Social Housing Bill (First sitting)

Gareth Bacon Excerpts

Committee stage
Tuesday 27th October 2026 Public Bill Committees

[Gideon Amos]

It is a pleasure to see you in the Chair, Mr Vickers.

I rise to support the clause. For Liberal Democrats, this is the most important and significant clause in the Bill, as it constrains the selling off of council houses. It is concerning that the Conservatives have tabled an amendment that would essentially reverse it. With 1.32 million people on the housing waiting list and 177,000 children in temporary accommodation, the last thing that we need is to continue the gradual loss of social housing. There has been a net loss of 2 million social homes since the introduction of right to buy. If that does not show that we cannot fill the bath with the plug taken out, nothing does. We stand squarely in support of the clause, although we would go further and give local authorities the ability and power to suspend right to buy completely if that is right for their area so that they can rebuild their stock of council housing and social rent homes.

[Gareth Bacon (Orpington) (Con)]

I echo the Minister’s welcome: it is a pleasure to see you in the Chair, Mr Vickers.

This Bill fails the British people. It effectively destroys right to buy for millions of families. It does nothing to free up stock for British nationals. It fails to introduce efficient stock management regulations. Most egregiously, it fails to build a single social home—a point completely missed by the Government and the Liberal Democrats. In scrutinising the Bill line by line, it is critically important that we defend aspiration and refocus the debate on the delivery of new homes.

I will speak to new clauses 55 and 57 and amendments 84 and 85, in my name. On new clause 55, in the past, Conservative Government-backed schemes such as Help to Buy and stamp duty discounts made a real difference to people buying their first home, and helped about 1 million first-time buyers to get on to the housing ladder. That contributed to 800,000 people buying their first home under the previous Government. However, since 2024 the Government have not shown that they have the aspiration to match that. Instead, they have cut a lot of the products that turbocharged first-time buyers getting on to the housing ladder.

Even when the Government try to support young people into property ownership, it emerges that all that glisters is not gold. I am primarily referring to the Your First Home scheme—a policy limited to new homes and expected to be constrained by income caps. Young people, especially young people in social housing, deserve better than that.

[Deirdre Costigan (Ealing Southall) (Lab)]

The hon. Gentleman mentions Your First Home—the product that the Government announced to get young people on to the housing ladder. Does he agree that the targeted approach of that new idea is in stark contrast to the Conservative Government’s Help to Buy scheme? About half of the people who bought under that scheme were already able to buy a home, and it just allowed them to buy a bigger home, probably in a more affluent area.

[Gareth Bacon]

It rather depends on the detail, but if the income caps that we hear about in the press are even remotely accurate, we can rule out the whole of Greater London and the south-east of England, because people will not be able to access the financing. That would be yet another example of the Government pretending to do something without actually doing it, but we await the detail on that.

Right to buy is not a shameful practice, nor is it an exercise in capitalistic greed. It is a hand up on to the housing ladder for those in need, and an extension in the fundamental rights of property. New clause 55 would help realise that for young people. After all, it is critical that more is done to help young people to buy their first home. They face the greatest barriers to home ownership of any recent generation, and yet the Government’s answer is to cut one of their only routes to property ownership. We believe that that approach is fundamentally wrong, and I urge colleagues to join me in supporting young people by backing new clause 55.

On new clause 57, clause 1 in its current form not only enables the injustice of preventing future hard-working residents from owning their own homes but prevents current tenants from doing so. The Opposition are completely against that retrospective change. The Government have shown time and again that they have no regard for the property rights of individuals. The Government’s socialistic focus has targeted landlords, freeholders and renters, now they turn their gaze towards residents in social homes.

The vast majority of people in social housing deserve a hand up on to the property ladder and a chance to share in the pride of owning their own home. Many people in social housing know that their best chance at getting that is through right to buy.

