Council housing sham

Leave a comment

This is a letter published in the Swindon Advertiser today.

In the lead up to the Great Leader’s conference speech we were told to expect, in the words of government Minister Damian Green, nothing less than “the rebirth of council housing”. An excited media was predicting “under the PM’s housing plan, ministers will join forces with housing associations to build hundreds of thousands of new homes” (The Sun).

However, instead of the hundreds of thousands we discovered that May’s “plan” might add up to 25,000 “affordable homes” over 5 years. That is, 5,000 a year. At that rate it would only take 240 years to produce enough homes for the 1.2 million households on the waiting lists, always assuming nobody else was added to the list in the meantime. More

Advertisements

Council Housing “rebirth”: the child is dead on delivery

1 Comment

This is an intial response to May’s announcement on housing, as we await more detail.

On the morning of Teresa May’s speech government Minister Damian Green announced that there would be a “rebirth of council housing”. Yet when she spluttered her way through the sppech it was clear that the child was sadly dead on delivery.

The money available for “affordable housing” was only £2 billion, compared to £10 billion for Help To Buy. According to a Tory Party press release the £2 billion “could” be used to produce 25,000 homes over 5 years. Even assuming these were all council homes 5,000 is a puny amount which would make little difference to the housing crisis. It would not replace those homes lost to RTB. Sales are running at more than 12,000 a year in England. Between 2010-2017 57,677 were sold off. In addition, from 2010-2016 there were 20,300 council homes demolished and only just over 10,000 built. Since 2010 there has been a decline in the number of council homes by 174,000. More

What is Labour’s council housing policy?

1 Comment

One of the expectations of Labour supporters is that a Labour government with Jeremy Corbyn as leader would build council housing on a large scale once again. From the start of his first leadership election campaign up to just before the General Election Jeremy spoke of building 100,000 council homes a year. In April the Guardian reported that his “top priority” was to build more council housing and introduce tougher regulation in the private rented sector. However, Labour’s policy as expressed in its Manifesto was far different from Jeremy’s statements.

The draft version of the Manifesto which was leaked to the media spoke of a commitment to building 100,000 council and housing association homes, with no indication of the proportion for each. Yet even this figure, which diluted the council housing component, did not survive in the published document. It was transformed into 100,000 “affordable homes” for “rent and sale” by the end of the Parliament; i.e. by year five. There was no indication of how this would break down. Would it, for instance, be 50,000 of each? The Manifesto does say that Labour will “begin the biggest council housing programme for at least 30 years”. However, we checked how many were built then. In England it was only 16,000.  Read on below or download a PDF here labourschcommitment More

How many council homes is Labour committed to building?

1 Comment

Jeremy Corbyn has previously said that Labour would build 100,000 council homes a year. In the draft of the Manifesto which was leaked to the media the 100,000 was described as council and housing association homes. This figure did not survive in the published document. It was transformed into 100,000 “affordable homes” for “rent and sale”. What Labour would do was counter-posed to what the 1945 Labour government did.

The post-war Labour government built long-term affordable homes to rent, the next Labour government will build affordable homes to rent and buy. ”

In what proportions would the rent and sale be? 50,000 of each? Neither the Manifesto nor the Mini-Housing Manifesto which supplemented it indicated how the 100,000 would be broken down. In order to clarify what Labour’s position is we emailed John Healey and asked him “How many council homes are you committed to build. The 100,000 by the end of the Parliament is for ‘rent and sale’. In what proportions?” More

No solution to the housing crisis without council house building

Leave a comment

Swindon Tenants Campaign Group Media Release February 13th 2017

No solution to the housing crisis without council house building

The government’s Housing White Paper, “Fixing our broken housing market”, is an implicit recognition of the failure of 6 years of coalition and Tory government housing policy. Talk of a “home owning democracy” has been abandoned. However, the problem will not be resolved by attempting to make ‘the market work for everyone’. As the Financial Times recently recognised in an Editorial, it is against the interests of the big builders to build ‘affordable homes’ for rent.

The fact is that private developers, left to their own devices, will not build enough to meet demand, especially when the greatest need is for affordable rented housing in urban areas. It is not in their interest to do so, since the result would be lower house prices and land values, eroding their profitability”. More

Why Labour should write-off the fictional Council housing ‘debt’

3 Comments

In order to stop the rise in Housing Benefit payments the government has imposed on local authorities which still own their Council housing stock, a 1% cut in tenants’ rent, for four years, starting in April of this year. By this and other policies Council housing is being seriously under-funded. In order to understand the extent of the problem and what to do about it it’s necessary to appreciate how Council housing is financed under the system known as ‘self-financing’.

‘Self-financing’

In April 2012 a new Council Housing finance system, ‘self-financing’, was introduced. The system had been designed by the New Labour government just before it lost the 2010 General Election and was implemented by the coalition government. Housing Minister Grant Shapps said that the new system would “give Councils the resources they need to manage their own housing stock for the longer term – correcting decades of under-funding”. In fact under-funding was not corrected but built into the new system (see Appendix). Most Councils did have more money than they had under the previous system because what was known as a ‘negative subsidy’ was ended. In 2005 the Audit Commission reported that 82% of local authorities were subject to ‘negative subsidy’, meaning they received no government subsidy and had to make a payment to central government from their rent income. According to the Audit Commission at the time this comprised some £630 million a year. Whilst some of this was redistributed to other Councils, in the four years from 2008 tenants’ rents subsidised the Treasury to the tune of almost £1.5 billion1. It was predicted that if the old system, the ‘housing subsidy system’, continued, then eventually all local authorities would suffer from ‘negative subsidy’, largely as a result of year on year rent increases above the level of inflation.

(Read on below or download a PDF here chdebtwriteoff )
More

What Future for Council Housing?

1 Comment

What future for Council Housing?

Council housing and the housing crisis

A book by Martin Wicks

Everybody knows there is a housing crisis. However, it is usually written about by academics or professionals who work in the housing sector. Tenant voices are rarely heard. What Future for Council Housing? is written by a Council tenant and reflects the work and ideas of Swindon Tenants Campaign Group which has successfully resisted the sell-off of our homes; managed to secure more money for their maintenance; and challenged the dominant policies responsible for the crisis. (Download a PDF here whatfuture or read on below) More

Older Entries

%d bloggers like this: