Housing Supply and Homelessness

Baroness Taylor of Stevenage Excerpts

Thursday 5th December 2024 Lords Chamber

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)]

My Lords, I am very pleased to respond for the Government on such an important issue. I grew up in social housing and I was very proud of my new-town pioneer parents who allowed me to do so—that was the housing of the 1950s and 1960s, referred to by my noble friend Lord Snape. I have campaigned on housing in general and social housing in particular for over 30 years, and this is the first Government I have known, in all that time, to show the level of ambition that we need. I thank my noble friend Lady Warwick for her ongoing work on housing and homelessness and for leading this debate today with her extremely powerful and thorough speech. One thing she said was that the facts are truly shocking, and shocking they really are.

It has been a great privilege to listen and respond to a debate in which the most reverend Primate the Archbishop of Canterbury gave his valedictory speech. He was present at one of the most terrifying experiences I have had since I joined this House. He has been a great champion of housing, as many noble Lords have said, and introduced the Homes for All report, which had a good launch in your Lordships’ House. I thought I was just going to attend, but I arrived to find my noble friend Lady Warwick asking me whether I would speak. As I walked into the room, he was already speaking and I had to quickly gather my thoughts together and make a speech there and then.

The most reverend Primate has done such fantastic work. His deep and thorough knowledge of the banking system from his earlier career enabled him to speak out powerfully in 2013 against payday lending, which was a great passion of mine as well. He launched a campaign in favour of credit unions as an alternative. The annual Archbishop’s debate, under his watchful eye, has seen him raise the following areas: banking standards, soft power, reconciliation, education, British values, housing, freedom of speech, migration and families. His book Reimagining Britain, published in 2018, set out his thoughts on areas for specific social change and reform, including social care, housing and families—issues on which he and the most reverend Primate the Archbishop of York founded policy commissions.

The most reverend Primate also has extensive knowledge of overseas issues through his travel around different countries and has made informed contributions in debates on foreign policy, including on Sudan, Afghanistan and Israel and Gaza.

Of course, in the 12 years that the most reverend Primate has been the Archbishop of Canterbury, he has offered spiritual counsel to six Prime Ministers and overseen many significant royal events, presiding at the Coronation of His Majesty King Charles III and delivering the sermon at the funeral of the late Queen Elizabeth II. He has also baptised Prince George, Princess Charlotte and Prince Louis, and married Prince Harry and Meghan at Windsor in 2018.

During his great speech on housing this afternoon, the most reverend Primate spoke about affordability, which I will come to later. He also spoke about community and building places for people, a topic that is very close to my heart in terms of planning. I thank him for the way that he has steered the Church Commissioners, if it is possible to steer them—he says no; I thought that was probably the case—because I believe there are extraordinary opportunities now regarding Church land. The Government welcome the opportunity to have that dialogue with the Church Commissioners.

There is no doubt in my mind that in my parish, as elsewhere in the Church, safeguarding is infinitely better than it was before his time as Archbishop. While we understand his very honourable reasons for resignation, I know that this House and the Church will miss him greatly. I can do no better than to quote his own words back to him:

“People of loving service are rare in any walk of life. Leaders of loving service are still rarer. But in all cases those who serve will be loved and remembered when those who cling to power and privileges are long forgotten”.


I thank him.

I turn back now to the important issues of our debate. The causes of England’s housing crisis are multiple, as so many noble Lords have pointed out, but among the most important is our failure to build enough homes for decades. We see the impact of this in rising rents and housing costs, with 35% of private renters and 43% of social renters living in poverty after they have met their housing costs. There are, as many noble Lords mentioned, 1.3 million people languishing on social housing waiting lists, while millions of low-income households are forced into insecure, unaffordable and, far too often, substandard private rented housing. We know that homelessness can have a devastating impact on those affected. At the sharpest end of the crisis are the 123,000 households, including a record 159,000 children, in temporary accommodation. This is unacceptable. Everyone should have access to a safe, decent, affordable and secure home.

The sheer scale of the housing crisis demands a radical response. That is why this Government have committed to delivering 1.5 million homes in this Parliament, including the biggest increase in social and affordable housebuilding in a generation. It is why we are committed to a new generation of new towns, and it is why we will get back on track in Britain by ending homelessness. Both my noble friend Lady Warwick and the noble Lord, Lord Shipley, spoke about homelessness. I will speak in more detail on homelessness later on, but it is why we will produce a long-term housing strategy in spring 2025. We know that addressing these issues will take some time, but we have taken the first decisive steps and are committed to taking the long-term action needed to tackle the scale of the challenge we face and to get Britain building.

