Affordable Housing: Supply

Lord Davies of Brixton Excerpts

Thursday 25th April 2024 Lords Chamber

[Lord Davies of Brixton (Lab)]

My Lords, first, I congratulate the noble Baroness, Lady Smith of Llanfaes, on a tremendous speech, one that I—as someone with forebears from the beautiful island of Ynys Môn, or Anglesey if you prefer, one of the most beautiful places in the world—particularly welcome. She is very welcome, and I am sure will be a tremendous asset to this House. I also thank my noble friend Lord Chandos for introducing this debate. In his and all the other contributions, a powerful case has been made. I am looking forward to the Minister’s reply. I hope she will adopt a constructive response to what has been said rather than just defending the Government’s record. We have to look to the future and to what needs to be done.

I am going to talk about the crying need for more council housing, especially but not necessarily for those on lower incomes. This need has become increasingly critical, given today’s housing crisis, which has been so ably laid out by previous speakers. I emphasise that I am talking about council housing: housing that is publicly owned and subject to a degree of democratic accountability, where tenants have secure tenancies and rents are, in general, substantially lower than in other forms of renting. As a result, as has been argued by the All-Party Parliamentary Group on Council Housing, it offers the only real opportunity for mass affordable rented housing in the whole of the UK. There is obviously a significant role for other forms of social housing, but the long-term sustainable solution to the problems we face relies on council housing.

Extraordinarily, it is one of those areas of social policy where we know what works but, for one reason or another, are blind to what needs to be done. The noble Lord, Lord Young of Cookham, joined us briefly—he is not here now—to make the point from the opposite Benches about the success of the Macmillan housing programme. That depended on council housing; it was not done by private developers. The success of our new towns, to which I hope my noble friend Lady Taylor of Stevenage will refer in winding up, relied on council housing. We know it works. Council housing provided millions of families with their first opportunity of a decent family home. For one reason or another, we choose to ignore that success.

The changes we have seen in housing during the last decades, have resulted in pushing low-income families into insecure, substandard housing, with overcrowding and—to an increasingly worrying extent—homelessness. Council housing has played a crucial role in ensuring a basic standard of living and security for all.

The case for expanding the use of council housing is grounded in both social justice and economic practicalities. First, I believe that housing is a fundamental human right, crucial for personal stability, dignity and family life. By providing more council housing, Governments can directly support those in need, fulfilling their basic responsibility toward their citizens. Secondly, as other speakers have mentioned, low-income families often spend a disproportionate amount of their earnings on housing, squeezing what is available for other essentials such as food, healthcare and education. More council housing, with socially appropriate rents, would increase disposable income levels, leading to greater consumer spending and more contentment with human life, but also economic growth. Thirdly, councils provide stable and affordable homes for low-income families, reducing their risk of homelessness with the associated social costs which come back on all of us. Finally, having a secure living environment can lead to better educational outcomes for children, greater employment opportunities for adults, and overall improved health for families. Not for nothing were health and housing in a single ministry in the Government following the last war. Good health requires and needs good housing.

From a broader perspective, increased investment in council housing can stimulate the economy. Construction projects—of which there are all too few at the moment—generate jobs, boost local businesses and can lead to the revitalisation of undeveloped areas.

Given the manifest need for more council housing, we must talk about the adverse, malign effects of right to buy. While the scheme has allowed many tenants to achieve home ownership and has been popular among those who have benefited from it, its long-term implications for the availability and affordability of housing have been malign. Clearly, there has been this massive reduction in the stock of social housing that has been referred to, but we have seen that many of those properties which were sold to create this property-owning democracy have been bought up by commercial letting agents. We end up with families still relying on rented accommodation, provided more expensively by the private sector and of not such a good standard.

That has led to a reduction in social cohesion and, although there is not time today to go through all the details, an adverse effect on the financial stability of local authorities—it is one of the major factors in why local authorities are facing the problems they are—and to lengthening housing lists and more people in need of accommodation. To address this problem, we require a comprehensive strategy involving the multiple stakeholders involved, but government at all levels must commit to long-term funding and policy support for council housing development. Public support is essential. Community involvement in planning and decision-making can ensure that developments meet local needs and integrate well with existing neighbourhoods.

I particularly emphasise the importance of cottage estates. That is the sort of housing people want to live in. All too often the financial rules on the development of new housing force the building of flats, which are fine for some, but the great majority of people want to live in the cottage estates that we built between the wars and during the 1950s, but which for some reason are no longer being built in the numbers people require. It is a matter of some concern that Goldsmith Street in Norwich, a Stirling prize-winning development that was built as council housing, is now to be sold off to the private sector for right to buy. This simply has to stop.

Increasing the availability of council housing is a pivotal step towards addressing the housing affordability crisis and the support that is required for low-income families. Not only will it provide the basic need for shelter, but it will serve as an economic catalyst and promote social equity. By prioritising this approach, Governments can make significant strides towards a more stable and just society.