Housing (Right to Buy) (Limits on Discount) (England) Order 2024

Earl of Effingham Excerpts

Tuesday 10th December 2024 Lords Chamber

Moved by

[The Earl of Effingham]

That this House regrets that the Housing (Right to Buy) (Limits on Discount) (England) Order 2024 (SI 2024/1073), laid before the House on 30 October, will reduce the number of social tenants who can purchase their property, undermine home ownership and cut new house building.

Relevant document: 7th Report from the Secondary Legislation Scrutiny Committee (special attention drawn to the instrument).

[The Earl of Effingham (Con)]

My Lords, this statutory instrument will reduce the number of qualifying secure tenants who have the opportunity to buy their rented home at a discount. This will reverse our record in the period 2012 to 2024, which enabled almost 160,000 sales under the right-to-buy scheme. On our watch, the right-to-buy discount was incrementally increased. In 2012, the maximum cash discount went up significantly from regional levels of between £16,000 and £38,000 to a new national level of £75,000. In 2013, the maximum was propelled further in London to £100,000, and from 2014 the maximum discounts rose annually, in line with the percentage change in the consumer prices index. The current maximum discounts available are £136,400 in London and £102,400 outside London.

Our aim is to move towards a scenario where people own their own home and are less reliant on local authorities. Being able to buy your own home is a critical feature of social mobility. It allows people to acquire an asset which translates into wealth, which can then be passed on to the next generation, which in turn gives more opportunities in life. The Government have cut the maximum discount to between £16,000 and £38,000, which means that secure tenants of local authorities who want to buy their home will have to pay materially more for their property.

The Ministry of Housing, Communities and Local Government has released a policy paper on the review of the right-to-buy discounts which showed that sales will be reduced by 25,000 over five years. By the department’s modelling, under the previous Government’s rules 35,000 people would be able to buy their social housing by 2029, but under this Government’s new rules that figure would only be 8,500. That means that 26,500 people will potentially miss out. The Government’s own modelling has shown that there would be 7,000 sales annually to 2031 if our rules were kept. However, that number will shrink to 1,700 per year under this Administration’s new rules. That means an average of 5,300 people per year will not be able to buy their home under the new restrictions.

The Government are clearly looking to create an environment where the local authorities are able to channel a larger proportion of receipts from social housing sales into building new social housing. In July 2024, the Government increased the flexibility on how councils can use their right-to-buy receipts to accelerate the delivery of replacement homes. The caps on the percentage of replacements delivered as acquisitions, and the percentage cost of a replacement home that can be funded using right-to-buy receipts, have been removed. Local authorities can now combine right-to-buy receipts with Section 106 contributions. We understand that these flexibilities will be in place until the end of 2026, subject to a review. Furthermore, the Government in the Autumn Budget stated that councils will no longer be required to return a proportion of the capital receipts generated by the sale of the home to His Majesty’s Treasury.

We appreciate that the Government are looking for ways to build more affordable housing. However, we do not think that this should be achieved at the expense of aspiring home owners who are saving to purchase the home they have lived in for, in many cases, a considerable amount of time.

The Government believe that fewer social houses in local authorities is indicative of a problem. We would argue that creating a system that results in an ever-increasing number of social homes on the local authorities’ books is unsustainable. To clarify, we absolutely must make provision for the most economically vulnerable and in need, so that come rain or shine they have a roof over their heads. But the endgame should be to help people stand on their own two feet, independent in their own home, which they themselves have purchased. I beg to move.

[Lord Shipley (LD)]

My Lords, I declare that I am a vice-president of the Local Government Association. Back in 1980, when the right to buy was brought in, I was in favour of it in principle, because it devolved power and responsibility from the state to the individual. It seemed to me that it would lead to greater investment in homes if more private cash was spent on upgrading the country’s housing stock. I did not support selling off social housing without any replacement, always urging for one-for-one one replacement. But that never happened, and worse, around 40% of those homes sold ended up in the private rented sector, with higher rents pushing up the housing benefit bill.

Paragraph 5.5 of the Explanatory Memorandum is very clear in its explanation of this statutory instrument. It says:

“The Government’s objective is a fair and sustainable right to buy scheme that protects existing social housing stock whilst ensuring that secure tenants who have lived in, and paid rent on their homes for many years, retain the opportunity to own their home. This statutory instrument will directly support that objective”.


