge for the Government and for the Minister. I urge the need for a long-term strategy, which will depend on achieving not only cross-departmental support but some degree of cross-party support for long-term policies that can be sustained beyond the lifetime of one Parliament or one Government. I hope the party opposite will agree to play its part in achieving this.

The sheer scale is daunting. Over 8 million people in England cannot access the housing they need, with a large portion requiring social housing. National Housing Federation research into overcrowding found that more than 310,000 children in England are forced to share beds with other family members. One in six children is living in cramped conditions—that is around 2 million children.

An increase in the number of people facing homelessness has been compounded by the cost of living crisis. The latest official statistics show a 10% increase in the number of households who contacted their local authorities due to being at risk of homelessness. A record number of families are homeless and living in inadequate temporary accommodation, which is disrupting children’s education, undermining their well-being and piling enormous pressure on families. Temporary accommodation, predominantly delivered by the private sector, is often of poor quality and unsuitable for families, who report high levels of stress, anxiety and depression.

Temporary accommodation was created as a short-term solution, but the rise in homelessness and lack of suitable social housing means that households can spend years in it, even where social housing is available. The increased need has meant that local authorities have to rely on B&Bs and hotels. This has become a huge financial burden on local authorities, which between April 2023 and March 2024 spent a total of £2.3 billion on temporary accommodation. The number of rough sleepers has also continued to rise to record levels. In London alone, the Combined Homelessness and Information Network has reported a 19% increase in rough sleepers compared with last year.

The last Labour Government reduced rough sleeping by more than two-thirds in their first term by taking a cross-departmental approach. Can my noble friend the Minister update the House on the work of the Deputy Prime Minister’s ministerial task force to end homelessness? Will the Minister commit the Government to working with mayors and local government leaders to achieve this?

The link between homelessness and health is well known. Unmet mental health needs and lack of treatment for substance misuse are known factors that can trap people in the cycle of homelessness. Health is more than just the absence of disease; it is about people’s overall well-being. Health starts at home, and the housing crisis has had an awful effect on people’s health, with long-term consequences. It is increasing the financial burden on the NHS and costing £1.4 billion per year to treat people affected by poor housing.

Housing that is properly adapted to suit the needs of residents and having the right support in place are key to keeping people out of hospital and living independently. The tragic death of Awaab Ishak reminds us that poor-quality homes can also contribute to avoidable deaths and increase the risk of developing asthma and other respiratory conditions. We must commit to ensuring that nothing like this ever happens again.

Overcrowding can put a real strain on families. Reduced privacy and lack of space to study or play have been linked to developmental issues and poor mental health in children. Appropriate housing with support where needed can help relieve pressures on the NHS by enabling timely discharge from hospital, preventing readmissions and helping people access health services early on. Will the Minister ensure that the long-term housing policy is integrated into the ambitions set out in the NHS 10-year plan, to ensure that it looks beyond just the number of new homes and addresses housing conditions and types, affordability and support?

I referred to supported housing. Homelessness schemes are essential to ensuring that people get the support they need to break the cycle of homelessness. But the sector is facing a truly dire financial situation. Cuts to funding and the financial stress of supplying temporary accommodation have forced local authorities to make some very difficult decisions. This has included decommissioning vital supported housing and homelessness services—a lifeline for vulnerable groups at risk of rough sleeping. Despite the increasing need for supported housing, one in three supported housing providers has had to close services in the past year, and 60% expect to close schemes in the future due to unviability. This will lead to an increase in need for temporary accommodation and residential care, and so increase even more the financial pressures on local authorities.

The NAO’s July report argued that:

“Dealing with homelessness is creating unsustainable financial pressure for some local authorities”.


Funding constraints are undermining local authorities’ capacity to prevent homelessness and invest in good-quality temporary accommodation and other forms of housing. I hope the Government are under no illusions about the scale of the pressure that councils are facing after years of underfunding and increasing demand for services. It would be helpful if the Minister could confirm the steps the Government are taking to reset the relationship with local government.

There are some things that can be done quickly. The empty homes round table on 19 November highlighted the urgency of tackling long-term empty homes as part of broader efforts to alleviate housing shortages, reduce homelessness and improve housing sustainability. It focused on the need to improve funding flexibility to enable local authorities to acquire and refurbish empty homes, simplifying enforcement measures such as empty dwelling management orders, and the importance of linking empty homes initiatives to wider national housing, homelessness and retrofitting strategies.

Although the NAO report I referred to was based on the legacy of the previous Government, it presents a further challenge for the Government now as they develop their own strategy for dealing with that legacy of homelessness and insufficient housing supply. Local authorities, along with housing associations, are key deliverers of social and supported accommodation. The Government’s commitment to a long-term strategy is essential if they are to ensure a stable and sustainable building programme. The NAO also warned that funding had remained fragmented and generally short term, and it is worth noting that the constant changes in Housing Minister over the last 10 years cannot have done much to encourage longer-term thinking. I hope this Government will learn that lesson.

