Social Housing: Right-to-buy Sales Debate
Full Debate: Read Full DebateBaroness Taylor of Stevenage
Main Page: Baroness Taylor of Stevenage (Labour - Life peer)Department Debates - View all Baroness Taylor of Stevenage's debates with the Ministry of Housing, Communities and Local Government
(4 months, 1 week ago)
Lords ChamberTo ask His Majesty’s Government what assessment they have made of the impact on the provision of social housing of removing the right of local authorities to retain 100 per cent of receipts from right-to-buy sales.
As a temporary measure, councils were able to keep 100% of the right-to-buy receipts from sales in 2022-23 and 2023-24. As councils have five years to spend these receipts, we are continuing to track the impact of allowing authorities to retain 100% of right-to-buy receipts. As previously announced, the cap on acquisitions funded through right-to-buy receipts is at 50% until 2025-26, to enable councils to do more acquisitions. The Government are working with councils to support their supply and delivery plans, and we are keeping the right-to-buy receipt flexibilities under revie w.
My Lords, with 3.8 million people on council housing waiting lists, some having waited nearly two decades, and with the economic case for social housing comprehensively demonstrated in the recent study by the National Housing Federation and Shelter, showing that building 90,000 social homes would add £51 billion to the economy, the need for delivery of more social homes gets more urgent by the day. Since the right-to-buy programme started in 1980, there has been a reduction in the number of social homes by 1.5 million. Some 40% of those homes are now let privately, and councils have no choice but to use them as expensive temporary accommodation for homeless families. That has pushed up the housing benefit since 1991 from £9 billion to £29.6 billion. Councils should be able to use the proceeds from right to buy to deliver like-for-like replacements, but with councils able to receive £100,000 of discount, that is difficult enough. Taking away the ability to retain 100% is another blow. Does the Minister not consider that this is an economically illiterate move, depriving people of the homes they need and driving the benefit bill ever upwards?
I draw the House’s attention to the fact that the right-to-buy receipt is only one very small portion of the entire receipts that are available to deliver affordable housing. Indeed, the £11.5 billion affordable homes programme is delivering thousands of affordable homes, including, since 2010, 696,000 new affordable homes, with over 172,600 homes available for social rent.