The two key words seem to me to be “fair” and “sustainable”. It is fair that those who have paid rent for many years should be able to benefit from their rent being seen as a form of deposit, and this statutory instrument will still enable them to do so.

Back in 1980, it was only fair that council tenants of long standing should not be excluded from the benefits of inflation on the capital asset they were renting. But the situation is very different today. Discounts have got bigger. Housing for social rent has been neglected. There is a massive affordability crisis in buying a home for those on lower incomes as prices have continued to rise steeply. Yet rented housing—private or public—is nowhere near enough to meet demand from those unable to buy, and more people than ever are homeless.

It is inappropriate to allow the current right-to-buy system to continue without amendment. Indeed, in Scotland and Wales, right to buy has been scrapped altogether. That is not what the Government are doing in England. They are cancelling the possibility of extending the right to buy to housing association tenants, but the right to acquire, which has a lower level of benefit, will continue to be available.

--- Later in debate ---

We had an extensive debate on housing in your Lordships’ House just last Thursday, when there was broad agreement across the House that we needed a generational change in the delivery of housing to meet the aspirations of a generation that has been locked out of housing. For some, that aspiration is owning your own home; for them, we will be introducing a mortgage guarantee scheme. For many others, that aspiration is secure social housing. Our Government are focused on both.

[The Earl of Effingham (Con)]

My Lords, I want to thank all noble Lords who have contributed to this debate, as well as the Minister for her feedback.

As she mentioned, just three business days ago, we debated housing supply and homelessness in your Lordships’ House. Please let me briefly flag some valuable and relevant contributions from that debate.

The noble Baroness, Lady Smith of Llanfaes, said that young people tell her that

“they fear they will never own their own home”.—[Official Report, 5/12/24; col. 1330.]

The noble Lord, Lord Snape, added that

“it is unfair, particularly on the younger generation, that house ownership has become so difficult”.—[Official Report, 5/12/24; col. 1336.]

I agree with the noble Baroness, Lady Smith, and the noble Lord, Lord Snape. I believe that this SI makes it much more challenging for everyone, both young and old, to get on the housing ladder and benefit from property ownership, creating not a house but a home that is their own. On that, I would like to test the opinion of the House.

Housing Supply and Homelessness

Earl of Effingham Excerpts

Thursday 5th December 2024 Lords Chamber

[The Earl of Effingham (Con)]

My Lords, I thank the noble Baroness, Lady Warwick, for her success in the ballot to obtain this debate. It is also an honour and a privilege to be closing after the valedictory speech of the most reverend Primate the Archbishop of Canterbury. The fact that he chose this debate to be his last tells us a great deal about his values and his care for those in need. I believe I speak for these Benches and the whole House when I say that we wish him well for the future.

Home is where the heart is. A home is something we all need, and we should have grave concerns that we are a nation where not everyone has their own home. Homelessness should have no place in this country, and we must do everything we can to help those in need. But homelessness is a complex issue with a wide range of underlying causes and contributing factors. There is no one silver bullet. The causes and contributing factors are numerous, including affordability and population growth pressure, but there are also more personal and tangential causes of homelessness, including mental health crisis, domestic abuse and relationship breakdown. It is therefore crucial that any policy proposed to tackle homelessness targets its multiple root causes if it is to have any chance of success.

Supporting people through a mental health crisis is an immensely challenging task and we pay tribute to our phenomenal NHS staff, who care for people when they need it the most. In their times of crisis, our NHS steps up and delivers to the absolute best of its ability. The NHS Long Term Workforce Plan from 2023 set out an ambition to increase training places for mental health nursing by 93% to over 11,000 places by 2032, starting with an increase of 38% by 2029. Furthermore, the NHS Long Term Plan included targets to expand NHS talking therapies, perinatal mental health support and 24/7 crisis services.

Unfortunately, veterans of our amazing Armed Forces are particularly vulnerable to mental health issues. It is a cruel price that they pay for keeping us all safe during times of geopolitical unrest and danger. In March 2021, we announced the Op Courage service, creating a single point to access mental health services and support for veterans. This includes support to recognise and treat early to advanced mental health problems and substance misuse and addictions. Op Courage also liaises with other organisations to address wider well-being needs and support Armed Forces families affected by mental health problems. As of June 2024, Op Courage was actively supporting 2,700 veterans.

