Introduction of the Affordable Housing Legislative Competence Order    

Date:

9 January 2008

By:

Jocelyn Davies, Deputy Minister for Housing

You will wish to be aware that the Welsh Assembly Government is now ready to introduce the draft Affordable Housing Legislative Competence Order, with the support of the Westminster Government.   Standing Orders require us to introduce (by laying before the Assembly) a draft Order on a working day in a sitting week; it is therefore my intention to lay the draft Order on Monday morning 12 January and to table a motion seeking the Assembly’s approval of the draft Order on Tuesday 13 January for consideration in Plenary on Tuesday 20 January. 

However, in view of the significance of this Legislative Competence Order I am making available to the public, via a press release, a summary of its contents and a copy of the press release is attached for your information.

Friday 9 January 2009

W09012-ESH

Social housing legislation announced by Welsh Assembly Government

The Welsh Assembly Government has today (9 January) confirmed that it is ready to introduce the draft Affordable Housing Legislative Competence Order with the support of the Westminster Government.

The new powers that would be provided by the Order could enable local authorities to preserve their social housing stock, thereby increasing the availability of affordable housing for rent.

Today the Deputy Minister for Housing, Jocelyn Davies, has written to the Assembly committee that scrutinised the Affordable Housing Legislative Competence Order informing them that it will be tabled on Monday afternoon (12 January).

The next step will be for the new powers order to be put to the National Assembly for Wales for approval.

Deputy Minister Jocelyn Davies said: “Both Local Government and housing associations have welcomed the fact that these powers will lead to legislation that will eventually provide them with greater flexibility in the effort to secure an adequate supply of affordable housing in Wales.”

The Assembly Government is acutely aware of the shortage of affordable housing and how the lack of homes for rent is having an impact on Welsh communities.

Housing need is also on the increase as a result of the difficulties facing first time buyers, the slow down in new build as well as the increase in mortgage repossession orders.

“The Assembly Government recognises people’s aspirations to own their own home. At the same time there are areas of Wales where we may need to protect the stock of social housing for rent, while we take action to increase supply, so that we can help families in need of local accommodation,” said Ms Davies.

“Since the Right to Buy was introduced, almost half the stock in Wales has been sold and hasn’t been replaced. It is vital at this time that local authorities and registered social landlords are able to create adequate housing stock to meet the housing need.

“Having these powers will mean that the Assembly Government will be able to bring forward legislation so that councils can apply to take action to suspend temporarily the Right to Buy scheme if they consider it necessary.”

It is not the policy of this Assembly Government to abolish the Right to Buy scheme, only to respond to requests by local authorities to suspend the scheme temporarily in areas of high housing pressure. This LCO will allow the Assembly to reform the Right to Buy scheme so that it meets the needs of communities in Wales today.  Any decision by any future Assembly Government to abolish the Right to Buy scheme would have to be in agreement with the Secretary of State for Wales.

Subject to the National Assembly agreeing the LCO, the Secretary of State for Wales will put the order before Parliament for agreement.  If passed by both legislatures, the Assembly will then be able to legislate, by way of Assembly Measures, in relation to the disposal of land and housing by social landlords.

At this stage, the Welsh Assembly Government has outlined that a subsequent Measure would put in place a system where it will be up to the Local Authorities to identify any specific areas where the Right to Buy could be temporarily suspended, where they have identified particular housing pressure. This would give them time to identify other methods to increase the supply of affordable housing.

Notes to Editors:

A Measure can only be considered once the Assembly has the powers to legislate. Therefore, it is not possible to be precise about the timetable for the Measure until the LCO has received approval by the Assembly, Parliament and by the Privy Council.

The LCO and subsequent Measure is one part of action by the Assembly Government to secure affordable housing. The Assembly Government is determined to deliver on its One Wales commitment to provide an additional 6,500 homes.

Suspension of the Right to Buy where the local case is made will protect the stock of social housing while the local authority implements its Affordable Housing Delivery Statement to increase the amount of affordable housing available in the area.

We are making available an additional £42 million over three years from the Strategic Capital Investment Fund to help us meet our targets and boost the construction industry.

A further £9.5 million has been ring fenced this year for mortgage rescue. We are consulting on the re-introduction of the do-it-yourself Homebuy scheme. We have also taken action to ensure that planning guidance supports the delivery of affordable housing, for example through Section 106 Agreements.