When we are dead, the relationship between us and local authorities won’t matter anyway. That was the blunt assessment of Steve Howlett, chief executive of the Peabody housing association, during a fractious meeting at last year’s Labour party conference, where housing associations were coming under fire for agreeing a voluntary deal with the government over extending right to buy to social housing tenants. The alternative – having a deal imposed – would have been like “going in front of a firing squad and hoping the guns aren’t loaded,” he said.
It was not a promising moment in what has become an increasingly tense relationship between housing associations and local authorities, as both come under huge pressure. The new Housing and Planning Act, passed by parliament this June, will potentially make things much worse.
That’s because the act has extended right to buy to housing association tenants, who can now get big discounts on the value of their homes, if they want to buy them. But councils, rather than housing associations, are being forced to foot the bill, because the Act forces councils to sell their highest-value homes as soon as they become vacant, in order to provide the funds to compensate housing associations for the cost of their tenants’ discounts.
In areas such as the inner London borough of Islington, every time a council flat becomes empty, instead of that home going to the next person on the 18,000-long waiting list, it will be sold into the private market.
One ray of hope is that more power is being given to local government under the government’s devolution policy. This opens the door for housing associations and local authority partners to create a local approach to planning and building homes – also tackling wider public sector reform, such as integrating health and social care. In Greater Manchester, the standard bearer for devolution, housing providers get to work directly with the 10 local authorities and the combined leads on health and housing.
The most important aspect of any partnership is the ability to have frank conversations. “Everyone knows that local authorities and housing associations are struggling to meet people’s housing needs,” says one housing insider. “But too frequently, these pressures are not being talked about.” She adds that while both sides need to show leadership, it is councils, with their remit to support the whole local population, that need to take the lead in creating true partnerships – even under the most difficult circumstances.
How to collaborate
1. Find the right people
You need to find the true power brokers. Getting round the table with the right people pays dividends.
2. Set clear aims
Being clear on local targets, such as how many new homes are needed locally and the number of affordable homes in the local plan, will help councils and housing associations understand one another’s needs.
3. Broaden the conversation
Devolution in England promises greater local powers to bring together public services – not just housing, but employment and skills, transport, policing and, in Greater Manchester, health and social care. Housing providers, many of which still provide support for residents in all these areas, are uniquely well-placed to partner with councils to create integrated local plans.
4. Be frank
Financial tensions between councils and housing providers are likely, but both being frank about the challenges will help all parties understand what can – and cannot – be achieved.
5. Walk in their shoes
Staff in councils and housing associations fear a threat to their core purpose. Welfare reform and government cuts present a real threat to social housing, while councils are looking at deep cuts to core services. Getting through tough times will depend on good relationships, now.