Nobody should have to choose between facing abuse and sleeping on the streets. In government, we allocated an additional £2 million to help people fleeing domestic abuse. This includes a one-off payment of up to £500 to give those without the means the ability to leave their abusers. This payment is to help cover the cost of essentials, such as groceries or baby care, or be put towards new accommodation for themselves and their children.

Victims can also apply for a further one-off payment of up to £2,500 to help secure a sustainable independent future, such as by putting down a deposit for rental accommodation. This helps people move on with their lives and goes some way to preventing homelessness or the pressure to return to abusers because of financial strain. We very much hope that His Majesty’s Government will continue this support along with universal credit, the simplified system that we introduced through which people can claim assistance for a range of challenges, including support with housing costs due to relationship breakdown and related issues, which are unfortunately another cause of homelessness.

We understood that building more quality housing in the places where it was needed most was one of the best ways to reduce homelessness. Indeed, 2.5 million homes have been built by Conservative Governments since 2010; over a million were built in the last Parliament. We appreciated that putting more money in people’s pockets was another essential way to prevent that homelessness. Almost half of the homes in England are now in energy efficiency band C, up from just one in seven in 2010. This has the direct result that people need to spend less of their hard-earned money on heating and utility bills.

Reducing barriers to entry into the property market is another step that we took. Stamp duty was reduced to zero for properties under £250,000 or up to £425,000 for first-time buyers. This move saved aspiring homeowners thousands of pounds, helping them to buy a house and create their own home. We also brought forward Awaab’s law, ensuring that social housing tenants are not forced to reside in properties which are dangerous to their health to avoid homelessness.

Going forward, new homes must be affordable, must not do unreasonable damage to the local environment, must be built where they are most needed, must be adequately looked after by public services and must have proper means of transportation. None of this is easy, but all these requirements are essential. According to Nationwide, the price of a typical UK home rose by 3.7% last month versus the previous year. As house prices continue to rise, the Government must take urgent steps to ensure that the most vulnerable and in need are not excluded from the dream of owning their own home.

Council leaders say that the cost of temporary accommodation is now the greatest threat to district and borough councils’ budgets, and indeed to their very existence. The Government must build thousands more social or affordable housing units. Is the Minister still committing to building 1.5 million new homes by 2029? Can she inform the House—she should have the data—how many homes have been completed this year and how many will be started this year? Do we have enough electricians, plumbers, bricklayers and roofers to build 300,000 new homes every year? Research suggests that we do not.

Everyone wants to end homelessness, and His Majesty’s Official Opposition will work tirelessly with the Government to bring this about. But achieving such an incredibly important goal will require policy that is sensible and well thought out. We need action, we need to start building yesterday and we need to address the other root causes of homelessness as a top priority.

Gypsy and Traveller Communities: Accommodation

Earl of Effingham Excerpts

Wednesday 6th November 2024 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

The noble Baroness makes a very important point. I will look at the National Policy Planning Framework when it comes out to see what guidance is provided. Other noble Lords have raised the issue of how this will be enacted. It is very important that local planning authorities demonstrate an up-to-date, five-year supply of deliverable sites. The planning policy for Traveller sites states that this should be a significant material consideration in any subsequent planning decision, so there will be enforcement powers to support the delivery of those sites as set out in planning guidance.

[The Earl of Effingham (Con)]

My Lords, there are many different peoples within the Traveller community with a diverse range of cultural traditions. How do the Government intend to adequately serve this wide range of cultures when providing accommodation?

[Baroness Taylor of Stevenage (Lab)]

I thank the noble Lord for his question. The key to all this is consultation and engagement with the communities. There has just been a significant report called Kicking the Can Down the Road. When we read the many changes that have been enacted in provisions for Gypsies and Travellers, it is more than clear that we need to fully engage with a wide range of those in the Gypsy and Traveller community so that we understand what their needs are and make sure they accounted for, not just in the planning process but in all public services.

Holocaust Memorial Bill

Earl of Effingham Excerpts

2nd reading
Wednesday 4th September 2024 Lords Chamber

[The Earl of Effingham (Con)]

My Lords, it is a huge honour and privilege to be standing here before you today at the Dispatch Box. It is something I do not take lightly, and I will endeavour, as I have always done, to add value wherever possible. I am also very aware that this Bill has both supporters and opponents from all sides of the House. The subject matter at hand is an emotive topic which should be treated with the utmost care and the respect that it deserves, with many significant considerations to be discussed.

