The Levelling Up and Regeneration Bill has potential risks that will negatively impact the number of new genuinely affordable homes. We’ve joined three other funders to ask that the Secretary of State for Levelling Up, Housing & Communities acts now to prevent this and works to tackle the housing crisis. Read the letter below.
Dear Secretary of State,
A secure, decent place to call home is the foundation for good health and communities that thrive. We are four charitable funders that, collectively, invested over £20 million over the last three years to tackle the housing crisis. We focus our support on people on low incomes, often working or caring for dependents, who are at greatest risk of being made homeless.
At the 2019 election, the Government promised to build “hundreds of thousands of affordable homes”. It expresses a desire for a lasting legacy of “the right homes in the right places… to create thriving communities”. At present, nearly half 44% of all such ‘affordable’ homes are funded by developers’ contributions when building new sites. The Levelling Up and Regeneration Bill, currently in Parliament, and planned reforms to move Section 106 to a National Infrastructure Levy, has potential risks that will severely, negatively and lastingly impact the number of genuinely affordable homes delivered each year. This is because, without a ringfence, Levy revenues may be irretrievably diverted to top up day-to-day local government spending. The new Levy may also undermine levelling up, by raising revenue in areas with high land values that then leads to either better infrastructure there, or more affordable housing in areas which already have higher concentrations of it.
The number of affordable homes built is already significantly below the number of homes needed to support thriving communities. In 2020/21, 52,100 new affordable homes were completed, a little over 1/3 of the estimated need. We and others are worried that, without urgent action to ensure that the number of affordable homes delivered each year is not negatively impacted, the proposed changes could make the housing crisis worse.
We therefore ask the Government to set out clearly its requirements on developers to contribute to on-site, genuinely affordable housing within the Levelling Up and Regeneration Bill. We also ask government to set out clear guidance on what is meant by ‘affordable’ by ensuring rents can be linked to local incomes rather than market prices.
The Government must match the legislation around levelling up with immediate action. It should invest now to build affordable housing during the recession. This investment will generate long-term savings in benefits and health and social care spending, and in people’s lives over generations.
We will be monitoring the Levelling Up and Regeneration Bill and accompanying legislation as it passes through Parliament, into law and out into the community. We call on the Government to make the above changes now, to build a future we can all be proud of.
Yours,
Samantha Stewart, Acting CEO, Nationwide Foundation
Trust for London
Felicity Mallam, Director, Wates Family Enterprise Trust
Barbara Reichwein, Programme Director, Impact on Urban Health
The letter has been co-signed by
Advice for Renters
Alliance for Childhood
Ambassadors for Change
Asociat
Aspire Community Works CIC
B-Radical Ltd
Better Homes Enfield
Big Education
Campbell Tickell
CARIS Families
Centre for Social Change and Justice, University
of East London
Citizens Advice Sutton
Citizens Advice Westminster
Cllr Alastair Binnie-Lubbock
Cllr Andree Frieze
Cllr Danny Keeling
Cllr Nicole Griffiths
Cllr Ria Patel
Commonweal Housing
Community Language Support Services
Duncan Lewis
Ealing Law Centre
Employment 4 All CIC
Enfield LGBT Network
Eritrean community In the uk
Fairer Housing
Glass Door Homeless Charity
Groundswell
Hilda Mango (Newham Homelessness Action
Group)
Home Kitchen
Home-Start London
House Of Polish & European Community
(HOPEC)
Housing Action Southwark and Lambeth
Indoamerican Refugee and Migrant
Organisation (IRMO)
Iraqi Welfare Association
Island Advice Centre
JENGbA
JMF Billing Services
Jon Cruddas MP
Just Homes Charity
Justin Wyness Ltd
Justlife
Kineara CIC
Kurdish and Middle Eastern Women’s
Organisation (KMEWO)
La Fraternité Guineeenne
Latin American Women's Aid
Law for Life
Lewisham Refugee and Migrant Network London Gypsies and Travellers
London Legal Support Trust
London Renters Union
London Tenants Federation
Merton Centre for Independent Living
METRO Charity
Migrants Organise
Mums On A Mission
New Horizon Youth Centre
Nucleus Legal Advice Centre
Optimism Supported Housing
Orgin
Osbornes
Pamela Cramer (Retired humanitarian affairs
officer)
Phil Geraghty (Founder/ Director of
Crowdfunder)
Poverty Concern
Praxis
Public Interest Law Centre
Race Equality Foundation
Refuge
Renters' Rights London
Sapphire Independent Housing
Save Central Hill Community
Settle
Shared Health Foundation
Single Homeless Project
Sir Stephen Timms MP
Solace Women's Aid
South West London Law Centres
Southwark Law Centre
Southwark Travellers Action Group (STAG) Stonewall Housing
Studio MAC/PEN
Surrey Square Primary School
The Felix Project
The Magpie Project
Tower Blocks UK
Trust for London
Unseen Tours
West London Welcome
Waltham Forest Community Hub
YMCA St Paul's Group
Young Roots
Your Place
Youth Legal
Z2K
Zoë Garbett (Green Party Candidate for Mayor
of London)