Policy developments in other parts of the UK
UK
Spending round brings no news on benefits freeze
All departmental budgets will be increased at least in line with inflation in 2020/21, UK chancellor Sajid Javid announced in his spending round in September.
The spending round replaced the multi-year spending review that had been expected and will trigger an extra £600 million in consequential for Wales.
However, the chancellor had nothing to say about the crucial UK-wide housing issue of what will happen to benefits including the Local Housing Allowance.
A four-year freeze in most working age benefits comes to an end in 2020 and there have been widespread calls to reverse it by restoring the links between LHA and rents.
Instead the only announcement on housing benefit in the spending round was an extra £40 million for Discretionary Housing Payments, which are meant to mitigate the impact of cuts including the freeze.
ENGLAND
Tory pledge of right to shared ownership
Tenants in new housing association homes will get a right to shared ownership under plans announced at the Conservative conference by housing secretary Robert Jenrick.
He said that 2.6 million households were in housing association homes and had no direct support into home ownership. While 64 per cent want to buy their own home, only 25 per cent expect to.
‘That is why we want to work with housing associations on a voluntary basis to determine what offer can be made to those in existing housing association properties. For those tenants in new stock, there will be an automatic right to buy a share of their home from as little as 10 per cent, with the ability to increase that share over time, up to full ownership.
‘The Conservative Party is on their side and is proud to extend the dream of home ownership to housing association tenants.’
The housing secretary also announced a green paper on accelerated planning for new homes and an extension of the controversial permitted development regime to upwards extensions and town centre redevelopments.
SCOTLAND
Joint right to housing call
Housing organisations have joined forces to call for housing to be made a human right in Scotland.
A joint paper published to mark Scottish Housing Day in September calls for human rights legislation to be incorporated into Scottish law to ensure that everyone has access to a safe, affordable home. It has the backing of the Chartered Institute of Housing (CIH) Scotland, the Scottish Federation of Housing Associations (SFHA), Shelter Scotland, the Association of Local Authority Chief Housing Officers (ALACHO), the Scottish Association of Landlords (SAL), and the Tenant Participatory Advisory Service Scotland (TPAS)
The paper notes that legislating for human rights in domestic legislation could provide citizens with a means to challenge councils, landlords and the Government if they violate a minimum set of rights and argues that such incorporation would mean that service providers better reflect human rights in their policy deliberations.
Specifically, the paper calls for improving the consistency in what people experience across different types of housing tenures, whether that be social rent, private rent or home ownership and notes that while improvements in availability, affordability and accessibility are needed across all sectors, many housing problems can be linked to the shortage of affordable homes.
The paper was welcomed by Communities Secretary Aileen Campbell MSP, who said: ‘Housing is embedded in so much that we want to achieve, including eradicating poverty and homelessness, tackling the effects of climate change and promoting inclusive growth. Now is the time for us to come together to shape a resilient housing system which addresses these challenges. In July, we published a draft vision for our homes and communities in 2040 and the supporting principles, including the right to an adequate home. Over the coming months, we will gather a wide range of views on how to make this a reality.’
NORTHERN IRELAND
Let welfare mitigation continue, say MPs
Two select committees of MPs called for the UK Government to intervene to extend mitigation of benefit cuts in Northern Ireland for another four years.
The current mitigation scheme was introduced by the last government at Stormont to protect tenants from the benefit cap and bedroom tax just before it collapsed in 2017. However, it expires in March 2020 and as things stand thousands of tenants face cuts to their income and there is still no government in place in Northern Ireland.
The call came in September in a joint report from the Westminster Work and Pensions and Northern Ireland Affairs Committees.
Nigel Mills, Conservative MP for Amber Valley and chair of the committees’ inquiry, said: ‘Welfare claimants in Northern Ireland cannot be left to shoulder the costs of inadequate social housing stock and the devastating impact left behind by the Troubles.
‘Thousands of claimants are relying upon the social security mitigation package – it cannot be allowed to suddenly stop because the corridors and benches of Stormont lie empty.
‘Our joint report today calls for the secretary of state to recognise the gravity of this situation, and to urgently introduce legislation to Westminster to extend the mitigation package beyond March 2020.’
ENGLAND AND WALES
Homeless deaths up 22 per cent
An estimated 726 homeless people died in England and Wales in 2018, the highest total since the Office for National Statistics (ONS) first started collecting the data in 2013.
The total represents an increase of 22 per cent on deaths in 2017 and 55 per cent over the last six years
Some 641 of the deaths in 2018 were among men (88 per cent of the total). The average age at death was 45 for men and 43 for women – compared to 76 and 81 in the general population.
The ONS said that 294 of the deaths in 2018 (40 per cent) were related to drug poisoning and that the number of deaths from this cause was up 55 per cent on 2017.
London (148) and the North West (148) had the highest number of estimated deaths among homeless people. However, Wales saw the biggest increase in 2018 with 34 estimated deaths compared to 13 in 2017 and 26 in 2016.
Every death of a person experiencing homelessness is a tragedy. The figures from last year estimate that 34 people died while experiencing homelessness in Wales. That’s 34 people who are somebody’s sibling, somebody’s parent or child, who passed away before they got the help they needed.
