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Shadow homelessness minister says affordable definition should be linked to income
The shadow minister for homelessness and building safety said the definition of affordable housing needs to be changed to “make it relate to the income in people’s pockets and their household budgets”.
Mike Amesbury told attendees of a panel session at Labour Party Conference that “the definition of affordable housing had been vandalised” by the Conservatives.
The shadow minister for homelessness and building safety made the remarks as part of a panel on tackling poverty, organised by the Chartered Institute of Housing (CIH) and chaired by CIH boss Gavin Smart.
“Let’s look at the definition of affordable housing, it’s been vandalised hasn’t it? It’s absolute nonsense,” Mr Amesbury said.
“80% of market rates – we’ll change that to make it relate to the income in people’s pockets and their household budgets.”
The affordable rent tenure was introduced in England in 2011 to make up for huge cuts to social housing grant by the coalition government.
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Social rent is calculated according to a formula that takes into accounts local incomes and property values, whereas affordable rent is set at up to 80% of local private sector rent.
Research by Inside Housing from April this year revealed that affordable rent in England is double the equivalent social rent in some areas.
Mr Amesbury also pledged that the Labour Party would “fundamentally increase the supply of social housing” as part of a long-term plan on housing.
“We need hope and we need houses,” he added.
He also said that the proposed infrastructure levy in the Levelling Up Bill has “got to be ditched, that’s nonsense as well”.
Earlier this year, dozens of housing associations, house builders, charities and councils urged the government to abandon the levy, warning it could cause a reduction in the number of new affordable homes and less money assigned to infrastructure.
Mr Amesbury said he “can’t make any financial commitments” on Local Housing Allowance (LHA), which has been frozen since 2020, but that he understood its importance.
“I can see the evidence staring me in the face on a daily basis as a constituency MP and I’ve got no doubt that my good colleague Rachel Reeves in her Leeds constituency sees that evidence as well.”
He also reiterated that councils need more resources to allow for increased building, in line with Ms Reeves’ conference announcement of plans to accelerate infrastructure planning, including appointing 300 new planning officers.
After the session, Mr Smart told Inside Housing: “Too many people are being failed by our social security system, which no longer adequately meets their costs of living. A review of the system is overdue so the commitment to carrying one out under a future Labour government is very welcome.
“The shadow minister’s recognition that the definition of affordable housing needs updating is both welcome and timely. Setting some rents to a percentage of market rents when those rents are growing at a rate far in excess of incomes is not sustainable.
“It was also encouraging to hear the shadow minister recognise that LHA rates have failed to keep pace with rent levels, effectively pricing out housing benefit recipients from large swathes of the private rented sector.
“We hope that a future Labour administration will be willing and able to find the financial capacity to commit to an overdue uprating of LHA levels.”
