Social Housing Bill [HL] Debate
Full Debate: Read Full DebateBaroness Bennett of Manor Castle
Main Page: Baroness Bennett of Manor Castle (Green Party - Life peer)Department Debates - View all Baroness Bennett of Manor Castle's debates with the Ministry of Housing, Communities and Local Government
(1 month, 4 weeks ago)
Lords ChamberMy Lords, I begin with an apology for not taking part at Second Reading. My fellow Green Peer, my noble friend Lady Jones of Moulsecoomb, took part but is unable to be here today so we are doing a little tag team effort. I am afraid that I will not be here on Wednesday, but I expect that she will be back on Report.
I also begin with a little bit of explanation, because the groupings today are technically complicated. Clause 1 would abolish the right to buy. To introduce that involves me opposing various clauses in some subsequent groups. I am opposing Clauses 1 to 9. This is all for technical reasons. I have not pulled this out as a separate group. That is how it was arranged. That is why we have this slightly odd-looking arrangement—it is for technical reasons.
Clause 1 provides for the abolition of right to buy. This is heading in the direction that the Government propose for the Bill but going further. Others who are opposing other elements in the Bill are seeking to reverse the Government’s direction, but to be clear: I am aiming for us to go further. The case for abolishing right to buy is not some theoretical proposal. Scotland and Wales have already done it successfully. We have a central question here: should social housing be treated as a long-term public asset or continue to be sold off during a housing crisis?
In Scotland, right to buy ended on 1 August 2016. It has been estimated that since then, 15,500 social homes in Scotland have been saved for the public. That is a lot of housing—a lot of households living in their community and children being able to continue to go to the same school. The sort of stability that social housing has provided has continued in Scotland, but here in England we continue to see families torn out of their communities and a continual turnover. In Scotland, Dr Mary Taylor, the CEO of the Scottish Federation of Housing Associations, said:
“SFHA is delighted that all forms of the right to buy policy in Scotland have now come to an end and this hasn’t come a moment too soon. Right to buy has had its day and has no place in modern Scotland”.
Wales came somewhat after Scotland with the Abolition of the Right to Buy and Associated Rights (Wales) Act 2018. The Labour Welsh Government said that these sales were increasing waiting times for social housing and reducing the access to affordable housing, which is a statement of the obvious. Ministers also argued—I acknowledge that the Government are doing something about this—that councils and housing associations had the confidence to build without fear that they would immediately lose that housing.
The Labour Welsh Housing Minister at the time, Rebecca Evans, said:
“By protecting the stock of social housing in Wales, we are ensuring it is available for the long term to provide safe, secure and affordable homes for the people of Wales”.
This is no longer an experiment. It is established policy across much of the UK.
We discussed the negative impacts of the right-to-buy policy extensively at Second Reading. I do not intend to go over all the same ground but will highlight a couple of points. I draw first on the public wealth aspect of this. A report from the Common Wealth think tank, Wrong to Sell: How Right to Buy Gave Away Billions in Public Wealth, described right to buy as one of the largest giveaways in UK history. It has led to a situation where one in six private tenants in England rents a former local authority home, with much greater cost and often worse maintenance, without the democratic oversight that you get with council housing.
Considering the overall value of that, the report estimated that homes sold by English local authorities through right to buy are now worth £430 billion in 2024 prices. This is only part of the great privatisation, but this estimate says that this a bit more than the £400 billion that we have lost by selling off public land into private hands. This has also meant a structural shift towards higher-cost private renting. We know how much the cost of private renting is affecting so many households—so many communities—particularly the young. There is also increased long-term housing benefit expenditure. I hear from my right a lot of concern about the welfare Bill—this is one of the very significant drivers of it. There is also the exposure to market volatility.
My Lords, before I address the amendment, perhaps I may declare an interest, and in doing so apologise that I neglected to declare it at Second Reading. One of my daughters works for a housing association. I should have said that at Second Reading; it is in the register of interests. I also add my congratulations to those offered to my noble friend Lady Curran, who is appearing on the Front Bench for the first time today. I have already had a chance to welcome the noble Baroness, Lady O’Neill, to her new role, but I also thank the noble Baroness, Lady Scott. She is not in her place today, but we have worked together for all the time I have been in the House on some very long and complicated Bills, and I am very grateful to her. I would like to put that on the record too.
I thank all noble Lords who have spoken in this short debate. Before I respond on the specific amendment tabled by the noble Baroness, Lady Bennett of Manor Castle, let me say that I am pleased to open this first day in Committee on the Social Housing Bill. As I set out at Second Reading, this is critical legislation that goes right to the heart of our current housing crisis. More than 1.3 million families in need of a home languish on local authority housing waiting lists and the number of children growing up in temporary accommodation continues to climb, so we must act now to turn around decades of losing more social homes than we are building.
