POLICY DEVELOPMENTS IN OTHER PARTS OF THE UK
UK
Victorious Tories to end benefit freeze
Boris Johnson’s Conservatives won a crushing election victory on the back of gains in the North and Midlands of England and in Wales.
The result begs the question of the extent to which housing will be part of the ‘infrastructure revolution’ and rebalancing of investment promised in the Tory manifesto.
And big questions remain about how, and if, the Westminster will replace regional development funding that currently comes from Brussels.
But at a UK level the biggest implications of the result for housing will be in what happens about social security and welfare reform.
The result means that the roll-out of universal credit will continue, although the Tory manifesto promised to ‘do more to make sure’ that it ‘works for the most vulnerable’.
The manifesto also pledged to end the benefit freeze, although that was due to happen in April 2020 in any case, ‘while making sure it pays to work more hours’.
At a housing hustings event during the campaign, a junior housing minister said that the end of the freeze would apply to local housing allowance – although it remains to be seen what this will mean for the shortfalls against rents that have built up over the last decade.
ENGLAND
New government’s housing agenda takes shape
Home ownership seems set to return to the top of the government’s housing agenda in England in the wake of the Conservative victory.
The Tory manifesto argued that ‘home ownership is one of the most fundamental Conservative values’ and that young people need to know that it is within their reach.
Specific home owner policies include a scheme to sell discounted homes to local buyers and encouragement for long-term fixed rate mortgages to cut the cost of deposits.
However, the manifesto also appeared to downgrade the government’s target of 300,000 new homes a year in England by the mid-2020s by placing it alongside the previous (and lower) one of ‘at least a million more homes’ over the next parliament. This impression was confirmed in a post-election Queen’s Speech briefing that did not mention the 300,000 target.
For other tenures, the government will ‘commit to renewing’ England’s Affordable Homes Programme to deliver ‘hundreds of thousands of new homes’ although the detail remains to be seen.
Most eye-catchingly, it pledged to end rough sleeping by the end of the next parliament by expanding the Rough Sleeping Initiative and Housing First and working to bring together local services.
The Queen’s Speech also promised:
- A Renters’ Reform Bill that will abolish Section 21 no-fault evictions and introduce a new lifetime deposit for tenants whole also offering landlords more rights to gain possession and quicker court procedures.
- A Building Safety Bill and Fire Safety Bill to implement post-Grenfell reforms
- A Social Housing White Paper to follow up on Green Paper proposals for better regulation and greater redress for tenants.
SCOTLAND
Healthy boost for housebuilding
Completions of new homes in Scotland rose to their highest level since 2008 in the year to June 2019.
Official statistics show 21,403 homes
were completed over the 12 months and an increase of 18 per cent on 2018.
Housing starts rose 22 per cent over the same period to reach 23,700, including over 11,000 affordable homes.
Housing Minister Kevin Stewart said: ‘From private to social housing, it is encouraging that both new build starts and completions have increased this year, providing more people with a warm, safe place they can call home. The increase points to the strength of Scotland’s new build housing sector.
‘We shall continue to push towards our ambitious target of delivering 50,000 affordable homes by 2021.’
NORTHERN IRELAND
Housing stress rises to record high
The number of families in ‘housing stress’ has doubled in Northern Ireland over the last 16 years.
Figures released by the Department for Communities show there were more than 26,000 households on the social waiting list who meet the definition of housing stress with 30 or more selection points. This means they are likely to be living in unsuitable or unsafe accommodation.
The figure is up 9 per cent on a year ago and double the level in 2002/03 when the data series began.
Meanwhile, as talks continued on the formation of a new devolved government at Stormont, the Northern Ireland Federation of Housing Associations warned that ‘time is running out’ for action on the extension of welfare mitigations and the reversal of debt reclassification.
Chief executive Ben Collins appealed to the Northern Ireland secretary for action and warned that levels of housing stress and homelessness would rise unless both were done by March.
