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Labour’s Housing Plans – action so far 27/09/2024

Both Deputy Prime Minister Angela Rayner and Housing Minister Matthew Pennycook have recently summarised the action they have taken on housing since the election of a Labour government on 4 July.  Most of these have been previously reported in the Bulletin, but it is helpful to see them brought together in one place. In a letter to constituents, Matthew Pennycook listed the most significant steps taken including:


 

 

  • Setting up an independent New Towns Taskforce to advise the Deputy Prime Minister and Arch on suitable locations for large-scale new communities of at least 10,000 new homes each

 

  • Setting out changes to support the delivery of more social and affordable homes and give councils and housing associations new flexibilities to make a greater contribution to affordable housing supply

 

  • Taking the first steps to reform outdated compulsory purchase compensation rules that inflate the cost of land to the benefit of speculators

 

  • Introducing the new Renters' Rights Bill to finally abolish Section 21 'no fault' evictions and decisively level the playing field between landlord and tenant.

 

 

Angela Rayner's speech opening the Labour Party Conference on 22 September also mentioned most of these, but also re-emphasised Labour's previously-stated ambition "to build more social homes than we lose" within the first financial year of a Labour government. She also re-affirmed the Government's intention to implement Awaab's Law 'this Autumn' and to extend it, and the Decent Homes Standard to the private rented sector, and to ensure social housing staff 'have the right skills and experience', in a clear reference to the professionalisation agenda. She also said she would 'ensure 2.5 million housing association tenants in this country can hold their landlord to account for their high quality services and homes' so that repairs and complaints are handled faster, but, more importantly, so social housing tenants are treated fairly.

 

A decade of national policy choices have heavily impacted council housing budgets. We call for an emergency capital funding injection of £644m, equal to the income lost from the 2023-25 rent cap. This will stabilise our HRAs in the short term and prevent further waste caused by delaying or cancelling investment plans.

 

Then, at the next Spending Review, we call on the government to:

 

1. Establish a new fair and sustainable HRA model: including a long-term and certain rent settlement, an adjustment of HRA debts and more favourable conditions for council investment.

 

2. Reform unsustainable Right to Buy policies: by reducing discount levels and eligibility, as well as protecting newly built council homes from sale.

 

3. Remove red tape on the Affordable Homes Programme and other funds: including extending the strategic partnership model to councils. Funding should be streamlined, allocated simply, allowed to be used flexibly to meet local housing need and reflect recent cost inflation.

 

4. Announce a Green & Decent Homes Programme: a long-term, capital-funded programme to bring all council housing up to the new standard of safety, decency and energy efficiency by 2030 - and a road map for achieving net zero by 2050.

 

5. Fund the completion of new council homes: limit the short-term loss of housing supply and construction sector capacity caused by the unfolding market downturn, by funding councils to rescue and complete stalled development projects.

 

Our detailed and practical recommendations will get the system back on stable foundations, enable us to bring all homes up to the standards our residents deserve and unlock our potential to deliver the next generation of council homes. We look forward to working with the new government to secure the future of England's council housing.

 

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