← LEADERSHIP TERMINAL

UK PARLIAMENT · SITTING

Matthew Pennycook

MP for Greenwich and Woolwich · Labour · United Kingdom

IN THEIR OWN WORDS

It is a pleasure to serve with you in the Chair, Dame Siobhain. I congratulate the right hon. and learned Member for Kenilworth and Southam (Sir Jeremy Wright) on securing this debate.

GREY BELT LAND: DEFINITION AND APPLICATION · 2026-09-15 · READ IN HANSARD

I will address the right hon. and learned Gentleman’s specific question in due course. Before I do so, I want to put on the record the policy in relation to villages. He can rest assured that I will address the point; if he is unsatisfied, he is more than welcome to intervene again. A number of hon. Members mentioned villages.

GREY BELT LAND: DEFINITION AND APPLICATION · 2026-09-15 · READ IN HANSARD

I will say two things in respect to that, and I will come on to detail how the approach works in relation to decision making very shortly. In general terms, developers can make whatever claims they like about any particular site across the country; it is for the local authority to assess whether, in its view, that site constitutes grey be…

GREY BELT LAND: DEFINITION AND APPLICATION · 2026-09-15 · READ IN HANSARD

and learned Gentleman’s point about what is likely to constitute grey-belt land. Let me directly address his other two specific points. Is this a significant policy? Absolutely, and it has been judged as much by the Office for Budget Responsibility and other external commentators. Is it deliberate? Absolutely. We want, as the right hon.

GREY BELT LAND: DEFINITION AND APPLICATION · 2026-09-15 · READ IN HANSARD

Where authorities may wish to restrict development in villages for other reasons, a range of tools are available, such as conservation areas or normal development management policies. On the right hon.

GREY BELT LAND: DEFINITION AND APPLICATION · 2026-09-15 · READ IN HANSARD

We have to put in place policies that, through the decision-making route, allow homes still to be brought forward in that interregnum, but then we have to push heavily to drive towards universal plan coverage. At that point, the protections are in place.

GREY BELT LAND: DEFINITION AND APPLICATION · 2026-09-15 · READ IN HANSARD

The complete record

Every one of 5,181 lines we hold for Matthew Pennycook, in date order, each linked to its source. Free to read, in full, without an account. Page 20 of 104.

  1. We have ongoing dialogue with colleagues in the Ministry of Defence about this issue, and if the hon. Member will allow me, I will elaborate on how we think these amendments will work in practice and how they interact with what the Ministry of Defence is itself doing. First, however, I once again thank Baroness Grender, Baroness Thornhill and the hon. Members for Taunton and Wellington (Gideon Amos) and for North Shropshire (Helen Morgan) for their continued support and advocacy for service personnel and their families. The Government have been clear throughout the passage of the Bill that our armed services personnel and their families must live in safe and decent homes. We remain determined to improve the standard of service family accommodation across the entire defence estate.

    RENTERS’ RIGHTS BILL · 2025-10-22 · READ IN HANSARD

  2. It is also worth saying that redress is already available to service personnel, who already have a robust system in place for raising a complaint about the standard of their accommodation and receiving remedy or reimbursement. If not resolved, complaints can be escalated to a service complaint, for which there are further powers of reimbursement, charge reduction and policy redress, and ultimately to the employment tribunal in cases of potential discrimination.

    RENTERS’ RIGHTS BILL · 2025-10-22 · READ IN HANSARD

  3. We intend to do that using the delegated powers to make transitional provision provided by clause 147. The Liberal Democrat spokesman, the hon. Member for Taunton and Wellington (Gideon Amos), asked about various issues relating to the amendments about service family accommodation. In particular, he asked about investment. As I outlined in my opening speech, the Ministry of Defence has announced an additional £1.5 billion investment in SFA as part of a £7 billion commitment over the next five years to improving and modernising defence housing. That investment will unlock rapid work to tackle the poor state of forces housing, helping to support recruitment, retention and morale. As I mentioned, the defence housing strategy, to be published later this year, will also set out wider plans to improve service family homes.

