Government sees off Tory-led bid to restore housing targets as Lib Dems abstain

A Tory-led bid in the House of Lords to restore compulsory housing targets for local areas to tackle a nationwide shortage has failed after the Liberal Democrats refused to back it.

The move, supported by Labour, would have overturned the decision by Communities Secretary Michael Gove to make the requirement advisory rather than mandatory in the face of a Tory rebellion.

However, the Government saw off the challenge by 164 votes to 129, majority 35, after the Liberal Democrats abstained, arguing that “targets do not build homes”.

The abortive attempt to change the Levelling-up and Regeneration Bill was spearheaded by Conservative former Cabinet ministers Lord Lansley and Lord Young of Cookham.

Lord Lansley said while he loved Mr Gove “dearly” he was “trying to run with the hare and hunt with the hounds” in watering down local housing targets.

Critics argue it makes impossible the Conservative manifesto commitment to build 300,000 homes a year by the mid-2020s.

Lord Lansley said: “If the Government has a target it needs to have a mechanism for delivering it.

“Unfortunately, I think in particular the Secretary of State, I love him dearly, but he is trying to run with the hare and hunt with the hounds.”

He added: “The salience of housing as an issue is not rising because we are building too many houses, it is rising because we are building too few.”

Lord Young said: “You cannot rely on the goodwill of local government to provide the homes that the country needs.”

He added: “Yes, there is a risk of losing a few votes from those who don’t wish to see development in their area.

“But there’s a much greater risk of losing far more votes in a general election if we are seen to be a party that is insensitive to the needs of those who need a decent home against a background of lengthening waiting lists, more use of temporary accommodation, rising rents in the private sector and home ownership becoming more difficult.”

Lord Young went on: “Far from this amendment being contrary to Government policy, it is actually essential if the Government is to meet its manifesto commitment of building 300,000 homes a year.”

Housing campaigner and independent crossbencher Lord Best said: “This country needs to build at least 300,000 homes each year to ease the problems caused by acute housing shortages … and this national target will not be achieved by leaving the supply of sufficient homes to individual councils to determine.”

He added: “The structure of democracy at the local level makes it nigh impossible for representatives of local communities to act in the wider interests of those who do not live there.”

Labour frontbencher Baroness Taylor of Stevenage said: “Addressing the housing shortage offers immense economic opportunities of the country.

“Expanding housing supply could provide a platform for sustained growth that balances the economy and spreads prosperity widely.

“Equally importantly, it could restore faith in the aspiration of home ownership.”

But Liberal Democrat Baroness Pinnock said: “Targets do not build homes. Targets do not build the homes that people need.

“Targets tend to give power to developers who build homes that people want, which is why we are so short of affordable housing, why we are so short of housing for social rent.

“The top-down target is not the answer.

“Communities and councillors do not like being told exactly how many homes they have to build.”

She added: “We agree more houses are needed … where there is not agreement is about how you achieve it.”

Communities minister Baroness Scott of Bybrook argued the legislative change proposed by her party colleagues was “unworkable” and argued mandatory targets “would do significant harm to some of our most important protected areas”.

She added: “It’s also right that communities should be able to respond to local circumstances.”

Earlier, peers inflicted a defeat on the Government in demanding, by 173 votes to 156, majority 17, that councils’ local development blueprints provide for enough social-rent housing to eliminate homelessness in the area.