Standards and trade-offs

Originally written as a column for Inside Housing.

Can social landlords improve their existing homes at the same time as they deliver ‘the biggest boost to social and affordable housing in a generation’?

The answer is that they will have to but a select committee report published on Monday lays bare the scale of the task ahead and the trade-offs that will have to be made.

As landlords are only too aware, the next ten years will see implementation of Awaab’s Law (phased introduction between 2025 and 2027), Minimum Energy Efficiency Standards (by 2030) and the revised Decent Homes Standard (by 2035). 

Add continuing work on building safety and they face a massive programme of work on existing homes that will have to be balanced against bids to build new ones under the Social and Affordable Homes Programme (SAHP). 

Monday’s report from the Housing, Communities and Local Government (HCLG) Committee lays out a ‘challenging backdrop’ of rising costs and a shortage of skills. 

The all-party committee concludes that: ‘Even with the government’s investment in social homes and changes to the rent settlement, we are concerned that the sector will not have sufficient resources to effectively meet the government’s new social homes target while also raising standards.’

This could also lead to landlords selling off stock that has reached the end of its intended lifespan, say the MPs, ‘at a time when social housing is desperately needed’.

All of which leaves a series of trade-offs balancing three different interests: of existing tenants who rightly want improvements as quickly as possible; of social landlords acutely aware of their finances who say they need time and flexibility; and of families stuck in temporary accommodation or on waiting lists who are desperate for a social home.

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A flurry of detail but still no strategy

Originally written as a column for Inside Housing.

After weeks and even months of significant announcements delayed and promised ‘in due course’ it feels as though, like buses, they have all arrived at once. 

From the Warm Homes Plan and energy efficiency to commonhold and leasehold reform, from the Decent Homes Standard to rent convergence and from Section 106 to a new social housing taskforce the list goes on and on. 

On social and affordable housing, the announcements are summarised in an update to last July’s plan for ‘a decade of renewal’.

The flurry of activity seems intended to clear the decks for the opening of bids for the Social and Affordable Homes Programme in February by giving providers increased certainty about their finances.

On housing in general, the common factors seem to be removing obstacles in the way of development and giving owners and tenants more control over their lives and better conditions.

In most of these decisions, the government has faced a choice between two or more competing views or interests. It has usually gone for the middle ground.

On rent convergence, for example, last year’s consultation asked whether below-formula social rents should increase by an extra £1 or £2 a week but social landlords were pressing for £3. 

In deciding on this, ministers had to weigh the costs to tenants and the Department for Work and Pensions against the positive impact on landlord investment in improvements and new homes and balance the interests of existing tenants against people waiting for a social home.

The decision to allow an extra £1 a week from April 2027 and £2 from April 2028 splits the difference but the delay means the extra income will be slow to arrive and in any case it will probably not be enough to make up for the rent cuts imposed in the 2010s.

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Child poverty, the two-child limit and beyond

Originally written as column for Inside Housing.

There can be no solutions to child poverty that do not address the high cost of housing.

Take even a cursory glance at the government’s child poverty strategy published on Friday and you cannot avoid the direct links between deprivation in childhood and homelessness, a severe shortage of social housing and unaffordable private rents. 

The strategy builds on the abolition of the two-child limit in the Budget, which accounts for 450,000 of the 550,000 reduction in the number of children in poverty forecast by the end of this parliament.

Even taken on its own, this is a major change, perhaps the single most progressive thing that the Labour government has done since it took power. 

But as in the Budget you will search in vain for two other policies that will blunt its impact.

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Budget leaves big gaps to be filled

Originally written as a column for Inside Housing.

Even if it had not been leaked in advance, this Budget could have been defined as much by what was not in it as what was.

The astonishing mistake made by the Office for Budget Responsibility (OBR) in uploading a report containing all the key measures before chancellor Rachel Reeves had started speaking came after weeks of well-sourced stories about them.

We already knew the headline measures: the abolition of the two-child limit; a council tax surcharge on high-value homes; and freezing income tax thresholds.

They were joined on the day by a private landlord tax (higher rates of income tax on income from property), confirmation of more money for the Warm Homes Plan and a welcome move to tackle the ‘benefit trap’ facing tenants in supported and temporary accommodation. 

But the Budget delayed one of the decisions most eagerly awaited by  social landlords: they will now have to wait until January for the government’s final decision on rent convergence, in effect how quickly they can increase their lowest rents above the CPI plus 1 per cent limit.

Three months on from the consultation closing, the Budget background document explains that: ‘While the government remains committed to implementing social rent convergence, it is important to take the time to get the precise details right, taking account of the benefits to the supply and quality of social and affordable housing, the impact on rent payers and affordability.’

And there was no mention at all of the Local Housing Allowance (LHA) freeze, perhaps the housing issue raised by more organisations than anything else in the run-up to the Budget.

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Exit Rayner, enter Reed

Originally written as a column for Inside Housing.

Angela Rayner is a huge loss for the Labour government and the country but arguably an even bigger loss for housing.

The housing secretary had to go after the standards advisor ruled that she breached the ministerial code by underpaying the stamp duty on her new flat, even if the breach seems inadvertent and minor by comparison with previous tax errors by ministers. 

Keir Starmer has lost someone who, after a difficult start, became a key partner on the left of the Labour Party as deputy leader and deputy prime minister.

Much like John Prescott in the early days of the Tony Blair government, her presence reassured Labour supporters that despite its modernising rhetoric the government had the interests of working people at heart.

