My Lords, I shall speak to Amendments 56 and 57A. In doing so, I add my support to the other amendments in this group. I associate myself with all that my noble friend Lord Beecham has said.
Many of the amendments in this group share the same definition of “rural area”; that is to say,
“(a) any settlement with a population of fewer than 3,000 people at the most recent national census, or
(b) any settlement with a population of between 3,000 and 10,000 people at the most recent national census, and designated as a rural area by the Secretary of State following representations from the relevant local authority”.
Does the Minister agree that that is the definition the Government will use in respect of this Bill, and in all legislation in which such a definition is required? To have differing definitions is both confusing and open to contest.
Rural communities are not just a smaller version of urban communities. They have different strengths and different challenges. The lack of affordable housing is one of the greatest challenges and the extension of the right to buy to housing association tenants in rural communities will exacerbate the already chronic shortage of affordable properties. Indeed, without affordable homes, villages become unsustainable. The only people able to live there are incomers, who often do long-distance commutes; second-home owners and those who rent out properties for holiday lets, when what is needed are homes for those who have grown up in the area and who wish to stay or return, and for those who work in the local area, including teachers, tractor drivers and community nurses. At the moment, the homes provided by housing associations enable communities to thrive, with a school, a shop and a pub. There is great anxiety that, with the extension of the right to buy in these areas, villages will no longer be sustainable. That is not merely a personal concern, as we have heard from my noble friend, but is shared by a wide-ranging coalition from housing associations such as Hastoe to the CPRE, the CLA, the LGA and many more, all of which have a real understanding of the needs of rural communities. Indeed, a representative of the CLA said at a recent meeting that the right to buy could be a further barrier to what is already a very difficult situation, and could lead to community breakdown.
In 2011, already only 8% of the housing stock in rural areas was owned by housing associations and local authorities. The Minister has told us of the Government’s support for social housing, which I have to say, judging from this Bill, looks dubious. However, I would be grateful if she would say what percentage increase in social housing in rural areas they envisage over the next five years as a consequence of the Bill. Does she agree that an increase is absolutely necessary for the sustainability of our rural areas, where wages are low and house prices, even at a discount, are out of reach for most local people?
There is compelling evidence from previous incarnations of the right-to-buy policy to show that, when stock is lost from the social rented sector, it is not replaced in the same quantity or in the same geographical area. This is particularly true in rural areas, where development is constrained and where it is often significantly more expensive to build due to the cost of land and the lack of main services. It can also take longer to bring forward through planning applications. Between 2012-13 and 2013-14, the ratio of sales to replacement was eight to one. That is nowhere near the one-to-one figure vaunted by the Government. With the current Bill, there is no robust and fully modelled funding mechanism in place to pay for replacement. In addition, there is currently no requirement for replacement stock for homes to be sited locally, which means that housing association properties sold in small villages will undoubtedly be replaced on larger windfall sites elsewhere.
The NHF has reached its understandable—but, I believe, very regrettable—agreement with the Government to make the right to buy voluntary; and, furthermore, that tenants should have a right to a portable discount. We do not yet have any further details, which is frustrating, especially for those working in the sector. However, I know that the noble Baroness is aware of the frustrations and I will not press her further on this at this stage. However, I believe that both concepts pose more problems than solutions to the housing crisis. Indeed, I would go so far as to say that the portable discount makes absolutely no sense at all.
In relation to the voluntary agreement, what would happen in an area where at least two housing associations have homes but only one decides that its tenants can exercise their right to buy? Apart from the understandable anger, what would happen? I wonder how long the voluntary concept will remain voluntary. Amendments 57A and 57B are identical and rather similar to Amendments 57C and 57D, with all of which I agree. However, for me, as well as for Sir Andrew Motion and the rural housing group, they are very much second best.
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My strong, strong preference is for Amendment 56. Although the amendment was not laid at Second Reading, there were many cogent arguments supporting it. I remind noble Lords of two very powerful contributions. The right reverend Prelate the Bishop of St Albans said:
“The simple fact of the matter is that, as things stand, houses in rural areas sold under the right to buy will not be replaced in the same area—or indeed, in all likelihood, in any rural area. In so far as they are sold, they will be lost for those who need access to affordable rented accommodation and will be replaced by affordable housing in urban areas, where the costs of development are usually cheaper and where more sites are available”.—[Official Report, 26/1/16; col. 1205.]
The noble Lord, Lord Cameron of Dillington, made the case eloquently when he said:
“It is dangerous, however, to introduce the concept—or the possibility—of the right to buy in rural communities. Farmers and communities will have to grapple with new safeguards to protect their sites in perpetuity and will naturally be suspicious, making these much-needed exception sites less likely than ever to
come forward. I would, therefore, like to see a blanket protection in law from this right to buy for communities of under 3,000 people”. —[Official Report, 26/1/16; col. 1212.]
Hear, hear.
I have no doubt that the Minister will not accept this amendment today, but I hope that she will not dismiss it out of hand. All those who best know and understand rural communities and their specific challenges, and who are passionate about their sustainability, agree that extension of the right to buy should not be allowed in rural areas. To continue with this policy would imperil their vitality and viability.