POLICY DEVELOPMENTS FROM OTHER PARTS OF THE UK
UK
UN expert calls for \’bedroom tax\’ suspension
An expert adviser to the United Nations has called for an immediate suspension to the \’bedroom tax\’ and a full re-evaluation of its impact on vulnerable people.
UN special rapporteur on adequate housing Raquel Rolnik visited cities in England, Scotland and Northern Ireland and met officials from the Welsh Government in London during a two-week visit to the UK in August and September.
She was assessing the UK Government\’s record under international human rights law giving it an obligation to \’take steps to ensure and sustain the progressive realisation of the right to adequate housing\’.
In her preliminary findings she said: \’It is not clear that every effort has been made to protect the most vulnerable from the impacts of retrogression, indeed much of the testimony I heard suggests they are bearing the brunt. Housing deprivation is worsening in the United Kingdom.\’
She highlighted the impact of fiscal austerity measures in particular. \’The so-called bedroom tax is possibly the most visible of the measures. In only a few months of its implementation the serious impacts on very vulnerable people have already been felt and the fear of future impacts are a source of great stress and anxiety.\’
She also recommended that the UK government should put in place a system of regulation for the private rented sector and commit to significantly increasing the social housing stock.
The UK Government responded furiously to the findings and Conservative Party chairman Grant Shapps has complained to the UN secretary general asking for an apology.
The end of mission statement from the UJN special rapporteur is available here. The full report is due in Spring 2014.
England
Government acts on housebuilding \’red tape\’
Dozens of \’unnecessary and confusing\’ measures imposed on housebuilders by councils and the English government will be scrapped in a bid to boost output.
Communities minister Don Foster said a \’patchwork\’ of more than 100 different standards would be reduced to 10 while 1,500 pages of guidance would be reduced to 80. Essential safety and accessibility rules would be protected.
The housing standards review is the result of the \’red tape challenge\’ launched in 2011 to support departments in reducing regulations.
However, the government is also inviting views on minimum space and access standards that would allow councils to seek bigger homes to meet local needs and is proposing measures to end \’bin blight\’ in new developments.
Don Foster said: \’At a time when we are working closely with British business to create jobs and build a stronger economy it\’s essential the government plays its part by taking off the bureaucratic handbrake that holds back house building and adds unnecessary cost.\’
Scotland
Extra money for affordable homes and \’bedroom tax\’ mitigation
The Scottish Government has announced extra capital funding for housing plus another £20 million in discretionary housing payments to help people hit by the bedroom tax.
Finance secretary John Swinney said the two-year budget would drive investment of £1.35 billion in affordable housing over four years. It would also provide at least £68 million in each of the next two years to mitigate the impact of UK welfare cuts plus extra money this year to limit the impact of the bedroom tax.
He said: \’This Government will take immediate steps to deal with the iniquitous effect of the bedroom tax. I will provide £20 million to fund Shelter Scotland\’s proposal to help those struggling most with the cost of the tax. This funding will enable local authorities to increase discretionary housing payments to meet some of the implications of the bedroom tax.\’
According to CIH Scotland, the plans mean a provisional budget of £390 million for affordable housing supply in 2015/16 and a further addition to the current three-year (2012/13 to 2014/15) housing supply budget to bring it to £970 million.
Head of policy and public affairs David Bookbinder said: \’In difficult financial times, it\’s great news that the outline 15/16 budget of £390 million not only consolidates the numerous increases we\’ve seen to the existing budget, but also represents an increase of around 21 per cent on the average annual spend of £323 million within the current programme.\’
Northern Ireland
New strategy targets empty homes
Housing minister Nelson McCausland has launched a new plan to bring empty homes back into use across Northern Ireland.
The strategy covers the five years to 2018 and includes the establishment of a new website and a dedicated team within the Northern Ireland Housing Executive plus close partnership working with other organsiations including Land and Property Services and local authorties.
There are an estimated 32,000 empty homes across Northern Ireland. Further initiatives in the next few months could include transfer and funding schemes and a list of pilot properties in areas of housing need.
Nelson McCausland said: \’I want to maximise all opportunities to meet housing need, reduce blight and tackle anti-social behaviour. I see the rejuvenation of empty homes as an important means of achieving this.\’
WELSH GOVERNMENT
Budget boost for housing
A draft Welsh Government Budget agreed after the print edition of WHQ went to press includes an extra £134 million in each of the next two years to back new housing initiatives and support vulnerable people.
The biggest slice of the money (£140 million) will fund the Help to Buy Cymru shared equity scheme that aims to support investment of over £800 million in an estimated 5,000 new build homes.
Meanwhile the Supporting People programme will receive £5.5 million to help mitigate against cuts in 2014-15 as part of the Budget Agreement reached with Plaid Cymru and Welsh Liberal Democrats, ensuring continued investment of £134.4 million in 2014-15.
