Social Housing Bill [HL] Debate
Full Debate: Read Full DebateLord Best
Main Page: Lord Best (Crossbench - Life peer)Department Debates - View all Lord Best's debates with the Ministry of Housing, Communities and Local Government
(3 weeks, 1 day ago)
Lords ChamberMy Lords, I am grateful for the advice of the Local Councils Network on a number of amendments that I have tabled in this group, and for the support of the noble Baroness, Lady Coffey, and, on one amendment, the noble Lord, Lord Best. The Bill’s objective is to provide more social housing and protect our existing stock from ongoing dilution. The previous Government built roughly 130,000 new affordable homes in their five-year period. However, during that period, 28,000 social houses were disposed of. In the first year of this Government, 28,000 affordable homes are being built, but 5,806 have been lost from the social housing stock through disposal.
The first group that we looked at this afternoon dealt with the right to buy. These amendments concentrate on three things. First, they address other leaks in the bucket where social rent homes are being disposed of through sale. The exact figures are not known, but we estimate that there are 5,000 a year. Secondly, they would strengthen the provision where social houses are disposed of, so that proceeds are used to provide replacement social rent housing. Thirdly, they try to improve information on what exactly is going on here by requiring the collection of relevant data so that affordable housing is distinguished from social rent housing—we do not do that currently.
In Committee, the Minister was concerned about my amendment compromising the categorisation of private registered housing providers with government debt. Therefore, on Report, I have abandoned giving local authorities the right of first refusal at existing use value when social rent housing is being disposed of. However, in Amendment 15, we have maintained the right of private registered providers to be informed of disposals, as well as local authority housing, which is already provided in the Bill.
I am worried about overregulation and bureaucracy—I suspect that the Minister might be as well—and the feasibility of how every housing provider can be informed in a local situation. That is why my Amendment 21 proposes that a national disposal register, with access to local authorities and housing associations, should be provided. It should not be difficult to do this, and it needs to be done anyway for local authorities. It can then be accessible to housing association private registered providers.
We are supportive of the amendment from the noble Lord, Lord Best, and I hope very much that the Government will respond positively to the concept that the time for notification should be increased from four to eight weeks when a housing sale is being contemplated. The local authority could then have a proper period to consider whether it could intervene to purchase the housing. I hope very much that the Government will accept that amendment.
My Amendment 17 would provide for notification content to assist decision-making, so that people can make decisions in a fairly limited period—even eight weeks is fairly limited. Therefore, it would require that tenure, EPC ratings, housing compliance, stock condition survey findings, accessibility adaptations, general funding data and compliance certifications should be included in every sale notice. Following discussions with the National Housing Federation, this amendment has been designed to remove anything that the providers do not already hold. They would therefore not need to commission anything specifically. It is not designed to create an additional burden; it would just ease the process of information so that decisions can be appropriately made about whether a local authority or registered provider could get involved in purchasing the property.
Since Committee, I have tabled two new amendments dealing with the Homes England funding framework. Currently, Homes England will be asked to develop a code of responsible development disposal practice to protect social housing, in consultation with the regulator and the sector. Compliance with it will be a condition of accessing funding. The code would recognise that not all disposals are irresponsible, and we do not want to deter appropriate regeneration.
Amendment 27 addresses a significant gap in the current framework. When a provider sells a grant-funded social home on the open market, it can comply by choosing to repay any grant to Homes England and then walk away with no obligation to provide any replacement house anywhere. The amendment would require that where a social rent home disposal involves public money, it should be invested in a replacement home in the same local authority area, with a slightly more flexible requirement for affordable rent disposals. The provider would still be allowed complete commercial freedom on the disposal itself.
Finally, Amendment 21 and a similar amendment from the noble Baroness, Lady Jones, Amendment 22, concern registered providers. At the moment, they already notify the regulator following the completion of the disposal, but the tenure is not currently included in that return, and the regulator has never published the resulting data that would tell us whether it is affordable or social and where the local authority is losing social housing. We simply do not know how many social rent homes are lost through disposal and where.
These amendments attempt to underline the fact that there is a huge disparity between social and affordable rents, and therefore we must do all we can to prevent any reduction in the stock of social rented housing. The amendments seek to protect against inappropriate disposals without reinvestment and to improve information so that we can determine what exactly is happening.
