Skills and homes
Posted: September 23, 2016 Filed under: Brexit, Construction industry, Europe, Housebuilding, Labour market, Prefabrication Leave a commentOriginally published on September 23 on Inside Edge 2, my blog for Inside Housing
If ‘Brexit means Brexit’ should it also mean a new programme of investment in social housing?
After a referendum that saw 63% of social tenants vote to leave the European Union, the attractions should be obvious. For ‘left behind’ voters it could mean both homes and jobs. For the government, now apparently edging away from an obsession with home ownership, it could offer a big pay-off from Philip Hammond’s ‘fiscal re-set’. For the purposes of this blog I’ll ignore all the other arguments in favour.
But it could also play into the wider politics of Brexit. Theresa May’s soundbite has yet to be translated into anything substantial but seems to be heading towards a ‘Hard Brexit’ outside the single market on the grounds that the referendum was a vote for controls on immigration.
That has huge implications for the housebuilding sector and the wider construction industry. Berkeley Homes boss Rob Perrins even claimed last weekend that a block on EU immigration could cut new homes by half. That is an exaggeration that could say more about his own workforce in London than the industry as a whole but this is still a huge issue. An alliance of construction organisations warned Brexit secretary David Davis earlier this month of a skills crisis if he does not make it a priority in the negotiations to come.
Support and protect
Posted: September 15, 2016 Filed under: Homelessness, Housing benefit, Supported housing, Supporting People | Tags: Damian Green, Homeless Link Leave a commentOriginally posted on September 15 on Inside Edge 2, my blog for Inside Housing
There is good news, bad news and some continuing uncertainty in today’s long-awaited government announcement on the future funding of supported housing.
Originally expected before the summer recess, it finally came in a written statement from work and pensions secretary Damian Green. This follows the deferral of implementation of the LHA cap and 1% rent cut on the sector to allow more research and consultation.
Cats and cream
Posted: September 9, 2016 Filed under: Housing associations Leave a commentOriginally published on September 9 on Inside Edge 2, my blog for Inside Housing
It’s Groundhog Day. Inside Housing publishes its housing association chief executive salary survey. People get outraged. Nothing changes.
The average boss in the 177 largest associations saw their total pay rise by 4% in 2015/16. That’s eight times the rate of CPI inflation and double the increase in average weekly earnings. And it also conceals a huge variation: by my reckoning 10 chief executives saw their pay frozen and 21 took a pay cut but 16 had an increase of more than 10%.
The numbers may change (and it’s always worth reading the footnotes for the explanations of the changes in individual salaries) but the arguments are essentially the same every year.
Homes and votes
Posted: September 5, 2016 Filed under: Home ownership, Rent to buy | Tags: Renewal, Rent to buy 2 CommentsOriginally posted on September 5 on Inside Edge 2, my blog for Inside Housing
Could rent to buy be the basis of a housing policy that helps deliver Theresa May’s ‘country that works for everyone’?
That’s the bold claim in a new report from Conservative think tank Renewal that calls for a radical reset of the Tories’ ambitions.
The aim is overtly political. As author David Skelton explains on Conservative Home, it is to broaden the appeal of the Conservatives to working class voters and voters outside of the South East. In a nutshell it is to capture the votes of people on low incomes by offering a housing counterpart to the national living wage.
However, while Homes for All (PDF here) is presented as being in the Tory tradition of Macmillan and Thatcher, it is also an admission that current Conservative plans do not work ‘for everyone’. Starter homes and shared ownership, the big winners from the spending review and Housing and Planning Act, are unaffordable for people on low incomes in most of the country.
Back to work
Posted: August 31, 2016 Filed under: Benefit cap, Pay to stay 2 CommentsGovernment resumes this week after a summer in limbo following the Brexit vote and change of prime minister. The unanswered questions for housing are stacking up.
The Cabinet met to discuss Brexit and parliament returns on Monday for two weeks before MPs take another break for the party conferences.
