Housing Associations: Financial Assistance

Question

11:17:00

Asked by

To ask His Majesty’s Government what steps they are taking to provide further financial assistance to housing associations.

My Lords, I beg leave to ask the Question standing in my name on the Order Paper, and I declare my interest as chairman of Faraday Ventures, which is set up to provide social housing and key worker housing.

My Lords, I thank the noble Lord, Lord Bailey, who I know is passionate about housing, particularly for young people. His question is very timely: just yesterday, we announced our long-term plan to deliver a decade of renewal for social and affordable housing. As part of this, we will provide the biggest boost to social and affordable housing investment in a generation with our new £39 billion programme, and we will ensure that at least 60% of that programme is spent on social housing. We will also give social landlords equal access to government building safety funding and provide a decade of certainty through the new rent settlement, supporting social landlords to invest in new and existing homes.

I thank the Minister for her Answer. I have an additional question: at what pace will this money arrive, particularly in London? In London and the south-east, we have the greatest housing crisis compared with anywhere else nationally. How many homes will this money deliver, and at what pace will the Mayor of London have to provide these homes? The Government’s own Deputy Prime Minister was upset with his low level of delivery, and we want to be sure that there is a KPI for how many homes he is to deliver year on year with the money the Government are providing.

We intend to get this programme running as quickly as possible. That is why we have provided £2 billion of funding in advance of that settlement—so that we could kick-start the programme and get it going straight away. The rest of the programme will be open for bidding very shortly, so that local authorities can apply to bid for that fund. To answer the noble Lord’s question about London, 30% of the housing in that programme will be in London.

My Lords, a recent report by the social housing ombudsman highlighted repairs as a major problem. So my question to the Government and the Minister is: what will they do to fill the skills gap that we badly need to fill to maintain and improve our existing social housing, as well as the new builds?

The noble Lord is quite right that we need to address the skills gap, both for the purposes of building new homes and for repair and maintenance. Some of the new skills are needed to retrofit homes for net zero. We have put aside £600 million over the next four years to train 60,000 skilled tradespeople—engineers, brickies, sparkies and chippies—working with our colleagues in the Department for Education and Skills England to make sure that we get our young people into those well-paid, high-skilled jobs. We are funding additional placements and setting up technical excellence colleges, foundation apprenticeships and skills boot camps. What we are trying to do—I have seen the effectiveness of this as I have visited further education colleges around the country—is get some of the skilled people who are now reaching the end of their careers to come back to train our young people and enthuse them about those careers.

My Lords, I greatly welcome this national housing strategy and the £39 billion that goes with it. Does this mean an end to the sharp decline in the output of social housing for older people, not least because our ageing population leads to the vacating of family homes, creating at least two for one as a result? Is it now time for a major improvement in the number of homes that we build as social housing for older people?

I agree with the noble Lord, who has done so much work in this area. Much of the advice he has provided has helped the Government to develop our programmes. In the next few weeks, we will deliver our housing strategy, which will contain details of how the Government intend to move forward with a wide range of different housing, including supported housing and supported housing for older people.

My Lords, will my noble friend the Minister outline how, alongside the Planning and Infrastructure Bill, the £39 billion commitment to affordable housing that has been referred to will help councils overcome delivery barriers and support our mission to build 1.5 million new homes?

I am grateful to my noble friend for that question. As well as the financial support that we announced yesterday, there is a significant package of delivery to help support our colleagues in local government and in the registered provider sector, supporting the planning process with additional funding for planners, setting clear targets for housing delivery, investing in the skills and capacities I outlined, working to help accelerate stalled sites through the major sites accelerator, helping with the delivery of infrastructure through the Planning and Infrastructure Bill—which we will debate shortly—looking forward very much to the New Towns Taskforce and its work, and ensuring that we stabilise the economy to attract the investment we need in housing after 14 years of failure that led to the housing crisis.

The noble Baroness will be aware that there is a crying need for one-bedroom and two-bedroom houses in rural areas. That need is not fulfilled because the houses that are being built have three, four or five bedrooms. The affordable homes that form part of a planning application are often resiled from on intervention from the Secretary of State. Will the noble Baroness use her good offices to review the position to ensure that there is a stable supply of one-bedroom and two-bedroom homes in rural areas?

The Government genuinely understand the need for homes in rural areas, and we have focused on the rural exception site type of policies that allow local areas to ring-fence that housing for local need. We will continue to do that. It is for local authorities to determine the types of housing, both through the planning process and in their local plans. In the National Planning Policy Framework, which was published in December, we have for the first time allowed local authorities to make provision specifically for their social housing needs, which I hope will help in rural areas.

My Lords, the Minister mentioned skills. Is it not true that one of the quickest ways of getting more social housing is through novel, alternative methods of construction? The sorts of skills required for that are somewhat different from many of the ones that she mentioned. In Scotland now, the majority of new houses have wooden frames. What is going on in England to make sure that happens as well?

I thank the noble Baroness for that question. We went into a bit of a decline in the modern methods of construction industry. I am a great supporter of it; it holds great potential for the future. We will support and encourage developers who are taking that approach. There is no difference in the safety of those properties because all types of property come under the same building regulations framework. In fact, I went to see an amazing office block, just across the river here, that is made with a timber-frame approach. I hope we can continue to encourage the development industry to make progress with those methods.

My noble friend Lord Bailey raised the delivery of affordable housing in London. In May, G15, the group representing the largest housing associations in London, said that there had been a 66% drop in affordable housing built in London over the last two years, down to fewer than 5,000. Given the lamentable failure of the Mayor of London to deliver, will the Government allocate the near £12 billion in funding for affordable housing directly to the London boroughs so that they can get on with the job?

The exact details of the programme will be published shortly. As I said to the noble Lord, Lord Bailey, 30% of the funding in that £39 billion funding pot will be allocated to London. But the noble Lord should look at what has happened in the last 14 years and not blame the Mayor of London for what has happened with housing in London.

My Lords, it is very good news about investment in social housing. The role of the housing associations will be critical, obviously. The noble Baroness mentioned the role of the New Towns Taskforce. Can she update us on when we can expect the report? I think we can all agree that it is summer already.

As I have discussed before at the Dispatch Box, summer is quite a flexible concept in the Civil Service, but we expect the report of the New Towns Taskforce imminently. I would like to say how successful it has been with the task force running an extensive round of consultation around the current new towns, with people with lived experience of what it is like to live in a new town, both to learn the lessons where things did not work and to see what did work to inform its work. So I am pleased to have been working with Sir Michael Lyons and the task force on that, and I very much look forward to its report.

Does the Minister recall the exchange last December, when I raised the problem of private developers completing affordable homes on a site but being unable to find a housing association to take them over, leaving those homes empty and in some cases leaving the site uncompleted? Can the Minister give me an assurance that that problem has now been resolved and that there are housing associations ready to take over these Section 106 homes?

I thank the noble Lord, and I do remember his question. The department, along with our colleagues in Homes England, has set up a matching service—a bit like speed dating—between the Section 106 developers and the registered providers, to make sure that we can match them up with the funding available. I do not have a progress report to hand today, but I will write to the noble Lord with an update.