LOCAL Community Housing: LOCAL Community Housing: THE alternative to national PUBLIC THE alternative to national PUBLIC

housinghousing

Councillor Stephen GreenhalghLeader, Hammersmith and

Fulham Council

Co-Author of ‘Principles for Social Housing Reform’

There is a clear acknowledgement that what is There is a clear acknowledgement that what is required is not yet more tinkering around the edges”required is not yet more tinkering around the edges”

Julie Cowans and Professor Duncan Maclennan, Julie Cowans and Professor Duncan Maclennan, Visions for Social Housing: International Perspectives, Visions for Social Housing: International Perspectives,

2008 2008

Where we are todayWhere we are today

Social Social outcomesoutcomes

National National controlcontrol

Hills Report found appalling social outcomes created by concentration of deprivation in areas with high percentages of social housing

Allocations policy set nationally with limited local discretion Rents and capital expenditure levels controlled through ministerial dictat, Housing

Revenue Account (“HRA”) and Decent Homes programme Development controlled by Homes and Communities Agency (“HCA”) and grant regime Local Housing Allowance distorting local markets

Poor Poor managementmanagement

Inconsistent tenure High costs Cave review

Increasing problemsIncreasing problems

““Many council Many council estates have estates have

become what they become what they were fighting in were fighting in the first place – the first place – social ghettos”social ghettos”

Sir Robin WalesSir Robin Wales

Just 23% of new housing tenants work and do not claim housing benefit (Smith Institute, Rethinking Social Housing)

The proportion of social tenants in employment has fallen since 1981 from 47% to 32% and those in full-time employment from 43% to 22% (Hills Report)

Social rented housing has become a destination rather than a launch pad. 82% had been in social tenure ten years before (Hills Report)

Increasing national controlIncreasing national control

““Almost every Almost every aspect of housing aspect of housing policy in the UK is policy in the UK is

dominated by dominated by central planning and central planning and socialist methods of socialist methods of resource allocation”resource allocation”

Philip Booth, Institute Philip Booth, Institute of Economic Affairsof Economic Affairs

This is a national rent-setting policy that largely determines the income of social landlords. It sets target rents that social landlords have to achieve now by 2025

Sets a rent by reference to local average income and household size, not the local market. This is driving rents up and, in one case, led to double the market rent being paid for a large family home

Reliant on grant routed through a national quango, the Homes and Communities Agency

Rent Rent restructuringrestructuring

Social Social housing housing

developmentdevelopment

Local Local Housing Housing

AllowanceAllowance

Where we could be in 5 yearsWhere we could be in 5 years

Breaking down concentrations of deprivation and improving social

outcomes - with significant savings to the taxpayer

Rents set locally within a [sub]-regional social rent “cap”

Councils and RSLs setting own rents based on ability to pay

Local letting priorities based on:

addressing imbalance across neighbourhoods

– e.g. ratio of adults to children

work

local connection

caring for local family

Moving Moving towards towards mixed mixed

communities communities

Local Local management management of Community of Community

HousingHousing

Where we could be in 5 years (cont.)Where we could be in 5 years (cont.)

Based on “real world” asset values and consistent tenure structures Transparency for landlords, tenants and leaseholders Lower costs = higher value

Referenced to household income and local rents

Institutional co-investment Releasing asset value = increased ability to borrow locally Focus on shared equity through Right to Buy Part Declining national grant regime

Better Better managementmanagement

Local Local management management of Housing of Housing

BenefitBenefit

More More developmentdevelopment

How to get thereHow to get there

Set Social Rent “Cap” on [sub] regional basis11

Abolish the HRA subsidy system22

Extend local lettings to 50% of all vacancies33

Allow rent setting in Community Housing by ability to pay44

Change LHA regime to one based on ability to pay and local rents55

Establish Right to Buy Part66

Moving from national social housing to local Moving from national social housing to local community housingcommunity housing

National public housing system

Income Management  People   Development   

National rent regime National subsidy system (HRA)

National priorities for allocation

National capital programme (Decent Homes)

   

RSLs- Shared ownership and social rent

Inconsistent tenure 85% national and 15% local lettings

National building programme (HCA)

Local community housing    

Income Management  People Development   

Set social cap nationally Abolish HRA and allow “freedom to manage”  

50% national and 50% local lettings

Councils and RSLs can develop by borrowing against

asset value   

Set actual rent levels locally Consistent tenure : Assured tenancies or ASTs

Local lettings criteria:- imbalances across neighbourhoods- local connection- caring for local family- work

Future income from:- sales of infill plots

- Right to Buy Part sales- reduced M&M costs