This legislation brings forward measures to protect much-needed social housing and incentivise new building, as well as groundbreaking reforms to create a safer and fairer system for those experiencing domestic abuse. At Second Reading, I was clear that this Social Housing Bill sits within a much wider programme of social housing action which clearly demonstrates our Government’s ambition and commitment to deliver the hope for the future that decent affordable social housing represents. Together with the Government’s wider package of reforms and the £39 billion of investment, this Bill will ensure that we can provide decent, safe, secure and affordable housing for generations to come. I look forward to getting into the detail of the Bill’s provisions over the course of Committee, and to engaging with noble Lords on these important measures.
Amendment 1, tabled by the noble Baroness, Lady Bennett of Manor Castle, intends to abolish right to buy. The noble Baroness has also given notice of her intention to oppose all the right to buy clauses, with the exception of Clause 6, standing part of the Bill, making it clear that this amendment accompanies that intention. The Government have no plans to abolish the right to buy. The scheme provides an important route for social housing tenants, many of whom may not otherwise be able to access home ownership, to own their own homes, boosting social mobility and opportunity, and supporting aspiration for families across the country.
Following the commitment in our manifesto, we are reforming right to buy through this Bill. This will deliver a fairer, better-value and more sustainable scheme, where long-standing tenants who have lived in and paid rent on their homes for many years can buy their own homes—but, crucially, where councils can replace them and contribute to the urgent and rising need for social and affordable homes.
The noble Lord, Lord Young, referred to the long called-for ability for councils to retain 100% of receipts, and this Government have facilitated that. By reforming the right-to-buy scheme, we will protect much-needed housing stock and, as the noble Baroness, Lady Thornhill, said, more homes will be available to house those on waiting lists and those who are homeless.
We have committed to the biggest funding boost for social and affordable housing for a generation. I remind the noble Lords, Lord Jackson and Lord Jamieson, that many of the homes sold have never been replaced. Between April 2012 and March 2025, there were around 133,000 council right-to-buy sales, with only around 51,000 homes replaced over the same period. Not only has this depleted much-needed homes for households in need but it has reduced the motivation and confidence of councils to build, and it has restricted broader investment in council housing. I remind the noble Baroness, Lady Bennett, and the noble Lord, Lord Jamieson, that through the Renters’ Rights Act this Government have significantly strengthened renters’ rights, including with regard to rent increases.
We think we have the balance right here, making sure that we address some of the issues around right to buy but also continuing to give that opportunity and aspiration for those who want to purchase their own homes. We therefore oppose this amendment, and I kindly ask the noble Baroness to withdraw it.
My Lords, I thank the Minister for her response and everyone who contributed to this short but passionate Committee debate. I join others in welcoming the noble Baronesses, Lady Curran and Lady O’Neill, to the Front Benches.
I think the Minister agreed with me that right to buy and the way it has been implemented up to now have done enormous damage. We are in agreement about the loss without replacement of so much social housing. I also acknowledge her points about the Renters’ Rights Act, which is a step in the right direction, although the Green Party would like to see this going much further, with rent caps.
In saying that, I respond a little to the comment from the noble Lord, Lord Young of Cookham, for whom I have the greatest respect. He compared the percentage of social renters in the UK with other parts of Europe. Of course, the conditions and the arrangements for private renting in many parts of Europe give people far greater security of tenure and far greater security of life than our arrangements do, even with the Renters’ Rights Act.
A couple of other points from the noble Lord, Lord Young, really need to be referred to. On the idea that housing will be sold and then ploughed back, later we will come to Amendment 16 about buyback. If we see an extension of buyback, it is possible to imagine a home being sold under right to buy and, very quickly, the council buying a house so that another one is available immediately. But the more typical situation will probably be that a house is sold under right to buy and maybe 10 years later a new social housing unit appears as a result of that money. That is a very long gap, and of course there is still disruption to the community. It will not often be an immediate response.
In picking up a couple of points from the noble Lord, Lord Jamieson, I will not start a whole debate about where the rise in house prices comes from, but a study from King’s College London in 2018 estimated that, without foreign investment money coming in, prices would have been 19% lower then. Of course, we saw a great financial liberalisation—part of the whole right-to-buy scenario, where we have turned what had been secure and affordable places for people to live into something regarded primarily as a financial asset.
I agree with the noble Lord, Lord Jamieson, who suggested that social housing should be only a short-term replacement until you move on with your life. We want people to have a secure and affordable place to live for life, if that is what they want. That should be the foundation of our communities. We are not stressing enough the impact on communities of right to buy; we are focused very much on the impacts on individuals. The turmoil that right to buy has brought communities should not be ignored.
My Lords, I outlined in our debate on Amendment 1 why I am opposing all these clauses, specifically Clauses 3 and 4 in this group. My opposition to Clause 2 was because I wanted to go further, not to ensure that there is no double-dipping within households or by individuals. I also make it clear that on Clause 3, I am not opposed to the extension of the period of eligibility and on Clause 4, I am not opposed to anti-fraud measures. There are people opposing these clauses for different reasons, but mine is a desire to stop right to buy altogether.
