One Nation Housing – 50 Policies for Labour

The Labour Housing Group has published this consultaton paper on its own website and on the housing site "Red Brick" in advance of their annual conference next month:-

Housing is central to Labour’s One Nation approach and our plans for economic recovery and social well-being.

Housing Investment

1.       Housing should be a central feature of a new National Infrastructure Plan looking ahead 10, 20 and 30 years at the country’s requirements for a modern economy and a cohesive society.

2.       Increasing housing investment in all tenures should be a key component of economic policy.

3.       To ensure an adequate supply of affordable homes, capital investment subsidies should be restored to 2008 levels as quickly as possible, with over-riding priority given to building homes for social rent.

4.       Councils should be enabled to invest much more under the new self-financing regime. The existing borrowing cap should be lifted and international conventions for measuring public borrowing (which exclude public corporations) should be adopted.

5.       Smart national accounting should be adopted that recognises how housing investment contributes to savings in health, education and benefits budgets. 

Planning for Housing 

6.       Councils should be under much stronger planning duties to meet housing needs in their areas, to plan for mixed communities, and to co-operate in planning for new housing across sub-regions, especially City regions.

7.       Local plans should prioritise social rented homes separately from other sub-market rented and low cost home ownership homes.

8.       Local communities should benefit more clearly from development through requirements for affordable housing and other facilities.  

9.       The New Homes Bonus should be ringfenced to be spent on housing infrastructure and benefits for communities affected by development only and should be phased out.

10.    A proportion of new homes should be made available to people from the local area.

11.    There should be much stronger duties on public agencies to release land for affordable housing.

12.    As a general principle, brownfield land should be used first and broad Green Belt protections should remain.

13.    Minimum space standards should be applied to all new homes.

14.    More rapid progress should be made towards achieving high environmental and energy efficiency standards in new homes, with higher priority given to cycling, play and recreation facilities.

15.    Planning permissions should expire sooner and should be based on project completion.

16.    Planning powers should enable Councils to take more effective enforcement action against rundown and empty homes that blight neighbourhoods.   

Tenure Reform

17.    Labour should undertake comprehensive tenure reform with standard mandatory tenancy conditions across private and social renting.

18.    Labour should adopt a plan to ensure that the Commonhold form of tenure, introduced by the last Labour Government, is more frequently used.

19.    Labour should renew its commitment to co-operative and new forms of tenure.

Private renting

20.    The private rented sector should be modernised and reformed, with longer tenancies, more predictable rents, better regulation, and proper enforcement of safety and decency standards.

21.    There should be tough regulation of letting agents and encouragement of not-for-profit agencies.

22.    Stronger enforcement action should take place in cases of landlord crime like harassment, illegal eviction and theft of deposits.

23.    All landlords should be registered in a self-financing scheme.

24.    As part of a package of reforms, Labour should review the tax treatment of private landlords to encourage investment, and reintroduce repair grants to achieve a new PRS decency standard.

25.    Shared housing should be regularly inspected to ensure compliance with standards. 

Social housing

26.    All social landlords in receipt of public money should be subject to effective regulation and occasional inspection to achieve higher standards in terms of customer service, efficiency, governance, accountability, and viability.

27.    Statutory requirements for tenants to be involved in scrutiny and in the regulatory system should be strengthened and the right to complain to the Ombudsman should be strengthened.

28.    Labour should ensure that housing associations remain not-for-profit organisations and review the scale and use of their surpluses.

29.    There should be genuine ‘like for like’ replacement of Council homes sold under Right to Buy. Give-away discounts should be restricted. Councils should be enabled to take an equity stake in sold property and strict covenants should be applied in relation to future letting and onward sale. 

30.    A new social sector Decent Homes Standard should be adopted with stronger environmental and communal area requirements.

31.    All social landlords should produce an annual Asset Management Statement, demonstrating how they have made best use of their stock. There should be a presumption against unjustified sales of property.

32.    Security of tenure should be restored so there is a basic requirement that a household cannot lose their home without the landlord’s case being tested in a court. 

33.    It should be a priority to ensure that homes that have been ‘converted’ from social to so-called ‘affordable rent’ revert back to their original status.  

Home ownership

34.    Government help for home ownership should be targeted to provide help with deposits for first-time buyers.

35.    Labour should require the energy industry to provide better grants and loans to ensure minimum standards in energy efficiency.

36.    Repair grants should be reintroduced in housing priority areas to enable owners to bring their homes up to basic standards.

37.    Labour should work with the development industry to introduce a Rent To Buy scheme for first time buyers.

38.    Labour should work with the mortgage industry to deliver more loans at higher loan-to-value ratios but without encouraging sub-prime lending. 

Tax and benefits

39.    The total benefit cap should be regionalised to take proper account of rent differentials between areas of the country.

40.    Local Housing Allowance should be made available up to the level of median rents in an area rather than the 30^th percentile.

41.    HB direct payments to landlords should be restored based on tenants’ choice.

42.    The ‘bedroom tax’ should be ended in favour of a new national plan to tackle under occupation based on incentives and a stronger ground for possession with a right to suitable alternative accommodation.

