Bonus culture

So has what started out as ‘a Rolls Royce idea’ ended up ‘a Reliant Robin policy in practice’?

That’s not me describing the New Homes Bonus but Conservative MP Stewart Jackson. Now a member of the public accounts committee (PAC), he was speaking at an evidence session in June ahead of its report published this morning. He was also a shadow communities minister at the time the bonus became a Conservative flagship policy.

With scepticism like that on the Conservative side it’s little wonder that the PAC has more scathing criticism of the handling of the policy. It follows an embarrassing verdict (for the DLCG) delivered by the National Audit Office (NAO) in March.

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2020 vision

Ed Miliband’s conference speech was much vaguer about housing than the advance briefing but it still sounds like good news.

The Labour leader said that ‘we’ll have an aim that at the end of the parliament Britain will be building 200,000 homes a year, more than at any time in a generation’.

He said that in 2010 there were a million too few homes in Britain but that the shortfall would rise to two million – the equivalent of five cities the size of Birmingham – by 2020 if we carry on as we are.

Read the rest of this post on Inside Edge, my blog for Inside Housing


Choice viewing

A documentary about housing on Channel 4 is usually the cue for me to look what else is on TV. This time I watched the programme – and the reaction to it.

Inside my Twitter feed, the debate was about whether How to Get a Council House (watch again here) presented a realistic but depressing portrait of life on the waiting list or trivialised the issues by ignoring the reasons why the wait is so long.

Outside my feed, the racists, kippers and anti-welfarists were in full cry. Search under the hashtag #howtogetacouncilhouse and you will quickly see what I mean: in this world council housing is the preserve of immigrants and scroungers. All of the public prejudices against people on benefits are simply transferred to council tenants.

Read the rest of this post on Inside Edge, my blog for Inside Housing


Shappsenfreude

So, shockingly, it turns out that the government’s ‘powerful new incentive’ to councils to approve more homes may not be working out quite like that.

A damning report on the New Homes Bonus published today by the National Audit Office (NA0) is deeply embarrassing for the DCLG and former housing minister Grant Shapps but it hardly comes as a huge surprise.

The flaws were pretty clear right from the beginning. As I argued when the first allocations were made, it is not really a bonus and it amounts to a mechanism for transferring funding from deprived areas of the north to affluent areas of the south for homes that would have been built anyway.

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Growing pains

If you drive a car, you need a license, an MOT and insurance. Why should it be any different to rent out a house?

That point – made by Jacky Peacock of the National Private Tenants Organisation at a Communities and Local Government committee hearing yesterday – got me thinking about the whole issue of licensing and the private rented sector.

Read the rest of this post on Inside Edge, my blog for Inside Housing


Lack of support

After a u-turn by the Welsh government, England is the only UK nation still planning to cut council tax benefit in April – and not all of England either.

As tenants and landlords gear up for the bedroom tax and the household benefit cap in April and the start of the universal credit in October, it’s all too easy to forget the cut that will see affected households lose another £2 to £3 a week. The cut will see administration of council tax benefit transferred from the UK government to devolved administrations and English local authorities but with a 10 per cent cut in funding that will save the Treasury £470 million.

Wales had been planning to implement a national scheme but late on Thursday the devolved administration revealed that it had found an extra £22 million to help with bills in 2013/14.

Read the rest of this post on Inside Edge, my blog for Inside Housing


Ignoring the obvious

Without local authorities, England has only seen more than 200,000 housing starts three times since the war. So why is council housing being ignored now?

As John Perry argues in Inside Housing, councils are currently building around 3,000 homes a year but they could build 15,000 if they were given more freedom to borrow. ‘A government that is desperate for house building shouldn’t look a gift horse in the mouth,’ he says.

Desperate is exactly the right word for our current performance on housebuilding: just 105,000 starts in England in 2011/12, down from a miserable 112,000 in 2010/11 and less than half the level needed to meet demand and prevent an ever-increasing spiral of rising prices and rents.

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