    RENTERS’ RIGHTS BILL · 2025-10-22 · READ IN HANSARD

  4. As he is aware, the Bill will ensure that the new tenancy system for the private rented sector is introduced in one stage. At that point, the new tenancy system will apply to all private tenancies. Existing tenancies will convert to the new system, and any new tenancy signed off on or after that date will be governed by the new rules. As I said, I am glad that there is broad support for the Lords amendments relating to shared owners. It is worth saying that the Government will make provision during implementation to ensure that shared owner landlords with an existing tenancy will have an opportunity to provide the information in question to the tenant after the Bill comes into force. We want to take the time to get this right, and find a solution that works for shared owners.

    RENTERS’ RIGHTS BILL · 2025-10-22 · READ IN HANSARD

  5. He knows that the Government are opposed to introducing rent controls. As I have made clear on many previous occasions, we do not support them, including rent stabilisation measures, because we believe that they could make life more difficult for private renters, both by incentivising landlords to increase rents routinely to a cap, where they might not otherwise have done so, and by pushing many landlords out of the market, thereby making it even harder for renters to find a home that they can afford. The right hon. Gentleman asked me about implementation. Following Royal Assent, we will allow time for a smooth transition to the new system. We will support tenants, landlords and agents to understand and adjust to the new rules, and ensure the sector has enough time to prepare.

    RENTERS’ RIGHTS BILL · 2025-10-22 · READ IN HANSARD

  6. It is worth noting that a study from the UK Collaborative Centre for Housing Evidence looked at whether regulation of the PRS over the past 25 years, in the UK and internationally, had affected PRS supply. It concluded that there was no evidence to support the assertion that non-price regulation impacts supply. We will, of course, continue to work with landlords and their representative associations throughout implementation. We are committed to robustly monitoring and evaluating the private rented sector reform programme, and we will, of course, continue to monitor trends across the PRS, including the supply of properties, to understand how the market is responding to our reforms. The right hon. Member for Islington North (Jeremy Corbyn) raised the issue of rent controls.

    RENTERS’ RIGHTS BILL · 2025-10-22 · READ IN HANSARD

  7. We acknowledge that it will take time for the sector, including build-to-rent providers but also landlords of any type, to adjust to this significant change in regulation, but we do not believe that the legislation will have a destabilising effect on the rental market, or a harmful impact on future rental supply, which, it should be noted, we are taking steps to boost, not least by providing more opportunities for investment in a growing build-to-rent sector. According to the English housing survey, the size of the private rented sector has remained broadly stable since 2013-14. Landlords have been aware of successive Governments’ plans to reform the sector since 2019.

    RENTERS’ RIGHTS BILL · 2025-10-22 · READ IN HANSARD

  8. With the leave of the House, I will close this brief but thoughtful debate. I thank all right hon. and hon. Members who have spoken for their contributions. In the time available, I will respond to as many of the issues raised as I can. Let me start by saying that I welcome the broad support for the Lords amendments expressed by both shadow Front Benchers. In our view, the amendments are reasonable and proportionate, and respond to legitimate concerns that were raised. They have the safeguards in place that we felt were needed, and we are happy that they are being incorporated into the Bill. The shadow Secretary of State, the right hon. Member for Braintree (Sir James Cleverly), raised the issue of supply.

    RENTERS’ RIGHTS BILL · 2025-10-22 · READ IN HANSARD

  9. The Government understand the need for certainty, and we will set out our implementation plans as soon as possible. I very much look forward to working with hon. and right hon. Members, as well as all stakeholders, as we take forward that progress. Lords amendments 19B, 19C and 19D agreed to. Lords amendments 39B and 39C agreed to.

    RENTERS’ RIGHTS BILL · 2025-10-22 · READ IN HANSARD

  10. I will say a final thanks to all the officials in my Department who have devoted so much time and energy to developing and progressing the Bill, particularly the Bill team, Aidan Hilton, James Kennedy, our lawyers and many more, and my private office, specifically Will Gaby and Grace Doody, who provided me with invaluable support throughout the Bill’s passage. Completing the Bill’s final stage today is obviously only the beginning; once the Bill becomes law, we need to implement its provisions. In doing so, we will balance the need to act quickly, so that tenants can soon benefit from the new rights and protections introduced by the Bill, with ensuring that the sector has sufficient time to adjust and prepare for a significant change in regulation.