My Lords, I support Amendment 17 from the noble Lord, Lord Stoneham of Droxford, and shall speak to my own Amendments 14 and 16 in this group. I declare my housing interests as on the register, not least as a vice-president of the Local Government Association, to which I am grateful for its help with this amendment.
The sale of social housing properties that have become expensive to repair and maintain, or are simply situated in an inconvenient location, has become a contentious issue for the housing association sector. The LGA has calculated that in 2024-25 alone, 5,250 social housing homes were sold to private buyers, often at auction and no doubt often to private landlords who will be less scrupulous about letting them in poor condition. These homes are lost to the social housing stock even where the properties may be among the only remaining social rented accommodation for less affluent people in the area. The financial case for these disposals may be clear, but disposals of hard-to-replace social housing are seldom in the public interest.
As the noble Lord, Lord Stoneham, noted, the Government recognise this issue, to the extent that the Bill introduces a requirement for a social landlord to notify the relevant council of their intentions to sell four weeks in advance. This provides at least a fleeting opportunity for intervention that could save the property from leaving the social housing sector. A local authority keen to preserve the accommodation as social housing could try to negotiate its retention, perhaps by making a grant towards its repairs, or even by the council making a bid for the property. However, this represents a somewhat lightweight response to what is becoming a major drain on much-needed stock: 28,585 homes have been sold out of the social housing sector in the last eight years. The response of a four-week window when councils will be notified is surely inadequate; this is too short a time for sensible decision-making, so my Amendment 14 seeks to improve this notification requirement by extending the timescale from four weeks in advance of a disposal, as the Bill specifies, to eight weeks generally, and to 12 weeks in designated rural areas, where there are special difficulties, as the noble Lord, Lord Cameron will explain. These changes would provide a wider window of opportunity for action to preserve the social housing.
My Lords, it a pleasure to follow the noble Lord, Lord Young of Cookham, and the noble Baroness, Lady Thornhill, who made such comprehensive cases for Amendments 23 and 25. I have added my name to Amendment 25.
I declare my interests as a former non-executive on both Southern and Aster housing association boards and as the current chair of Look Ahead, which does not own any shared ownership homes but, I am pleased to tell your Lordships, works with rough sleepers—so I welcome the new Prime Minister’s remarks today.
Shared Ownership Resources is a charity that has sent information to me and other noble Lords regarding the urgent need to undertake a programme of improvements, exit mechanisms and buyback options to improve the situation of some shared owners, who appear to be trapped with spiralling service charges and the need for essential maintenance and upgrades to the buildings in which they live. These problems are in part a result of recommendations for fire cladding standards associated with the Grenfell fire.
I acknowledge that the Government have gone a long way in trying to improve the lot of shared owners, which will make the situation much better for many in the future. Problems, however, are of long standing, particularly for shared owners of flats in modern blocks who purchased prior to the Grenfell tragedy. I stand here as the mother of a teacher who was in a shared ownership property in Brixon—a converted Victorian flat—that was highly successful for her. She managed to sell it and now lives in a home in Bristol, so I am not anti-shared ownership.
There is clearly a need to review the situation for those who purchased a share in a property, one of these modern flats, early in the scheme. Some owners are trapped in circumstances that arise from the inherent characteristics of model shared ownership leases and other aspects of the scheme from the early 2000s. Many would like a system of buyback to be funded through a government grant mechanism; such homes would then become social rented units, reducing temporary housing options for many currently in bed and breakfast.
The problems have been described by many shared owners, who have written to me and other noble Lords. Aleksandra, who lives in a Peabody home in Croydon, says, “I have no control over my life anymore, trying to survive the ever-increasing costs of the scheme. I am unable to sell due to the building safety crisis and my housing association does not offer a buyback option”. Secondly, Quay, who lives in an L&Q unit in Tower Hamlets, has been granted permission to sublet but is unable to sell and is making a loss through subletting. However, he has been able to move.
The problems are not just London based. Eddie is in Southend-on-Sea and he says that, because of building safety issues, his home is, in effect, impossible to sell. There is no confirmed timetable for the remedial work necessary. He states that Moat housing association could convert properties into much-needed socially rented homes, but there is no realistic buyback option.
