Social Housing Bill [Lords]

James Naish Excerpts

2nd reading
Thursday 10th September 2026 Commons Chamber

[Matthew Pennycook]

I am sure that we will have ongoing discussions about that and other issues. The hon. Gentleman may wish to hone his private Member’s Bill—the Homes and Planning Bill—so that it focuses on this issue among others. As I said at oral questions on Monday, I recognise the strength of feeling in the House on disposals. I want to ensure that every opportunity is taken to retain homes in the social housing sector.

The new disposal notification requirements in the Bill, which I will address later, will maximise opportunities for social housing providers to buy and retain social homes, but housing associations remain independent organisations, responsible for their own asset management decisions. Yes, we are looking at what more we can do to protect much-needed social housing stock, but there are limits to the extent to which we can go. Further to that point, we are also taking equally important steps to ensure that councils are in a better position to buy any disposals—by raising the gap on grant funding for acquisitions, for example.

Taken together, those measures will fundamentally alter the trajectory of social housing supply. Between April 2012 and March 2024, there were over 124,000 council right to buy sales, with fewer than 48,000 homes replaced in the same period. Under the previous, pre-reform baseline, we could have expected to see an approximate net loss of another 26,000 council homes between 2026 and 2036. Following the implementation of this Government’s right to buy reform package, including the measures in the Bill, we instead expect to realise a net gain of around 18,000 homes in the same 10-year period. To put it more simply, instead of vainly watching the loss of precious social homes massively outpace their building, we will, for the first time in decades, build considerably more than we are losing thanks to this Labour Government and this Bill.

[James Naish (Rushcliffe) (Lab)]

The Bill rightly prioritises the building of social rented homes. Back in 2003, however, Rushcliffe borough council transferred all its council housing stock away and has built none since, yet it has praised itself repeatedly for being debt free, despite being much poorer asset wise as a result of that decision. Does the Minister agree that, if the Bill is to succeed, we cannot treat stock transfer as virtuous and that we have to get to the point where housing revenue accounts are not treated and talked about as being traditional debt for local authorities?

[Matthew Pennycook]

There is lots I agree with in what my hon. Friend said. We want to see councils once again directly delivering homes at scale. We also want councils working in far closer partnership with housing associations to increase the number of homes that are built and managed by local authorities. The point my hon. Friend made about his local authority is on the record for people in his area to see.

In addition to introducing comprehensive reforms to the right to buy, the Bill will require private providers of social housing to notify the relevant local authority and other social housing providers in their area before they sell a social home, which is relevant to the point the hon. Member for St Ives (Andrew George) made. There can be good reasons why private registered providers sometimes choose to dispose of social rented homes, and we do not propose to prevent them from doing so, but when a social home is to be sold, councils and other social housing providers should have the opportunity to consider whether they are interested in purchasing it. Legislation to provide them with that opportunity will prevent homes from being lost to the private market when they do not need to be.

--- Later in debate ---

[James Naish (Rushcliffe) (Lab)]

I welcome the Bill and the Government’s commitment to a decade of renewal for social and affordable housing. I will use my time to speak on behalf of the villages in my Rushcliffe constituency, and to draw the House’s attention to the work of the Labour Rural Research Group.

Affordable housing is too often discussed as if it is purely an urban and metropolitan problem—it is not, as we have just heard. In villages in my constituency and across rural Britain, families are being priced out of the places they grew up, young people are leaving because they cannot find a home, and the social housing stock that once anchored our rural communities is shrinking, not growing. The LRRG’s March 2026 report, on rural poverty in England, sets that out starkly. In 2024-25, just 17,506 affordable homes were delivered in rural local authorities, compared with 47,256 in urban ones. Rural delivery fell by 2% on the year before, while urban delivery rose. In a significant number of rural councils, only 4% of homes are affordable for someone on an average local income, compared with 10% of homes in urban authorities. That is why I welcome the fact that the Bill already exempts properties in designated rural areas from the right to buy. That principle reflects exactly what the LRRG called for in its report: recognition that rural housing is structurally different and policy needs to treat it accordingly.

However, I will press the Minister to go further in three specific areas. First, on the disposal of rural social housing stock, we would particularly welcome a local replacement guarantee, so that rural communities are not subsidising urban housing waiting lists at the expense of their own when stock is disposed of. Secondly, rural exception sites deliver important housing opportunities in rural areas, but LRRG has called for them to be placed on a statutory footing, alongside the Bill’s right to buy reforms, and for the policy to be strengthened and simplified, so that planning authorities can accelerate delivery. Thirdly, on measurement and targets, as it stands we do not properly track rural affordable housing delivery as a distinct category. The LRRG has called for a dedicated rural affordable housing delivery target, with separate monitoring by tenure type. Without that data, we cannot know whether the policies are working for rural communities.

[Sarah Russell]

Might I suggest that producing social housing that includes flooring as standard is a fourth area in which the Minister could go further? That is delivered by the private market, but it is not a requirement for social housing providers at the moment.

[James Naish]

There are several areas in which we make further interventions to support our rural communities.

The Bill is a good and necessary step. It protects social housing stock, gives greater security to survivors of domestic abuse and reduces unnecessary bureaucracy for providers. However, if we are serious about a decade of renewal that reaches every postcode, rural Britain cannot be an afterthought. I hope that the Minister will look closely at the LRRG’s recommendations as the Bill progresses, so that rural communities are not left behind.