Social Housing Bill [HL]

Lord Fuller Excerpts

Committee stage
Wednesday 17th June 2026 Lords Chamber

[Lord Young of Cookham (Con)]

My Lords, I intervene to indicate a preference for Amendment 105, which calls for a review of shared ownership, rather than Amendment 79, which calls for a strategy for increasing shared ownership. This is because there are features of shared ownership that need addressing before we increase the opportunities.

The Minister will recall the problems facing shared owners in flats with safety issues post-Grenfell. I am grateful to her for agreeing to amend the Renters’ Rights Act to reflect that. But that indicated how the law on conventional tenures such as owner occupation, leasehold or tenancy finds it difficult to accommodate the special nature of shared ownership, which is in fact a combination of all three.

I welcome the recent changes to the scheme, particularly the 10-year guarantee against certain costs. But the review proposed in Amendment 105 should take as its starting point recent critical reports from the National Audit Office, the HCLG Select Committee report on the affordability of home ownership, and the findings of the Housing Ombudsman on shared ownership.

The NAO found that shared ownership helps many people buy a home who otherwise could not. However, it said the scheme is complex; many buyers do not fully understand its long-term costs and risks; affordability pressures can hinder progression to full ownership, and government lacks the data needed to judge whether the scheme is delivering good outcomes for consumers. While recent reforms have improved transparency and protection, the NAO concluded that important gaps in understanding and oversight remain.

The HCLG report was more critical. The committee found that legal and valuation fees made staircasing expensive. The buyers have to pay all those costs, which can run into thousands of pounds, and do so each time they staircase. It found that rising house prices can make additional shares unaffordable and many shared owners never reach full ownership. It questioned whether the scheme is genuinely delivering the aspiration for full home ownership for many participants.

Then we have the ombudsman. Complaints to the Housing Ombudsman regarding shared ownership properties have surged by nearly 400%, jumping from 324 cases in 2020 to 1,564 complaints more recently. That sharp rise reflects growing resident frustration with hidden costs, building defects and the difficulties of staircasing or selling.

The ombudsman highlighted several reasons for this escalation. Many residents face staggering increase in service charges and rent hikes, which can feel disproportionate. Landlords frequently fail to chase developers or effectively restore defects such as cladding or fire safety issues after they are raised. On the sales process, he found incorrect charges at the point of moving in, miscommunication regarding staircasing—buying larger shares of the property—and general delays from solicitors.

The ombudsman summed up the problems by saying that there is a “mismatch” between the expectation and understanding of the shared owner and the landlord. He concluded that the Government should address the

“fundamental inequities in the way in which shared ownership is designed”—

a point made by my noble friend Lord Jamieson.

Bringing all that together may explain why there is such a low satisfaction rate with shared ownership, and the largest providers have the lowest satisfaction rate—frequently below 30%. Any review should liaise closely with the Shared Ownership Council, Shared Ownership Resources, which has produced several documents indicating how the scheme might be improved and has first-hand evidence of existing pinch points. I very much hope that the Government will take this opportunity to review the scheme, put this form of tenure on a more secure foundation and rebalance the responsibilities as between the talent and the landlord.

[Lord Fuller (Con)]

My Lords, I support my noble friend Lord Young-of Cookham, and also the sense behind Amendments 105 and 106. There is an asymmetry between the risk and the reward involved in shared ownership—all the costs but only half the uplift, if there is one. The risks include very large unexpected costs, which my noble friend raised and I do not intend to repeat. There is 100% of the costs, but only half the capital.

This has been sold to people who one might say, without patronising, are less financially sophisticated, as a lower cost way of getting their foot on the ladder. But the facts bear out the assertion that mortgage costs on the whole would be less than the rent they are paying on the half. It is not necessarily low cost at all; one might go far as to suggest that there has been a degree of mis-selling here.

So, I support Amendment 105, which calls for a review. We cannot carry on as we are. My experience in my own council work when I was the leader showed that the popularity of this tenure has gone down and down. There is now very low take-up. It is possibly a tenure whose time has passed. But the review could reinvigorate it. There is a case for low-cost housing for people to establish and build capital in their society. With this review, which I support entirely, there is the opportunity to try to get it back on track.

[Baroness Thornhill (LD)]

My Lords, because the noble Lords, Lord Jamieson and Lord Young of Cookham, have done such a brilliant job of talking about shared ownership, I will scrap most of my speech. We on these Benches have brought up the vexed subject of shared ownership many times, and I know that the Minister understands and absolutely appreciates that. I pay tribute to the noble Lord, Lord Young of Cookham, who has been a stalwart campaigner for reform. That deserves to be recognised.