Housing has lost a powerful voice at the top of government, someone who was in charge long enough to secure a favourable settlement in the spending review (even if it did not quite live up to her hype).

Would MHCLG have achieved as much without her? Housing might still have been a relative priority but probably not, I’d say.

Supporters of social and council housing – and those who need it – have lost an ally who knew its value from her own experience. 

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A year of progress for Labour still leaves major gaps to be filled

Originally written as a column for Inside Housing.

A year into the Labour government how should we assess its record on housing?

It’s not hard to find reasons to celebrate, from the spending review announcement of £39 billion for the Affordable Homes Programme to the creation of a National Housing Bank within Homes England armed with an extra £16 billion in financial transactions capital.

Social rent is the priority after years when it was under threat of extinction and will account for 60 per cent of the renamed Social and Affordable Homes Programme (SAHP).

Social landlords have got what they asked for on rents and the long-term plan for social and affordable housing sets out how they must improve their existing homes, professionalise their staff and give tenants more access to information. 

The prospect of new financial flexibilities for local authorities and restrictions on the Right to Buy offer council housing its best opportunity in years to escape the straitjacket imposed by central government. 

But there are still many gaps to be filled when Labour sets out its wider plans in a long-term housing strategy and publishes its homelessness strategy. 

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Labour’s plan for ‘a decade of renewal’

Originally written as a column for Inside Housing.

The spending review may have given us the headlines but a flurry of announcements on Wednesday fills in much of the detail about what the government is calling ‘a decade of renewal for social and affordable housing’.

On new homes, a key question was how the £39 billion will be spent over the next 10 years and, in particular, what the trade-off will be between maximising total output of affordable homes and giving greater priority to social rent. 

That got an answer in an overnight press release: a renamed Social and Affordable Homes Programme (SAHP) is forecast to deliver 300,000 homes over the ten years (30,000 a year), of which at least 180,000 (18,000 a year or 60 per cent) will be for social rent. 

To put this in perspective, the current AHP was originally meant to produce 180,000 affordable homes over the five years from 2021 to 2026 (36,000 a year) but rising construction costs cut that to between 110,000 and 130,000 (22,000 to 26,000 a year. Of those, just 40,000 (8,000 a year) are forecast to be for social rent.

Importantly, strategic partnerships will be able to bid for funds over the lifetime of the programme, which should give at least some protection from the risk of cuts if a government more hostile to housing wins the next election.

Another trade-off is the split between London, where higher land prices and construction costs mean more grant per home is needed, and the rest of the country. 

Under the current AHP, the Greater London Authority (GLA) got £4.1 billion (36 per cent) and Homes England £7.4 billion (64 per cent) of the grant available. 

Under SAHP, the GLA’s share will be cut to 30 per cent or up to £11.7 billion. It’s hard to reconcile that with the fact that more than half of the 126,000 homeless households stuck in temporary accommodation waiting for a social home are from London. 

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Does the spending review live up to the hype?

Originally written as a column for Inside Housing.

This spending review represents a good start on housing – but it must only be a start. 

Highlights of the package delivered by chancellor Rachael Reeves on Wednesday included £39 billion over 10 years for the Affordable Homes Programme (AHP) and a 10-year rent settlement of CPI plus 1 per cent for social landlords.

Then add a consultation on the return of rent convergence, £1 billon extra for cladding remediation and equal access to government funds, £2.5 billon in low-interest loans plus for social landlords. 

Stir and combine with £950 million for councils to increase the supply of temporary accommodation, £10 billion in financial transactions to boost private investment and more to come for infrastructure and land remediation in Cambridge and the new towns, and this looks like great work by deputy prime minister Angela Rayner and the Ministry for Housing, Communities and Local Government (MHCLG).

But does the spending review really justify the headlines and is it really as ‘transformative’ as some in the sector are making out?

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What’s at stake in the spending review?

Originally written as a column for Inside Housing.

With a week to go until the most consequential spending review for ten years, the Treasury is facing desperate last-ditch lobbying from departments that have yet to agree their settlement.

Last week’s public intervention by chief constables warning that the government will fail to meet its pledges on crime unless they get more cash is sign enough of that.

So too the leaked memo from deputy prime minister Angela Rayner setting out options for higher taxes that was inevitably followed by more leaks about her spending priorities.

As of this week, the Ministry for Housing, Communities and Local Government (MHCLG) was said to be one of the departments yet to agree a settlement, alongside the Home Office, with the Department for Energy Security and Net Zero just finalising one..

By contrast with previous spending reviews, housing starts with the advantage of having a politically powerful secretary of state in charge – and Angela Rayner has repeatedly promised ‘the biggest boost to social and affordable housing in a generation’.

But the ‘biggest boost’ can mean many different things, some of them genuine, some of them not remotely up to the challenge of the moment.

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An unequal struggle for housing

Originally written as a column for Inside Housing.

Housing seems such a natural engine of inequality that it’s easy to forget that the opposite was once true.

For most of the 20th century housing was the force that made society more equal. Council housing and rent control improved standards, made homes more affordable and tackled exploitation of tenants by private landlords. 

Owner-occupation expanded -perhaps 10 per cent of the population owned their own home in 1914 but that proportion expanded to a third by 1939, half by the start of the 1970s and two-thirds by the mid-1980s – while the proportion of homes rented from a private landlords fell from almost 90 per cent in 1918 to less than 10 per cent by the early 1990s. 

And then things went into reverse. A fascinating chapter by Susan Smith in this year’s UK Housing Review explores how this happened and what can be done about it. 

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