Social Housing Bill [Lords]

Andrew George Excerpts

2nd reading
Thursday 10th September 2026 Commons Chamber

[Matthew Pennycook]

My hon. Friend is right: we absolutely need to give local councils flexibility. We have already helped councils to build their capacity. We have, as I will mention later, allowed them to keep 100% of right to buy receipts. We are considering everything we need to do to move the dial when it comes to house building, to build on the steps that we have already taken.

The Bill has three core objectives: first, to protect much-needed housing stock and thereby incentivise the building of more social rented homes; secondly, to create a fairer tenancy system with greater protections for tenants who are victims of domestic abuse; and thirdly, to reduce unnecessary bureaucracy and give providers greater regulatory certainty so that they can invest in new social and affordable homes with confidence. Let me provide further detail on each objective in turn, starting with the measures designed to better protect existing social housing stock and incentivise the building of more social homes.

At the heart of the Bill are comprehensive reforms to the right to buy scheme. In addressing them, I emphasise that we are not abolishing the right to buy—I know and respect the fact that some right hon. and hon. Members object to that decision on principle—but the Government remain firmly of the view that social housing tenants who have lived in and paid rent on their homes for many years should retain the opportunity to purchase them at a reasonable discount. However, we need to radically reform the right to buy in order to reduce the significant outflow of stock that has taken place since discounts were drastically increased by the coalition Government in 2012, to incentivise councils to build, and to attract broader investment in council housing.

As hon. Members will know, we have already acted to reduce maximum right to buy cash discounts, to increase the cost floor protection period, to ensure—as I just said to my hon. Friend the Member for Bradford East (Imran Hussain)—that councils keep 100% of right to buy receipts, and to allow council to combine those receipts with developer contributions and grant funding. The Bill delivers the broader set of reforms necessary to put in place a fair and sustainable right to buy scheme for the future, informed by the feedback we received in the public consultation that ran from November 2024 to January 2025.

Key measures in the Bill include increasing the right to buy eligibility requirement from three to 10 years, amending percentage discounts to better align with new maximum cash discounts so that long-standing tenants benefit from the largest reductions, and exempting newly built social homes from sale under right to buy for 30 years. The Bill also exempts homes from sale under right to buy in areas designated as rural, given that homes in those areas are extremely difficult and expensive to replace. In the other place, peers sought to persuade the Government to set criteria for rural designation in regulations, and we have committed to amending the Bill to enable that.

[Andrew George (St Ives) (LD)]

The Minister will know that clause 12 includes provision restricting housing associations from disposing of stock, including, for example, housing for which it is expensive to achieve an energy performance certificate rating of C. My area is haemorrhaging larger numbers of social homes because of that rather than because of right to buy. Will he ensure that rural communities, where there is a scarcity of social housing, are protected and supported in retaining those properties?

[Matthew Pennycook]

I am sure that we will have ongoing discussions about that and other issues. The hon. Gentleman may wish to hone his private Member’s Bill—the Homes and Planning Bill—so that it focuses on this issue among others. As I said at oral questions on Monday, I recognise the strength of feeling in the House on disposals. I want to ensure that every opportunity is taken to retain homes in the social housing sector.

The new disposal notification requirements in the Bill, which I will address later, will maximise opportunities for social housing providers to buy and retain social homes, but housing associations remain independent organisations, responsible for their own asset management decisions. Yes, we are looking at what more we can do to protect much-needed social housing stock, but there are limits to the extent to which we can go. Further to that point, we are also taking equally important steps to ensure that councils are in a better position to buy any disposals—by raising the gap on grant funding for acquisitions, for example.

Taken together, those measures will fundamentally alter the trajectory of social housing supply. Between April 2012 and March 2024, there were over 124,000 council right to buy sales, with fewer than 48,000 homes replaced in the same period. Under the previous, pre-reform baseline, we could have expected to see an approximate net loss of another 26,000 council homes between 2026 and 2036. Following the implementation of this Government’s right to buy reform package, including the measures in the Bill, we instead expect to realise a net gain of around 18,000 homes in the same 10-year period. To put it more simply, instead of vainly watching the loss of precious social homes massively outpace their building, we will, for the first time in decades, build considerably more than we are losing thanks to this Labour Government and this Bill.

--- Later in debate ---

[Matthew Pennycook]

It is disappointing to hear that my hon. Friend’s local authority is not interested in any way in trying to bring those homes back under local authority control. As I said, there are limits to what we can do. Housing associations remain independent organisations. I am sure that hon. Members will be aware of the risks concerned with the steps the Government might take on reclassification, but we are exploring what more can be done to protect much needed social housing stock. As I said, it is just as important that we ensure that those councils and other providers that do want to buy—there are plenty of them—are in a position to do so.

On the issue of disposals, having listened carefully to the debate in the other place on this matter, we have committed to introducing an amendment to extend the window of time that must pass between notification and the sale of a property to give councils and other providers more time to consider whether homes can be purchased and retained in the social housing sector, which we want to see.

[Andrew George]

Will the Minister also consider extending the option to consult community groups, community land trusts and housing co-ops? They could take on these properties, rather than their leaking out into the private sector. In areas like mine, if properties leak into the private sector, they will most likely become second homes.

[Matthew Pennycook]

Indeed. That is precisely why we are introducing the notification window: we want to give local authorities and other providers the maximum opportunity to bring those homes back under their control. It is just as important that they are able to do so in practice. There are other issues affecting local authorities. A number of my hon. Friends in oral questions at the start of the week spoke about pressures on housing revenue accounts. All those issues are bearing down on the ability of councils to buy homes. We are looking at reforms to this area, not least the cap on acquisitions.

--- Later in debate ---

[Andrew George (St Ives) (LD)]

I support the Bill. It is the beginning of what the Government should be doing, but they can and should go a great deal further, both to address the need for significant growth in the scale of social housing being built and to support particularly vulnerable groups, including, as the Bill rightly says, victims of domestic violence.

I am surprised that the protections from right to buy have not been extended by preventing sales of the homes held by community land trusts, housing co-ops and not-for-profit housing providers, which have very small stocks that really do need to be protected. I am also surprised that the Government have not brought forward measures to stop the bedroom tax, which Labour campaigned against during the coalition Government. At that time, I introduced a private Member’s Bill, the Affordable Homes Bill, which Labour supported, but the Government have not included its provisions in this Bill.

I do hope that the Minister will take a second look at the issue of disposals and clause 12, on which I intervened on him earlier. At present, stock is haemorrhaging out into the private sector as a result of understandable requirements from the Government to achieve higher energy performance certificate levels and the decent homes standard. Where it becomes too expensive for housing associations to deliver on those requirements, there should be a presumption in favour of disposal to democratic bodies such as community land trusts at a value consistent with affordable housing. The problem is that housing associations sell those homes at open market value, when in fact they could be taken on by local charitable bodies and still be provided to local people in housing need.

The Minister referred to my private Member’s Bill. There are a number of provisions in it that I hope that he will consider that I do not need to propose myself. We need to strengthen the protection for areas that immediately adjoin communities, and to protect the rural exceptions policies, which were mentioned by my hon. Friend the Member for Taunton and Wellington (Gideon Amos). We need to work out how we can deliver more social housing when hope value is being fuelled by counterproductive housing targets. That is undermining so many measures that should be available to communities to help them to deliver what is desperately needed.