Rebecca bought her property in 2005 and has asked Hyde housing association if it will take back the 35% of the property that she owns. She reports that she would hand it over at no cost, as she has since met a partner and does not need the flat any more. She is currently subletting with the housing association’s agreement but is making a significant loss on rental income due to what she describes as “extortionate” service charges.
The final example is from the north of England. Holly purchased a shared ownership flat in Leeds in 2007. It was advertised as an affordable option for people on lower incomes. Nineteen years later, her home is, in effect, unsellable due to unresolved cladding and building issues. She has asked Together Housing to buy back her share, but it has refused because it has no funding available to do so. However, she reports that the association has acknowledged that the service charges have become unaffordable. She considers herself trapped with no viable exit route.
All these correspondents report the negative effects that such housing problems are putting on their health and well-being. As a mental health nurse, I firmly believe that to be true. For these residents and others in similar situations, these amendments are necessary so that the problems can be properly assessed and potential solutions identified in this Parliament. Other solutions may be identified, but central funding for buyback options should be seriously considered, particularly as such an approach would increase the number of social housing homes for rent. I hope that the Minister is in a position to report that the Government will accept at least one of these amendments, so that historical government-backed schemes can be reconsidered in the light of the powerful information provided by the charities and individuals that have outlined their issues to many in this House.
My Lords, I speak in support of Amendment 25 in this group of amendments in the names of the noble Lord, Lord Young of Cookham, and the noble Baronesses, Lady Watkins of Tavistock and Lady Thornhill. This amendment calls for a review of shared ownership. I emphasise that this proposed review should cover the special circumstances of shared ownership for older people.
Fortunately, the All-Party Parliamentary Group on Housing and Care for Older People, which I have the honour to chair, produced an excellent analysis of the key issues back in 2023 from our inquiry into shared ownership for an ageing population. A large section of our ageing population cannot afford to downsize to more manageable, accessible homes but will never be eligible for social housing. This squeezed middle can benefit in later life from the opportunity to move from family-sized accommodation to somewhere more compact, starting a chain of sales that help young and old alike. Savings accrue to the NHS and social care, alongside the direct benefits to the older person, but it has been a struggle to find a form of shared ownership that can be provided on an affordable basis for the less affluent home owner. The right shared ownership model could achieve this.
Homes England has devised its own older people’s shared ownership model—OPSO. The trouble is that this product currently involves an anomalous form of grant aid, which needs fixing. The OPSO grant means that, if potential occupiers can afford a 75% share, they will not be charged any rent on the 25% that remains in the ownership of the provider. This is very helpful, but the OPSO terms then stipulate that, if the shared owner can afford only 70% or less, they must pay full rent on the remaining 30% or corresponding share of the going rent. Someone who can afford only a 50% share must pay 50% rent; the combination of a 50% rent plus a significant service charge could be just too expensive for owners of middle-value homes.
Amendment 25, in its call for a review of shared ownership, needs to include the specific circumstances of older people and sort out the rather weird offering currently available from Homes England. The amendment could trigger a review that leads not just to an improvement in the amount of shared ownership housing for older people but that also means more sensible terms for the product itself—an excellent opportunity for a reset of a tenure that has much unrealised potential for young and old alike.
My Lords, I thank all noble Lords who have contributed to this debate, particularly my noble friends Lord Young of Cookham and Lord Fuller, the noble Baronesses, Lady Thornhill and Lady Watkins of Tavistock, and the noble Lord, Lord Best. They have brought forward these amendments and highlighted the very real challenges faced by many shared owners. I thank Lucy and the many others who have shared their examples with us that have brought this to light.
This has been a valuable debate on an area of housing policy which was intended to provide a bridge to home ownership but which, for some households, has been increasingly difficult to navigate. We have heard concerns about affordability, rising service charges, the costs associated with staircasing and the difficulties faced by leaseholders whose homes may be difficult to sell or mortgage. We have also heard concerns about the loss of affordable housing stock, where shared ownership properties leave the sector altogether.
The amendments before us seek above all to shine a light on these issues. Amendment 23 focuses on gathering better evidence about unsaleable and unmortgageable homes and on understanding the extent to which affordable housing stock is being lost. Amendment 25 asks the Government to undertake a broader review of whether the shared ownership model is delivering the outcomes it was designed to achieve.
