Social Housing Bill [HL]

Lord Holmes of Richmond Excerpts

Committee stage
Monday 15th June 2026 Lords Chamber

[Baroness Eaton (Con)]

My Lords, it is a pleasure to start the debate on this second group of thoughtful and varied amendments. We have just heard a spectacular defence from noble Lords of the right-to-buy scheme, which the Government seem determined to restrict quite drastically throughout the provisions in the Bill. In Clause 1, the Bill proposes to extend the qualifying period for right to buy from three to 10 years. I will focus on Amendment 2 in my name, which is a probing amendment as to the rationale behind this extension.

I already have concerns that tenants of social housing who are able and willing to buy their property should be forced to wait longer. I understand that the Government, in their manifesto, committed to increase the protections on newly built social housing, but this provision would affect existing social housing tenants too. There may be many tenants right now who are on the cusp of reaching the three-year eligibility requirement, with high hopes of finally being able to own their own home, but who will have to wait an additional seven years when the Bill becomes law, unless it is amended. That is a long time to wait and be on welfare. If the Government insist on an extension to the qualifying period, why not extend it to five years rather than 10, as my amendment suggests? Can the Minister explain what evidence base there is behind that number? In addition, exactly how much social housing stock is a 10-year extension expected to protect for us—as opposed to five, say—and how has the impact on existing tenants been assessed, if at all?

We must ensure that 10 years is not just an arbitrary number chosen randomly. If there is a justification, it should be outlined and explained clearly for the House to scrutinise. We must also remember that we are talking about real people living in social housing right now—people with hopes and aspirations, whose rights to buy a property should not be treated carelessly or without thought. What data do the Government have, if any, as to how many tenants are about to reach the three-year qualifying period? Can the Minister please share that data with the Committee? I look forward to hearing the Minister’s response and from other noble Lords who have tabled amendments in this group. I beg to move.

[Lord Holmes of Richmond (Con)]

My Lords, it is a pleasure to take part in this Committee. I apologise to noble Lords that I was not able to be in your Lordships’ House for Second Reading. I declare my relevant technology interests as set out in the register, variously as adviser to the Crown Estate, Endava plc and Simmons & Simmons LLP, and as non-executive director of Avalanche (BVI), Inc and the Avalanche Foundation.

In my set of Committee amendments, I want to assist the Bill by bringing the strands of inclusion and innovation and talent and technology through every possible supportive clause of the Bill. In this group, I speak to Amendments 3, 10 and 13 in my name.

Amendment 3 sets out provisions to establish a digital life-cycle service for right to buy. In doing so, it would provide greater empowerment, knowledge, connection and communication to those who may wish to avail themselves of the right-to-buy service. This would be an effective and important use of digital technology and, through that, could play a positive part in enabling digital inclusion. Critically, the amendment does not seek to rely just on digital; it sets out provisions for alternative means of connection to ensure this life-cycle service could be achieved through systems such as text messaging. Amendment 10 would develop this in the context of fraud requirements, clearly supporting the measures in new Section 124A inserted by Clause 4.

Amendment 13 further seeks to use the benefits of technology to provide an immutable record—an audit trail—which is tamper-proof for all Section 122 applications. In 2017, I wrote a report on blockchain called Distributed Ledger Technologies for Public Good. At that stage, I wanted to set out not just the potential public use cases but the public value cases in which the distributed ledger and other technologies could assist across the state. My fear was that, if these potential use cases and value cases were not set out, the debate would get stuck and, whenever blockchain was mentioned, it would naturally be assumed that it meant just Bitcoin, which had nothing to say on beneficial provision for operations of the state across potentially all government departments and local authorities. Amendment 13 is therefore one such potential use case or value case, where there could be a clear audit trail, available for all, of use to the department, and indeed the regulator, with the safety, security and knowledge that it is a clear, accurate, immutable record of applications and any potential fraud hearings and investigations that have happened around right to buy.

These three amendments look to deploy the benefits of such potential technologies. I believe they would greatly support the provisions set out in the Bill.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I will speak to government Amendments 4, 6 and 122 in my name now and then come back to close at the end, if that is all right with noble Lords.

The Government clearly set out in our response to the consultation on reforming the right to buy that we would prevent existing property owners or those who have previously benefited from the scheme exercising right to buy unless there are exceptional circumstances. This was supported by 91% of respondents to the consultation, including 86% of social tenants who responded. We have already drawn up the latter part of this commitment through Clause 2 of the Bill and intend to add to this by including a provision in new Clause 2 to prevent existing residential property owners exercising the right to buy. The Committee will appreciate that defining residential property ownership is complex, given the many forms that property ownership can take. Capturing this complexity in legal drafting required additional time, meaning that this clause was not present at introduction. Given that the intent behind the right to buy is to enable tenants of social housing to become home owners, preventing existing property owners using the scheme is a fair and rational approach.

We have set out in this amendment what we think is a reasonable definition of a residential property owner. The new clause will apply to anyone who owns a residential property, whether owned outright or with a mortgage. Leasehold and freehold properties will be captured, with exceptions for short-term leases under 21 years, as will joint ownership and any properties owned outside England, including those held in Scotland, Wales, Northern Ireland and abroad. As in Clause 2, exemptions will be made for victims of domestic abuse who have moved from the accommodation that they were occupying for reasons connected to the abuse.

