Housing: Private Renters

Baroness Wheatcroft Excerpts

Wednesday 22nd June 2022 Lords Chamber

[Lord Greenhalgh (Con)]

That is a very reasonable point. In a sense, we have to recognise that the world is changing and that there are opportunities to build more homes. We see that in the urban setting, where retail will diminish; people are buying online far more than before. Equally, I talk to my friends who live in the country—I am a city guy—who say that there are also agricultural areas that could easily be rezoned to provide opportunities for growth. We need to look at that, and that is why we are bringing forward the Levelling-up and Regeneration Bill to look at how we reform the planning system so that we get the right use of the right places and grow in the right way.

[Baroness Wheatcroft (CB)]

My Lords, many local authorities borrowed money to invest in commercial property; they were not allowed to borrow money to invest in social housing. I wonder whether the Minister can tell the House how much money those local authorities that invested in commercial property have now lost, and how much they might have bettered themselves and the country had they been able to invest in social housing.

[Lord Greenhalgh (Con)]

My Lords, as someone who was a local authority leader for six years and in local government for 20 years, I know that not all councils invested in commercial property. We have some examples, such as Croydon, that got into that sort of game, but I do not think it was something that most councils did. Most councils have been seeking to get back into the council house building business. In 2018 we removed the cap on the housing revenue account, and I think it is great that this generation of council leaders are building more council homes for their residents. Proper oversight will ensure that the sorts of practices that the noble Baroness mentions are kept to the absolute minimum. If necessary, we will move in to take over control if it gets really bad.