Levelling-up and Regeneration Bill

Lord Bishop of Southwark Excerpts

Report stage
Wednesday 6th September 2023 Lords Chamber

[Baroness Bennett of Manor Castle (GP)]

My Lords, I rise with pleasure to follow the noble Lord, Lord Stunell, and the noble Baroness, Lady Hayman, to speak to Amendment 201, to which I have attached my name. Essentially, I associate myself with everything that they said. I will seek not to repeat them but just make a couple of additional points.

Democracy demands clarity. We all know that we are heading into a general election, in which discussion of affordable housing will be right up there at the top of the agenda. We need to set out a definition about what we are talking about, if we are to have a sensible debate about our housing policy future.

For any noble Lords who have not seen it, I recommend the excellent briefing from the House of Commons Library—if I am allowed to recommend that—on the definition of affordable housing in July this year. One of its top headlines is:

“No agreed definition of affordable housing”.


It notes that the most commonly used framework is that of the National Planning Policy Framework, used by local planning authorities, which takes in social rent, as well as a range of so-called intermediate rent and for-sale products. As the Affordable Housing Commission of 2020 concluded, “many” of these so-called affordable homes are “clearly unaffordable” for those on middle or lower incomes.

This being the House of Lords, we should look for a second at the historical framework of this. If we go back to 1979, we see that nearly half of the British population lived in what were clearly affordable homes—they lived in council homes, with council rents. That reality is not that long ago. We have since seen the massive privatisation of right to buy, and a move towards treating housing primarily as a financial asset, rather than as homes in which people can securely, comfortably, safely and healthily live. That is what brings us to this point today. This amendment is not going to fix that but it would at least set out the clarity of terms for us to be able to talk about this in a practical kind of way.

I looked at the Green Party policy for a sustainable society. It starts with the absolute foundation, stating that it is

“a universal human right to shelter which is affordable, secure and to a standard adequate for the health and well-being of the household”.

That is why we are now saying today: right homes, right place and right price. We need to think about what that price means. In the Green Party we have set out very clearly what we believe the right price is. On purchase, we should be looking to move towards a situation where house prices are not more than four times average salaries. On rent, where the real extreme levels of suffering are now, there should be a living rent—a definition backed by many of the NGOs. Genuinely affordable housing means that median local rents would not take up more than 35% of median local take-home pay. That is what I would set out.

I could perhaps have put down an amendment to set those figures out, but that is not what I have done. What I have said instead is that we need to set out the terms of this debate, as this amendment does. I strongly commend Amendment 201 to your Lordships’ House.

[The Lord Bishop of Southwark]

My Lords, the noble Baronesses, Lady Hayman and Lady Bennett, and the noble Lord, Lord Stunell, have all spoken eloquently on Amendment 201, which I support. I thank them for tabling it.

The independent Archbishops’ Commission on Housing reported in March 2021, and your Lordships’ House may recall the debate that the most reverend Primate the Archbishop of Canterbury secured on 24 March 2021, on the subject of housing. I simply wish to highlight a few points from that which I believe are relevant to the debate on this amendment.

The first is that the object of central government policy and of legislation should always be the ready provision of good housing—homes in which people want to live, in areas capable of flourishing. Too often, sadly, that is not the case, and we build among the smallest dwellings in Europe. Secondly, we require a bipartisan approach that enables a consistent policy to be followed across decades, and not one that is beholden to the sort of interests that have so limited housebuilding. It is worth remembering, as has already been mentioned today, that the last year in which we achieved house- building at the current target of 300,000 was 1969, over 50 years ago. Thirdly, we require a definition of affordable housing that relates specifically to income. Without this, any policy on affordable housing will fail. I support Amendment 201.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing and Communities (Baroness Scott of Bybrook) (Con)]

My Lords, Amendment 201 in the name of the noble Baroness, Lady Hayman of Ullock, relates to the definition of affordable housing. The amendment proposes a consultation on the definition that currently appears in the National Planning Policy Framework. We have had good debates about these issues, both today and in Committee, and I recognise the strength of feeling around the importance of ensuring that affordable housing meets the needs of those who require it.

I can reaffirm the Government’s commitment to delivering more houses for social rent. We are carefully considering the consultation responses to our proposal to amend national planning policy to make clear that local planning authorities should give greater importance in planning for social rent homes. A large number of the new homes delivered through our £11.5 billion Affordable Homes Programme will be for social rent.

Nevertheless, it is also important that the definition of affordable housing in the NPPF provides local authorities with sufficient flexibility to plan for the type of affordable housing that is needed in their area. The existing definition includes a range of affordable housing products for those whose needs are not met by the market. Those needs will vary depending on people’s circumstances and in different housing markets.

I am also mindful of the point made during our debate in Committee by my noble friend Lord Young of Cookham, about the trade-off between the level of discount that a type of affordable housing provides and the number of such homes that can be delivered.

We all agree that we need to consider this issue further. That is why we have committed to a wider review of the national planning policy once the Bill has received Royal Assent. That will include the production of a suite of national development management policies. This work will need to consider all aspects of national policy—and that includes the way that affordable housing is defined and addressed—and would be subject to consultation. I look forward in that consultation to hearing all the views from the sectors which have been mentioned this afternoon. I think we all agree on this.

What we do not agree on is how we should process this particular issue that we want to deliver. I therefore hope that the noble Baroness, Lady Hayman of Ullock, feels able to withdraw her amendment at this stage.

Amendments 201A and 285A from the noble Lord, Lord Stunell, raise two important matters relating to affordable housing. The first matter is how affordable housing is defined for the purposes of this Bill. The approach has been to link this to the definition of social housing in the Housing and Regeneration Act 2008. This definition encompasses both rented and low-cost home ownership accommodation that is made available in accordance with rules designed to ensure it is made available to people whose needs are not adequately served by the commercial housing market. While I understand the noble Lord’s argument that affordable housing should be defined more tightly, I am eager to avoid depriving local authorities of sufficient flexibility to determine what is most appropriate to meet the needs of their area.

However, the Government are taking action to secure the delivery of more social rented homes, as I have said, for which rents are set using a formula that takes account of relative local incomes. A large number of these new homes, as I have said before, will be delivered through our £11.5 billion Affordable Homes Programme and will be for social rent.

We are also carefully considering the consultation responses to our proposal to amend the national planning policy to make clear that local planning authorities should give greater importance in planning for social rent homes. The noble Lord, Lord Stunell, also raised the disclosure of information relating to the viability of affordable housing in housing developments. Although I recognise that the noble Lord is seeking to improve the transparency of this process, I do not believe that the change he is proposing is necessary. As discussed earlier on Report, the new infrastructure levy will allow local authorities to require developers to pay a portion of their levy liability in kind in the form of on-site affordable housing. This new “right to require” is designed to replace site-specific negotiations of affordable housing contributions.

While viability assessments may be used in setting infrastructure levy rates, any developer that wishes information to be taken into account must submit it to be examined in public. Levy rates and charging schedules will be matters of public record.