Overview

This bill concerns amendments to the Housing and Planning Bill regarding financial arrangements for the provision of new affordable housing when existing dwellings are redeveloped. The Lords and Commons disagree on the specific mechanisms for ensuring that sufficient new affordable homes are built to replace older ones.

Description

The core issue revolves around how local housing authorities will be compensated when they demolish old housing. Multiple amendments were proposed by the Lords, aiming to ensure that authorities retain sufficient funds to build new social and affordable housing. These amendments specified conditions under which authorities would retain funds from the sale or redevelopment of existing properties. The key disagreement lies in the specific conditions (demonstration of need, Secretary of State's agreement, the number of new homes required for each old dwelling, location), and whether these should be mandated or left to negotiation. The Commons consistently rejected the Lords' amendments, citing the alteration of financial arrangements established in the original bill. The final Lords' amendment (47E) suggests the replacement ratio of new to old affordable homes should be at least 1:1 outside Greater London and 2:1 in Greater London, while also mandating consideration of applications for social rented housing from the local authority. The Commons rejected this final amendment as well.

Government Spending

The amendments would affect government spending by altering the distribution of funds generated from the sale or redevelopment of existing housing stock. No specific figures are included in the provided text of the bill's amendments, therefore the precise financial impact remains unclear. The Commons' rejection of the amendments suggests a desire to maintain the original financial framework of the bill, avoiding additional expenditure.

Groups Affected

• Local Housing Authorities: The amendments directly impact their ability to fund new social and affordable housing developments. The Commons' rejection might limit their resources for such projects.
• Social Housing Tenants: The availability of new social housing depends on the success of the proposed amendments. Rejection of the amendments reduces the likelihood of increased provision.
• Developers: The final financial arrangements will indirectly affect them through the altered conditions for redevelopment projects.
• Residents in areas with high housing need: The disagreement could influence the volume of new affordable housing built in their communities, depending on whether the original bill's provisions are sufficient to meet the need.

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