Mind the gaps in the Housing Bill

Originally published on March 1 on Inside Edge 2, my blog for Inside Housing

For a piece of legislation that’s already faced hours of scrutiny from MPs and peers, there are still gaping holes at the heart of a Housing and Planning Bill that started life on the back of a fag packet and hasn’t moved much beyond it in several important respects.

Opposition demands for more detail about legislation are nothing new of course, but I’ve argued before that the lack of clarity here is deliberate in a bill that is designed to allow the government to do what it wants in future. To take one example, after stretching the definition of ‘affordable’ to breaking point to include £450,000 Starter Homes, the bill adds that the secretary of state ‘may by regulations amend this section so as to modify the definition of affordable housing’.

Many of the gaps were highlighted in the Commons late last year. The last two months have brought little further detail but now it’s crunch time: as peers debate a series of amendments, ministers are bound to come under increased pressures to say exactly what they mean.

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Checking the bill

Originally posted on February 10 on Inside Edge 2, my blog for Inside Housing 

Start with a fundamental change to the funding mechanism for the right to buy, stir in more changes to key elements of the Housing and Planning Bill, then add criticism of the lack of detail and you have a recipe that shoud give ministers indigestion.

The report of the all-party Communities and Local Government Committee does support both the extension of the right to buy to housing association tenants and the voluntary deal between the government and the NHF is ‘the best way forward’.

But that’s as good as it gets for ministers from a committee that has a Labour chair but a Tory majority. Here is the headline recommendation:

‘The Government proposes to fund the right to buy discounts for housing association tenants with the proceeds from the sale of high value council homes. However we believe that public policy should usually be funded by central Government, rather than through a levy on local authorities.’

This would undermine one of the central elements of the Bill and the government’s method of paying for right to buy discounts and the promised replacement homes. And the MPs are not finished.

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Peer review – part 2

Originally posted on January 27 on Inside Edge 2, my blog for Inside Housing

Part 1 of this blog covered the opening skirmishes in the Lords on the Housing Bill. This second part covers all-party criticism of the detail of the Bill where the sums don’t add up or don’t exist yet. What are the prospects for changes?

Starter homes. Peers criticised both their affordability and the fact that the discount disappears into the back pocket of the first buyer. As Labour’s Baroness Andrews put it:

‘We know from all the evidence that starter homes are not even affordable for most low and middle-income families, whether in rural areas or central London. However, it is not even a fair policy for future buyers. The 20% discount will apply only to the first tranche of buyers; they will be free to sell their assets after five years at market value. We will be minting a new generation of property speculators.’

Tory peer Viscount Eccles said the scheme had ‘not been thoroughly thought through’ and called for much more detail.

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The Housing Bill: From bad to worse


Originally posted on January 13 on Inside Edge 2, my blog for Inside Housing 

If it is an achievement to pilot a Bill through the House of Commons and end up with legislation that is worse than what you started with, then congratulations Brandon Lewis and Greg Clark.

Back in October I blogged that the Housing and Planning Bill is written on the back of a fag packetOn Tuesday it completed its report stage and got a third reading with additions and amendments scribbled all over the front as well. It was hard to disagree with the verdict of shadow housing minister John Healey in his closing speech: ‘Usually, we hope to improve a Bill as it goes through the House. This was a bad Bill; it is now a very bad Bill.’

Healey cited late amendments to change the definition of ‘affordable’ to include starter homes costing up to £450,000 (‘the Government are not building enough affordable homes, so they are simply branding more homes as affordable’) and to force councils to offer fixed-term tenancies (‘meaning the end of long-term rented housing, the end of a stable home for many children as they go through school, and the end of security for pensioners who move into bungalows or sheltered flats later in life’).

It was hard to disagree either with his view that ‘the Bill sounds the death knell for social housing’. That much will be obvious to anyone working in housing or who has followed the progress of the Bill. The tab for the Conservative manifesto pledges of extending the right to buy and building 200,000 starter homes is effectively being picked up by councils that still own their homes, tenants and people who will not get the chance of a social tenancy in future.

The Bill accelerates the slow death of social housing through a combination of deliberate culling (forced sales, Pay to Stay and fixed term tenancies for council housing), euthanasia (voluntary right to buy for housing associations plus conversions) and redefining the conditions for life (‘affordable’ will now not just mean starter homes but anything the secretary of state says). It is also now official that a private rented home does not have to be fit for human habitation.

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Estate regeneration: trust and money

Originally published on January 11 on Inside Edge 2, my blog for Inside Housing

It will take huge amounts of commitment, trust and money to deliver David Cameron’s vision of estate regeneration.

There is commitment but sadly only to the most simplistic of world views: lots of poor people live on council estates; therefore council estates must cause poverty. Never mind that much better funded area-based initiatives under Tony Blair largely failed. Never mind that poverty and even worse deprivation were concentrated in many of the same areas before the estates were built (just check the Booth poverty maps of London). The ‘so-called sink estates’ will be radically transformed or knocked down.

Trust is in such short supply after a series of controversial regenerations of estates in London (and we are mainly talking about London) that promises need to come from the very top to restore good faith. That applies both to the prime minister and to the Conservative candidate for London mayor Zac Goldsmith.