Other highlights include:
• Affordable Housing Land Scheme Financial transactions funding of £5 million in 2014-15 for a new pilot scheme will provide loans to councils and RSLs to acquire land sites in order to accelerate the development of affordable housing schemes.
• Town Centre Property Fund – Financial transactions funding of £5 million in 2014-15 for a pilot scheme to provide recyclable loans to convert empty commercial properties into homes.
• Social Housing Grant – £53.8 million in 2014-15 to build new properties or renovate existing properties for affordable housing in Wales
• Additional capital of £20 million for Social Housing Grant – £5m in 2014-15 and £15 million in 2015-16, to provide smaller properties to help mitigate against the impact of Welfare Reform.
• Homelessness support: Additional funding of £4.9 million in 2015-16 to support implementation of the homelessness element of the Housing (Wales) Bill.
Housing and regeneration minister Carl Sargeant said: \’I am pleased that despite the challenging financial times facing the Welsh Government, I am able to deliver additional housing support for vulnerable people. Our Supporting People Programme is crucial in enabling people to live independently and deal with the very difficult personal circumstances they often face.\’
Auriol Miller, the recently appointed director of Cymorth Cymru commented: \’This is great news for vulnerable people in Wales and we welcome the collaborative work done by the Welsh Government to arrive at this solution. As the UK Government\’s Welfare Reform agenda gathers pace we are facing difficult times ahead, with the most marginalised in our society being hit hardest. Protecting the services that support Wales\’ most vulnerable is more vital now than ever before.\’
Julie Nicholas, policy and public affairs manager at CIH Cymru said: \’CIH Cymru is delighted to see that housing is a clear priority for Welsh Government. The local and national benefits that can be achieved through housing investment is highlighted throughout the document, in terms of its economic stimulus and the provision of community benefits, such as jobs and training opportunities.\’
New homes for \’bedroom tax\’ downsizers
Help is on the way for victims of the bedroom tax looking to move to a smaller home under a £20 million scheme announced by the Welsh Government.
The money will help housing associations build 357 one- and two-bedroom homes for those affected by the under-occupation penalty on larger properties. Over 35,000 households in Wales are affected.
Housing minister Carl Sargeant said: \’I am determined to do what I can to support tenants so that there is the least possible damage to our communities, but recognise that these new homes are only a fraction of what is needed to counter the impact of the UK Government\’s benefit changes.\’
Minister revises emissions and sprinkler requirements for new homes
Housing minister Carl Sargeant has announced the phased introduction of sprinklers in domestic properties and a revised target for the reduction of greenhouse gas emissions for new homes in Wales.
The 8 per cent reduction in emissions on 2010 levels is lower than the 40 per cent originally proposed. But in a written statement on stimulating home building in Wales published in July he said: \’I believe that this constitutes a balanced approach – improving our emissions position without undermining the objective to build.\’
On fire sprinklers he said that \’at a time when resources are tight, I have decided to focus effort initially at high-risk properties where this measure will have the greatest impact\’. The regulations will now apply to properties such as care homes, student halls of residence and boarding houses from April 2014 and to all new and converted houses and flats from January 2016.
Housebuilders had crticised the original plans. But Stuart Rowlands, managing director of Redrow South Wales, said the minister had listened to the voice of the industry. \’He certainly has relaxed some key areas that gives the industry some breathing space at a very difficult time.\’
But environmentalists called the new energy plans \’a wasted opportunity\’. Alun James, policy and advocacy officer at WWF Cymru, said ministers had \’caved in to pressure from the building sector\’.
He went on: \’We have a situation when measures that could slash heating costs in new homes are delayed by years even though these were promised by the Welsh Government, are supported by most people, and would have real benefits in improving the resale value of the property.\’
Task Force tackles supply
More details emerged of the Housing Supply Task Force formed to advise the Welsh Government on how to increase supply and maximise the jobs and growth delivered by home building.
It will also offer practical proposals to tackle the barriers to home building and encourage more development. Taskforce members are:
• Chair: Robin Staines, director of housing, Carmathenshire County
• Vice chair: Stephen Cook, Valleys to Coast Housing
• Sasha Davies, strategic director for economy and place, Conwy County Borough Council
• Geoff Petty, chief finance officer, South Wales Police
• Andy Jones, relationship director \’“ Wales and the South West, Barclays
• Jane Carpenter, South Wales planning director, Redrow Group Services
• Richard Price, Home Builders Federation.
The taskforce has already heard evidence from key organisations in the Welsh home building sector and hears from officials within Welsh Government in October. It is due to report to housing minister Carl Sargeant in December.
