My Lords, before I speak, I should refer to my previous declarations of interest. I am not sure whether I keep having to do this
because they have been set out in previous debates. Obviously my noble friend the Minister will not expect me to support taking assets from well-run councils and giving them to poorly-run housing associations, but I do support the Government’s commitment to extending the right to buy to RSL tenants and allowing councils to sell and dispose of high-value assets. Currently we have to do that via Secretary of State approval. I think that the last time my council did it, John Healey was the Secretary of State; that is how long ago it was.
First, I will put a plea in for Lincolnshire. Despite what the noble Earl, Lord Lytton, has said, Lincolnshire is not a stagnant housing market area. My own district is probably the ninth fastest housing growth area in the country in terms of prices and I urge anyone who is thinking about investing in property to come to Lincolnshire because it is a very good investment area. I also need to put a plea in for councils. In the past five years we have built more council houses than we did in the last five years of the previous Government, so councils are building more properties. I do not think that the figures the noble Earl was given reflect accurately the actual numbers that are being replaced.
If this debate is about the Government having a manifesto commitment to bring in right to buy and a commitment to sell high-value assets, they should not necessarily be seen as two policies that are tied together. Both are perfectly laudable aims, and one way to make sure that the sale of registered social landlord properties is achievable is by giving the registered social landlord only the money necessary between the capital receipt and the cost of the replacement unit. Nearly 600,000 of those units where the right to buy will be applied to the 1.3 million are where the preserved right to buy no longer exists on homes sold through large-scale voluntary transfer. Those houses went from councils to registered social landlords at little or no capital cost, so a significant public discount is already built into those homes. If that money is freed up, we would have to find a much smaller sum to be able to meet the Government’s commitment on this. I urge the Government to remember that their flagship policy of right to buy is something that can be passed on to future generations only if councils have the right to build, so taking resources from councils is not the best way of maintaining this flagship policy.