Local Housing Need

Lord Young of Norwood Green Excerpts

Thursday 14th September 2017 Lords Chamber

[Lord Young of Norwood Green (Lab)]

My Lords, I was not intending to enter this debate but I want to make a couple of comments. On the point that was just made about local authorities apparently having enough reserves to build more social housing, even if they do, all those properties—given the Government’s formula—eventually become subject to the right to buy. They come back on to the private market and their prices rise to meet whatever the local circumstances are. If we look at the situations in some local authorities, the right to buy has become the right to buy to let for about 50% of those properties, with very large rents and a huge amount of housing benefit going to these private landlords.

What is the Minister’s view about the developments going on in a number of places? I read recently that, in Hackney, they are using what they call a community land trust, whereby the house may pass on but the land remains in the control of either the community or the local authority. Is this a way forward? It may not solve all the problems but it seems to me that it has a real contribution to make. Are the Government considering ways of encouraging this approach?

[Lord Bourne of Aberystwyth]

I thank the noble Lord, who I know has considerable expertise in this area. I am glad that he decided to contribute. He will know that we are looking at bespoke deals on social housing and a diverse range of ways to deliver housing—I have mentioned Leeds and the West Midlands, for example. I am aware of the community land trust option; I think it is an interesting one and, given that we are going for a diversity of approach, I am sure that in some situations it is entirely appropriate. It will be interesting to see where else that is being followed.

We are in close discussions with the London mayor. My right honourable friend the Secretary of State met him last week—there is a good relationship there. They discussed London’s needs on housing and, of course, we delivered a record-breaking settlement with the mayor of £3.15 billion, so much is being done in London. We accept that there is a great challenge on affordability—as well as design, which has been referred to—and we are grappling with this. I hope that noble Lords will agree that this Statement offers a way forward. It does not solve the crisis, as we are very keen to say, but it is an important contribution to it.