Peer review – part 2

Originally posted on January 27 on Inside Edge 2, my blog for Inside Housing

Part 1 of this blog covered the opening skirmishes in the Lords on the Housing Bill. This second part covers all-party criticism of the detail of the Bill where the sums don’t add up or don’t exist yet. What are the prospects for changes?

Starter homes. Peers criticised both their affordability and the fact that the discount disappears into the back pocket of the first buyer. As Labour’s Baroness Andrews put it:

‘We know from all the evidence that starter homes are not even affordable for most low and middle-income families, whether in rural areas or central London. However, it is not even a fair policy for future buyers. The 20% discount will apply only to the first tranche of buyers; they will be free to sell their assets after five years at market value. We will be minting a new generation of property speculators.’

Tory peer Viscount Eccles said the scheme had ‘not been thoroughly thought through’ and called for much more detail.

Read the rest of this entry »


The Housing Bill: From bad to worse


Originally posted on January 13 on Inside Edge 2, my blog for Inside Housing 

If it is an achievement to pilot a Bill through the House of Commons and end up with legislation that is worse than what you started with, then congratulations Brandon Lewis and Greg Clark.

Back in October I blogged that the Housing and Planning Bill is written on the back of a fag packetOn Tuesday it completed its report stage and got a third reading with additions and amendments scribbled all over the front as well. It was hard to disagree with the verdict of shadow housing minister John Healey in his closing speech: ‘Usually, we hope to improve a Bill as it goes through the House. This was a bad Bill; it is now a very bad Bill.’

Healey cited late amendments to change the definition of ‘affordable’ to include starter homes costing up to £450,000 (‘the Government are not building enough affordable homes, so they are simply branding more homes as affordable’) and to force councils to offer fixed-term tenancies (‘meaning the end of long-term rented housing, the end of a stable home for many children as they go through school, and the end of security for pensioners who move into bungalows or sheltered flats later in life’).

It was hard to disagree either with his view that ‘the Bill sounds the death knell for social housing’. That much will be obvious to anyone working in housing or who has followed the progress of the Bill. The tab for the Conservative manifesto pledges of extending the right to buy and building 200,000 starter homes is effectively being picked up by councils that still own their homes, tenants and people who will not get the chance of a social tenancy in future.

The Bill accelerates the slow death of social housing through a combination of deliberate culling (forced sales, Pay to Stay and fixed term tenancies for council housing), euthanasia (voluntary right to buy for housing associations plus conversions) and redefining the conditions for life (‘affordable’ will now not just mean starter homes but anything the secretary of state says). It is also now official that a private rented home does not have to be fit for human habitation.

Read the rest of this entry »


10 things about 2015: part 2

Originally published on Inside Edge 2, my blog for Inside Housing

My look back at the year in housing on my blog concludes with five more big issues including the future of social landlords, welfare reform and poverty. For Part 1 go here.

6) Wrong or right to buy

Nothing sums up how just much turned on the election result as what happened with the Right to Buy. In February I blogged about the clarification that meant even fewer homes sold under the existing policy were being replaced than previously thought. April brought a buccaneering Tory pledge to extend it to housing association tenants and fund it by forcing councils the sell their ‘expensive’ stock. It was hard to see how it could possibly stack up except as a political gimmick but that was pretty much the point. It was an eye-catching election promise by a party desperate for victory and it seemed designed as a manifesto commitment that could be traded away in coalition negotiations.

Except that it worked. The Tories were unexpectedly elected with an overall majority and the mash-up of think tank proposals written on the back of an envelope somehow had to be implemented. The results would be disastrous for local authorities and the government faced a long battle in the House of Lords. And then everything changed all over again as the most vociferous opponents of the policy decided to accept it voluntarily.

Read the rest of this entry »


Voluntary service

Originally posted on December 15 on Inside Edge 2, my blog for Inside Housing

Tuesday morning’s announcement by Brandon Lewis on deregulation of housing associations delivers on the government’s side of The Deal and its pledge to get them reclassified as soon as possible,

However, it also completes the division of what we used to call the housing ‘sector’ into two very different camps: councils forced to do what the government says; and associations giving a new meaning to the ‘voluntary’ sector.

The housing minister told the Communities and Local Government Committee that amendments will be laid to the Housing and Planning Bill aimed at enabling the ONS to re-reclassify housing associations as private sector while maintaining proportionate protection for lenders and tenants.

The biggest move was to make Pay to Stay voluntary for housing associations, which is quite a climbdown. However, the amendments will also include removal of the consents and disposals regimes so that associations no longer have to seek permission of the regulator and the abolition of the disposals proceeds fund so that they no longer have to spend receipts from the right to buy according to criteria set by the regulator. More detail is here.

Read the rest of this entry »


Good cop, bad cop and mad cop

Originally posted on November 13 on Inside Edge 2, my blog for Inside Housing

Inside Housing: ‘Clark promises deregulation package’. FT: ‘Osborne eyes social housing stake sale.’ Daily Mail: ‘Duncan Smith’s great council house giveaway.’

Three rival visions for housing in England from three rival politicians who all think they know best.

Let’s assume some of this is the result of private disputes about budgets (especially between Osborne and IDS) playing out in public. The run-up to any spending review features media briefings designed to promote pet projects or scupper those of others. But this is still different: it’s not pet projects at stake here but potentially the entire future of housing. And the rival visions directly contradict each other.

Read the rest of this entry »


Right to buy watch

Originally posted on November 4 on Inside Edge 2, my blog for Inside Housing

Here are eight key themes that emerged in evidence from housing association executives to the parliamentary inquiry into the extension of the right to buy.

I wasn’t planning to but I got sucked in to watching the Communities and Local Government committee hearing on housing associations and the right to buy on Wednesday. Across two sessions with witnesses from eight different associations, here’s what I learned:

1) This is not just about the right to buy

The inquiry is meant to be focussed on the right to buy but questions ranged far and wide as MPs asked about the 1% rent cut, Pay to Stay, starter homes, shared ownership, redundancies, reclassification, mergers, you name it. As an indication of the pace of change, they were even questioned about a policy that has not even been announced yet but everyone assumes will be soon (the end of lifetime tenancies).

Read the rest of this entry »


Noises off

Originally posted on November 3 on Inside Edge 2, my blog for Inside Housing

As MPs debated the Housing and Planning Bill on Monday it was hard to escape the impression that the real action was elsewhere.

From the extension of the right to buy to the forced sale of council houses to starter homes, key discussions had either already happened or were still taking place outside the Commons chamber. Yes, talks behind the scenes are an inevitable part of any Bill, but far more so with this one than any other that I can remember. Yes, the Deal removes what would have been a key element in the legislation from parliamentary scrutiny but this is about more than just that.

That’s partly because this is a back of a fag packet Bill that sets out some general principles with the detail to be filled in later. We still  know little more about how the sums will add up for paying housing association discounts from forced council sales than during the election campaign. And, as Alex Marsh points out in relation to Pay to Stay, there are whole chunks of the Bill that give the secretary of state the power to do pretty much whatever they like.

Read the rest of this entry »


Follow

Get every new post delivered to your Inbox.

Join 260 other followers