Falling and failing

Originally published on September 27 on Inside Edge 2, my blog for Inside Housing

Cuts in housing benefit are being blamed for a slump in the UK’s position in a European index of housing exclusion.

The UK was the biggest faller (down eight places) in the 2016 index and now ranks 20th out of 28 members of the European Union. The only countries doing worse than us are three in Southern Europe that were worst hit by the Eurozone crisis (Greece, Italy and Portugal) and five in Eastern Europe (Hungary, Bulgaria, Lithuania, Romania and Slovakia).

That puts us behind not just Scandinavian countries with more generous welfare states but also the rest of Western Europe and even Eastern European nations like Croatia, Slovenia, the Czech Republic and Poland. The UK has the second biggest economy in the EU behind Germany.

Read the rest of this entry »


Skills and homes

Originally published on September 23 on Inside Edge 2, my blog for Inside Housing

If ‘Brexit means Brexit’ should it also mean a new programme of investment in social housing?

After a referendum that saw 63% of social tenants vote to leave the European Union, the attractions should be obvious. For ‘left behind’ voters it could mean both homes and jobs. For the government, now apparently edging away from an obsession with home ownership, it could offer a big pay-off from Philip Hammond’s ‘fiscal re-set’. For the purposes of this blog I’ll ignore all the other arguments in favour.

But it could also play into the wider politics of Brexit. Theresa May’s soundbite has yet to be translated into anything substantial but seems to be heading towards a ‘Hard Brexit’ outside the single market on the grounds that the referendum was a vote for controls on immigration.

That has huge implications for the housebuilding sector and the wider construction industry. Berkeley Homes boss Rob Perrins even claimed last weekend that a block on EU immigration could cut new homes by half. That is an exaggeration that could say more about his own workforce in London than the industry as a whole but this is still a huge issue. An alliance of construction organisations warned Brexit secretary David Davis earlier this month of a skills crisis if he does not make it a priority in the negotiations to come.

Read the rest of this entry »


Support and protect

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

There is good news, bad news and some continuing uncertainty in today’s long-awaited government announcement on the future funding of supported housing.

Originally expected before the summer recess, it finally came in a written statement from work and pensions secretary Damian Green. This follows the deferral of implementation of the LHA cap and 1% rent cut on the sector to allow more research and consultation.

Read the rest of this entry »


What next?

Originally published on September 13 on Inside Edge 2, my blog for Inside Housing

As Theresa May’s government busies itself trashing the legacy of David Whatsisname and George Wotsit, what about housing?

The new government’s pick-and-mix approach to the pre-referendum commitments now includes the budget surplus target, a sudden switch to grammar schools, a delay on Hinkley Point and a downgrading of the Northern Powerhouse.

But housing is still stuck in the tray marked pending. The soundbite of ‘a country that works for everyone’ could signal a change of direction but equally well it might just mean one that works for everyone providing they are home owners.

So comments by Gavin Barwell in his first major speech as housing minister yesterday make for interesting reading. Speaking at RESI in Newport (curiously a conference held in Wales that is all about England) he said:

‘The way you make housing in this country more affordable to rent and buy is you build more homes. There is still a role for the government doing specific things to help people on to the first rung but this can’t be at the exclusion of all else.’

Read the rest of this entry »


Cats and cream

Originally published on September 9 on Inside Edge 2, my blog for Inside Housing

It’s Groundhog Day. Inside Housing publishes its housing association chief executive salary survey. People get outraged. Nothing changes.

The average boss in the 177 largest associations saw their total pay rise by 4% in 2015/16. That’s eight times the rate of CPI inflation and double the increase in average weekly earnings. And it also conceals a huge variation: by my reckoning 10 chief executives saw their pay frozen and 21 took a pay cut but 16 had an increase of more than 10%.

The numbers may change (and it’s always worth reading the footnotes for the explanations of the changes in individual salaries) but the arguments are essentially the same every year.

Read the rest of this entry »


Homes and votes

Originally posted on September 5 on Inside Edge 2, my blog for Inside Housing

Could rent to buy be the basis of a housing policy that helps deliver Theresa May’s ‘country that works for everyone’?

That’s the bold claim in a new report from Conservative think tank Renewal that calls for a radical reset of the Tories’ ambitions.

The aim is overtly political. As author David Skelton explains on Conservative Home, it is to broaden the appeal of the Conservatives to working class voters and voters outside of the South East. In a nutshell it is to capture the votes of people on low incomes by offering a housing counterpart to the national living wage.

However, while Homes for All (PDF here) is presented as being in the Tory tradition of Macmillan and Thatcher, it is also an admission that current Conservative plans do not work ‘for everyone’. Starter homes and shared ownership, the big winners from the spending review and Housing and Planning Act, are unaffordable for people on low incomes in most of the country.

Read the rest of this entry »


Back to work

Government resumes this week after a summer in limbo following the Brexit vote and change of prime minister. The unanswered questions for housing are stacking up.

The Cabinet met to discuss Brexit and parliament returns on Monday for two weeks before MPs take another break for the party conferences.

And the next few months should bring answers to some of the questions that have been hanging over housing ever since the referendum result and change of government.

What part will housing investment play in the fiscal ‘reset’ expected in the Autumn Statement? Will the new government offer any flexibility in the spending review settlement?

Is Theresa May’s vision of ‘a country that works for everyone’ and ‘giving people more opportunity’ just rhetoric or does she want a housing system that works for everyone too?

Will Sajid Javid and Gavin Barwell offer a change of approach at the DCLG? Will they be any less obsessed with home ownership? Or any less willing to devolve funding and decision making? Will they give full government backing to the private member’s Homelessness Reduction Bill?

But the more you look beyond the big picture and look at the detail the fuller the ministerial Pending and In trays become.

Read the rest of this entry »