PARLIAMENTARY DEBATE
New Homes for Social Rent - 5 November 2018 (Commons/Commons Chamber)

Since 2010, we have delivered over 378,000 new affordable homes, including 129,000 for social rent. We are investing over £9 billion in the affordable homes programme to deliver more than 250,000 new affordable homes, including at least 12,500 for social rent.

There are thousands of households languishing on Dudley’s waiting lists. I meet families every single week who are desperate for a home of their own. Funding for new affordable homes has fallen from over £4 billion in 2009-10 to less than £500 million last year, and the amount of social housing built for rent is actually falling to its lowest level since the war. In that context, what hope do my constituents have of the decent, secure and affordable home that they dream of?

As the hon. Gentleman will know, we are throwing literally everything we have got at the housing market at the moment in the hope that we can build the homes that everybody in the country needs. In particular, in the social sector, we have increased the size of the affordable homes programme. We have reintroduced the idea of social rent; removed the housing revenue account borrowing cap for local authorities; and are setting long-term rent deals for councils and housing associations, enabling them to plan. We have also committed funding beyond 2022 for housing deals and partnerships with housing associations, which we think will deliver significant numbers of houses. It must be remembered that the Labour Government the hon. Gentleman supported induced local authorities to get out of house building. I was a councillor at the time. We were offered large amounts of money to get rid of our housing stock. That has to end. We want councils to start building to address exactly the needs he raises.

In Chelmsford, we are building a new garden community of 10,000 homes, more than one in four of which will be affordable, but the council wants to do more. What measures will there be to allow councils that do not have a housing revenue account also to take advantage of the new schemes that will enable them to borrow and build their own properties?

My hon. Friend is right. Quite a number of local authorities, having been induced, as I say, to get out of the house building industry and home-owning function, do not have housing revenue accounts. At the moment, if they construct, build or own more than about 200 council homes they have to open a housing revenue account. We hope that the new freedom we have introduced will enable councils to create innovative partnerships with other social housing providers to build the next generation of council houses.

The net number of social homes for rent built in the last financial year was 7,000, so we are losing a large number of these homes. We all agree that we need a lot more social homes for rent. In order to build more, will the Minister consider local authorities being given first right of refusal when public land comes up for sale, with a sale price based on current use rather than a speculative development price?

I am engaged in an intensive amount of activity on the subject of public land with my ministerial colleagues and those elsewhere. Hon. Members will have seen that we have recently changed the rules so that local authorities can dispose of their own public land at less than market value if they deem there is a social need to do so. Whether or not we can give them first refusal on acquiring that land will depend on their ability to deliver the homes that people need. I am very focused on numbers of homes rather than principles of disposal.

Our policies on affordable homes are almost entirely focused on affordable homes to rent. Does my hon. Friend agree that we should also deliver more affordable homes to purchase?

My hon. Friend is one of the most innovative thinkers in housing policy generally, certainly on the Conservative Benches—not that there is much innovation on the Labour Benches, but there we are. He points to an area where there is strong demand. Very large numbers of people who would otherwise be tenants have a strong desire to own, and we would love to see them owning on a discounted basis. Hon. Members will have seen in the Budget the announcement of funding for neighbourhood plans to enable an allocation of discounted homes for sale, particularly in rural areas, and I would be keen to explore the idea further with my hon. Friend.

I have no reason to think that the hon. Member for Thirsk and Malton (Kevin Hollinrake) is anything other than an innovative thinker on this and other matters, but it might be of interest to people to know that he is also a distinguished estate agent.

You rather took the wind from my sails there, Mr Speaker.

The Minister refers to housing associations, and it will not have escaped his notice that the chief executives of housing associations earn on average comfortably more than the Prime Minister, with the upper decile trousering salaries in the eye-watering range of £250,000 to £400,000. Is the Minister entirely comfortable with that?

One issue that we are considering as part of our work on the social housing Green Paper is whether the tenant voice is heard strongly enough at the highest levels of housing associations. We must remember that some of these organisations are extremely large. The largest ones are huge and complex, looking after many hundreds of thousands of people, and the individuals who run them shoulder enormous responsibility and, indeed, risk. It is for those boards, suitably informed by the tenant body, to make decisions about remuneration.