Affordable Housing: Supply

Baroness Bennett of Manor Castle Excerpts

Thursday 25th April 2024 Lords Chamber

[Baroness Bennett of Manor Castle (GP)]

My Lords, it is an honour and a privilege to follow the maiden speech of the noble Baroness, Lady Smith of Llanfaes, whom I will call my noble friend because constructive, co-operative politics has to be the way forward in this changing, challenging world. I am delighted to congratulate her on her spectacular maiden speech. The voice of Wales has very definitely been heard, as it so often has been heard from the noble Lord, Lord Wigley. The arrival of Doc Martens has been duly noted. We need to hear many more younger voices in your Lordships’ House, and I hope that she will not be the youngest Member for too long. She and her peers are the experts in the experience of being a young person in the world today. It is crucial, and I have no doubt at all that she will bring so much of that voice to us.

As we have just heard, and as the noble Baroness told the Times, she plans to stand up for the people of Wales. Of course, as a former chief of staff for Plaid Cymru in the Senedd, and having worked in the European Parliament, she brings great experience and knowledge from that. We are also talking, of course, about the balance of representation. In respect of gender, we are still a very, very long way from the 50:50 Parliament that the excellent campaign group of that name is calling for. There is also an issue about age. We desperately need these experiences. The newspapers have also got very excited about the noble Baroness’s desire—which I share—to replace your Lordships with an elected body. She, with greater cause than me, has great reason to ensure that she does not have a life sentence in your Lordships’ House.

I thank the noble Viscount, Lord Chandos, for giving us the opportunity to debate this absolutely crucial issue, and particularly, as the noble Lord, Lord Whitty, commented, on the way the debate is titled in talking about “genuinely affordable housing”. That qualifier is needed because, of course, we now have something of a word soup of terms relating to the kinds of housing tenure. There is the Government’s term “affordable rent” and the related “intermediate rent”. Affordable rent was introduced in 2021, set at 80% of market rates, inclusive of charges. Intermediate rent is also available, but at levels of about 20% lower than the market rate, primarily to lower-income households in London and the south-east. We have the London living rent, introduced to help middle-income earners save for a deposit to purchase a house. We have shared ownership—a form of tenure that, all too often, we increasingly hear, is not so much a step up on to the housing ladder as a great weight around the neck of people who are unable to escape from service charges and unaffordable mortgages. We have the first home scheme—a kind of discounted market sale house offered at a minimum reduction of 30% against the market value. We have to hope that there are not too many people in the current level of mortgage rates who find that also a great burden.

We have to look at this in the context of how genuinely affordable housing rent—what has been termed a “genuine living rent”—can be calculated. The general rule is that households should not have to spend more than 30% of their monthly income on rent. That is in a broader frame of what is known as the 50:30:20 rule: households should be able to spend 50% of their income on their needs and 30% on their wants, and have 20% available for paying off a debt or saving. There are very few households in the UK today that are in that situation—the situation that we should actually aim for.

If we look at some figures from the National Housing Federation, we see that it estimates that by the end of the next Parliament, one in five households—more than 4.8 million households—will be forced to spend more than 30% of their income on rent. That is an increase of 30% on the figures now.

Of course, the other end of this rather disastrous housing pipeline is rough sleeping. We all see this every day—we see it on the streets around your Lordships’ House. There has been a 20% increase in rough sleeping in the last year, and 280,000 households in temporary accommodation.

I have done the depressing stuff; I want to focus on the positive—just a hint of what is possible. For this I am going to Lewes District Council, and Fort Road in Lewes. In 2020, the council took a disused council office building there and replaced it with an award-winning block of 13 council-owned apartments, providing safe, spacious, bright apartments with a very high level of building performance and a renewable energy strategy. Designed using fabric-first principles, they have a large solar photovoltaic array, with 13 individual domestic batteries. That means that the electricity costs are estimated to be 60% below the normal level. The house also, importantly, has fire safety features which are currently not required but are anticipated for the future, with fireproof materials and cutting-edge suppression systems. These are not only affordable quality homes but are very safe to live in—something we need to think more about.

I point to this because it is not simply a one-off. I go to announcements made by the Green leader of Lewes District Council, councillor Zoe Nicholson, who in March pointed out how the council has purchased brownfield land around the Peacehaven golf club and is hoping to also develop a council-owned brownfield site in Ringmer. Twenty-four homes will be built on the Peacehaven site and more homes on these other sites. The council is also looking at old garage sites: 11 locations that could see 45 new homes.

I focus on that because both the noble Lords, Lord Best and Lord Whitty, focused on a centralised, national approach to solving our housing crisis. There is no doubt that resources and changing regulations and rules need to come from the centre, but I argue that we need to resource local authorities to provide the housing they need in their local community according to their local desires, rather than having something enforced from the centre.

The need for change in the centre comes to one particular issue that I want to focus on in this speech, which is right to buy. That has been one of the enormous privatisations, continued over decades under Governments of different hues, that has done great damage to our national social structure and our communities, and continues to do so. I spoke about the exciting things happening in Lewes; similar things happened a few years ago in Norwich, in Goldsmith Street, where ultra-low-energy Passivhaus homes just outside the city centre were built in 2019 and won the RIBA Stirling Prize for architecture. However, after three years, the tenants have the right to buy, and it now looks as if Norwich will lose a number of those brilliant social homes to the private sector.

Of course, this has happened to 2 million homes since 1980. Norwich has more than 4,000 people on the waiting list, yet there and all around the country, we are still losing more social homes than we manage to build. I have a question for the Minister: what is the current rate of loss of social homes to right to buy? I also have a question that perhaps noble Lords on the Labour Front Bench might like to address: why do they not plan to abandon this disastrous policy of privatisation?

I come now to some of the other costs. I should perhaps declare my position as a vice-president of the Local Government Association. Councils are spending £1.74 billion a year on temporary accommodation. This situation is a large part of what is driving councils towards bankruptcy. On LGA figures, 10,896 homes were sold in the last financial year under right to buy, and only 3,447 were replaced—a net loss of more than 7,000 homes. Since the scheme began, £7.5 billion has been handed out in discounts through right to buy.

I am not sure that many people know about this, but it is worth highlighting that, in desperation, Wandsworth Council in south-west London is offering £120,000 help to tenants to buy a house anywhere in the UK—or anywhere in the world—provided it is not a council property. The council is so desperate to save its homes that it is offering people this very large sum of money. I note that four in 10 of the homes sold off under right to buy are now owned by private landlords. I talked about the cost of temporary accommodation, but we also have the massive cost of commercial-level rents on what were council homes for which the state is having to pay housing benefit. This is, clearly, a disastrous policy.

We knew that from the start because the noble Lord, Lord Heseltine, back at the origins of this policy, said that

“no single piece of legislation has enabled the transfer of so much capital wealth from the State”.—[Official Report, Commons, 15/1/80; col. 1443.]

That is, under that ideology, a description of reducing the size of the state, but of course what we are actually doing is making all our communities and our societies much poorer.

What we should be doing is moving towards a housing policy that treats homes as comfortable, affordable, secure places to live, not primarily as financial assets. So my final question to the Minister is about community land trusts, co-operative housing and other alternative tenure models. I absolutely champion council housing, but there are other models that can protect communities from the government policy of right to buy. What are the Government doing to encourage them?