Social housing reforms let down tenants

Originally posted on December 4 on my blog for Inside Housing.

Go back to the days when the government’s confidence in its marketising agenda for social housing was at its greatest and one consistent justification was made by ministers for their policies.

The introduction of affordable rent would mean more new homes for the same money, fixed-term tenancies in the Localism Act would ‘end the lazy consensus’ and free up more lettings for people on the waiting list and Welfare Reform Act measures to remove the spare room subsidy would free up larger properties for overcrowded families.

Figures released last week show the combined impact of the policies and the results are not pretty. Read the rest of this entry »

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Who gets the most subsidy in housing?

Originally posted on November 21 on my blog for Inside Housing. 

A report out this week comes as close as we are probably going to get to answering one of the most vexed questions in housing: who gets the most subsidy?

Feather-bedded home owners sheltered from the tax paid on all other forms of investment? Social housing tenants who don’t know how lucky they are to get a tenancy for life at a subsidised rent? Fat-cat landlords lining their pockets with housing benefit? Housebuiders trousering huge Help to Buy-financed bonuses? The answer has changed over time.

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DWP denies it’s in denial on poverty

Originally posted on November 19 on my blog for Inside Housing.

With unintended irony the government has responded to a United Nations report accusing it of being ‘in denial’ about extreme poverty by denying that there is a problem.

The last time a UN official visited Britain and had the temerity to criticise government policy it sparked a furious row on the Today programme.

Ministers dismissed Raquel Rolnik, the special rapporteur on the right to adequate housing, as ‘the woman from Brazil’ and ‘an absolute disgrace’ ad accused her of producing ‘a misleading Marxist diatribe’.

This time around there was no real row about ‘the man from Australia’, no formal complaint to the UN secretary-general and the Today programme ignored Professor Philip Alston, special rapporteur on extreme poverty and human rights.

Whether that reflects changed editorial priorities at the BBC, a ministerial determination not to rise to the bait or simply the way that Brexit sucks away all the oxygen from other news remains to be seen.

However, Professor Alston’s report published in London on Friday is if anything even more damning that the one produced by Ms Rolnik.

Read the rest of this entry »


The legacy of the 1988 Housing Act 30 years on

This week marks the 30th anniversary of Royal Assent for the Act that set the framework for the housing system as we have known it ever since – but as its influence wanes is it going into reverse?

The 1988 Housing Act led to lasting change in social and private rented housing. Not everything happened at once – some provisions were amended in later legislation and some took time to have an effect – but this was what set the basic ground rules for what followed.

In the social rented sector, it meant private finance, higher rents, stock transfer and housing associations replacing local authorities as the main providers. In the private rented sector, it meant the end of security of tenure and regulated rents and the arrival of assured shortholds and Section 21.

But it also created a system that was full of contradictions that are now only too clear. The stage was set for the revival of rentier landlordism but also the eventual decline of home ownership, the fall of municipal empires but the rise of mega housing associations and a belief that housing benefit could ‘take the strain’ of higher rents that always seemed unlikely and drained away with austerity.

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What’s in the Budget small print?

Originally published on November 30 on my blog for Inside Housing. 

If you listened to the chancellor’s speech you may have thought this was a Budget that did not mean much for housing. As ever you may think again after reading the small print.

As I live blogged for Inside Housing yesterday, the big news in the speech was the extra money for universal credit that makes up for many of the cuts imposed in universal credit and delays the roll-out yet again and sounds like it will be enough to avoid a backbench Tory rebellion.

Elsewhere, Philip Hammond found £2.8 bn to bring forward cuts in income tax allowances by a year but he failed to find roughly half that to scrap the final year of the freeze in most working age benefits including the local housing allowance.

This was a clear political choice to go for tax cuts that overwhelmingly benefit the better-off over benefits that go to the poorest households.

Ahead of the next spending review, numbers crunched by the Resolution Foundation overnight suggest that the squeeze on everything apart from health will continue well into the 2020s.

However, the most interesting developments for housing came in the background documents published as Mr Hammond sat down.

Read the rest of this entry »


Six things to look out for in the Budget

Originally published on October 26 on my blog for Inside Housing. 

What might have been the Budget’s headline announcements on housing were made by the prime minister last month at the National Housing Summit and Conservative Party conference.

But the chancellor’s big moment will still set the context for the end of the borrowing cap for council housing from next week that ‘extra’ £2 bn for housing associations in the 2020s.

And it will also reveal the total spending envelope for the 2019 Spending Review, teeing up a race to calculate whether austerity really is as ‘over’ as Theresa May promised.

With Brexit and the NHS to pay for and crises in local government and social care as well as in housing that could be a tall order.

In the meantime, here are six areas to look out for on Monday.

  • The borrowing cap

When the prime minister made her surprise announcement, the concern was that it would come with strings attached when the detail was revealed in the Budget.

That could still happen but one big fear – a long delay before implementation – has already been allayed by last week’s announcement by housing secretary James Brokenshire that the cap will be lifted from Tuesday.

However, the impact of the rent cut, the Right to Buy and welfare reform still loom large and are seen as more important than the borrowing cap by some councils.

And the suspicion remains that the Treasury is not exactly enthusiastic about a move that will increase public borrowing under current rules.

In which case, as John Perry argues, why not bring the UK into line with other countries and give council housing the same financial independence as housing associations?

And why not, as the Local Government Association (LGA) argues in its Budget submission, allow councils to reinvest 100% of Right to Buy receipts and decide discounts locally?

To signal their intent, more than 60 council leaders have signed an open letter pledging an immediate drive to build more homes. Read the rest of this entry »


Squaring the circle of regeneration

Originally posted on my blog for Inside Housing on October 22.

When England’s most high-profile local authority calls the behaviour of the country’s largest housing association ‘morally wrong’ you sit up and take notice.

Clashes between the local priorities of a council and the organisational ones of an association are nothing new of course but this week’s statement by the Royal Borough of Kensington and Chelsea (RBKC) seems different.

Clarion is in its sights over rejected proposals for the regeneration of the Sutton Estate in Chelsea.

Council leader Kim Taylor-Smith told a council meeting last week:

‘HAs in the borough are, in some cases turning away from their core purpose and in some cases becoming all but private developers.

‘You will all know I am talking about Clarion Housing, the owners of my local and cherished Sutton Estate which they wish to knock down the estate with a loss of affordable homes We stand shoulder to shoulder with local residents in opposing this

‘I think we all in the chamber are untied. This is wrong.’

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