Budget boost leaves housing gaps

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

This is a Budget that does not live up to its own hype and has some glaring omissions but still brings some good news for housing.

There are three big positives: a £12.2bn Affordable Homes Programme (AHP) over the five years from 2021/22; an additional £1bn for a Building Safety Fund to remove dangerous cladding; and £650m to help rough sleepers into permanent accommodation.

Add the reversal of an interest rate hike for borrowing for new council homes, extra funding for housing infrastructure, £1.2bn in consequentials that other UK nations can invest in new homes and an extension of Shared Accommodation Rate exemptions to young rough sleepers and other vulnerable groups, and this looks like one of the best Budgets for housing in the last 10 years.

However, that’s not setting the bar especially high, and you don’t have to look very far below the surface before the questions start to mount up.

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Priorities after the reshuffle

The dust has settled on the reshuffle with yet another new housing minister but more significant developments elsewhere.

The replacement of Esther McVey with Chris Pincher, the 10th housing minister to take their turn since 2010, need only detain us long enough to note the reward reaped by the former for resigning in principle from a proper Cabinet job over Brexit and the fact that the latter has lost the ‘attending Cabinet’ status that previously went with being a minister of state.

As Pete Apps noted on Thursday, the resignation of Sajid Javid is much bigger news because it dials down faint hopes that housing will gain in the Budget and Spending Review.

There was no direct evidence that this would actually happen but as a former housing secretary Javid is at least aware of the issues that need to be addressed. Rishi Sunak, the former Treasury chief secretary who steps into his shoes, is an unknown quantity.

More clues can perhaps be gleaned from the appointment of Jack Airey as Boris Johnson’s special advisor on housing and planning. As a former head of housing at Policy Exchange, we can probably expect more on the ‘building beautiful’ agenda and more support for the argument that housing problems all come back to planning.

And, at least in the short term, the most significant appointment in the reshuffle is the re-appointment of Robert Jenrick as housing secretary.

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Which way will Johnson jump?

Originally published on February 11 on my blog for Inside Housing.

For the moment at least all things seem possible when it comes to Boris Johnson’s Conservatives and housing.

Arguments apparently continue between those who want to shift further towards home ownership and those who see council housing as the focus for blue collar Conservatism.

The party seems to be facing in two opposite directions on new development, with some arguing for planning restrictions to be swept away while others see ‘beauty first’ as the key to winning local consent.

And these are just part of a wider battle between those who see Brexit as a chance to complete the Thatcherite revolution and those who think they must reverse some of it.

As an indication of the breadth of the possibilities, the Sunday Telegraph even reported that Johnson and chancellor Sajid Javid are considering imposing a mansion tax in the Budget.

The symbolism of taxing the well-housed in the South to spend more in the North could not be denied but would they really steal a policy from Ed Miliband’s Labour to screw their own supporters?

The first forks in the road are coming up soon with choices to be made about who will hold key ministerial positions in the reshuffle this week and what will be prioritised in the Spring Budget and in the Spending Review to follow.

In the meantime, though, what might a Boris Johnson housing policy look like?

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Warehousing poverty

Monday night’s Panorama provided a shocking window on the world of temporary accommodation and permitted development – but it also made me think back to an influential think-tank report from a decade ago.

The programme centred on Templefields House, a converted office block in Harlow run by property company Caridon. It provides temporary accommodation for local authorities across the South East but, according to the programme, also has a contract with an ex-offender re-housing charity.

There is no public transport and it’s 40 minutes’ walk from the town centre and, according to residents, the building is also rife with crime, anti-social behaviour and drugs and the police have been called out 600 times in three years.

The building, the company and another converted block it runs in Harlow, Terminus House, have featured in several previous media investigations of temporary accommodation and permitted development. See here, here and here for more details.

What was new in last night’s Panorama was the level of detail from residents and revelations from an undercover reporter.

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Embracing beauty

Originally published on  January 30 on my blog for Inside Housing.

It is very easy to be cynical about this week’s final report from the Building Better, Building Beautiful Commission report.

From the references to Kant to the plans for a fruit tree with every new house, Living with Beauty is full of the thinking you might expect from a group that was chaired by the late Sir Roger Scruton.

And it’s not hard to see how a system based on asking for beauty and refusing ugliness could result in the word ‘beautiful’ becoming as debased as ‘sustainable’ and ‘affordable’ by the time developers have worked out how to exploit it.

To cite one example that jars, the recommendations chapter of the report opens with a picture of Elephant Park in London, which may be an example of good design and greenery but is also the archetypal one of a community displaced in the name of ‘regeneration’ and social housing replaced by highly profitable market sale.

