The winners and losers from the rent cap

Originally published as a column for Inside Housing.

The rent cap proposed for social housing may not have come as a huge surprise but the consequences will play out in very different ways for different parties.

It says it all about the cost of living crisis that whether rents are capped or not could be well down social tenants’ list of worries over the next few months.

The energy price cap has already almost doubled in the last 12 months to £1,971 a year. Next month that will rise to £3,549 and the worst forecasts suggest that could double again by next April unless the new government takes radical action.

Effectively, therefore, tenants in social housing could be paying double rent next year unless they take drastic steps to cut their bills.

But many are already doing this and finding that even turning the boiler off does not go far enough – they may be asking why the consultation does not include an option to freeze rents.

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Johnson’s lame cover version

Originally published as a column for Inside Housing.

How exactly should we take Boris Johnson’s plans to ‘bring back Right to Buy’ and ‘turn Generation Rent into Generation Own’?

Many housing association tenants will welcome the chance to own their own home and private renters may welcome official recognition that they are stuck paying more in rent than for the mortgage they can’t get.

Equally, most social landlords will feel that they have no choice but to take very seriously a major change for housing associations and what could be yet another threat to council housing.

And anyone with even the vaguest interest in seeing more genuinely affordable homes will greet the latest guff about one for one replacements with a groan. 

But it’s also very hard not to be cynical about this latest cover version of Margaret Thatcher’s number one from the 1980s. The suspicion is that this is all about a lame duck prime minister having something catchy to announce regardless of how  – or even if – it will work out in practice.

Even so it’s impossible not to wonder about the practicalities of a plan to finance mortgages from housing benefit in the middle of a cost of living crisis, with interest rates about to rise at the peak of a housing market bubble that could be about to burst.

And it’s hard not to contrast Boris Johnson’s tired old rhetoric about social tenants on housing benefit being ‘dependent on the state’ with the plans announced just 24 hours earlier for a Social Housing Regulation Bill that will ‘mean more people living in decent, well looked-after homes enjoying the quality of life they deserve’.

Calling the plan ‘benefits to bricks’ looks like trolling of those who have genuinely attempted to find ways to shift subsidy to new homes.

And all of these reactions are subject to the politics of a wounded prime minister desperate to send the right signals to his party after 41 per cent of his own MPs said they have no confidence in him.

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An encore all over again for Right to Buy

Originally written as a column for Inside Housing.

It is the idea that is so superficially attractive that Conservatives cannot help forgetting all the other times it proved to be hopelessly impractical.

In a story helpfully briefed to the Telegraph a few days before the local elections, Boris Johnson is planning to ‘bring back Right to Buy’.

The prime minister has reportedly ordered officials to draw up plans to give the Right to Buy to housing association tenants ‘in a major shake-up inspired by Margaret Thatcher’.

Coming just over a week after levelling up secretary Michael Gove appealed to ‘Thatcher worshipping’ Tories to want more homes for social rent, the timing does not look like a total coincidence.

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Mind the gaps on building safety

Originally published as a column for Inside Housing.

Who is guilty, who is innocent and who is merely collateral damage? The answers, when it comes to building safety, are not as simple as it first seems.

Guilt in a legal sense remains to be seen but just about everyone involved in the refurbishment of Grenfell Tower seems to bear some responsibility, starting with the governments that set the building regulations and reaching down via organisations involved in product testing and certification and building control to the companies that supplied the cladding and insulation, the contractor, designers, subcontractors and client. 

All of the above plus developers are seen as ‘guilty’ when it comes to the wider building safety crisis while leaseholders are the innocent parties that the government has finally accepted should be protected from the costs.

And yet scratch a little deeper in the debates over the Building Safety Bill and the new approach initiated by Michael Gove and the dividing line between innocent and guilty is not remotely as clear cut as that.

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Where should we draw the line between the social and the private?

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

The borderline between the social and the private has been blurring for decades for housing associations.

Ever since private finance was introduced in 1988, they have been free (or forced) to match grant with borrowing in the knowledge that higher rents would mostly be covered by housing benefit.

