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Levelling-up and Regeneration Bill

My Lords, Amendment 201 in the name of the noble Baroness, Lady Hayman of Ullock, relates to the definition of affordable housing. The amendment proposes a consultation on the definition that currently appears in the National Planning Policy Framework. We have had good debates about these issues, both today and in Committee, and I recognise the strength of feeling around the importance of ensuring that affordable housing meets the needs of those who require it.

I can reaffirm the Government’s commitment to delivering more houses for social rent. We are carefully considering the consultation responses to our proposal to amend national planning policy to make clear that local planning authorities should give greater importance in planning for social rent homes. A large number of the new homes delivered through our £11.5 billion Affordable Homes Programme will be for social rent.

Nevertheless, it is also important that the definition of affordable housing in the NPPF provides local authorities with sufficient flexibility to plan for the type of affordable housing that is needed in their area. The existing definition includes a range of affordable housing products for those whose needs are not met by the market. Those needs will vary depending on people’s circumstances and in different housing markets.

I am also mindful of the point made during our debate in Committee by my noble friend Lord Young

of Cookham, about the trade-off between the level of discount that a type of affordable housing provides and the number of such homes that can be delivered.

We all agree that we need to consider this issue further. That is why we have committed to a wider review of the national planning policy once the Bill has received Royal Assent. That will include the production of a suite of national development management policies. This work will need to consider all aspects of national policy—and that includes the way that affordable housing is defined and addressed—and would be subject to consultation. I look forward in that consultation to hearing all the views from the sectors which have been mentioned this afternoon. I think we all agree on this.

What we do not agree on is how we should process this particular issue that we want to deliver. I therefore hope that the noble Baroness, Lady Hayman of Ullock, feels able to withdraw her amendment at this stage.

Amendments 201A and 285A from the noble Lord, Lord Stunell, raise two important matters relating to affordable housing. The first matter is how affordable housing is defined for the purposes of this Bill. The approach has been to link this to the definition of social housing in the Housing and Regeneration Act 2008. This definition encompasses both rented and low-cost home ownership accommodation that is made available in accordance with rules designed to ensure it is made available to people whose needs are not adequately served by the commercial housing market. While I understand the noble Lord’s argument that affordable housing should be defined more tightly, I am eager to avoid depriving local authorities of sufficient flexibility to determine what is most appropriate to meet the needs of their area.

However, the Government are taking action to secure the delivery of more social rented homes, as I have said, for which rents are set using a formula that takes account of relative local incomes. A large number of these new homes, as I have said before, will be delivered through our £11.5 billion Affordable Homes Programme and will be for social rent.

We are also carefully considering the consultation responses to our proposal to amend the national planning policy to make clear that local planning authorities should give greater importance in planning for social rent homes. The noble Lord, Lord Stunell, also raised the disclosure of information relating to the viability of affordable housing in housing developments. Although I recognise that the noble Lord is seeking to improve the transparency of this process, I do not believe that the change he is proposing is necessary. As discussed earlier on Report, the new infrastructure levy will allow local authorities to require developers to pay a portion of their levy liability in kind in the form of on-site affordable housing. This new “right to require” is designed to replace site-specific negotiations of affordable housing contributions.

While viability assessments may be used in setting infrastructure levy rates, any developer that wishes information to be taken into account must submit it to be examined in public. Levy rates and charging schedules will be matters of public record.