    RENTERS’ RIGHTS BILL · 2025-10-22 · READ IN HANSARD

  11. Friend the Member for Ashton-under-Lyne (Angela Rayner), who was and remains one of the Bill’s biggest supporters. She was instrumental in ensuring that it was introduced so quickly after the formation of the Government. I also thank all the stakeholders who have worked closely with the Government to ensure that the Bill will work for landlord and tenant alike. I cannot possibly credit them all in the time I have available, but I will put on the record my thanks to Generation Rent, Shelter, Crisis, Citizens Advice and the other members of the Renters’ Reform Coalition, as well as the National Residential Landlords Association, the shared ownership network and Propertymark.

    RENTERS’ RIGHTS BILL · 2025-10-22 · READ IN HANSARD

  12. In abolishing section 21 no-fault evictions and modernising the regulation of the sector, the Bill will improve the lives of England’s 11 million private renters. It is a transformational piece of legislation and, if you will allow me a brief personal word, Madam Deputy Speaker, I take great pride in having developed and shepherded it through Parliament. It would be remiss of me to conclude my remarks without thanking a number of people. I would like to express my gratitude to all hon. and right hon. Members and peers in the other place who have engaged with the Bill throughout its passage; the expertise and insight that have been brought to bear in both Houses have strengthened the Bill in a number of important respects. I particularly want to thank my right hon.

    RENTERS’ RIGHTS BILL · 2025-10-22 · READ IN HANSARD

  13. It will ensure that we can drive up the quality of private rented housing, giving renters access to good-quality and safe homes as a matter of course, and it will allow us to crack down on the minority of unscrupulous landlords who exploit, mistreat or discriminate against renters. The Bill will also provide tangible benefits for responsible landlords who provide high-quality homes and a good service to their tenants, not only improving the reputation of the sector as a whole, but ensuring that good landlords enjoy simpler regulation and clear and expanded possession grounds, so that they can regain their properties quickly when necessary. As I have argued many times throughout the passage of the Bill, the current system for private renting is broken.

    RENTERS’ RIGHTS BILL · 2025-10-22 · READ IN HANSARD

  14. I thank my hon. Friend for that point well made, which I will respond to directly as I wind up. We know that many tenants out there want the great security, rights and protections afforded by the Bill in place as soon as possible. We promised in our manifesto to overhaul the regulation of our country’s insecure and unjust private rented sector, and this Bill delivers on that commitment. It will empower renters by providing them with greater security, rights and protections, so that they can stay in their homes for longer, build lives in their communities and avoid the risk of homelessness.

    RENTERS’ RIGHTS BILL · 2025-10-22 · READ IN HANSARD

  15. My Department does not hold data on the proportion of people who have been granted asylum status living in the private rented sector in England.

    PRIVATE RENTED SECTOR: PEOPLE GRANTED ASYLUM · 2025-10-13 · READ IN HANSARD

  16. I am afraid I will take no lectures from the hon. Gentleman, as it was the previous Conservative Government—in which he served as a Minister—who lost control of our borders and presided over the complete breakdown of the asylum system. This Government are restoring order to that system, speeding up decision making and reforming the appeals process to cut the asylum backlog and remove those with no right to be here at a much faster rate than the previous Government. Our country has a proud history of providing sanctuary to those fleeing persecution. Genuine asylum seekers who have been granted refugee or humanitarian protection status should be welcomed. The hon. Gentleman would have said the same some years ago, and it is a sign of just how far his party has fallen that he cannot now bring himself to do so.

    PRIVATE RENTED SECTOR: PEOPLE GRANTED ASYLUM · 2025-10-13 · READ IN HANSARD

  17. The hon. Gentleman is conflating two separate issues. Genuine asylum seekers who have been granted refugee status and who can stand on their own two feet and work will rent, in some cases in the private rented sector and in other cases in market housing. Some dispersal accommodation for those seeking asylum will, of course, be in the private rented sector, and that can add pressure to local rental markets. That is why decisions must be made in co-ordination with local authorities and taking into account local housing pressures. More importantly, that is why the reduction in hotel use needs to be proceeded with in an ordered and managed way, not the chaotic way that the Conservatives have been calling for.

