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From the archive (30 Nov) – Councils welcome scrapping of CCT
Inside Housing looks back at what was happening in the sector this week 10, 20 and 30 years ago
30 years ago
The condition of England’s housing stock had improved since the start of the 1980s, according to a nationwide survey by the government, but the unemployed and elderly were among groups more likely to be living in poor conditions.
Inside Housing carried details of the long-awaited 1986 English House Condition Survey, with results appearing to be mixed.
The proportion of homes deemed ‘unfit’ had dropped from 5% in 1981 to just 2.9%. However, the report found that 42% of homes in the private rented sector were in poor condition, compared with 10.6% of council properties and 6.6% of housing association homes.
Meanwhile, people aged over 75 were more likely to have homes that were unfit or lacked amenities. More than one in five (22%) of households with unemployed tenants were said to be in poor condition.
20 years ago
Local authorities were applauding the government’s decision to scrap compulsory competitive tendering (CCT) as part of the local government bill.
However, councils were warned that they must generate 2% savings under the new system and be prepared for rigorous inspections.
The move fulfilled a Labour manifesto pledge to abolish CCT for services, including the collection of housing benefit which had proved unpopular with town halls.
The bill, introduced by then-housing minister Hilary Armstrong, would introduce the ‘best value’ principle to procurement in England and Wales.
Ms Armstrong said the new system required savings of 2% from every council, with some promising savings of more than 10%. “It is clear that level of saving is possible,” she added.
The Local Government Association said the best value principle gave them “greater flexibility”, but others expressed concern that the quality of services could suffer.
Consultant Alistair McIntosh said: “I am worried that the only real figures and indicators we have talked about are cost, and what effect this will have on quality in the years ahead.”
The legislation ending councils’ requirement to expose services to competition was set to come into law in January 2000, with best value introduced four months later.
10 years ago
The newly launched Homes and Communities Agency (HCA) promised to step in as a direct developer of new housing if the slowdown in housebuilding continued into the next year.
Sir Bob Kerslake, chief executive of HCA, told Inside Housing the government’s housing investment agency, which replaced the Housing Corporation that year, was “actively considering” setting up joint ventures in which it would be the lead developer.
However, David Lunts, London director at the new body, said that direct development would be “very much” a last resort.
“I don’t want you to think that we’re just about to launch a major new housebuilding company in the public sector, but we certainly do have that possibility,” he said.
Mr Lunts added that direct development would be considered “if things get really sticky next year”.