WELSH GOVERNMENT
Rents to rise by CPI+1 over next five years
Social housing rents in Wales will rise by the rate of inflation plus 1 per cent for the next five years under a deal announced by housing minister Julie James.
The long-term deal is in line with the recommendation of the independent review of affordable housing supply and it means that average rates will rise by 2.7 per cent in April 2020 (1 per cent plus the 1.7 per cent rise in CPI inflation in September 2019).
The rent settlement comes with some strings attached and some flexibilities included. A letter to housing associations and local authorities says that:
- CPI+1 per cent is the maximum allowable increase but Welsh Government says it should not be regarded as an automatic uplift – landlords should take affordability into account.
- To allow landlords to restructure rents where needed, rents for individual tenants can be reduced, frozen or rise by up to an additional £2 per week on top of CPI+1 per cent on condition that total rent income does not rise by more than CPI+1 per cent
- If CPI falls outside the range 0 per cent to 3 per cent, the minister can make a determination on rents for that year only
- Social landlords should inform Welsh Government where they have concerns about financial viability or their ability to meet their obligations to tenants and lenders.
- As an intrinsic part of the policy, landlords will be expected to set a rent and service charge policy that ensures that social housing remains affordable for current and future tenants – and an assessment of cost efficiencies, value for money and affordability should be discussed at board, cabinet or council.
The letter to social landlords also sets out a wider agreement with representative organisations linked to the rent settlement. Under this social landlords will:
- Strengthen their approaches designed to minimise all evictions and eliminate evictions into homelessness.
- Carry out a standardised tenant satisfaction survey and provide the data for publication on a
central website to assist tenants in scrutinising and comparing landlord performance. First results will be available in April 2021 and bi- annually after that - Develop an aspiration that DQR 2020 space standards will apply across tenure on sites which attract Welsh Government funding, on a phased basis from 2021
- Work towards an aspiration that all new build housing, regardless of tenure, achieves energy efficiency standards of no less than EPC A on sites which attract any Welsh Government funding from April 2021.
Stuart Ropke, chief executive of Community Housing Cymru said: ‘We are pleased that the minister has today responded to the call from housing associations and set out a long term and sustainable rent settlement.
This certainty will allow housing associations in Wales to work with tenants to set rents that are genuinely affordable and ensure housing associations can continue to build and invest in the high quality homes Wales so desperately needs.’
David Wilton, chief executive of TPAS Cymru, welcomed the settlement as providing ‘some greater certainty to the sector and to some extent tenants’ but added: ‘Whilst we believe that using tenant satisfaction surveys will be beneficial for scrutiny purposes, tenants require greater transparency and engagement in wider strategic decision-making.
‘In particular, if tenants are to be charged at a rate higher than current CPI levels, then tenants must also be afforded a much stronger voice in the decision-making process to determine what value for money they can expect when paying these higher rates.’
Matt Dicks, director of CIH Cymru, said: ‘The greater certainty with this settlement must now be accompanied by the same certainty regarding social housing grant levels and a long-term outlook on the support available for organisations in improving the quality of existing homes and achieving higher quality standards for homes in the future.’
Campaign targets hidden homelessness
Welsh Government has launched a major new campaign to raise awareness that ‘Homelessness doesn’t always live on the streets’.
The campaign to tackle hidden homelessness is targeted at young people who may be at risk of or already experiencing homelessness and also advises the public on what to do
if they are concerned about someone they know. Research suggests people overwhelmingly connect homelessness only with rough sleeping – but that this is not the case for most young people experiencing homelessness.
The campaign points out that even if someone has a roof over their head, they can still be homeless. They could be sofa surfing at a friend’s place, or staying somewhere temporarily like a hostel, night shelter or bed and breakfast, or living in very poor conditions or somewhere that is not suitable for them or their family.
Those experiencing hidden homelessness are also more likely to be at risk of exploitation – and especially young people.
The campaign aims to ensure that young people get the help and support they need as soon as possible, preventing homelessness from happening in the first place.