I assure the noble Baroness, Lady Thornhill, of both my and the Secretary of State’s intention to create a revolution in social housing. The noble Baroness made the point that I often make: we must stop conflating the terms “affordable” and “social” housing. They are different things. We will be asking local planning authorities to consider the tenure of the homes that they are allocating as part of their planning processes.

I am grateful for the support of the noble Earl, Lord Effingham, for the work we are doing, but the housing crisis we inherited has given us an enormous task to tackle. He raised the issue of capacity for building in the system. I answered that in my response to an Oral Question earlier today, but there is a great deal of work going on to build that capacity and we are very grateful that the industry itself has produced £140 million to help start tackling the skills crisis.

I thank my noble friends Lady Warwick and Lord Hain, the noble Lords, Lord Best, Lord Young, Lord Shipley and Lord Hollick, and the noble Baroness, Lady Grender, for comments and questions on housebuilding and housing supply. We know that our commitment to building 1.5 million homes is an ambitious one, but we are already taking action to ensure we can deliver it. Only historic levels of housebuilding can begin to drive the changes we need to see. We have already announced the new homes accelerator to unblock stalled housing sites and have committed to a new generation of new towns.

A critical part of that building is reforming our planning system, which too often holds back development. We have already taken steps towards reversing the damaging changes to the National Planning Policy Framework that had undermined our growth ambitions. We aim to publish the new framework by the end of this year. I am told that that will be before the Christmas Recess, so let us keep our fingers crossed. It will include updating the standard method, reintroducing mandatory targets, releasing more green and grey belt land, where it meets our golden rules, and seeking views on a “brownfield passport” to ensure development on brownfield sites is straightforward to approve.

We are also giving local authorities the capacity support they need to drive forward the delivery of new homes. At the recent Budget, we announced over £50 million of new spending to expedite the planning process by recruiting an additional 300 planners and boosting local planning authority capacity to deliver the Government’s wider planning reform agenda. Next year, we will introduce a planning and infrastructure Bill, which will play a key role in promoting economic growth, unlocking a new scale of delivery for both housing and infrastructure across the country.

Alongside reform of the planning system, we must also see reform in the market. The current speculative development model, referred to by many noble Lords, dominated by a few big builders, has led to slow build-out and lack of competition. We will support SMEs, work with industry to grow mixed tenure models and ensure we have the right skills and supply chains. I know the Secretary of State has already spoken to Homes England to request that it breaks down some of its developments into smaller packages that are suitable for SMEs. At the Budget, we provided an additional £3 billion of support for SMEs and the build-to-rent sector in the form of housing guarantee schemes, allowing developers to access lower-cost loans and support the delivery of tens of thousands of new homes.

Our commitment to delivering the biggest increase in social and affordable housebuilding in a generation is a critical part of our housebuilding strategy. At the Budget, we made a down payment of £500 million to the affordable homes programme in 2025-26, increasing the annual budget to £3.1 billion, the biggest annual budget for affordable housing in over a decade. We will go further, with details of new investment to succeed the 2021-26 affordable homes programme to be provided at the spending review.

Alongside our direct investment to build new homes, the Government have launched a consultation on a new long-term social housing rent settlement of CPI plus 1% for five years. That will give the sector the confidence to build tens of thousands of new social homes. We are reducing maximum right-to-buy cash discounts to pre-2012 levels, allowing councils to keep 100% of the receipts generated by right-to-buy sales. That should ensure that we are investing in new supply to replace the stock sold—something that, in my humble opinion, should have been done right from the start of the right-to-buy programme.

I am afraid I just do not agree with the assertion of the noble Baroness, Lady Bennett, that we intend to put quantity before quality, that we are ignoring the importance of community and place making or that we are not providing for diverse needs. This Government’s reform of the planning system, reforms to private renting and leasehold, remediation acceleration action plans, the future homes standard, et cetera, are part of what we are doing to just get on with the job.

I turn now to some of the specific points made by noble Lords. I am sure I will not get to all of them in the few minutes I have left, but I will try to cover as many as I can. I think I have covered the points on housing supply. Key points were made by my noble friend Lady Warwick, the noble Lords, Lord Shipley, Lord Young, Lord Best and Lord Jamieson. The Government have already taken swift action to kick-start the delivery of the 1.5 million homes, including the NPPF consultation, the accelerator and the new towns task force. We are seeking views now on a “brownfield passport” to ensure that suitable projects get swift and straightforward approval for development. We are working together with industry, including housing associations, local authorities and developers, to unlock economic growth and give the country the homes it needs. Working with mayors and councils across the country, we have set up a dedicated interministerial group, which the Deputy Prime Minister chairs, bringing together Ministers from across government to develop a long-term strategy that will put us back on track to end homelessness.

