Housing: Social Homes for Rent - Question

Part of the debate – in the House of Lords at 2:46 pm on 11th February 2020.

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Photo of Baroness Berridge Baroness Berridge Baroness in Waiting (HM Household) (Whip) 2:46 pm, 11th February 2020

Noble Lords have previously raised this issue in debates on this topic. Social housing in this country comes from the budget in the affordable housing programme and the borrowing that local councils can now do, and, yes, under Section 106 agreements. There has been a problem with developers then saying that they are not economically viable. In the plans I have mentioned, there are now requirements that landowners and site purchasers will know the likely costs up front, so they will know the types of affordable housing provision they have to provide and the levels of it. They will know that up front, before they buy the land, so they cannot then come back to the council and say, “Oh, we purchased the land for a different sum of money, and it is now no longer economically viable”. I hope that that will close the loophole.