Housing minister Julie James said:
‘We know young people often don’t know where to seek advice and support – so that’s why we’re launching this
new campaign. So if you think you’re experiencing hidden homelessness or you’re at risk of it then get help now. It’s never too late or too early to get help.’
Welsh Government funds Shelter Cymru to provide independent housing advice and support. The service also links people to partner organisations who can provide support services based on the needs of individuals.
Shelter Cymru director Jon Puzey said: ‘It’s fantastic that the Welsh Government is taking this so seriously and helping us to reach more young people. With this joint campaign we are making sure that young people know that Shelter Cymru is here to help them.’
For advice and support people can call Shelter Cymru on 08000 495 495 or find out more at www.sheltercymru.org.uk/hiddenhomelessness
Draft budget boost for housing
Welsh Government says it is allocating an extra £175 million of capital funding for housing in 2020/21, taking the total invested over this Assembly term to £2 billlion.
The total in the Draft Budget announced in December
is made up of grant, earmarked funds and loans made via financial transactions and means investment next year will be £400m. Ministers say they are on track to meet the target of 20,000 new affordable homes in this Assembly term.
Of this, the top four elements totalling £65m appear to be grant funding whole the bottom four totalling £113.4m are loans or financial transactions.
Analysis by Community Housing Cymru (CHC)) estimates that funding for Social Housing Grant will rise from £188.2m in the 2019/20 Supplementary Budget to £223.2m in 2020/21 – an increase of 19 per cent. Regeneration capital funding will rise by 81 per cent from £28.6m to £51.8m.
Stuart Ropke, chief executive of CHC, said: ‘The Welsh Government has rightly prioritised solving the housing crisis in Wales and today’s announcement of an additional £133m for social housing is a huge boost to our work to build the genuinely affordable homes that Wales desperately needs.’
Katie Dalton, director of Cymorth Cymru, welcomed the increase in funding for social housing but said it was disappointing that Welsh Government had not increased the Housing Support Grant for 2020/21: ‘Homelessness and housing support services are at a tipping point and we urge the Welsh Government to rethink its allocation and increase the Housing Support Grant in its final budget in February.’
‘Due regard’ to right to housing will be in Bill
Housing minister Julie James confirmed that the right to adequate housing would feature as a ‘due regard’ duty in the Local Government and Elections (Wales) Bill.
Speaking in the Senedd in November, she confirmed what she had already said in committee and said the duty would be written into the statutory guidance which will be given to local authorities if the bill becomes law.
Though a ‘due regard’ duty does not include an enforceable right to adequate housing for individuals, it will require local authorities to demonstrate that they have thought about the right as a central part of their policy and decision-making processes, a process that can be subject to court challenge. The aim of the ‘due regard’ duty is to drive positive change and focus more resource on housing.
Conservative shadow housing minister David Melding expressed his disappointment that the right to adequate housing will not be written into Welsh law and argued that this was the opportunity to do it in this Assembly.
CIH Cymru, Tai Pawb, and Shelter Cymru, together with Dr Simon Hoffman of Swansea University, have been campaigning for full incorporation of the right and earlier this year published a feasibility study.
In a joint statement, all four organisations welcomed the minister’s announcement and said: ‘While not as effective as full incorporation, adopting a “due regard” approach has the potential to drive positive change and act as a catalyst for further resources – hopefully leading to better outcomes for people at risk of or experiencing homelessness.
‘We look forward to monitoring the progress of the bill and to participating in evidence stages.’
Public consultation on the Bill ran until January 3.
Welsh Government could block poor developments
Housing developments in Wales that are not of a high quality or designed to help create strong, sustainable communities could be blocked in future, housing minister Julie James told a planning conference in December.
Speaking at a Royal Town Planning Institute (RTPI) Cymru conference in Cardiff to mark the first anniversary of Welsh Government’s Planning Policy Wales, she set out how it plans to turn its approach to place-making into reality.
