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The two reports that should set the housing agenda for 2019

Two reports this week are required reading and should be at the heart of the housing debate this year, argues Emma Maier

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Key reports this week from @Shelter and @Networkhomesuk set the housing agenda for 2019, argues @EmmaMaier #ukhousing

"Less than a fifth of tenants feel able to influence decisions about their homes, and 18 months on from Grenfell, patience is wearing thin" writes @EmmaMaier #ukhousing

Reports this week are required reading and should be at the heart of the housing debate this year, argues Emma Maier

As 2019 gets under way, it boasts the usual slew of resolutions, news of career moves and predictions. But two reports in particular set the agenda for the year ahead and beyond.

Shelter’s high-profile, cross-party commission sets out the scale of the housing challenge, calling for 3.1 million new social rented homes over the next two decades.

In other words, government would need to meet its objective of delivering 300,000 homes annually for 20 years, and just over half would need to be social rented.

Meanwhile, a bold and important report by Network Homes provides a maths lesson demonstrating why housing associations aren’t building more social rented homes.

Together, these reports are required reading. Shelter’s ask is based on meeting the needs of the number of households it says will be “failed” over those 20 years, and would cost £10.7bn a year. But its analysis suggests that two-thirds would be clawed back through housing benefit savings and extra tax revenue. It says the programme would pay for itself after 39 years.

The report – which includes key politicians from both main political parties, including from David Cameron’s anti social housing government, alongside Grenfell survivors – comes at an important time.


READ MORE

Reality check: why are housing associations not building more social rented homes?Reality check: why are housing associations not building more social rented homes?
Shelter commission calls for 3.1 million new social homes and new regulatorShelter commission calls for 3.1 million new social homes and new regulator
Current grant system won’t work in a falling marketCurrent grant system won’t work in a falling market

The Letwin Review concluded that with the output of volume house builders constrained and a “virtually unlimited” demand for social housing, government needs a greater mix of tenures – including more social homes – to realise its housebuilding ambitions.

That message has been adopted by the prime minister, who has sought to characterise social landlords as delivery partners, and has put an emphasis on more housing associations moving from reliance on Section 106 to fully fledged development programmes.

Meanwhile, amid Brexit fears, the sector is modelling for a possible housing market slowdown, with some we spoke to stress-testing against a 40% market collapse, and some private developers selling discounted packages of homes to social landlords as a precautionary measure.

Should a slowdown happen, social housing development would be even more vital, but as Paradigm chief Matthew Bailes has observed, government’s approach to grant could incentivise social landlords to do the opposite.

Network Homes has shared the numbers behind its development programme to illustrate why. While build costs have rocketed 42% between the 2008-11 programme and the current programme, grant has decreased from 51% to 12%. Network says that 38% of the homes it built were “genuinely affordable”, but the current model is unsustainable.

Increased costs, particularly of land, are so significant that increasing grant alone isn’t enough, the landlord says. Ministers need to look at both.

Meanwhile, landlords should pay close attention to the remainder of the Shelter report.

As well as its focus on the number of social homes needed, many of the report’s 23 recommendations call for a rebalancing of the relationship between landlords and tenants. Less than a fifth of tenants feel able to influence decisions about their homes, and 18 months on from Grenfell, patience is wearing thin.

Emma Maier, editor, Inside Housing

At a glance: the Shelter commission’s recommendations

Complaints and regulation

  • The government should create a new consumer regulator to protect renters and ensure their voices are heard. This should operate alongside the Regulator of Social Housing, focused on its core economic brief.
  • Social housing residents need better protection. Government should require standards of social housing to be proactively inspected, publicly reported, and strongly enforced in order to hold failing landlords to account.
  • If residents are to be protected and given a voice, there must be clearer standards for social housing providers. The government should direct the regulator to make consumer standards more specific; setting clear, minimum expectations, like timescales for dealing with complaints.
  • All groups of residents (whether recognised by their landlords or not) should be able to refer their concerns directly to the new regulator where they have common concerns they believe are caused by a systemic failing in the landlord’s services.
  • Residents should not have to prove they might be at risk of serious detriment for the regulator to intervene. The government should remove the ‘serious detriment’ test for intervention in complaints about social housing, which is a barrier to proper enforcement of consumer standards.
  • To make it easier for social renters to get redress on individual complaints, barriers to complaining must be removed. The government should remove the democratic filter for referral to the Housing Ombudsman
  • Residents must be given support to complain. The government should extend the Legal Help scheme to cover detailed advice and support to make a referral to the ombudsman or the regulator.

Tenant voice and involvement

  • Tenant panels should be encouraged and taken seriously. The government and Regulator should urgently require landlords to actively support the formation of tenant panels and share good practice on how this should be done.
  • Residents of social housing must have a voice with national, regional, and local government. Government should support establishment of an independent tenants’ voice organisationor tenants’ union, to represent the views of tenants in social housing within national and local government. It should involveas wide a range of tenants as possible.
  • Residents must have a leading voice in major works to existing homes or neighbourhoods. The government’s good practice guidance on estate regeneration should be revisedto reflect this.
  • The government should compile good practice on cooperative and mutual social housing models. Transfers of existing homes to such models should only happen if triggered by tenants, and if voted for by a majority of tenants.

Reforming private renting

  • Government should require all private landlords with over25 homes to register with the new consumer regulator.
  • The new consumer regulator should set consumer standards for all private rented housing.
  • The government should increase resources for local enforcement to tackle rogue landlords and poor conditions, in line with the growth in the number of private rented properties.
  • The government should protect private renters from no-fault eviction. It should end Section 21 by changing the law so permanent tenancies are the legal minimum for all private renters. It should make sure they are protected from eviction by above-market rent increases. The government should explore how to introduce more detailed information about rent levels for different property types at a ward level.

Building more social homes

  • Government should deliver enough social homes over the next 20 years for the 3.1 million households who will be failed by the market, providing both security for those in need, but also a step up for young families trying to get on and save for their future.
  • Government should reform the Land Compensation Act 1961 so that landowners are paid a fair market price for their land, rather than the price it might achieve with planning permission that it does not actually have. It could do this most simply by; amending Section 14 so that no account is taken of any prospective planning permission in land designated by local authorities or city regions for infrastructure including housing; amending Section 17 so that Certificates of appropriate alternative development cease to apply in those areas designated by local authorities or city regions for development.
  • In future assessments of housing need, government should specify the need for social housing.
  • Government should remove the exemptions that mean Section 106 rules do not always apply to new developments and conversions.
  • Government should ensure that any Right to Buy scheme(s) are sustainable, by replacing any social housing sold.
  • Government should embrace modern methods of construction in a way that reduces risk and builds public confidence, using methods that are proven to work over the long term.
  • Government should set a standard to ensure investment in maintaining and improving homes and neighbourhoods over their full lifetime.
  • Anyone involved in delivering social housing should ensure that new social homes are delivered as part of tenure-blind, mixed-community developments. This includes avoiding design that will contribute to a sense of exclusion, e.g.avoiding separate entrances to the same building that divide households based on tenure.

Click here to read the report

In numbers: Network Homes report

£200,000 Network’s average cost to build a home under the 2008-11 funding programme

£285,000 Network’s average cost to build a home under the 2015-18 funding programme

£102,641 average grant per home built in 2008-11

£33,600 average grant per home built in 2011-15

51% - the proportion of cost of each new home covered by grant in 2008-11

12% - the proportion of cost of each new home covered by grant in 2011-15

Source: Network Homes' report Why aren't housing associations building more homes?

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