The House of Lords has voted in favour of allowing local authorities discretion on whether they include starter homes in developments or other forms of affordable housing.
Peers backed the amendment to the Housing and Planning Bill last night by 272 votes to 212.
The vote during the so-called ping-pong stage of the bill came despite objections from Baroness Williams of Trafford that the amendment would prevent the government from meeting its commitment to build 200,000 starter homes by 2020.
In a further blow, the Lords voted in favour of a separate amendment tabled by Lord Kerslake to ensure local authorities can choose the tenure type when building one-for-one replacements. The vote was passed by a majority of 275 to 219.
The government granted concessions on “pay to stay” plans, which will see council tenants paying higher rents.
They agreed the minimum income threshold at which tenants would have to pay – £31,000 outside London and £40,000 in the capital – would rise in line with CPI inflation each year, with a taper rate of 15% rather than 20%.
The Lords had wanted guarantees that high-value properties sold off by councils to fund the government’s plans to extend Right to Buy to housing association tenants would be replaced by affordable homes in the same area.
However, it was rejected by MPs alongside other proposed amendments in Tuesday night’s vote.
Three further Lords amendments were moved by peers yesterday: to implement neighbourhood rights to appeal where there was an established local plan; to introduce new carbon compliance standards for all new homes; and to create new rules on sustainable drainage systems to help protect residents from flooding.
The bill is currently ping-ponging between the House of Lords and the House of Commons. It will return to the House of Commons on Monday.
• To send feedback e-mail louisa.clarence-smith@estatesgazette.com or tweet @LouisaClarence or @estatesgazette