Lindsay Cordery-Bruce, chief executive of The Wallich, said: ‘The statistics show homelessness is not just a winter issue, and people are not only dying because it’s cold. People are dying year-round for a multitude of preventable reasons such as liver and heart diseases, pneumonia, drug- related poisoning and suicide.
‘The causes of these tragic deaths strongly highlight the need for psychologically informed services to supporting vulnerable people and an emphasis on harm reduction, not criminalisation. This is a time for kindness and compassion, not judgement.
‘We also need stronger reporting to ensure we get a full picture of the people behind these statistics and accountability from those who have failed to protect them, for those people who are out on the streets right now.’
WELSH GOVERNMENT
Land Division set to unlock potential of public land
Welsh Government has set up a new division to boost the number of homes built on public land in Wales.
The new Land Division will promote joint working between public sector bodies to unlock the potential of public land for development, finance minister Rebecca Evans told the Senedd. ‘It is tasked to ensure we make the best use of the resources available, and provide a mechanism for sharing expertise so that we can see a concerted public sector response to the shortage of social housing, and to the development of public land for wider policy benefit.’
She described it as ‘a clear demonstration from Government that we are serious about accelerating the development of public sector land’:
‘Extracting the maximum public benefit from our property assets has been part of that process. We have been exploring how we can take a more strategic approach to how our own assets are managed. Part of that work is about redefining how we think of value for money. This includes reflecting on our responsibilities in terms of climate change and safeguarding biodiversity, for example, and considering what the wider benefits could be for local communities across Wales.’
The new division will take over responsibility for a number of Welsh Government-owned sites to promoted wider government priorities and the minister said this would include ‘a strong focus on using those assets to help deliver more social housing in Wales’.
It will also lead on the Welsh Government’s Corporate Asset Management Strategy for land and building assets
The minister said: ‘Whilst the identification of and delivery of land for housing is important, the division is also charged with increasing the pace and scale of the work already being taken forward via “Ystadau Cymru”, which has a remit of “Working together to make the best use of the public estate”. It encourages excellence in
the active management of the Welsh public sector estate through strategic collaboration and adopting a place- based approach to make the best use of our collective resources.’
Boost for Land for Housing scheme
Housing minister Julie James has announced an extra £20 million for a scheme to help housing associations buy land for new homes across Wales.
The Land for Housing scheme provides loan funding to housing associations to enable them to buy land to develop affordable and market housing. The funding is recycled as loans are repaid, so that more land can be purchased and more homes built. The Welsh Government is investing an extra £10 million in 2019/20, together with recycled funds from the repayment of previous loan awards.
The minister announced the new funding on a visit to Pobl’s Herbert Road development in Newport, where 20 homes have already been built on a former industrial site on the banks of the River Usk and a total of 215 will be built over the next four years. She said: ‘As this is a loan scheme, when the money is repaid, we are reinvesting in new projects to deliver far more value than the £52 million invested to-date. It is an excellent example of how we are working with housing associations to build homes and improve the lives of people in Wales.’
Boost for youth homelessness schemes
Projects to tackle homelessness among young people will get £3.4 million in Welsh Government funding, announced housing minister Julie James.
The 26 schemes include
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- Over £88,000 for a Youth Housing First project in Bridgend run by Caer Las and Bridgend County Council;
- Cymdeithas Gofal will receive £79,000 to deliver a Housing First project for young people in Ceredigion;
- Anglesey County Council and Digartref Cyf will receive more than £54,000 to work with the private sector to provide accommodation for young people who are ready move into independent living;
- Dewis will receive over £42,000 to provide housing for young people who are vulnerable because of disability, care leavers, or who have been in the youth justice system in Neath;
- Llamau, Swansea and Rhondda Cynon Taf Councils will receive over £333,000 to develop Housing First for Youth schemes;
- In Caerphilly and Torfaen, Llamau will provide supported lodgings for homeless young people with over £84,000 of funding;
- Over £188,000 for Powys County Council to provide intensive support and Housing First approaches for young people;
- Parc Prison and Pobl will receive more than £109,000 to find accommodation and to provide support for young vulnerable people leaving prison;
The projects are part of the £4.8 million Youth Homelessness Innovation Minister, part of £10 million announced by the former First Minister.
Julie James said: ‘I want to prevent people from ever experiencing homelessness, but where it does occur I want it to be rare, brief and non-recurrent. For young people, insecure housing can mean a future which is bleak, unjust and lacking in opportunity.’
WALES
CHC campaign targets new recruits
Housing associations have launched a recruitment campaign to drive the skills Wales needs to build 75,000 new homes has been launched today.
The aim is to create 150,000 new jobs by 2036 to ensure they have the right skills and jobs in place to help meet those targets.
This is Housing from Community Housing Cymru will celebrate people who work for housing associations in Wales and demonstrate the wide range of career opportunities available in the social housing sector.
Over 11,000 people are employed across 200 different roles in member association, which in 2018 spent over £1 billion within Wales.