I turn briefly to the private sector, which has a significant role to play in housebuilding but has severe limitations. The private market has rarely delivered more than 150,000 homes a year, and in many years fewer than that. The only post-war period where we have built more than 300,000 homes a year was when we were building over 100,000 council homes as part of the mix. Importantly, this was founded on a firm cross-party commitment to the value of social housing. The speculative private housebuilder model means market homes will not build out quickly enough to deliver 1.5 million homes this Parliament. Boosting social and affordable housing will be vital to the new Government’s plans for housing-led growth and delivery. So I hope the Minister will agree that we need a big uptick in social housebuilding, as well as moving ahead with planning reform that will open up sites over time.

I will comment briefly on planning. In recent years, the total number of homes that were granted planning permission fell sharply, from 302,000 in 2021-22 to 236,000 in 2022-23. Can the Minister tell us what the Government are doing to reform the planning system in order to deliver the quality of homes and infrastructure the country is crying out for? I hope these issues will be raised in more detail by other speakers.

Let me conclude. We know that building social homes speeds up and stabilises overall housebuilding, as well as increasing the resilience and productivity of the construction sector and boosting growth. The National Housing Federation and Shelter commissioned research which showed that building 90,000 social rented homes a year would add £51.2 billion to the economy. Social housing is not a debt or financial burden on the Exchequer, it is a precious national asset that we need to invest in, protect and maintain. Will the Minister commit to reinforcing this vital message with the Treasury in the forthcoming spending review?

Increasing the supply of homes alone will not solve the housing and homelessness crisis. We need investment in our existing homes to improve quality. We need to secure long-term, ring-fenced funding to protect supported housing and homelessness schemes.

We should consider the scale of the opportunity as well as the challenge. Every year, social landlords save their tenants £18 billion compared with equivalent rents in the private rented sector, meaning lower-income families have more income after housing costs to spend on essentials. This is a contribution that has been overlooked by successive Governments.

Looking ahead to the spring spending review and the Government’s long-term housing strategy, will the Minister urge her Secretary of State and colleagues at the Treasury to ring-fence funding for housing-related support allocated to local authorities? It is also vital we provide more flexible revenue and grant funding, so that supported housing can deliver and develop according to local needs.

Fourteen years of austerity and piecemeal solutions have had an appalling impact on housing, but solutions remain within reach. Will the Minister commit to working across all government departments to cover all aspects of housing and ensure that this feeds into their long-term strategic planning?

--- Later in debate ---

[Baroness Warwick of Undercliffe (Lab)]

My Lords, I thank the Minister for that very comprehensive and indeed very encouraging response. I will not attempt to summarise the debate—indeed, my noble friend did it rather splendidly. But I do not think the Government can be in any doubt that there is support on all sides of this House for speedy action, as well as for a long-term strategy. I simply join in the tribute that she made to the most reverend Primate the Archbishop of Canterbury for the work he has done, and I think that was reflected in all the comments made around the House.

I must say that I was very impressed: I almost wondered whether I should come up with a quote. But, having been given them from as wide a range as Aeneas, Nelson Mandela and Eliza Doolittle, I felt that would be inappropriate.

We have had a passionate and very committed debate today, with some extraordinary personal contributions. They root us in the reality of people’s lives and what we are really trying to deliver here, which is homes and communities. I thank everybody who has made a contribution in this debate and I beg to move.

Motion agreed.

Cladding Remediation

Baroness Warwick of Undercliffe Excerpts

Monday 25th November 2024 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

My Lords, I am very glad to say that we now have a Government, and a Deputy Prime Minister who is responsible for this area, who take this incredibly seriously. We will soon be publishing a remediation acceleration plan, which outlines the specific measures we are going to take to increase the pace of remediation, to find all the at-risk buildings quicker and to ensure that the residents at the heart of this terrible issue are supported in the process. There is no longer any excuse for those responsible failing to fix dangerous cladding on their buildings. The message is clear: use the routes we have created to get buildings fixed, and get on with the job.

The Deputy Prime Minister recently held a national roundtable with mayors, regulators and national building safety bodies to press home the urgency of this work, and most developers have now signed up now to the plan that she set out. But please be assured that we will not hesitate to use enforcement measures, and we have provided local authorities with funding to undertake the enforcement necessary.

[Baroness Warwick of Undercliffe (Lab)]

My Lords, there are still limits to access to funding for social landlords, despite the welcome measures the Government have taken already on funding, meaning that those with the lowest incomes still have to pay for unsafe buildings to be fixed, when private developers profited from constructing them. Will my noble friend respond to End our Cladding Scandal’s call for housing associations to have the same access to the building safety fund and the cladding safety scheme as private building owners?

Social Housebuilding

Baroness Warwick of Undercliffe Excerpts

Monday 21st October 2024 Lords Chamber

Asked by

[Baroness Warwick of Undercliffe]

To ask His Majesty’s Government what plans they have to build capacity in councils and housing associations within the next three months to increase the building of new social homes.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)]

My Lords, I thank my noble friend for her Question and for all the work she has done to support the social housing sector. The Government are committed to the biggest growth in social and affordable housing for a generation, but we recognise that councils and housing associations need support to build their capacity. In July, we announced steps to help with delivery, including flexibilities in the current affordable homes programme and for councils to use right-to-buy receipts. We will set out plans in the Budget at the end of this month to give councils and housing associations the rent stability they need to borrow and invest in both new and existing homes.