My Lords, I will speak to the clause stand part notices and to Amendment 16 from the noble Baroness, Lady Pinnock, to which I have attached my name. Just for clarity, for the noble Lord, Lord Jamieson, his reasons and mine for signing the Clause 6 stand part notice are—I think we can safely say—directly opposed. As I have made clear all the way through, all my clause stand part notices are because I was seeking to end right to buy entirely with Amendment 1. I think that is made obvious by my signing of Amendment 16, a buy-back right to buy. This is also known as “buy the supply”, and my honourable friend Siân Berry in the other place has been a particular leader in this area, not surprisingly when you look at Brighton and Hove, which has lost almost a third of its social housing since right to buy came in in 1980.
If you look at the figures across England, by the end of this Parliament we are talking about more than 1.3 million homes lost. What we want to do is get some of those homes back—those homes that were very often built with high-quality build standards, good-sized rooms—a better provision of housing, I dare say, than pretty much anything we are likely to build today. We want to get those homes designed for social housing back into social housing. I note also that my honourable friend—who was previously a London Assembly member, and a member of its housing committee—urged for us to be able to buy back those lost homes.
The noble Baroness, Lady Pinnock, referred to families in temporary accommodation. Of course, this is a huge issue. It is everywhere, but particularly so in London, where we are seeing often very vulnerable families shipped out of the city very far away to produce huge profits for private landlords in far-flung parts of the country. If London could buy back the supply, that would be potentially transformatory, either for permanent homes or for being able to buy back temporary accommodation. It is also worth noting that my honourable friend—for those noble Lords who have not seen it—has a zine out urging us to buy the supply. It is a lovely, cheerful cartoon publication that noble Lords might like to look up.
I want to make one other comment about the state of where we are now. We have, of course, a struggling housing market. Broadly, the average price of homes in England did not change from March 2025 to March 2026. In fact, there has actually been a decrease in the price to May. I note one market commentator said that we were in the strongest buyer’s market we have seen in years. Surely this is a great time for local councils to be able to be the buyers, to start to reverse some of the damage that has been done. The structure of the amendment reflects the limitations in your Lordships’ House of what we can do in terms of directing the Government to spend money. I will put this on the record here to note that my honourable friend in the other place will be going further, but I think that the noble Baroness, Lady Pinnock, has given us a very good start.
My Lords, indeed I agree that my noble friend Lady Pinnock has given us a very good start, and she was quite passionate in what she was saying. I did tell her there would be a “but”, but it is only a very small one. We absolutely agree in principle that the right of first refusal should apply in perpetuity, but I have concerns about how this would work in reality, and I have raised these with the Minister. The noble Lord, Lord Jamieson, outlined some very serious questions and points that I think we would all appreciate being answered, just about the sheer logistics of how this would actually work for buyers as years go down the line. I am worried that there would be unintended consequences and I am looking forward to the Minister’s answer.
My fear is that in reality this will actually be less effective as a means of getting social housing than we might wish it to be. If a council does have a buy-back fund, there absolutely is no reason why it cannot buy houses on the open market, as indeed I did when I was Mayor of Watford. I just think this one sounds like something that is really going to be good and should happen—and I do believe that; I just think there may be unintended consequences, the logistics might be difficult, and it might not be the silver bullet. But because I believe in retaining social housing stock, I will hope that I am wrong about that.
I want to just pull together a few thoughts about the rural amendments, because one thing I think that we have all noticed in relation to the Bills that we have done—first with the noble Baroness, Lady Scott of Bybrook, and now with the noble Baroness, Lady Taylor of Stevenage—rural housing and rural issues do not seem to be given the importance that they absolutely deserve. I am an urbanite but I sit here, time after time, listening to those who know better than me, and colleagues on my own Benches who feel very strongly about this, and I guess my message to the Minister is that the nettle must be grasped on rural issues. I think we would all appreciate seeing a real improvement in that, which is why I found that the amendment of the noble Lord, Lord Cameron, and the noble Lord, Lord Best—as ever—brought clarity and expertise to this group of amendments that I cannot better.
Amendment 20 is actually a modest, targeted fix to stop the right to buy quietly hollowing out our rural communities, which is happening; but I am also going to be a bit controversial, because one thing that I follow very closely with my housing brief is planning issues, and I note that there are very often major planning disputes. In fact, councils have changed control over rural communities’ campaigning: “Stop the housing development in our village. We do not need this sort of housing”. It is really worrying to me that that is often the case, and it is evidentially the case. The nimbys are absolutely going bananas. There is no doubt about that, and I think that somewhere, we need some leadership around those areas. If you do not have a housing estate that has homes for children, then the local school will undoubtedly die.
There are real issues for regenerating our rural communities, and I think that, unfortunately, they are being hollowed out. I feel very much that the need is greater. Somebody mentioned that phrase in relation to rural communities, but I would also say that the consequences of not doing so are of greater significance; for example, the young people who cannot get to the college in the nearest city or big town. The issues around rurality are huge.
Turning briefly to Amendment 17, I think “warden” is a horrible word. I absolutely agree that the Government should change it. I am not sure about “manager”, because I am not sure of the context, but I absolutely understand why they do not want wardens.