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Rishi Sunak’s summer statement laid out plans to protect jobs and the economy, but his promise that “no one will be left without hope” is currently ringing hollow for renters. We urgently need a longer-term plan to protect them, writes Martin Hilditch
As he stood to deliver his summer statement on Wednesday, chancellor Rishi Sunak promised that “although hardship lies ahead, no one will be left without hope”.
Hope’s a fine thing to have – it’s fuelled the social housing sector for years. And parts of the economy did get an injection of sunshine with Wednesday’s announcements about stamp duty cuts and the £2bn Green Homes Grant.
But, for the nation’s renters, hope is running thin. Mr Sunak might have laid out a strategy for jobs this week, but the government certainly doesn’t have a clear one for social and private renters beyond 23 August.
That – as if anyone needs a reminder – is the date on which repossession proceedings, which have been stopped since the beginning of the pandemic, can start again.
Regular readers will know this is an issue I have written about before on these pages. I make no apology for doing so again, because it is such a massive deal and an area that you will be reading about in many more quarters in months to come unless decisive action is taken.
There are both short and long-term solutions needed. Potentially, as things stand, this may involve some kind of market rescue package for landlords to protect tenants and the wider economy. Certainly, it should involve making sure that the Local Housing Allowance reflects real market rents so people are able to afford properties in their area, as the Housing, Communities and Local Government Committee has recommended.
And, of course, if we have an eye on both short and long-term solutions, then investment in social housing is also essential. This week Sir John Armitt, chair of the National Infrastructure Commission, added his voice to calls for investment in social housing in an interview with The Times.
It follows hot on the heels of a wide coalition of 60 partners, including Chambers of Commerce and the CPRE, calling for investment in social housing as part of the Homes at the Heart campaign. This may sound like a broken record, but there’s a reason you’re hearing it so much.
This week’s announcement might have been a plan for jobs, but it was not a plan for people for whom the most “hardship lies ahead” – those who are already struggling to pay their rent and those who will do so when the furlough scheme ends. At the moment it’s a house of cards waiting to tumble.
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