(1 year, 5 months ago)
Lords ChamberIt is in fact the turn of the Labour Benches.
My Lords, following on from the noble Lord, Lord Campbell-Savours, the recent proposal by the Labour Party to remove hope value would allow social landlords more easily to develop the affordable homes our country so badly needs. Fewer than 7,000 were built last year but we need 90,000 every year, so it is not surprising that these proposed reforms are supported by a wide range of organisations, including the National Housing Federation and Shelter. What assessment have the Government made of the impact of high land values on our ability to deliver new social housing?
The noble Baroness has been involved in some of the Committee sessions of the levelling-up Bill, and she will know that we are looking at hope value and land prices. The Government particularly recognise the need for homes for social rent. That is why social rent homes were brought into the scope of the affordable homes programme, for example, in 2018. As I say, the levelling-up White Paper committed to looking at ways to increase the supply of social rented homes.
(1 year, 6 months ago)
Lords ChamberMy Lords, I support my noble friend Lord Ravensdale’s Amendment 504GG, which is practical and puts some real drive into our town centres.
I want to quote a colleague of mine from the north-west of England about her town centre, the fragmentation that she feels is going on and the opportunity being missed. She said:
“When I look at the 7”
connecting levelling-up schemes,
“what I feel is missing is the coherent and comprehensive consideration of the Old Town as a ‘place’. One ‘place’. A place where people live and have their businesses, not just somewhere people stop by to solely pop into the new health and education hub for an X-ray, or the new Buddhist temple for meditation or the new youth and arts provision or the upgraded theatre to watch a play. What I fear may happen is some lovely new buildings going up in amongst some really run down streets, which will surely only be made to look even worse. I get that the money available isn’t an endless pot. I get that a number of the properties have private landlords, but what I didn’t get is the approach and ambition of aiming to elevate the place as a whole. Many of the shops are vacant and the Council must be taking empty business rates from the landlords. I wonder if there is a strategy to bring those landlords into the debate about”
reconnecting the town,
“so that the 7 schemes aren’t just 7 pieces of a bigger jigsaw where”
the real opportunity
“has been lost!”
As I say, this amendment puts real drive and economic practicality into our town centres. I work a lot across the north of England and see a lot of fragmentation. Individual little schemes will not make a difference. There need to be real practical drivers, and what my noble friend Lord Ravensdale is suggesting is possibly one of them.
My Lords, I speak in support of Amendment 491 in the name of my noble friend Lady Taylor of Stevenage. Currently, most government funding for affordable housing focuses on net additionality of new homes. This is much needed but it can lead to a loss of development potential and a lack of investment in the physical quality of existing communities. Without housing-specific regeneration funding streams, regeneration is virtually impossible to fund in lower-value areas, where there is little scope for cross subsidy from market scaling.
Last week, Homes England published its strategic plan, emphasising a renewed focus on regeneration. It was welcome to see this plan recognise the key role that housing associations should play in place-making, as well as the importance of sustainability in new communities. However, there is a lack of clarity about whether this would be accompanied by new regeneration funding or a flexibility around the use of AHP funds to deliver regeneration. This amendment, which also seeks clarity over the Government’s regeneration proposals, would be a step in the right direction. At present, there is a lack of strategic direction in the Government’s plans to deliver housing-led regeneration, yet regeneration is crucial if the Government are serious about delivering their economic and skills agenda while also helping to deliver quality and sustainable affordable homes across the country.
I hope noble Lords will bear with me because there was some confusion over the position of this group in the list. Some of us had an earlier list, where it appeared much later.
I have tabled Amendment 504GJH, about the state of schools and hospitals. At the heart of levelling up is the need to provide good-quality education to young people across the country and that means good-quality buildings in which children can go to school. Where schools are in disrepair and cannot be used appropriately, children are at a disadvantage, particularly, say, in secondary education with science blocks that are out of date so that children will not be able to do modern science experiments.
The quality of school buildings in this country is very important and a department report from December 2022 highlighted the critical level of disrepair in many of our school buildings across the country. This prompted me to lay this amendment to this part of the Bill. The annual report said that officials have raised the risk level of school buildings collapsing to “very likely” after an increase in serious structural issues being reported, especially in blocks built in the post-war years, 1945 to 1970.