If shared ownership is a pathway to home ownership, it is a very rocky one. It is definitely a home owner’s dream that turned into their worst nightmare. I could wax lyrical about automated 1% staircasing, proportional maintenance and a 15% valuation cushion, but I will not. But I am interested in what the Minister has to say, because, unlike the noble Lord, Lord Fuller, I do not believe that this is something that has passed; in high-cost areas, it is essential. Therefore, we would really like to hear something about reform or at least a vision of how it might be reformed.

--- Later in debate ---

Moved by

[Lord Fuller]

89: After Clause 16, insert the following new Clause—
“Protections for adapted social housing(1) This section applies where—(a) a dwelling owned by the local housing authority or a registered provider of social housing has been substantially adapted for occupation by a person with a disability or support need, or(b) a Disabled Facilities Grant has been used to fund substantial adaptations to that dwelling.(2) Before such a dwelling is allocated through the general housing allocation process, the landlord must take reasonable steps to offer the dwelling to a person whose needs would substantially benefit from those adaptations.(3) In this section, “substantially adapted” has such meaning as the Secretary of State may prescribe by regulations made by statutory instruments.(4) A statutory instrument containing regulations under this Act may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.”Member’s explanatory statement
This amendment would require social landlords to protect the pool of adapted housing by giving preference to applicants who could benefit from existing adaptations before allocating adapted homes through the general housing allocation process.

[Lord Fuller (Con)]

My Lords, I am very disappointed that a Bill that purports to protect the supply of new affordable homes fails to consider the texture of protecting certain types of homes, particularly adapted homes. We are an ageing nation, we are getting fatter and nowadays many more premature babies survive into adulthood with life-limiting conditions. As a council leader, I spend about £1.5 million a year adapting homes for this ageing and impaired population. I remember that, when devising our local plan, there was a need for 3,500 adapted homes and supported living units; it was about 10% of the total housing need. It is an important issue, but not one you would gather from this Bill. At Second Reading, I explained how councils might install an adaptation so that a resident with an impairment could live comfortably. I explained that it might be a grab rail or a ramp. In one case, in my council, we spent £75,000 on a complete extension that was required to enable that family to live decently.

In preparation for this debate, and in pursuance of that simple truth, I sat down with Kevin Philcox, the officer responsible for housing standards at South Norfolk Council. He tells me that about half the improvements relate to wet rooms. That is important, because poor personal hygiene is a leading cause of infection and hospital admission among the elderly. Keeping yourself clean down there is not just about dignity; it keeps our hospital wards clean. Half the wet room adaptations are combined with wider doors so that someone in a wheelchair can shower hygienically. Together, cleaning and better access represent half the improvements for disabled facilities, grants and aids and adaptations.

Other examples might be a kitchen with low-level worktops—again, suitable for wheelchair use. Typically, it takes between six and nine months to deliver an adaptation: directionally two to three months for the assessment and the report by the occupational therapist, then a couple of months for the specification contracting and then the construction itself. In my experience, our district council delivered about 150 such projects a year at an average cost of about £10,000 each. I would say that one of my best interventions as a councillor was to ensure that a widow who lived in Mill Road in Seething was able to keep herself clean, by expediting the process of creating a wet room in her social home.

I feel that I have laboured the point, but I tell that story with pride because the simple truth is that we just do not have enough of these adapted homes, and that is why the state invests in them. MHCLG distributes yearly funding of over £720 million to local authorities, and some councils, such as my own, and other RSLs top up that allocation still further. I ensured that we reinvested all the profits from our trading activities to top up that money. So, in total, it adds up to about £1 billion a year. That is a large chunk of change, ensuring that people of all abilities can have a home that they can get into and on with, maintaining personal pride and hygiene.

Here is the problem that my amendment seeks to remedy. When, as so often happens, the tenant passes away and the home is re-advertised, no credit can be given for those expensive and hard-won adaptations when a new family moves in. A new tenant can ask for them to be removed, and they do. It is crazy. It is a waste of money, it reduces the pool of adapted homes, and it is bad for everyone, especially the taxpayer, who funds the work twice: once to put it in and once to take it out. I recall one example where we had built a brand new accessible home with wide doors and low kitchen units, perfect for a wheelchair-bound resident. As it happened, the first tenant was really tall, and by and by he tired of bending down to move the pots and pans around the hob, so the council was obliged by law to rip out that kitchen and put in a normal one—oh dear. That is absurd. It should have been let to a wheelchair user in the first place. So I ask the Minister directly: where are the provisions in the Bill to protect the supply of and investments in adapted homes for the ageing population? Why can we not offer rights of first refusal to those who need help to keep themselves clean down there?

