Affordable Housing

Baroness Warwick of Undercliffe Excerpts

Thursday 25th June 2015 Lords Chamber

[Baroness Warwick of Undercliffe (Lab)]

I thank my noble friend Lord Whitty for enabling this debate, and for his powerful opening speech. I declare my interest as incoming chair of the National Housing Federation.

The Government are committed to increasing the number of affordable homes so desperately needed in this country. Prior to the election, the Conservative Party said that it would place affordable homes at the heart of its plans for home ownership by building 275,000 of them by the end of this Parliament. As I understand it, these are in addition to the 200,000 starter homes available at a discount for first-time buyers under 40, and I hope that the Minister will confirm that. The Prime Minister seemed to invoke the spirit of Harold Macmillan when he talked about housebuilding on the steps of No. 10 on 8 May. I applaud his aim and look forward, in my role at the National Housing Federation, to supporting it.

Everyone in this debate has stressed the importance of a healthy supply of homes of all types, for people of all incomes to buy and rent, in all the different housing markets. A home is where we feel secure as children, can develop as teenagers and are able to support our own families as adults. It is a foundation for success in life. It must not become the preserve of those and only those who can pay. For many people now, not just those on low incomes, that kind of home is not possible without access to affordable housing. We need 80,000 affordable homes every year in this country; that is 80,000 families who need that security to prosper.

The need for affordable housing in Victorian times led to the creation of housing associations. Today, they still house those on low incomes and they can deliver even more of the homes Britain needs, given the right conditions. Their founding principle is that everyone should have a home that is right for them at a price they can afford. That is why they also build homes for people to buy and rent on the open market and homes for shared ownership: to help those who need a bit of extra support to get on the housing ladder. It is a principle that has provided 2.5 million homes to 5 million people and investment in a diverse range of neighbourhood projects. It is a principle that delivers for tenants and the economy too: housing associations directly support almost 150,000 full-time jobs and add nearly £14 billion to the economy every year.

As I have learnt about the sector, I have been surprised by the different types of homes that housing associations provide and impressed with the sector’s ambitious vision to do so much more. Last year, housing associations built approximately 38,500 affordable homes. By 2033, they want to scale that up to 120,000 of the 245,000 homes the country needs every year. Of these, 80,000 would be available at affordable rates. Associations would be housing one in every five people. This would add £70 billion and 170,000 jobs to the economy, representing incredible value for money.

But housing associations do so much more than this. I have been impressed by the ways in which they help to create strong vibrant communities. A secure, safe and stable home is a starting point, but there are many other factors beyond bricks and mortar that people need to succeed in their lives. They need access to jobs, education and health services, and tenants living in affordable homes provided by a housing association will find an open door to many of these services. For example, housing associations have a strong track record of supporting their tenants into work by offering employment and skills support. They have invested their own resources to provide these, together with programmes to aid money management and digital inclusion. They do this so that their tenants can overcome barriers to finding gainful and fulfilling employment.

We have talked a lot in this House about apprenticeships. Housing associations had a target to hire 10,000 apprentices by 2015. They beat that target, and a year early. The Government plan to create 3 million apprenticeships by 2020 and to extend to more people greater opportunity and the security of a pay packet. We welcome the opportunity to work with the Government as delivery partners in this work.

Housing associations also provide health, care and support services, allowing older people and people with complex needs to live independently. This is excellent news for our NHS, as an integrated approach to health and housing can reduce the number of acute interventions and help to reduce pressure on hospitals. Most importantly, it can help to keep people where they most want to be: at home. The sector attracts £6 more from private sources for every public £1 invested. It would be hard to disagree that this is one of the most successful and consistent public-private sector partnerships in recent history.

The noble Lord, Lord Best, and others raised the issue of right to buy. I hope that the Government will balance what they want to achieve with the right to buy scheme and its proposed welfare cuts, both of which will have a major impact on this sector and the people it serves, against what it will lose in the provision of affordable homes, successful communities and support into work.

The sector is full of passionate, energetic and, yes, commercially astute people who want to build homes and communities. I have no doubt that it will achieve its vision, but if the Government were also able to make the right investments, cut red tape and improve access to land, housing associations would achieve even more. I am an extremely proud advocate for the sector and I would certainly welcome an opportunity to talk in more detail about how the Government could help housing associations to reach their potential to end the housing crisis once and for all.