More housing questions than answers
Posted: December 11, 2018 Filed under: Grenfell Tower, Land, Leasehold, Zero carbon homes | Tags: James Brokenshire Leave a commentOriginally posted on my blog for Inside Housing on December 11.
As Westminster grinds to a halt over Brexit at least some progress is still being made on housing – or is it?
In the year of the social housing green paper and the end of the borrowing cap, some things have undoubtedly moved but the signs at Housing Communities and Local Government questions on Monday were that others are grinding to a halt.
First up was the land question and specifically the way that MHCLG dashed hopes of radical reform of land value capture in its response to a Housing Communities and Local Government Committee report recommending big changes to a system that sees planning permission for housing increase the value of agricultural land by 100 times.
Where the money really goes in housing
Posted: March 21, 2018 Filed under: Affordable housing, Help to Buy, Home ownership, Housing benefit, Private renting, Social housing | Tags: UK Housing Review Leave a commentThree comparisons leap out from the latest edition of the indispensable UK Housing Review published on Wednesday.
The first two are not new in themselves and the third is only a crude estimate but all three need repeating again and again for a real appreciation of where spending on housing goes and exactly who is subsidising who.
First comes the main one highlighted by the Chartered Institute of Housing (CIH): the shift from bricks and mortar to personal subsidies, or from grants for new homes and repairs to old ones to housing benefit.
This series of pie charts from the Review shows the change over the last 40 years and the total amount of housing subsidies in real terms:
Note first that supply subsidies have sunk to just 4.3 per cent of the total pie – this despite all the cuts in housing benefit seen since 2010 and the fact that the figures to not include continuing tax reliefs for home owners (see below for more on that).
Second, note that this does not save money. Total subsidies are now 48 per cent higher in real terms than at the turn of the century (when admittedly social housing investment was very low) but they are also approaching the levels of 30 years ago (when investment was significantly higher and the unemployment rate was three times what it is now).
Steps in the right direction that don’t go far enough
Posted: March 5, 2018 Filed under: Home ownership, Housebuilding, Planning 1 CommentOriginally published on my blog for Inside Housing on March 5.
Theresa May is a politician with a gift for saying the right things but somehow in the wrong way.
I’m thinking here not just of the obvious examples such as the ‘nothing had changed during the election campaign’ and the collapsing lettering of ‘Building a Britain that Works for Everyone’ during her Conservative conference speech last year. She does it even when she is most in control of what she is saying.
She did it in her first speech as prime minister when she dedicated herself to tackling ‘burning injustices’ but only succeeded in drawing attention to the fact they were the legacy of the previous six years of Conservative rule.
She did it on Friday when her big speech on Brexit rightly pointed out that ‘we can’t have everything’ only to prompt a German journalist to ask ‘is it all worth it?’.
And she did it again in her speech on Monday launching the new version of the National Planning Policy Framework.
Age, class and home ownership
Posted: February 16, 2018 Filed under: Home ownership, Inequality, Mortgages | Tags: IFS, Resolution Foundation Leave a commentOriginally published on my blog for Inside Housing on February 16.
Housing is so often presented as a story of inequality between the generations but what about inequality within generations?
Analysis published on Friday by the Institute for Fiscal Studies confirms the familiar story of the collapse of home ownership among younger people that has been accompanied by a surge in private renting and adults still living with their parents into their late 20s and early 30s.
The IFS briefing concentrates on people aged 25-34, exactly the age group who could once have been expecting to take their first step on to the housing ladder.
The collapse has obviously been biggest in London but home ownership rates have fallen even in the cheapest regions like the North East and Cumbria.
