Posted: May 26, 2016 | Author: julesbirch | Filed under: Housebuilding | Tags: Brandon Lewis, Queen's Speech |
Originally published on May 26 on Inside Edge 2, my blog for Inside Housing
Statistics published on Thursday provide the first clues as to whether the government will be able to deliver a million new homes in this parliament.
Transformed from an ‘aspiration’ into a ‘commitment’ in the Queen’s Speech, the million homes target will be a stretch but not quite as big a leap as it seems at first glance.
The DCLG housebuilding figures show homes built between January and March 2016 and therefore cover year one of this five-year parliament.
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Posted: May 23, 2016 | Author: julesbirch | Filed under: Europe, Help to Buy, Housing market | Tags: George Osborne, Grant Shapps, Referendum |
Originally published on Inside Edge 2, my blog for Inside Housing
Back in 2010 a Conservative housing minister mused that a period of stable house prices would be a good thing. Six years later – and in the context of the European referendum – it would apparently be a disaster.
A report today from the Treasury warns that prices could be 10%-18% lower by 2018 if we vote for Brexit next month. It’s part of a message that a leave vote would trigger what David Cameron calls a DIY recession that would cost hundreds of thousands of jobs.
I’ll leave the wider economic arguments to others (though note this would be quite a mild recession by comparison with the recent past) and concentrate here on house prices. This may seem a minor point by comparison with the more general impact on the economy but it’s interesting that this was the aspect of today’s Treasury analysis that George Osborne chose to trail last week.
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Posted: May 11, 2016 | Author: julesbirch | Filed under: Council housing, Right to buy, Social housing | Tags: Brandon Lewis, Housing and Planning Bill |
Originally posted on May 11 on Inside Edge 2, my blog for Inside Housing
The end of resistance to the Housing and Planning Bill leaves one big question hanging: why was the government so completely determined to undo an amendment that delivered its manifesto commitment on higher-value sales?
On the face of it, the amendment by Lord Kerslake that ping-ponged back between the Commons and the Lords should not have been such an issue. It would have put on the face of the bill the funding of replacements for ‘higher-value’ homes where local authorities sign an agreement with the Department for Communities and Local Government (DCLG). It also gave them the chance to make the case for social rented replacements, though the DCLG would not be required to accept this.
But ministers treated this as a wrecking amendment and claimed financial privilege on the grounds that it would fatally undermine their plans to pay for Right to Buy discounts for housing association tenants. Their determination was reflected in a piece in Wednesday’s Sun that included a threat to make the Commons sit all night and a personal attack on Lord Kerslake by Brandon Lewis.
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Posted: May 9, 2016 | Author: julesbirch | Filed under: Affordable housing, Cornwall, Local government, London, Planning, Right to buy, Scotland, Second homes, Wales | Tags: Bristol, Marvin Rees, Sadiq Khan |
Originally posted on May 9 on Inside Edge 2, my blog for Inside Housing
The May elections have a common theme when it comes to housing: can the winners really do what they say?
From Sadiq Khan to Marvin Rees, from Nicola Sturgeon to Carwyn Jones and from council leaders all over England to the voters of St Ives, winning the elections last week was the easy bit. The hard work starts now.
I’ll start with the poll closest to me: the referendum in St Ives on a Neighbourhood Plan that will ban the building of new second homes that has brought national attention.
More than 80% of residents supported the plan last Thursday and it’s impossible not to sympathise. Around a quarter of the homes in St Ives are either second homes or holiday lets and the problem is even worse in other Cornish communities. That does not just price out locals it also means a lack of year-round residents that makes it hard to sustain vital services and infrastructure.
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Posted: May 5, 2016 | Author: julesbirch | Filed under: Council housing, Pay to stay, Social housing | Tags: Housing and Planning Bill |
Originally published on May 5 on Inside Edge 2, my blog for Inside Housing
On Tuesday Brandon Lewis told the press that there would be no further concessions on the Housing Bill. A little over 24 hours later there were…further concessions.
On a day of five more defeats in the House of Lords, which will now ping pong back to the Commons, the biggest surprise for me was the last-minute changes to Pay to Stay announced by communities minister Baroness Williams.
The House of Commons overturned three previous Lords defeats on the controversial policy on Tuesday. To recap, the Lords had increased the thresholds to £40,000 and £50,000 in London, called for the thresholds to be increased in line with inflation every three years and reduced the taper rate from 20p to 10p. On all three the government claimed ‘financial privilege’, a strong message to the Lords to back off.
The stage was set for a new battle on Wednesday over slightly watered down Lords amendments but (probably fearing defeat) the minister announced a compromise – a taper rate of 15p and annual uprating of the thresholds in line with CPI inflation – that was accepted by peers.
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Posted: May 4, 2016 | Author: julesbirch | Filed under: Council housing, Right to buy, Social housing | Tags: Housing and Planning Bill |
Originally posted on May 4 on Inside Edge 2, my blog for Inside Housing
What is the difference between ‘high’ and ‘higher’ value when it comes to the forced sale of council homes?
