The government needs to do more to help the ‘squeezed middle’

This is most acute in London and the South East, where access to social housing, particularly local authority housing, is restricted; those owed a statutory homeless duty are often discharged into the private rented sector, and others whose needs are not met by the local housing market do not make it onto the list.

“The dual impact of restricted access to social housing and homeownership means many more households are now reliant on open market rental housing.”

Alongside those who may have traditionally received the security of social housing tenancy, there are those who, were they born 20 years earlier, would have purchased a home. Many of us, who were able to access homeownership before prices escalated beyond our means and mortgage restrictions further impacted access to homeownership, must be grateful for those extra few years of age!

The dual impact of restricted access to social housing and homeownership means many more households are now reliant on open market rental housing and are finding that this is not providing the homes they need at a price they can afford. In areas such as London – where property prices have doubled in the past 15 years, rents have increased by 40% and average wage inflation has been half of that – the impact is particularly acute.

As more and more young people are unable to access homeownership or social housing, the number in our society whose housing needs are not met by the public sector or open market will continue to grow. As millennials establish their careers and start families, it becomes abundantly clear that housing in London can no longer meet their expectations.

The attraction of living elsewhere, either abroad or in other parts of the UK, will leave a once vibrant capital city as a hollow shell of its former self. The answer, as we all know and frequently hear, is to build more of the right sort of housing in the locations where demand exists.

Across London there are many voices calling for this to include rental housing with rents which reflect local earnings. However, the impact is limited when nationally the main political parties remain entrenched in their traditional stances of homeownership and social housing.

While they acknowledge that the housing crisis is impacting on the “squeezed middle”, as yet we are still to see a decisive policy intervention to address the needs of this growing sector of society, particularly in London.

The one-size-fits-all policy no longer works across a country where housing markets differ significantly in different locations. What we need is an analysis of what each area needs and how government support can be focused on each locality in order to deliver that – devolution of housing!

It is not for Dolphin Living to determine what each locality needs. However, I can comment (and frequently do) on central London, where it is our fundamental objective to provide rental accommodation which is genuinely affordable to working Londoners on modest incomes.

“The one-size-fits-all policy no longer works across a country where housing markets differ significantly in different locations.”

For Dolphin Living the economic and social benefits of the delivery of this type of affordable housing are overwhelmingly clear. Not only in terms of meeting a defined need for those unable to afford to rent or buy at market rates, but also to provide opportunities for those currently in social housing to access alternative homes, should their circumstances allow, and promote greater churn in existing social stock.

Our commitment to an area includes working with each local authority and a key ask from every local authority is that we prioritise existing social housing tenants and hidden households who can afford our rents and want to move to a new home. The economics of this type of rental housing also add up, as without subsidy we can deliver significantly more affordable homes at intermediate rent than at social rents.

If the Conservatives and Labour are serious about not only delivering new homes across the country, but also of dealing effectively with local issues, then we need to see much more innovative thinking about supporting the delivery of homes.

The demand and the opportunity are there; all we need is delivery that considers the housing need of each locality and the different and relevant types of sub-market housing that would meet this need. I urge politicians to consider this, if for no reason other than that the political dividends from doing so would be immense.

Olivia Harris, chief executive, Dolphin Living