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My Lords, I am grateful for the opportunity to open this Second Reading on the Social Housing Bill. I look forward to listening carefully to noble Lords’ contributions from across the House. I am particularly conscious that many in this Chamber bring deep experience of housing, local government, safeguarding and the realities facing communities. I therefore would like to begin by recognising the value that this experience brings to our debate and thanking noble Lords for giving the Bill the attention that it warrants.
Before I turn to the detail, I hope the House will allow me a brief personal reflection, because this Bill is really personal for me. This legislation is not abstract; I grew up in Stevenage in social housing. In those days, before everyone carried a phone in their pocket, before the internet shaped the world—I should add that not even every house had a phone; I am that old—and before cars were widely affordable, community was the bedrock of our lives. Part of the unwritten contract for my parents when they accepted the offer of a job and a home in Britain’s first post-war new town, which is 80 years old this year, was that their parents would be welcome when they retired and that their children could, if they wished, be housed as children of tenants.
One of the great strengths of living in Stevenage was the sense of continuity and belonging that it offered. Families put down roots, your parents could live nearby and, in time, you could imagine your own children building their lives in the same area with the possibility, if they needed it, of a secure, affordable home in the community they knew. That sense of security—that social housing could be there not only for you but for the next generation—is part of what social housing at its best can provide: stability, dignity and the foundation on which people can build a life.
Amidst the complexities of modern life and the cost of living crisis, retaining that sense of community is more important than ever. Yet for too many people, it is no longer something they can rely on. In Stevenage, the housing stock has fallen from around 32,000 homes in the 1980s to around 8,000 today, and many former council homes are now let to those on universal credit, costing the public purse more than double when compared with a council home and leaving over 2,000 families stranded on waiting lists. This is a picture that we see around the country.
Over time, social and affordable homes have become scarce. In many places, homes sold have not been replaced. The result is that families who could once have lived side by side, in the same town and neighbourhood, are now too often separated by necessity and forced to move far from the support networks they depend on. That is one of the reasons I care so deeply about this Bill. It is about restoring a sense of security and fairness for tenants today and for communities tomorrow. Everyone deserves to live somewhere decent, safe, secure and affordable, in a community where they feel at home.
That is why the social housing sector plays such a critical role in our system, providing a home to around 16% of all households in England and supporting many of the most vulnerable, including those on the lowest incomes and those living with long-term illness or disability. Yet, for many, that security is out of reach. Today, more than 1.3 million households are on local authority waiting lists for social housing and over 175,000 children are growing up without a stable home. Families are left with little prospect of secure housing in their community. They are forced instead into the increasingly expensive and insecure private rented sector or into temporary accommodation at significant personal cost and growing expense to the public purse.
This country has not built enough social and affordable housing for decades. While nearly one in three new homes in recent years has been social or affordable, overall delivery remains far below the historic highs of the 1950s and 1960s, when housing was delivered at a far greater scale. This decline reflects a combination of factors over recent years. including lower levels of public investment, constraints on providers’ ability to borrow and invest, and wider economic pressures, such as inflation, which have increased the cost of building and maintaining homes. At the same time, the steady and significant loss of social housing stock, particularly where homes sold under right to buy have not been replaced, has further undermined the ability and confidence of providers to invest in building the new homes that communities so urgently need.
The Government therefore placed social and affordable housing at the heart of our manifesto. We have been clear that addressing these long-standing challenges requires not just incremental change but a sustained programme of renewal, bringing together investment, reform and delivery across the sector. The priority of this Government remains to deliver the biggest increase in social and affordable housing in a generation, alongside a transformational and lasting change in the safety and quality of social homes. The delivery of these commitments is well under way.
In 2025, we set out a clear five-step plan to deliver a decade of renewal for social and affordable housing. First, we are delivering the biggest boost to grant funding in a generation through the £39 billion 10-year social and affordable homes programme to support social housebuilding at scale. Secondly, we are rebuilding the sector’s capacity to borrow and invest, supported by a stable 10-year rent settlement. Thirdly, we have established a more effective and stable regulatory regime by updating the decent homes standard, implementing new minimum energy-efficiency standards, and the passing of Awaab’s law to drive up the safety and quality of homes for tenants. Fourthly, we are reinvigorating council housebuilding, which this Bill directly supports, recognising the central role of councils in social housing delivery. Fifthly and finally, we are strengthening our partnership with providers and investors to unlock capacity and accelerate delivery, and with tenants themselves to guide our reforms—including addressing the social housing stigma that tenants highlight as a key priority.