[Baroness Warwick of Undercliffe (Lab)]

My Lords, I thank my noble friend the Minister for her very helpful and hopeful reply. Recent statistics from the ministry show that, in the year 2023-24, 320,000 households faced or experienced homelessness—an 8% rise on the previous year and the highest on record. Recent research by the NHF, Savills and the HBF warned that, without much more social housing, the Government are set to miss their target of 1.5 million homes. A significant uptick in social housing is vital to plug that gap. Will my noble friend explore the options of a one-year extension to the affordable housing programme in the upcoming October Budget? Extension of the current AHP by one year would be an important first step to increase delivery and capacity in the social housing sector.

[Baroness Taylor of Stevenage (Lab)]

At the risk of repeating my noble friend Lord Livermore, the content of the Budget is of course a matter for the Chancellor of the Exchequer. However, the package we announced in July included flexibility in the current affordable homes programme to help with delivery and extended the 2021-26 affordable homes programme. We have been clear that we will bring forward details of future government investment in social and affordable housing at the spending review. We know how important it is to enable providers to plan for the future as they help to deliver the biggest increase in affordable housing in a generation.

Social Care Strategy

Baroness Warwick of Undercliffe Excerpts

Thursday 10th October 2024 Lords Chamber

[Baroness Warwick of Undercliffe (Lab)]

My Lords, the noble Baroness, Lady Tyler, helped us all with her comprehensive and thoughtful introduction to this debate, and with the urgency she injected into it. I thank her for that. I also thank my noble friend Lady Keeley for her marvellous maiden speech.

The Library briefing for this debate states that

“the social care sector in England is facing workforce, resource and funding pressures”.

It echoes similar comments from the Public Accounts Committee. These bald statements can scarcely convey the awful state of our social care system, which the wider public woke up to during the pandemic and which the recent report from the noble Lord, Lord Darzi, described even more trenchantly as “dire”.

At the same time, the social care sector is trying to handle unprecedented demand and is largely reliant on millions of people providing unpaid care. The service is close to cracking apart. There is universal acceptance that this is placing huge strains on people and their families, as we have heard today, as well as the health service. Yet the political will to change it has just not been there. Much has been promised but almost nothing has changed.

Along with the noble Baroness, Lady Fraser of Craigmaddie, I was a member of the Adult Social Care Committee, which reported to this House 18 months ago. We highlighted the need for support for those who cannot support themselves, which would enable them to live fruitful, active and valuable lives—what one witness described to us as a “gloriously ordinary life”. We used that as our title, to encapsulate what we believed public policy could achieve if the political will were there.

Yet our report concluded, largely based on the voices of lived experience, that many disabled adults and older people continue to be denied choice and control over their lives, largely due to a lack of resources. The cruel reality for local authorities, which provide most adult care, and for the people who rely on these services, was a 29% real-terms reduction in spending power and an estimated 12% drop in spending per person on adult social care services in the previous 10 years. That is the challenge facing the Government now.

Our new Government clearly intend to make this a priority, and they will not be short of advice. Innumerable reports have attempted to address, for example, the highly sensitive question of who pays for the unsustainable costs of social care. Unfortunately, the previous Government refused to grasp this nettle. The new Government have announced their intention to create a national care service and to improve NHS and social care integration as part of a 10-year plan. Although I understand why they are thinking of a 10-year programme—I suspect it will take at least that time to put right the huge imbalance between the funding of the health service and the social care service—the Government have the opportunity to make a real difference now, in the course of this Parliament, and to offer some hope to the millions who rely on care now. They need to show they are determined to, at last, make our social care service visible and fairer—a kinder system that enables people to live positive and valuable lives. The Select Committee report offers some signposts for action that I hope the Government will consider, including establishing a commissioner for care and support to show how adult social care, properly delivered, can have a transformational power in people’s lives.

Finally, I echo the words of the noble Baroness, Lady Tyler, on unpaid carers, as well as the wise words of my noble friend Lady Pitkeathley, our marvellous champion for carers in this House. I urge the Government to develop a system that is not based on the assumption that families will automatically provide care without any financial support because there is no other option. I hope my noble friend the Minister will agree that unpaid carers need better financial compensation if their caring duties prevent them working, or help with juggling work and care if they can remain employed. That would be a great start.

Housing: Modern Methods of Construction

Baroness Warwick of Undercliffe Excerpts

Thursday 5th September 2024 Lords Chamber

[Baroness Warwick of Undercliffe (Lab)]

My Lords, the housing sector is struggling. It is universally acknowledged that the country does not have enough affordable homes. This Government have committed to solve the housing crisis for good, but how best to do that where previous Governments have failed? The shortage of labour supply means that traditional building methods cannot deliver housing targets, and traditional private builders have shown that they cannot meet the need.

There is a consensus that MMC must be a major part of the solution, but delivering MMC has been challenging. Some companies have gone bust. Against a backdrop of insolvencies across the construction sector, the perception of MMC has suffered disproportionately. There has been a lack of clear strategy surrounding MMC. A long-term housing plan could provide the certainty to invest in MMC and deliver the Government’s ambitious housing targets.