The most reverend Primate the Archbishop of Canterbury spoke powerfully about the affordability of homes, and that is a key issue for us. Our work in tackling the housing needs of the country includes making housing more affordable for all. The most sustainable long-term method of achieving that is to help people into home ownership and increase the supply of housing generally; that is why we will deliver the biggest increase in social and affordable housing. However, we recognise that new supply alone will not address the issues of affordability that face us today, and that is why we are strengthening rights for those in the private rented sector. In addition to increasing the supply of new homes of all tenures, the Government are committed to helping more people into home ownership by introducing a permanent, comprehensive mortgage guarantee scheme, and to giving first-time buyers the first chance at new home developments.

My noble friend Lady Warwick and the noble Lord, Lord Young, raised the issue of the planning reforms that are taking place. Local plans will have to identify specific housing for special needs, such as supported housing, and the package announced in the Autumn Budget is the next step. To meet these planning requirements, we will provide billions in government support and certainty for investors. I am hopeful that the new National Planning Policy Framework, which will be published shortly, will have the potential to deliver the uplift in housebuilding that we need.

On social and affordable housing, points were raised by my noble friends Lord Hain and Lady Warwick, and the noble Lord, Lord Shipley, who gave out the killer fact of 2 million homes being sold under right-to-buy, which is a shocker—it would not have been, of course, if they had been replaced, and that is the point. The Government want everyone to have a place to call home and are taking the necessary steps to fix the economy so we can get on with building. We have introduced the changes to planning policy and have set out the details of an immediate one-year cash injection of £500 million to top up the affordable homes programme, which will deliver up to 5,000 new social and affordable homes.

On social housing targets, the noble Lord, Lord Hollick, referred to the commission on social housing. Many of the points raised by the commission have already been considered by the Government and steps are being put in place to tackle the issues it raised, and we are very grateful for the commission’s work.

My noble friend Lord Hain and the noble Baroness, Lady Grender, made points on the right to buy. I have already set out the Government’s plans to change right-to-buy. It is an integral way for social tenants to get on the property ladder, but the point is that councils are losing homes to right-to-buy more quickly than they can be replaced. We are also looking at removing discounts for new homes, so, when a new home is built, there has to be a period of time before it qualifies for right-to-buy.

There were some very powerful contributions to this debate on homelessness, and I am very grateful to all those who made them: my noble friend Lady Warwick; my noble friend Lord Griffiths, who gave a powerful personal testimony on homelessness; the right reverend Prelate the Bishop of St Albans, who spoke about rural homelessness; and the noble Baroness, Lady Grender, and the noble Lord, Lord Hardie. I say to the right reverend Prelate that we do want to encourage rural exception sites and we will be looking more closely at that. The housing strategy is not in draft yet, but it will come out in the new year. I am sure that the point that he made about it having specific issues in it on rural housing will be taken on board, so I thank him very much for making that point.

There is no doubt that homeless levels are far too high, and that this has a devastating impact on all those affected. We want to take a long-term approach to this, working with mayors and councils across the country. That interministerial group which the Deputy Prime Minister chairs will bring together Ministers from across government to put us on track to ending homelessness. We have put in additional funding of £233 million for this for next year, and that increased spending will help prevent rises in the number of families in temporary accommodation. Not only is it a tragedy for those families in terms of their family life, but it puts a huge burden on local authorities, as we have heard.

We are also tackling the root causes of homelessness, which is the delivery of further housing. With the introduction of the Renters’ Rights Bill to Parliament, we will abolish Section 21 no-fault evictions, preventing private renters being exploited and discriminated against. In my experience as a councillor, Section 21 was one of the biggest causes of homelessness, so we need to get rid of it as quickly as possible.

The noble Earl, Lord Effingham, mentioned the fact that mental health services are very important in dealing with people who find themselves homeless, and I agree. In my own town, we put together a housing-first package which includes support for complex needs. We need to look at areas of good practice and encourage others to participate in those. The noble Earl also spoke about veterans, and I was very pleased to hear the Prime Minister’s announcement on veterans recently.

I knew I would not get through all the points. Great points were made on temporary accommodation, on older people and homelessness and on youth homelessness, and particularly on rough sleeping and poverty from the noble Lord, Lord Bird. I will write to all noble Lords who I have not been able to respond to in the debate. But that is an indication of just what a wide-ranging and thorough debate we have had this afternoon, and I am grateful to all noble Lords who have taken part.

I ask noble Lords to please be assured that our Government are committed to tackling this issue. We have made huge strides since we assumed office, but we will not be able to solve the housing crisis overnight. In the long-term housing strategy and the homelessness strategy, both to be published next year, we will set out our vision for a housing market that works for all, and how we will get back on track to ending homelessness. Together, we will ensure that everyone has a place they can call home. I thank all noble Lords for their support in doing that, and particularly thank my noble friend Lady Warwick for instigating this debate this afternoon.