    PRIVATE RENTED SECTOR: PEOPLE GRANTED ASYLUM · 2025-10-13 · READ IN HANSARD

  18. The national planning policy framework sets out that: “The purpose of the planning system is to contribute to the achievement of sustainable development, including the provision of…supporting infrastructure in a sustainable manner.” We made changes to the framework in December last year that will support the increased provision and modernisation of various types of public infrastructure. Local development plans should address needs and opportunities in relation to infrastructure, and identify what infrastructure is required and how it can be funded and brought forward.

    NEW HOUSING DEVELOPMENTS: INFRASTRUCTURE · 2025-10-13 · READ IN HANSARD

  19. The hon. Gentleman knows that I am always happy to sit down and talk to him about these and other issues. It must be said that when preparing a local plan, planning practice guidance recommends that local planning authorities use available evidence of infrastructure requirements to prepare an infrastructure funding statement. Local authorities are not doing that in all cases, which is why the chief planner wrote to all local planning authorities recently to remind them of their statutory duty to do so. We can discuss that and other issues when I meet him.

    NEW HOUSING DEVELOPMENTS: INFRASTRUCTURE · 2025-10-13 · READ IN HANSARD

  20. I can give my hon. Friend that assurance; ours is a brownfield-first policy. She highlights an important point. The previous Government released vast swathes of the green belt in a haphazard and chaotic manner. We are taking a strategic approach to green-belt release, prioritising the release of the lowest-quality grey belt, and we are ensuring that where that happens, subject to our golden rules, we see higher levels of affordable housing and infrastructure. It is a much smarter approach. The previous Government did not adopt it, and they should stop carping about it now.

    NEW HOUSING DEVELOPMENTS: INFRASTRUCTURE · 2025-10-13 · READ IN HANSARD

  21. Water companies are not statutory consultees on individual planning applications, but they are consulted as part of the preparation of local development plans. On 26 January, the Government declared a moratorium on any new statutory consultees and announced a review of the existing statutory consultee arrangements. A consultation on proposals designed to limit the scope of statcons to where advice is strictly necessary and to remove entirely a limited number of them will be published in the near future.

    HOUSING DEVELOPMENT STATUTORY CONSULTEES: WATER COMPANIES · 2025-10-13 · READ IN HANSARD

  22. The hon. Gentleman raises an apt point. I regularly meet colleagues from the Department for Environment, Food and Rural Affairs to discuss a range of issues, including water efficiency and management. I draw his attention to the consultation we launched just last month to review the water efficiency standards in the Building Regulations 2010. As part of that, we are investigating how we can bring technologies such as rainwater harvesting into new developments safely.

    HOUSING DEVELOPMENT STATUTORY CONSULTEES: WATER COMPANIES · 2025-10-13 · READ IN HANSARD

  23. The Government recognise that community-led housing delivers a wide range of benefits. We strengthened support for it in the revised national planning policy framework published last year, and in March we announced a 10-year social finance investment to provide capital funding for community-led housing. As part of the development of our long-term housing strategy, we are considering how the Government might further support the growth of the sector.

    COMMUNITY-LED HOUSING · 2025-10-13 · READ IN HANSARD

  24. My hon. Friend has long championed co-operatives, and I recognise his commitment to expanding co-ops in London and across the country. With that example, he draws our attention to the benefits that they can provide. We are considering opportunities to legislate to establish a legal framework for a co-operative housing tenure, which would help formalise the rights and responsibilities of both co-operatives and their tenants, and make co-operative housing a more attractive option. As my hon. Friend will know, I am more than happy to discuss the matter with him further at a suitable opportunity in the near future.

