Social Housing Bill [HL]

Lord Sahota Excerpts

2nd reading
Monday 1st June 2026 Lords Chamber

[Lord Sahota (Lab)]

My Lords, I am another former council leader. When I was leader of Telford and Wrekin Council in Shropshire, we took a bold and innovative decision to address the growing shortage of good-quality, affordable homes for local people. Rather than simply discussing the housing crisis, we decided to act. We established a wholly owned housing company called Nuplace with a clear and practical purpose to build high-quality homes for rent on council-owned brownfield sites, to regenerate neglected land, to provide homes for local families and at the same time to generate income that would support vital local services. At the time, some questioned whether the council should be involved directly in housing delivery in this way.

However, I am proud to say that the result has more than justified our decision. So far, around 1,000 homes have been built or are in the process of being completed in the near future through this scheme. Tenant demand has remained constantly high, which demonstrates the real need for well-managed, affordable rental homes. Approximately 25 acres of previously underused derelict land has been regenerated, transforming eyesores into thriving communities. Our policy focused on delivering high-standard, energy-efficient properties that local people are proud to live in. I am told that the tenant satisfaction rate remains at around 96%, which is a remarkable achievement by any standard.

The financial benefits have also been substantial—this is some years ago in Telford and Wrekin when I was leader of the council. The scheme has generated more than £8 million in net income for the council, alongside more than £3 million through council tax receipts and new homes bonus funding. At a time when councils across the country were facing severe financial pressures, our innovative housing policy both met social needs and strengthened our council finances. Although I am no longer with Telford and Wrekin Council, I am told that the scheme continues to perform strongly with high demand.

Does my noble friend the Minister agree that councils across the country should seriously examine models such as that of Telford and Wrekin Council? It is not a complete solution to the national housing shortage, but it is certainly a part of the answer. This approach delivers multiple public benefits simultaneously. It increases housing supply, regenerates brownfield land, improves the local environment, creates construction jobs and apprenticeships, supports local economic growth, provides secure homes for working families and generates long-term revenue streams for local authorities. It also demonstrates something very important: that local authorities, when given the freedom and confidence to innovate, can become active partners in solving national problems rather than just waiting for a diktat from central government.

At a time when housing pressure continues to affect so many families, particularly young people and key workers, we should encourage practical, locally driven solutions that combine social purpose with financial sustainability. I hope the Government will continue to support councils that are prepared to take this kind of ambitious and entrepreneurial approach to local housing policies.