[Rachel Blake]

On new clause 55, can the hon. Member share the evidence base for his proposal, including the number of tenants aged between 16 and 25? I struggle to believe that the proposal would make any difference in terms of home ownership for people aged between 16 and 25. In fact, it is the long-run shortage of genuinely affordable homes, rental properties and home ownership products that is responsible for young people struggling to get on to the housing ladder.

[Gareth Bacon]

The hon. Lady makes an interesting point, but she does not say how the Government will increase home building. There is no increase in home building. The point of the new clause is to raise awareness of right to buy among 16 to 25-year-olds. The point of the new clause is about aspiration—something this Government have absolutely no idea about. Aspiration turned into opportunity by the Conservative party in the 1980s is being arbitrarily and retrospectively axed by a Bill that offers no other route into the housing market, builds no more social housing and effectively excludes 5 million people from the fundamental right to property ownership.

[Danny Beales (Uxbridge and South Ruislip) (Lab)]

Will the hon. Gentleman give way on that point?

[Gareth Bacon]

I will not give way. I need to make some progress.

That is the least that can be done to support families aspiring to own their own home, whether they find themselves on the cusp of reaching their three-year qualifying period or on day one of the road towards making their home ownership dream a reality.

On amendments 84 and 85, the Bill opens with a statement claiming that its purpose is to make provision about social housing, but clause 1 makes no effort to increase the supply, build-out rates or funding for social housing. Instead, an ideological aversion to property ownership—a fundamental right—takes the top spot at the very beginning of the Bill. Ever since Margaret Thatcher gave millions of people the chance to own their own home, rather than rent it from the state, local authority or a registered provider, Labour MPs have for generations sought to crush that right and the aspiration that it exists to serve.

[Deirdre Costigan]

Will the hon. Member give way?

[Gareth Bacon]

No. More than 2 million households have exercised the right to become homeowners and gain a stake in society. Until 1980, that would have been out of reach for far too many British people, but the Government are determined to wind back the clock to the 1970s and cut off the right for hard-working families up and down the country to own their own home.

Amendments 84 and 85 would take out the extended qualifying period from the day the Bill is passed, thus preventing clause 1 from coming into effect for three years following Royal Assent. That would delay the Government’s dogma and continue to support the right of 5 million people to find their place in the community, and to feel the pride and safety that comes with owning one’s own home.

[Matthew Pennycook]

I thank the hon. Member for Orpington for tabling new clauses 55 and 57 and amendments 84 and 85, and for speaking to them. I should say at the outset that, in political terms, he and I could not be further apart. However, he is a decent and diligent shadow Minister, as is the Liberal Democrat spokesperson, the hon. Member for Taunton and Wellington—I do not want to leave him out. I very much look forward to the robust yet civil debates we will have over the coming sessions.

I do not want to dwell too long on the more general points made by the hon. Member for Orpington, but I think it is worth responding to two of them. We are not extinguishing the right to buy through the Bill. We could have abolished the right to buy outright, but that is not what we are doing. We are ensuring that those who benefit from the scheme are long-standing tenants who have lived in and paid rent on their homes for many years.

In response to the hon. Gentleman’s point about the Bill having no impact on supply, he really ought to get out and speak to local authorities. They tell us that the benefits that they will see from the regulatory certainty and stability that we are providing, as well as the grant funding, will give them the confidence to go out and build new social homes, safe in the knowledge that, thanks to clause 1, they will not be immediately sold off after three years.

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[The Chair]

We come next to clause 7.

[Gareth Bacon]

What about new clause 29?

[The Chair]

New clause 29 was debated with clause 6.

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[Gareth Bacon]

No, it wasn’t. I was not asked to speak.

[The Chair]

You did not bob. I stated the need to do that at the beginning of the sitting.

[Gareth Bacon]

I was not called.

[The Chair]

You did not bob, Gareth. We will move on.

Clause 7

Right of first refusal

Question proposed, That the clause stand part of the Bill.

[The Chair]

I can see no one bobbing, so I will put the Question.

