Housing crisis – planning is not the key problem

Leave a comment

The Conservative government is now threatening supposedly ‘nimby’ local authorities with central government action if they don’t “build enough homes in their area”. Failure to meet the targets will, apparently, mean that councils will lose control of the right to decide where new houses are placed in their area. This is patently absurd since councils cannot control the number of homes built in their area, especially when they are not building any themselves. The whip hand in relation to development lies with the developers and builders who control the pace of building when they have planning permission. There has been ample experience in Swindon of central government overturning rejection of planning applications on the grounds that the council is not achieving their house building target. Yet it is the developers/builders who are controlling the pace of construction essentially to maximise their profits. Read on below or download a PDF here plannignetc More


“Borrowing to build” is no solution to the council housing shortage


Is lifting the “borrowing cap” for council Housing Revenue Accounts the solution for large scale new council house building?

Councils in England are building very few council homes. In the seven years from 2010-17 only 10,840 homes were built. This compares with 18,220 demolitions and 60,567 sold through Right to Buy (RTB). In the six years to 2016 council housing stock in England declined by 174,000. One suggested remedy for the shortage of council housing has been the proposal that councils should be allowed to “borrow to build”. The Local Government Association, Shadow Housing Minister John Healey, and others have recently repeated the call for the borrowing cap, set for each council in 2012, to either be eliminated or at least raised. John Healey suggested that this would enable councils to build “tens of thousands” of new council homes. What his evidence is for this we don’t know.

It’s our contention that only central government grant towards the cost of house building can provide the resources necessary to build new council housing on a scale sufficient to begin to tackle the housing shortage. Proposing that councils increase their debt takes no account of the financial crisis being faced by local authority Housing Revenue Accounts (HRAs). Read on below or download a PDF here  borrowing

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

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?


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?


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

Older Entries

%d bloggers like this: