Exit Rayner, enter Reed

Originally written as a column for Inside Housing.

Angela Rayner is a huge loss for the Labour government and the country but arguably an even bigger loss for housing.

The housing secretary had to go after the standards advisor ruled that she breached the ministerial code by underpaying the stamp duty on her new flat, even if the breach seems inadvertent and minor by comparison with previous tax errors by ministers. 

Keir Starmer has lost someone who, after a difficult start, became a key partner on the left of the Labour Party as deputy leader and deputy prime minister.

Much like John Prescott in the early days of the Tony Blair government, her presence reassured Labour supporters that despite its modernising rhetoric the government had the interests of working people at heart.

Housing has lost a powerful voice at the top of government, someone who was in charge long enough to secure a favourable settlement in the spending review (even if it did not quite live up to her hype).

Would MHCLG have achieved as much without her? Housing might still have been a relative priority but probably not, I’d say.

Supporters of social and council housing – and those who need it – have lost an ally who knew its value from her own experience. 

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The right’s way to more council housing

Originally written as a column for Inside Housing.

England should be building 100,000 new council houses a year, says a new report out this week.

It’s a call that would be routine if it was being made by one of the usual suspects, but this time it comes from, of all places, Policy Exchange.

The right-wing think tank was the incubator for the ideas that dominated the Conservative agenda in the 2010s and its alumni played a key role under successive Tory-led governments. 

Among its greatest hits in the glory days of the coalition were calls for all social homes to be nationalised, with most sold off to tenants and only a rump left for the most vulnerable.

That was followed by proposals to sell off all ‘high-value’ social housing and fully commercialise housing associations.

True, the ideas were usually justified as ways to generate more affordable homes overall but the underlying agenda seemed to be that, far from tackling social exclusion and poverty, social housing was a cause of them

In the wake of the 2024 election, Policy Exchange is playing a less partisan tune and this report comes with endorsements from Labour as well as Conservative politicians.

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Starmer reassures and worries on homelessness

Originally written as a column for Inside Housing.

If you’re looking for a chink of light ahead of the promised government strategy on homelessness, the number of homeless households living in bed and breakfasts (B&Bs) is down for the third quarter in succession.

But it’s only a chink since government figures for the end of March saw the total number of homeless households (131,140) and children (169,050) in temporary accommodation rise to new records

At the most expensive and temporary end of the spectrum, there were 3,870 families with children in B&Bs, down 28 per cent since Labour took power in July 2024. Of those, 2,300 had been there for longer than the six-week legal limit, a decline of 39 per cent. 

However, those falls were more than matched by an increase in the use of nightly paid, privately managed accommodation. This is also expensive and temporary but self-contained so that families do not have to share a bathroom and kitchen. 

This sub-sector took off after 2013 when the coalition government tried in vain to cut use of B&Bs and private landlords and management companies realised they could charge more on a nightly basis than for longer-term leases. 

Over the next seven years, the number of homeless households in nightly paid accommodation doubled and since 2020 it has almost doubled again to 46,710. Since Labour came to power the number of families with children in non-B&B nightly paid accommodation has increased by 27 per cent to 32,160.

Of those, more than half (17,810) had been there for more than a year and 14 per cent (4,640) for more than five years. 

By contrast, there were just under 25,990 households in private sector leased accommodation, roughly the same as in 2013 despite  a doubling in the total numbers in temporary accommodation overall. 

Trends like these highlight what’s at stake in the homelessness strategy both for homeless families stuck in temporary accommodation and for local authorities creaking under the strain of paying for it .

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A year of progress for Labour still leaves major gaps to be filled

Originally written as a column for Inside Housing.

A year into the Labour government how should we assess its record on housing?

It’s not hard to find reasons to celebrate, from the spending review announcement of £39 billion for the Affordable Homes Programme to the creation of a National Housing Bank within Homes England armed with an extra £16 billion in financial transactions capital.

Social rent is the priority after years when it was under threat of extinction and will account for 60 per cent of the renamed Social and Affordable Homes Programme (SAHP).

Social landlords have got what they asked for on rents and the long-term plan for social and affordable housing sets out how they must improve their existing homes, professionalise their staff and give tenants more access to information. 

The prospect of new financial flexibilities for local authorities and restrictions on the Right to Buy offer council housing its best opportunity in years to escape the straitjacket imposed by central government. 

But there are still many gaps to be filled when Labour sets out its wider plans in a long-term housing strategy and publishes its homelessness strategy. 

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Labour’s plan for ‘a decade of renewal’

Originally written as a column for Inside Housing.

The spending review may have given us the headlines but a flurry of announcements on Wednesday fills in much of the detail about what the government is calling ‘a decade of renewal for social and affordable housing’.

On new homes, a key question was how the £39 billion will be spent over the next 10 years and, in particular, what the trade-off will be between maximising total output of affordable homes and giving greater priority to social rent. 

That got an answer in an overnight press release: a renamed Social and Affordable Homes Programme (SAHP) is forecast to deliver 300,000 homes over the ten years (30,000 a year), of which at least 180,000 (18,000 a year or 60 per cent) will be for social rent. 

To put this in perspective, the current AHP was originally meant to produce 180,000 affordable homes over the five years from 2021 to 2026 (36,000 a year) but rising construction costs cut that to between 110,000 and 130,000 (22,000 to 26,000 a year. Of those, just 40,000 (8,000 a year) are forecast to be for social rent.

Importantly, strategic partnerships will be able to bid for funds over the lifetime of the programme, which should give at least some protection from the risk of cuts if a government more hostile to housing wins the next election.

Another trade-off is the split between London, where higher land prices and construction costs mean more grant per home is needed, and the rest of the country. 