See the WHQ special feature on supply and demand starting from p22 and an article by Task Force chair Robin Staines on housing bubbles and supply on p46.
New law protects mobile home residents
People who live in mobile homes in Wales will get new rights after AMs approved a new law at the end of September.
The Mobile Homes (Wales) Bill was the first-ever Private Member\’s Bill under the Assembly\’s new powers and was introduced by Peter Black, Liberal Democrat AM for South West Wales, with the support of the Welsh Government.
It seeks to protect people by bringing in fair, easy to use processes and clear rights for mobile home residents and site owners.
Peter Black said: \’I got into politics to make a difference to people\’s lives and that is exactly what this Bill will do. This Bill will help to solve many of the problems and issues that Mobile Homes owners deal with on a daily basis. Under the current law there is little protection for residents from unscrupulous park homes site owners; a minority of whom may exploit their position for personal gain. My Bill will stop this unfairness.\’
The Bill introduces a \’fit and proper\’ persons test for owners of sites of permanent mobile homes and a licensing system so that residents can be confident that their site is effectively managed.
Consultation papers
A number of Welsh Government consultations will be of interest to WHQ readers:
• Tackling Hate Crimes and Incidents: A Framework for Action \’“ Responses by October 18
• Consultation on the proposal to amend the duty of a local authority to accommodate a former prisoner as a result of their priority need status \’“ Responses by October 28
• Consultation on Discretionary Powers for Local Authorities to Increase Council Tax on Second Homes \’“ Responses by October 28
Welsh Government consultations are online here
PUBLICATIONS: 10 TO LOOK OUT FOR
1 Monitoring Poverty and Social Exclusion in Wales 2013
New Policy Institute/Joseph Rowntree Foundation, September 2013
www.npi.org.uk/publications/income-and-poverty/monitoring-poverty-and-social-exclusion-wales-2013
2 Framework for Action on Independent Living –
Welsh Government, September 2013
http://wales.gov.uk/topics/equality/rightsequality/disability/framework-for-action/?skip=1&lang=en
3 A High Cost to Pay – Research and recommendations on benefit sanctions for people experiencing homelessness \’“
Homeless Link, September 2013
homeless.org.uk/sites/default/files/site-downloads/A%20High%20Cost%20to%20Pay%20Sept13.pdf
4 A New Generation of Retirement Housing Could Set Off a Chain Reaction -The Top of the Ladder –
Demos, September 2013
www.demos.co.uk/publications/topoftheladder
5 A Role for Equity Finance in UK Housing Markets \’“
Joseph Rowntree Foundation, September 2013 www.jrf.org.uk/publications/equity-finance-and-uk-housing
6 Rebuilding the Relationship Between Philanthropy and Affordable Housing \’“
Smith Institute, September 2013
www.smith-institute.org.uk/file/Philanthropy%20and%20Affordable%20Housing.pdf
7 Beyond the High Street: Why our city centres really matter \’“
Centre for Cities, September 2013
www.centreforcities.org/research/2013/09/10/beyond-the-high-street
8 Turning the Tide \’“ Social justice in five seaside towns \’“
Centre for Social Justice, August 2013-09-26
9 Scenarios for the Welsh Government Budget to 2025-26 \’“
Institute for Fiscal Studies, September 2013
http://www.ifs.org.uk/publications/6867
10 Impact of under-occupation \’“ three months since implementation –
TPAS Cymru, July 2013
WALES
New grant scheme supports 1,000 new affordable homes
An innovative new housing finance scheme to support collective borrowing for construction of more than 1,000 new affordable homes across Wales was launched by ministers in September.
The Welsh Housing Finance Grant scheme includes £120 million of Welsh Government funding over the next 30 years. Some 20 housing associations are taking part with coverage across all 22 local authority areas in Wales. Construction of the first homes will start in 2013.
As part of the scheme, M&G Investments will become a major new source of finance for RSLs, which have been affected by a lack of long-term funding from bank and building societies.
The remaining finance will come from Affordable Housing Finance plc, a subsidiary of The Housing Finance Corporation, backed with a UK Government guarantee.
Housing minister Carl Sargeant said: \’This scheme is just the beginning in my search for new ways of increasing housing supply in Wales. Building new homes is important not only in meeting the growing housing need of communities but also as a way of providing work to help people out of poverty and to counter the highly damaging effects of the UK Government\’s \’œbedroom tax\’.\’
Steve Evans of Community Housing Cymru explains the thinking behind the new scheme as part of WHQ\’s special feature on supply and demand in this issue. For more, see pages 22-31
Cardiff looks for new homes partner
Cardiff Council is seeking a development partner or consortium to deliver its plan to develop over 1,000 new housing units in the city over the next 10 years.
