National Policy Planning Framework: Housing

Lord Hain Excerpts

Monday 6th January 2025 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

It is possible for builders to change the provision if they need to, but that has to be in exceptional circumstances, because the need for social housing is so acute. The Government have set up a new clearing service for those Section 106 homes via Homes England. That was launched on 12 December, and we hope that it will enable us to match up registered providers with the social homes available under Section 106.

[Lord Hain (Lab)]

My Lords, in endorsing the condolences expressed to Baroness Randerson’s family and friends, I remind the House that she was also a stalwart champion of Wales, with a long record of public service that should be recognised.

Can my noble friend the Minister confirm that the 2010-15 Tory-Lib Dem coalition Government spent £10 on building new homes for every £100 on housing benefit? That was virtually a reversal of 40 years ago, when every £100 we spent on building homes was matched by £20 on benefit. Is that not another reason for building many more council houses and for public investment in social housing?

[Baroness Taylor of Stevenage (Lab)]

I echo my noble friend’s points about Baroness Randerson’s work in Wales. He makes a valid point: a good reason for building social housing is that it saves expenditure on DWP funds. In my own area, a private rented property costs around £1,200 a month; a social rented property is about £600 a month. Even those with my maths skills can work out that that would be a saving. That is why it is so urgent that we get on with building the social homes that we need. There are social reasons for doing so, but also very good financial reasons.

Housing Supply and Homelessness

Lord Hain Excerpts

Thursday 5th December 2024 Lords Chamber

[Lord Hain (Lab)]

My Lords, it is a real pleasure to follow the noble Baroness, Lady Smith of Llanfaes, who speaks with real eloquence. Her voice is important in this Chamber. I say of the right reverend Primate that whenever I have him speak in this House, he has done so with passion, conviction and authority on some of the great social inequalities and issues of our day, and he will be missed.

For far too long, Governments have left it to the market to tackle Britain’s housing crisis, and it has not worked, leaving a chronic housing shortage which has been pushing up house prices and making private rents unaffordable, creating mammoth waiting lists for social housing and driving up the annual housing benefit bill, as the noble Lord, Lord Shipley, pointed out earlier.

The 2010-15 Conservative-Lib Dem coalition Government committed to spend only £10 on building new homes for every £100 on housing benefit—virtually a reversal of 40 years ago, when, of every £100 we spent on housing, £80 was invested in bricks and mortar and £20 was spent on housing benefit.

Even Labour’s ambitious and admirable commitment to raise housebuilding to 300,000 homes a year during this Parliament still leaves a gap, with millions of families on council waiting lists and millions more adult children staying with their parents because they cannot find or afford a home of their own. The average home cost 3.5 times average earnings in 1997. By 2023, it cost more than eight times. How can young couples be expected to climb the housing ladder when it is impossibly expensive for them to find a place on its lowest rung?

Oxford University Professor John Muellbauer has found that in the UK, on average over 70% of the value of homes is in the value of the land on which they are built. He urges central government and local authorities to work together in using public funds to buy development plots, in effect to establish a national land bank, for subsequent sale with planning permission to private developers at a profit to the community. He argues that such a radical move could transform housing supply and that similar initiatives have succeeded in South Korea, Singapore, Taiwan and Hong Kong in accelerating urban development and in making housing more affordable.

It is important to recognise that the state—much derided and denigrated by right-wing think tanks—has played a major role in promoting economic growth ever since the Industrial Revolution, fulfilling basic functions such as promoting public health, housing the homeless, educating the young, supporting the old, caring for social casualties of all kinds, enforcing the law, defending the nation against threats from abroad—and periodically saving the banking system from itself and protecting the real economy from a slide into slump. Increasingly since the Second World War, and especially in capitalist economies such as the US, South Korea, Singapore, Israel, Taiwan, Germany and Brazil, the state has done more than just fix market failure by funding the basic research that leads to discovery and invention, educating young people and providing the infrastructure on which the market economy depends, including housing.

The Conservative vision of individual empowerment through private markets and private property ownership simply has not worked. It was given a strong run from 2010 to 2024, with savage public spending cuts and economic incompetence typified by Liz Truss’s disaster, provoking a massive public backlash which ejected them from power. Remember also Margaret Thatcher’s popular capitalism, which in the 1980s seemed to capture the mood and was electorally successful, especially through selling council properties—but the fatal flaw was not reinvesting the revenues in building new council homes. The result has been a chronic shortage of affordable housing for both rent and purchase.

Through heavily discounted council home sales and cut-price share offers in privatised utilities, Conservative rhetoric promised each individual a stake in capitalism. Despite the fact that home ownership was more widespread for a time, it has since declined to a modern low. Official statistics showed that the proportion of homes lived in by owner occupiers in the year 2023–24, last year, had dropped to 65%, down from 71% under Labour in 2003 and its lowest level for 35 years. New social housebuilding has also plummeted, leaving calamitous shortages of affordable housing for rent or sale.

The neoliberal mantra has not worked. As a mechanism for delivering adequate housing, the free market has failed abysmally, which is why public investment is now more vital than ever before to clear up this appalling housing mess.

Shared Prosperity Fund: Wales

Lord Hain Excerpts

Wednesday 4th December 2024 Lords Chamber

[Lord Khan of Burnley (Lab)]

I thank the noble Lord. As I said to the noble Baroness, Lady Smith, we are having discussions with all counterparts. However, it is important to recognise that people in Wales will have a huge say on how that money will be invested in terms of local growth, businesses and working together in partnership.

[Lord Hain (Lab)]

My Lords, I associate myself with my noble friend Lady Wilcox’s question, including her congratulations for our magnificent Welsh women footballers. Does the Minister agree that the previous Conservative Government penalised Wales massively, including by pretending that the shared prosperity fund could somehow substitute for European Union economic funding? Taken together, the £243 million loss of rural EU funding and the £772 million shortfall in EU structural funds add up to more than £1 billion. So much for making Brexit work; for Wales, it has been absolutely disastrous.