Labour would direct Affordable Homes Programme ‘overwhelmingly’ towards social rented homes

Mr Pennycook said that, after decades of marginalisation, the “necessity and value of social housing” needs to be asserted once again.

“It is a crucial national asset to be proud to invest in, to protect, and to maintain,” he said. “Labour will prioritise it as the mark of a country that takes seriously its duty to house those the market cannot cater, as a platform for families to live, grow, and to build a better life for themselves, and as a public good that benefits the nation as a whole.”

Right to Buy

Mr Pennycook said that Labour will seek to reduce the number of social housing units sold off each year through the Right to Buy scheme and build more homes to go “net positive” on social housing numbers within the “very early years” of the next parliament.

He said that it will be net positive on units and Labour would seek, where possible, like-for-like replacements, but that in certain parts of the country this can be “incredibly difficult”.

He said: “As well as boosting social housing supply, we need to do better to protect the social housing stock we have.”

Mr Pennycook added: “Let me be clear: Labour is not proposing the abolition of the Right to Buy. We believe it is right that those social tenants who have lived in their homes for many years retain the right to purchase their property at a reasonable discount.

“But with only a fraction of social homes sold off through the Right to Buy replaced, and with many making their way quickly through subsequent sales into the private rented sector, with all the implications that has for a rapidly rising housing benefit bill, the dramatically increased discounts introduced in 2012 cannot possibly be justified.”

Mr Pennycook said that Labour does not yet have a target or metric to measure success of net positive social housing units.

“We want to make sure it stacks up, that we can absolutely deliver it, and we’re not in that position yet,” he said.

He added: “And if we can go net positive very early on, alongside all of the changes we’re going to make on land reform, CPO [compulsory purchase order] planning reform, I think we can get numbers significantly up.”

Building new homes

Mr Pennycook said that a Labour government will aim to deliver a “marked increase” in affordable housing supply.

“There is no solution to the housing crisis that does not involve a substantial programme of housebuilding to address our nation’s affordable homes deficit,” he said.

Mr Pennycook said that Labour would not take forward the Conservative government’s Infrastructure Levy because it would generate less infrastructure and fewer affordable homes.

Labour plans to retain and strengthen the present Section 106 system of developer contributions. As well as this, the party plans to boost overall housing supply and secure more affordable homes through planning.

Mr Pennycook said planning reform is going to be “absolutely central” to the agenda.

“We have a very ambitious programme because we’re going to inherit, I would call it, a colossal mess,” he said.

“There’s not going to be a lot of money, reform has to do a lot of work. Now reform can’t do everything, but reform can do a lot of work.

“And planning reform can get more houses built and get more affordable houses built; reform in other areas can reduce the grant subsidy gap – that’s compulsory purchase powers, reform on rent policy, certainly, for example, can help the registered providers in this room with their borrowing cost.

“So, we can do a lot with reform, and we intend to, and that will underpin a lot of [the plans of] the next Labour government if we are given a chance to serve.”

Labour will repurpose the Affordable Homes Programme to direct it “overwhelmingly” toward the provision of social rented homes. He said the party is also “convinced” it can secure “better outcomes” from grant funding from the programme.

Mr Pennycook said there is a “strong case” for even greater flexibility around funding rules to avoid annual programme underspend and helping social landlords get on with maximising delivery.

Mr Pennycook said: “Bringing England’s acute housing crisis to an end will not be quick or easy. But if we are prepared to finally tackle its fundamental causes, with sustained focus, energy and determination, it can be done.

“If elected, we intend to play our part in realising that objective, and in turn, we will need you to play yours, to rededicate yourselves to realising your core purpose, and to gear up to maximise delivery, and build the high-quality affordable homes we need.

“I hope to be in a position in the not-too-distant future, where we can work together to that end. And in so doing take the first tangible steps towards a country where everyone really does enjoy a decent, safe, secure and affordable home in which to live.”