ao link
Twitter
Facebook
Linked In
Twitter
Facebook
Linked In

You are viewing 1 of your 1 free articles

Willing helpers

The government needs to call on the social housing sector if it is serious about solving the housing crisis, says Geeta Nanda

Linked InTwitterFacebookeCard

Following a summer of quite unprecedented political upheaval, we now have a different prime minister in Downing Street and a cabinet awash with new ministers. This week, in her first cabinet meeting since the summer recess, Theresa May placed social reform and equality of opportunity second on the list of priorities for her government after Brexit negotiations. Across the social housing sector there are quiet hopes that we’ll see a change in the government’s attitude towards housing associations. Let’s hope so, as while the political landscape may have shifted, one thing that hasn’t changed is the housing crisis and the acute need for more homes of all tenures.

“It is not the job of these giant house builders to solve the housing crisis.”

Every government has a new housing target when they come into power. The last one – a million homes for ownership built over five years by the private sector – isn’t ticking all the boxes. The UK’s second-largest house builder, Persimmon, has just posted increased sales and higher numbers of visitors to its housing sites in the last six months despite the turbulence (or not) of Brexit. What this really shows us is that the government’s dedication and sympathy towards homeownership is not in doubt – Persimmon’s sales are boosted significantly by government subsidy in the form of Help to Buy, which has kept the market moving swiftly through Brexit whilst the second-hand market falls. In fact, we have to go right back to before the housing crash to see the sorts of numbers the government wants to achieve, despite Help to Buy.

But it is not the job of these giant house builders to solve the housing crisis – their main duty is making a profit and paying dividends to their shareholders. The steady build-out of their landbanks paired with modest inflation will continue to provide stable returns while there is a chronic shortage of properties. There’s no rush to meet government targets.

Homeownership for all may be a noble goal but it is no longer realistic. In Europe and elsewhere, the rental sector is both established and successful and this is something we must strive for here. At the weekend, I went to visit my nephew who is living at The Collective in Willesden. It’s an innovative take on private rent, attracting graduates who are used to halls of residence and shared flats, and are looking for a cheap, no-fuss living option that’s also well-maintained and full of like-minded people. It’s a brilliant private enterprise and its popularity shows there’s a real appetite for secure and trustworthy landlords in this part of the sector, something we’ve already seen in spade loads at Thames Valley Housing in take-up for our Fizzy Living private rented flats.

Housing associations have got something incredibly valuable to offer here – established landlords with years of relevant experience and skills. Government should look to us as those not only able but willing to provide these much needed homes.

Demand side measures and private enterprise take the headlines and keep the market buoyant, and there’s no denying that housing associations are a small part of the development picture and always have been against the private sector’s output. But they have a key role to play in improving the situation.

Recent news that over £9bn of taxpayers’ money has been paid to private landlords in housing benefit – double what was paid 10 years ago – underlines the problem of shortages in social housing and should serve as a wake-up call. It may sound like a tired refrain of the left but it highlights that more and more people are being forced into situations where they are paying rents they can barely afford because of limited access to social housing. It’s also a massive strain on the country’s coffers.

By restoring government support and investment, social housing and housing associations can and should be a part of the solution to the housing crisis, while offering affordable rents to people who otherwise may become the victims of an erratic market.

But we aren’t alone in developing social housing – to really crack the housing crisis we need a blended approach, with housing associations and councils playing their part. For the last five years, councils have only built 2,000 to 3,000 homes a year. Self-financing meant that councils should have been able to increase their output but inflation and government-led rent reductions put an end to that. Any stimulus package in the waiting should boost not only housing association but council housebuilding, as well as a re-think of rent policy. Allow us to have the freedom to manage our rents within an envelope – it will free up resources to develop new homes and also address the ridiculous rent disparities in place.

Councils and housing associations can build, and we can build a lot more quickly. We can increase economic growth and provide homes that are within the reach of those struggling to put a roof over their heads. We have had the glut of luxury homes, now let’s provide homes to improve lives.

Of course supporting the market and homeownership has its place, but the balance needs adjusting. The new government is looking for willing helpers and we have an offer to make.

Geeta Nanda, chief executive, Thames Valley Housing Association


READ MORE

Associations warned over house price exposure post-BrexitAssociations warned over house price exposure post-Brexit
City Hall moves to reassure sector after Brexit voteCity Hall moves to reassure sector after Brexit vote
Contracts may need to be altered post BrexitContracts may need to be altered post Brexit
Devolution concerns amid Brexit turmoilDevolution concerns amid Brexit turmoil
HCA confident of targets despite Brexit voteHCA confident of targets despite Brexit vote

Linked InTwitterFacebookeCard
Add New Comment
You must be logged in to comment.