Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 23
23
Accepted
Extend support for local authorities to acquire temporary accommodation, including empty affordable homes.
Recommendation
Local authority owned housing for temporary accommodation is a more cost-efficient means of providing higher quality temporary accommodation for families in the long term. It is unacceptable that some affordable homes are currently sitting empty while families are stuck in temporary accommodation. (Conclusion, Paragraph 90) The Government should extend its support for local authorities to acquire their own temporary accommodation stock through the Local Authority Housing Fund, including by acquiring empty affordable homes delivered through planning obligations. These new homes should be acquired within the local authority’s own area as far as possible. The Government should also consider the issue of empty affordable homes as part of its forthcoming long-term housing strategy with regard to the investment barriers, such as environmental requirements, which are preventing housing associations from taking on new social housing stock. (Recommendation, Paragraph 90)
Government Response Summary
The government accepted the recommendation, increasing the Local Authority Housing Fund by £50 million to £500 million to help local authorities acquire temporary accommodation, including empty affordable homes, within their areas, and committed to publishing the Future Homes Standard to address environmental requirements.
Government Response
Accepted
HM Government
Accepted
The Government agrees with the Committee that the Local Authority Housing Fund can play an important role in enabling councils to acquire properties for use as temporary accommodation. Earlier this year we announced a £50 million increase to the third round of the Fund (LAHF 3), taking the total funding for this round to £500 million (alongside around £30 million of existing funding from earlier rounds of the programme being reallocated). The majority of the additional £50 million will be used to procure better quality temporary accommodation so that local authorities can support local families in need of housing. Local authorities are able to use this funding to acquire homes developed through planning obligations. The Government also agrees with the Committee that homes funded by LAHF should be acquired within the local authority’s own area as far as possible. Our LAHF 3 prospectus makes clear that this should be the case, unless otherwise agreed with both the other local authority and by the Department by exception. The Government has taken further steps to support local authorities to deliver more affordable homes – including via planning obligations. We have permitted councils to keep 100% of the receipts generated by Right to Buy sales, so that they are better able to build and buy new homes. We have also provided flexibility for councils to combine their Right to Buy receipts with Section 106 contributions (this flexibility will be in place until the end of 2025/26 and then subject to review). The Government recognises the particular concerns about reduced appetite from Registered Providers of social housing to buy affordable homes delivered under Section 106 agreements. An important cause of the problem is a reduction in Registered Providers’ financial capacity over recent years, as a result of real terms rent cuts, rising costs and higher interest rates. The Government recognises that Registered Providers need support to build their capacity and make a greater contribution to affordable housing supply. We have consulted on a new five-year rent settlement for social housing under which Registered Providers would be permitted to increase rents in real terms each year. The proposed rent settlement aims to give Registered Providers the certainty they need to invest in new social and affordable housing. The consultation closed on 23 December; we are carefully considering the feedback we received and will respond in due course. In December, the Government launched a new Homes England clearing service to help unblock the delivery of Section 106 affordable housing. This new service aims to help improve the functioning of the market for affordable housing, by supporting buyers and sellers to find each other more effectively. The Government is calling on all developers with uncontracted Section 106 affordable homes to engage proactively with the new clearing service. The Government is also committed to strengthening the existing system of developer contributions to ensure new developments provide necessary affordable homes and infrastructure. Further details will be set out in due course. With regards to environmental requirements, the Government intends to publish the Future Homes Standard later this year. This standard will require new homes to be built with high levels of energy efficiency and low carbon heating. Homes built to the Future Homes Standard will be ‘zero carbon ready’ meaning they will become zero carbon over time as the electricity grid decarbonises, without the need for any retrofitting or further investment.