Question put and agreed to.

Clause 7 accordingly ordered to stand part of the Bill.

Clause 8

Exceptions to the Right to Buy

[Gareth Bacon]

I beg to move amendment 90, in clause 8, page 8, leave out from line 2 to end of line 18.

This amendment removes the restriction on those living in National Parks, Areas of Outstanding Natural Beauty, and areas designated as being exempt from Right to Buy.

[The Chair]

With this it will be convenient to discuss the following:

Government amendment 13.

Amendment 104, in clause 8, page 8, line 10, at end insert—

“(1A) Regulations made under subsection (1)(a) above must use the Rural Urban Classification to determine whether an area is rural or urban.”

Amendment 83, in clause 8, page 8, line 25, leave out “35” and insert “10”.

This amendment seeks to reduce the period during which newly built social housing is exempt from the Right to Buy from 35 years to 10 years.

Amendment 9, in clause 8, page 9, line 10, at end insert—

“Community-led housing

20 Irrespective of the provisions of paragraph 18, the right to buy does not arise in relation to a dwelling where—

(a) the dwelling is owned, managed, controlled or on land owned by—

(i) a Community Land Trust;

(ii) a Community Benefit Society;

(iii) a housing co-operative; or

(iv) another community-led housing body prescribed by regulations; and

(b) the dwelling is subject to arrangements intended to secure affordability in perpetuity.”

This amendment seeks to provide a permanent exemption from Right to Buy for community-led housing, instead of the 35-year exemption otherwise provided by the Bill.

Government amendments 14 and 15.

Amendment 91, in clause 8, page 9, leave out lines 41 and 42 and insert—

“(c) may not be made unless a draft of the regulations has been laid before and approved by a resolution of both Houses of Parliament.”

This amendment would require an affirmative parliamentary approval for regulations defining rural exempt from Right to Buy.

Clause stand part.

Government amendments 16 to 18.

New clause 2—Power of local housing authorities to suspend or abolish right to buy—

“Before section 121(A) of the Housing Act 1985 insert—

‘Power of local housing authorities to suspend or abolish right to buy

(1) A local housing authority in England may make a determination that the right to buy does not arise in relation to dwelling-houses in its area.

(2) A determination under subsection (1) may apply to—

(a) all dwelling-houses within the authority’s area, or

(b) dwelling-houses of a description specified in the determination.

(3) The Secretary of State may by regulations make provision about the procedure to be followed by a local housing authority in making a determination under this section.’”

[Gareth Bacon]

It is a pleasure, Mr Vickers, to speak to amendment 90, which stands in my name.

Since 2024, when the Government have raised rural issues, they have often found themselves in trouble. The Opposition were therefore surprised to see the elements of clause 7 giving the Secretary of State the power to decide what is classed as rural housing and to restrict the rights of those deemed to live in rural areas.

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[Gideon Amos]

The hon. Member is quite right. Not only that, but local authorities end up paying over the odds for placing families in temporary accommodation, sometimes in homes that were built as council houses to provide for those families in the first place. Now they are being sublet, sometimes multiple times, to provide that housing.

[Gareth Bacon]

The hon. Gentleman is being very generous with his time. He has made a point that has been made by Members today and on Second Reading: right to buy diminishes the social housing stock. I would agree on paper that it does, but that has to be read in the context, as shown by the House of Lords Library, that right to buy applies only to people in long-term tenancies who have been social tenants for a long time. Some 78% of people living in social housing are on lifetime tenancies. Those properties are not available. They could not be given to anybody else because they are lifetime tenancies. Right to buy is actually providing the receipts to build more social homes for people to live in.

[Rachel Blake]

Will the hon. Gentleman give way?

[Gareth Bacon]

I cannot give way; I am in the middle of an intervention.

[The Chair]

Order. Interventions should be reasonably brief.

[Gareth Bacon]

Stopping people from getting on the housing ladder does not help one bit, because it does not increase the supply, and that point seems to have been missed completely by the Liberal Democrats and by the Government.