The two letters were added to the Housing and Planning Bill in a government amendment in the House of Lords last month. The government argued that the switch would help areas facing the highest housing pressure – inner London boroughs plus places like Harrogate, Oxford and Cambridge – that would all have ‘a high proportion of their stock defined as “high value”. The minister, Baroness Williams, said she could ‘confirm absolutely’ that it would not be used to raise more money.
But new analysis by Shelter suggests that the shift in the Bill to a levy on ‘higher value’ sales could mean councils having to sell 23,500 homes a year, six times more than under the previous ‘high value’ thresholds.
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Posted: April 29, 2016 | Author: julesbirch | Filed under: Council housing, Legal, Pay to stay, Right to buy, Starter homes, Tenants | Tags: House of Lords, Housing and Planning Bill, Public accounts committee |
Originally published on April 29 on Inside Edge 2, my blog for Inside Housing
The worst excuse for a Bill that I can remember in 25 years of writing about housing limps back to the House of Commons next week.
The Housing and Planning Bill’s tail is not quite between its legs as all the key elements are still there and the Commons will reverse some changes. But it’s been gutted in the Lords, with two more defeats for the government on Wednesday, and this morning (Friday) it’s the subject of withering criticism by the all-party Public Accounts Committee.
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Posted: April 19, 2016 | Author: julesbirch | Filed under: Council housing, Legal, Pay to stay, Social housing, Tenants | Tags: Housing and Planning Bill |
Originally posted on April 19 on Inside Edge 2, my blog for Inside Housing
It was another day, another session of watering down the Housing and Planning Bill in the Lords. Peers reached sections of the Bill including Pay to Stay and security of tenure in the latest Report stage debate on Monday.
On Pay to Stay for ‘high income’ council tenants, they inflicted three more defeats on the government and they also forced some interesting clarifications of the detail out of ministers. As the Bill now stands, local authorities will have discretion about whether to apply Pay to Stay, the thresholds will be increased to £40,000 outside London and £50,000 in London, and the taper for higher rents will be 10p.
Obviously it remains to be seen how much of this the government will look to reverse in the Commons, perhaps citing financial privilege because the money raised by the policy goes back to the Treasury.
The government version of the policy – set out in an email to peers an hour before the debate – is that it will be compulsory for councils, the thresholds will be £31,000 and £40,000 and the taper will be 20p. That means tenants would pay an extra £200 a year in rent for each £1,000 they earn above the thresholds. (It’s not clear to me why the out-of-London threshold has been increased from the previous £30,000).
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Posted: April 14, 2016 | Author: julesbirch | Filed under: Council housing, Local government, Rural housing | Tags: Housing and Planning Bill |
Originally published on April 14 on Inside Edge 2, my blog for Inside Housing
Day two of the Lords report stage on the Housing Bill brought concessions on forced sales but there were inevitably more questions too.
Peers reached Part 4 of the Bill covering social housing in England and the main business of the day was the first two chapters: implementation of the voluntary right to buy and the levy on sales of high value council houses to pay for it.
This has always been one of the elements of the legislation that most resembled the back of a fag packet. The only figures ever published on how forced sales would work came in a Conservative party press release during the election campaign. This suggested that the most valuable third of council homes would be sold as they fall vacant, with values assessed against regional thresholds by bedroom size.
That raised many problems but two that stood out in particular. First, setting the values like that would mean local authorities in areas with high house prices would lose virtually all of their stock.
Second, it didn’t stack up: receipts would simply not be enough to cover right to buy discounts, the promised replacement homes and a proposed brownfield regeneration fund. That was clear right at the start and the CIH estimated the shortfall at £2.2bn.
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Posted: April 12, 2016 | Author: julesbirch | Filed under: Affordable housing, Planning, Section 106, Starter homes | Tags: Housing and Planning Bill |
Originally posted on April 12 on Inside Edge 2, my blog for Inside Housing
Otto von Bismarck famously said that laws are like sausages: it is better not to see how they are made.
One exception to the Iron Chancellor’s dictum could be the way that the UK House of Lords takes the distasteful raw ingredients of legislation and improves it with new recipes.
That was certainly the case on the first day of the report stage of the Housing and Planning Bill on Monday, which saw the government twice suffer major defeats and also make a significant concession on starter homes.
As the Bill now stands, this ‘cuckoo in the nest’ of affordable housing (as Lord Best memorably called it at the committee stage) has been cut down to size a bit: the discount will be repayable over 20 years rather than eight; and local authorities will have the flexibility to decide on local needs rather than targeting virtually all section 106 contributions as starter homes. The government also accepted another amendment that will exempt rural exceptions sites from the starter home requirement.
Ministers had already moved slightly on the discount period: the Bill originally said that starter home buyers would be able to sell without repaying any of the 20% discount after five years but a consultation proposes extending that to eight years with the discount tapering away over that period.
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