Hitting a million

Originally published on May 26 on Inside Edge 2, my blog for Inside Housing

Statistics published on Thursday provide the first clues as to whether the government will be able to deliver a million new homes in this parliament.

Transformed from an ‘aspiration’ into a ‘commitment’ in the Queen’s Speech, the million homes target will be a stretch but not quite as big a leap as it seems at first glance.

The DCLG housebuilding figures show homes built between January and March 2016 and therefore cover year one of this five-year parliament.

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Stable door

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

Back in 2010 a Conservative housing minister mused that a period of stable house prices would be a good thing. Six years later – and in the context of the European referendum – it would apparently be a disaster.

A report today from the Treasury warns that prices could be 10%-18% lower by 2018 if we vote for Brexit next month. It’s part of a message that a leave vote would trigger what David Cameron calls a DIY recession that would cost hundreds of thousands of jobs.

I’ll leave the wider economic arguments to others (though note this would be quite a mild recession by comparison with the recent past) and concentrate here on house prices. This may seem a minor point by comparison with the more general impact on the economy but it’s interesting that this was the aspect of today’s Treasury analysis that George Osborne chose to trail last week.

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The Housing Bill: Last word

Originally posted on May 11 on Inside Edge 2, my blog for Inside Housing

The end of resistance to the Housing and Planning Bill leaves one big question hanging: why was the government so completely determined to undo an amendment that delivered its manifesto commitment on higher-value sales?

On the face of it, the amendment by Lord Kerslake that ping-ponged back between the Commons and the Lords should not have been such an issue. It would have put on the face of the bill the funding of replacements for ‘higher-value’ homes where local authorities sign an agreement with the Department for Communities and Local Government (DCLG). It also gave them the chance to make the case for social rented replacements, though the DCLG would not be required to accept this.

But ministers treated this as a wrecking amendment and claimed financial privilege on the grounds that it would fatally undermine their plans to pay for Right to Buy discounts for housing association tenants. Their determination was reflected in a piece in Wednesday’s Sun that included a threat to make the Commons sit all night and a personal attack on Lord Kerslake by Brandon Lewis.

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Questions of power

Originally posted on May 9 on Inside Edge 2, my blog for Inside Housing

The May elections have a common theme when it comes to housing: can the winners really do what they say?

From Sadiq Khan to Marvin Rees, from Nicola Sturgeon to Carwyn Jones and from council leaders all over England to the voters of St Ives, winning the elections last week was the easy bit. The hard work starts now.

I’ll start with the poll closest to me: the referendum in St Ives on a Neighbourhood Plan that will ban the building of new second homes that has brought national attention.

More than 80% of residents supported the plan last Thursday and it’s impossible not to sympathise. Around a quarter of the homes in St Ives are either second homes or holiday lets and the problem is even worse in other Cornish communities. That does not just price out locals it also means a lack of year-round residents that makes it hard to sustain vital services and infrastructure.

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The Housing Bill: Price to pay

Originally published on May 5 on Inside Edge 2, my blog for Inside Housing

On Tuesday Brandon Lewis told the press that there would be no further concessions on the Housing Bill. A little over 24 hours later there were…further concessions.

On a day of five more defeats in the House of Lords, which will now ping pong back to the Commons, the biggest surprise for me was the last-minute changes to Pay to Stay announced by communities minister Baroness Williams.

The House of Commons overturned three previous Lords defeats on the controversial policy on Tuesday. To recap, the Lords had increased the thresholds to £40,000 and £50,000 in London, called for the thresholds to be increased in line with inflation every three years and reduced the taper rate from 20p to 10p. On all three the government claimed ‘financial privilege’, a strong message to the Lords to back off.

The stage was set for a new battle on Wednesday over slightly watered down Lords amendments but (probably fearing defeat) the minister announced a compromise – a taper rate of 15p and annual uprating of the thresholds in line with CPI inflation – that was accepted by peers.

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The Housing Bill: Mind the gap

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

What is the difference between ‘high’ and ‘higher’ value when it comes to the forced sale of council homes?

The two letters were added to the Housing and Planning Bill in a government amendment in the House of Lords last month. The government argued that the switch would help areas facing the highest housing pressure – inner London boroughs plus places like Harrogate, Oxford and Cambridge – that would all have ‘a high proportion of their stock defined as “high value”. The minister, Baroness Williams, said she could ‘confirm absolutely’ that it would not be used to raise more money.

But new analysis by Shelter suggests that the shift in the Bill to a levy on ‘higher value’ sales could mean councils having to sell 23,500 homes a year, six times more than under the previous ‘high value’ thresholds.

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