[Gideon Amos]

I am somewhat surprised that the Opposition spokesperson has entered into the realm of social housing supply, given the record of the previous Conservative Government. Of course, we need to increase supply as well as saving the stock that has been built with public funds—taxpayer’s money—for the community, rather than giving over discounts, sometimes to the extent of a £70,000 or £80,000 transfer of cash, from the taxpayer into the hands of individual property owners for no good reason.

We need to increase supply. That is why the Liberal Democrats have a target to build 150,000 social rent homes per year. I do not know the hon. Gentleman’s party’s target for the delivery of social housing—they did not build many when they were in government. We need to give local authorities the power and flexibility to decide for themselves whether it is right to continue with right to buy in their areas. If we believe in local communities and local democracy, we should give them the ability to say that right to buy and the loss of more council housing stock is no longer right for their area. I commend new clause 2 to the Committee and urge all Committee members to vote for it.

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[Matthew Pennycook]

I welcome that clarification from the hon. Gentleman.

Amendment 91 would require regulations made under section 37 of the Housing Act 1985, which allows restrictions to be imposed on the disposal of a home in a rural area, to be approved by both Houses before they could come into force. I understand that the intention of the amendment may have been to require the affirmative procedure to designate areas as rural for the purposes of the right to buy. Under self-designation, rural areas will be designated by local authorities instead of by regulations, so no parliamentary procedure will be needed.

The new power to prescribe the criteria will be, as I have said, subject to the negative resolution. In any event, the Government do not accept the premise that the affirmative procedure is required in that instance; there may be a principled point of disagreement on that. The current powers are subject to the negative procedure—that is the existing arrangement—which, in our view, provides an appropriate, proportionate level of parliamentary scrutiny. The powers amended or created by the Bill are also subject to the negative resolution procedure. Requiring the affirmative procedure would add an additional parliamentary step without affecting the substance or effect of the policy. For those reasons, I respectfully ask the shadow Minister, the hon. Member for Orpington, not to press amendment 91.

Amendment 83 would reduce the exemption from the right to buy for newly built social homes from 35 to 10 years. The Government cannot support the amendment. Our starting point is that the exemption should reflect the time needed for rental income to repay the costs of building a new social home. That payback period is generally between 30 and 50 years, depending on the viability of the site. We therefore concluded that 35 years strikes the right balance. It protects councils from losing newly built homes before they have recovered their investment while retaining a route to home ownership for tenants over the longer term. Reducing the exemption to 10 years would not provide sufficient protection and would act in direct contradiction to our commitment to back councils to build again at scale. It would allow homes to be sold long before their development costs have been recovered. A 35-year exemption will give councils the certainty and confidence to build, knowing that new homes will remain available as social housing for a meaningful period. 

New clause 2 was tabled by the hon. Member for Taunton and Wellington. I recognise the concerns that motivated this proposed new clause. However, the Government cannot support a proposal that would allow individual local authorities to suspend or abolish the right to buy in their area. We remain committed to a reformed right to buy that continues to provide long-standing council tenants with a route into home ownership while better protecting social housing stock, and we are reforming the scheme nationally to strike that balance. This new clause would create inconsistent access to that statutory right, with a tenant’s position depending on the local authority in which they live. That would, in effect, create a postcode lottery and make it difficult for tenants to understand whether the right to buy is available to them. 

We believe that the right approach is a consistent national framework, supported by national reforms that better protect council housing stock. That will ensure a fair and consistent offer for council tenants across the country. We also recognise that housing markets vary significantly across England. However, rather than creating different rights in different areas, the Government’s reforms reflect those differences through the discount regime. As I have already set out, discounts are calculated as a percentage of a property’s value and are subject to regional cash caps, helping to ensure that the scheme responds to local property market conditions while maintaining a fair and consistent national entitlement for eligible tenants. 