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10 things about 2015: part 2

Originally published on Inside Edge 2, my blog for Inside Housing

My look back at the year in housing on my blog concludes with five more big issues including the future of social landlords, welfare reform and poverty. For Part 1 go here.

6) Wrong or right to buy

Nothing sums up how just much turned on the election result as what happened with the Right to Buy. In February I blogged about the clarification that meant even fewer homes sold under the existing policy were being replaced than previously thought. April brought a buccaneering Tory pledge to extend it to housing association tenants and fund it by forcing councils the sell their ‘expensive’ stock. It was hard to see how it could possibly stack up except as a political gimmick but that was pretty much the point. It was an eye-catching election promise by a party desperate for victory and it seemed designed as a manifesto commitment that could be traded away in coalition negotiations.

Except that it worked. The Tories were unexpectedly elected with an overall majority and the mash-up of think tank proposals written on the back of an envelope somehow had to be implemented. The results would be disastrous for local authorities and the government faced a long battle in the House of Lords. And then everything changed all over again as the most vociferous opponents of the policy decided to accept it voluntarily.

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Voluntary service

Originally posted on December 15 on Inside Edge 2, my blog for Inside Housing

Tuesday morning’s announcement by Brandon Lewis on deregulation of housing associations delivers on the government’s side of The Deal and its pledge to get them reclassified as soon as possible,

However, it also completes the division of what we used to call the housing ‘sector’ into two very different camps: councils forced to do what the government says; and associations giving a new meaning to the ‘voluntary’ sector.

The housing minister told the Communities and Local Government Committee that amendments will be laid to the Housing and Planning Bill aimed at enabling the ONS to re-reclassify housing associations as private sector while maintaining proportionate protection for lenders and tenants.

The biggest move was to make Pay to Stay voluntary for housing associations, which is quite a climbdown. However, the amendments will also include removal of the consents and disposals regimes so that associations no longer have to seek permission of the regulator and the abolition of the disposals proceeds fund so that they no longer have to spend receipts from the right to buy according to criteria set by the regulator. More detail is here.

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Keep your friends close – Part 1

Originally posted on November 30 on Inside Edge 2, my blog for Inside Housing

For some reason, George Osborne made me think back to the school playground as he set out his spending plans for the next five years.

As the sidekick and heir apparent to the head boy, the chancellor has the power to get what he wants. First he had to correct his mistake from the Summer Budget when he was caught redhanded trying to steal the dinner money of most of the poor kids. He has now handed it back to the Strivers but will be waiting for them in the bushes to claim it back after school.

With that out of the way, he was free to get the gang together to build some homes, by which he means almost exclusively homes to buy. First in line were his main allies the housebuilders.

When you’ve already benefited from billions of pounds worth of loans, guarantees and relaxations in the rules on planning and energy efficiency, what’s another £2.3bn between friends? Yet this was different: the first time that I can remember that grant (presumably it is grant) has gone to pay for something that will not be recycled into more homes.

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Look on the back

Originally posted on October 20 on Inside Edge 2, my blog for Inside Housing

A few answers and yet more questions: my round-up of the latest developments on the Housing Bill.

An ex-colleague used to speak in awed tones about the time he saw an old-school football reporter compose his match report for the Football Pink as the final whistle sounded. He took a cigarette packet out of this pocket, drew lines on it in the shape of paragraphs, and then dictated a word-perfect report down the line to the copy takers.

Much has changed since the olden days: smoking in public places; laptops and the internet have replaced phones and copy takers; and Pink ‘Uns died out long ago in most cities. But looking back at the events of the past week it seems that cigarette packets remain as popular as ever for drawing up plans – and for things infinitely more complicated than football matches.

This was exactly the metaphor used by an anonymous source in Jill Sherman’s story in The Times last week that the government is set to phase in the extension of the right to buy because of concern over the costs. ‘The Treasury people are hanging their heads in despair,’ the source said. ‘How did this policy that was made up on the back of a fag packet get adopted during the election campaign?’

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Beyond the deal

Originally posted on October 13 on Inside Edge 2, my blog for Inside Housing

If the result of the NHF ballot was a foregone conclusion, just about everything else about the extension of the right to buy remains unclear.

With a majority of 93% by stock and 86% by membership, the NHF has a result it can present to the government as a resounding endorsement of its voluntary deal. True, it’s only 55% of those eligible to vote (or, as Joe Halewood argues, 20% of all registered providers) but that presentation is what really counts. Given the dubious nature and timing of the vote, this was always going to be the result (see my related post Deal or No Deal?).

But anyone looking for a response from Greg Clark at the Conservative conference on Monday will have come away disappointed. The communities secretary extolled the virtues of the right to buy, argued housing association tenants have the same ambitions to own as everyone else and delivered the line Tories wanted to hear: ‘We are doing what we promised, we are extending the right to buy to housing association tenants.’ But there was no explicit reference to the deal rushed through in time for the conference.

The omission may just be a demonstration of the political sensitivity involved. Early reports said Clark had watered down the manifesto pledge (something he denied, though the voluntary arrangement may result in the right to a discount rather than a right to buy for some tenants). However, it’s also a reflection of how much has still to be resolved.

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