From these Benches, we continue to support the principle of shared ownership as a route into home ownership for those who might otherwise be excluded from the housing market. However, support for the principle should not prevent us from examining how the scheme operates in practice and where improvements are needed. A review of the sort proposed by my noble friend Lord Young would provide an opportunity to assess the evidence, understand the experiences of shared owners and identify any barriers preventing the scheme from fulfilling its original purpose. If my noble friend is minded to move his amendment, we shall support him. I look forward to the Minister’s response.
My Lords, this group of amendments begins with Amendment 28, in my name, and covers a range of different but vital issues. The concluding Amendment 76 in the group, in the name of the noble Baroness, Lady Neate, addresses the treatment of abuse victims who get into debt while living in temporary accommodation and lose their entitlement to a secure home. As I am sure the noble Baroness will explain, that is a vital amendment. I greatly welcome the wider definition of domestic abuse announced by the Minister in her letter to Peers of 14 July and encapsulated in the 46 government amendments in this group.
Amendment 28 picks up on a separate but related issue. It would ensure that social housing providers offered a new secure tenancy to a tenant who had been forced out of their social housing by threats of targeted youth or gang violence following police advice. This change was first proposed by Helen Hayes MP, supported by the National Housing Federation and Shelter. A constituent of hers, as instructed by the police, left her social rent home but thereby lost access to secure accommodation and was trapped in miserable temporary accommodation, with no right of return. She was penalised because one of her children had been threatened with serious violence by gang members, not because she or any member of her family had done anything wrong. Frighteningly, these cases of gang violence are not rare in some of our inner-city areas. The family of Helen Hayes’s constituent subsequently suffered the tragic death of a teenage son in a separate gang-related incident. The threats to life can be very real.
Amendment 28 would ensure that, in future cases, the fleeing household would not lose the right to return to a secure tenancy where the move was on the basis of police advice. I understand that the Government will be strengthening guidance to social landlords. What is needed is a firm obligation on the housing association to restore the household security of tenure in a decent property after a temporary emergency move.
Amendment 29 is supported by the noble Baroness, Lady Warwick of Undercliffe. I thank the Chartered Institute of Housing, the National Housing Federation, the National Federation of ALMOs and the LGA for their work on this issue. Amendment 29 seeks to end the current legal anomaly whereby, on the one hand, social landlords are required to make checks of tenants’ homes for safety reasons while, on the other hand, the tenant may deny access. A recent court judgment has ruled that social landlords do not have a right of access in these cases. The social landlord can be penalised for failing to carry out safety checks, can be accused of regulatory failure and can face criminal prosecution, but they cannot fulfil the requirements on them because the tenant is denying access and the courts will not support the social landlord taking action to enter the premises.
Quite properly, the Government have been bringing pressure to bear on social landlords to improve their management and maintenance services, including by carrying out more safety checks and works. There is the annual servicing of gas boilers, periodic safety checks and fire safety checks, including smoke and carbon monoxide alarm checks. However, the social landlord may make comprehensive and repeated attempts to secure entry to carry out these statutory checks but is still denied access. The tenant may have mental health difficulties, they may be hoarders or they may simply lead a chaotic lifestyle that makes appointments hard to keep, but taking the tenant to court as a last resort has revealed an ambiguity in the law, with a judgment last October that courts cannot grant access unless Parliament has clearly conferred such a power.
There is an urgent need to sort out the legal position. I know that MHCLG has been in helpful negotiations with all the representative bodies to bring together statutory guidance that would ensure good practice by social landlords and avoid accusations of trampling on tenants’ human rights. However, the blockage encountered in the courts suggests that social landlords need more than this important guidance. It seems that new legal powers are required.
I know the Minister has been pursuing this matter within MHCLG and with the other relevant government departments to resolve this legal dilemma. I was grateful to the Minister, as on so many occasions, for her willingness to meet and discuss the issue and for her subsequent letter in which she recognises the strength of the case and says: “I agree that the ability of landlords to access homes for essential safety checks is an important issue that we must take seriously. The early evidence suggests that there is an issue for government to resolve, and I am sympathetic to your amendment”.