Amendment 9, which was tabled by the hon. Member for St Ives, has been spoken to by the Liberal Democrat members of the Committee. Again, I recognise the intention behind this amendment. Community-led housing is established to meet local needs and often includes arrangements intended to protect affordability for the long term. This Government have done a huge amount in this area and there is more to come to better support community-led housing. But in our view, the amendment is not necessary in relation to the principal form of community-led housing it identifies. Homes owned by community land trusts and fully mutual housing co-operatives are already outside the right to buy, and for those reasons the amendment would not provide the protection intended, beyond that which already exists. For those reasons, I would respectfully ask that hon. Members withdraw all their amendments, and I commend clause 8 to the Committee.

[Gareth Bacon]

We do not share the Government’s position on this. We will be pressing for a Division on amendment 90. On amendment 83, I understand the point that the Minister made about recouping the cost. However, we believe that that is a convenience for local authorities, not for local people, and we are more interested in local people.

[Deirdre Costigan]

Will the hon. Gentleman give way?

[Gareth Bacon]

No, I will not. I am just summing up. We will press for a Division on amendment 83, because we think that 10 years is more appropriate than 35. On amendment 91, we also disagree with the Government. We think that there should be an affirmative rather than negative procedure for this, so we will also be pressing that to a Division.

Question put, That the amendment be made.

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[Matthew Pennycook]

This simple and straightforward clause ensures that the reforms to the right to buy are applied fairly and consistently. It protects tenants who have already made a valid application by ensuring that applications received by landlords ahead of the reforms coming into force will continue to be subject to the existing rules. That will avoid retrospective changes that could disadvantage applicants partway through the process.

The clause also makes important provision in relation to rural exemptions, which links directly to the reforms in clause 8 and Government amendments 13 to 18. It provides that existing rural designations will continue to have effect after commencement, as if they were made under the new powers introduced by clause 8. That means that there will be no gap in protection for rural areas while the new framework in which local authorities self-designate as rural is implemented.

Together, these provisions ensure a smooth and legally certain transition, protecting both tenants’ rights and the integrity of rural housing protections. Overall, the clause provides legal clarity, fairness and continuity as the reformed right to buy scheme is introduced.

Clause 9, as amended, ordered to stand part of the Bill.

Clause 10

Right to Buy: receipts

[Gareth Bacon]

I beg to move amendment 92, in clause 10, page 10, line 19, leave out “a determination” and insert “regulations”.

This amendment removes the power of the Secretary of State to make a determination, but that changes to the use of capital receipts must be made by regulations instead.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 93, in clause 10, page 10, line 29, leave out “a determination” and insert “regulations”.

This amendment removes the power of the Secretary of State to make a determination, but that changes to the use of capital receipts must be made by regulations instead.

Amendment 94, in clause 10, page 10, line 30, leave out “A determination” and insert “Regulations”.

This amendment removes the power of the Secretary of State to make a determination, but that changes to the use of capital receipts must be made by regulations instead.

Amendment 96, in clause 10, page 10, leave out lines 33 to 40.

This amendment would remove the Secretary of State’s ability to make different provisions in respect of different local authorities and to make retroactive provisions through a determination.

Amendment 97, in clause 10, page 10, line 39, leave out “determination is” and insert “regulations are”.

This amendment removes the power of the Secretary of State to make a determination, but that changes to the use of capital receipts must be made by regulations instead.

Amendment 95, in clause 10, page 10, line 41, leave out from beginning of line to end of line 5 on page 11 and insert—

“(5E) Regulations under this section may not be made unless a draft has been laid before and agreed by both Houses of Parliament.”

Amendment 98, in clause 10, page 11, line 5, at end insert—

“(5F) Before making a determination relating to the use of capital receipts under this section, the Secretary of State must consult local housing authorities.”

This amendment would require consultation before determinations are made on the use of capital receipts.

Clause stand part.