This Bill forms one targeted part of this wider programme of renewal, making the necessary legislative changes to underpin our reforms. We have already given social housing providers the long-term certainty and stability they need to dial up their housebuilding ambitions, through grant funding, long-term certainty about their incomes, clear and final quality standards, and specialised support for councils. We now need to deliver the parts of our decade of renewal plan which require primary legislation. The Bill will protect the number of social homes available to those in need and, in doing so, incentivise the building of more social rented homes. It will create a fairer system, with stronger protections for tenants who are victims of domestic abuse. It will reduce unnecessary bureaucracy and clarify the statute book so that providers can invest in new social and affordable homes with confidence.
Taking each of these objectives in turn, I turn first to protecting homes and enabling new supply. Right to buy has long provided an important route into home ownership, helping many social housing tenants achieve greater security and a tangible stake in their community. Since its introduction, it has supported more than 2 million households to buy their homes and realise the benefits of home ownership. But—and this a very big “but”—too often the homes sold have not been replaced. This has led to a steady loss of social housing stock, reduced the availability of genuinely affordable homes, and weakened councils’ confidence and capacity to invest in new supply, particularly where homes are sold and do not return to the sector.
It cannot make sense for a council to invest in building a new home and then for a qualifying right-to-buy tenant to move in and purchase that home for significantly less than it cost to build. The Bill therefore builds on the existing tranche of reforms that the Government have already made to the right-to-buy scheme. The measures will continue the mission to deliver a fairer and more sustainable scheme, one that continues to support long-standing tenants to buy while ensuring that councils can replace what is sold and better protect existing social homes to meet future housing need. We will increase the eligibility period from three years of tenancy to 10 years, which better reflects current practice and ensures that the scheme is targeted at those with a long-standing connection to their home. We will also better align discounts with cash caps and introduce a 35-year exemption for new-build homes, protecting new supply and giving councils the confidence to invest in homes for the long term.
Alongside this, the Bill introduces a new requirement for private providers of social housing to notify their local authority and other potential buyers before selling a home. This will maximise opportunities to retain homes within the social housing sector. Taken together, these reforms will shift the trajectory of the system from one where stock has been gradually depleted to one where it is protected and can begin to grow again. These measures are not about undermining aspiration but about ensuring that it is delivered in a way that is fair, balanced and sustainable, so that future generations have the same opportunities as those before them. They are designed to ensure that the sector is larger in the future, not smaller, and more capable of meeting need, not less.
Secondly, on the protection of tenants who are victims of domestic abuse, all tenants deserve safety and stability but those experiencing abuse face acute risks and, too often, must choose between staying in their home and continuing to suffer that abuse, or leaving and risking homelessness. The Bill strengthens protections to help victims remain safely in their homes where possible or move to suitable alternative accommodation where necessary. These measures form part of the Government’s wider commitment to tackle violence against women and girls, ensuring that the housing system supports rather than frustrates a victim’s route to safety and recovery. This sits alongside wider government action to improve quality standards, strengthen tenant voice and ensure that the sector works in the interests of those it serves.
Thirdly, the Bill reduces unnecessary bureaucracy and clarifies the statute book, enabling councils and providers to invest with confidence. It repeals unimplemented and unworkable provisions from previous housing legislation, including requirements to sell high-value homes, impose fixed-term tenancies by default and charge higher rents to higher-income tenants. It also streamlines the outdated consents process so that councils can make more decisions about the management of their social homes without having to get approval first. These changes bring clarity and reduce barriers to delivery, setting up the social housing system for the ambitious future we are working towards.
Social housing is an essential part of a functioning housing system. It provides security for families, supports communities, reduces homelessness pressures and, when done well, represents good value for the taxpayer over the long term. This Bill is a vital part of our reforms, but legislation alone cannot deliver the decade of renewal we want to see across the quality and supply of social housing. As I have said, this Bill is one targeted part of a comprehensive and ambitious plan that the Government are already delivering through record investment into new social housing; through new modern and robust standards to improve housing quality and safety and to strengthen tenant engagement and landlord accountability; and through working with the regulator and the sector to ensure that the system is stable and investible. Ultimately, the Bill is grounded in the everyday reality of families who need secure homes, in the practical requirements of councils and providers that need certainty to build so that future tenants can access social homes, and in the principle that the state has a responsibility to ensure that safe, secure and affordable housing is available to those who need it.
