(8 months ago)
Lords ChamberI return to the statistic that we have increased the number of affordable homes by 482,000 during the period since 2010. That means there are more houses for people to rent at an affordable rent. We also acknowledge that the rent agreements with regards to the increases, particularly for social housing over the last year, while inflation was running high, have had an impact on the housing associations, but we are working closely with them to make sure that they have the right to increase their rents at an acceptable level while the tenants themselves are not having to struggle with the high cost of living.
My Lords, as one of the Housing Ministers in the 1979 Parliament, I say to the noble Lord, Lord Bird, that I do not recall the right-to-buy legislation being in my briefing pack when I took office. Returning to the original Question, I agree that we need more affordable homes. Has my noble friend seen a report by the Home Builders Federation that 13,000 sites for affordable homes have been earmarked as a condition for market sales on the rest of the site but no housing associations or local authorities have come forward to claim them? Can my noble friend find a solution?
I thank my noble friend for that question. We have been monitoring this for some time. All measures to increase the rate of housebuilding for the provision of affordable homes are being considered, including the preferential borrowing rate for councils, and housebuilding from the Public Works Loan Board, which has been extended to June 2025. Indeed, that 100% temporary measure for the right-to-buy receipts for the last couple of years was to increase the capital buffer to allow the speeding up of housebuilding and acquisition in the sector. The abolition of the housing revenue asset borrowing cap also helps, alongside the £11.5 billion affordable homes programme. We believe that local authorities and housing associations are being supported to maximise delivery at pace, and we strongly urge them to utilise the flexibility to build these new homes.
(8 months, 3 weeks ago)
Lords ChamberMy Lords, I am grateful to my noble friend for the additional information, but can I press her a little further on the key issue raised by the two noble Baronesses: the pace of remediation? I welcome the action taken last year by the Government to compel 50 major developers to sign the developer remediation contract, but it does not have a timescale. One large London-centric developer, Galliard, says that its remediation plan could take another eight years. That will be 15 years after the Grenfell tragedy. Does my noble friend think that is acceptable? Related to that, under the contract, developers are obliged to report their target dates for each building to my noble friend’s department in their quarterly returns data. So far, the department has not published that data, meaning that leaseholders are unaware of what progress is being made. Can she consider publishing that data, which the department has, so that people know the pace agreed by the developer and her department?
I thank my noble friend for that question. To start with the second question first, yes, I shall take that back to the department. Given that transparency is a tool that we are using, it would make sense to make that communication transparent. I shall report back to my noble friend on progress on that.
On whether I personally think that developers taking eight years to fix this is acceptable, absolutely not. These are people’s homes; they need to feel safe. The reason why that new money has become available for regulators is to ensure that enforcement action can happen and to increase the pace of the change that is required, ensuring that remediation takes place as soon as possible. Therefore, I suggest that, if there are specific instances, noble Lords should speak to the department so that we can make sure that pressure is put on.
I respectfully disagree with the noble Baroness: we are not kicking this into the long grass. However, this will be the biggest challenge to the private rental sector for over 30 years, and it is vital that we deliver reform in a way that both protects the security of private tenants and retains the confidence of landlords in that new system. This is why Section 21 will be abolished only once we judge sufficient progress has been made to improve the court’s possessions. It is our commitment, in line with recommendations made in the Levelling-up and Regeneration Bill and in recent reports, that we will do this as a matter of priority. I will also draw attention to the new Housing Loss Prevention Advice Service, introduced on 1 August 2023, which will help with those evictions as of now.
My Lords, is it not the problem that the private rented sector in this country is overreliant on the small private landlord, whereas in most other countries it is the financial institutions and the pension funds that invest in private rented property and provide professional management? They do not need Section 21, so what steps are the Government taking to encourage financial institutions in this country to invest in the private rented sector and replace the small private landlord who, in many cases, is anxious to sell up?
We know that the profile of landlords providing homes in the private rental sector has changed over the past 20 years. A wide range of landlords operate in the sector, owning different numbers of properties and focusing on different markets, and they all have a role to play providing secure and decent homes. However, the Government also welcome new institutional investment in the private rental sector and have made a number of interventions to support the Build to Rent sector. Build to Rent boosts housing supply, diversifies the private rental sector and increases the quality and choice for renters in cities and towns across England.
With regard to the quality of homes, we have a legacy of poor-quality housing stock that is risking people’s health. Since 2010, we have reduced the number of non-decent homes by over 2 million. We are going further in order to halve the number of non-decent rented homes by 2030. We will update the decent homes standard and introduce it in the private rented sector for the first time. We are delivering the Social Housing (Regulation) Act, which achieved Royal Assent last week, which allows the regulator to issue unlimited fines to landlords failing to deliver, as well as to ensure that serious hazards are addressed quickly. Finally, of course, we will ensure the quality of new builds through plans to consult on a future homes standard to create beautiful, sustainable homes and a new homes ombudsman that will hold developers to account for shoddy new builds. I will reply in writing to the rest of the noble Baroness’s questions.
My Lords, today’s speech promised radical action to unlock the supply of new homes, which I am sure we all welcome. Can my noble friend say whether today’s announcement will involve any amendments to the Levelling-up and Regeneration Bill currently before your Lordships’ House? If not, will the Government smile on some of my amendments that have the same objective?