Without a solution, the housing associations, councils and ALMOs are left in an impossible position. As always, the hard work behind the scenes by the Minister is much appreciated, and I look forward to her response. I beg to move.
My Lords, I added my name to Amendment 29, and I am delighted to see that it is grouped with the Government’s amendments extending protections for victims of domestic abuse, which I certainly support.
I was grateful for the Minister’s constructive response to this amendment in Committee, especially her recognition that the matter needs further consideration and her commitment to convene interested stakeholders to explore a way forward. I know that representative bodies from across the social housing sector have been working with officials on the best way to solve the issue of access to residents’ homes to carry out essential inspection repairs and safety works. In Committee, the Minister raised important concerns about tenants’ rights and the potential impact on their sense of security in their own home, and I agree that that is extremely important in safeguarding a tenant’s right to the peaceful enjoyment of their home. However, the amendment by the noble Lord, Lord Best, seeks to ask simply: are existing routes for access clear, consistent and fast enough when tenants and residents do not engage and clear safety risks are posed? I am convinced that the answer to this is no.
We know that housing associations and councils increasingly report difficulties in gaining access to residents’ homes to carry out statutory safety inspections. Recent HQN research found that 60% of surveyed social landlords had growing or considerable concerns about access issues. The primary concern here must be the safety of residents and social housing staff. If gas safety checks or emergency repairs cannot be conducted, issues can be left unidentified or unresolved that pose significant and imminent danger not just to the resident in that property but to people in neighbouring homes as well.
Legal action is typically taken as a last resort after steps to engage directly with residents have proven unsuccessful, but even this has become more challenging. Housing associations have observed a shift in decisions from judges over the last 12 months, with judges seemingly less willing to approve requests for injunctions, particularly for matters other than gas safety. As I mentioned in Committee, and indeed the noble Lord, Lord Best, has just mentioned it too, a court judgment from October 2025 demonstrated that Parliament’s intention on forced entry is currently unclear.
Alongside the obvious risk to safety, there is the financial cost of inaction. In a 2026 White Paper, the Association of Safety and Compliance Professionals estimated that repeated access attempts cost the social housing sector more than £175 million annually in direct operational terms, with the figure rising to between £200 million and £245 million with legal escalation included. I urge that this money could be better directed towards work that will improve the conditions of residents’ homes or to building much-needed new social housing.
I am encouraged by the Minister’s approach so far. Whether through this amendment or another mechanism to clarify the process for securing access, I know that both she and social housing bodies want to work in partnership to develop a workable system with tenant safety at its heart.
My Lords, it was a good debate, with approval from all sides for all the amendments in the group. It was good to hear the details of the 46 government amendments that will widen the definition of domestic abuse. Once again, it has been invaluable to hear from the noble Baroness, Lady Neate, supported by the noble Baronesses, Lady Lister and Lady Teather, and to understand the Government’s sincere efforts to remedy the inherent injustices in the current arrangements for domestic abuse survivors through enhanced guidance. I thank the Minister for her very full and helpful response and for her firm commitment to take further action if guidance proves insufficient to protect victims of domestic abuse.
On dangers from crimes of violence where the police have strongly advised a move, it is important to note the Minister’s commitment to strengthening the guidance to social landlords, now in preparation. This will, I hope, make a significant difference.
When it comes to the no-access problem, we must await further action by government on the need for a change in the law for a statutory right of access, but I am greatly heartened by the willingness of the Minister to find a lasting solution. With these comments, I beg leave to withdraw my amendment.
My Lords, for once I rise to oppose—at least in part—an amendment in the name of the noble Lord, Lord Young of Cookham: Amendment 77. I want to defend the concept of providing secure social housing tenancies for life. The review proposed in Amendment 77 envisages five-yearly reviews of whether a tenancy should continue, with the possibility of a consequent requirement for a tenant to move elsewhere if their circumstances have changed sufficiently. This would engender a constant state of uncertainty and insecurity for every social housing tenant.
Apart from the administrative overload, to which the noble Baroness, Lady Thornhill, has drawn attention, I suggest there are some powerful reasons why denying social housing tenants a secure lifetime tenancy is likely to have undesirable consequences. First, the section of the Housing and Planning Act 2016 that has not been introduced to date, and which the Bill intends to repeal, would have required social housing tenants to pay a higher rent if their income improves. In theory, this would pressurise tenants to move on into the private rented sector or, less probably, to buy their own home elsewhere. I maintain that no regime should penalise tenants in social housing who improve their position in life by working hard and earning more. They should not be expected to pay for their success by facing higher rents. A system of rising rents for rising incomes brings disincentives to work longer hours, or even to work at all.
