Long-Term National Housing Strategy

Baroness Swinburne Excerpts

Thursday 29th February 2024 Grand Committee

[Baroness Swinburne (Con)]

My Lords, I am pleased to respond to this Question for Short Debate. I start by thanking all noble Lords for their contributions and, in particular, the right reverend Prelate the Bishop of Chelmsford for bringing forward this important debate. I know that she has taken a keen interest in this issue over a long period and I thank her personally and on behalf of the Government for her leadership on this matter and for developing proposals to release more church land in particular for affordable housing. It really is recognised and appreciated.

In light of the comments from across the Committee, I assure noble Lords that the Government are committed to delivering more of the right homes in the right places. We have a long-term strategy that we are delivering and a strong record to build from. In fact, the four highest annual rates of housing supply in the last 30 years have all come since 2018 and we are on track to meet our manifesto commitment to build 1 million homes this Parliament.

The long-term strategy for housing that we committed to in July 2023 encompasses all tenures and supports households right across the country. In this strategy, we are regenerating our most treasured towns and cities, starting with London, Leeds and Cambridge. We are giving communities a voice in what development happens in their area and where.

In particular, quality is key to this strategy. We are introducing the most comprehensive reforms that the private rented sector has seen in 30 years through the Renters (Reform) Bill, including applying the decent homes standard across the private rented sector for the first time to ensure that every home is safe, decent and warm. We are also delivering on one of our core commitments: the Government are liberating leaseholders through the Leasehold and Freehold Reform Bill, expanding the rights of leaseholders to enfranchise and take back control from distant freeholders.

We know that increasing supply is critical, especially of affordable housing. That is why I hope that the noble Lord, Lord Best, will acknowledge that our £11.5 billion affordable homes programme is delivering tens of thousands of affordable homes to rent and to buy, alongside the £1 billion brownfield, infrastructure and land fund and an additional £4.2 billion through the housing infrastructure fund to support new development. Separately, we are also providing £1.2 billion to the local authority housing fund to support refugees and those at risk of homelessness, on top of almost £2.4 billion this spending review period to tackle homelessness and rough sleeping.

To further support our ambitions on supply, the Secretary of State announced changes to the National Planning Policy Framework in December 2023 and set firm expectations for local authority planning performance. Also, just two weeks ago the Housing Secretary announced new commitments to boost brownfield development across the country to help to provide the right homes in the right places.

I will try to respond to as many of the specific questions as possible, so apologies if I miss anybody out. If I do, we will try to cover those by reading Hansard afterwards and replying in writing.

In no particular order—my pile of sheets is fairly huge—the first sheet in front of me is in response to the noble Lord, Lord Crisp, on cross-party support, which many noble Lords mentioned, including the right reverend Prelate. What have we done to seek cross-party support while developing the long-term strategy? I suggest that we have sought cross-party support at every step of the way across all the principles underpinning our long-term strategy for housing. We have engaged in lively debate in both Houses on our legislative programme, including most recently on the Renters (Reform) Bill and the Leasehold and Freehold Reform Bill to strengthen these key pieces of legislation and ensure that we get them right. We have laid Written Ministerial Statements, setting out our policy intentions to both Houses to scrutinise, and we have published consultations inviting views from all to ensure that we are listening to a spectrum of views as we strive to deliver good homes in great places to live and work.

Many noble Lords mentioned cross-Whitehall collaboration and it is fair to say that we work in this way. Very many departments are involved in this work, which is ongoing and continuous. The noble Lord, Lord Crisp, also commented on permitted development rights. I agree: we need to look for all alternative forms of new homes. Permitted development rights give us a way to deliver those more quickly, in many instances.

Last summer we issued a consultation on PDR amendments to support housing delivery, including potential changes to the PDR, which would allow the change of use of commercial premises to residential. Following the analysis of the consultation responses, we have amended Class MA to remove the 1,500 square metre limit on the amount of floor space that can change use under the right, and removed the requirement that the premises need to be vacant for at least three months before an application for prior approval can be made. I hope, therefore, that there is some support for that, as changing some of these permitted development rights is making an important contribution to the delivery of new homes across the country, with 104,000 new homes having been delivered under these rights in the eight years to March 2023. I hope that will expand and accelerate under the new proposals.

