My Lords, I turn to another manifesto commitment—high value vacant local authority housing. I start by reminding your Lordships’ House what the manifesto said:
“We will fund the replacement of properties sold under the extended Right to Buy by requiring local authorities to manage their housing assets more efficiently, with the most expensive properties sold off and replaced as they fall vacant”.
The Bill delivers that manifesto commitment. It will increase housing supply through the delivery of affordable homes, and extend home ownership by funding the discounts for the ground-breaking voluntary right-to-buy agreement. Let me be clear: the manifesto says that the homes sold will be replaced with new homes. It does not say that there will be like-for-like replacement. We want to make sure that the new homes serve the needs of communities, today. We do not see a reason to commit ourselves to reproducing exactly the same type of home when communities have changed and the need for housing may be different. We want to retain flexibility in the legislation so that the Government, working with local places, can facilitate the development of the type of homes we need today.
Noble Lords have used their scrutiny role to great effect. The House has helped to improve the Bill in many ways. However, we cannot accept amending the Bill in a way that would prevent us delivering on our manifesto commitment. As the Minister for Housing and Planning explained in the Commons yesterday, the Government could not accept Lords Amendments 47B and 47C because they would significantly reduce the funding available for the voluntary right to buy. The other place has been clear that it does not agree with the fundamental changes that have been proposed to the agreements process. Twice it has emphatically rejected amendments from your Lordships’ House—by 288 votes to 172 last Tuesday, and then, yesterday, by 291 votes to 203. That shows their strength of feeling.
In addition, the House of Commons has, for a second time, offered a financial privilege reason for rejecting our amendments on this issue. I respect, and would defend, the right of this House to propose an amendment in lieu when the Commons has rejected our original amendment on grounds of financial privilege. However, I remind noble Lords that the Joint Committee on Conventions reported in 2006 that:
“If the Commons have disagreed to Lords Amendments on grounds of financial privilege, it is contrary to convention for the Lords to send back Amendments in lieu which clearly invite the same response”.
This House has already sent back one set of amendments in lieu which invited the same response of financial privilege—Amendments 47B and 47C, which were sent to the Commons last Wednesday. Motion B1 in the name of the noble Lord, Lord Kerslake, invites the House to offer Amendment 47E in lieu. At first glance, that amendment also has major implications for how the voluntary right-to-buy commitment will be funded and therefore could invite the same response. I hope the House will be mindful of that convention as we debate and decide on the Motions before us today.
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The Bill has always enabled the Secretary of State to enter into agreements with local authorities. We have made amendments which clarify our intentions concerning replacements. These will ensure that where a local authority has entered into an agreement, at least two new affordable homes will be provided for
each home expected to be sold in London. A similar approach will now work outside London as well, with local authorities that choose to enter into an agreement being required to provide at least one new affordable home for each one expected to be sold. Let me be very clear: “affordable” includes a range of different types of housing, meaning homes that will be made available for people whose needs are not adequately served by the commercial housing market, from new homes for sub-market rent to home ownership products such as shared ownership and starter homes.
Receipts will be used to support the delivery of our manifesto commitments to support the delivery of right-to-buy discounts to housing association tenants and the delivery of additional homes. We will of course compensate local authorities for transaction costs and the debt associated with the housing. After that, we have been clear that receipts will be used to fund both right-to-buy discounts for housing association tenants and the delivery of new affordable housing. We are not intending to use them for any other purpose. I beg to move.
Motion B1 (as an amendment to Motion B)