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‘If there ever was a time for a political leader to set out a programme of large-scale public investment this is it’
Those of us hoping for a strong signal of intent on social housing may have been disappointed by yesterday’s speech from Boris Johnson. Hopes for more muscular backing of the sector now turn towards the chancellor’s autumn Spending Review, writes the CIH’s James Prestwich
During his time as mayor of London, Boris Johnson had a reputation for being attracted to grand projects. If ever there was a time for a political leader to set out a programme of large-scale public investment this is it. The impact of COVID-19 on the UK economy is predicted to be the most severe of any country in the G7. Recent monthly figures from the Office for National Statistics highlighted the largest slump in a single month since records began, the economy plummeting by 20.4% in April alone.
As the country begins to emerge from the stasis of lockdown the prime minister travelled to Dudley, one of the scenes of his most recent electoral triumph, to set out his vision for the country’s recovery from the pandemic. It’s a ‘new deal’ that he himself described as ‘Rooseveltian’ – a promise to build, build, build to kick-start the dormant economy.
Such language had piqued the interest of those of us who believe social housing should form a key foundation of the nation’s economic recovery. Anticipation had been further fuelled by the housing minister’s recent remarks about the centrality of housing to the recovery.
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Yet, even with the prime minister’s love of big projects, it was perhaps unrealistic to expect social housing to appear front and centre. The headlines will be gobbled up by talk of large-scale investment in infrastructure, new road and rail schemes, or upgrades to schools and hospitals.
But in the week when the Chartered Institute of Housing (CIH), National Housing Federation, National Federation of ALMOs, Association of Retained Council Housing and Crisis came together to launch our Homes at the Heart campaign, calling for widespread investment in new and existing social homes, and Shelter and Savills published research revealing the impact of COVID-19 would result in 80,000 fewer homes being built this year, those of us hoping for a strong signal of intent from Mr Johnson on the role social housing can play in the recovery may have been disappointed.
Despite initial confusion over the length and scale of the Affordable Homes Programme (AHP), the prime minister appears to have essentially re-announced the £2bn earmarked by Theresa May back in 2018 for long-term partnerships with housing associations, and detail on the AHP from the March Budget. In real terms, this means continuing the existing AHP spending level of just under £2bn annually over the next five years. The tenure mix is yet to be revealed but an emphasis on social rent must be its focus. Anyone hoping for more muscular backing of the social sector will now turn their hopes towards the chancellor’s autumn Spending Review.
Much of the housing content focused on planning, a policy paper on the existing system in the pipeline and a general move towards deregulation of the planning process to encourage residential conversions of business and retail units. While this may offer some hope for high streets blighted by empty units, there is a real risk that permitted development threatens the provision of affordable housing through a lack of Section 106 agreements and the absorption effect of conversions delaying the delivery of planned purpose-built developments. At the CIH, we have recently signed an open-letter from the Housing Made for Everyone (HoME) coalition to the housing minster calling for caution on the relaxation of planning requirements due to the impact on accessibility.
There is also plentiful evidence of poor standards in conversions from offices and little chance to impose the new Future Homes Standard. This leaves significant questions marks over the government’s commitment to quality and decarbonisation.
The use of public sector land for housebuilding is not a panacea but can play an important role, providing delivery of social housing is prioritised and government departments do not seek to dispose of it simply to the highest bidder.
The country faces one of the greatest challenges in its peacetime history as it seeks to manage and recover from the pandemic. Government will need to be bold and invest to ensure a nationwide recovery and go further than the steps outlined by the prime minister. As we head towards an autumn Spending Review, the CIH as part of the Homes at the Heart campaign will continue to make the case for further investment in social housing to fuel the recovery; creating jobs, driving growth and providing high quality homes that people can afford. That sounds like a ‘new deal’ we can all sign up to.
James Prestwich, director of policy and external affairs, Chartered Institute of Housing
