MP warns social housing bill will fail to deliver new homes

An MP has warned that the social housing bill will fail to deliver any new social homes.

During a debate on the Bill, shadow housing minister Gareth Bacon criticised the legislation for doing little to address England’s shortage of social housing.

Housing Minister Matthew Pennycook, however, hit back, arguing that the bill would incentivise councils to build more social homes.

Fails to build any new social housing

MPs also debated rents for high-income social tenants, including whether people living in council or housing association properties should pay higher rents if their household income increases.

Mr Bacon said the system needed to be “fair”, while Mr Pennycook argued that individual circumstances and income should be taken into account.

Mr Bacon also raised concerns that the Bill would not deliver any new social housing.

He said: “If the bill fails to build any new social housing, which we know it will, it could at the very least ensure that stock is allocated to those most in need. We believe that one of the fairest and most suitable ways to do so is to review the income eligibility thresholds for social housing.

“At present, up-to-date figures from the English Housing Survey suggest that around 186,000 social housing households have incomes above £50,000. That is both an injustice and an inefficiency in need of fixing, yet the Bill will not do so.”

“We must ensure that any changes to the structure of the social housing system are made to enable a fairer and more effective programme for the most vulnerable to find shelter. Social housing is a safety net, not a guarantee. People’s circumstances change over time. Those who have the means to pay market rent should do so.”

Incentivise councils to build

Mr Pennycook hit back, claiming the bill would incentivise councils to build more social housing, while arguing that wider government funding would also help deliver new homes.

He said: “I must address something that the shadow minister keeps saying, which is that the bill does not build any new social housing.

“Local authorities are very clear and have said to us in plain terms that the measures in the bill will incentivise them to build more social homes. Of course, it is not the case that this piece of legislation is the only means by which we are building new social and affordable housing.

“We have a £39 billion social and affordable homes programme, which dwarfs anything that the previous Conservative government allocated in this area, and there is additional funding to come on top of that.”

He added: “I recognise the importance of considering income to ensure that social housing is targeted at those most in need. Indeed, it is a sad truth that the residualisation of social housing over many years, not least because of the engineered decline of it under previous Conservative governments, with increased right-to-buy discounts explicitly targeted to ensure that more is sold, has meant that, in most cases, it has become targeted to those on very low incomes, but we do not believe that the new clause is necessary.

“Eligibility for social housing is considered through the allocations process, and there is no general national income eligibility threshold for social rented housing.

“As I have made clear, local authorities can take financial resources into account in determining qualification and relative priority under their allocation schemes, subject to statutory requirements, and private registered providers also operate their own lettings polices. This allows local and individual circumstances to be taken into account.”