Social Housing Bill (Second sitting)

Debate between Rachel Blake and Matthew Pennycook

Committee stage
Tuesday 27th October 2026 Public Bill Committees

[Matthew Pennycook]

Before I respond to new clause 42, I must address something that the shadow Minister keeps saying, which is that the Bill does not build any new social housing. I have made this incredibly clear, and I encourage him to go and talk to his local authority, although I am not sure its record on social housing is a particularly good one. Local authorities are very clear and have said to us in plain terms that the measures in the Bill will incentivise them to build more social homes. Of course, it is not the case that this piece of legislation is the only means by which we are building new social and affordable housing. We have a £39 billion social and affordable homes programme, which dwarfs anything that the previous Conservative Government allocated in this area, and there is additional funding to come on top of that.

New clause 42 would require the Secretary of State to review income eligibility thresholds for social housing within two years of the Bill’s passage, and every five years thereafter, and to publish the findings and lay them before Parliament. Each review would consider trends over the previous five years in household earnings, regional housing costs, housing affordability and demand for social housing.

I recognise the importance of considering income to ensure that social housing is targeted at those most in need. Indeed, it is a sad truth that the residualisation of social housing over many years—not least because of the engineered decline of it under previous Conservative Governments, with increased right-to-buy discounts explicitly targeted to ensure that more is sold—has meant that, in most cases, it has become targeted to those on very low incomes, but we do not believe that the new clause is necessary.

Eligibility for social housing is considered through the allocations process, and there is no general national income eligibility threshold for social rented housing. As I have made clear, local authorities can take financial resources into account in determining qualification and relative priority under their allocation schemes, subject to statutory requirements, and private registered providers also operate their own lettings polices. This allows local and individual circumstances to be taken into account.

[Rachel Blake]

The Minister has been incredibly generous. I wonder whether he will reflect in his closing remarks on the clause—which repeals what were, in my view, ideological attacks on something that is a very practical solution to a range of market needs and the affordability options open to people—that the previous Government did not enact these measures because they were found to be impractical, and because their implementation would actually cost the taxpayer money due to the risks of an additional administrative burden on local authorities and increasing homelessness; or will he remain as gracious and generous as he has been in our discussions so far?

--- Later in debate ---

[Matthew Pennycook]

New clauses 23 and 24 will strengthen homelessness prevention and ensure that support reaches those who need it most, as quickly as possible.

We owe a debt of gratitude to those who have served in our armed forces. They have given so much of their life in service to their country, and it is right that we support them to have a safe home on leaving active service. The number of former armed service personnel seeking homelessness support is thankfully relatively small, but the Government recognise that those who do so can face challenges, particularly if they seek to establish themselves in an area where they may have no existing local connections. The existing legislation permits a local housing authority to refer someone who is seeking housing support, but does not have any connections to their local area, to the area of another local housing authority where they do.

New clause 23 provides a power for the Secretary of State to define in regulations where that should not apply. We propose to use that power to exempt our armed forces veterans from local connection referrals. That means that there will be no barriers or delays to veterans receiving homelessness assistance. They will be able to seek support from anywhere in the country, and the local authority will be required to provide assistance. This builds on the action that we took last year to exempt veterans from any local connection test that councils might apply to determine who qualifies for an allocation of social housing.

[Rachel Blake]

I strongly welcome the move to remove the local connection test for armed forces veterans. It indicates this Government’s recognition that the local connection sometimes creates barriers for people to making their way off the streets, particularly when they are vulnerable. I welcome the Bill’s acknowledgment of the issue. I hope that there can be an ongoing conversation about the role of local connection tests, particularly regarding rough sleeping and how we support people to stop sleeping rough.

[Matthew Pennycook]

I very much welcome my hon. Friend’s support for this measure. I am more than happy to have an ongoing dialogue about the issue with her, as I do with so many others. It is absolutely right that we look to do everything possible to support our veterans.

I turn to new clause 24. We know that homelessness rarely occurs without warning. Yet too often, people come to the attention of local housing authorities only when they have already reached crisis point. Many of them will have been in contact with different public services long before, but opportunities to identify risk, co-ordinate support and intervene early are often missed. People often face homelessness despite engaging with services that are well placed to help prevent it. The new clause addresses this challenge by introducing new duties on specified bodies to identify and act on a person’s homelessness or risk of homelessness. This supports the Government’s commitment to prevent and relieve homelessness at the earliest possible stage.

