Housing (Built Environment Committee Report)

Lord Bishop of Durham Excerpts

Tuesday 8th November 2022 Lords Chamber

[The Lord Bishop of Durham]

My Lords, I begin by commending the report and thank the noble Lord, Lord Moylan, for introducing this debate. I also commend the work of my right reverend friend the Bishop of Chelmsford, who, as the Church of England’s lead bishop for housing, has tirelessly engaged with this issue and the Social Housing (Regulation) Bill.

Last year, the Archbishops’ Commission on Housing, Church and Community published its Coming Home report, which set out a vision for housing to be sustainable, safe, stable, sociable and satisfying. It is through these values that strong and lasting communities can be built, enabling people to thrive and flourish. It was very interesting to note how warmly these five values were welcomed by the industry itself as a guide.

However, the reality is that a large proportion of housing in this country does not embody these values. It is widely stated that we face a housing crisis, including a shortage of social housing. Social housing is designed to help those whose needs are not served by the market, most commonly those on the lowest incomes. However, when Meeting Housing Demand was published, 1.9 million households were on local authority waiting lists for social housing in England. With rents and interest rates rapidly rising, more households are being pushed into poverty and this list is only growing longer.

This social housing shortage is forcing huge numbers of lower-income households into the private rental sector, while others are placed in temporary accommodation. I recognise that, for some, temporary housing is a valuable lifeline, but it cannot become the long-term solution. In 2021, 124,290 children were living in temporary accommodation. The Archbishops’ Commission revealed that some families had been living in temporary accommodation for over a decade, during which time they had been moved around multiple times. In London, 37% of those in temporary accommodation are placed outside the resident’s home borough and, in some cases, moved to other parts of the country. This means that they are moved away from family, friends, schools, jobs and communities. This is no way for a child to grow up and it is why we need much more social housing.

Furthermore, the crisis is being exacerbated by a lack of genuinely affordable housing. Affordable rents are set at about 80% of the market rate, but in many areas this is not affordable for those on low incomes, so it pushes more households into poor-quality private rented sector housing. Do the Government have any plans to change the percentage of the market price at which housing is deemed affordable, or instead to define affordability in relation to household incomes?

To mitigate this crisis in the long run, it is crucial that more social and affordable housing is provided. Over the past 40 years, there has been a halving of the social rental sector. The Government’s target is ambitious at 300,000 new homes per year and 1 million new homes by 2024, but they have not outlined what housing types and tenures these will be. What percentage of these targets will be genuinely affordable social housing? A more detailed plan is required, outlining targets for the proportion of these homes that will be affordable.

As the Meeting Housing Demand report reveals, many tenants who previously would have been in social housing are now privately renting expensive accommodation, with their rents subsidised through housing benefit. This is costing the Government £23.4 billion per year. Providing more social housing is a matter not only of helping some of the most vulnerable in our society but of financial common sense.

I highlight the work of the local authorities in my region of the north-east, as they strategise and begin to build new social housing. In particular, I highlight Sunderland City Council, which is collaborating with Sunderland College and the Ministry of Building Innovation and Education to develop a housing innovation and construction skills academy, which will educate, train, and upskill local people, who will then be able to build local homes. I commend these local authorities as they work to build new social housing and reduce the skills shortage at the same time, but there must be a more detailed commitment on a national level. I ask the Minister: how widely are the Government encouraging councils, colleges and industries to work collaboratively on upskilling people in the housing industry?

Here, in line with the point made by the noble Lord, Lord Moylan, and the noble Baroness, Lady Thornhill, I ask about Section 106 money. The connection to local social provision has been hugely important for schooling and other community facilities. Can the Minister confirm that any proposed changes will not lose this connection to local provision?

I conclude by returning to highlight the work of the Church Commissioners, who have begun to use church land more specifically to build affordable housing that embodies the five core values of good housing, as previously stated. In the north-east, they are partnering with local councils and currently plan to build 3,952 new homes, between 510 and 930 of which—possibly more—will be affordable. I encourage local developers to follow their lead.

With the rising cost of living, it is vital that urgent action is taken. I reiterate my request to the Government to produce a clear commitment and strategy for good-quality, affordable social housing, built at net zero. Without it, this crisis will only worsen, severely impacting children, families and households across the country.