My Lords, I speak in support of government Amendment 10A, which safeguards the provision of affordable homes on rural exception sites, as well as Amendment 10B in the name of the noble Lord, Lord Kerslake, which would add to it. I declare an interest as chair of the National Housing Federation, which represents England’s 1,000 housing associations. As many noble Lords will be aware, housing associations work with local authorities across the country to deliver the homes and services needed by each local community.
The Government have a manifesto commitment to deliver 200,000 starter homes by 2020, which will help many people on to the housing ladder. They have also shown a welcome commitment to shared ownership. However, as the Bill allows developers to deliver starter homes as part of their Section 106 obligations, this puts the supply of all other forms of affordable homes at risk. I welcome the Government’s Amendment 10A, as it allows local authorities to protect rural exception sites, making sure that the housing delivered will be affordable in perpetuity for the local community. It recognises the value that rural exception sites bring to our rural villages.
Unfortunately, however, the rejection of Lords Amendment 9 by the other place puts the much needed delivery of all forms of sub-market rent at risk by undermining local authorities’ power to plan to meet objectively assessed local housing need, as they are required to do by the National Planning Policy Framework. Local authorities should have the freedom to plan for the different tenures that people living in their area might need. In many cases, these will include starter homes, but local people may also need affordable or social rented homes, or homes for shared ownership.
I understand that the Government are not willing to grant this flexibility given their focus on delivering starter homes. Although I stand by my position that local authorities should retain the freedom to plan for all local housing need, I voice my support for Amendment 10B in the name of the noble Lord, Lord Kerslake, which would enable starter homes to be built while giving local authorities flexibility to deliver other forms of low-cost home ownership products to meet the needs in their area. This would include shared ownership
—an affordable way for those on low incomes to own their own home which was originally pioneered by housing associations.
Local authorities know best the housing needs of the people in their areas. They are in the best position to determine the right mix of homes in their areas. This amendment is an elegant way to enable the Government to meet their manifesto commitment to boost home ownership, while giving local authorities some flexibility to serve their communities by planning sensibly for the homes that meet those communities’ needs.