Time to abandon the debased language of ‘affordability’

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This is courtesy of Red Brick blog. One of the many powerful contributions to the London Labour Housing Conference on October 25 came from Madeleine Davis of the Peabody Ex-Crown Tenants Campaign.

In her speech, she first outlined what happened to the rents of tenants who transferred from the Crown Estate to Peabody Trust in 2011. She then drew some general conclusions about housing costs for people living in ‘intermediate’ housing, and concluded by questioning the current use of the concept of affordability, which has become debased.

The campaign can be followed on Twitter @norentrises

By Madeleine Davis


I represent a rather specific group of tenants, those whose homes were bought by the Peabody Trust in 2011 from the Crown Estate (the Queen’s property company). We live in around 1200 homes in four different areas of London – Victoria Park (boroughs of Hackney and Tower Hamlets), Millbank (Westminster), Cumberland Market near Regents Park (Camden) and Lee Green in Lewisham.

Peabody bought all four estates for a knockdown price of around £140 million, after a very widely publicised tenant campaign with cross-party political support forced the Crown Estate to drop its asking price from £250m and impose various conditions on the sale. More

Why is the Council frightened of an open discussion on the town’s housing crisis?

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Swindon Tenants Campaign Group condemns Swindon Council’s refusal hold an open and public debate on the acute housing crisis that the town faces. In March 2013 it said it would carry out a review of its Housing Strategy by the end of that year. It committed to organising a conference as part of the consultation process. However,

  • After dithering for a year it is rushing through an 8 week travesty of a consultation of which hardly anybody is aware.
  • It has reneged on its commitment to organise a conference where the issues could be publicly discussed.
  • The consultation is not even on its website list of current consultations.
  • It is trying to avoid a discussion and vote at a full Council meeting by handing power of decision to the Lead Member. Apparently one person alone will have the final say on what the Housing Strategy for the town will be.

The Council’s own Housing Advisory Forum passed a resolution which said that Housing Strategy should be determined by debate and vote at the full Council meeting and not by a single individual, whoever they were. More

Coalition Housing failure presented as a ‘success’

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According to Brandon Lewis, the latest Housing Minister, the new statistics for “affordable homes” is a “clear sign” of how the government’s long-term economic plan is working. Since April 2010 when the coalition government was cobbled together, 204,000 “affordable homes” have been provided. This is presented as if the total was the work of the coalition government. What he neglects to mention is that at least 60,000 of this figure was built with funding from the previous government’s ‘National Affordable Housing Programme 2008-11′. When the coalition’s “Affordable Homes Programme” kicked in the number dropped by around 18,000 per year for the last two years.

Even worse, the number of ‘social rent’ homes built has dropped by around two thirds since 2009-10, to only 10,840 in 2013-14. Even when you add the ill-named “affordable rent” (up to 80% of market rents) then we find that last year there were only 30,580 ‘social homes’ built, still below the numbers for 2009-10 and 2010-11. The stupidity of “affordable rent” is that it drives up the housing benefit bill. A recent Financial Times investigation discovered that 75% of people paying AR were on housing benefit, even higher than the 66% in ‘social housing’. More

Housing Advisory Forum opposes one person decision on Housing Strategy

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The Housing Advisory Forum is the body which consults with tenants on housing issues in Swindon. Last week’s agenda included discussion on the Council’s Housing Strategy.   The Cabinet decided to review their housing strategy 18 months ago. This review should have taken place towards the end of 2013. (Swindon Tenants Campaign Group put in a submission to the consultation with a number of practical proposals . You can read it here: “Tackling Swindon’s Housing Crisis[1]) Yet a document was not presented to the Cabinet until this September.

In March 2013 the Council committed to organising a conference on the housing situation as part of the consultation. However, it has failed to carry out that commitment. We were told at the HAF that there would be ‘a consultation day’, though we don’t know what form it will take nor when it will be held. There is only a month left until the end of the consultation. So instead of an open debate we now have a rushed discussion with a ‘consultation’ supposed to take place in 8 weeks: Monday 15th September to Monday 10th November. More

We need more Council homes with Council rents, not less

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This is a letter to the Swindon Advertiser

Given the fact that there have been hardly any Councils homes built over the last few decades the fanfare over “biggest build for 30 years”  is spurious. Under the New Labour government’s National Affordable Homes Programme there were, I think, only 42 built, though these did at least charge Council rents. The 100 under this government’s “Affordable Homes” programme might sound like an improvement on very little. In fact it’s less than it appears. The bid that has been accepted will not provide an additional 100 homes, but only 67, since 33 flats at Sussex Square will be demolished. So it doesn’t even add up to the 33 homes per year that Mark Dempsey suggested.

David Renard told the Adver: “It shows we are committed to investing in our housing stock and providing sustainable homes for people who need them.” It shows nothing of the sort. To put it in context, the Council lost 67 homes through ‘right to buy’ in just one year, 2013-14. So a programme which produces an additional 67 homes over three years will not even keep pace with the loss of homes through ‘right to buy’. More

Why does Salford Labour Council support the coalition government’s housing policy?

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Download a PDF of this article here salfordtransfer

I’ve just been sent, via the Defend Council Housing campaign, a copy of Salford Council’s “Formal Application for Stock Transfer”; its appeal to the coalition government for permission to ‘transfer’ its Council housing stock. It’s a long and detailed document so these are just some first observations.

A Labour Council proposing to ‘transfer’ its stock to a Housing Association is nothing new. Under the New Labour government there was a policy of transferring 200,000 homes a year. There were financial inducements (including the writing off of housing debt) which were used to pressure the tenants into voting for ‘transfer’. What’s different about this proposal is that a Labour Council is appealing to a Tory-Liberal coalition government for permission to ‘transfer’, and asking for it to write off the housing debt in order to facilitate it. As we all of the ballots tenants are being told stay with the Council and get nothing, vote for ‘transfer’ and you’ll get new windows and bathrooms. 

Salford Council is proposing to ‘transfer’ 85% of the Council housing stock to Salix Homes, the ALMO (Arms Length Management Organisation) which manages their stock. Salix would be transformed into a Private Registered Provider. The rest of the stock is covered by a Private Finance Initiative instituted under the New Labour government. More

Swindon Council ends ‘secure tenancies’ for new tenants

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Despite the opposition of all the tenant groups in Swindon and the Housing Advisory Forum (HAF), the Council is introducing ‘fixed term’ or ‘flexible’ tenancies for new tenants, starting some time in the autumn. (See Swindon Tenants Campaign Group response to the Council’s proposed changes to it’s Housing Allocations Policy ). Although existing tenants are unaffected, if ‘flexible tenancies’ are maintained over time this would eventually mean the end of ‘secure tenancies’. At the rate of 500 new tenants a year half of the tenant body would be on ‘flexible tenancies’ in 10 years.

The Council is proposing five year tenancies for single people or couples without children and ten years for those with children. A review will take place nine months before the end of the ‘fixed term’, to decide whether to offer a new tenancy or end it, forcing them to leave. Originally the Council was proposing an introductory tenancy of one year, something which has previously been applied to all new tenants. However, they have now proposed to introduce them only for tenants ‘at risk’. Apparently, for some reason, this included anybody under 25! Probably this was because they only receive the lower rate of Job Seekers Allowance, £54 a week. We opposed this on the grounds that every tenant or none should have an introductory tenancy. If it was left to the discretion of officers then there is a danger of injustice based on subjective assessments. The HAF passed a resolution calling for introductory tenancies for all tenants on ‘flexible tenancies’. We await to see whether the Lead Member will agree or not. More

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