    COMMUNITY-LED HOUSING · 2025-10-13 · READ IN HANSARD

  25. The hon. Lady outlined another benefit of community land trusts: getting local buy-in. The availability of land is an issue for CLTs. I have already set out some of the ways that we are supporting them through new investment. As the Secretary of State said earlier, the new social and affordable housing programme will be designed with the flexibility necessary to support a greater diversity of social and affordable housing supply, including community-led housing.

    COMMUNITY-LED HOUSING · 2025-10-13 · READ IN HANSARD

  26. As per my answer to question 4, the changes that we made to national planning policy last year were intended to support the increased provision and modernisation of various types of public infrastructure. When it comes to ensuring that necessary infrastructure is funded and brought forward in Cheadle or any other part of the country, we look to local development plans and infrastructure funding statements to address needs and opportunities.

    NEW HOUSING DEVELOPMENTS IN CHEADLE: INFRASTRUCTURE · 2025-10-13 · READ IN HANSARD

  27. On 28 September, we commenced a strategic environmental assessment to understand the environmental implications of new towns, and that will support final decisions. But no final decisions have yet been taken.

    NEW HOUSING DEVELOPMENTS IN CHEADLE: INFRASTRUCTURE · 2025-10-13 · READ IN HANSARD

  28. The hon. Gentleman has raised a number of issues. The best way in which local planning authorities can protect themselves from speculative development is to have an up-to-date local development plan in place. He touched on developer contributions; we remain committed to strengthening the existing system to ensure that new developments provide the necessary affordable homes and infrastructure. We will set out further details in due course. When it comes to the prospective new town that the hon. Gentleman mentioned, I gently point out that it was not the Government but the independent, expert new towns taskforce that recommended to the Government that Adlington and 11 other locations in England should be the sites for the next generation of new town.

    NEW HOUSING DEVELOPMENTS IN CHEADLE: INFRASTRUCTURE · 2025-10-13 · READ IN HANSARD

  29. The Government continue to implement those reforms to the leasehold system that are already in statute and to progress the wider set of reforms necessary to end the feudal leasehold system for good. We have brought into force a number of provisions in the Leasehold and Freehold Reform Act 2024, with more in the pipeline, and we remain on course to publish an ambitious draft leasehold and commonhold reform Bill later this year.

    LEASEHOLD SYSTEM · 2025-10-13 · READ IN HANSARD

  30. We know that there are good managing agents who work hard to ensure that the residents they are responsible for are safe and secure and that homes are properly looked after, but we also know that far too many leaseholders suffer from poor service at the hands of unscrupulous managing agents. In our recent consultation on strengthening leaseholder protections over charges and services, we consulted on powers to appoint a manager or replace a managing agent as well as on mandatory professional qualifications for managing agents in England. We think that those proposals strike the right balance, but we are analysing all the feedback we receive to that consultation.

    LEASEHOLD SYSTEM · 2025-10-13 · READ IN HANSARD

  31. My hon. Friend highlights that, as many of us know, the reality of home ownership for so many leaseholders falls far short of the dream. We absolutely agree that we need to strengthen the regulation of managing agents, to drive up the standard of their service. We are looking again at Lord Best’s 2019 report on regulating the property agent sector, particularly in the light of the recommendations in the final Grenfell inquiry report. We have set out a number of specific proposals in the consultation that I referred to in my previous answer. Our preferred approach in implementing mandatory professional qualifications is for agents to belong to a designated body, but all final decisions will be taken in due course.

    LEASEHOLD SYSTEM · 2025-10-13 · READ IN HANSARD

  32. We remain committed to protecting residential freeholders on private and mixed-tenure housing estates from unfair charges of the type that the hon. Lady described. We will consult this year on implementing the 2024 Act’s new consumer protection provisions for the 1.75 million homes that are subject to those charges. We are committed to bringing those measures into force as quickly as possible.

    LEASEHOLD SYSTEM · 2025-10-13 · READ IN HANSARD

  33. I can assure the hon. Lady that we will tackle the injustice of fleecehold as part of the ambitious changes that we intend to make to the leasehold system, with a view to bringing it to an end in this Parliament. The consumer protection provisions in the 2024 Act, which I have already mentioned, will ensure that homeowners who pay an estate management charge will have better access to the information that they need to challenge the reasonableness of charges at the first-tier tribunal. There are other powers as part of those protections and, as I have said, we will consult on them shortly and bring them into force as quickly as possible thereafter.

