Council Housing

John Milne Excerpts

Tuesday 27th October 2026 Westminster Hall

[John Milne (Horsham) (LD)]

It is a pleasure to serve under your chairmanship, Sir Jeremy. I thank the hon. Member for North East Hertfordshire (Chris Hinchliff) for securing this debate.

In my constituency of Horsham, the council stock was sold off long ago to Saxon Weald, a housing association, which does a pretty good job. For years, under a series of Tory administrations, there was little council interest in building any more, so I applaud the current Lib Dem-led council for its recent announcement of 22 new homes for social rent—that is a start, at least. However, having the will is not enough; you also need the means. In this context, the Government’s main housing strategy—the standard method for allocating local targets—is having a destructive effect. It did not work for the Tory Government, and it is not working for Labour, either.

A new Horsham district local plan is passing through the system right now, but it is simply not possible for an authority in an area such as mine to require the provision of large amounts of social housing—or, indeed, any. The subsidy system, based on section 106 taxes, does not generate nearly enough, and that means that councillors cannot set a guaranteed percentage of homes for social rent in the plan, even if they want to. Such a plan would be ruled unsound by the inspector because it is financially undeliverable.  That is exactly what happened to me when I was cabinet member for planning a few years ago.

Because Horsham ranks as a relatively affluent area, it is not in line for Government subsidies. Ironically, the locations that face the highest housing costs are precisely those least likely to get any Government investment support. We have a system designed to deliver cheap housing in areas that, on average, have more cheap housing. The Government obsession with counting permissions instead of actual real-life houses has directly undermined Horsham’s ability to deliver low-cost housing. Unfeasibly high targets force the council to accept developer proposals that are optimised for quantity not affordability. In reality, private developers are principally in control of choosing the sites; councils merely edit them.

In an area like Horsham, where most of the district is farmland, the market drives developers to buy up green spaces on the edge of existing settlements. The result is a strong incentive for suburban house building, which by its nature tends to poorer affordability and wasteful land use. At the same time, we have a construction industry trapped in a boom-and-bust cycle.

The absence of consistent local authority house building makes it much harder to bring in low-cost models, such as modern modular construction, because that depends on a continued reliable delivery pipeline. That is one reason why Legal & General, which bravely invested in this market, was forced to close its modular arm a few years ago. Whatever the Government decide to do, some further change of policy is necessary. I hope the Minister will be honest and realise that the current trajectory is not going to solve anyone’s problem in any reasonable length of time.