Dispatches from Community Housing Cymru’s annual conference

Minister’s address

Rebecca Evans’ first engagement as housing and regeneration minister for the Welsh Government was in fact speaking at last year’s CHC conference. In difficult circumstances following Mr Sargeant’s death, she had understandably appeared nervous.

This time around was quite different. “A year ago, I hadn’t yet had the opportunity to meet many of you, but I am pleased to say that over the past 12 months I have had the chance to speak with many of you in this room here today,” she said confidently. “I have learned a great deal from all of those conversations.”

There was very little in the way of policy announcements, save perhaps for a hint that the Welsh Government wants to channel more of its housing investment into low and zero-carbon homes.

A pleasure to speak at the @CHCCymru conference once again to recognise the enormous contribution made by housing associations to individuals and communities, and the need to work collaboratively #Buildingthefuture pic.twitter.com/XF53mQo9OD

— Rebecca Evans (@wgmin_housing)

A pleasure to speak at the @CHCCymru conference once again to recognise the enormous contribution made by housing associations to individuals and communities, and the need to work collaboratively #Buildingthefuture pic.twitter.com/XF53mQo9OD

— Rebecca Evans (@wgmin_housing) November 15, 2018

Instead, the job of Ms Evans’ speech was simple: to reiterate the Welsh Government’s support for the sector and repeat her commitment to finding “long-term” solutions for the country’s housing challenges. She was careful to do both.

It was telling that after her speech the minister took questions from the audience unchaired – and was prepared to admit, for example, that more focus is needed on accessible housing in Wales and that Section 106 does not always deliver enough affordable housing.

Flexibility

It’s also been around 12 months since CHC launched its ‘Housing Horizons’ strategy for the sector – which pledges housing associations in Wales to build 75,000 homes over the next two decades.

Touching on that strategy and the affordable housing review, Mr Ropke spoke of three key themes while opening the conference: flexibility, collaboration and certainty. These largely formed the basis of the whole conference.

‘Flexibility’ refers mainly to two specific areas of policy: grant rates and rent policy.

As Ms Pamment remarked while speaking on day two of the conference, there is “consensus” throughout the sector “that a more flexible grant allocation system is required”. Certainly, that was borne out in responses to the review’s call for evidence, which called for the Welsh Government to think longer term about how it divvies out grant to housing associations. It’s worth remembering too here that exactly how grant is used once received is also under scrutiny, with Ms Pamment reminding delegates that a central purpose of the review is look at “maximising funding to really make a step change” in delivery.

“We are on target to deliver our shared ambition of 20,000 affordable homes in this Assembly. I have no doubt we will deliver.” - @stuart_chc kicking off the first day of #buildingthefuture pic.twitter.com/v1FQjvAKxJ

— Aaron Hill (@AaronCHC)

“We are on target to deliver our shared ambition of 20,000 affordable homes in this Assembly. I have no doubt we will deliver.” - @stuart_chc kicking off the first day of #buildingthefuture pic.twitter.com/v1FQjvAKxJ

— Aaron Hill (@AaronCHC) November 15, 2018

Rent policy is proving more contentious. Here, again, we are talking about the long-term mechanism for setting social housing rents in Wales – not just the level for the next four or five years.

Helga Warren, head of housing funding at the Welsh Government, noted that there appears to be “no consensus on rents yet, at all”, beyond the “unanimous feeling that things do need to change”. Rents are arguably below what they need to be in some areas, while in others – including the most deprived communities such as the Valleys – they could be more affordable to tenants. Chief executives Inside Housing spoke to also talked of anomalies between types of home as a result of imperfect formulae over many years, with one-beds relatively more expensive than four-beds. Some landlords want the flexibility to set their own rents, while others would prefer to leave that responsibility to civil servants.

But, as Ms Pamment reminded the conference, a thorough review “is meant to feel a bit uncomfortable” – calling on the sector to “disrupt, or be disrupted”.

Collaboration

Affordable housebuilding statistics released last month showed a 9% drop last year. The Welsh Government and CHC have both said they are happy that the sector is still on track to meet its target of building 20,000 affordable homes between 2016 and 2021. However, the figures are perhaps a reminder that housing associations’ ambitious aims will not be met without a radical rethink of the way they work – and partnerships will surely be a strong part of this.

In his opening speech, Mr Ropke pointed to the growing trend of strategic partnerships between the government and housing associations in England as a model which could be emulated in Wales.

Devolution deals are one way to focus on greater collaboration between housing associations, too. The question will be how to make the most of city region agreements being developed in North and South Wales. In a session examining just this, Steve Partridge, a director at Savills Housing Consultancy who has worked on city deals in England, maintained that the question for housing associations in Wales will be: “What role are you going to take?” As an example, he cited Greater Manchester, where 10 housing associations have come together to form a development joint venture working alongside the combined authority. “The danger is being left behind,” he warned, “and then someone else comes along and sits down at the table instead”.

Of course, collaboration across sectors is key as well. Delivering a speech to the conference, Dr Andrew Goodall, chief executive of NHS Wales, was unequivocal about his desire to work with social landlords as he attempts to steer the service towards ministers’ aims. “I certainly would like to make an offer to you and I hope that will be reciprocated,” he told delegates.

All of this will surely form a part of the affordable housing review, but Ms Pamment questioned why housing associations in Wales are not doing more to work together already. “There isn’t anything stopping that happening now,” she pointed out.

Certainty

Brexit, in this week of all weeks, was unsurprisingly on many people’s minds. As social landlords operating in some of the poorest communities in Britain, many in the Welsh sector remain very worried about the impact a severe economic shock could have on their tenants. It’s telling that the first session of the conference featured a talk from Trevor Williams, chair of the Institute of Economic Affairs’ shadow monetary policy committee. In very brief summary: the picture looks far from certain.

“If all the threats of a no-deal materialise, housing associations will have a key role as anchor institutions in communities right across Wales to support those in the greatest need,” Mr Ropke told the conference at its start.

Of course, that affordable housing policy review is largely about ensuring certainty for the sector in the years ahead. But there remains a question mark over whether Brexit, and other major factors such as welfare reform, could take things out of the sector’s hands.