If it’s always been something of a Faustian pact with governments intent on reducing public spending and lenders focussed on the bottom line, there have been undoubted benefits not just in terms of homes delivered in the short term but also surpluses reinvested and major social businesses developed for the long term.

But the question has always been whether and when the housing Dr Faustus would have to deliver on the price of the pact.

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The decade in housing

Originally published in Inside Housing on January 10.

It was a decade of four elections, four prime ministers and three referenda. It began in the midst of a Global Financial Crisis and ended with the political crisis of Brexit. It was scarred by the disaster at Grenfell Tower.

All but 15 of the 520 weeks in the 2010s had a Conservative prime minister but four different governments brought four different approaches. David Cameron was all about cuts in coalition followed by radical (but mostly failed) marketising reforms once he had elbowed Nick Clegg aside. Theresa May brought a profound change in rhetoric and some significant changes of substance. Boris Johnson shifted the emphasis back to home ownership.

Here is the decade summed up in 10 headings: Read the rest of this entry »


The housing trilemma

Originally posted on May 1 on my blog for Inside Housing

The pace of change in housing seems to accelerate every year, especially in the last decade.

There may be better known conferences than the one organised by the Housing Studies Association but there are few if any give you a better opportunity to try to make sense of it all.

Held in Sheffield last month, the theme of this year’s conference was Home Struggles: Politics, Marginality and Resistance in the Contest for Housing. This was a title designed to cover everything from the financialisation and homelessness we are familiar with in Britain to the more informal struggles associated with the Global South.

The conference brings together the growing number of academics working on housing issues from this country and overseas but housing professionals and tenants were there too in the audience and with papers of their own.

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A warning from Berlin

Originally published on my blog for Inside Housing.

The large demonstrations in Berlin on Saturday demanding the expropriation of the property of the city’s two biggest landlords are a warning to their counterparts in this country about what can happen when public and political opinion turns against you.

Yes, there is a particular context for the demos, with communism in East Berlin and an expectation of cheap rents in West Berlin predating the free market pressures of a global capital city.

And yes we are talking about two large private corporate landlords that own more than 100,000 homes each.

But to bring things closer to home, both companies identified in the protestors’ placards – Deutsche Wohnen in particular but also Vonovia – have their roots in social housing and grew out of communal housing associations.

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The implications of the leasehold scandal

Originally published on March 19 as a blog for Inside Housing.

The leasehold scandal will have far-reaching implications for housing that will be felt well beyond the major housebuilders with whom it began.

A report published by the all-party Housing, Communities and Local Government Committee on Tuesday takes as its starting point the doubling ground rents and onerous contract terms faced by buyers of new homes who it says were treated ‘not as homeowners or customers but as a source of steady profit’.

And it also highlights the issue of leaseholders facing huge bills to remove and replace combustible cladding raised in its work on fire safety.

But this report goes well beyond those recent high-profile problems with leasehold and poses some fundamental questions about a tenure that only exists in England and Wales – and they are ones that will require answers by social landlords as well as private sector housebuilders and freeholders.

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The legacy of the 1988 Housing Act 30 years on

This week marks the 30th anniversary of Royal Assent for the Act that set the framework for the housing system as we have known it ever since – but as its influence wanes is it going into reverse?

The 1988 Housing Act led to lasting change in social and private rented housing. Not everything happened at once – some provisions were amended in later legislation and some took time to have an effect – but this was what set the basic ground rules for what followed.

In the social rented sector, it meant private finance, higher rents, stock transfer and housing associations replacing local authorities as the main providers. In the private rented sector, it meant the end of security of tenure and regulated rents and the arrival of assured shortholds and Section 21.

But it also created a system that was full of contradictions that are now only too clear. The stage was set for the revival of rentier landlordism but also the eventual decline of home ownership, the fall of municipal empires but the rise of mega housing associations and a belief that housing benefit could ‘take the strain’ of higher rents that always seemed unlikely and drained away with austerity.

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