The type of structure used has led to the quite rapid deterioration of those buildings. I said earlier that I was a school governor for a number of years. The school had a science block built in the early 1970s that was condemned for these very reasons, so I know how accurate this is.
If we are talking about levelling up and regeneration, at its heart should be public services, school buildings and the quality of the education delivered within them. It is school buildings that I am pointing to today. The report said that the risk level for school buildings had been escalated, as I said, from “critical” to “very likely”.
The difficulty is that, because so many school buildings were built in the 1950s, 1960s and 1970s with this sort of metal structure, there is a huge call on government funding. It is called a light frame system, I think; it is a steel structure anyway. Every one of us will have buildings like that where we live. I want this Bill to focus on doing something about school buildings and hospitals that we know about. The Government have committed to 40 new hospitals—five more have just been added—because they are falling down. That is not right. We are talking about regeneration and levelling up. Having school buildings and hospitals collapsing shows the level of investment that will be needed if we are genuinely going to try to level up across this country.
(1 year, 6 months ago)
Lords ChamberMy Lords, I should like to speak to Amendment 331 on behalf of my noble friend Lady Pinnock. It an extremely important amendment and I will be very interested to hear what the Minister says in reply. In that sense, this is, at this stage, a probing amendment. It would enable infrastructure levy-charging authorities to require a developer to pay their full IL liability, or infrastructure funded by IL associated with the development to be built before development may commence, and would enable developers to be required at the request of the authority to provide money for remedial work. Under current systems, of which across this Chamber there is huge amount of experience, there are constant delays in the delivery of infrastructure and remediation and failures to deliver the affordable housing needed in an area, and it takes ages to negotiate and renegotiate the terms of the community infrastructure levy or Section 106.
An amendment of this kind, which would require payment of the infrastructure levy up front, would speed up development because it would concentrate the minds of the developers and bring clarity to the contractual status of the infrastructure levy, and it would, in our view, have a positive impact on the development process. Of course, it would not be compulsory to charge it up front, but it would be possible to do so if a local planning authority felt that it was the right approach. That is the proposal in Amendment 331.
I have long felt that we spend far too much time trying to cope with negotiations where developers seek to make changes to the promises that they have made. I look forward to the Minister’s reply to see whether the Government think that there is some mileage in a proposal of this kind that would get payment made up front rather than later, however staged that process may be through a development being put on to the ground.
My Lords, I will speak to Amendment 335 in this group. Each amendment in this group deals with the impact of the proposed infrastructure levy on different aspects of social infrastructure. The levy is one of the most consequential aspect of the Bill, which proposes a new infrastructure levy largely to replace the current system for developer contributions. Developer contributions currently play a vital role in delivering affordable and social housing. Section 106 agreements alone accounted for 47.3% of all affordable homes in 2021-22, a figure that represents 12% of all new homes delivered annually. Section 106 is not a perfect process, but while there is clear scope to reform and improve the existing system for developer contributions, it is none the less responsible for a huge proportion of new affordable and social homes. As its proposed replacement, the infrastructure levy represents a radical shift in how this housing will be funded and delivered.
There are 4.2 million people currently in need of social housing in England. This means one in five children is living in an overcrowded, unaffordable or unsuitable home. Research published last week by the National Housing Federation found that more than 310,000 children in England are forced to share beds with other family members—I have already put down a Question on that issue. That means that one in every six children is being forced to live in cramped conditions because their family cannot access a suitable and affordable home. This equates to 2 million children from 746,000 families.
Against this backdrop of acute housing need, changes to the planning system must, at minimum, protect current levels of new affordable housing. It is with this principle in mind that I tabled four amendments to Schedule 11. Each of those amendments seeks to strengthen protections for affordable housing in this legislation and ensure that the infrastructure levy does not lead to a net loss of affordable housing. I am pleased to have received support for these amendments from the Labour and Liberal Democrat Front Benches and the right reverend Prelate the Bishop of Chelmsford.