Place-making, which is now at the heart of national planning policy in Wales, ensures planning decisions consider all aspects of well-being and deliver new developments which are sustainable and provides for the needs of people.
Examples of include developments that:
- Ensure the right homes are in the right places for the people that need them the most
- Have built-in walking and cycling routes, helping to promote alternatives to car use
- Are powered and heated by renewable energy generation and are energy efficient
- Contain open green spaces
- Minimise waste and thinking smartly about the circular economy to reduce costs and the carbon footprint.
Welsh Government is considering what changes can be made to enable ministers to be sighted on applications which are not embracing this new approach.
And the financial assistance it provides through mechanisms such as housing grants, such as Help to Buy and regeneration funding could all be used to incentivise good practice.
Consultation papers
- Building regulations part L review – gov.wales/building- regulations-part-l-review-0 – Responses by March 12
PUBLICATIONS 10 TO LOOK OUT FOR
1) A home for all: Understanding migrant homelessness in Great Britain
Crisis, November 2019
2) Assessing the potential benefits of living in co-operative and/or community led housing
Wales Co-operative Centre, November 2019
3) Anchor Towns
Bevan Foundation, November 2019
www.bevanfoundation.org/publications/anchor-towns/
4) Understanding landlords’ approaches to tenant participation
UK Collaborative Centre for Housing Evidence, December 2019
5) Housing insecurity, homelessness and populism: Evidence from the UK
University of Warwick, December 2019
6) Valuing more than money: Social value and the housing sector
Institute for Public Policy Research, November 2019
www.ippr.org/research/publications/valuing-more-than-money
7) The impact of Universal Credit – Examining the risk of debt and hardship among social housing residents
Peabody, October 2019
www.peabody.org.uk/media/13678/universal_credit_report-lr.pdf
8) Housebuilding: a century of innovation
NHBC Foundation, October 2019
www.nhbcfoundation.org/publication/house-building-a-century-of-innovation/
9) Rethinking Intergenerational Housing
Matter Architecture, November 2019
www.matterarchitecture.uk/research/intergenerational-housing/
10) Inequality Street – Housing and the 2019 general election
Resolution Foundation, November 2019
www.resolutionfoundation.org/publications/inequality-street/
WALES
Tai Tarian to be carbon neutral by 2030
Tai Tarian has committed to be carbon neutral by 2030 with an action plan including energy performance measures
for its 9,000 homes, converting to electric transport and alternative commuting measures, and tree-planting.
The organisation started extensive tree-planting and a bio-diversity programme in November with 420 trees gifted by The Woodland Trust to be planted in the Afan Valley.
Tai Tarian will join forces with pupils from Croeserw Primary School to plant trees at Parc Croeserw, a nature trail which has just been created by the housing provider.
Chief executive Linda Whittaker said: ‘Planting trees is one of the most powerful ways that we can reduce the impact
of climate change, something we are hugely committed to driving forward.’
Actions to be taken by 2030 include:
- Investing extensively in homes, improving the energy performance wherever possible
- Using emerging technology to make homes and commercial buildings smarter
- Continuing making renewable energy in new homes cost-effective
- Introducing an extensive tree planting and bio-diversity programme
- Gradually changing the vehicle fleet to electric power
- Encouraging employees to make less use of cars, by car sharing, cycling or other solutions.
- Working more flexibly, either from home or from community hubs, reducing overall travel distances
- Sharing learning to help colleagues and customers adapt their behaviour.
Grwp Cynefin has appointed four new members to join its 10-strong management board. The board directs the affairs of the association, which manages 4,800 properties across north and mid Wales. Pictured left to right are Geraint George, who who spent more than 25 years at Gwynedd Council and has also held a position on the board of Canllaw; Jane Lewis, who has worked in finance in the private sector for more than 20 years; Mike Corfield, who has worked in the social housing sector for more than 30 years, and has a background in governance; and Tony Jones, who has been involved in social housing for 15 years.