Recommendations & Conclusions
26 items
1
Conclusion
3rd Report: Building more social housing
The housing market in England has changed substantially since the last time there was political consensus on the need to build large numbers of social housing. The decades in which social housing was delivered at scale featured different mechanisms than are used today—some of which might be revived and reused …
Government response. The Government does not a prescribe a definition of affordability, it is a complex and ever-changing picture that is better understood and monitored at a local level. However, we recognise that the fundamental purpose of social housing is to provide …
Ministry of Housing, Communities and Local Government
2
Recommendation
3rd Report: Building more social housing
We believe rents are only affordable when they do not exceed one third of household income. There are numerous ways to define this income and other related factors and the Government should identify its preferred method, in consultation with the Local Government Association, the National Housing Federation, Shelter, and other …
Government response. The Government does not a prescribe a definition of affordability, it is a complex and ever-changing picture that is better understood and monitored at a local level. However, we recognise that the fundamental purpose of social housing is to provide …
Ministry of Housing, Communities and Local Government
3
Recommendation
3rd Report: Building more social housing
The Government must publish statistics on net additions of the different tenures of affordable housing per year, taking into account completions, sales, demolitions and conversions. These statistics are currently disparate or not collected. This is especially important to track changes in social rented stock which has been affected by significant …
Government response. The department already publishes overall stock figures for local authority and private registered providers, the latter collected by the Regulator of Social Housing, including some information by social and affordable rent. Data already collected and published includes: • Local Authority …
Ministry of Housing, Communities and Local Government
4
Recommendation
3rd Report: Building more social housing
Reform of the Land Compensation Act 1961 is well overdue. We reiterate the recommendations of our predecessor Committee. The Government should amend the Land Compensation Act 1961 so local authorities and development corporations have the power to compulsorily purchase land at a fairer price. The present right of landowners to …
Government response. On August 6 the Government released its White Paper Planning for the Future, which sets out an ambitious programme of reform for the planning system. This includes proposals to reform the system of developer contributions, replacing the current system of …
Ministry of Housing, Communities and Local Government
5
Conclusion
3rd Report: Building more social housing
We agree with the Public Accounts Committee that the Government missed a crucial opportunity to alleviate the housing crisis through its disposal of public land. While we understand the constraints around managing public money, it is nonetheless short-sighted to sell public land to the highest bidder when social housing providers …
Government response. To help make home ownership affordable for more people, and to help more people be able to rent their own home, we need to deliver more homes. We are seeing encouraging progress in producing more of the homes the country …
Ministry of Housing, Communities and Local Government
6
Recommendation
3rd Report: Building more social housing
The Government’s public land disposal strategy needs a wholesale re-design, not more of the same. We recommend the Government thinks less about disposal, and more about assembly. Homes England should take a central role in co-ordinating public land to be used for social housing, by being tasked with identifying suitable …
Government response. To help make home ownership affordable for more people, and to help more people be able to rent their own home, we need to deliver more homes. We are seeing encouraging progress in producing more of the homes the country …
Ministry of Housing, Communities and Local Government
7
Recommendation
3rd Report: Building more social housing
There is compelling evidence that England needs at least 90,000 net additional social rent homes a year. We recommend that the Government publishes annual net addition targets for the following tenures: social rent, affordable rent, intermediate rent and affordable homeownership. This will improve transparency and accountability of the Government’s record …
Government response. We have supported the delivery of over 486,600 new affordable homes since 2010 despite fiscal constraints and we are determined to do more, which is why we have extended the existing Affordable Homes Programme by one year. This will save …
Ministry of Housing, Communities and Local Government
8
Conclusion
3rd Report: Building more social housing
It is disappointing that the Government does not have a published plan on social housing, nor has its own assessment of social housing need. We regard an estimate of need to be essential to calculating how much investment the Government may need to make to meet social housing need and …
Government response. We have supported the delivery of over 486,600 new affordable homes since 2010 despite fiscal constraints and we are determined to do more, which is why we have extended the existing Affordable Homes Programme by one year. This will save …
Ministry of Housing, Communities and Local Government
9
Conclusion
3rd Report: Building more social housing
The cross-subsidy model has reached its limit. Without grant funding from central Government, providers will be vulnerable to the economic impact of COVID-19. Housing associations have commendably made up for reduced Government grant investment in the last decade by developing homes for sale and investing these proceeds, but the subsidy …
