Social Housing Bill [HL]

Baroness Eaton Excerpts

2nd reading
Monday 1st June 2026 Lords Chamber

[Baroness Eaton (Con)]

My Lords, I declare an interest as a vice-president of the Local Government Association and the part owner of rented property in West Yorkshire. In my contribution to the King’s Speech debate last month, I referenced how disappointing it was that the Government would bring forward legislation to further curtail property ownership through a diminishing right-to-buy policy. The Social Housing Bill is a narrow-minded piece of legislation which misses huge opportunities to rectify many of the ongoing issues in the social housing sector—issues that this side of the House will seek to rectify in Committee and on Report.

Property ownership is not a bad thing. It gives families a sense of security in life and a stake in society. You cannot make a modern-day case for capitalism if the individual does not own capital. I refer noble Lords to the paper commissioned by the London School of Economics in December 2024, Human Capital from Childhood Exposure to Homeownership: Evidence from Right-to-Buy. There are some notable points to consider. The right-to-buy scheme has generated detectable, sizeable school performance gains. The policy gave rise to improved educational outcomes via improvements in the local community. The right-to-buy policy had positive effects on educational and downstream labour market outcomes. The right-to-buy experiment shows that increasing home ownership generates greater human capital accumulation.

To curtail the ability of residents in social housing to purchase property through right to buy is immoral and goes against every fabric this Government were elected to uphold. Those opposite may be surprised to know that the decision to allow local authorities to retain 100% of right-to-buy receipts was made by the previous Conservative Government, and it is right. The days when local authorities were forced into pooling right-to-buy receipts on to national schemes undermined the principle of the scheme; namely, that a right-to-buy receipt be used to build new social housing to replace stock that had been purchased privately. I hope this Government will consider using this Bill to put into legislation that the 100% retention of right-to-buy receipts be made permanent.

On a similar point, the Government announced that right-to-buy receipts would need to be spent by local authorities within a 10-year period. Could this legislation include an ability for local authorities to seek an exemption from the Secretary of State where they may have right-to-buy receipts linked to future regeneration schemes coming down the line? As I am sure the Minister will understand, given supply chain constraints in the construction sector, this is having a knock-on impact on local authorities.

Following my contribution in the King’s Speech debate, I reiterate my interest in the upcoming Law Commission consultation on escheat land, which is transferred to the Crown Estate. I understand the commission will look at the feasibility of transferring escheat land to public bodies other than the Crown Estate. I would welcome confirmation in the Minister’s summing up on whether her department will push for housing revenue accounts to be included in this on the basis that local authorities agreed to use such land for building social housing where practical.

Finally, Clause 9 is of concern to me, and I seek clarification on its necessity. It will give the Secretary of State the power to direct local authorities to contribute right-to-buy receipts towards national pooling schemes. Given that the Government have said they would like to keep 100% of right-to-buy receipts for local authorities, I would welcome clarification on why Clause 9 is therefore needed, unless the Government plan to reallocate localised right-to-buy receipts to national pooling schemes.

This Bill is wrong and undermines the principles of home ownership. Significant work will need to take place in Committee and on Report to bring it to a satisfactory condition.