The specified bodies will also be required to take meaningful action as part of the existing functions to address or relieve homelessness. The duty will replace and extend the existing duty to refer. It will mandate earlier engagement with local housing authorities, alongside notifying them if someone requires support. It also mandates continued engagement with the local authority to enable it to support an individual as effectively as possible, and will require specified bodies to consider other sources of support for the individual.

Preventing homelessness should not be the responsibility of a single organisation. People at risk of homelessness often have multiple and overlapping needs, including poor health, unemployment, financial hardship or involvement with the justice system. No single service can address these issues effectively alone.

Social Housing Bill [Lords]

Debate between Rachel Blake and Matthew Pennycook

2nd reading
Thursday 10th September 2026 Commons Chamber

[Matthew Pennycook]

Or have I caught him unprepared? I was going to give him a chance there.

To conclude, after years of marginalisation, this Government have emphatically and unashamedly asserted the necessity and value of social rented homes. They are a crucial national asset to be proud of, to invest in, to protect and to maintain. This Bill will protect precious social homes for future generations and incentivise the building of many more of them. It will give social housing providers the confidence they need to invest in new social and affordable homes, and it will support social tenants who are victims and survivors of domestic abuse.

[Rachel Blake (Cities of London and Westminster) (Lab/Co-op)]

There is part of the Bill that the Minister has not referred to: part 2 on a review of shared ownership. Shared ownership is a tenure that provides a great opportunity to get into home ownership for many people, yet far too many people find themselves indebted and in a difficult position because of the service charges imposed on them and the quality of shared ownership. I am particularly interested in the different models of shared ownership that come forward. I am interested to know what this review will cover and how its outcomes might be reflected in any future investment in genuinely affordable homes.

[Matthew Pennycook]

I thank my hon. Friend for her question and her passionate advocacy on behalf of her constituents and others around the country on housing issues generally. On shared ownership, I know the pressures that shared owners face; I see them in my own constituency postbag on a daily basis. We have already taken positive steps to improve the shared ownership model such as introducing new expectations for landlords who bid for shared ownership grant funding to improve fairness and transparency. We are supporting shared owners affected by specific challenges, such as building safety issues. Clause 13, which hon. Members might be aware was added to the Bill in the other place, requires a review of the shared ownership model to be carried out within 12 months of the Bill passing. We do not believe a review is necessary as we are already actively considering specific issues that have been raised in debates, including data and long-term affordability for customers, and we will of course consider what more we can do to act on those issues within our wider programme to improve shared ownership.

Oral Answers to Questions

Debate between Rachel Blake and Matthew Pennycook

Monday 13th April 2026 Commons Chamber

[Matthew Pennycook]

I thank the hon. Gentleman for his well-judged question. Let me reassure him that the Government understand the distinct operational and financial models that underpin specialist retirement housing, and that we recognise the important role that integrated retirement community operators play in providing high-quality housing for older people. As he is hopefully aware, the way in which the retirement housing sector functions in a world in which commonhold is the default tenure, and whether some kind of exemption is required, are among the many questions we are seeking feedback on in our consultation on moving to commonhold and banning leasehold for new flats. I encourage him and any operators in his constituency to engage with that consultation.

[Rachel Blake (Cities of London and Westminster) (Lab/Co-op)]

I thank the Minister for his work on this issue. I am working to make sure that the managing agent Freshwater will meet me to talk about its service charges. Does he agree that it is important that managing agents meet representatives in order to tackle these high levels, and to ensure that they are prepared for this Government’s reforms? I also have a real concern about the impact of high service charges on the long-term sustainability of the leasehold model for people who are choosing to retire into leasehold properties.

[Matthew Pennycook]

I absolutely agree with my hon. Friend. High and rising service charges are putting unprecedented financial pressure on leaseholders. They are also causing more and more issues with mortgages and remortgaging processes. On her point about managing agents: yes, managing agents absolutely should meet with residents who have concerns, either collectively or individually.