Scotland shows the way on affordable housing

First posted as a blog for Inside Housing on February 27. 

News that Scotland is on track to deliver its ambitious plans for affordable homes is great news in itself but it also shows those further south what can be achieved when a government and the housing sector are determined enough.

The Scottish Government has promised 50,000 affordable homes, of which 35,000 will be for social rent, between April 2016 and March 2021. This is the largest programme of its kind since the 1970s.

And an independent analysis of local authorities’ Strategic Housing Investment Plans (SHIPs) published on Monday find that Scotland should deliver between 45,000 and 50,000 affordable homes and up to 34,850 for social rent.

That’s impressive enough but even more so when you consider it in the context of what’s happening (or not) further south.

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The real Budget agenda is clear

Philip Hammond’s Budget contains some big numbers and ambitious promises on housing but you don’t have to delve very far to find the real priorities.

Contrast, for example, what’s happening with housing, tax and welfare, two different measures that were heavily predicted and one that was desperately needed.

Stamp duty is being cut, but the chancellor has gone further than the expected holiday by abolishing it completely for first-time buyers of homes worth up to £300,000 or the first £300,000 of homes worth up to £500,000. The cut applies from now and will cost £3bn by the end of 2022/23.

Problems with universal credit are being addressed with measures including the scrapping of the seven-day waiting period, making advances easier to get and allowing continued payment of housing benefit for two weeks after a universal credit claim. The total cost is £1.5bn by 2022/23 and there is another delay to the rollout.

The universal credit changes are welcome but will still leave claimants potentially facing destitution and people in work thousands of pounds a year worse off than they would have been under the previous system.

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A look ahead to the Budget part two: investment

Originally published as a column for Inside Housing on November 15.

In normal times, a chancellor who pledged an extra £2bn for social housing and an extra £10bn for home ownership might to be greeted with general acclaim.

But these are not normal times and the pressure to do something big and bold on housing was such that what might have been two key Budget commitments (plus the new rent formula as a third) were announced last month at the party conference.

And, far from being applauded, the government came under fire for doing too little, too late on social housing and for pouring petrol on the flames of house price inflation via Help to Buy.

Philip Hammond was not helped by a curious Conservative briefing to journalists that the £2bn would only be enough for 25,000 homes but even Tory newspapers were checking housebuilder share prices on the day after the budget for Help to Buy was doubled.

This second part of my blog previewing a watershed Budget for housing looks at the prospects for further moves on investment on November 22. Part three (coming soon) will look at tax and welfare.

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The Conservative manifesto plan for council housing

The Tory ‘council house revolution’ trailed in all today’s papers begs all sorts of questions that I’ll be blogging about soon (now up here).

In TV interviews today we’ve learned that there is no new money, just the £1.4bn for affordable housing promised in the 2016 Autumn Statement.

Conservative spokespeople refused to say how many homes were involved but the Autumn Statement said 40,000.

If that is welcome news it hardly qualifies as a ‘revolution’. However, the policy includes other details that could prove to be more significant in the longer term.

Given that all today’s reports are based on a Conservative Party press release that I can’t find anywhere online, here it is:

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Has the White Paper fixed it?

Originally published on February 7 on my blog for Inside Housing. 

As the advance press coverage showed, this is a White Paper with few big ideas but maybe that is no bad thing when you consider the ones that emerged the last time the government presented us with a range of ‘bold’ and ‘radical’ reforms.

The extension of the Right to Buy to housing association tenants, forced sales of higher-value council homes and Starter Homes have cast such a dark shadow over affordable housing for the past two years that they make a bit of timidity seem almost welcome.

I’ll come back to the White Paper as a whole another time. You can argue it’s a flimsy response to the housing crisis and there are sections that make you wonder if they’ve been watered down, but it does make a series of subtle changes with the potential at least to change the balance of power in housebuilding.

And there are two new ideas that are definitely worth welcoming: publication of information on land ownership and options over land, and allowing local authorities to participate in German-style land pooling for new development.

For now, though, I want to concentrate on the affordable housing side of the equation and what happened to those three big ideas that have dominated so much of the debate (and my blogs) since 2015.

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Originally published on November 23 on my blog for Inside Housing

Wednesday’s Autumn Statement by Philip Hammond is good news for housing on several different fronts.

First, at long last housing is being recognised as infrastructure. That’s important enough in itself but Mr Hammond went even further by pitching housing as part of the solution to the key economic problem of productivity.

Along with transport, digital communications and research and development, housing will be part of the chancellor’s £23bn National Productivity Investment Fund. In financial terms, accelerated construction, affordable housing and the new Housing Infrastructure Fund represent a third of the total cost.

Mr Hammond also named “the housing challenge” alongside the productivity gap and the imbalance in prosperity across the country as one of the economy’s long-term weaknesses.

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Working for everyone

Originally posted on October 6 on Inside Edge 2, my blog for Inside Housing

What would ‘housing that works for everyone’ look like?

Housing was a constant theme running through the Conservative conference this week. Communities secretary Sajid Javid said it was his ‘number one priority’ and announced a new(ish) £2bn fund for accelerated construction on public land plus ‘further significant measures’ in a white paper in the Autumn.

Housing minister Gavin Barwell is said to have addressed 17 different fringe meetings on housing and continued his charm offensive with more sensible comments about the need to encourage all tenures and tone down the obsession with home ownership and starter homes.

And Theresa May herself singled out housing as one example of market failure that requires government intervention to create ‘a country that works for everyone’ and an economy where ‘everyone plays by the same rules’:

‘That’s why where markets are dysfunctional, we should be prepared to intervene. Where companies are exploiting the failures of the market in which they operate, where consumer choice is inhibited by deliberately complex pricing structures, we must set the market right.’

‘It’s just not right, for example, that half of people living in rural areas, and so many small businesses, can’t get a decent broadband connection.

‘It’s just not right that two thirds of energy customers are stuck on the most expensive tariffs.

‘And it’s just not right that the housing market continues to fail working people either.’

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