The age of austerity will test our metal
Following last month’s Budget, the age of austerity is indeed upon us. Housing cuts have been introduced amidst a ‘social housing crunch’ created by escalating demand - doubling of waiting list numbers to 4.5 million people - and stalling supply - 450,000 fewer social homes than a decade ago.
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Yet the Budget can only exacerbate the crunch, because building fewer affordable homes is a false economy. The annual costs to the NHS alone of cold, damp, overcrowded and dangerous homes are estimated by the National Housing Federation to be £2.5 billion.
It is now clear that the brunt of the cuts will be borne by societal groups in which tenants figure disproportionately. That’s why we need to develop a strategic approach to supporting tenants and their communities over the lifetime of this Parliament. I propose that this strategy should fall into two parts.
First, a comprehensive green retrofit in social housing is vital, thereby tackling climate change and reducing tenants’ fuel bills. Keeping household costs low provides a cushion for tenants since rents are subsidised (even under the latest housing benefit proposals), while fuel is not. On the back of the retrofit, to which we should devote more resources, local contractors and supply chains should receive more support to help create more jobs and training.
Second, there needs to be a step change in social and community investment to provide tenants and their communities with opportunities for employment, to embed localised procurement, to provide business and social enterprise support services, and to establish community investment banks. Social landlords may also have to become local lenders of last resort to ameliorate financial inclusion.
Overall, the age of austerity requires social landlords to develop social entrepreneurial solutions to housing, environmental and economic needs in already disadvantaged communities as we did in the 1920s, 1960s, 1980s and 1990s.
Mike Pritty, chair, Matrix Housing Partnership