Social housing must clearly play a central role. Housing associations are planning to build, via MMC, about 10% of the new build currently forecast by the regulator. With the right mix of low-cost incentives and support, that proportion could double.

The recent National Housing Federation survey found supplier insolvency to be the biggest risk to uptake. The Government underwriting risk contracts would have an immediate effect on MMC delivery.

The House of Lords Built Environment Committee’s inquiry into MMC urged the Government to step back and set achievable goals and develop a coherent strategy. The noble Lord, Lord Carrington, gave a thorough and fair picture of what we found. The previous Government committed to a £10 million-backed MMC task force, but it never met. Will the Minister commit the new Government to a central body dedicated to research, training and promotion that will allow MMC to flourish. Will the newly established New Towns Taskforce embed MMC in its delivery plans? At the next spending review, will my noble friend press for a long-term plan for new and existing social homes, including specific policy steps to increase the use of MMC in the social housing sector?

Renters (Reform) Bill

Baroness Warwick of Undercliffe Excerpts

2nd reading
Wednesday 15th May 2024 Lords Chamber

[Baroness Warwick of Undercliffe (Lab)]

My Lords, I declare my interest as chair of the Property Ombudsman. I warmly welcome the Bill. I am sure the Minister is well aware of the large number of organisations from which we have all had briefings. The Bill has taken a long time to get here, and expectations are riding high.

That is not surprising. Since 2001, the number of families forced to rent privately has doubled. High housing costs both cause and worsen poverty. The number of family homes available to social rent has reduced dramatically. For households on low incomes, this has significantly worsened living standards. The Bill needs to be seen in that context. We must not miss the opportunity to tackle long-standing issues of unfair eviction, rent increases and access to dispute resolution.

A number of issues will be raised in this debate from organisations such as Shelter, Crisis, Marie Curie and others, which I hope to be able to support in Committee. Today I will say a few words about Section 21 —in effect, the centrepiece of this legislation. I will then look briefly at some points that affect social housing providers and the property portal, the front door that will be crucial to enabling enforcement, then focus my main attention on the new PRS landlord ombudsman.

There is now some real doubt about when Section 21 evictions will actually be abolished. This part of the Bill has near-universal support, and tenants and landlords need certainty. The Government have said that it would be wrong to introduce it before the courts are ready, but have not defined what ready means or how we—or they—will know. It is five years since the Government made this commitment, yet there is still no progress. I hope the Minister will take the opportunity to give the House, as well as landlords and tenants, the certainty they need, by providing a plan for court reform and a timetable for when the abolition will come into effect.

The Bill largely concentrates on the private rented sector, but it will also have an impact on social housing providers, particularly where they use assured tenancies. The Government responded to some of these points on Commons Report and introduced amendments, but these themselves are likely to have unintended consequences, which I hope the Minister will be ready to consider. I refer to the new rent-to-buy ground 1B, introduced in the Commons as Amendment 158, and ground 6. The noble Baroness, Lady Pinnock, has given the House the details of these and I will not repeat them, but this has been raised by the National Housing Federation and I am sure it would welcome a meeting with the Minister to discuss the technical detail.

Next, I would like to mention the new portal. The Government have recognised the need for local authorities to have information about PRS properties in their area, for landlords to be clear about their responsibilities, and for tenants to know where to go for help if their landlord fails to put right a problem. The TDS Charitable Foundation’s survey work raises serious concerns about the ability of tenants to enforce the new rights that the Bill will give them. It is developing a new “My Housing Issue” gateway or portal, to which the noble Lord, Lord Best, referred, which will act as a signposting service. I understand that it will identify for tenants the correct route to solve their problems, encourage an early resolution of disputes and provide relevant information about housing rights and options. I certainly encourage the Minister to look at this in relation to the new portal; it may be very helpful.

I now turn to my main concern: the way the new PRS ombudsman will be selected. The new ombudsman will play a vital role in delivering the Government’s objectives to improve experience in the sector for tenants and landlords alike. I declared my interest as chair of the board with responsibility for the Property Ombudsman. TPO deals with complaints and requests for assistance from private sector tenants of the 39,000 property agents who subscribe to this service. The new ombudsman will provide that service for PRS tenants whose landlords do not use an agent. This has been a huge gap in redress, as my ombudsman knows all too well from the thousands of requests for help that we have to refer elsewhere or to the courts.

We should not underestimate the scale of the new regulatory role proposed. The latest data from HMRC states that there are almost 2.4 million incorporated private landlords in England, with almost half owning only one property. Moreover, local authorities, which are responsible for investigating poor housing standards and taking enforcement action against rogue landlords, are overstretched, as we know. At the same time, many tenants struggle to enforce their rights through the courts, not least because, as the Law Society notes, 44% of people in England and Wales do not have access to housing legal aid providers in their local authority area.

The scale of, and challenges for, an ombudsman for this part of the private rented sector will be completely different from those presented, for example, in the social housing sector. Given the size of the task, it seems right that the Government have said they have yet to decide how the new position will be filled and supported. Clearly, this requires an open competition among the existing bodies in this field, to determine which might provide the best service.

