The state of the housing nation 2023

As 2023 draws to a close, what is the state of the housing nation?

As always, the best place to start is the English Housing Survey, which has just published headline results for 2022/23. Here are five things that caught my attention.

1 The tenure and wealth gap

The results of the survey need to be treated with more caution than usual when comparing the results this year thanks to the impact of the pandemic, but the general trend on housing tenure is pretty clear.

Thanks in part to Help to Buy and other government schemes, the proportion of households who own their own home (64 per cent) has stabilised while the relentless growth of the private rented sector (18 per cent) has slowed. The social housing sector is still in slow decline but there is a significant difference between London (where it is home to 21 per cent of households) and England as a whole (16 per cent). 

There were 874,000 recent first-time buyers in 2022/23 and they had an average (mean) deposit of just over £50,000.

Given that, it’s not surprising that family wealth has become increasingly important to people’s chances of buying. A growing proportion received help from family or friends (36 per cent, up from 27% in 2021/22 and 22 per cent in 2003/04) while 9 per cent used an inheritance for a deposit.

They were also higher earners: the majority of successful first-time buyers (58 per cent) came from the top two income quintiles and only a small minority (16 per cent) came from the bottom two.

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Gove’s confession only goes so far

Originally written as a column for Inside Housing.

If it’s broken, who broke it? If there were mistakes and errors, who made them?

It was quite an Easter week for Michael Gove as he moved into confessional mode first in a think tank report and then in a Today programme interview.

‘That the current housing model– from supply to standards and the mortgage market – is broken, we can all agree,’ the housing secretary wrote in an introduction to the report from Bright Blue and Shelter. ‘That change is necessary is undeniable. We are bringing about change – and we are determined to see it through.’

And, asked on the Today programme on Thursday (listen from 08:12), if he had gone through ‘an awakening’ on housing, he said that: ‘The thing that affected me most was the Grenfell fire. What the Grenfell inquiry, in particular, has subsequently brought to light were a chain of errors. I’m very happy to reiterate that there were some mistakes and errors that were made not just by the coalition government but by governments before which contributed to social tenants not getting the support that they deserve, not having their voices heard. And so change had to come and we are delivering that change.’

Note that Mr Gove leaves us with the same key message: others made the mistakes that broke the housing model and now he is here to fix things.

Some of what he’s saying is quite true – he has reversed much of the deregulation of the past – but the interview still begged more questions.

What exactly was he admitting to – and how much of the blame was he really taking for himself and his Conservative colleagues?

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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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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 »


10 things about 2019 – part one

Originally posted on December 24 as a blog for Inside Housing.

It was the year of interminable votes on Brexit, two prime ministers and finally a decisive election victory for Boris Johnson’s Conservatives.

It was also the year that the housing crisis continued to intensify and the year that previous fixes were exposed for the sticking plasters that they really were.

Here is the first of a two-part look back at what I was blogging about in 2019.

1) The politics of housing

Regime change at Downing Street brought a new housing minister heavily implicated in welfare ‘reform’, a renewed focus on home ownership and what I called ‘a great leap backwards’ at the Conservative conference.

At the December election 15 per cent of voters told Ipsos MORI that housing was one of the most important issues for them – down from 22 per cent in 2018 as Brexit and the NHS dominated but three times more than in 2010.

And yet the politics of housing did not seem to matter much as the Boris Johnson’s Conservatives won a big majority away from the big city seats where Generation Rent, homelessness and the cladding scandal had seemed to offer fertile ground for Labour and the Lib Dems.

It was a year that ended with a decisive victory for the leader that promised Brexit and crushing defeat for the parties whose policies might just have fixed the housing crisis.

The bigger question was how far The People’s Government will diverge from Theresa May’s focus on housing and renter issues. The December Queen’s Speech confirmed some continuity, but the Tory manifesto offered few clues and far more emphasis on home ownership seems a given.

