A look ahead to the manifestos

Originally posted on May 11 on my blog for Inside Housing.

As we await the manifestos, what are the chances of real change in housing over the next five years?

Give or take the odd leak, there are some positive signs. First, this election has one of the two major parties pinning its election hopes on housing reform and members of the other saying that ‘building more homes‘ is a bigger priority than it has been for years.

Second, a clutch of select committee reports, which were published just before parliament shut down for the election, set down some useful all-party markers for future policy.

Third, in Gavin Barwell and John Healey the two main parties have their best housing spokespeople in years. That may be damning them with faint praise but both seem to be politicians who get the case for housing.

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Holding the government to account

Originally published on April 28 on my blog for Inside Housing. 

The housing crisis could persist ‘for decades to come’ unless the government shows more urgency and ambition on supply.

That’s the verdict* from an all-party committee of MPs on Friday in one of a series of reports due to be rushed out in the next few days as Westminster clears the decks for the election.

The Public Accounts Committee says:

‘
We are highly concerned by this lack of urgency and ambition, most of all in view of the rising costs, both human and financial, of homelessness. Not only does becoming homeless people represent a terrible blight on people’s lives, it also places additional strain on public spending: councils’ spending on temporary accommodation amounted to £840 million in 2015–16, a real-terms rise of nearly half (46%) in just five years.’

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The problem(s) with leasehold

Originally published on April 13 on  my blog for Inside Housing.

Question: When is a home owner not really a home owner? Answer: When they are a leaseholder.

Leaseholders have the responsibilities of being an owner without having all of the rights. They own the bricks and mortar* of the homes they are living in – but only for the length of their lease – and they do not own the land it is built on.

They pay a mortgage but they also pay ground rent to the freeholder and a service charge for maintenance carried out by companies over whom they may have no control. They may see themselves as owners but in the eyes of the law they are tenants.

The issue has come to a head recently with the scandal of developers selling leasehold new houses and then selling on the freehold for a profit. Unwitting buyers have found themselves facing bills for ground rent that double every 10 years and an escalating bill for buying the freehold.

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The problem with the Bank of Mum and Dad

Originally published on March 27 on my blog for Inside Housing.

‘The Bank of Mum and Dad’ is one of those phrases that sound benign until you ask yourself what it really means.

What, after all, could be more natural than parents helping their children to buy a first home? And what could be wrong with mum and dad dipping into their pockets, or extending their mortgage, to get their son or daughter on to the housing ladder?

If we were just talking about some people being able to buy at a younger age than others, maybe not too much. But two reports out today show that the Bank of Mum and Dad is symptomatic of a much bigger problem in the housing system that is anything but benign.

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Five things we learned from the English Housing Survey

Originally published on March 2 on my blog for Inside Housing.

So what have we learned from the new English Housing Survey? The largest annual survey of households and housing conditions is just out for 2015/16 and here’s what caught my eye.

1) ‘The fall in owner-occupation has abated’

The official story is one of relatively little change this year: the number of owner-occupiers seems to have stabilised at 14.3m and there were still 3.9m social renters. The survey says that ‘the rate of owner occupation has not changed since 2013-14, indicating that the fall in owner occupation has abated’. Here’s the graph summing up the trend:

However, that’s not the full story. First, a note of caution: the 2013/14 survey had sampling issues that probably exaggerated the fall in home ownership and rise in private renting in that year. As a result last year’s survey showed a surprise fall in private renting and slight rise in owner-occupation that was hailed as a turning point by the government. Private renting resumed its rise in 2015/16, with the number of private renters up 250,000 at 4.5m.

2) But mortgaged ownership falls below 30%

The picture changes again if you look at the proportion of households in each tenure rather than the number. The survey shows that the owner-occupation rate fell to 62.9%, the lowest it’s been since 1985, while private renting rose from 19.0% to 19.9% and social renting fell slightly to 17.2%. Decline abated? Not so much.

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10 things about 2016: part one

Originally published on December 23 on my blog for Inside Housing

It was a year that fell neatly into two halves: before and after everything was turned upside down. The vote for Brexit on 23 June transformed politics, and the complete change of government and ministers has shifted priorities that had seemed set in stone until 2020.

But as some things change, others remain very much the same. Here’s the first of my two-part look back on the things I was blogging about in 2016.

1. Ambitions for new homes

The year began with what David Cameron hailed as a “radical new policy shift for housing”. The prime minister said that “for the first time in more than three decades” the government would directly commission homes itself on public land, giving priority to small builders. It was a welcome move but it was hard not to think of previous housing strategies that turned out not to be as “radical and unashamedly ambitious” as he claimed.

Cameron’s commitment to a million new homes by 2020 – or 200,000 a year for five years – seemed to be exactly that when the government’s own housebuilding figures showed completions running at around 140,000 a year. However, in May I questioned whether the target was really as ambitious as it seemed. It was already becoming clear that ministers were using higher figures for the net additional supply of homes as their yardstick. The total for 2015/16, the first of the five years, was just 10,000 short of the 200,000 a year benchmark.

An influential House of Lords committee gave short shrift to a claim by Brandon Lewis that the housing plans were “very ambitious”. It called instead for 300,000 new homes a year, backed by a series of radical changes to policy on investment, planning and tax.

2016 ends with Lewis in a different job, Cameron out of a job and the promise of yet another housing plan. The White Paper will no doubt be equally as ‘ambitious’ when it is finally published but the signs are that this one will have fewer adjectives and more substance.

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Beyond the fringe

Originally posted on October 11 on my blog for Inside Housing

Gavin Barwell has apparently spent the last two weeks telling old people who should inherit their property wealth and young people they should live in rabbit hutches.

The comments prompted outrage online and in the comment pages of the newspapers and the ones about inheritance saw him ‘slapped down’ by Downing Street. These were ‘personal comments’ and ‘certainly not policy’, said No 10.

But what did the housing minister actually say?

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