However, the Minister made clear today that their preference is for the Housing Ombudsman, which covers the social rented sector, to have its remit extended to cover private sector landlords. I find that quite confusing because, although the decision about who should operate the service looks like a foregone conclusion, the Government have been at great pains to explain that no decisions have yet been made about whom to appoint to run the service. Indeed, the Housing Ombudsman has indicated that he is undertaking preparatory work, funded by the Government, to investigate how the PRS ombudsman could work and how it should be funded.

In a Written Question I put to the Minister some weeks ago, asking for the extent of the support provided to the Housing Ombudsman and the terms under which it was provided, the Government declined to provide that information. I can tell her that the gossip in the sector is that it is about half a million pounds. That does not bode very well for fair, open and transparent processes. Given what the Minister said about the Government’s preferred option, has she considered that TPO has uniquely detailed knowledge and experience in the private rented sector and is certainly well placed to be considered to deal with complaints for the landlord part of the sector?

This is my main point: in making important appointments for this role, it is imperative that the Government follow a clear and transparent procurement exercise, not least to ensure the best value for the taxpayer. Given that, can the Minister confirm that the Government will publish clear criteria setting out how they expect the new PRS ombudsman to operate and ensure that they fully consider all potential providers of the service? I reiterate that I broadly welcome the Bill as a chance to empower tenants to call out bad practice in the private rented sector, while supporting the vast majority of private landlords who do the right thing.

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[Baroness Swinburne (Con)]

I thank noble Lords.

Some noble Lords were concerned that the Bill restricts landlords’ ability to charge a market rent. I will be very clear: this Government do not believe in rent controls, unlike the noble Baroness, Lady Jones. Nothing in this Bill prevents landlords increasing rents to the market rate each year or dictates what rent they can charge at the start of a tenancy. Tenants can appeal above-market-rate increases to the First-tier Tribunal, which will make an objective assessment and determine whether to raise, or indeed lower, the proposed rent. The noble Lord, Lord Marlesford, referred to the First-tier Tribunal—I think he wanted it to go. We are working closely with the Ministry of Justice and the judiciary to assess the impact on the First-tier Tribunal of this new Bill. We anticipate that the reforms will lead to an increase in cases, but we will ensure that the tribunal has the capacity to deal with these cases.

Regarding overall supply, noble Lords asked what measures in the Bill will mean for supply in the private rental sector. I will try to reassure noble Lords—if not today, maybe as we go through the Bill—including the noble Lords, Lord Frost and Lord Carrington, and the noble and learned Lord, Lord Etherton, that there is no evidence to suggest that a fairer private rental sector for tenants and landlords will lead to a reduction in supply. The statistics I have from the department suggest that the sector doubled in size from 2004, peaking in 2016, and has remained roughly stable since then; we will continue to monitor the impacts. New costs to landlords are expected to amount to a tiny fraction of average annual rents, at approximately £10 per landlord in England. We are by no means complacent and recognise the vital role that good landlords play in providing homes for millions of people across the country. That is why the Bill requires the department to provide an annual update to Parliament on the state of the private rented sector, to include stock, size and location of properties.

With regards to social housing supply, noble Lords have heard me talk at this Dispatch Box, on a number of occasions, about the affordable homes programme of £11.5 billion. I will not rehearse those arguments today in the interests of time, but they underpin the supply part of the equation. Since 2010, there have been an additional 482,000 affordable homes for rent, of which 172,600 are for social rent.

On retired clergy, the right reverend Prelate the Bishop of Chelmsford raised concerns that the Church of England Pensions Board will no longer be able to evict existing tenants to house retired clergy. The way this has been achieved until now is through the use of Section 21, which we are abolishing. Ground 5 allows landlords to evict tenants from properties which are usually held to allow ministers of religion to perform their duties when needed again for that purpose. She is therefore correct that the ground will not apply in situations where they wish to house retired clergy. We have carefully considered the needs of tenants and religious organisations when reviewing the grounds for possession, and we believe that the ground balances the unique needs of the sector—ensuring that religious ministers can occupy properties where needed to carry out their duties—with the rights of existing tenants.

I will write to the noble Baronesses, Lady Pinnock and Lady Warwick, about the ground 1B impact on social landlords and how we will select the administrator for the PRS ombudsman. I bow to the experience of ombudsmen of the noble Baroness, Lady Warwick, which is much greater than mine, but I can tell her that the Bill allows for government either to select a scheme through an open competition or to appoint a provider to deliver a designated scheme. To reiterate, we have not made a final decision on what is happening, and we are not ruling out the possibility of delivering this through alternative provision. Our priority is choosing a provider that offers a high-quality, value-for-money service. I will seek the clarification that she has asked for and will revert with more detail on the process being used as discussions continue on the Bill.

On the cost of the ombudsman, which the noble Lord, Lord Marlesford, raised, it is right that the landlords pay for this scheme. It is in line with common practice for funding other redress schemes, including for social landlords, who pay some £5.75 per unit for membership of the Housing Ombudsman scheme. We will ensure that the fee for private rental is proportionate and good value.