Government response. We have supported the delivery of over 486,600 new affordable homes since 2010 despite fiscal constraints and we are determined to do more, which is why we have extended the existing Affordable Homes Programme by one year. This will save …
Ministry of Housing, Communities and Local Government
10
Conclusion
3rd Report: Building more social housing
A social housebuilding programme should be top of the Government’s agenda to rebuild the country from the impact of COVID-19. The crisis has exposed our broken housing system. Families in overcrowded homes have faced worse health outcomes. Private renters have struggled to meet housing costs. A large social housebuilding programme …
Government response. Due to the current COVID 19 pandemic, the courts suspended possession proceedings on 27 March. On 5 June 2020, the suspension of possessions was extended by 2 months until 23 August 2020. On 21 August it was extended by a …
Ministry of Housing, Communities and Local Government
11
Recommendation
3rd Report: Building more social housing
It will take time to meet social housing need. In the short-term, we support the Government’s intention to improve the experience of tenants in the private rented sector, including on security of tenure, quality of housing, and affordability. We encourage the Government to bring forward legislative proposals as soon as …
Government response. The Government is committed to introducing a package of reforms to enhance renters’ security and improve protections for short-term tenants. This includes repealing Section 21 of the Housing Act 1988 to abolish so-called ‘no fault’ evictions. However, providing tenants with …
Ministry of Housing, Communities and Local Government
12
Recommendation
3rd Report: Building more social housing
The Government should count investment in social housing as infrastructure spending, rather than day-to-day spending. Evidence shows that spending on a long-term social housebuilding programme pays back to the Exchequer over time. Furthermore, such a programme could be counter-cyclical, both protecting and creating jobs during a wider housing downturn caused …
Government response. We have launched the new Affordable Homes Programme, which overlaps with the current programme, to give providers certainty and the confidence to commit to new developments and maintain the provision of affordable homes. While the main funding ends in 2026, …
Ministry of Housing, Communities and Local Government
13
Recommendation
3rd Report: Building more social housing
It is time for the Government to invest so the country can build 90,000 social rent homes a year. We appreciate that even with the funding we set out below, any programme will take time to scale up, but we expect the Government should be able to increase delivery to …
Government response. The Government recognises the need to increase housing supply across all tenures. The Chancellor announced a £12bn investment in Affordable Housing at the Budget in March 2020, which will provide new homes up to 2025/26. The new £11.5bn Affordable Homes …
Ministry of Housing, Communities and Local Government
14
Conclusion
3rd Report: Building more social housing
The sector estimates that £12.8 billion a year in grant funding will be needed to deliver 90,000 social rent homes every year, alongside continued support for affordable rent and shared ownership. Central government grant funding is necessary because the current funding model is not delivering the numbers required to meet …
Government response. The Government recognises the need to increase housing supply across all tenures. The Chancellor announced a £12bn investment in Affordable Housing at the Budget in March 2020, which will provide new homes up to 2025/26. The new £11.5bn Affordable Homes …
Ministry of Housing, Communities and Local Government
15
Conclusion
3rd Report: Building more social housing
We estimate that land value reform could reduce the cost of the programme by up to 40 per cent. By building more social housing on Government-owned public land, the overall cost of the programme could be further reduced. Some of the money could also be redistributed from existing budgets within …
Government response. The Government recognises the need to increase housing supply across all tenures. The Chancellor announced a £12bn investment in Affordable Housing at the Budget in March 2020, which will provide new homes up to 2025/26. The new £11.5bn Affordable Homes …
Ministry of Housing, Communities and Local Government
16
Recommendation
3rd Report: Building more social housing
To ensure the programme can get off to swift start, we recommend the Government allows grant funding to be used flexibly to allow providers to purchase new build homes or homes close to completion from developers which may go unsold in a recession. We suggest the Government looks at the …
Government response. The primary purpose of the Affordable Homes Programme is to generate new supply of affordable housing that would not otherwise be built. Acquisitions of existing homes using programme funding are therefore limited. To mitigate the disruption caused to home building …
Ministry of Housing, Communities and Local Government
17
Conclusion
3rd Report: Building more social housing
We are concerned the Government is letting history repeat itself, rather than learning its lessons from Starter Homes consultation. The Government has not conducted an analysis of the impact of implementing First Homes on the delivery of social housing through section 106 agreements. The Government has not conducted an analysis …
Government response. Government recognises the important role of Affordable Housing and we are committed to increasing the supply of Affordable Homes across all tenures. We are mindful of the trade-off between the level of ambition for First Homes, funded through developer contributions, …
Ministry of Housing, Communities and Local Government
