Why there is a rural housing crisis

This article was published in Country Standard Summer 2013 page 9. "By John Gray UNISON Housing Association Branch Secretary and National Executive Council Member

Why is it that there is a massive shortage of rural housing when all Councillors support affordable housing yet not enough is built ? Is this because the government is not funding housing associations or Councils to build?

Despite the crocodile tears of Government ministers and many rural councils about the massive shortage of affordable homes in the countryside for local people, the reasons are actually pretty straight forward and can be solved.

Firstly, the Nimby’s (Not In My Back Yard) Brigade. Often you find that those who are adequately housed in attractive countryside don’t want more homes to be built that they think may spoil their view out of the garden conservatory. Especially if these homes are thought to house possible “working class people”!

Changes to planning law means that Councils are not obliged to insist on the building of affordable homes if they don’t want to - and many don’t, they simply don’t care, regardless of the need.

We also seem to think that converting large chunks of the so called “green belt” into huge, ugly exploitative factory farms, often set up solely to take advantage of generous EU and UK government subsidies is preferable to building some new homes.

The countryside has in too many areas been colonised by a blight of retirement bungalows and weekend second homes for our wealthy urban middle class elites. As well as wreaking village communities by destroying local schools, shops and pubs. This results also in the double whammy of a lack of supply of homes and a very high demand - which pushes up prices completely out of reach for those who do not have access to a wealthy Bank of Mum and Dad.

There is also far less existing social housing in rural areas than urban (13% compared to 22%) as well as low wages and lack of jobs. The disastrous government policy of the so called “affordable rents” regime for new properties (and in many cases the new lettings of existing stock) costing up to 80% of market rents compared to the traditional social rent of 50% of market rates is another death nail. The barking mad destruction of the Agricultural Wages Board which will even lower pay is yet another.

The Bankers crisis and the huge cuts in housing investment by this Tory Government have of course just made the problem far, far worse.

There is some hope for the future since it seems that there is antidotal evidence at least that Tory MPs are being button holed in their Conservative Association Clubs by angry members who are fed up with their kids living at home until in their thirties, since even their offspring cannot afford their own place.

There is also concern expressed that there is no “help” available anymore to clean their homes, do their gardens or serve their food and drink at the local posh restaurant.

There are signs that the Countryside is turning and there is a feeling that enough is enough. Labour Councillors are now being returned in Shire and district Council elections up and down the country. This month in rural Dorset we will celebrate the Tolpuddle Martyrs and remember a time when the countryside was at the forefront of radical politics.

Maybe, just maybe, our contemporary rural poverty and homelessness may spark something a little similar.

Housing Voice ‘To Have or Have Not? Taking Responsibility for Tomorrow's Affordable Homes Today"

I left TUC Congress early today to return to London for this morning's launch of the Housing Voice report at the House of Commons.

Housing Voice is an independent affordable housing alliance with cross party political support. For the past year they have carried out a national inquiry, taking evidence up and down the Country.

Over 60 organisations and 3000 individuals have given evidence. Today the report was published. I was there to make a response on behalf of UNISON. This is the press release and full report.

 

There was around 40 people present including MPs from all the main political parties. On the main panel was Liberal Democratic Stephen Gilbert MP (who said he was the only MP to be still living at home with his parents), Conservative Mark Pawsey MP and Labour Shadow Housing Minister, Jack Dromey MP. 

Not everyone agreed with everything in the report but there was more consensus than I expected.

There is lots and lots of good proposals but one of the big ideas is to use £5 billion of the recently announced £50 billion in Quantitative Easing (QE) to buy low interest housing bonds rather than government gilts. This money is then used to invest in affordable housing. 

 

In many ways the problem and solution to the crisis in affordable housing is the bleeding obvious. There is an absolute shortage of homes in all tenures - home ownership, social housing and private rented. Nearly everyone gets this big picture, this is why nearly 50% of UNISON members have grown up children still living at home.

Supply and demand means that cost of housing in many parts of the UK is simply unaffordable.  The only market solution to reduce cost is to build more new homes. The only social solution is to build more new homes with genuinely affordable rents.

 

Over the next 3 years we will spend only £4.5 billion on building new social homes while we spend a staggering £93 billion on housing benefit.

Lord Larry Whitty introducedthe report by saying such is the crisis 250k new homes are needed each year for the next 20 years. Last year only 110k were built.

 

The problem is not planning permission, nor is it a land bank (supply) problem. With huge unemployment in constructionand development, capacity is not a blockage either. The problem is money.

Extra government support and QE can be used to provide that money, build affordable homes and get Britain working again. Get people off the dole and build homes, get them paying taxes and spending money in the economy. 
 

I also picked on the recommendation that pension funds are encouraged to invest in new homes. While it is the responsibly of the state to make sure and enable their citizens to have adequate shelter. I can say as a pension trustee that schemes are crying out for suitable vehicles to invest in long term, secure, inflation linked products such as residential housing.

The problem lies with many advisers and fund managers who think its all just "too difficult" and prefer investing in warehouses and retail because that is what they are use to.  Unlike the rest of the world where pension schemes actively invest in residential property.   

Appropriately the meeting stopped at 11.30 just after the Parliamentary bell rang for prayers. I'm not religious but I did have another bleeding obviousthought.

 

(I was pleased that afterwards Jack Dromey MP agreed to speak at a future meeting of my UNISON Housing Association branch). Check out Red Brick account of meeting here.