43.    Labour should develop and adopt a long term plan to switch from personal subsidies to investment subsidies in housing, reducing the benefit bill by reducing the cost of rented housing.

44.    A Mansion Tax on properties valued at £2m or more, or additional Council Tax bands, should be introduced.

45.    Options should be investigated to impose additional taxation on foreign buyers in the prime property market. 

46.    Additional charges should be levied on long-term empty properties and unused development land.

47.    A fundamental review of property taxation and reliefs should be undertaken, including council tax, capital gains, stamp duty, to find a system that meets wider housing objectives. 

General

48.    It should be a key target of a Labour Government to reduce homelessness. The strong homelessness safety net should be restored.

49.    A new National Tenant Voice should be created, for all tenants.

50.    Labour’s commitment is to encourage mixed and sustainable communities across the country - in cities towns and rural areas.

If you are a home owner then you must of course be a vile mass murderer!

Hat tip to Red Brick for a brilliant post on the nasty, ignorant and bigoted coverage by the Daily Hates over the conviction of Mick Philpot for the manslaughter of his 6 children.

Now don't get me wrong Philpot and his accomplices are completely evil scum bags who need to be locked up for life but just because he and his family were on welfare does not mean that everyone who claims benefits are somehow potential mass murderers?

Dr Harold Shipman was a respectable GP, higher rate taxpayer and homeowner.

His housing tenure and source of income had nothing to do with his intent to mass murder 218 patients.

Myths about Public Spending under Labour

I like this post and chart in Red Brick by Steve Hilditch about actual public spending as percentage of GDP under Labour and Conservative Governments (as opposed to the myths).

With the exception of The Labour Government 1974-79, Tory Governments (including this one) have since 1965 spent more while in power than Labour ones. Even under Thatcher and Major.

The real question is did Labour spend too little in the last government?

Housing Killer Key Facts

Hat tip to Red Brick website for this table of key facts on the housing crisis facing millions of people.   Well done to the Fed for getting housing as a lead news item. 486,000 extra who work now on housing benefit. An 86% rise in 3 years.

Letting Housing benefit "take the strain" is not an answer to the crisis. Instead of wasting £90 billion on subsidising high rents caused by lack of supply, why not invest even 25% of this money in new build and refurbishment. Increase supply, reduce rents, get people back in work and increasing economic demand. Joined up thinking?

One Housing "defends" the indefensible

This is the 3rd recent post on Housing Association, "One Housing Group". First was in August this year in response to their plans to "Shape Communities" while at the same time slashing the pay and conditions of already low paid care and support staff.

The second was early this month about this post by Cllr Marc Francis, Tower Hamlets Labour Party, on housing blog "Red Brick" about "One Housing" going back on a deal made with residents about them having a majority on their local housing management board. This deal was in return for their support for an estate transfer.

"One Housing" have now come up with a rather silly defence of their action in this "Inside Housing" report. They attack the previous Board, Tory Cllrs and the local Labour MP and appear to claim that residents are just incapable of running housing services.

Which must be a bit of a surprise to the many successful co-operative housing organisations here and abroad. 

This is just an excuse. They could have compromised and still had an effective Residents Board but have chosen not to do so.

No wonder many attack Housing Associations as being unaccountable with poor or non existent governance, run in the interests of the senior management executives and their advisers, not ordinary residents.  This may be unfair to some but thanks to the behaviour of "One Housing" (and others) you can understand why many residents and politicians think so.

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.

"Isle of shattered dreams" ("One" Housing Group)

Check out this post by Cllr Marc Francis Tower Hamlets Labour Party on Housing Group blog "Red Brick". One Housing Group is trying to get out of an undertaking it made to residents and the last government to have resident led "governance" on the management Board of its subsidy "Island Homes" in the Isle of Dogs, East London.

This attempt to back track on promises is the sort of thing that gives the whole housing association movement a bad name amongst ordinary residents and politicians from all political parties. Good governance in many parts of the whole so called "not for profit" sector is frankly non-existent. Residents, clients and individual staff have little or no power and many very large organisations are run by self perpetuating oligarchies with no effective accountability or oversight.

While there is still many cases of good practise there is a huge difference between being "consulted" (but - we are going to do it anyway) to being part of the actual management process. You need people on Boards who have a real long term interest in the organisation since they live its homes, work for it, receive its services or are local elected Councillors. They are the ones who can challenge and ask the difficult questions that are needed to be said.

Huge amounts of public money has been spent on investment in these bodies and despite the cuts will continue to be spent on benefits and social care.  Who is making sure that this money is being well spent and that Housing Associations are being properly run? The Housing Regulator is now pretty toothless and will only step in when organisations have already failed and are going to the wall.

Unless Housing Associations get their act together and reform their governance practises and become more democratic and accountable to their stakeholders then they have in my view no long term future. While the Tories will try and turn them into quoted companies (even more of a disaster) I am sure a Labour government will one day have no choice but to get rid of them.