Long-term delivery of social and affordable rented housing

Housing, Communities and Local Government Committee Closed Inquiry
Opened: 4 Mar 2020 Closed: 31 Dec 2020 Parliament page
The Housing, Communities and Local Government Committee has re-launched its inquiry to examine the long-term delivery of social and affordable rented housing. The Government has set a target of delivering 300,000 new homes per year by the mid-2020s. However, current expectations mean that as little as 3% of this target … Read more
18 Recommendations
8 Conclusions
1 Report
2 Oral sessions
6 Letters
2 Events
Activity timeline 10 events
19 Nov
2020
Correspondence
20 Oct
2020
Correspondence
14 Oct
2020
Report published
27 Jul
2020
Report published
8 Jul
2020
Correspondence
23 Jun
2020
Correspondence
12 Jun
2020
Correspondence
12 Jun
2020
Correspondence
8 Jun
2020
Oral evidence
9 Mar
2020
Oral evidence
Oral evidence sessions 2 sessions
8 Jun 2020
View on parliament.uk
Oral evidence
Nick Walkley · Homes England Rt Hon Christopher Pincher MP · Ministry of Housing, Communities and Local Government Tom Copley · Greater London Authority Tracey Waltho · Ministry of Housing, Communities and Local Government
9 Mar 2020
View on parliament.uk
George Clarke Lynnie Hinnigan · Liverpool City Council Philip Glanville · Local Government Association Rachel Blake · London Borough of Tower Hamlets Richard Johnson · Cambridge City Council
Title HC No. Published Items Response
3rd Report: Building more social housing HC 173 27 Jul 2020 26 Responded
Recommendations & Conclusions
26 results
1 Conclusion Not Addressed
3rd Report: Building more social h…
The housing market in England has changed substantially since the last time there was political...
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 … Read more
Government Response
The government's response focuses on current definitions of affordability and existing social housing programmes, which does not directly address the Committee's conclusion regarding historical market changes and the role of political will in delivering social housing.
Ministry of Housing, Communities and Local Government
View details
2 Recommendation Rejected
3rd Report: Building more social h…
We believe rents are only affordable when they do not exceed one third of household...
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 … Read more
Government Response
The government rejects the recommendation to identify a preferred national definition of affordability linked to local incomes, stating it does not prescribe such a definition and that affordability is better understood at a local level through existing frameworks.
Ministry of Housing, Communities and Local Government
View details
3 Recommendation Accepted in Part
3rd Report: Building more social h…
The Government must publish statistics on net additions of the different tenures of affordable 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 … Read more
Government Response
The government lists several types of data it already collects and publishes related to housing stock and sales, and commits to investigating the feasibility of publishing more comprehensive data on affordable housing to meet the full scope of the recommendation.
Ministry of Housing, Communities and Local Government
View details
4 Recommendation Deferred
3rd Report: Building more social h…
Reform of the Land Compensation Act 1961 is well overdue.
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 … Read more
Government Response
The government did not commit to immediate amendment of the Land Compensation Act 1961, but it stated its intention to publish proposals in the Autumn for consultation, including potential further reforms to the land compensation regime to make it fairer and easier to reach agreement.
Ministry of Housing, Communities and Local Government
View details
5 Conclusion Acknowledged
3rd Report: Building more social h…
We agree with the Public Accounts Committee that the Government missed a crucial opportunity to...
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 … Read more
Government Response
The government acknowledged the housing shortage and its commitment to increasing home supply, outlining planning reforms and a new cross-government strategy to manage and release public land for better use, including home building.
Ministry of Housing, Communities and Local Government
View details
6 Recommendation Acknowledged
3rd Report: Building more social h…
The Government’s public land disposal strategy needs a wholesale re-design, not more of the same.
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 … Read more
Government Response
The government outlines its efforts to increase overall housing delivery through planning reforms and a new cross-Government strategy for public sector land release, but does not commit to Homes England taking a central role in coordinating land specifically for social housing or to reforming the Land Compensation Act 1961 as recommended.
Ministry of Housing, Communities and Local Government
View details
7 Recommendation Rejected
3rd Report: Building more social h…
There is compelling evidence that England needs at least 90,000 net additional social rent homes...
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. … Read more
Government Response
The government explicitly states that it does not place a specific figure on the annual number of affordable houses which need to be built. It reaffirms commitment to increasing supply and building the right homes, supported by the new £11.5bn Affordable Homes Programme.