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Sidelining of tenants is part of a wider pattern

Whether you put it down to carelessness or couldn’t care less-ness, the inaction inside government inaction that has sparked open letter from A Voice for Tenants (AV4T) is symptomatic of a wider political paralysis.

As the group themselves point out, they are not representative of the eight million people living in social housing in England but they are the best we have until the government keeps the prime minister’s promise to bring tenants into the political process.

The letter is all the more effective for the contrast between its moderate language and its stark message that working behind the scenes has not produced results.

The only option left seems to be to embarrass the politicians into living up to what they have said over the last two years – accepting Inside Housing’s open invitation to a meeting seems the bare minimum they should do.

And there is a strikingly similar message in the Times this morning from Grenfell United, as it attacks ‘indifferent and incompetent’ ministers who took their ‘kindness as weakness’.

Two years of meetings have produced too little action, they say, with no progress on their call for a new model of housing regulator and thousands of people still living in ‘death traps’ with combustible cladding.

Grenfell and tenants were top of the agenda for the ministers in post at the time of the fire – the work of Alok Sharma and his civil servants is praised in the AVT letter – but have slipped down it as the months and now years have passed.

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Where next for renting after Section 21?

Blimey. If it plays out as billed, the government’s consultation on ending no-fault evictions and introducing open-ended tenancies for private renters represents the quickest change in housing policy that I can remember.

I say ‘if’ because this is still only a consultation, because ministers have form for claiming rather more in press releases than turns out to be the case when the detail is published and because Theresa May could be succeeded within weeks by a new, more right-wing prime minister who could dump the whole thing.

One more caveat is that I am only talking about England. The first minister of Wales, Mark Drakeford, pledged to end no-fault evictions on Saturday and so narrowly avoided the embarrassment of Welsh Labour lagging behind the English Tories on tenants’ rights.

Scotland has already abolished Section 33 (its version of 21) and introduced a new tenancy system in December 2017 that could become the model for the other UK nations.

In England, and taking it at face value, this announcement is a stunning victory for campaigners that takes May’s Conservatives to the left not just of where Ed Miliband was at the 2015 general election but also of what Jeremy Corbyn argued at the 2017 election. It was only later that year that the Labour leader committed to ending Section 21.

Last year the government consulted on its own plan for three-year tenancies but did not commit to making them mandatory – this was only one of three options alongside education and financial incentives for landlords.

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The shift to renter rights

Originally published on March 11 as a blog for Inside Housing. 

Can it really be less than five years since Labour’s plans for three-year tenancies in the private rented sector were attacked by the Conservatives as ‘Venezuelan-style socialism’?

And is it really less than three years since Royal Assent for a Housing and Planning Act that included provisions to abolish secure tenancies and make fixed terms mandatory for new council tenants?

A plan for that to apply to housing association tenants as well was only dropped because of concerns over their public-private status but many associations enthusiastically took up the voluntary option of fixed terms they were given in the 2011 Localism Act.

Until very recently it seemed that social housing was set to follow the private rented sector into a marketised world of flexibility and insecurity.

However, the pace of change on this issue in the last 12 months has been rapid and it is still accelerating.

The biggest move so far came on Friday when Labour followed up on its conference pledge to scrap no-fault evictions by announcing plans for indefinite private tenancies.

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10 things about 2018 – part one

Originally published as a column for Inside Housing on December 21.

It was the year of three housing ministers and two secretaries of states (so far), the year that the department went back to being a ministry and a new government agency promised to ‘disrupt’ the housing market.

It was also the year of the social housing green paper and the end of the borrowing cap, of Sir Oliver Letwin and Lord Porter and of some significant anniversaries.

Above all, it was the year after Grenfell and the year before Brexit. Here is the first of my two-part review of what I was writing about in 2018.

1. New names, new ministers

January had barely begun when the Department for Communities and Local Government became the Ministry for Housing, Communities and Local Government. The name harked back to the glory days when housing was ‘our first social service’ and housing secretary Sajid Javid became the first full member of the cabinet with housing in his title since 1970.

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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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