Phillipa Knowles, director of resources and organisational development at Community Housing Cymru said: ‘65% of people working in the sector enjoy their jobs because they are making a difference. The sector has a huge range of roles from accountancy to front line work and offers opportunities for progression and skills development.
‘We are urging anyone who is interested in working for a housing association to visit our This is Housing website to find out more.’
For more information visit thisishousing.wales
Cardiff looks to learn from Glasgow and Helsinki
A delegation from Cardiff visited Glasgow and Helsinki in September to find out what they are doing to combat rough sleeping and address the health needs of vulnerable homeless people.
Councillors and council officials joined partners in the health service and third sector to see the two cities’ widely praised work for themselves.
The visits are part of an ongoing review of homelessness services for single people in Cardiff which aims to ensure the best possible support is in place to help individuals rebuild their lives.
Cabinet member for housing and communities Cllr Lynda Thorne said: ‘Our visits were very insightful and we saw examples of good practice and some innovative approaches to addressing complex needs. While neither city has solved the problem, we learned a great deal and were inspired by the work being done there.’
The delegation visited a homelessness assessment centre and a drug crisis centre in Scotland while in Finland, they learned about various programmes tackling homelessness, including Finland’s Housing First approach, securing housing for women and job opportunities for tenants.
Boost for council housing
CIH Cymru is partnering with Welsh Government to increase the scale of council house building.
The plan follows a key recommendation of the independent affordable housing supply in Wales and recent developments including local authorities, including the lifting of the HRA borrowing cap, the proposal to allow local authorities to access social housing grant and the potential of modern methods of construction.
Consultant Simon Inkson has been contracted to undertake a programme of work to support local authorities with a retained housing stock gear up to deliver new council homes at scale and pace.
CIH Cymru director Matt Dicks said: ‘If we are to meet the ambition of ensuring everyone has a safe, affordable place to call home there can be no underestimating the role local authorities must play by using their borrowing powers and their expertise to deliver affordable homes.’
Housing and Local Government Minister Julie James said: ‘With the lifting of the borrowing cap there is a huge opportunity for councils to start building again at pace and scale. There is a lot to do to make this happen, and Simon will work closely with the
11 councils with housing stock to help them rise to the challenge.’
Simon Inkson said: ‘Whilst we are at the very early stages of the project it is clear that a range of challenges face the 11 authorities in gearing up to building in substantial numbers, but I am confident that through shared learning, partnership working and collaboration these challenges can be effectively overcome.’
NCH completes refinancing
Newport City Homes (NCH) successfully completed a major refinancing of its treasury portfolio in August, with support from a range of stakeholders.
The full refinance means NCH has significantly reduced its ongoing funding costs and diversified its sources of funding.
The £95 million private placement from Legal & General Investment Management Real Assets (LGIM Real Assets) was used to repay a syndicated facility between three lenders. The private placement additionally benefits from fit-for- purpose covenants, providing long- term interest rate protection with at a very attractive coupon and average weighted maturity.
Future liquidity is catered for by new five-year and ten-year revolving credit facilities totalling £30 million with attractive terms, resetting the relationships with two long standing banks, Barclays and NatWest.
Hannah Blythyn, deputy minister for housing and local government, visited Haverfordwest to see progress on two old buildings that are being brought back to life with the help of Welsh Government funding. The Grade II listed former Pembroke House Hotel has been converted to create 21 town centre apartments with the help of £300,000 in Town Centre Loans funding while 29 High Street (pictured) will provide three residential units on the upper floors and retail space on the ground floor thanks to £71,000 for Targeted Regeneration Investment and £180,000 of Town Centre Loans.
PUBLICATIONS 10 TO LOOK OUT FOR
1) The well-being of young people
Wales Audit Office, September 2019
www.audit.wales/publication/well-being-of-young-people
2) Rethinking allocations
Chartered Institute of Housing, September 2019
www.cih.org/resources/Rethinking allocations.pdf
3) The experience and impact of stigma of living in social housing – Views of tenants across England, 2019
Benefit to Society, September 2019
benefittosociety.co.uk/time-to-see-the-person/
4) Bleak houses – Tackling the crisis of family homelessness in England
Children’s Commissioner, August 2019
www.childrenscommissioner.gov.uk/publication/bleak-houses/
5) Tackling the UK housing crisis, is supply the answer?
UK Collaborative Centre for Housing Evidence, Tony Blair Institute, August 2019
housingevidence.ac.uk/publications/tackling-the-uk-housing-crisis-is-supply-the-answer
6) Beyond Generation Rent – understanding the aspirations of private renters aged 35-54
UK Collaborative Centre for Housing Evidence, August 2019
housingevidence.ac.uk/publications/beyond-generation-rent/
7) From the frontline – Universal Credit and the broken housing safety net
Shelter, August 2019
8) Housing that works – can employers help solve the housing crisis
Centre for Social Justice, August 2019
9) Briefing: how many people need a socially rented home?
National Housing Federation, September 2019
10) Scottish Housing Day report: housing as a human right
CIH Scotland, SFHA, Shelter Scotland, ALACHO, SAL, TPAS Scotland, September 2019