[Gareth Bacon]

The amendments concern the Bill’s proposals for the governance of capital receipts. Under clause 10, the Secretary of State would gain new powers to make significant determinations, including scope to vary provisions between local authorities and to apply determinations retrospectively.

Much like my concern about deciding the definition and scope of “rural”, this is not about firming up an already over-rigid system, but about ensuring that the Bill does not tear away too much power from Parliament and give it to Whitehall. It is only right that Parliament, not unelected civil servants, should decide the criteria for the allocation of capital receipts. That is why we have tabled these amendments, so that a regulatory framework can be established to provide parliamentary oversight and to give confidence and certainty to local authorities. This is an essential change to the Bill, and we will seek to divide the Committee on it.

As it stands, leaving determinations to the whim of the Secretary of State means leaving local leaders unsure of the direction of future decisions. It undermines precedent and destabilises already fragile funding requirements. The amendments replace the proposed determinations with clear and unequivocal guidance, with amendment 95 specifically ensuring that such decisions come with the approval of both Houses of Parliament. Amendment 98 doubles down on that by also requiring consultation with local authorities.

The Minister may believe that bringing such decisions in-house comes with the bonus of speeding them up, but we believe that making decisions in Marsham Street’s corridors rather than in town halls means local authorities will be left with uncertainty, which will not speed up the building of social homes, but slow it down. Moreover, nothing would be a greater barrier to building social homes than watching receipts being siphoned away.

Under clause 10, the ability to reallocate capital receipts between local authorities will always lead to some councils losing out. It is never going to be popular with councils when they find that, after running the numbers, planning the funding, consulting local people and preparing the foundations, the Secretary of State has robbed them of their funding and given it to another council. It sounds suspiciously similar to the injustice arising from the Government’s disastrously unfair funding review. I therefore urge colleagues to support amendments 92 to 98 and ensure that power stays local.

[Edward Argar (Melton and Syston) (Con)]

I support the amendments in the name of my hon. Friend the Member for Orpington. They involve a perfectly reasonable and proportionate request for this House to have a role in scrutinising what is put forward by the Government and recommended by the Secretary of State.

I spent six years as a Minister. I took countless statutory instruments through Delegated Legislation Committees. By and large, it is not a complex process; it requires a bit of time on the part of officials to get the drafting right, but the process in this House is not complicated. It ensures that a Minister is directly accountable: they have to be on their brief, and they have to be able to clearly articulate the rationale behind what they are doing and, quite rightly, to be challenged by right hon. and hon. Members. That is so important in maintaining or even in creating trust from our communities—the transparency that that democratic accountability brings to what, as my hon. Friend clearly set out, will on occasion undoubtedly be relatively, if not significantly, contentious decisions relating to significant sums of money.

My hon. Friend set out the case for amendment 95 very clearly. The powers in clause 10, when exercised, may well see some local authorities feeling that they are losing out, to the benefit of other local authorities. Without getting into what those decisions may be or where the money may go, in terms of process and democratic accountability, it is not unreasonable that both Houses should have the opportunity to scrutinise the powers in clause 10.

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For those reasons, we believe that the current approach strikes the right balance between flexibility and oversight and reduces unnecessary administrative burdens. The Opposition are always telling me to reduce bureaucracy and red tape. This is a good example of doing that. Our approach also improves responsiveness and supports councils to deliver more replacement homes. We therefore cannot support the amendments and I ask the shadow Minister not to press them. I commend clause 10 to the Committee.

[Gareth Bacon]

The Minister has said that his intent is to improve efficiency and, as always, I respect his sincerity and what he said. It is simply a point of difference between us.

My right hon. Friend the Member for Melton and Syston made a compelling case about the democratic accountability and transparency of the affirmative procedure as opposed to the negative procedure. The point that we have made in the amendments is about the process not the outcome, and our contention is that the process should be as democratically accountable and transparent as possible. We will therefore press all the amendments to a vote.

Question put, That the amendment be made.