On portal offences, local authorities will have a duty to enforce where landlords fail to comply with their portal obligations. Tenants who become aware that a landlord is, for example, not registered on the portal or has provided inaccurate information can contact their local authority so that they can take the appropriate enforcement action.

I reassure the noble Lord, Lord Truscott, that we recognise the importance of having a healthy supply of private rented homes at affordable prices in all parts of the country, which is why we are taking decisive steps to stop short-term lets undermining the supply of long-term homes for local people. This includes abolishing the furnished holiday lettings tax regime, introducing a national mandatory register of short-term lets, and introducing a new planning use class for short-term lets.

On the suggestion by the noble Lord, Lord Adonis, that we should introduce a specialist housing court, we do not think that this is the best way to improve the court process for possession. This view is shared by the judiciary, which responded to our call for evidence. A new housing court would not address the concerns raised by landlords, such as the timeliness and complexity of the processes. We are committed to reforming the court system instead. Indeed, the majority of tenancies end without ever going to court. For those that do, where court reform is necessary, we will make sure that the system is working. The new system will have great new training for the analogue system to do the immediate new contracts, followed by digitisation. I am a lot more optimistic that new, large digitisation projects can now be delivered on time, and I am confident that we will be able to scope and deliver this as quickly as needed.

If it is okay with the House, I will continue, as there is not much left. On the portal duplicating the work of selective licensing, unlike the property portal, selective licensing schemes aim to target specific local issues by enabling more intensive, proactive enforcement strategies. The two are therefore complementary and do not prevent each other from working.

The question from the noble and learned Lord, Lord Etherton, was very detailed and, I am sure, very precise. I will write to him on it once my department’s legal experts have had time to consider his points—otherwise, I am in danger of stepping into waters that I cannot.

With regard to the comments on guarantors, we recognise that some tenants have difficulties in meeting such requirements. The use of guarantors and upfront rent can give landlords confidence to rent to individuals they might otherwise not choose to, but we will continue to carefully monitor both practices, to ensure that they are not having an adverse effect on the market. We have already committed to limiting upfront rent through the Tenant Fees Act if necessary.

With regard to the death of a tenant, we are extending the period for ground 7 to be used. The Government are aware that tenants who have been living in a property for a while may reasonably believe that they have a right to remain living there, which is why we have introduced an extension from 12 to 24 months to help resolve cases where disputes might arise, particularly for grieving tenants.

With regard to legal aid, which was mentioned by the noble Baronesses, Lady Thornhill and Lady Lister, the Ministry of Justice is investing an additional £10 million a year in housing legal aid through the non-means-tested Housing Loss Prevention Advice Service—HLPAS—to give people the best chance of keeping their home when they fall into difficult financial times. Through this scheme, tenants can receive free, non-means-tested advice as soon as they receive written notice that their landlord is seeking possession of their home. The MoJ is funding a panel of specialist legal advisors to provide grant funding for the recruitment of trainee solicitors to support that endeavour. Free on-the-day legal help will continue to be available when a tenant is facing the loss of their home at a possession hearing in the county court.

It is true that private landlords must meet existing minimum efficiency standards—the MEES regulations—which are set at EPC E. Although we will not tighten that requirement, as we have in the social sector, we will work with landlords. We are currently investing some £6 billion this Parliament and a further £6 billion to 2028 on making buildings cleaner and warmer; this is in addition to the £5 billion that will be delivered through the energy company obligation, ECO4, and the Great British insulation scheme up until March 2026. Landlords can and should participate in these schemes to upgrade their properties.

In conclusion, I thank all noble Lords—

[Baroness Warwick of Undercliffe (Lab)]

My Lords, I do not wish to prolong this. In relation to the comments that the Minister made on ongoing discussions about the role of the landlord ombudsman, could she undertake to ensure that the following is taken into account? The Cabinet Office guidance makes clear the importance of avoiding

“multiple redress schemes within individual industry sectors”,

and goes on to note that this is best achieved

“by utilising existing Ombudsman schemes”.

I hope she will take that into account, or ensure that it is taken into account.

[Baroness Swinburne (Con)]

I will take that into account, but I also extend an invitation to the noble Baroness to meet my team to discuss this in more detail.

Affordable Housing: Supply

Baroness Warwick of Undercliffe Excerpts

Thursday 25th April 2024 Lords Chamber

[Baroness Warwick of Undercliffe (Lab)]

My Lords, I am grateful to my noble friend Lord Chandos for tabling this debate. I congratulate the noble Baroness, Lady Smith of Llanfaes, on a powerful and, if I may say so, very feisty speech. I was moved at the sheer amount of responsibility she has had to take on at so young an age, and I look forward very much to hearing more such contributions.

Two events this week highlighted the timeliness and importance of this debate. In the upper waiting-room above Central Lobby, there is an exhibition of photographs of families living in temporary accommodation in the Manchester area. A mum with three kids said, “After I was evicted … the first temporary accommodation was for two years. It is a long time. The school was three miles away. If I was late or the kids could not get there, it looked bad for school reports and stuff”. Another mum said, “When you look at other children, they are able to eat proper meals and things like that. My son has had infection after infection. Since we have moved after the hotels, I have been to A&E just under 15 times”.