I now turn to my amendment in this group. A key threat to the supply of affordable housing via the infra- structure levy is its potential to result in the diversion of developer contributions away from affordable housing and towards other unspecified forms of infrastructure unconnected to development. As long as there are clear affordable housing needs, it is essential that local authorities’ use of developer contributions for purposes other than affordable housing is strictly limited. My amendment seeks to prevent levy receipts being spent on unspecified items “other than infrastructure”. In its current form, the new infrastructure levy could lead to the diversion of developer contributions away from affordable housing. By contrast, a high proportion of developer contributions currently obtained via Section 106 agreements is spent on affordable housing. According to research commissioned by the Ministry of Housing, Communities and Local Government in 2020, 78% of Section 106 funds were spent on affordable housing in 2018-19.
I support Amendment 350 tabled by the noble Lord, Lord Best, which is in a later group, which seeks to ring- fence 75% of levy receipts for affordable housing based on the current proportional figure for Section 106 funds.
My amendment attempts to remove the risk of future regulations which would permit the diversion of funds away from affordable housing or infrastructure and towards unspecified items provided by a local authority. I hope the Minister will acknowledge the real and present danger inherent in this part of the Bill and explain how the Government propose to mitigate it.
(1 year, 6 months ago)
Lords ChamberMy noble friend is absolutely right: this is a balance. There are a lot of exceptionally good landlords in this country, but there are a few that are not good—in fact, you could probably call them rogue. It is important that whatever legislation we put through gets that balance right, protecting tenants and good landlords but ensuring that we get rid of those rogue landlords.
Does the Minister recognise the distress and anxiety caused to leaseholders and, indeed, the degree of uncertainty that still exists? Could she explain to us why the opportunity was not taken in the levelling-up Bill to include leaseholders? They are signally not included in it, and so many other things are.
It is very simple: the leasehold Bill was already in production when LURB came in. It is a very complex Bill and the issues in it need their own legislation; it will be here before the end of the Parliament.
(1 year, 7 months ago)
Lords ChamberTo ask His Majesty’s Government what assessment they have made of the National Housing Federation’s report, Overcrowding in England, published on 19 April; and, in particular, its finding that one in six children lives in ‘overcrowded conditions’.
The Government are committed to reducing overcrowding by increasing the supply of affordable housing and enabling councils and other social landlords to make better use of their existing homes. We are also consulting on changes to the NPPF to make clear that local authorities should give greater importance to social housing in planning decisions. The current legislative framework maintains that statutory reasonable preference requirements must ensure that social housing is prioritised for those who need it most, including for those in overcrowded housing.
I thank the Minister for that reply but does she accept that the National Housing Federation’s research has exposed the dire levels of the housing crisis in England? Some 2 million children are forced to live in cramped and overcrowded conditions, with no personal space—that is one in six children. Households from ethnic-minority backgrounds are three times more likely to be affected by overcrowding. There is a general recognition that the leading cause of overcrowding in England is the chronic shortage of social housing, as the Minister has I think acknowledged. Funding for social rent remains at an all-time low. The lack of any funding for regeneration has made investment in existing homes nigh impossible. Does the Minister agree with the National Housing Federation that a long-term, national plan is required to drive up the number of appropriate, affordable homes across England for families right round the country?
Obviously the Government are concerned about overcrowded houses around the country and the report that came out, but I can tell noble Lords what the Government are doing. Now, as we sit here, we have an affordable housing fund of £11.5 billion, and we are putting more priority on using that fund for houses for social rent. The £500 million local authority housing fund is also going out now, to build houses in the next two years where local authorities are under extreme pressure for social housing. As I say, for the future, we are changing the NPPF to ensure that social housing takes a higher priority when local planning authorities are looking at their local plans and prioritising houses for social rent.
(1 year, 7 months ago)
Lords ChamberMy 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.
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.
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?
I understand that that has gone. I do not know the details, but I am very happy to write to the noble Baroness.
(1 year, 7 months ago)
Grand CommitteeTo 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.
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?
(1 year, 7 months ago)
Lords ChamberMy 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.
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?
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.
(1 year, 8 months ago)
Lords ChamberMy 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.
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?
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.
(1 year, 10 months ago)
Lords ChamberMy 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.