I thank all noble Lords who have contributed to this debate. I fully understand the desire of the noble Lords, Lord Kennedy and Lord Beecham, and others to ensure that affordable housing is not lost to an area, and the concerns raised by the right reverend Prelate and others relating to rural issues.
Extending right-to-buy discounts to housing association tenants was a manifesto commitment taken forward through a voluntary agreement with the sector. This is about opportunity—social tenants having equal access to the opportunities for home ownership. I am sure that noble Lords agree with that. The other place was supportive of the agreement. The National Housing Federation and the housing association sector came to government with this offer. It is entirely voluntary and represents 96% of stock.
Under the terms of the agreement, housing associations will deliver an additional home through new supply nationally for every home sold under the voluntary right to buy. This will increase overall supply and housing associations will have discretion not to sell
particular properties, including where those properties would be difficult to replace. As a number of noble Lords said in Committee, to legislate would go against the voluntary nature of the agreement and introducing controls would present a classification risk.
While I appreciate the strength of feeling on this issue, the Government cannot accept Amendment 51. Placing restrictions on housing associations in implementing the voluntary right-to-buy agreement by requiring replacements to be of the same tenure and in the same area would, we believe, fetter their ability to deliver housing in accordance with local need. Under the terms of the voluntary agreement, housing associations will have the flexibility to build replacement properties where they are needed. Governments should not instruct them where to build replacement homes, nor specify what tenure the replacement should be. I pay tribute to housing associations, which have a history of delivering new housing supply that this country needs. Setting arbitrary rules without any reference to local conditions is likely to hinder not help them to deliver new affordable homes. They are best placed to determine what type of housing is best suited to a community and it is only right that decisions on tenure be taken locally.
The noble Lord, Lord Beecham, raised the issue of Section 106 properties. We are engaging with the sector on the implementation of the voluntary right to buy, including what is provided under Section 106 agreements. He also asked about monitoring. Regular statistics are published about property sales by councils under the existing right-to-buy scheme. Clause 64 allows for the monitoring of housing association sales under the voluntary agreement and I can confirm that replacements will also be monitored.
The noble Lord, Lord Wallace, asked about engagement with charities. I can confirm that officials and the National Housing Federation have held working groups with charities to work through the issues that he raised. My noble friend the Minister and I would be very happy to meet further on this matter. I can also confirm that almshouses are exempt from the right to buy.
Amendment 52 relates specifically to rural areas and would require at least one replacement property in the same or an adjoining parish as the property sold. I completely agree that we should support strong and sustainable rural communities. As my noble friend Lord Young rightly said, the voluntary agreement, as well as giving housing associations the flexibility to build replacement properties where they are needed, already gives them discretion over sales of properties in rural locations. My noble friend Lady Williams will shortly talk in more detail about rural needs. It is clear from our engagement with the sector that associations are intending to exercise their discretion not to sell properties in rural areas where they would be difficult to replace. These are organisations that have well established and supportive relationships with the local communities that they serve and, as the noble Lord said, often have charitable status that ensures that they will deliver housing that the community needs. However, they also have to operate within the confines of what is practicable—for instance, in terms of land assembly
and planning permission. They need the freedom to find the best opportunity available for delivering for local housing needs.
The noble Baroness, Lady Hollis, asked what happens when a housing association has not signed up to the agreement and all its properties are in a rural area. As I have said, the deal is voluntary; housing associations, whether signed up to the agreement or not, do not have to sell any home, whether rural or not, where this is not in the interests of the area. She also asked about exercising discretion and the portable discount. Where a housing association exercises its discretion not to sell a home, the housing association will provide an alternative from its own stock or that of another housing association. Housing associations would work together to develop joint arrangements to enable this to happen.