My noble friend Lord Bailey mentioned young people. Indeed, first-time buyer numbers have been steadily improving over the last decade, and in 2021 we saw the highest number of transactions in 20 years. However, there is more that can be done and, I hope, is being done. We are committed to providing a secure path to home ownership by increasing the number of first-time buyers, helping people access homes and make true freehold ownership the standard. Since 2010, over 876,000 households have been helped to purchase a home through government schemes, including Help to Buy, right to buy and shared ownership.

The noble Lord, Lord Young, mentioned various schemes, but in particular those for key workers. Our first homes programme is designed to help local first-time buyers in their locale and indeed key workers on to the property ladder by offering homes at a discount of at least 30% compared to the market value.

My noble friends Lord Bailey and Lord Jackson, and others, mentioned public sector land. We are setting up a new public sector land for housing programme which will release land for at least 15,000 homes this year and the next, and we have been working with large landowning departments—

[The Lord Bishop of Chelmsford]

I am grateful to the Minister for outlining some of the Government’s response to the crisis, and indeed for referencing their own long-term strategy. Does she agree that seeking to find cross-party support for their long-term strategy is different from sitting down and working together cross-party towards the creation of a long-term strategy, with a national housing committee, that would report progress and seek to hold the Government of the day, of whatever party, to account?

[Baroness Swinburne (Con)]

I appreciate the sense and sentiment behind that; therefore, although I am not personally familiar with the issue, I will take it back to the department to discuss where we are at. But I point out that this is a sensitive area in which collaboration is really important, not just with government at the highest level, but with local government and delivery partners, so collaboration is in the DNA of this. We need to figure out how this is going to work; however, I will come back on this issue when I have spoken to the department.

Returning to the issue of public sector land, we have been working with larger landowning departments, including the Ministry of Defence, the Department for Transport and the Department of Health and Social Care, as well as with Homes England, to establish this new programme. These departments, along with the Cabinet Office and the Treasury, will come together in a new ministerial task force to ensure delivery by March 2025.

On affordable housing supply, to give some historical context, since 2010 we have delivered over 696,100 new affordable homes, including over 482,000 affordable homes for rent, of which 172,000-plus are for social rent. In the period from 1997 to 2010, some 557,000 affordable homes were delivered. The Government are on track to deliver their target of building around 250,000 affordable homes—

[Lord Lilley (Con)]

The Minister does not seem to wish to address the points I raised at the beginning of the debate, but did she note that all the speakers opposite seem to believe in a Zen housing strategy involving only one hand clapping? Supply side does not address demand, even though that requires us to build the equivalent of Birmingham every two years just to cope with incomers, before we build a single house to deal with the existing problems the right reverend Prelate so eloquently enunciated at the beginning. Is the Minister a Zen planner too?

[Baroness Swinburne (Con)]

I can assure my noble friend that I am not a Zen planner. However, I am a realist, and I am faced with a multiplicity of policy responses to the rise in demand, no matter where it comes from. The Government do consider the demand and supply side, which form part of our long-term strategy.

[Baroness Taylor of Stevenage (Lab)]

We challenged the term “affordable housing” during the passage of the levelling-up Bill. It is still being used constantly, as though using it means that the housing is affordable to anyone, which it absolutely is not. Can we please have a bit of caution over the use of that term?

[Baroness Swinburne (Con)]

I note the noble Baroness’s comments on the definition of that terminology. It is not mine—it is a term the department uses—but I will query its definition.

On overall delivery, £11.5 billion was made available in the affordable homes programme and it will deliver thousands of affordable homes to rent and buy across the country. Local authorities also have a crucial role to play in increasing the supply of social housing. That is why, in 2023-24, we introduced a package of flexibilities for how local authorities can spend their right-to-buy receipts. We implemented a preferential rate for borrowing from the Public Works Loan Board for building council houses, which has been extended until June 2025.

The noble Lord, Lord Carrington, raised the issue of rural housing, as did the noble Lord, Lord Young. We delivered more than 268,000 affordable homes in rural communities in England between 2010 and March 2023. Of the £11.5 billion we are investing, £7.5 billion will be outside London. That will help boost the supply of affordable housing in rural communities. We recognise that development of affordable housing in rural areas can be costlier and riskier; therefore, the Government are trying to help partners with their funding.

I am now out of time, but there are several pages of points I have not got to. I reassure noble Lords that the Government are delivering a long-term housing strategy that provides safe, decent, warm and beautiful homes for communities across the country. We are determined to work with the housing sector, local authorities and all of your Lordships to make our ambition a reality.