Source · Select Committees · Public Accounts Committee
Recommendation 12
12
Rejected
Homes England told us that, under current plans, it forecasts achieving 14,300 homes for social...
Recommendation
Homes England told us that, under current plans, it forecasts achieving 14,300 homes for social rent under the 2016 programme, exceeding its target of 12,500 homes. For the 2021 programme, the Department told us it set a sub-target of 33,500 homes for social rent, which it forecasts meeting.32 Shelter argued that the Department should refocus the Programme to deliver more homes for social rent.33 The Department said that ultimately decisions around tenure are for Ministers to make, and it is the role of officials to ensure ministers understand the trade-offs when setting targets. The Department told us that if it did focus the Programme entirely on social rent within a fixed budget, there would be fewer homes built.34
Government Response Summary
The government disagrees with making an assessment of demand, but will continue to maximise delivery of social rent through a mixed tenure programme, and will confirm the 2021 programme’s capacity to deliver homes for Social Rent as part of a review.
Government Response
Rejected
HM Government
Rejected
3. PAC conclusion: We are concerned that the number of homes being built for social rent is not enough to meet demand. 3. PAC recommendation: The Department should assess how much demand there is for social rent and set out how it will use the Programme to better meet this. 3.1 The government disagrees with the Committee’s recommendation to make an assessment of demand. However, the government will continue to maximise delivery of social rent through a mixed tenure programme. 3.2 The government acknowledges the need for Social Rent homes to support functioning communities, with the right homes in the right places. That was the reason for bringing social rent homes into the scope of the programme in 2018. As the NAO’s report notes, the government already directs the delivery of homes for social rent to unaffordable areas1. The programme’s design incentivises the delivery of social rent homes in areas where they are needed the most through its value for money assessment of bids The government’s recent consultation on national planning policy invites views on how policy can be strengthened to enable local authorities to give greater importance in planning to social rent2. 3.3 The government recognises that there is a demand for homes for social rent across England. However, it is for LAs to assess affordable housing need in their area. In practice, housing developers and LAs often prefer housing developments to include a balance of ownership and rental tenures to promote a mixed tenure community. For this reason, the government believes that the Affordable Homes Programme must continue to support a range of different tenures. 3.4 The government will work with the delivery agencies to confirm the 2021 programme’s capacity to deliver homes for Social Rent as a part of the review cited above in response to recommendation 1. The government will confirm the programme’s ability to deliver an increased proportion of homes for social rent to Parliament at the same time as confirming the programme’s overall delivery targets.