Radical change needed to cope with spending cuts

During a sombre opening address at the institute’s annual conference, Howard Farrand said housing providers will have to face up to considerable uncertainty and a prolonged period of austerity.

He said: ‘It is going to be an incredibly challenging and difficult time for all of us.

‘It is clear that public funding to local councils will be reduced, that investment in regeneration and new affordable housing will be cut and that the benefit bill will be targeted.

‘But actually my biggest fear is we are reaching a time that equates social renting  with broken Britain, and when we regard deprived communities as a price worth paying for tackling the budget deficit.’

Mr Farrand said the housing system is ‘not working’ and requires radical rethinking.

He said: ‘Without rethinking, what will we recover to?

‘An average deposit of £30,000 and an average age of 37 to buy a first home, to build less than half the new homes we need?

‘To over 1.8 million households looking for affordable housing?

‘To 60 per cent of households unable to rent or buy in the communities they live? It saddens me that this is seen as recovery.’

Mr Farrand also appealed to local councillors to not always listen to the ‘loudest, best organised residents, who don’t always represent the community’.

He said: ‘Localism does not mean local councils doing everything themselves. In housing we have seen the advantages of housing associations, other companies, community provides and statutory agencies working together. This needs to be strengthened under effective leadership and accountability, not diminished.’

Mr Farrand said the CIH, National Housing Federation, and the National Federation of ALMOS will put together a joint submission to the government ahead of the autumn spending review, calling for housing to be treated as priority.

He said: ‘Housing can also be part of economic recovery.

‘Building an extra 100,000 homes a year, will create almost 500,000 jobs and £6 billion of tax receipts.

‘It will have a sizeable impact on the benefits bill, and retrofitting can stimulate manufacturing in places where traditional industries have declined.

‘Our sector can support economic growth, reduce government debt by billions and be a part a big role in tackling broken Britain.’

The CIH is also asking for conference delegates submissions for a housing pact to be submitted to housing minister Grant Shapps on Thursday.

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