Recommendations & Conclusions
4 items
11
Conclusion
Twenty-Ninth Report - The Affordable Ho…
Not Addressed
We asked the Department about the number of homes designated for social rent, given social rent is the most affordable for tenants; and the type of tenure most needed. We stressed the human impact that a lack of homes for social rent has. A lack of homes forces people to …
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We asked the Department about the number of homes designated for social rent, given social rent is the most affordable for tenants; and the type of tenure most needed. We stressed the human impact that a lack of homes for social rent has. A lack of homes forces people to live in hostels or private accommodation in which they move around every few years; leading to children having to move school or travel long distances. The Department commented that it was acutely aware of housing pressures across the country and the associated impact on people, but it said that it must maximise what can be achieved from its available resources. It said that while the 2016 and 2021 programmes were very large capital investments, they alone are not sufficient to completely eliminate the housing pressures faced.28 As part of its 2021 business case, the Department modelled the economic benefits of the Programme compared to costs, by tenure and region.29 The Department told us that getting into the high 2s, 3s, 4s and 5s indicates a very strong benefit-cost ratio and an excellent use of public money.30 Compared to other housing tenures, social rent has the highest benefit cost ratio, at 3.4.31
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Government response AI summary
The government acknowledges the need for Social Rent homes and mentions existing policies, but disagrees with the recommendation to assess demand.
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HM Treasury
13
Conclusion
Twenty-Ninth Report - The Affordable Ho…
Not Addressed
We asked the Department about the potential impact of the proposed cap on social rents that it is currently consulting on. The rent cap could prevent housing providers from increasing rents by CPI + 1%, as envisaged.35 Business LDN warn that the Government’s proposed rent cap will leave housing providers …
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We asked the Department about the potential impact of the proposed cap on social rents that it is currently consulting on. The rent cap could prevent housing providers from increasing rents by CPI + 1%, as envisaged.35 Business LDN warn that the Government’s proposed rent cap will leave housing providers with a significant shortfall in their finances resulting in less building of new homes.36 The Department told us that it may introduce a 25 Q 59 26 C&AG’s Report, para 2.2, Figure 5 27 Q 79 28 Qq 47, 49–50, 52 29 C&AG’s Report Figure 5 30 Q 61 31 C&AG’s Report, Figure 5 32 Qq 47–48 33 Written evidence submitted by Shelter, dated September 2022 34 Qq 48, 52 35 C&AG’s Report, para 1.8 36 Written evidence submitted by Business LDN, dated September 20222 The Affordable Homes Programme since 2015 11 cap as tenants could otherwise face unaffordable increases. The Department accepts that lower forecast rent will have a knock-on impact on the Programme, potentially leading to housing providers building fewer homes for social rent. The Department told us it was considering how it could quantify the effect of the rent cap n its consultation response.37 37 Qq 65–68 12 The Affordable Homes Programme since 2015 2 Realising wider objectives Wider government savings
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Government response AI summary
The government acknowledges the need for Social Rent homes and mentions existing policies, but disagrees with the recommendation to assess demand.
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HM Treasury
18
Conclusion
Twenty-Ninth Report - The Affordable Ho…
Not Addressed
The Department did not set out to use the Programme to advance the government’s net zero objectives. The Department and Homes England did not include any specific targets around net-zero for the 2021 programme. Instead, housing providers must comply with existing and future environmental standards set out in the planning …
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The Department did not set out to use the Programme to advance the government’s net zero objectives. The Department and Homes England did not include any specific targets around net-zero for the 2021 programme. Instead, housing providers must comply with existing and future environmental standards set out in the planning design guide and building standards.47 The Department said it expects that housing providers will follow the national design code. Homes England said that the overwhelming majority of homes under the 2016 programme will get an energy performance certificate of B, C or better.48
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Government response AI summary
The government will explore the cost and deliverability of additional net zero requirements for a successor programme, while noting existing steps taken in the 2021 programme.
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HM Treasury
20
Conclusion
Twenty-Ninth Report - The Affordable Ho…
Not Addressed
The National Audit Office found that neither the Department nor Homes England modelled the potential costs of needing to retrofit homes built under the 2021 programme, to meet net zero standards.50 The Department said that the future homes standard, when it is introduced from 2025, will mean that homes after …
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The National Audit Office found that neither the Department nor Homes England modelled the potential costs of needing to retrofit homes built under the 2021 programme, to meet net zero standards.50 The Department said that the future homes standard, when it is introduced from 2025, will mean that homes after this date will not need to be retrofitted.51 The G15 group told us that the future homes standard will add at least £5,000 to the cost of a new home and that existing social housing stock will require wholesale regeneration. The G15 group and Business London warn that retrofitting existing stock will increase strain on funding and resources, potentially limiting new supply.52 Transparent reporting of progress
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Government response AI summary
The government will explore the cost and deliverability of additional net zero requirements for a successor programme, while noting existing steps taken in the 2021 programme.
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HM Treasury