Ministry of Housing, Communities and Local Government
View details
8 Conclusion Rejected
3rd Report: Building more social h…
It is disappointing that the Government does not have a published plan on 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 … Read more
Government Response
The government does not commit to producing a published plan or its own assessment of social housing need, stating that it does not place a specific figure on the number of affordable houses needed annually, but is committed to increasing supply through existing programmes.
Ministry of Housing, Communities and Local Government
View details
9 Conclusion Accepted
3rd Report: Building more social h…
The cross-subsidy model has reached its limit.
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 … Read more
Government Response
The government addressed the concern about grant funding by outlining significant investment in affordable housing, including extending the existing Affordable Homes Programme and launching a new £11.5 billion programme to deliver up to 180,000 affordable homes.
Ministry of Housing, Communities and Local Government
View details
10 Recommendation Accepted
3rd Report: Building more social h…
A social housebuilding programme should be top of the Government’s agenda to rebuild the country...
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 … Read more
Government Response
The government accepted the call for prioritising social housebuilding, detailing measures taken to protect renters during COVID-19 and highlighting the launch of the new Affordable Homes Programme to enable continued building.
Ministry of Housing, Communities and Local Government
View details
11 Recommendation Accepted
3rd Report: Building more social h…
It will take time to meet social housing need.
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 … Read more
Government Response
The government commits to introducing reforms to enhance renters’ security, including repealing Section 21, and will bring forward legislative proposals once the pandemic urgencies pass. It also highlights existing enforcement powers for local authorities, awarded £6.7 million in grant funding, and is reviewing the Housing Health and Safety Rating System.
Ministry of Housing, Communities and Local Government
View details
12 Recommendation Not Addressed
3rd Report: Building more social h…
The Government should count investment in social housing as infrastructure spending, rather than day-to-day spending.
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 … Read more
Government Response
The government details the new Affordable Homes Programme and its extended funding timeline, but does not address the recommendation to count social housing investment as infrastructure spending rather than day-to-day spending.
Ministry of Housing, Communities and Local Government
View details
13 Recommendation Accepted in Part
3rd Report: Building more social h…
It is time for the Government to invest so the country can build 90,000 social...
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 … Read more
Government Response
The government has announced a £12bn investment, including an £11.5bn Affordable Homes Programme aiming to deliver up to 180,000 affordable homes by 2025/26, with half designated for Affordable and Social Rent, but does not commit to 90,000 social rent homes per year.
Ministry of Housing, Communities and Local Government
View details
14 Conclusion Accepted in Part
3rd Report: Building more social h…
The sector estimates that £12.8 billion a year in grant funding will be needed to...
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 … Read more
Government Response
The government commits £12bn for Affordable Housing until 2025/26, aiming to deliver up to 180,000 homes, with half designated for Affordable and Social Rent. This provides substantial funding but is not at the estimated annual level suggested by the sector.
Ministry of Housing, Communities and Local Government
View details
15 Conclusion Acknowledged
3rd Report: Building more social h…
We estimate that land value reform could reduce the cost of the programme by up...
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 … Read more
Government Response
The government acknowledged the need to increase housing supply and outlined its commitment to a £12bn investment in affordable housing, including a new £11.5bn Affordable Homes Programme to deliver up to 180,000 homes, with half designated for Affordable and Social Rent.
Ministry of Housing, Communities and Local Government
View details
16 Recommendation Not Addressed
3rd Report: Building more social h…
To ensure the programme can get off to swift start, we recommend the Government allows...
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 … Read more
Government Response
The government explains that the Affordable Homes Programme's primary purpose is new supply, limiting acquisitions of existing homes. While it mentions extending existing programmes due to Covid-19 and monitoring the market, it does not commit to allowing flexible grant funding for providers to purchase unsold new build homes.
Ministry of Housing, Communities and Local Government
View details
17 Recommendation Accepted in Part
3rd Report: Building more social h…
We are concerned the Government is letting history repeat itself, rather than learning its lessons...
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 … Read more
Government Response
The government acknowledges concerns about the impact of First Homes on social housing delivery, stating they set a minimum 25% requirement for First Homes from developer contributions to balance provision. A new pilot programme for 1,500 First Homes will be delivered through the Affordable Housing Programme.
Ministry of Housing, Communities and Local Government
View details
18 Recommendation Acknowledged
3rd Report: Building more social h…
Permitted development rights can be a route to provide fast and cost-effective housing, but given...
