My Lords, I thank all noble Lords who have spoken so eloquently on the amendment, particularly my noble friends who are such constitutional experts, far more so than me—my noble friends Lord Forsyth, Lord True and Lord Cormack. My noble friend Lord Cormack asked initially about the regulations and working with noble Lords. I hope that, whatever noble Lords think about the Bill, they will agree that I have taken the time whenever needed to engage with noble Lords from across the House to discuss any aspect of legislation or regulations that they might wish—and I fully intend to continue in that role.
Amendment 47E, proposed by the noble Lord, Lord Kerslake, in lieu of Amendment 47, is not acceptable to the Government. It would require that, when the Secretary of State enters into an agreement, sufficient funding must be provided to fully fund the cost of the new home. I hope that noble Lords will not misinterpret me when I say that the Government want more housing to be built, and I hope that the noble Lord will recognise that the arguments that this House recognised in relation to the last group apply just as strongly now. We have listened, and I have reassured this House strongly on how flexible agreements will be. It is now time to stop undermining our ability to proceed and to let us deliver our manifesto commitments.
We support the involvement of local authorities in delivering new homes. We value the creative partnerships across the sector to increase housing supply. But additional
homes should not be funded simply through retained payments from the sale of high-value vacant housing. We have discussed that at length throughout the course of the Bill. There should be opportunities for local authorities to contribute their land, assets or funding, and to work in partnership with other providers in their area to build homes. We also want to ensure that value for money is secured, and ensure that the homes are delivered as cost effectively as possible.
In placing expectations on receipts, the amendment would prevent the Government from fulfilling their manifesto commitment, because it would significantly reduce the funding available for the voluntary right to buy. Since November last year, more than 29,000 housing association tenants have asked to be kept up to date with the right-to-buy scheme via our website. It is not right that we should deny these tenants their dream of home ownership.
The noble Lord, Lord Beecham, talked about numbers. Let us reflect a bit back to the Conservative-led coalition being the first Government to end a Parliament with more affordable homes than we started with. Labour oversaw the loss of 420,000, by contrast. This is about our manifesto commitment to extend the right to buy.
The noble Lord, Lord Beecham, talked about the financial privilege that the Government look to invoke. That is not true—it is a matter for the Commons Speaker on the advice of Commons clerks. It is not a political decision. I do not know a lot about the constitution, but I do know that.
The noble Lord, Lord Kerslake, talked about increased homelessness. A key part of this policy is to release the value locked up in vacant higher-value housing assets in order to build more homes. We are committed to supporting the most vulnerable in our society to have a decent place to live. Since 2010, we have invested more than £500 million to help local authorities prevent nearly 1 million households becoming homeless. Time spent in temporary accommodation ensures that no family is without a roof over their heads. We have made common-sense changes to the law to allow local authorities to offer accommodation in good-quality private sector accommodation, and households, on leaving temporary accommodation, now spend on average less time in temporary accommodation than they did in 2010.
The noble Lord, Lord Shipley, asked why we would not agree to the amendment proposed by the noble Lord, Lord Kerslake, to enable homes to be built on a like-for-like basis. Our manifesto made it clear that we wanted to increase home ownership and drive up the supply of new homes. The receipts from the sale of high-value assets will enable us to deliver both of these commitments. The receipts will be used to give up to 1.3 million housing association tenants the right to the same level of right-to-buy discount as has been enjoyed by local authority tenants for decades.
But—and this is equally important—it will provide receipts that local authorities that enter into agreement with us will use to provide affordable homes. When they choose not to—and some will choose not to—the money will be returned to government to provide additional homes. As I have previously explained, the proceeds from right to buy will contribute to the
funding that the housing association will use to provide an additional home for the one that is being sold, and an additional two homes in London.
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The noble Lord, Lord Shipley, suggested that the policy would result in fewer social rented homes. I say again that we have a national housing crisis. We need more homes across different tenures and across the country. At the heart of this policy is the building of more homes, funded by part of the receipts from the sale of high-value council housing. The Secretary of State and a local authority can enter into an agreement for the local authority to retain part of its receipts to lead the delivery of more homes that meet housing need. In the case of London, where we know that there is an acute housing crisis, this agreement must result in the delivery of at least two more affordable homes for each high-value vacant dwelling that is taken into account under the determination.
I urge your Lordships’ House to respect the will of the other place, recognising that this is a manifesto commitment and that, as the House of Commons has offered a financial-privilege reason for rejecting our amendments, we should be wary of proposing an alternative that would invite the same response. I therefore urge noble Lords to accept the Commons reason and not support Amendment 47E.