The aim is to deliver high quality, mixed tenure homes to tackle the growing housing demand in the city, whilst delivering regeneration projects to create sustainable communities. The affordable housing units will be funded and managed by Cardiff Council.
The council has published a Prior Information Notice (PIN) to the Official Journal of the European Union to allow it to test the market and work with potential developers to help shape its approach.
Cabinet member for communities, housing and neighbourhood renewal, Cllr Lynda Thorne, said: \’Ensuring people have access to good quality homes and accommodation across the city is a key driver for the council. We are revitalising areas of Cardiff for the future and building communities by investing in developing brownfield sites to provide sustainable homes for people across the city, including a significant number of council properties to meet the high demand.\’
The Council is investing £33 million in the scheme and a number of council-owned brownfield sites have been identified as potentially suitable for development for at least 1,000 properties, 40 per cent of which will be new council homes for rent and low- cost home ownership. There are additional sites that with further investigation could also be suitable for redevelopment.
Four youngsters win apprenticeships
Two housing associations have teamed up to secure carpentry and electrical apprenticeships for young people in South Wales in partnership with a building company.
The long-term apprenticeships were offered to Newydd and Cadwyn by Willis Construction as part of its community sustainability proposals linked to the delivery of the two associations\’ planned maintenance contracts.
The two-year carpentry and three-year electrical apprenticeships are available to people aged 16-25 working on bathroom and kitchen upgrades for each associations and heating installations for Cadwyn.
A tough selection process involved a written test and construction site role play exercise followed by interviews. Pictured (left to right) are the four successful candidates Rhys Heathfiled from Barry, Carlyn Payne from Culverhouse Cross, Jake Hughes from Llanrumney and Craig Wilford from Ely.
Paul Roberts, chief executive of Newydd Housing Association, said,
\’Housing Associations are much more than bricks and mortar, we want to invest in the future of our young people in local communities for years to come. In the current jobs market, apprenticeships are more important than ever and initiatives with willing partners like Willis Construction are vitally important. We hope to offer more apprenticeships on other major contracts in the future.\’
Minister visits pioneering Abergele development
Housing minister Carl Sargeant saw progress on an innovative new concept in housing for older people on a visit to Abergele\’s first extra care development.
The £11 million Hafod y Parc project is being developed by North Wales Housing and Conwy County Council supported by a £6.2 million Welsh Government social housing grant.
The scheme will include 49 one- and two-bedroom apartments with a host of communal and shared areas. The extra care concept is a relatively new one that offers independent living supported by a tailor made care programme that can be adapted as needs change. This approach offers an alternative choice to traditional independent living or nursing home care and living.
Carl Sargeant said: \’It\’s great to see this first class housing scheme nearing completion. I\’m sure that the independent living these new homes in Abergele will provide to local people over 60 will be very welcome.\’
Linc secures £15m funding for development
Linc Cymru has agreed a £15 million funding package with Royal Bank of Scotland (RBS) to support its corporate development programme.
The package is supporting construction on new schemes in Bridgend and Newport. At Coity, Bridgend it is starting working on a mixed tenure scheme of 100 apartments and houses on land sold by the Welsh Government under its land release protocol. In partnership with Newport City Council, construction is almost complete on seven houses for social rent plus a supported housing scheme of six individual bungalows.
RBS structured the £15 million deal using the Bank of England\’s Funding for Lending Scheme, which is designed to provide more accessible funding to small and medium enterprises.
The social housing team from law firm Hugh James acted for Linc on the package and partner David James said: \’We are now seeing a surge in lending throughout the sector, particularly through the \’œWelsh housing bond\’ model and are currently advising several housing associations on their requirements.\’
Apprentice helps build homes on site where he was born
A Caerphilly teenager has returned to the site of the hospital where he was born to help build the next phase in its history.
Jamie Baird was born at the Caerphilly Miners\’ Hospital 17 years ago but returned as an apprentice carpenter and is part of the team working on The Beeches Village now under construction on the site.
The new development of 82 local homes is being delivered through a partnership of United Welsh and developer Lovell with the support of Caerphilly Council and the Welsh Government.
Jamie is based on the site through the Y Prentis scheme which enables young people to complete a two-year apprenticeship programme by providing placements on south Wales construction sites and will be working at the Beaches Village site until May. He said: \’This is the first time I\’ve worked on an actual site so I\’m learning all the time. I\’ve already had the chance to carry out tasks including fitting a roof, building stud walls, hanging doors and putting in window sills. Having been born here and still living locally, it gives me a personal connection with the site, which is really nice.\’
Steve Cranston, head of community investment at United Welsh, says: \’This is such a great story. We have been working with local people in Caerphilly for over four years to bring back the main hospital building to its former glory as a centre for community pride alongside badly needed affordable homes.\’