The impact of pacts
With the launch of a significant new partnership between Government and housing associations, Julie Nicholas and Keith Edwards revisit CIH Cymru’s 2011 Housing Pact to take stock of progress
When comparing housing policy and practice across the UK, three words come to mind: Wales is different. what were once nuances are increasingly becoming schisms and this is happening in three particular ways:
- We have a different analysis of the housing system shared between Government, CIH and large parts of the housing sector. The concept of One Housing System, of interconnections where intervention and planning are seen as benign and markets are considered ‘better servants than masters’
- This leads to a different narrative for housing, linked within a single ministry in Wales toboth planning and regeneration, and consistently heralded as central to addressing poverty and economic development, as well as supporting the wider equality agenda. The polar opposite position between London and Cardiff on welfare reform underlines this. We can’t even agree on official terms, Whitehall insist it’s a spare room subsidy whilst in Cardiff Bay it’s referred to as the bedroom tax.
- The ultimate consequence is the increasingly different agenda for action. From reforming the private rented sector nationally to a fundamental change of tenancy law, Wales is striking out on its own. And perhaps within this the biggest difference of all: increasing supply including a strong commitment to developing new social housing, encouraging local authorities to build council housing again, whilst also supporting affordable housing development by housing associations through the recently launched Housing Supply Pact
Increasing supply continues to be the number one driver of Welsh Government, housing policy and RSLs remain the single most important part of the sector in terms of delivering affordable homes. However, the means of delivery are diversifying and evolving:
we now have the best resourced empty properties programme – houses into homes – anywhere in the UK we are on the cusp of the most radical reform of the private rented sector ever seen, with a focus on a sector that ‘grows and improves’ according to previous minister Huw Lewis
• innovative models such as the Housing Finance Grant and Welsh Housing Partnership are having an impact on supply
• there is a modest, but potentially very significant increase in the development of co-operative housing
• and perhaps most exciting of all there is the real prospect of councils once again building homes at scale for the first time in decades.
If building more homes is the number one priority, it has long been recognised in Wales at least, that successful and sustainable housing policy needs to be about ‘more than bricks and mortar’. Successive Governments have committed resources to supporting vulnerable people through the supporting people programme, investing money in regenerating communities and programmes that allow older people to continue to live in their own homes.
Put together, this mirrors entirely the approach CIH Cymru championed with the current and the previous Labour/Plaid Cymru administration – One Housing System with an interconnected and dynamic relationship between statutory, voluntary and private sector providers, and a recognition that housing can deliver wider social and economic benefits for people and communities. As the minister acknowledged when launching the new Pact: ‘Investment in affordable housing improves people’s lives and stimulates the economy. It helps to tackle poverty, achieve educational attainment, improve health outcomes and support jobs and growth for people in Wales.’
This also builds on the co-production model that has been the modus operandi in Wales in previous years with government and housing associations jointly committing to innovation in funding, sustainable rents, best use of public land, standards, co-regulation, planning, community benefits and most importantly delivery of affordable housing. The ‘asks’ of housing associations by Government are challenging and extending into new areas. The minister is personally and energetically leading the radical reform of housing association governance as from his perspective: ‘Whilst there are examples of excellence, there has also been evidence to suggest mediocrity.’
The plan is to develop a new code of governance to develop good practice, with fixed terms for board members, an emphasis on achieving greater diversity on boards – particularly in relation to gender equality and representation – and associations being able to pay board members.
We were proud to be name-checked as an example of good governance practice by the housing minister at this year’s TAI conference, following the announcement that the CIH Cymru 2014 board now consists of 60 per cent women. This accurately represents the number of female housing professionals that make up our membership in Wales. Like the one-housing system we have advocated for Wales, we have worked with our membership to make the case for comparable representation on our board, and our members responded to this challenge by electing new members that not only resulted in improved gendered representation, but also resulted in the inclusion of housing professionals from across Wales and in all tenures; working for councils, registered social landlords and the private sector.
