Social Housing

Lord Kennedy of Southwark Excerpts

Tuesday 16th June 2020 Lords Chamber

[Lord Greenhalgh]

My Lords, the definition of “affordable” is certainly not an easy one. While the Government have not set a specific percentage of the incomes that people in social housing should be spending on rent, as suggested, the formula is such that it is typically around 50% to 60% of market rents.

[Lord Kennedy of Southwark (Lab Co-op) [V]]

My Lords, I declare my relevant interest as a vice-president of the Local Government Association. The cost of rent in the social housing sector has more than trebled over the past 40 years. This has pushed up the cost of living and made family finances harder. The Joseph Rowntree Foundation has previously discovered a strong link between the cost of rents in the housing sector and levels of poverty. What assessment have the Government made of the actual affordability of the limited social housing which remains and levels of poverty?

[Lord Greenhalgh]

It is fair to say that the differential between social and private rents has narrowed over a considerable number of decades. The policy of rent restructuring was started under the previous Labour Administration. However, as I said in response to a previous question, social rents continue to be at or around 50% to 60% of market rents. We are seeing a rise in rents overall, whether in the private or social sector. At this stage, we can say that being at around half the private sector level is a considerable discount in rent, although rents have risen dramatically overall.