Social Rented Housing: Construction

Lord Greaves Excerpts

Thursday 26th October 2017 Lords Chamber

Asked by

[Lord Greaves]

To ask Her Majesty’s Government, in the light of the comments by the Secretary of State for Communities and Local Government on 22 October about investment in housing, whether they intend to finance an increase in house building by councils and housing associations through increased borrowing; and if so, how many additional houses they intend should be built within the next five years.

[Lord Greaves (LD)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper, and remind the House of my interest as a district councillor.

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government and Northern Ireland Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, we are keen for local authorities and other social landlords to build more homes. That is why we have recently announced an additional £2 billion increase in the affordable homes programme to more than £9 billion for affordable housing, including social rents. We have also provided rental certainty for social housing from 2020, which will enable social landlords to plan their homebuilding programmes more effectively. Nevertheless, we continue to be open to dialogue with our local authority partners about any constraints holding them back.

[Lord Greaves]

My Lords, at the weekend the Communities Secretary said that the Government should borrow a lot more money in order to build between 275,000 and 300,000 houses a year in England alone. Since then, the Chancellor said in reply to my right honourable friend Vince Cable in the House of Commons that this was not government policy. Do we still have collective Cabinet responsibility in this country, or do we have a system in which Cabinet Ministers simply debate with one another in public?

[Lord Bourne of Aberystwyth]

My Lords, I remind the House of the commitment of the Government to build 1 million more new homes by 2020 and an additional half a million by 2022. In pursuance of that, we look at the borrowing capacity of local authorities. They currently have £3.6 billon of housing revenue account headroom available. We increased the borrowing capacity by £300 million in 2013, of which only £144 million has been taken up. As I have said, we remain open to discussing this matter and indeed do so with our local authority partners.