18
Recommendation
3rd Report: Building more social housing
Permitted development rights can be a route to provide fast and cost-effective housing, but given that the Government is aware of concerns around their use, it should publish its review as soon as possible. We remain concerned about the lack of affordable housing obligations and lack of safeguards for quality. …
Government response. Accept. The Government recognises that permitted development rights (PDR) can be a route to provide fast and cost-effective housing. PDRs offer an important contribution to overall housing delivery, but the Government is aware of concerns around their use and is …
Ministry of Housing, Communities and Local Government
19
Recommendation
3rd Report: Building more social housing
It is right that the Government has identified the importance of reforming planning fees to support the capacity and skills of planning departments. It is imperative that local planning authorities have the right resources to deliver the social housing this country needs, and to ensure private developers deliver sufficient social …
Government response. In the Planning for the Future White Paper we are committing to developing a comprehensive resources and skills strategy for the planning sector to support the implementation of our reforms. We will also explore options to introduce a new planning …
Ministry of Housing, Communities and Local Government
20
Conclusion
3rd Report: Building more social housing
We are mindful that the Government expects to implement substantial changes to the planning system in the near future. We will continue to monitor the impact of these changes on social housing supply, as well as scrutinising the reforms more generally. (Paragraph 110) Right to Buy
Government response. Accept. The Government recognises that permitted development rights (PDR) can be a route to provide fast and cost-effective housing. PDRs offer an important contribution to overall housing delivery, but the Government is aware of concerns around their use and is …
Ministry of Housing, Communities and Local Government
21
Conclusion
3rd Report: Building more social housing
Local authorities should receive 100 per cent of Right to Buy receipts. The time limit for using these receipts to fund a replacement should be extended to five years, rather than three. Councils should also be allowed to combine receipts with other pots, like grant funding, to maximise flexibility. Receipts …
Government response. The Government wants to support local authorities to build more affordable homes. The consultation on the Use of Receipts from Right to Buy Sales (receipts consultation) invited views on options to change the rules around these receipts to make it …
Ministry of Housing, Communities and Local Government
22
Conclusion
3rd Report: Building more social housing
The purpose of Right to Buy is to introduce a route into homeownership, and not reduce the number of social homes or to supplement the private rented sector.
Government response. Otherwise, the Government believes that tenants who have bought their homes under the Right to Buy should have the same freedoms as other homeowners, including on letting of the property.
Ministry of Housing, Communities and Local Government
23
Recommendation
3rd Report: Building more social housing
We recommend that, in line with the five year period which covers discount repayment, the Government prevents Right to Buy homes being privately let within five years of purchase. This will require legislating to implement a covenant against letting for a five year period. This is not without precedent: Help …
Government response. As the Committee has said, tenants who exercise their Right to Buy must repay a portion of their discount to their council if they sell within the first five years. The discount repayment is based on the resale price and …
Ministry of Housing, Communities and Local Government
24
Recommendation
3rd Report: Building more social housing
If the Government’s intention is that the Right to Buy should both give people an opportunity to own their homes, but also to provide resources which will then be reinvested into social housing to ensure one-to-one replacements, then consideration must be given to local authorities who are unable to deliver …
Government response. The Government is committed to increasing the supply of all types of homes, including social housing. We recognise the essential contribution from local authorities in the provision of new homes; and we are keen to work with them and bodies …
Ministry of Housing, Communities and Local Government
25
Conclusion
3rd Report: Building more social housing
We caution the Government not to make Shared Ownership Right to Buy a condition of affordable housing grant funding, until our suggested reforms on receipts are implemented. When Right to Buy is implemented for all housing associations, like with the pilots, the Treasury should reimburse housing associations for the cost …
Government response. The Government is committed to introducing a new Right to Shared Ownership on rented homes grant funded through the new Affordable Homes Programme. The Right to Shared Ownership is a separate scheme to the Right to Buy and Voluntary Right …
Ministry of Housing, Communities and Local Government
26
Recommendation
3rd Report: Building more social housing
The Government must keep a careful watch on the rate of replacements. If, despite these reforms, replacements are still below a one-for-one rate, the Government must intervene further. The Government should fully disaggregate its quarterly Right to Buy data by tenure for sales and replacements, and publish a full review …
Government response. The Government is committed to helping people achieve their ambition for home ownership where this is the right option for them; and the Right to Buy forms an essential part of this commitment. The scheme has helped over 2 million …
Ministry of Housing, Communities and Local Government