Under the current AHP, the Greater London Authority (GLA) got £4.1 billion (36 per cent) and Homes England £7.4 billion (64 per cent) of the grant available. 

Under SAHP, the GLA’s share will be cut to 30 per cent or up to £11.7 billion. It’s hard to reconcile that with the fact that more than half of the 126,000 homeless households stuck in temporary accommodation waiting for a social home are from London. 

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Does the spending review live up to the hype?

Originally written as a column for Inside Housing.

This spending review represents a good start on housing – but it must only be a start. 

Highlights of the package delivered by chancellor Rachael Reeves on Wednesday included £39 billion over 10 years for the Affordable Homes Programme (AHP) and a 10-year rent settlement of CPI plus 1 per cent for social landlords.

Then add a consultation on the return of rent convergence, £1 billon extra for cladding remediation and equal access to government funds, £2.5 billon in low-interest loans plus for social landlords. 

Stir and combine with £950 million for councils to increase the supply of temporary accommodation, £10 billion in financial transactions to boost private investment and more to come for infrastructure and land remediation in Cambridge and the new towns, and this looks like great work by deputy prime minister Angela Rayner and the Ministry for Housing, Communities and Local Government (MHCLG).

But does the spending review really justify the headlines and is it really as ‘transformative’ as some in the sector are making out?

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What’s at stake in the spending review?

Originally written as a column for Inside Housing.

With a week to go until the most consequential spending review for ten years, the Treasury is facing desperate last-ditch lobbying from departments that have yet to agree their settlement.

Last week’s public intervention by chief constables warning that the government will fail to meet its pledges on crime unless they get more cash is sign enough of that.

So too the leaked memo from deputy prime minister Angela Rayner setting out options for higher taxes that was inevitably followed by more leaks about her spending priorities.

As of this week, the Ministry for Housing, Communities and Local Government (MHCLG) was said to be one of the departments yet to agree a settlement, alongside the Home Office, with the Department for Energy Security and Net Zero just finalising one..

By contrast with previous spending reviews, housing starts with the advantage of having a politically powerful secretary of state in charge – and Angela Rayner has repeatedly promised ‘the biggest boost to social and affordable housing in a generation’.

But the ‘biggest boost’ can mean many different things, some of them genuine, some of them not remotely up to the challenge of the moment.

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Smart thinking on homelessness

Originally written as a column for Inside Housing.

Within the next few months the government will set out what it intends to do about homelessness and how it will pay for it.

A new report argues that the prospect of the homelessness strategy and spending review present it with ‘a vital opportunity to shift away from reactive measures towards a more proactive and preventative model’.

A smarter approach to homelessness, published by the Institute for Government and Centre for Homelessness Impact, makes clear that the current system is achieving the exact opposite.  

Rather than providing permanent homes, the system keeps families with young children in temporary accommodation at a cost that can easily be £30,000 a year or more, with social costs even higher than that thanks to the knock-on effects on education and health.

But even as they try to book temporary accommodation, councils can find themselves out-bid by companies acting for other parts of government for accommodation for asylum seekers and prison leavers.

Despite evidence that prevention costs many times less, cash-strapped local authorities are forced to ‘retreat to short-term reactive responses in fulfilment of their immediate legal obligations, despite their often exorbitant cost’, often raiding prevention budgets to pay for it.

Structural barriers, most obviously a lack of social housing, block progress while the system creates ‘perverse incentives’ that ‘actively encourage inefficiencies and poor outcomes’.

As the latest homelessness statistics show, the number of homeless families and children in temporary accommodation was still rising in the fourth quarter of 2024.

The numbers of bed and breakfast did at least show a second consecutive monthly fall, but the numbers in nightly-paid accommodation are still rising along and there are eight times as many out of area placements as when Labour was last in government.

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An unequal struggle for housing

Originally written as a column for Inside Housing.

Housing seems such a natural engine of inequality that it’s easy to forget that the opposite was once true.

For most of the 20th century housing was the force that made society more equal. Council housing and rent control improved standards, made homes more affordable and tackled exploitation of tenants by private landlords. 

Owner-occupation expanded -perhaps 10 per cent of the population owned their own home in 1914 but that proportion expanded to a third by 1939, half by the start of the 1970s and two-thirds by the mid-1980s – while the proportion of homes rented from a private landlords fell from almost 90 per cent in 1918 to less than 10 per cent by the early 1990s. 

And then things went into reverse. A fascinating chapter by Susan Smith in this year’s UK Housing Review explores how this happened and what can be done about it. 

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Short-term fixes and long-term solutions to the temporary accommodation crisis

Originally written as a column for Inside Housing.

If anyone needs any reminding, two new reports reveal the depth and breadth of the crisis in temporary accommodation in England.

On Thursday the all-party Housing, Communities and Local Government (HCLG) Committee published the results of its inquiry into the ‘utterly shameful’ situation in a report that spells out the consequences for 164,000 children’s health, wellbeing, safety and education. 

The report reveals safeguarding risks including families with children ending up in the same temporary accommodation as strangers with a history of domestic violence or recently released prisoners. 

It highlights the huge costs of temporary accommodation (£2.3 billion and rising) and the consequences for local authorities but also raises serious questions about whether the legal framework and code of guidance are fit for purpose. 

And it raises issues ranging from the increasingly theoretical six-week legal limit families with children to be placed in bed and breakfasts(B&Bs) to use of multi-occupancy hostels that have the same shared kitchens and bathrooms but do not count as B&Bs to inadequate procedures for out-of-area placements.

To focus on just one of the knock-on effects, last week the Children’s Commissioner published research revealing a direct link between lack of a permanent home and a child’s performance at school. The more times a child moves home while at school the worse they do in their GCSEs.

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