    LEASEHOLD SYSTEM · 2025-10-13 · READ IN HANSARD

  34. I am sorry to learn about the loss of social rented homes in that instance. I can assure my hon. Friend that the Government are committed to reinvigorating council house building, and I direct her attention to the five-point plan that we published in July to deliver a decade of renewal for social and affordable housing.

    TOPICAL QUESTIONS · 2025-10-13 · READ IN HANSARD

  35. As the right hon. Gentleman knows, I agree that we have seen unintended consequences of the 2010 CIL regulations—they have unfairly penalised some homeowners. I can only reiterate the commitments I gave him during that meeting. In principle, we are committed to finding a solution to this issue, and I am more than happy to meet him again and update him on the steps we have taken in the interim.

    TOPICAL QUESTIONS · 2025-10-13 · READ IN HANSARD

  36. We absolutely need to make housing affordable. One of the primary ways in which we can do that is to build more homes of all tenures, which is precisely what we are committed to doing. We can also boost the supply of social and affordable housing, which our social and affordable housing programme—worth £39 billion over 10 years—will do.

    TOPICAL QUESTIONS · 2025-10-13 · READ IN HANSARD

  37. I will refer the hon. Lady’s comments about the warm homes plan to the Secretary of State for Energy Security and Net Zero. If she wishes to write to me with details of any particular cowboy builders, I would be more than happy to read what she has to say.

    TOPICAL QUESTIONS · 2025-10-13 · READ IN HANSARD

  38. I am afraid that I am unclear about which particular site the right hon. Gentleman is referring to. Again, if he wishes to write to me, I would be more than happy to engage with him on the particulars of that case.

    TOPICAL QUESTIONS · 2025-10-13 · READ IN HANSARD

  39. I thank my hon. Friend for bringing that matter to my attention. He is right that I cannot comment on individual planning applications, but I will certainly look into the matter. I wonder whether he would write to me with further details in that regard.

    TOPICAL QUESTIONS · 2025-10-13 · READ IN HANSARD

  40. Boosting the supply of social and affordable homes is therefore at the heart of our efforts to ramp up housing supply more generally, and to meet housing need and housing demand in full across the country.

    PROVISION OF COUNCIL HOUSING · 2025-09-15 · READ IN HANSARD

  41. In the brief time available to me, I will detail how the Government are kick-starting a decade of social and affordable housing renewal, and set out the ways in which we have laid the groundwork for a reinvigoration of council house building. As the House will know, the Government stood for election on a clear manifesto commitment to delivering the biggest increase in social and affordable house building in a generation. We did so to address the urgent need to provide homes for those for whom the market cannot cater, but also because the provision of social and affordable housing supports wider housing delivery. We know, for example, that on sites where more than 40% of homes are affordable, build-out rates are twice as fast.

    PROVISION OF COUNCIL HOUSING · 2025-09-15 · READ IN HANSARD

  42. As has been noted, as a result of diminished social and affordable housing supply, particularly in the wake of the coalition Government’s decision in 2010 to slash grant funding for affordable homes, over 1.3 million households now languish on local authority waiting lists, millions of low-income families have been forced into insecure, unaffordable and often substandard private rented housing, and, to our shame as a nation, over 169,000 children will go to sleep tonight in temporary accommodation. Acutely conscious that it would not be quick or easy, we entered government determined to turn that situation around, and that is precisely what we have begun to do.

    PROVISION OF COUNCIL HOUSING · 2025-09-15 · READ IN HANSARD

  43. I congratulate the hon. Member for North East Hertfordshire (Chris Hinchliff) on securing the debate, and thank the other hon. Members who have made contributions to it. The provision of council housing is of the utmost importance to this Government. After decades of marginalisation, we are once again asserting the necessity and value of social and council housing, as a crucial national asset to be proud of, to invest in, to protect and to maintain. Doing so is imperative, because successive Government have, for decades, failed to build sufficient numbers of social and council homes in England, and that failure is at the heart of the acute and entrenched housing crisis we face today.