Secondly, if a tenant leaves subsidised housing because their improved financial position has meant a penalty in their rent, what happens if they have a reversal of their fortunes? The PRS property to which they have moved will no longer be affordable on their now reduced income, but it would be virtually impossible for them to regain a social home lost in this way.
Thirdly, if tenants are pressurised to move out of social housing and into private renting when their personal circumstances improve, they are likely to encounter the problem that their income will drop on retirement. A market rent that was affordable when they were working can swiftly become unaffordable when they are retired. The taxpayer will then get lumbered with a further increase in the housing benefit bill.
Fourthly, keeping households on an estate of social rented housing, despite their circumstances improving, has social and community advantages. A mixed-income estate that includes some tenants on rather higher incomes means successful neighbours providing role models for other families, often demonstrating community leadership for resident-led activity.
Fifthly, if tenants are encouraged or compelled to move out when they do well, those who remain could be stigmatised as losers and failures. This stigma can seriously affect children’s life chances, as American research into concentrated poverty has revealed.
Finally, there is the argument that tenants should be compelled to move on if they no longer need the space they are occupying—for example, if they have a spare bedroom. For this, the bedroom tax presents a case study. This reduction in housing benefit was intended to incentivise underoccupying tenants to move out but, in reality, very few of those facing the bedroom tax proved willing or able to move. Rather, the withdrawal of benefit from those with a spare room has served only to reduce the incomes of those affected. It has seldom been possible for the downsizing tenant to find a suitable home elsewhere. They have simply been made poorer through losing some of the housing benefit that previously covered their rent.
Instead, carrots rather than sticks have been shown to work in persuading older tenants to downsize into later living homes, such as a cluster of smart new apartments that replaced redundant garages on a council estate. Rather than pressurising elderly tenants to downsize, the incentive of a more suitable home—nearby accommodation that is more accessible and manageable —produces better results for everyone.
For all these reasons, I caution against a review that considers alternatives to secure-for-life social housing tenancies. These alternatives are likely to diminish the quality of life for tenants, especially measures that pressurise tenants unwillingly into an enforced move. Like most of us who are home owners, tenants in social housing thrive on the knowledge that they are secure in their own homes for as long as they choose.
On Amendment 78, I do not support the unhelpful provision in the Housing and Planning Act 2016 to terminate fixed-term secure tenancies, which has never been implemented. This Bill is right to repeal that measure and preserve long-term security of tenure for social housing renters.
Lord Jamieson (Con)
My Lords, I will not seek to elaborate on the excellent speech by my noble friend Lord Young of Cookham, who made a powerful case that, where we have an asset with a finite supply and excessive demand, we need to look at how we can use it effectively.
I say to the noble Lord, Lord Best, and the noble Baroness, Lady Thornhill, who spoke about the impact on the tenant: what about that person who is not able to access social housing because it is occupied by somebody who could comfortably afford their own private rented home or could afford a higher rent? I am not suggesting that everyone can but, where we have a finite resource, we need to use it efficiently. Ultimately, that is about fairness, not just to the existing tenant but to families, often in difficult circumstances, for whom the opportunity of a social home could turn their lives around—as it has turned around the life of somebody who has moved on and been successful. It is also about fairness to taxpayers. Why should someone who is struggling to pay their private rent see their taxes fund a subsidised home for someone earning more than they are? Again, I am not saying that they all are. This is about moving on.
I am pleased that the noble Lord, Lord Best, raised the issue of incentives and carrots, so I was surprised that, earlier on, he did not support the incentive of the ability to buy your own home under the right to buy. Surely that is a tremendous incentive for anyone who could afford to do it, thereby creating, through building, another social home for somebody in tremendous need.
With that, I very much support my noble friend Lord Young of Cookham’s amendment and the retention of the previous Conservative measure, because it is about fairness. It is about using stock wisely and about ensuring that it does the maximum amount of good for the maximum number of people.