I have heard it said, “Well, this is an allocations issue and we’re not going there in this limited Bill”. I profoundly disagree with that. That is why I asked for this debate to be de-grouped so it could have the importance it deserves without being clouded by other issues. My amendment is about protecting the adapted stock. It is about protecting a £1 billion investment— a significant sum that should not be lightly discarded— and it is about dignity for the most vulnerable in society. So I do not see this as an allocations issue, in the sense that preference should be given to an individual veteran or a certain type of local person. This is about protecting the pool of adapted homes, not least because we are all getting older. It is about ensuring that the wider cohort who carry an impairment have sufficient protected stock for them to have a go at, where they get preference, to make the best of their lives and to make their disabilities more bearable. If the state cannot recognise that, what is it for? Casually dismissing this as an allocations issue is wilful misdirection.

We must grab this sufficiency issue now. We are in Committee. I want to probe the matter more deeply between now and Report. Unless we make some progress, I anticipate that this is an issue on which I will seek to divide the House on Report, on the grounds that the Bill aims to protect the social stock for those in need, and my amendment seeks to achieve precisely that.

I have nearly said enough but I want to give Kevin Philcox, my expert on the ground, who has been around a long time in this space, the final word. He told me that, among the dedicated housing standards professionals, protecting the adapted stock in the way that I propose is both the Shangri-La and the holy grail of social housing policy in this country—it is number one on the wish list. That is quite a statement.

The opportunity to protect that £1 billion a year investment and look after some of the most vulnerable people in our society is before us here and now. If we fail to take it, there is no one else to do it in our place. As it is, there are no powers to protect those adaptations or to give those in need first refusal, but there should be. I beg to move.

[Baroness O’Neill of Bexley (Con)]

My Lords, I thank my noble friend Lord Fuller for raising the important subject of adapted social housing. As we have argued throughout this day of Committee, we must improve how we manage the existing stock of social housing by making better use of what we have and what is being built. It strikes us as entirely sensible that, where possible and appropriate, homes that have been adapted are then given to applicants who would also benefit from those adaptations. That would save social housing providers money and ensure that we made the best use of resources and housing stock. I look forward to the Minister’s response and any details that she might be able to give us on how it might be implemented.

--- Later in debate ---

I hope I have explained what local authorities are already doing, and I kindly ask the noble Lord to withdraw his amendment.

[Lord Fuller (Con)]

I thank the noble Baroness for her comments—I will consider them carefully. Perhaps we could have a meeting between now and Report. All I would say is that I do not think things are quite as clear or clear-cut as she makes them out to be, not least because the problem can arise when someone has been allocated housing and has not necessarily made a full disclosure of their needs, and then, once they are in, they can move things out. I think there is a requirement.

I accept the point about statutory guidance, and I will, I hope, talk to the Minister or officials between now and Report, and consider my position. But in the meantime, I beg leave to withdraw.

Amendment 89 withdrawn.

Moved by

[Lord Fuller]

90: After Clause 16, insert the following new Clause—
“Social purpose of registered providers of social housing(1) The Secretary of State must issue guidance on the social purpose of registered providers of social housing.(2) The guidance must include—(a) promoting tenant wellbeing;(b) effective state management; (c) the prevention and reduction of antisocial behaviour;(d) community engagement;(e) the provision and maintenance of safe and sustainable neighbourhoods;(f) the balance between development activity and social responsibilities of registered providers.(3) Registered providers must have regard to guidance issued under this section.(4) The Secretary of State must lay a copy of the guidance before Parliament.”Member’s explanatory statement
This probing amendment would require the Secretary of State to issue guidance on the social purpose of registered providers of social housing and the wider responsibilities expected of them beyond housing development.

[Lord Fuller (Con)]

As part of my ward work last month, I was surprised that a home in Brooke, in my ward where I live, under the Victory Housing banner, is actually owned by part of a much larger RSL headquartered in Gloucestershire. I mentioned it at Second Reading, and since then it has reached out to me to explain that it actually has a local team to manage these properties. That is reassuring, but the truth remains that the shots are called from miles away. It is a close-to-home example of the way in which the RSL landscape has consolidated, as small RSLs have bought up others and then in turn been taken over still further in the name of economies of scale.

I can understand why this has happened, but scale has not been good for tenants. Tenant reps have been excised from the landscape. There is a lack of local accountability, with national RSLs populating their boards with the great and good from out of town, the consequences being that a focus on local matters such as anti-social behaviour has been relegated to the subs’ bench—and I am conscious that the football starts in a minute.

At Second Reading, I suggested that the Bill could be stronger on anti-social behaviour to demonstrate that the Government are on the side of law-abiding residents, but it is not. That is one of the reasons that have prompted me to introduce Amendment 90 to mandate that and other desirable traits so that the social purpose of social providers is enshrined in law.