In the course of this debate, I know that noble Lords will rightly scrutinise the detail—how reforms are implemented, how we safeguard fairness and how we ensure that the sector can deliver—and I welcome that scrutiny. But I hope that the House will also recognise the central purpose of this Bill: to strengthen tenant protections for victims of domestic abuse, to clear away barriers that prevent investment and delivery, and to protect and grow the social housing available across the country. I commend the Bill to the House.
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My Lords, I declare my interest as vice-president of the Local Government Association and of the National Association for Local Councils.
The Social Housing Bill attempts to address an important issue across many local authorities: namely, that we are not building enough social housing. Yet this Bill goes about this issue in completely the wrong way. There are, of course, some measures that we welcome. In particular, we welcome the Government’s efforts to give landlords and the courts more powers to protect tenants who are victims of domestic abuse. It is absolutely crucial that victims do not fall through the cracks of the system, and we will support efforts to strengthen the Bill in this regard.
However, for the most part, this Bill’s focus is not on the development of new social housing; it merely moves the goalposts on the existing housing stock. This Government came to power on specific promises in their manifesto to
“prioritise the building of new social rented homes and better protect our existing stock by reviewing the increased right to buy discounts introduced in 2012 and increasing protections on newly-built social housing”.
The first part of that pledge promises to prioritise the building of new socially rented homes, yet this is not what is prioritised in the Bill before us. Instead, the Bill goes into tweaking overdrive on the right-to-buy scheme. While we recognise the Government’s promise to review the discounts introduced in 2012, other provisions in the Bill represent an all-out attack on the right-to-buy scheme: a key Conservative legacy that has helped so many own their own home and has transformed social mobility across this country. Indeed, I heard the Minister describe the right-to-buy scheme as a “leaky bucket”. For a council that fails to build enough social housing, this may indeed be its point of view, but that is not whose side we are on. We on these Benches are not on the side of failing councils; we are on the side of hard-working families who do not want to be dependent on the state forever.
To be clear, we do not dispute that we need more social housing. Our population has grown rapidly, and development has not kept up with that demand. Under this Government, more landlords are exiting the market; unemployment is on the rise, especially for young people; and more and more people may be forced to look for social housing. But what do they find? They find the First Lady of Sierra Leone, who otherwise occupies a presidential palace. They find that social housing is being taken up by non-UK nationals, as was highlighted in the “Alternative King’s Speech”. Approximately 33,000 new social tenancies each year are going to households where the lead tenant is a non-UK national. At the same time, the Government invest around £4 billion annually to deliver roughly 30,000 new social homes. That is neither sustainable nor fair for British citizens.
According to the 2021 census for England and Wales, 72% of those who identified as Somalis live in social housing in the UK. That is an example of a dependency culture right before our eyes. This is not why the British taxpayer pays tax. This is not a functioning safety net, nor is it a welfare state working for its own citizens. Moreover, it is evidently not the right-to-buy scheme that is the problem here. We Conservatives know the solution. We need to build more new social homes for local people, not restrict their opportunities for home ownership.
We need the opportunity of right to buy, but at least one new home must be built with the money from the right-to-buy sale. If you do this, it is a win-win outcome. We need an honest and mature conversation about whom social housing is for and what the state can afford. We need to recognise that it is a finite resource and should be reserved for those who truly need it, without needlessly trapping people into welfare indefinitely and with no way out. We also believe that councils should have the powers to decide who to prioritise, such as those with existing connections to their local area, or veterans who have done so much for our country.
Reacting to the King’s Speech at the start of this Session, one Labour MP summed it up perfectly: “This is incrementalism”. That is exactly what we are seeing with this Bill before us now: tweaking with a successful scheme in order to weaken a proud Conservative legacy, rather than solving the problems the country faces today. This is red meat to appease Labour Back-Benchers in the other place, who—let us be honest—would rather see the right-to-buy scheme abolished altogether.
This is not serious policy direction, let alone a vision. This House and the British people deserve better. I repeat that there are measures in this Bill that we welcome, particularly to protect victims, and there are certain measures that we, of course, recognise as manifesto commitments. But we have serious concerns about significant aspects of this Bill: its implementation and commencement, the powers being handed over to the Secretary of State and all that is currently absent from the Bill to properly and adequately address the problems we face.
Where are the measures to keep larger social housing providers accountable to their local communities, for example? How can we make shared ownership schemes more workable in practice? How can we enable councils to have more choice over what works best for their residents? I look forward to hearing the contributions and insights of other noble Lords across this House on how we can make this a better Bill for the other place, and I look forward to engaging constructively with the Minister throughout the passage of the Bill.