2016 and the end of the end of history
Posted: December 29, 2016 Filed under: Brexit, Europe, History | Tags: Donald Trump 2 CommentsAs we near the end of 2016 history is everywhere. Everyone seems agreed that it was the year that marked the end of something – but of what exactly?
Does Trump’s surprise victory over Hillary Clinton mark the end of neoliberalism? Does the fact that it happened 27 years to the day from the fall of the Berlin Wall mark the end of the post-Cold War era or the start of a new counter-revolution? Does the vote for Brexit mean a return to the ‘golden age of free trade’ or the protectionist, fear-ridden politics of the 1930s?
Does the West’s failure in Syria and the rebirth of Russian power in the Middle East mark the end of American hegemony? Does all of it mean that the Age of the Internet is experiencing the same upheavals as the Age of Discovery?
Both Trump and Brexit appealed to the past for their core support. Nostalgia was weaponised through slogans like ‘take back control’ as they promised to Make America (or Britain) Great Again. The same arguments were made in reverse in the first European referendum – the sense of national decline, of losing an empire without finding a role was a big reason why people voted yes to Europe then – but the Brexiteers harked back to a supposed golden age before 1975.
Trump appealed to the common man and promptly appointed the richest Cabinet since the Gilded Age. One young Republican with no sense of history or irony celebrated the great news that the party was set to control the presidency, both houses of Congress and the Supreme Court for the first time since 1929.
10 things about 2016: part one
Posted: December 23, 2016 Filed under: Brexit, Europe, Home ownership, Housebuilding, Housing associations | Tags: Housing and Planning Bill Leave a commentOriginally published on December 23 on my blog for Inside Housing
It was a year that fell neatly into two halves: before and after everything was turned upside down. The vote for Brexit on 23 June transformed politics, and the complete change of government and ministers has shifted priorities that had seemed set in stone until 2020.
But as some things change, others remain very much the same. Here’s the first of my two-part look back on the things I was blogging about in 2016.
1. Ambitions for new homes
The year began with what David Cameron hailed as a “radical new policy shift for housing”. The prime minister said that “for the first time in more than three decades” the government would directly commission homes itself on public land, giving priority to small builders. It was a welcome move but it was hard not to think of previous housing strategies that turned out not to be as “radical and unashamedly ambitious” as he claimed.
Cameron’s commitment to a million new homes by 2020 – or 200,000 a year for five years – seemed to be exactly that when the government’s own housebuilding figures showed completions running at around 140,000 a year. However, in May I questioned whether the target was really as ambitious as it seemed. It was already becoming clear that ministers were using higher figures for the net additional supply of homes as their yardstick. The total for 2015/16, the first of the five years, was just 10,000 short of the 200,000 a year benchmark.
An influential House of Lords committee gave short shrift to a claim by Brandon Lewis that the housing plans were “very ambitious”. It called instead for 300,000 new homes a year, backed by a series of radical changes to policy on investment, planning and tax.
2016 ends with Lewis in a different job, Cameron out of a job and the promise of yet another housing plan. The White Paper will no doubt be equally as ‘ambitious’ when it is finally published but the signs are that this one will have fewer adjectives and more substance.
Wake-up call
Posted: December 15, 2016 Filed under: Bed and breakfast, Homelessness, Temporary accommodation Leave a commentOriginally published on December 15 on my blog for Inside Housing
If 2016 proves to be the year that the government finally woke up to the homelessness crisis, official figures released on Thursday show its true scale.
The latest statistics from the Department for Communities and Local Government show 14,930 households were accepted as homeless in the June to September quarter. The good news is that this is down 1% on the previous three months. The bad news is that it’s up 2% on 2015 and 45% on 2010.
Remember this is only the most visible part of the crisis – the families who are accepted as homeless and in priority need by local authorities – and that it is just the start of a wait for permanent accommodation.
That wait goes on for those already accepted as homeless. The figures also show that 74,630 households, including 117,520 children, were in temporary accommodation at the end of September. That’s up 9% on 2015 and 45% on 2010.
And the increases are greatest in the worst and least permanent forms of temporary accommodation. There were 6,680 households in bed and breakfasts, including 3,390 families with children: up 13% on 2015 and more than five times the figure in 2010.
Most shockingly of all, there were 1,300 families with children who had been in bed and breakfasts for more than the six-week legal limit. That’s up 24% on the same quarter in 2015 and is an incredible 13 times higher than in the quarter before the election of the coalition government in 2010.
Two-way street
Posted: December 7, 2016 Filed under: Housing associations, Housing benefit, LHA cap, Wales Leave a commentOriginally published on December 7 on my blog for Inside Housing
The minister announces more investment in social housing – social, not affordable – and signs a pact with housing associations and local authorities.