The exhibition is well worth seeing. It was organised by the APPG on homelessness. In opening it, Dame Siobhain McDonagh MP urged the need for a long-term solution that crossed social divides and party-politics. That plea was echoed in the second of the two events I referred to, the launch of the Church of England’s report, Homes for All: A Vision for England’s Housing System, which was referred to by my noble friend and by the noble Lord, Lord Best. Echoing the conclusions of other reports, notably from the National Housing Federation and Shelter, the report identified that the housing crisis continues to escalate, perpetuated by a lack of policy stability, ambition and urgency across successive Governments, and a failure to connect the issues through a systematic and co-ordinated approach. The Minister and my noble friend Lady Taylor of Stevenage both spoke eloquently at the event.

It is clear that a change in approach is needed. There are currently over 8 million people in England who cannot access the housing they need. For 4.2 million of these—around 1.6 million households—social rented housing would be the most appropriate tenure to address that need. Our failure to deliver the homes we need is breaking down our communities. It is driving families and key workers into financial hardship, and away from work, schools and support networks.

Some groups of people are feeling this crisis even more acutely. Black, Asian and minority ethnic households, and disabled people, are more likely to experience homelessness or live in poor-quality, unsuitable or overcrowded homes. Women’s Aid points to the lack of affordable housing as a primary barrier to those escaping abuse.

Yet, despite our severe housing emergency, the supply of genuinely affordable housing is falling. Last year, 29,000 social homes were sold or demolished, and fewer than 7,000 were built. Many households are now forced to live in expensive, insecure and often poor-quality homes in the private rented sector.

Most damning of all is the impact of this crisis on children. A record number of children are homeless and are forced to live in inadequate temporary accommodation, including bed and breakfasts. This disrupts their education, affects their life chances and puts huge pressure on families, as the exhibition I referred to so graphically illustrates. Some 138,000 children are currently living in temporary accommodation, and this is estimated to rise to 310,000 by 2045 without government action. These figures are a stark illustration that a radical change in approach is urgently needed.

I hope the Minister will not respond to this debate simply by asserting the work that the Government are doing, a lot of it good, and the number of homes currently being built. Whatever that number, it simply is not enough. I urge the Minister to focus on the key question in her response: how do we increase supply?

For those at the sharp end of the housing crisis, we need to build 90,000 new social homes every year to keep up with demand. In 2010, the amount of grant funding available for new social housing was cut by 63%. The consequences of this decision have been dire. Does the Minister agree that we need a new, long-term and substantial grant programme that can be used more flexibly to deliver new social homes, regenerate and refurbish existing homes and acquire more existing homes where appropriate?

Does the Minister agree that we need bold planning reforms to deliver the highest possible level of affordable housing, incorporating new, large, mixed-tenure communities? My party recently announced proposals to allow grey-belt development, which includes 50% affordable housing. This is a welcome step in the right direction.

Does the Minister agree that government funding and fiscal rules need to be reviewed to incentivise long-term public investment in social housing? I must also ask the Minister to comment on the need to invest in a skilled workforce if this ambition is to be realised. Does she agree that the Government must ensure that there is resilience within the supply chain and workforce while unlocking innovation in the construction industry, which could include exploring new technology and supporting new methods of delivery?

There are huge economic benefits to be gained. We need to move away from the outdated idea that social housing is a drag on the public purse. In fact, it is a long-term driver of sustainable growth. Every £1 invested in social housing delivers at least double that of wider economic benefits. Recent research from the National Housing Federation and Shelter, carried out by Cebr, showed the positive economic impact of building social housing. These include savings on housing benefit, reduced homelessness, increased employment and improved healthcare.

I have said before in other debates that building social homes that meet local need can offer stability in people’s lives. This helps people to get and keep work, and reduces the long-term scarring effect that being homeless or in temporary housing can have on employment prospects. It also supports children’s education and the mental and physical health of families.

I support the Archbishop of Canterbury’s report in its call for an end to “short-termism” in housing policy and its advocacy for decent homes across England. As the report states, everyone should have a home that is comfortable and safe. Sadly, and to our shame, decades of piecemeal and short-term policy have left us with a failing housing system that is affecting our health and well-being and costing our country billions. It is also holding back our economy and making communities unsustainable.

The housing crisis is a complex problem. It will take long-term political commitment, investment and collaboration across government and with partners across the country. I echo the call from the noble Lord, Lord Best, reflected in the Church of England’s report, for a housing strategy committee, modelled on the Climate Change Committee or the Low Pay Commission, which will hold the Government to account.

Does the Minister agree that, to meet the scale of the challenge we face, there needs to be a comprehensive and policy-led long-term national plan, agreed in its fundamentals across political parties, with the Government in partnership with local authorities and the social housing sector? Perhaps then we can begin to solve this worsening housing crisis.

