Housing in the Labour manifesto

Originally posted on May 16 on my blog for Inside Housing. 

Anyone caught up in the narrative about Labour’s radical manifesto will be left disappointed and a little bit puzzled by the party’s proposals on housing.

They will not be surprised given last week’s leak of the draft but they will find a sensible and pragmatic set of policies that move closer to what is desperately needed to tackle the housing crisis and are actually open to criticism for being too timid.

To give one example, the 2017 manifesto is routinely compared in the media to 1983’s ‘longest suicide note in history’.

But where Michael Foot’s Labour proposed a publicly-owned housebuilder and nationalisation of key parts of the building materials industry, Jeremy Corbyn’s party wants to extend Help to Buy for another seven years.

The equity loan part of the scheme is currently due to end in 2020 but Labour would guarantee funding until 2027 ‘to give long-term certainty to both first-time buyers and the housebuilding industry’.

That goes well beyond necessary action to avoid a cliff edge and abrupt fall in output after 2020.

It should be cause for celebration in the boardrooms of the big housebuilders because Help to Buy would continue to underpin their completions, profit margins, dividends and share options.

Or at least it might be if housebuilder executives were not also going to be hit personally by tax increases on higher earners and corporately by an excessive pay levy on employees paid over £500,000 a year.

But it’s still a surprising move from Labour. As Theresa May found out yesterday, Help to Buy is by no means universally popular and critics argue that too many of the benefits go to the big firms, their shareholders and people who can afford to buy anyway.

Whether you agree or disagree with it, extending Help to Buy until 2027 is evidence that on housing Labour’s approach would be pragmatic rather than ideological.

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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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Marks out of 10 for the housing white paper

Originally published on February 10 on my blog for Inside Housing.

So have Gavin Barwell and Sajid Javid finally grapsed the nettle on the housing crisis?

Critics lined up to call the white paper a damp squib, a white flag and (my personal favourite) like a wet Tuesday in Bognor. Some had even read it first.

Supporters called it a pragmatic shift away from policy under David Cameron and ‘a blueprint for change’. And there was the inevitable ‘cautious welcome’ from housing organisations.

In some ways, the responses of two of the architects of previous Conservative housing policies were the most interesting ones. Former housing minister Grant Shapps said previous plans had not made much difference and this one probably wouldn’t either. Former No 10 adviser Alex Morton revealed the cynical political calculation at the heart of previous policy when he warned that ‘if you get dragged into an argument about renting versus owning, it will quickly become about the need for more council homes’.

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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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An unambitious ambition

Originally posted on January 19 on my blog for Inside Housing.

A new overview of housing in England from the National Audit Office (NAO) provides some revealing insights on the state of the nation ahead of the Housing White Paper. Here are some highlights.

Moving the goalposts

The NAO estimates that 174,000 net additional homes a year are needed to meet the government’s target of a million new homes by 2020.

That’s fewer than the 190,000 delivered in 2015/16, the first of the five years covered by the target.

Confused? How on earth can the government meet such an ambitious target by building fewer homes? The answer is that it has moved the goalposts twice.

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12 tests for the Housing White Paper

This is an updated version of a post originally published on January 12 on my blog for Inside Housing. 

The moment is finally here but will radical plans to boost housing supply live up to their advance billing? Here are my tests.

  1. How half-baked is it?

In one very important way, ministers have already passed my first test. Publication of a White Paper seems to mark a return to an earlier era of government when policies went through consultation and scrutiny before they were enacted.

Contrast that with the way that half-baked ideas from thinktanks were turned into equally half-baked legislation in the back of a fag packet Housing and Planning Act.

Speaking of which, how much will we hear about the loose ends that still need tying up from the act? Pay to Stay may be dead in its compulsory form, and the extension of the Right to Buy delayed by another pilot, but we still don’t know what’s happening with forced sales of higher-value council houses or to the receipts they raise.

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