Responding to supply and demand
Neil Howell identifies the key emerging themes in housing over the next 12 months
Anyone working in the public sector over the last few years will be keenly aware of the extreme pressures that local authorities are facing to deliver quality services with ever decreasing budgets and reducing resources. This pressure is no more acute than within the housing sector, where demand has continued to increase, whilst supply has failed to keep pace.
Housing Leadership Cymru (HLC) is fully aware of these pressures and has identified the need to increase supply as one of three emerging themes within housing over the next 12 months:
• Increasing supply
• Quality and improvement
• Mitigating the impact of welfare benefit reform.
The question facing us now is how we can effectively respond to these challenges? Waiting lists for social housing are continuing to grow as more people struggle to access suitable affordable accommodation, even though many applicants are unlikely to ever acquire a social tenancy, or if they do, will have to wait a significantly long time. Meeting the needs of this group will be a major challenge over the next number of years, as growing demand puts greater pressure on local authorities and our partners to increase the supply of affordable accommodation.
If local housing authorities are to effectively respond to these challenges, they must have a better understanding of the needs of local people. Demographics are changing and as people live longer their housing needs inevitably change too. Strategic housing authorities play a pivotal role in planning for future housing needs, but this can only be achieved if they possess comprehensive research and robust data and evidence to support the understanding of housing need projections. It is no surprise therefore, that Carl Sargeant has recently emphasised the importance of the Local Market Assessment process to which local authorities will need to respond positively.
One of the most informative housing data sources available to local authorities is the common housing register, which identifies the needs of those applicants
who are unable to access housing in the private sector. Anecdotal evidence has shown that applicants on housing registers are sometimes able to afford and are eligible for alternative housing tenures. But the limited availability and range of housing products coupled with a lack of consumer knowledge often amounts to applications to join the register. The importance of having a better understanding of the needs of applicants, whilst also making applicants aware of their alternative housing options, will be essential if we are going to better meet future housing needs.
The introduction of the housing solutions model will provide an ideal opportunity for local authorities to advise applicants of the range of housing options that may be available to them also, in turn aiding the development of a greater understanding of the needs of housing applicants. Ensuring that these solutions are available, however, will be more difficult. Social housing grant is continually being reduced, limiting the ability of local authorities to deliver more affordable housing, whilst the implementation of the welfare reforms is putting greater pressure on many households struggling to afford their current accommodation, the bedroom tax being a prime example.
The private rented sector will need to play a major role in meeting growing housing demand. HLC recognises that local authorities must be more proactive and innovative in seeking new housing solutions, working with a wider range of partners and landlords to incentivise and develop the sector. The sector is sometimes viewed unfavourably, so working to promote it as a viable alternative to social housing will be essential. The recommendations contained in the Renting Homes white paper to simplify the sector are welcomed, but more work will need to be done by local authorities to progress and improve. Having a good understanding of local housing markets will also be essential if authorities are to successfully intervene in the wider housing market and develop new opportunities for people with a housing need.
The wasted resource of empty properties has been well documented in recent years, and greater support is now being made available to owners through the Welsh Government Houses into Homes scheme. Empty properties offer an ideal opportunity to make use of existing resources to deliver more housing and alleviate demand. Local authorities have made a great start on a collaborative, regional basis to access this valuable resource but need to continue to work closely with empty property owners, letting agents and other key partners.
In addition to making innovative use of existing housing, it is also important to carefully plan future housing to meet emerging demands. The effects of the bedroom tax and changing demographics have resulted in the emergence of households that require smaller accommodation. This is especially true for the under-35s who are no longer entitled to the single room rate and will therefore be heavily reliant on shared accommodation options to meet their needs. To ensure that these links are being made and to effectively intervene in the wider housing markets, HLC recognises the importance of a strong strategic housing authority that takes an active role in shaping housing locally. HLC will be sharing good practice and supporting improvement over the next 12 months.
Robin Staines, the former chair of AWCHOP, emphasised the importance of good leadership, nurturing talent and taking risks. HLC will build upon this, by being focussed and proactive in our approaches, and by being creating and encouraging innovation at every opportunity alongside an emphasis in promoting partnership working. This approach is essential if we are to be successful in addressing housing need in the coming years. Delivering viable solutions cannot be achieved in isolation. A whole housing market approach must be adopted collectively, because as one sector in housing changes, the effects and impact will be felt by the others.
Neil Howell is chair of Housing Leadership Cymru. Follow Housing Leadership Cymru on twitter @housingleaders