Housing (Right to Buy) (Limits on Discount) (England) Order 2024

Lord Jamieson Excerpts

Tuesday 10th December 2024 Lords Chamber

[Lord Porter of Spalding (Con)]

I rise briefly to take part in this debate. Before doing so, I draw Members’ attention to my register of interest: I am a vice-president of the Local Government Association and a director of a fully privately funded affordable housing provider that actively encourages its tenants to buy their homes after five, 10, 15 or 20 years. It is called Rentplus and it does what it says on the tin: you rent at a discounted price and you buy at a discounted price. I work for somebody in the private sector who preaches the possibility that home ownership should be within everybody’s reach.

I will support my noble friend by going through the Division Lobby with him when he chooses to divide, but I will not agree on the reason. My reason is not that the Government are being unreasonable in setting the numbers they have chosen. Putting numbers on a piece of paper is a big mistake when talking about property markets; they are so varied in so many places for so many different reasons that it is better to put a percentage figure. I disagreed with what the last Government did by increasing the discounts to such a level that only really rewarded avaricious grandchildren, not the hard-working tenants who had occupied their homes for a long time. A number of elderly people were pressured into buying their houses for a capital sum that would go to their grandchildren. That should not have happened unless that grandchild had lived with those grandparents.

But, as my noble friend Lord Fuller said, right to buy is probably the single biggest piece of social mobility legislation enacted since the war. It enabled a million families to gain access to capital who never had done in the history of their families. I do not think anybody has done any work, but somebody should do, on how many businesses were set up in this country by people who could leverage capital they had not previously had access to. For a number of reasons—I think about our care sector, as people need access to capital to be able to pay to have care nowadays—this country would fall apart without it.

We should not lose sight of the fact that just over a million homes were lost to councils through right to buy, but 2 million homes were lost to councils through propositions put forward by the Tony Blair Government. Out of the 4 million homes that used to be in council ownership pre-1980, 1 million, so 25%, were lost through right to buy and 2 million—50%—were lost through LSVT. Councils such as my own were summoned to the Government Offices for the Regions to explain why they were not transferring their homes out. So this is not a tribal issue between the red team and the blue team; it is a proposition about whether we believe most people in this country aspire to be home owners. Clearly we do—I think all of us across the Chamber believe that—but do we also believe that people should be able to live in a safe, secure, decent, affordable home even if their financial circumstances mean that they are unable to do that completely unaided at the time they need it?

Right to buy is a good thing, but the right to build is the most important thing, and I agree that the Labour Government are right this time round to allow councils to keep 100% of the receipts, which would otherwise have been lost to the Treasury. Who wants to give money to the Treasury? It is much better for it to be spent locally. If the Labour Government had said that the discounts would be set at a local level by local councils to stimulate demand but not to reward avaricious grandchildren, I would not be going through the Division Lobbies tonight. But that is not what they have said; they have said, “Whitehall knows best. We’ll set an arbitrary figure that’ll have no bearing to the marketplace in a year or two’s time”.

[Lord Jamieson (Con)]

My Lords, I draw Members’ attention to my interests as detailed in the register, including being a councillor in Central Bedfordshire, which has its own housing HRA. I very much support my noble friends’ comments regarding the opportunities that right to buy has given to so many people, but I will highlight the fact that this is an issue not of the sale of council homes but of a complete failure to build.

There are 4.25 million affordable homes—an increase of some 35,000 over the last two years, even with the sale of around 30,000 affordable homes in that period. I am pleased that the last Government had the 100% retention of right-to-buy receipts, which facilitated councils building homes. If we are to build the homes that we need, it is essential to maximise all avenues to building more homes. Allowing tenants to buy their own homes with a reasonable incentive and reinvesting the proceeds in new homes is an opportunity for more, not fewer, homes.

I will give the example of my own council, and I will trump my noble friend Lord Fuller because Central Bedfordshire was at 1.5%, not 1%. I am proud that, as leader of Central Beds, we had a proactive council house building programme. For example, in the period 2021-23 we built 259 homes and acquired a further 76, and we sold 82 under the right-to-buy rules —a net increase of 253. Without the proceeds from right to buy we would have ended up building substantially fewer homes. That would have meant tens of families—possibly even 100—not having a home because we would not have had the right-to-buy proceeds. That is important, because it gives more people the opportunity for an affordable rented home.

I reiterate: the ability to reinvest proceeds from right to buy is an opportunity to provide more, not fewer, homes. The issue is one of getting homes built, which should be the focus, not curtailing opportunity.

[Lord Berkeley of Knighton (CB)]

My Lords, from listening to this debate, I recognise that there is a certain amount of agreement around the Chamber. It seems, as we heard from the noble Lord, Lord Porter, that this is very much a question of balance. Of course right to buy was a wonderful thing for many people, but the right to have a roof over your head is also pretty important. Therefore, if you take it too far and there are no council houses to put vulnerable people into, you will have a real problem. It seems there is a consensus that could lead to the right way forward—namely, the right amount of houses being available for right to buy but preserving enough and, as has been said, building more to protect fragile communities.