I explained how there has been a consolidation of actors in this space, but one of the reasons for liberalising certain financial powers in the Bill—which I do not oppose—is that it will drive financial engineering to new heights. It is the intended consequence of the Bill, but the liberalisation must come with strings attached. It should not be necessary, but it now has become so, to state what the social purpose of RSLs is, not least because there is £35 billion burning a hole in the Government’s pocket. Our job, it seems to me, is to ensure that there is conditionality attached to that largesse if RSLs are to be favoured with cheap money and government underwriting in a way that Berkeley, Norfolk Homes or Redrow—others are available—are not.

In too many cases, RSLs just do not grip the anti-social behaviour that blights the lives of neighbours. I know, because I have seen it myself, that others look away when the criminality is committed. We have the nonsense of community gardens left ungrown and untidy in the name of “No Mow May”, which lasts all year. It is lazy and slovenly, and impacts families miles away from the out-of-towners who sit on these boards.

It is telling that in a briefing on the Bill by the National Housing Federation, which explained that it runs more than 2.5 million homes, supporting 6 million people living in 62% of all the social homes in England, there was not a single mention of social purpose, save to say that the federation was driven by it without explaining what it means. Front and centre it certainly was not.

I know why this has happened. Candidly, among RSLs in particular, there has been far too great a focus on development. That has led to the loss of social purpose. The truth is that as RSLs have become overleveraged, they have been caught out by increases in build, finance and land costs, and there is no financial space for the social purpose—an omission the Bill should correct.

We are in Committee, so I have had a stab at defining what the social purpose could be. It is duplicated in Amendment 110. For those organisations that want to take the Government’s shilling in a way that is not available to other private developers, we need to look at the strings attached. My amendment would enshrine six key principles—I will not list them, in the interests of time, but they are there in the amendment—and regulations to codify them, along with success factors, would follow.

Too many RSLs have taken the wrong path. They have strayed from their original purpose. They have lost sight of the social purpose. Instead, they have been hooked on speculation and property development, on the back of cheap government finance, so we need to bring them back on track. If you take the money, my amendment would provide the hair on the deal. It is not too much to ask. If they want to take the cash in a way that is not available to private operators, they need to take their social responsibilities seriously—and if they cannot, they can go to Barclays, NatWest or Lloyds, or any other bank, just like the others. I beg to move.

[Lord Stoneham of Droxford (LD)]

I am going to speak very briefly—there are matters of life and death about to start in 10 minutes, and I am not going to stand in the way of that—but I am surprised by these amendments. They have been tabled by Conservative Peers going for centralisation and more regulation. We want better people running housing associations; we want good chairs, good chief executives and effective boards. I have to ask: do you want social entrepreneurial spirit, creative drive and a commitment to efficiency in customer services to be suffocated by overregulation, interference and process? We need a balance. I do not believe these probing amendments aim to provide a balance.

--- Later in debate ---

Finally, I turn to Amendment 115, tabled by the noble Baroness, Lady O’Neill. I am not persuaded that this approach is necessary. Since 2024, the regulator has implemented a proactive consumer regulation regime, including routine inspections of large landlords and the introduction of consumer gradings. Mandating tenant-triggered inspections risks cutting across this approach, potentially diverting regulatory resource away from higher-risk providers or issues and undermining the regulator’s ability to act independently. Tenants have clear and established routes to escalate concerns, from the internal complaints procedure to the Housing Ombudsman. The Housing Ombudsman can then refer a complaint to the regulator where they suspect an issue at the level of the landlord. Given these reasons, I kindly ask noble Lords not to press their amendments.

[Lord Fuller (Con)]

My Lords, I am grateful to the Minister for drawing my attention to the guidance published on 9 June. I was not aware of it, and I will look at it closely. However, the title was all about how you deliver more houses. My amendment is not about the number of houses; it is about the social behaviours, because they are not working at the moment. By following the money, we see that, without strings, too many RSLs are focusing too much on development and not enough on doing the right thing. The noble Lord, Lord Stoneham, enumerated a number of things. I could not write them down fast enough, but customer focus, innovation and other things were all there. However, left alone, these things are not happening.

I want a light touch, but, ultimately, I want to establish the principle of the deal: if the RSLs want cheap government money to expand their estates, there need to be strings attached, and those strings go with a rededication of RSLs to the social purpose, rather than focusing on financial engineering, because that is not in tenants’ best interests. On the ground, we are seeing that, when tenants do have genuine concerns, they are not being addressed promptly. The well-being of the estates is not at the forefront of the mind, and that is not good for anybody. So, if you want the money, you can have the hair on the deal; otherwise, go to Barclays. I beg leave to withdraw my amendment.

Amendment 90 withdrawn.