Home Ownership

Debate between Lord Sharkey and Lord Bourne of Aberystwyth

Tuesday 17th October 2017 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, as I have indicated to the noble Lord, the position has stabilised over the past few years and barely changed—in fact, it has become slightly better during the past year with the percentage having fallen from 71% in 2003. The noble Lord will be aware, as the House is aware, that the Government are taking many measures to extend home ownership but also to diversify the tenure of houses—£2 billion was announced earlier this month, much of which will go on social rent. We are extending home ownership but at the same time seeking to diversify supply, because the noble Lord is right that this is a serious challenge. As he has indicated, there is a serious intergenerational problem that we wish to address.

[Lord Sharkey (LD)]

My Lords, in the last financial year, private builders built 121,000 new homes in England, housing associations built 25,000 and local authorities built 1,840. The Government admit we need to build at least 275,000 homes every year just to prevent prices rising. Private builders will not build any more than they do; housing associations can maybe build 50,000 a year—that means local authorities will have to build 85,000 each year. How will the Government enable them to raise the money to do that?

[Lord Bourne of Aberystwyth]

My Lords, as I have indicated, the Government have just announced £2 billion, and we will be shortly explaining precisely how that money will be spent. Much of it will be going on social rent. We have committed to 1 million new homes by 2020, and 1.5 million new homes—a further half a million—by 2022, which are needed to meet the challenge. It is a far better performance than we have had in recent years. There is a massive challenge here and the Government are aware of this. Part of it is also answered by something that we announced fairly recently: building homes in the right places and ensuring that more of them are built where there is the greatest need and the greatest pressure.