Affordable Housing: Supply

Baroness Warwick of Undercliffe Excerpts

Thursday 25th April 2024 Lords Chamber

[Baroness Warwick of Undercliffe (Lab)]

My Lords, I am grateful to my noble friend Lord Chandos for tabling this debate. I congratulate the noble Baroness, Lady Smith of Llanfaes, on a powerful and, if I may say so, very feisty speech. I was moved at the sheer amount of responsibility she has had to take on at so young an age, and I look forward very much to hearing more such contributions.

Two events this week highlighted the timeliness and importance of this debate. In the upper waiting-room above Central Lobby, there is an exhibition of photographs of families living in temporary accommodation in the Manchester area. A mum with three kids said, “After I was evicted … the first temporary accommodation was for two years. It is a long time. The school was three miles away. If I was late or the kids could not get there, it looked bad for school reports and stuff”. Another mum said, “When you look at other children, they are able to eat proper meals and things like that. My son has had infection after infection. Since we have moved after the hotels, I have been to A&E just under 15 times”.

The exhibition is well worth seeing. It was organised by the APPG on homelessness. In opening it, Dame Siobhain McDonagh MP urged the need for a long-term solution that crossed social divides and party-politics. That plea was echoed in the second of the two events I referred to, the launch of the Church of England’s report, Homes for All: A Vision for England’s Housing System, which was referred to by my noble friend and by the noble Lord, Lord Best. Echoing the conclusions of other reports, notably from the National Housing Federation and Shelter, the report identified that the housing crisis continues to escalate, perpetuated by a lack of policy stability, ambition and urgency across successive Governments, and a failure to connect the issues through a systematic and co-ordinated approach. The Minister and my noble friend Lady Taylor of Stevenage both spoke eloquently at the event.

It is clear that a change in approach is needed. There are currently over 8 million people in England who cannot access the housing they need. For 4.2 million of these—around 1.6 million households—social rented housing would be the most appropriate tenure to address that need. Our failure to deliver the homes we need is breaking down our communities. It is driving families and key workers into financial hardship, and away from work, schools and support networks.

Some groups of people are feeling this crisis even more acutely. Black, Asian and minority ethnic households, and disabled people, are more likely to experience homelessness or live in poor-quality, unsuitable or overcrowded homes. Women’s Aid points to the lack of affordable housing as a primary barrier to those escaping abuse.

Yet, despite our severe housing emergency, the supply of genuinely affordable housing is falling. Last year, 29,000 social homes were sold or demolished, and fewer than 7,000 were built. Many households are now forced to live in expensive, insecure and often poor-quality homes in the private rented sector.

Most damning of all is the impact of this crisis on children. A record number of children are homeless and are forced to live in inadequate temporary accommodation, including bed and breakfasts. This disrupts their education, affects their life chances and puts huge pressure on families, as the exhibition I referred to so graphically illustrates. Some 138,000 children are currently living in temporary accommodation, and this is estimated to rise to 310,000 by 2045 without government action. These figures are a stark illustration that a radical change in approach is urgently needed.

I hope the Minister will not respond to this debate simply by asserting the work that the Government are doing, a lot of it good, and the number of homes currently being built. Whatever that number, it simply is not enough. I urge the Minister to focus on the key question in her response: how do we increase supply?

For those at the sharp end of the housing crisis, we need to build 90,000 new social homes every year to keep up with demand. In 2010, the amount of grant funding available for new social housing was cut by 63%. The consequences of this decision have been dire. Does the Minister agree that we need a new, long-term and substantial grant programme that can be used more flexibly to deliver new social homes, regenerate and refurbish existing homes and acquire more existing homes where appropriate?

Does the Minister agree that we need bold planning reforms to deliver the highest possible level of affordable housing, incorporating new, large, mixed-tenure communities? My party recently announced proposals to allow grey-belt development, which includes 50% affordable housing. This is a welcome step in the right direction.

Does the Minister agree that government funding and fiscal rules need to be reviewed to incentivise long-term public investment in social housing? I must also ask the Minister to comment on the need to invest in a skilled workforce if this ambition is to be realised. Does she agree that the Government must ensure that there is resilience within the supply chain and workforce while unlocking innovation in the construction industry, which could include exploring new technology and supporting new methods of delivery?

There are huge economic benefits to be gained. We need to move away from the outdated idea that social housing is a drag on the public purse. In fact, it is a long-term driver of sustainable growth. Every £1 invested in social housing delivers at least double that of wider economic benefits. Recent research from the National Housing Federation and Shelter, carried out by Cebr, showed the positive economic impact of building social housing. These include savings on housing benefit, reduced homelessness, increased employment and improved healthcare.

I have said before in other debates that building social homes that meet local need can offer stability in people’s lives. This helps people to get and keep work, and reduces the long-term scarring effect that being homeless or in temporary housing can have on employment prospects. It also supports children’s education and the mental and physical health of families.

I support the Archbishop of Canterbury’s report in its call for an end to “short-termism” in housing policy and its advocacy for decent homes across England. As the report states, everyone should have a home that is comfortable and safe. Sadly, and to our shame, decades of piecemeal and short-term policy have left us with a failing housing system that is affecting our health and well-being and costing our country billions. It is also holding back our economy and making communities unsustainable.

The housing crisis is a complex problem. It will take long-term political commitment, investment and collaboration across government and with partners across the country. I echo the call from the noble Lord, Lord Best, reflected in the Church of England’s report, for a housing strategy committee, modelled on the Climate Change Committee or the Low Pay Commission, which will hold the Government to account.

Does the Minister agree that, to meet the scale of the challenge we face, there needs to be a comprehensive and policy-led long-term national plan, agreed in its fundamentals across political parties, with the Government in partnership with local authorities and the social housing sector? Perhaps then we can begin to solve this worsening housing crisis.