Long-term delivery of social and affordable rented housing
Housing, Communities and Local Government Committee
Closed
Inquiry
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 …
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14
Recommendations
12
Conclusions
1
Report
2
Oral sessions
6
Letters
2
Events
Activity timeline 12 events
19 Nov
2020
2020
20 Oct
2020
2020
14 Oct
2020
2020
27 Jul
2020
2020
Report published
8 Jul
2020
2020
23 Jun
2020
2020
12 Jun
2020
2020
12 Jun
2020
2020
8 Jun
2020
2020
Oral evidence
8 Jun
2020
2020
Formal meeting (oral evidence session) · Virtual meeting
9 Mar
2020
2020
Oral evidence
9 Mar
2020
2020
Formal meeting (oral evidence session) · The Thatcher Room, Portcullis House
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
Reports 1 report · click to expand
| 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
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 …
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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 …
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Ministry of Housing, Communities and Local Government
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2
Recommendation
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 …
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Ministry of Housing, Communities and Local Government
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3
Recommendation
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 …
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Ministry of Housing, Communities and Local Government
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4
Recommendation
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 …
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Ministry of Housing, Communities and Local Government
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5
Conclusion
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 …
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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 …
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Ministry of Housing, Communities and Local Government
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6
Recommendation
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 …
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Ministry of Housing, Communities and Local Government
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7
Recommendation
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. …
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Ministry of Housing, Communities and Local Government
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8
Conclusion
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 …
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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 …
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Ministry of Housing, Communities and Local Government
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9
Conclusion
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 …
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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 …
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Ministry of Housing, Communities and Local Government
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10
Conclusion
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 …
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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 …
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Ministry of Housing, Communities and Local Government
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11
Recommendation
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 …
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Ministry of Housing, Communities and Local Government
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12
Recommendation
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 …
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Ministry of Housing, Communities and Local Government
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13
Recommendation
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 …
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Ministry of Housing, Communities and Local Government
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14
Conclusion
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 …
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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 …
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Ministry of Housing, Communities and Local Government
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15
Conclusion
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 …
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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 …
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Ministry of Housing, Communities and Local Government
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16
Recommendation
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 …
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Ministry of Housing, Communities and Local Government
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17
Conclusion
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 …
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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 …
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Ministry of Housing, Communities and Local Government
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18
Recommendation
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 …
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Ministry of Housing, Communities and Local Government
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19
Recommendation
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 …
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Ministry of Housing, Communities and Local Government
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20
Conclusion
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 …
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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 …
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Ministry of Housing, Communities and Local Government
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21
Conclusion
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 …
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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 …
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Ministry of Housing, Communities and Local Government
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22
Conclusion
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
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
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23
Recommendation
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 …
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Ministry of Housing, Communities and Local Government
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24
Recommendation
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 …
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Ministry of Housing, Communities and Local Government
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25
Conclusion
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 …
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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 …
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Ministry of Housing, Communities and Local Government
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26
Recommendation
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 …
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Ministry of Housing, Communities and Local Government
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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