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 … Read more
Government Response
While the government states 'Accept' and acknowledges concerns regarding permitted development rights (PDRs), it only states that it is 'considering the findings of the review' and carefully reviewing PDRs as part of wider planning reforms, without committing to publishing the review as soon as possible.
Ministry of Housing, Communities and Local Government
View details
19 Recommendation Deferred
3rd Report: Building more social h…
It is right that the Government has identified the importance of reforming planning fees to...
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 … Read more
Government Response
The government commits to developing a resources and skills strategy for the planning sector and will explore options to introduce a new planning fee structure to properly resource local planning authorities. This defers the specific recommendation to devolve fee setting to local authorities.
Ministry of Housing, Communities and Local Government
View details
20 Conclusion Acknowledged
3rd Report: Building more social h…
We are mindful that the Government expects to implement substantial changes to the planning system...
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 … Read more
Government Response
The government states it 'accepts' the observation, recognising concerns around permitted development rights and confirming it will continue to monitor their impact as part of wider planning reforms.
Ministry of Housing, Communities and Local Government
View details
21 Recommendation Deferred
3rd Report: Building more social h…
Local authorities should receive 100 per cent of Right to Buy receipts.
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 … Read more
Government Response
The government is considering its response to a consultation on Right to Buy receipt rules, which will be published in due course. It notes that local authorities currently have freedom to determine housing needs and tenure of replacements.
Ministry of Housing, Communities and Local Government
View details
22 Conclusion Rejected
3rd Report: Building more social h…
The purpose of Right to Buy is to introduce a route into homeownership, and not...
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
The government rejects the implication that Right to Buy should not lead to homes supplementing the private rented sector, stating that tenants who have bought their homes should have the same freedoms as other homeowners, including letting their property.
Ministry of Housing, Communities and Local Government
View details
23 Recommendation Rejected
3rd Report: Building more social h…
We recommend that, in line with the five year period which covers discount repayment, the...
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 … Read more
Government Response
The government rejected the recommendation, stating that Right to Buy tenants should have the same freedoms as other homeowners, including the ability to let their properties.
Ministry of Housing, Communities and Local Government
View details
24 Recommendation Accepted
3rd Report: Building more social h…
If the Government’s intention is that the Right to Buy should both give people an...
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 … Read more
Government Response
The government affirms its commitment to increasing social housing and welcomes the opportunity to continue working with and exploring solutions with the Local Government Association to ensure affordable housing needs are met.
Ministry of Housing, Communities and Local Government
View details
25 Recommendation Accepted in Part
3rd Report: Building more social h…
We caution the Government not to make Shared Ownership Right to Buy a condition of...
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 … Read more
Government Response
The government clarifies that the new Right to Shared Ownership scheme does not involve discounts and providers keep receipts, mitigating some concerns. Crucially, it commits to reimbursing housing associations for the cost of discounts under the Voluntary Right to Buy, directly accepting the second part of the recommendation.
Ministry of Housing, Communities and Local Government
View details
26 Recommendation Deferred
3rd Report: Building more social h…
The Government must keep a careful watch on the rate of replacements.
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 … Read more
Government Response
The government acknowledges that Right to Buy replacements are not meeting the one-for-one commitment and monitors the rate. It is considering its response to a consultation on options for flexibilities and broader measurement, which will be published later.
Ministry of Housing, Communities and Local Government
View details
Government Response AI assessment · 26 of 18 classified
Accepted 4
Accepted in Part 5
Acknowledged 5
Deferred 4
Not Addressed 3
Rejected 5
Total 18 recs + 8 conclusions
Correspondence 6 letters
19 Nov 2020 To committee Letter from the Minister for Housing to the Chair dated 11 November 2020 concerning the long-term delivery of social and affordable rented housing
Parliament page
20 Oct 2020 To committee Letter from the Chair to the Secretary of State dated 20 October 2020 concerning the Government response to the Committee's report 'Building More Social Housing'
Parliament page
8 Jul 2020 To committee Letter from the Chair to the Minister for Housing dated 8 July 2020 concerning funding for affordable housing
Parliament page
23 Jun 2020 To committee Letter from the Minister for Housing to the Chair dated 22 June 2020 concerning his appearance before the Committee on 8 June
Parliament page
12 Jun 2020 To committee Letter from the Chair to the Minister for Housing dated 12 June 2020 following his appearance before the Committee on 8 June
Parliament page
12 Jun 2020 To committee Letter from the Chair to the London Deputy Mayor for Housing and Residential Development dated 12 June 2020 following up his appearance before the Committee on 8 June
Parliament page