(1 week, 4 days ago)
Lords ChamberMy Lords, I have Amendment 7 in this group and must once again refer to my interests as a retired member of a Somerset farming family which lets some houses on the farm.
During the passage of this Bill, I have explained how the shortage of affordable housing to rent in rural areas has had and continues to have long-term social and economic consequences for our communities. It has led to school, shop and pub closures and reductions in transport and other services—quite apart from the effect on the viability of local businesses. Traditional family and social networks have collapsed, and all this has been caused by a lack of affordable housing to rent in our countryside. We must protect this stock, both where it remains and where, hopefully, it is soon to be added to. I will not say any more about all this because your Lordships have heard it all before and I have had support from noble Lords on all sides of the House.
I thank the Minister and her team for meeting to discuss our concerns about how the strict interpretation in how Section 157 of the 1985 Housing Act was implemented resulted in over 60% of rural parishes being excluded from the exemption to the right to buy. Thus 60% of all rural parishes remained exposed to the near certainty of losing their council houses—and they did. We must not let this happen again. The problem was, and remains, that in the 1985 Act, Section 157 regulations require that local authorities apply to the Secretary of State for rural area designation of their rural parishes: that is, parishes that have a population below 3,000, with less than two persons per hectare. The problem was and is that few local authorities applied. Most local authorities did not realise that this was a requirement, had transferred their stock to a registered provider or did not have the resources to put together the necessary evidence. The point is that they did not apply and therefore we lost 60% of conforming rural parishes.
At our meeting with the Minister and her team, we all agreed that this must not happen again—hence my amendment, which I tabled in Committee and repeat here. We also agreed that it was not strictly necessary for the definition of a designated rural area to be in the Bill. Therefore, I agreed not to press my amendment to a vote, provided we had some sort of undertaking that, at least in the short term, all parishes that fitted the criteria could be included, whether or not their local authority had made an application following the 1985 Act. It would be unfortunate, to say the least, if the Government merely rolled over the post-1985 list of parishes with designated rural area status. I am counting on the Minister to reassure me on that point.
My Lords, my Amendment 9 asks for information that is necessary to understand the full situation. I had better declare that I rent a flat in a social housing block, which was presumably bought under right to buy.
In Committee, my noble friend Lady Bennett argued that the most effective way to protect our social housing stock is to abolish the right to buy. I also support that. Scotland abolished the policy in 2016 and Wales followed in 2019; neither has chosen to bring it back. Both Governments concluded that, in the middle of a housing crisis, preserving social housing for the future was more important than continuing a policy that reduced its supply.
I appreciate that the Government are not prepared to take that step in this Bill but, if that is the case, the very least Parliament should expect is a clear picture of how the policy is operating and what impact the changes it will make are having. The amendment would require the Secretary of State—whoever it is—to lay an annual report before Parliament setting out how many homes have been sold under right to buy, the receipts received by local authorities, how those receipts have been used and an assessment of the impact on the availability of social housing in each local authority. The reality is that, for decades, we have been selling social homes more quickly than we have been replacing them. Every home lost is one fewer home available for the next family on the waiting list.
Social housing should be seen as a long-term public asset, not simply a resource to be steadily diminished while demand continues to grow. Between 1980 and the abolition of right to buy in Scotland, almost half a million social homes were sold. The Scottish Government estimated that ending the policy would protect around 15,500 homes over the following decade. In Wales, Ministers similarly concluded that ending right to buy would help preserve affordable housing and give councils and housing associations greater confidence to invest in new homes. We may disagree on whether England should follow that path, but we can surely agree that Parliament should have the information needed to judge whether these reforms are having their intended effect.
I also welcome the amendment in the name of the noble Baroness, Lady Coffey, which would extend reporting requirements to include the right to acquire. If we are assessing the impact of policies that reduce the stock of affordable housing, it is sensible that the report should capture information from both schemes.
I acknowledge that some figures on right to buy are already published, including the total sales receipts. However, the Government do not publish the amount of those receipts retained by local authorities, nor does Parliament receive a single annual report bringing together sales, receipts, how those receipts have been used and the overall impact on the availability of social housing. This amendment would bring that information together in a single annual report laid before Parliament, enabling both Houses to scrutinise the real impact of these reforms and judge whether they are delivering their intended objectives.