Property Agents: Regulation

Baroness Warwick of Undercliffe Excerpts

Thursday 18th April 2024 Lords Chamber

[Baroness Swinburne (Con)]

I understand the frustration. I believe that all of us in this House and in our wider communities would like to see more professional-quality work being done in this sector and that we all want to drive up service standards for buyers, sellers and renters—whoever they may be—interacting with the system. It is important that we get it right; measures are coming up in the leasehold and freehold Bill and certainly in the private renters Bill, both of which will be before this House over the next few weeks. Therefore, there are opportunities for us to put forward specific measures that we felt were a priority in the leaseholder space and the private rental space.

[Baroness Warwick of Undercliffe (Lab)]

My Lords, I declare an interest as chair of the Property Ombudsman. The ombudsman has been producing codes of practice for several decades, and that skill was utilised by the RoPA steering group, particularly the steering group chaired by my noble friend Lady Hayter. A new code was produced which has been received very positively. It stands ready to be implemented, and I urge His Majesty’s Government to give serious consideration to how it could be achieved in the absence of a regulator.

[Baroness Swinburne (Con)]

The Government welcome the work undertaken by the independent steering group chaired by the noble Baroness, Lady Hayter of Kentish Town, on the codes of practice for property agents. That is an important development towards making sure all consumers are treated fairly and all agents work to the same high standards. The Government have approved two codes for managing agents, which set out good practice and are to be taken into account in cases before courts or the tribunal. We will consider other codes as they are brought forward.

Social Housing: Right-to-buy Sales

Baroness Warwick of Undercliffe Excerpts

Thursday 18th April 2024 Lords Chamber

[Baroness Swinburne (Con)]

I thank my noble friend for that question. We have been monitoring this for some time. All measures to increase the rate of housebuilding for the provision of affordable homes are being considered, including the preferential borrowing rate for councils, and housebuilding from the Public Works Loan Board, which has been extended to June 2025. Indeed, that 100% temporary measure for the right-to-buy receipts for the last couple of years was to increase the capital buffer to allow the speeding up of housebuilding and acquisition in the sector. The abolition of the housing revenue asset borrowing cap also helps, alongside the £11.5 billion affordable homes programme. We believe that local authorities and housing associations are being supported to maximise delivery at pace, and we strongly urge them to utilise the flexibility to build these new homes.

[Baroness Warwick of Undercliffe (Lab)]

My Lords, whatever the data we are bandying around here, there is no doubt that right to buy and demolitions mean that we are losing social housing every year. As has already been said, large numbers of households are now forced to live in expensive and insecure homes in the private rented sector due to the lack of social homes. What plans do the Government have, recognising the point the noble Baroness is making, to further increase the supply of social housing to prevent right to buy eating into this crucial asset?

[Baroness Swinburne (Con)]

I return to the fact that the main programme we have is the £11.5 billion affordable homes programme, of which a large amount has been allocated for social and affordable housing. When we look at the numbers, the right to buy, and local authorities’ delivery through that mechanism, represents 14% of the overall affordable housing delivery—the highest recorded number of local authority completions in a decade. It is making progress, and the reality is that the rest of that budget is being spent in other ways and being delivered as we speak.

Private Rented Sector Ombudsman

Baroness Warwick of Undercliffe Excerpts

Thursday 18th January 2024 Lords Chamber

Asked by

[Baroness Warwick of Undercliffe]

To ask His Majesty’s Government what progress they have made in designing and tendering for the new Private Rented Sector Ombudsman Service.

[Baroness Warwick of Undercliffe (Lab)]

My Lords, in begging leave to ask the Question standing in my name on the Order Paper, I declare an interest as the chair of the Property Ombudsman for tenants and those in the PRS whose landlords use agents.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

The Renters (Reform) Bill allows the Government to select a scheme through open competition or to appoint a provider to deliver a designated scheme. In Commons Committee, we announced our preference to deliver through the Housing Ombudsman service, which provides social housing redress. However, no final decision has been made, and our priority is choosing a provider that offers the high-quality and value-for-money service we require.

[Baroness Warwick of Undercliffe (Lab)]

I thank the Minister for her reply. I very much support what the Government are doing to establish a landlord ombudsman for the private rented sector; it is long overdue. Given that the new ombudsman will cover the whole of the rental sector—the one for social landlords has been indicated as the preferred option—can the Minister confirm that the Government will consult existing ombudsmen in the sector on the rationalisation, and can she explain how they will fit into the new landscape? Can she confirm that the Government’s final decision in selecting an organisation to provide a unitary ombudsman service for the combined social and private rented sectors will follow the formal public procurement process? What will the timescale be?

[Baroness Scott of Bybrook (Con)]

The noble Baroness asked a number of questions. First, we have sought extensive procurement and legal advice on this, and we are confident that the approach we are taking is in line with procurement regulations. I can only reiterate that this work is still in its very early stages, and no decisions have been made. Of course, we will talk to stakeholders throughout the whole of the process. If the noble Baroness or any other noble Lord would like to meet me and my team, I am happy to do so as we go forward.

Secondly, the question on the interaction between schemes is very interesting. We envisage that, where a complaint covers both landlords and letting agents, the separate schemes will work together to triage the complaint effectively and, if necessary, have a joint investigation. Importantly, we want to make sure that, where it is not clear which scheme a tenant should complain to, there is no wrong access point. We will work together to make sure that the tenant gets the service that they require.