As part of the application process, tenants will be required to declare to the landlord whether they own another property and landlords will be able to check the information that the tenant provides. If tenants are seeking exceptionally to buy under a right-to-buy scheme, where they already own a residential property, because they have been a victim of domestic abuse, they will be required to provide evidence of that to the landlord. Amendment 4 thus follows through on our commitment to exclude existing property owners from using right to buy and is accompanied by Amendments 6 and 122, which are consequential and enable the new clause to operate as intended. I commend these amendments to the Committee.

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[Baroness Lawlor (Con)]

My Lords, I rise to speak to my Amendment 58A in this group. I am delighted to support the other amendments in the group about which the noble Baroness, Lady O’Neill, has spoken, asking the Government for various assessments of impact.

The Government contend that they want to protect the stock of social housing but also to maintain the right-to-buy scheme, but under the Bill tenants are likely to be discouraged from exercising the right to buy by obstacles, delays and uncertainties posed for a renter aspiring to home ownership. My amendment would require the Government to provide on an annual basis, once the Bill comes into operation, an analysis of the income to the public purse as a result of any change in the number of sales, broken down by the numbers sold, the resulting income and additional income from cost savings from overhead and maintenance when a property is sold and no longer a charge on the council. This should equip the Government to assess the scheme and its costs in the round against competing commitments when establishing an order of priority in spending, as Governments must do, and an overall budget. Councils too would have the essential figures to judge how best to meet their competing commitments and responsibilities.

Indeed, for a democratic system such as the UK, Parliament should also be given the full picture to assess matters and judge how the legislation is operating. Above all, the public, who foot the bills through council tax, rates and general taxation, and who face the highest overall levels of certain taxes—income tax et cetera—since records began in 1948, should also know what impact these changes will have in respect of right-to-buy sales. One of the most popular measures passed by any Government since the 1980s, right to buy has enabled 1.9 million council homes in England alone to be sold to tenants so that they can stand on their own two feet.

There are two deeper reasons for my amendment. First, there is the imperative of obliging any Government to take account of the finances of the country in making policy, and the burdens their policies might place on the economy and on the people and businesses who work and pay taxes. Secondly, there is a need to reduce benefit dependency, yet one of the most effective ways of reducing dependency is to help people to buy their own homes. By contrast, one of the most dangerous ways of encouraging dependency is to put increasing numbers of people in the socially rented sector, where already 25% of households fall into the economically inactive category and other inactive categories. This is excluding people who are retired or have a physical impairment. If the Government are serious about reducing dependency, they should not be putting new obstacles in the way of people who want to buy their council houses.

I hope the Government will accept this modest amendment for an impact statement on the results of the Bill. This would ensure that the Government themselves, the councils and everybody who needs to know has the knowledge of the outcomes of the new arrangements, so that we have the evidence to measure the impact of the Bill on right-to-buy sales and associated finances. On that basis we can review the Bill and, if necessary, make changes.

[Lord Holmes of Richmond (Con)]

My Lords, I will speak to Amendments 101 and 104 in this group, which are in my name. Quite simply, they would impose equality impact assessments and ESG assessments, ensuring that, in this important area of work, local authorities and landlords are doing the right thing by tenants but in a way which is equitable across all protected characteristics for the many vulnerable people they have in their care in the social housing sector.

That is critical as, without an EIA, it is impossible to have the evidence that something is occurring. This would be good not only for tenants and those who want to see that the right thing is being done but for landlords and those with responsibilities. The evidence could be brought to bear that they are operating in a way which is equitable and accessible, and they could prove that point. If the EIA demonstrated that that is not the case, action could be taken to address those inequalities.

On Amendment 104 and the ESG assessment, the environmental case is clear for housing with the energy crisis we currently have. Equally important are the “S” and “G”, which often do not get the same focus. Looking at the composition of housing boards here is critically important as well. Quite simply, the two amendments would fit together to ensure that there is clarity around EIA and ESG when it comes to this important area of work.

[Lord Deben (Con)]

I support the amendments in the name of the noble Lord, Lord Holmes, in particular on the ESG framework. The reason is, frankly, that we need better figures about what is happening. I say to the Minister that this is not because I disagree with the Bill—in many ways it is a perfectly reasonable Bill—but because Parliament needs to know more about what happens when we make decisions and what is actually on rather than what we hoped was going to happen. That is why these two amendments are valuable.

I hope the Minister will not be disappointed if I say that I am very much concerned about the protected characteristics. However, I also want to say that I was disappointed that, in her summing up at Second Reading, she did not refer in any way to the problems of rural housing. We talk about protected characteristics, but the way in which this House increasingly ignores what is happening in rural areas is a disgrace. The ESG framework, proposed in Amendment 104, is important here, because there is a particular problem in the countryside with the quality of social housing that is provided. I hope that the Minister will, in future, always think about the particularities and worries of the countryside. Above all, we need to know, because then we can assess whether this is as good a Bill as we hope it will be or whether it will need changes in the future. If we do not have the figures, we cannot possibly make proper statements.

I hope that housing can be more and more understood as something that can be cross-partied agreed, disagreed and argued, and then it will come down to the facts. For far too long we have argued about housing from principles and party-political views and have not got down to where we actually are. The noble Lord, Lord Holmes, has done the Committee a great service in asking that we get facts and know what is actually happening in order that we can make decisions in the future.