To ask His Majesty’s Government whether they remain committed to building 300,000 houses a year.

Yes, the Government are committed to continuing to work towards our ambitious target of 300,000 homes a year, as set out in the 2019 Conservative manifesto. Annual housing supply is up 10% compared to the previous year, with over 232,000 houses built and delivered in 2021-22. This is the highest yearly rate for the last 30 years.

I am grateful to my noble friend, who is dealing heroically with housing and the Levelling-up and Regeneration Bill, which after eight sittings still has as many groups ahead of it as at the first. Does she understand the concern that the concession made over Christmas to head off a rebellion in Another place has made it even more difficult to hit the 300,000 target? Does she understand that many of us want to give the other place an opportunity to think again by amending the Bill, and so help the Government to hit their target?

The Government are committed to building more houses of the right type in the right places, but we know at the moment that there are economic challenges faced by the sector. We need to work as closely as we are, and more closely—and with Homes England—to better understand those challenges and to provide support. We have already consulted on changes to the planning policy that will support how we plan to deliver these houses in our communities, and we will respond to that consultation in due course. I assure my noble friend that we remain committed to a plan-led system, and national planning policy that expects local authorities through their plans to make sufficient provision for housing and identify the sites to deliver these much-needed homes to meet local needs.

My Lords, the noble Lord, Lord Campbell-Savours, is participating remotely.

My Lords, if, prior to planning approval, land for both high-density public and private housing development was acquired at agricultural acreage prices, as has happened in parts of Europe, and then allocated for both social rental and restricted leasehold sale to housing associations and housing trust development programmes, would that not be a huge incentive for construction levels not seen since the 1970s, as against today’s numbers, where scarcity is driving up prices and denying millions a home?

The noble Lord brings up a very interesting idea. We are looking at different ways of land use in the levelling-up Bill, and I am sure that there will be more discussions on those sorts of issues.

My Lords, will my noble friend bear in mind the immortal words of William Morris, that a thing of use should also be a thing of beauty? Can we have some attention paid, far more than in the past, on the quality of housing, and make sure that it can easily be equipped to deal with climate change?

My noble friend is absolutely right and if he has the time over the Recess to read the levelling-up Bill, he will see that the Government have plans and are committed to building better houses with better design, and building more energy-efficient housing as well.

My Lords, changes to the planning system, to which the Minister referred, pose a risk to the supply of new housing. In a recent public letter to the Secretary of State, 19 leading organisations from across the housing sector expressed serious concerns about the impact of proposals, particularly for the new infrastructure levy and its impact on the supply of housing, particularly social and affordable housing. What steps are the Government taking to respond to these widespread concerns and protect affordable housing delivery?

We do not agree. We absolutely want to protect the amount of affordable housing and particularly the social housing part of that affordable housing. We believe the Bill will help us to do that. We will continue with it and continue to deliver much-needed housing in that sector.

Noble Lords:

My Lords—

My Lords, it is the turn of the Cross Benches.

Does the Minister agree that, of the 300,000 target, 10% or 30,000 homes ought to be for older people’s housing—retirement housing—because this gives us terrific gains in terms of health and care facilities? It also means two for one because, for every one of those homes, another is released by an older person moving on. Can we in the levelling-up Bill therefore insist on local authorities including provision for older people—retirement housing—in their local plans?

The Bill makes it clear that local authorities, in their local plan, have to include housing for older people and for disabled people and other vulnerable groups. The Government want to deliver the best possible outcomes for these groups by helping them to live independently in safe, appropriate and good-quality housing for as long as they can possibly stay in it. The £11.5 billion affordable homes programme includes the delivery of new supported housing for older, disabled and vulnerable people, and our planning rules already mean that councils must consider them in their plans.

Targets do not get homes built. People do, people with a wide range of skills. Given that every single report, from Kate Barker in 2004 to the recent BEIS figures, have warned us of a severe skills shortage in the construction industry, what are the Government’s plans to reverse this decline? Do the Government see SME builders as part of the solution, as they appear to have been phased out of significant housebuilding altogether over the past decade?

We are collaborating across government to ensure that we are supporting the sector. The Department for Education is improving training routes into construction and creating opportunities for workers to retrain by working with employers to make apprenticeships available and more flexible and to promote T-levels. The Government are increasing funding for apprenticeships across all sectors, including construction, to £2.7 billion in 2024-25. We are continuing to fund more apprenticeships in non-levy-funded employers, which are often SMEs, and the Government will continue to meet 95% of the apprenticeship training cost for those companies.

Can my noble friend estimate the significance of a recent report that the Nationwide Building Society has been directly involved in the construction of 239 properties on wasteland? This would suggest that there are other ways that we can make sure that the Government’s target figure can be met.

My noble friend is absolutely right. We need to look at all types of construction ideas and use whatever financial incentives we can to ensure that we are building the houses that we know we need.

My Lords, having somewhere safe, stable and secure to live is essential for good mental and physical health. For too many people, housing insecurity and poor mental health reinforce one another. Will the Minister commit to ensure that all new housing developments include within their plans a priority to promote good mental health and well-being for the population?

I thank the noble Baroness for that question. This is something that should be brought up in the LURB as we discuss it further. She is absolutely right. We need more good-quality housing in the United Kingdom because we know that if somebody is in a good-quality, safe home their mental health and physical health are better.

My Lords, I declare my interest. I was grateful to the Minister for mentioning energy efficiency in one of her earlier answers. In the light of the CCC’s report about adaptation and the Government’s proposals today on energy security, will she look at my Amendment 486 to the LURB? The Government might save themselves some time by adopting it in relation to solar panels on new housing.

I am sure we will discuss the noble Baroness’s Amendment 486 in the LURB when we get to it.