    PROVISION OF COUNCIL HOUSING · 2025-09-15 · READ IN HANSARD

  44. The hon. Member will know that we have not set a target as things stand, for the reasons that we have debated on many occasions, but we keep the matter under review.

    PROVISION OF COUNCIL HOUSING · 2025-09-15 · READ IN HANSARD

  45. We will continue to engage with councils and pull every lever at our disposal to increase their confidence, capacity and capability to deliver the social homes that low-income families across the nation need to live, grow and build a better life for themselves. Question put and agreed to.

    PROVISION OF COUNCIL HOUSING · 2025-09-15 · READ IN HANSARD

  46. This programme aims to upskill councils’ existing workforces, recruit and train new graduates to become qualified surveyors and construction project managers, and drive engagement with the social and affordable homes programme. To conclude, this Government remain firmly committed to delivering the biggest increase in social and affordable house building in a generation. Within that commitment, we have prioritised the delivery of social rented homes, and we are taking steps to enable councils—whether those already delivering or those with closed housing revenue accounts who want to deliver—to once again build at scale. We have achieved an incredible amount over the space of just 14 months, but there is much more to come.

    PROVISION OF COUNCIL HOUSING · 2025-09-15 · READ IN HANSARD

  47. I am conscious that this rate is due to expire at the end of this financial year, and recognise the calls from councils for long-term certainty. Considering this, we will confirm our approach to this discounted rate at the autumn Budget. Many of the measures I have mentioned so far relate to councils’ financial capacity, yet we know—the hon. Gentleman again mentioned this—that the challenges they face are not solely financial, and that as rates of delivery have declined in recent decades, so too have the skills and capacity of their housing teams. In response, in partnership with Homes England and the Local Government Association, we have launched the council house building skills and capacity programme, backed by £12 million of funding this year.

    PROVISION OF COUNCIL HOUSING · 2025-09-15 · READ IN HANSARD

  48. These reforms will include a 35-year exemption from the scheme for newly built homes, and a first option for councils to repurchase homes acquired through right to buy if they are sold on. On top of this, from 2026-27, we will act on a long-standing ask from councils by allowing them to combine right to buy receipts with grant funding from the social and affordable homes programme. In addition to revenue generated from sales through right to buy and capital subsidy, we know how important borrowing is to councils’ delivery plans. Since 2023, a preferential borrowing rate has been available from the Public Works Loan Board for council house building. So far, this preferential rate has enabled councils to borrow £6 billion for investment in new and existing homes.

    PROVISION OF COUNCIL HOUSING · 2025-09-15 · READ IN HANSARD

  49. We want to retain a scheme that helps long-standing tenants to buy their own homes, but we could not ignore the detrimental impact the right to buy was having on existing stock and councils’ confidence to deliver new social and affordable housing. So we took decisive action to deliver a fairer, more sustainable scheme that provides better value for money and creates the certainty for councils to once again build at scale. Changes that have already come into effect include returning the maximum cash discounts to between £16,000 and £38,000. We have also enabled councils to keep 100% of their right to buy receipts for reinvestment in new and existing homes. But we will not stop there. Following consultation, we will legislate for a more comprehensive set of reforms when parliamentary time allows.

    PROVISION OF COUNCIL HOUSING · 2025-09-15 · READ IN HANSARD

  50. In addition, we have recently completed a consultation on how to implement a social rent convergence mechanism, the outcome of which will be confirmed at the autumn Budget. The inclusion of this mechanism will be beneficial to councils, with many authorities letting homes below formula rent. Both these measures will support their capacity to borrow and invest in new and existing homes. Beyond investment, we have developed a series of measures designed to enhance councils’ confidence, capacity and capability to deliver, and I want to cover some of them as they directly address the subject of the debate. As the hon. Gentleman is aware and has noted, one of the Government’s earliest acts was to introduce transformative changes to the right to buy.

    PROVISION OF COUNCIL HOUSING · 2025-09-15 · READ IN HANSARD