Bedtime stories

It seems remarkable that with less than 40 days to go until we start taxing them we still don’t really know for certain what a bedroom is.

So it’s not surprising that the move by Knowsley Housing Trust to reclassify 566 of its two- and three-bed homes as one- and two-bed has attracted so much attention. Chief executive Bob Taylor told Inside Housing that a stock review showed some homes are currently classified as having more bedrooms than they actually have, because tenants are not using the extra rooms as bedrooms and were therefore paying too much rent.

Read the rest of this post on Inside Edge, my blog for Inside Housing


Worst fears

So the government has finally admitted the potentially devastating consequences of welfare reform in a cumulative impact assessment.

Before anyone starts to think that Iain Duncan Smith has undergone a dramatic change of heart, I should add that I am of course taking about the Welsh government, not the UK one.

The second stage review of the impact of welfare reform in Wales is accompanied by an analysis by the Institute for Fiscal Studies (IFS) of the effects of welfare reform on labour supply in Wales.

Read the rest of this post on Inside Edge, my blog for Inside Housing


One-way street

Repossessions are at their lowest and loans to first-time buyers are at their highest since 2007. Has the housing market finally turned the corner?

That’s certainly one interpretation of stats released by the Council of Mortgage Lenders (CML) this week showing big improvements since the year the credit crunch hit.

On Tuesday it revealed that 216,200 first-time buyers became homeowners in 2012. That was a 12 per cent rise on 2011 and it’s the first time since 2007 that the annual total has exceeded 200,000.

Read the rest of this post on Inside Edge, my blog for Inside Housing


Capital crisis

The scale of the housing crisis facing London is hitting home with both Londoners and their political leaders.

In an opinion poll in the Evening Standard published today, half of people in the city say they fear being driven out of their neighbourhood by the cost of housing and six out of ten say there is a crisis in their area.

At one end of the housing scale, soaring demand from global investors is threatening to push house prices even further out of reach of ordinary Londoners. According to a report yesterday from the Home Builders Federation, it now takes the average first-time buyer 24 years to raise a deposit in London.

Read the rest of this post on Inside Edge, my blog for Inside Housing


Under pressure

The government’s arguments for the bedroom tax are continuing to unravel under intense media and political scrutiny. Will the pressure finally tell?

For the first time in years that I can remember, a social housing issue led prime minister’s questions yesterday as Labour leader Ed Miliband used the plight of people facing the tax to put David Cameron on the spot.

Read the rest of this post on Inside Edge, my blog for Inside Housing


Accounting for the new self-employed

A report out today from the ONS confirms the big increase in self-employment in the UK seen since the start of the Global Financial Crisis.

As a result of the recessions that triggered, the number of employees fell by 434,000 between 2008 and 2012. In complete contrast, the number of self-employed people rose by 367,000 over the same period, with 219,000 of that coming between 2011 and 2012.

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Source: ONS

These are remarkable figures, especially when you consider, as the FT data blog points out, that self-employment has actually fallen in most other countries in the OECD.

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Growing pains

If you drive a car, you need a license, an MOT and insurance. Why should it be any different to rent out a house?

That point – made by Jacky Peacock of the National Private Tenants Organisation at a Communities and Local Government committee hearing yesterday – got me thinking about the whole issue of licensing and the private rented sector.

Read the rest of this post on Inside Edge, my blog for Inside Housing


Changing the culture

As a new report from Shelter shows that private rents continue to rise, politicians are starting to accept the need for reform.

The charity published figures this morning showing that rents rose by an average of 2.8 per cent in the last 12 months. That’s faster than the 1.7 per cent increase in house prices in 2012 revealed by the Land Registry this week and comes at a time when wages are at a standstill.

Read the rest of this post on Inside Edge, my blog for Inside Housing


The state of self-employment

The conjunction of the deadline for self-assessment tax returns and the start of my 21st year as a freelance has got me thinking about self-employment.

Like most people I’ve found there are good and bad sides to working (at least in theory) for yourself. The feeling of not being tied to one particular employer and of (at least in theory) being free to do anything you want are both potentially liberating. Not being dependent on one organisation for your living should mean you’re better off than its employees in a downturn (at least in theory). You can offset your (legitimate, please note, HMRC) expenses against income and if you are more high-powered than me you can even found your own personal service company and employ yourself. A combination of self-employment and technology has enabled me to live and work in a part of the country where reasonably paid full-time jobs are a rarity.

On the downside, if you work mainly at home self-employment can leave you isolated from the sort of workplace life that everyone takes for granted. If you work mainly inside workplaces a thick skin is sometimes required when you have to watch complete idiots take charge (in my case thankfully not for several years, I hasten to add!). If you’re doing well, your leisure time can get squeezed. If you’re doing badly, it will be spent worrying that someone will pay you on time to pay the bills. You have few legal rights, though I’ve only been let down badly a couple of times and the rights of employees are steadily disappearing too. Your debts may well be higher than those of an employee. And if, say, a government comes along determined to cut public spending in the middle of a recession you can find sources of income rapidly drying up because the freelancers are the easiest people to cut. Thanks, George!

But enough about me: what about the state of self-employment as a whole?

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Going spare

With just 62 days left the bedroom tax has gone mainstream in parliament and the national press.

The last week alone has seen three different debates in the Commons, a DWP questions in which it was the main issue, and stories in the Sun and Mail as well as, more predictably, the GuardianDaily Record and Mirror.

Meanwhile virtually every local paper in the UK seems to be finding families affected by the tax that few of their readers would consider to have a ‘spare room’. From Bute to Torfaen and from King’s Lynn to Northampton to Hartlepool the bedroom tax is big news. In Hull, a family of seven in a four-bed house say they face losing £20 a week because of the rules on how old children have to be to get their own room.

But will any of it make any difference to what happens from April 1?

Read the rest of this post on Inside Edge, my blog for Inside Housing