It is almost 11 years to this day that my noble friend Lord Cameron of Chipping Norton spoke at the Holocaust Educational Trust and sowed the seeds to ensure Britain has a permanent and fitting memorial, with an educational resource for generations to come. His Majesty’s Official Opposition are supportive of the Bill but there are several areas which require detailed scrutiny.

The chair of the Jewish Leadership Council was tasked back in 2013 with assembling a commission, representing our whole society, to research and investigate such a memorial, its feedback several years later being that there should be a striking and prominent new national memorial co-located with a world-class learning centre. During the Victoria Tower Gardens planning consent legal action of 2022, all parties involved in the action supported the principle of a compelling memorial to the victims of the Holocaust, with a separate report evidencing widespread dissatisfaction with the existing national Holocaust monument and available educational resources. The Board of Deputies of British Jews has openly said that it supports the proposed memorial and learning centre.

This Holocaust memorial centre will stand as a testament to the horror of the Holocaust, and the learning centre will educate future generations, so that it may never happen again. It is clear that we must proceed with haste. The memorial that everyone agrees should be created has been 11 years in the offing, and the need for progress on building the memorial and learning centre has never been more urgent. Many survivors are no longer with us and those who remain, and who want to, should be part of our renewed vow to remember the Holocaust.

We appreciate that noble Lords’ concerns lie around the proposed location of the memorial, but we also hear the words of the Chief Rabbi in the UK, who has described the choice of venue as “inspirational”, saying that it

“is a most wonderful location because it is in a prime place of … prominence … at the heart of our democracy”.

The most reverend Primate the Archbishop of Canterbury suggested:

“The proposal for a Holocaust Memorial with a Learning Centre by the Houses of Parliament and across the river from Lambeth Palace provides a symbolic opportunity to present the full story to new generations”,


while the executive director at the Centre for Holocaust Education at UCL agreed that the memorial and learning centre should be in a place of immense importance. Locating it directly adjacent to the iconic Houses of Parliament therefore has an irresistible appeal.

That being said, a number of key issues remain and we seek clarification from the Minister. The park is a wonderful open space right next to the Palace of Westminster. I have been there myself; the view of the Palace is spectacular. It is clearly used by both locals and tourists alike. It is therefore of paramount importance that it should continue to serve this purpose in addition to its role as the location for the memorial and learning centre. What guarantees can the Government give the House that the current enjoyment of the park will continue in the same way post construction?

The architects’ plans state that there will be

“a subtle grass landform with only the tips of the Memorial’s fins bristling in the distance”,

with government estimates of an 8% occupation of the gardens and a 15% reduction in lawn areas. However, other research suggests that it will be more like 21% of the gardens and 31% of the children’s play area. Can the Minister please confirm exactly what the loss of space is, and why the Government’s calculations are different from others on what should be clear-cut maths? Can he also confirm that, whatever permission is granted, the visual impact on the park as it currently stands will be minimised?

Underground, in the learning centre itself, how will the Government ensure that this is actually a world-class learning centre? Who will decide the content within? Is there a current plan for what it will contain?

We have many beautiful buildings in our country, and the listed building laws aim to protect them for future generations. How will the Government manage the process of respecting and maintaining the statutes of Emmeline Pankhurst and the Burghers of Calais, and the Buxton memorial fountain, which are all listed and in place in Victoria Tower Gardens?

On construction, one could be forgiven for thinking that there are roadworks all over the capital. What assessment have the Government made of the disruption to traffic flow in the area, given that the project is estimated to take up to three years to complete and is on a major thoroughfare through the city?

We are all too aware of security issues and protests around the Palace. How will the Government manage the increased footfall in the area as a result of the memorial? Will there be additional measures in place to protect the public from any potential disruption, as well as the Palace itself given its close proximity?

Finally, what assessment have the Government made of the cost to both build the centre and maintain it? Raw material prices continue to spiral, as do labour costs. What are the Government doing to mitigate these risks? Assuming that the Bill passes, how soon will the Government commit to kicking off the relevant work to deliver on the memorial and learning centre while at the same time providing value, given that delays will only increase expenditure?

I hope we can achieve an outcome that produces a world-class memorial and learning centre, while at the same time respecting and preserving the beautiful space of Victoria Tower Gardens, so that everyone benefits and feels like they are getting a good deal.