Social Housing Bill [HL]

Baroness Shah Excerpts

2nd reading
Monday 1st June 2026 Lords Chamber

[Baroness Shah (Lab)]

My Lords, it is a privilege to follow the noble Lord, Lord Young of Cookham, and although I may not agree with all his points, I certainly respect his experience and views. I start by declaring that I work for the Local Government Association. I support the Bill, not only as a Member of this House but as someone who has spent years working at the coalface of housing need as a councillor who led on regeneration and planning for eight years, becoming one of London’s largest housebuilders. I welcome the comments made by the noble Baroness, Lady Warwick, and the noble Lord, Lord Best, on the importance and value of regeneration.

I welcome the Bill and other measures that the Government have implemented to speed up housebuilding to address the housing crisis, including the £39 billion for social housing. Social housing is a foundation on which people build lives. It is where children grow up and go to school; it is where families such as mine put down roots and where communities are built. When we allow social housing stock to erode, we are not simply making a balance sheet error, we are narrowing life chances. As mentioned by my noble friend the Minister, the numbers are stark. It is a source of shame that more than 175,000 children are in temporary accommodation. More than 1.3 million households across England are currently on waiting lists for a social home. We simply do not have enough homes.

The temporary accommodation bill alone should give us pause for concern. Government figures show that council spending on temporary accommodation reached £2.8 billion in 2024-25. This is not just a housing argument; it is a fiscal one. Research by the National Housing Federation and Shelter found that the government funding needed to build the social homes we require would be fully paid back within 11 years through savings on housing benefit, NHS costs and homelessness expenditure, and additional tax receipts from construction employment.

If the case is so clear, why have we not built? I know from direct experience why councils find this so difficult. Barriers such as the state of the housing revenue account, the cost of public borrowing and workforce shortages have all been challenges to councils which want to build, and I welcome the steps the Government have taken to start to address these. Then there is right to buy, which the Bill rightly addresses. Right to buy was introduced in 1980, and today there are more than 131,000 fewer affordable homes than there were at the start, driven largely by the failure to replace homes under that scheme. The measures in the Bill to extend eligibility to 10 years, exempt newly built stock for 35 years, and provide a perpetual right for first refusal on resale are genuine improvements and I welcome them wholeheartedly.

There is, of course, a rich irony in the fact that those on the opposite Benches who argue most loudly for the right for every family to own their own home have, at the local level, spent years frustrating the very development that would give families somewhere to live in the first place. We have all watched the pattern: support for housing in principle but objection to housing in practice—a planning application in a leafy ward that somehow never quite gets backed. The former Government removed mandatory housing targets and saw new approvals collapse accordingly in precisely those areas where housing need was greatest.

We on this side of the House believe that you cannot claim to support housebuilding while blocking homes at every planning meeting. This Bill is for those who are willing to follow this through. Addressing supply must meet demand. I offer two suggestions. The first concerns a replacement ratio. Parliamentary scrutiny has previously found that the system should ensure that any home sold via right to buy is replaced like for like, with local authorities retaining all receipts to enable them to do so. A one-for-one replacement principle could be built into the framework, even implemented flexibly over a defined period, to give councils and communities the assurance that every sale is matched by a new beginning.

The second concerns the flexibility of right-to-buy receipts. I raise this as someone who has seen at first hand how the current rules interact with the real complexity of delivering housing at scale. A major regeneration scheme—the kind that generally transforms a community, delivering hundreds of homes alongside schools, green spaces and new streets—may take five, seven or even 10 years from conception to completion. Planning processes can be lengthy and viability assessments contested. Development timelines are not solely within a council’s control. Restrictions on the use of right-to-buy receipts have been identified as a key barrier to council housebuilding and, although temporary flexibilities have been introduced at various points, they have not provided the certainty or permanence that councils need to plan with confidence.

When receipts must be spent within fixed timelines or face clawback, councils are pushed to smaller, faster projects that may not represent the best long-term value, rather than larger, more complex schemes that transform communities. Allowing councils permanent flexibility to combine right-to-buy receipts with other government grants and to spend receipts at a timescale that reflects local development realities, particularly when councils can demonstrate that receipts are committed to a named scheme, could be a way forward.

This is a good Bill. It is overdue and it is needed. But good housing policy is not made in this Chamber alone; it is made when legislation is matched by resources, by long-term partnership between central and local government, and by a shared willingness at every level—local, national, urban, suburban and rural—to say yes to the homes that our country needs. The National Housing Federation and Shelter estimate that 90,000 homes a year are needed to meet demand. This Bill is another step which this Government are taking. Every measure that we take in this House to bring those homes a little closer is a measure worth taking. I look forward to engaging with this Bill and I commend it to the House.