Housing Pact Cymru
In 2011 following extensive consultation with members across all sectors, CIH Cymru produced Housing Pact Cymru, based on the ‘ask’ of the incoming Welsh Government and the ‘offer’ of housing across all sectors under five themes. It seems timely to review progress over the last three years. What strikes one immediately is the significant progress in all five areas. The original pact included the following:
Theme 1: A Welsh Approach
- make the housing and regeneration ministerial portfolio a full cabinet position
- build on the co-production approach
- use its legislative capability to develop a single social housing tenancy
- undertake a distinct approach to the welfare reform agenda which directs resources into mitigating the impact on the most vulnerable.
Theme 2: Meeting housing need
- develop a cross-sectoral national housing delivery plan
- ensure a focus on market housing
- implement the recommendations of the Communities and Culture report in to the PRS including its key role in meeting housing need
- establish a national fund to help bring empty properties back in to use
- start a conversation with the sector about a sustainable balance between housing standards and delivering new homes
- maintain support for the rural housing enabler network
- Theme 3: Raising the Bar
- use new powers to increase the quality of the PRS, including the regulation of letting agencies
- fully implement the WHQS programme across the social housing sector
- improve the evidence base around the quality of the housing stock in Wales
engage and empower tenants through the new regulatory framework and ensure that regulation expects the same standards of all social landlords - ensure a sustainable future for local authority finance so that tenants have access to excellent quality homes and services
Theme 4: Putting People First
- urgently review the approach to homelessness in Wales to ensure access to support for anyone in housing need
- invest sufficient resources for independent housing advice services
- work across sectors to ensure good quality and sustainable housing-related support services
- Support a range of programmes which enable older vulnerable home owners to live independently in their own homes
Theme 5: the Housing Advantage
- ensure that housing-led regeneration is not just social housing led but a core part of the strategic housing enabling role
- place a greater emphasis on joint working between health and housing
- build on the Arbed programme
promote the Can do Toolkit approach to - community benefits in housing procurement.
CIH Cymru is impressed with the progress made. We have seen many
of the principles and goals it contained achieved; a cabinet minister for housing, regeneration and planning; a focus on collaborative and cross-sector working; proposed changes to legislation on homelessness, the private rented sector and tenancy reform.
Further we have seen cross-party support for implementing policies that
will drive up standards and champion
the housing industry in Wales, we have two key pieces of housing legislation introduced by Welsh Government, and our first private members bill from the Welsh Liberal Democrats will establish a new licensing regime for mobile home sites. Yes, Wales is different and many housing colleagues across the border are watching us with envy.
The housing and tenancy reform bills are progressing through our National Assembly and will deliver much of the policy content highlighted in our original pact in 2011.
There is of course more work to do if we are going to deliver the number of new homes that we need in Wales, support local authorities to implement the new legislative changes in a time of austerity, and ensure that our housing stock is fit for purpose and meets the diverse needs of our growing and aging population.
Yes, Welsh housing still has far to go, however we have taken great strides forward, and it is important to appreciate how far we have travelled.
PRS Summit 2014: All aboard!
Structural change in UK housing continues: the private rented sector is now bigger than social housing nationally, and the housing and affordability crisis facing generation rent regularly hits the headlines.
In Wales the private rented sector is now only marginally smaller than social housing, providing homes to tens of thousands of families, and Welsh Government is introducing legislation to change both tenancy law and private landlord regulation in the next 12 months.
The private rented sector is coming of age and
is now an integral part of the housing stock and supply solution. It is time to climb aboard: an increasing number of housing associations, private landlords, institutional investors and managing agents are joining the sector and it is clear that improved partnership working is the way ahead.
Our third PRS Summit 2014 will focus on the key changes to legislative and regulatory frameworks, the challenges for Government, local authorities and membership organisations. We aim to bring together stakeholders to offer landlord and agent learning opportunities, facilitated discussion, and feature emerging good practice from Wales and the UK to support a housing sector that is growing and improving.
The PRS summit 2014 is on Tuesday July 15 in Cardiff. Find out more and book on-line at www.cih.org/eventsfinder.