Housing and Regeneration Bill

moved Amendment No. 8: 8: Clause 2, page 2, line 7, at end insert— ““( ) In assessing the needs of people living in England in accordance with subsection (1), the HCA shall balance the needs for affordable housing in urban and non-urban communities.”” The noble Earl said: My Lords, I remind the House of my declarations of interest made at earlier stages of the Bill, including being a councillor involved in planning and a landlord of rental accommodation. The amendment deals with the viability of rural areas, and the balance of the needs of urban and non-urban areas. There was widespread recognition from all parts of the Chamber during the Second Reading, and in Grand Committee, that rural areas have not received their fair share of resources, and that the concentration of effort has been directed towards urban areas. This is supported by recent House of Commons Library figures, which found that London and other cities now receive up to twice as much per head from the Government as their rural counterparts. The result has been that, of the total housing stock in urban areas, 23 per cent—nearly one in four—is social housing; while in rural areas, only 5 per cent—one in 20—is social housing. These figures come from the Government’s Affordable Rural Housing Commission’s report. A Defra report on population trends in rural areas found that the population in rural districts has risen eight times faster than in urban areas. Furthermore, the Halifax review in 2007 found that the average price of housing in rural areas was £30,000 more expensive than in urban areas, while the average earnings were £5,000 lower. Those seeking housing in rural areas have the raw end of the deal; the cards are stacked against them. To get a roof over their heads, many are forced to move out of their rural areas to towns and cities, doing untold damage to community cohesion in rural areas. With this background in mind, my noble friend Lord Dixon-Smith and I tabled two amendments in Committee. The first concerned the composition of the board. I argued that there must be representation on the board from those organisations operating at the coal face. In order to address the present imbalance for rural housing, I argued that there should be a champion for rural housing on the board. In response, the noble Baroness, Lady Andrews, said that she was, "““not in favour of a single champion for rural areas””," and that she hoped that, "““the board will achieve that by having a genuine mix of experience, so rural areas will not need a separate champion because they will be championed by the board””.—[Official Report, 13/5/08; col. GC 271.]" The noble Lord, Lord Best, suggested that the HCA should be required to consult a number of organisations whose interests should be represented. The Minister assured the Committee that the HCA would fully consult with a wide range of interested organisations. We are happy to accept those assurances. Later in Grand Committee, we tabled an amendment that required that, "““the HCA shall take particular account of the viability of rural communities””." The amendment’s sentiment was widely supported, and there was general agreement over the concerns for rural communities. However, in responding, the noble Lord, Lord Bassam, said that he did not like the wording of the amendment as it required the HCA to pay particular attention to rural areas rather than take a more rounded approach to all areas. He added that recently more funds had been allocated to rural districts for social housing and that he, "““would expect that to continue over into the new agency””.—[Official Report, 3/06/08; col. GC 14.]" While I concede that there has been an improvement recently, I hope that he will concede that as the Bill stands there is no guarantee that this improvement will continue. The noble Baroness, Lady Andrews, wrote a very helpful letter to all Members of the Committee with two pages devoted to this rural issue. In it she said: "““I wanted to take this opportunity to reiterate the Government’s absolute commitment to the importance of ensuring the viability of our rural communities. I wanted in particular to emphasise the importance my Department attaches to the issue of rural housing””." She also said that she, "““must continue to resist making specific reference to rural communities on the face of the Bill, as I would not wish to specifically raise the needs of rural communities above all other communities in England””." This very much echoed what the noble Lord, Lord Bassam, said in Committee. Therefore, we have to decide whether we can accept the Minister’s assurances that rural areas will receive a fair crack of the whip in future years. I have to say that we on these Benches remain sceptical. After all, the Minister’s own department’s report from the Affordable Rural Housing Commission highlighted the crisis in rural housing in 2004. Yet, four years later, there is still only 5 per cent of affordable housing in rural areas as a percentage of the total housing stock. I also remind the House that the noble Baroness, Lady Dean, who recently headed the Housing Corporation—I am sorry that she is not in her place—said at Second Reading: "““It is essential that, somewhere within the new system, there is something ensuring that rural housing is not forgotten. It would be so easy to forget it””.—[Official Report, 28/04/08; col. 59.]" That provision should, presumably, be included in the new Housing Bill. We on these Benches agree with the noble Baroness. Therefore, we have tabled this amendment, which states that, "““the HCA shall balance the needs for affordable housing in urban and non-urban communities””." Noble Lords will see that in response to the Minister’s letter we have removed the requirement specifically to raise the needs of rural communities above those of all other communities. The amendment leaves it up to the HCA to decide how best to balance the needs for affordable housing in urban and non-urban areas. I hope that the Minister will feel able to accept it. I beg to move.