Investing in housing – fairer, cheaper – win/win
Julie Nicholas, the new Policy and Public Affairs Manager at CIH Cymru, argues why greater housing investment is a win/win policy.
In an episode of the brilliant Yes Prime Minister, first broadcast in 1988, Sir Humphrey tells Bernard how the policy of comprehensive education is retained by successive governments. He explains that civil servants use differing arguments in accordance to whichever party is in power – one party is told that it is cheaper, and the other that it is fairer – so that everyone agrees to continue with it (I’ll leave you to surmise which party is which).
Cheaper and fairer is a great example of a win/win outcome for public spending, if only we had a similar argument for housing provision and investment – oh wait…we do!
We know that investment for affordable housing promotes fairness. Since local authorities were first required to provide it under the 1919 Housing Act, the state has intervened to improve access to good quality accommodation for many families who could simply not afford it on the open market. Now however, there is mounting evidence that investment in housing is cheaper too.
This is because the provision of affordable housing results in a plethora of positive results for occupants and added value for public bodies, relating to health and well being, safety and security and educational attainment and employment status. Improved and multiple outcomes for disadvantaged groups resulting from housing investment is an important point to make right now, in the context of the disproportionate effect of the economic downturn facing such groups in Wales, as well as to cuts in public services and grants.
Good quality housing that meets the needs of its occupants has huge health benefits to individuals, family and the state. It reduces hospital admissions, speeds up hospital discharge, improves mental health, decreases fuel poverty and reduces both visits to GPs and respiratory infections. These were just some of the findings found in the Health Impact Studies undertaken by Carmarthenshire Council and Care & Repair Cymru’s Rapid Response Adaptation Programme, both published in 2011.
In terms of the level of economic stimulus resulting from housing investment, Shelter estimates that for every £1 of public investment in new housing there is £3.51 in economic output generated in the UK. The Inform to Involve (i2i) programme reports that 2,581 jobs and training opportunities have been created through the use of their Can Do Toolkit between 2008 and 2011.
Housing construction, repairs and maintenance have a direct impact on economic output, providing an average 3% of GDP over the last decade. Construction alone supports additional jobs through housing-related activity; it is estimated that for every £1 million of new housing output, 12 additional jobs are supported per year and for every £1 invested £2.60 is generated somewhere else in the supply chain.
The benefit of investment in housing development and services results in both stimulus to the economy and savings to the public purse by keeping people in their homes and avoiding the costs associated with homelessness. This is before you take account of any benefits and savings to the community, health, education and criminal justice services that are a direct consequence of meeting housing need and providing housing-related support services.
Recently commissioned Welsh Government research on the additional activities undertaken by housing associations in Wales, found that total expenditure from all sources of community development activities in which housing associations were involved was at least £10,045,996 over the period of a year. This provided positive outcomes in a multitude of areas, including health and well being, digital inclusion, education and training, debt management and securing funding to improve gypsy/traveller sites.
Housing is so important that it features right at the base of Maslow’s hierarchy as a primary physiological need, one which must be met before other needs such as safety, education and employment, or personal growth can be achieve. Finding appropriate shelter is a foundation of human development and self actualisation.
In the context of capital grants being slashed and homelessness increasing, the sector needs to keep telling our politicians that housing investment is a win/win. The mounting evidence demonstrates that it is both fairer and cheaper to invest in housing than not to invest, in both the short-term and the long-run.
Unlike Yes, Prime Minister, the continued reduction of investment in housing is no laughing matter for the people of Wales.
More information
You can find out more about the outcomes and benefits of housing investment in this year’s Welsh Housing Review, which is available to access at the CIH website here: www.cih.org
Welsh housing organisations lead the way
A new report by the Chartered Institute of Housing Cymru has concluded that Welsh housing organisations are amongst the best performing in the UK. Across issues as diverse as developing new affordable housing, improving energy efficiency and working in some of the most socially disadvantaged communities, Wales leads the way.
A wealth of good practice has been identified across the breadth of the sector in Wales and has been compiled in CIH Cymru’s Good Practice Compendium 2012. The Compendium reinforces the reputation Welsh housing organisations have developed for partnership working and innovating in difficult times.
Housing, Regeneration and Heritage Minister Huw Lewis AM said: ‘Welsh organisations are leading the way in developing ingenious cost saving ideas that have saved hundreds of thousands of pounds; and in using their creativity, passion and imagination to find new ways of working, new approaches to financing projects, new efficiencies, new services and new partnership models. The resourcefulness and dedication of Welsh housing organisations has made a genuine, meaningful difference to communities across the whole of Wales.’
The achievements of the sector were recognised at the Welsh Housing Awards 2012 on 23 November. Now in its 6th year, 30 projects and organisations were shortlisted in eight categories which provided the basis for the Good Practice Compendium. In addition, there were three individual categories of award – Community Leader and Housing Heroes in both employed and voluntary capacities.
Special recognition was also given to outgoing WHQ Editor, Tamsin Stirling, who was presented the award for Outstanding Contribution to Housing in Wales. This award recognises an individual who has made a significant contribution to the housing sector over a substantial number of years and is nominated by members of the CIH Cymru NBU Board.
The winners of the 2012 Welsh Housing Awards are set out below. The Good Practice Compendium is available online at www.cih.org
Empowering and involving communities – Sponsored by: Ian Williams
Action for Change project, Rhondda Housing Association
Delivering efficiency & value for money – Sponsored by: Kier Living
Co-location and collaboration in housing, Monmouthshire County Council & Torfaen County Borough Council
Most community focused contractor – Sponsored by: Wales and West Housing
Nationwide Windows Ltd with Cartrefi Cymunedol Gwynedd – Nationwide Windows Ltd, nominated by Cartrefi Cymunedol Gwynedd
Developing and regenerating communities – Sponsored by: Working Links
Lysaght Parc, Linc Cymru in partnership with R&M Williams, Morrisons and Newport Social Enterprise Ltd
Development of the year – Sponsored by: Piccadilly Live
The Single Assessment Centre Project, Cardiff Council in partnership with The Huggard, Hafod Housing Association and Cowlin Construction
Developing skills and capacity – Sponsored by: Insight HR & Management Consultancy
Targeted Recruitment & Training Initiative, Cartrefi Cymunedol Gwynedd
Outstanding leadership by a local authority – Sponsored by: Cardiff Community Housing Association
The Single Assessment Centre Project, Cardiff Council in partnership with The Huggard, Hafod Housing Association and Cowlin Construction
Innovation of the year – Sponsored by: Tai Calon Community Housing
Affordable Carpet Scheme, Newydd Housing Association in partnership with RCT Homes, Hafod Housing Association, Rhondda Housing Association, Cynon Taff Community Housing Group and Greenstream Flooring CIC
Community Leader – Sponsored by: Keepmoat
Diane Bennett, Nantybwch & Waundeg Tenants & Residents Association
Housing Hero (Employed Capacity) – Sponsored by: Regen & Renew
Kerry Jones, North Wales Housing
Housing Hero (Voluntary Capacity) – Sponsored by: Regen & Renew
Fanwell Tandi, Taff Housing Association
Outstanding Contribution to Housing in Wales – Sponsored by: Mi-Space (UK) Ltd
Tamsin Stirling