This is not a fantasy or a trip down memory lane but something that happened last week in Wales, a country where the government and the housing sector are very much in sync.
Carl Sargeant, communities and children secretary, told the Community Housing Cymru (CHC) annual conference that Social Housing Grant (SHG) will be increased by £30m this year, or 44% on previous plans. He also signed a pact with CHC and the Welsh Local Government Association to deliver 13,500 affordable homes by 2021.
Though CHC is the Welsh counterpart of the National Housing Federation, the pact is not a deal that requires forced conversion to the merits of homeownership or that turns a blind eye to forced sales of council homes.The Right to Buy is being scrapped rather than extended and the pact sets out a series of other aspirations on everything from jobs and training to energy efficiency and rents to homelessness.
Housing in Wales works very differently to England thanks to devolution and a political culture that works on consensus.While London and Manchester are blazing a trail with new investment powers, Wales can make its own legislation. Greater regulation of the private rented sector and homelessness prevention are already in force, the end is nigh for the Right to Buy and stamp duty is being replaced with the first Welsh tax for almost 800 years.
JAMs and NOMADs
Posted: November 23, 2016 Filed under: Affordable housing, Budget, Housing benefit, Universal credit | Tags: Autumn Statement Leave a commentOriginally published on November 23 on my blog for Inside Housing
Wednesday’s Autumn Statement by Philip Hammond is good news for housing on several different fronts.
First, at long last housing is being recognised as infrastructure. That’s important enough in itself but Mr Hammond went even further by pitching housing as part of the solution to the key economic problem of productivity.
Along with transport, digital communications and research and development, housing will be part of the chancellor’s £23bn National Productivity Investment Fund. In financial terms, accelerated construction, affordable housing and the new Housing Infrastructure Fund represent a third of the total cost.
Mr Hammond also named “the housing challenge” alongside the productivity gap and the imbalance in prosperity across the country as one of the economy’s long-term weaknesses.
Hitting the target?
Posted: November 15, 2016 Filed under: Housebuilding, Planning Leave a commentOriginally published on November 15 on my blog for Inside Housing
On the basis of figures released today, the government is much more likely to achieve its ambition of a million new homes in this parliament than many people realise.
Total net additional housing supply was 189,950 homes in 2015/16. That means that in the first year of the five covered by the target, output was just 10,000 short of the 200,000 a year required.
As the graph shows, that total is the highest achieved since the peak of 2007/08, the last year before the impact of the financial crisis was felt. It’s also the fourth-largest annual output since this series was first published for 1991/92.
This level of output will come as a surprise to those relying on quarterly housebuilding statistics that show 139,880 new homes completed in 2015/16, well short of what’s needed.
Book review: The Financialization of Housing
Posted: November 13, 2016 Filed under: Financialisation, Housing market, Mortgages, Private renting, Regulation, Social housing | Tags: Manuel Aalbers Leave a commentThe Global Financial Crisis was a wake-up call to the world about the dangers posed by a toxic mix of finance and housing, one that has still not been properly heeded.
The mortgage-backed securities, collaterialised debt obligations and other financial instruments that financed the expansion of sub-prime and predatory lending were the result of a wave of innovation by a finance industry that had been deregulated over the previous 20 years. Britain marked the 30th anniversary of the Big Bang in the City last month but similar things happened around the developed world.
All that innovation and securitisation led to exponential increases in the amount of credit circulating within the financial system but it still needed something to be secured against. Which is where housing came in: a mortgage finance system that had been based on long-term mortgage lending funded from savings was transformed into a vehicle for the expansion of credit. And the relationship between the price of homes and the earnings of people buying them was also transformed.
The Financializaton of Housing: A Political Economy Approach, a new book by Manuel Aalbers, is the most comprehensive attempt I’ve seen to outline this process and its consequences. It’s part of a multinational research project based at the University of Leuven in Belgium on what he calls the Real Estate/Financial Complex in 12 different countries around the world. The metaphor is a deliberate echo of the military/industrial complex and serves to emphasise the connections not just between the real estate and financial sectors but also between each of them and the state.
Manifestly without reason
Posted: November 8, 2016 Filed under: Bedroom tax, Legal Leave a commentOriginally published on November 8 on my blog for Inside Housing
On a day when it was badly needed the judges of the Supreme Court obliged with some good news.
Yes, it was mixed with bad news in the judgement on the bedroom tax, as two claimants won their case and others were refused, but it was still a welcome vindication of the case put forward by the Carmichaels, the Rutherfords and their lawyers. In the words of the judgement, the decisions on their housing benefit were ‘manifestly without reason’.
Jules Birch 