And the next few months should bring answers to some of the questions that have been hanging over housing ever since the referendum result and change of government.
What part will housing investment play in the fiscal ‘reset’ expected in the Autumn Statement? Will the new government offer any flexibility in the spending review settlement?
Is Theresa May’s vision of ‘a country that works for everyone’ and ‘giving people more opportunity’ just rhetoric or does she want a housing system that works for everyone too?
Will Sajid Javid and Gavin Barwell offer a change of approach at the DCLG? Will they be any less obsessed with home ownership? Or any less willing to devolve funding and decision making? Will they give full government backing to the private member’s Homelessness Reduction Bill?
But the more you look beyond the big picture and look at the detail the fuller the ministerial Pending and In trays become.
Off target
Posted: August 24, 2016 Filed under: Help to Buy, Housebuilding Leave a commentOriginally posted on August 24 on Inside Edge 2, my blog for Inside Housing
A million new homes by 2020? The latest housebuilding statistics for England suggest little progress towards the government’s target or aspiration or ambition. I forget which it is this week.
There’s the usual mix of good news (starts up slightly on the previous quarter and last year) and bad (completions up on the previous quarter, down a bit on last year).
But is this graph shows there are few signs of a step change in output. After an uptick in 2013/14, starts have now been stuck on just over 140,000 for the last nine quarters. Completions have now caught up.
And this is before any real impact from the Brexit referendum. Projections by Capital Economics in a report by Shelter yesterday suggest that housebuilding will fall by 8% over the next year because of uncertainty following the vote and that output will be down 66,000 homes as a result.
So a year into that five-year non-target, it seems perfect timing for chancellor Philip Hammond to launch his much-touted fiscal stimulus in the Autumn.
Lining their pockets
Posted: August 24, 2016 Filed under: Housing associations, Housing benefit, Private renting | Tags: Fabian Society, National Housing Federation Leave a commentOriginally posted on August 24 on Inside Edge 2, my blog for Inside Housing
Something about the rash of stories this week about ‘private landlord subsidy’ left me feeling very uneasy.
The stories were based on a briefing from the National Housing Federation (NHF) on how the amount of housing benefit that goes to private tenants has doubled in the last decade. As reported in the Daily Mail and elsewhere that means ‘Private landlords rake in £9bn a year from Housing Benefit’.
The figures were mostly familiar ones about the big increases seen since the financial crisis in the total bill, the number of claimants and the number of private tenants who are in work and also on housing benefit.
David Orr argued:
‘It is madness to spend £9bn of taxpayers’ money lining the pockets of private landlords rather than investing in affordable homes.’
He’s right, it is madness. Yes, private landlords do get £9.3bn in housing benefit. Yes, the bill has doubled since 2008.
Remembering Cathy
Posted: August 15, 2016 Filed under: Homelessness, Housebuilding, Television | Tags: Cathy Come Home Leave a commentOriginally posted on August 15 on Inside Edge 2, my blog for Inside Housing
Cathy Come Home has lost none of its power as it nears its 50th anniversary. As everyone in housing knows, the classic BBC play brought homelessness to national attention. Shelter was founded a few days after its first transmission, Crisis a year later and many housing associations at around the same time.
There are currently three different ways to watch again: the original BBC play by Jeremy Sandford and Ken Loach is on iPlayer, a stage version by Cardboard Citizens will be on tour over the Autumn and Winter and its production is also available on YouTube). Housing associations with a connection have also formed the Homes for Cathy group to raise awareness.
Watching the original for the first time in years, it was obvious that Cathy is still just as hard hitting as an exposé of what happens when a family slip through the safety net. Her harrowing descent from flat to squat to traveller camp to hostel was watched by 12m people in 1966 (a quarter of the population) and they got the message that housing matters.
In that final scene at Liverpool Street station, Cathy’s kids join the other 4,000 that the commentary tells us are taken into care each year because their parents are homeless.
Jules Birch 