Yet for all that this is an important report that offers fresh support for attempts to move away from the speculative housebuilder model of development and replace it with a longer-term model that could put the meaning back into all three terms.

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Ministers still running to catch up on fire safety

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

This week’s flurry of announcements on fire safety comes from a government desperate to show that it is getting on top of the crisis.

But it still leaves ministers running to catch up and facing yet more questions about the adequacy of their response.

Timed to coincide with this week’s government response to phase one of the Grenfell inquiry and next week’s start of phase two, the announcements from housing secretary Robert Jenrick included a new Building Safety Regulator, clarified and consolidated fire safety advice and a pledge to name building owners who have not acted to make their buildings safe.

He is minded to lower the threshold for sprinklers in new residential buildings from 18m to 11m and match that in a consultation in the ban on combustible materials and he also launched a call for evidence on the prioritisation of risks from external wall systems in existing buildings.

More help for residents of buildings with non-ACM cladding could be on the way as Jenrick told the Commons that he was discussing the options with the Treasury and that the chancellor ‘will set out further details in due course’.

Finally, testing results of other cladding materials are to be published next month but the housing secretary said these would confirm the decision to prioritise ACM and make it clear that it is ‘significantly more dangerous than any other substance’.

Presented this way it seemed that the government is finally coming up with a response that is moving faster than the problems are mounting up on thousands of buildings around the country. As Jenrick summed it up: ‘As that work continues, it becomes ever more evident that problems have developed over many decades, leading to serious incidents and the risk of further loss of life. This is completely unacceptable.’

But that feeling soon began to dissipate under scrutiny from MPs in debates on Monday and Tuesday.

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Signals from long-delayed debuts for Jenrick and McVey

Originally published on January 15 as a blog for Inside Housing.

Robert Jenrick and Esther McVey faced their first parliamentary questions as housing secretary and housing minister on Monday – almost six months after they took up their posts.

The reasons for the remarkable delay to their despatch box debuts – the summer recess, Brexit and the December election – are not hard to guess and are also why housing has slipped down the political agenda in the meantime.

But, give or take the odd appearance in parliamentary debates and in front of select committees, the delay also means that we still have only a fuzzy picture of what they really think about the key issues stacking up in their in-trays.

And it came in the wake of a report in the Daily Mail over the weekend about an apparent clash between the two over where the government should spend its housing cash and which voters they should be targeting.

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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 »


Housing benefit problems a taste of what’s to come

Originally posted on January 9 on my blog for Inside Housing.

We’ve become so used to the misery caused by housing benefit failing to cover the cost of rents that problems with its administration have an almost retro feel to them.

From the perspective of 2020, the 2010s were the decade it turned out that housing benefit would no longer ‘take the strain’ of higher rents but instead passed the costs on to tenants via the bedroom tax, benefit cap, local housing allowance freeze and all the other ‘reforms’ instituted by Conservative-led governments.

But a report out this week from the Local Government and Social Care Ombudsman makes clear that the overpayments, underpayments and other errors that scarred claimants’ experiences of housing benefit from the 1990s to the 2000s are still happening.

It details a whole series of issues with the administration of the system by local authorities and the way the appeal process was handled. But it is the individual horror stories that really bring home the scale of the problems.

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10 things about 2019 – part two

Originally published on December 27 on my blog for Inside Housing.

The second part of my look back at 2019 runs from welfare homelessness to decarbonisation via housebuilding and permitted development.

5) ‘The systematic immiseration of millions’

The election result means that universal credit, the benefit cap, the bedroom tax and all the other welfare ‘reforms’ of the last decade are set to continue into the 2020s.

Chancellor Sajid Javid told us in the September spending round that austerity is over but the only hard evidence of this was an extra £40m for discretionary housing payments and previous cuts are still baked in to the system.

The election had delayed a full spending review until 2020 but better news came in November as the Conservative manifesto confirmed an end to the four-year freeze in most working age benefits, including the local housing allowance.

It remains to be seen, though, whether the government will restore the broken link with rents. It’s also worth noting that Esther McVey, the self-styled architect of Blue Collar Conservatism, called for part of housing benefit to be diverted into Help to Buy during her brief tilt at the Tory leadership.

I blogged about the deeper impacts on the housing system in a post from the Housing Studies Association conference in May that highlighted research on the ‘housing trilemma’ facing social landlords between their social mission, business imperatives and the impacts on tenants.

And the same month brought a damning external review from the United Nations Special Rapporteur on Extreme Poverty that warned of ‘the systematic immiseration of millions’.

Professor Philip Alston noted ‘a striking and complete disconnect’ between the picture painted by ministers and what he had heard and seen from people across the UK.

As for the chief architect of it all, the year finished with the decade summed up in four words: Sir Iain Duncan Smith.

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