To say the past year for social housing has been tumultuous would be an understatement. Tenants living in social housing – usually defined as low-rent, secure housing provided by councils and not-for-profit organisations, such as housing associations, for those most in need or struggling to meet housing costs – have been hit by a whole raft of government policies that threaten the very existence of social housing as we have known it for the past 70 years.
This includes the controversial new Housing and Planning Act. Intended to boost home ownership and help the government reach a target of getting 200,000 new homes a year built, the Act has been met with constant criticism from housing professionals, tenants and politicians, who believe many of its policies are bad news for those trying to keep an affordable roof over their heads. This includes the so-called “pay-to-stay” policy – a rent rise for social housing tenants who earn more than £31,000 a year (£40,000 in London). Bob Kerslake, the crossbench peer and former head of the civil service, says the Act risks “bringing about the end of social housing as we have known it since the second world war”.
And given that some of the country’s lowest-income and most vulnerable people are social tenants, it is the government’s controversial programme of cuts to welfare benefits that have caused the greatest concern. In particular, there is worry about the future of people living in supported housing. Many social housing providers have schemes to provide housing, support and sometimes care services that enable tenants to live as independently as possible, but the government’s decision to reduce social housing rents and cap housing benefit could leave providers with a shortfall in income that could imperil many such schemes.
Martin Hancock, chief executive of Bournemouth Churches Housing Association, says “delayed decisions on the future funding of supported housing, plus the government’s 1% rent reduction on social housing are holding up new build decisions on specialist housing.”
Hancock is worried that his organisation may have to use existing supported housing for other uses, “which could mean more people will become homeless”.
Giles Peaker, a partner at Anthony Gold solicitors who deals with housing cases, predicts some issues, such as allocation policies, will continue to be a problem. Most of the challenges on allocation centre on qualification requirements, such as whether people have a local connection. Peaker also thinks more cases will end up in court as people challenge the rules on homelessness – in particular, the interpretation of the clause that those entitled to be rehoused must be “significantly more vulnerable” than an ordinary person.
The Housing and Planning Act requires councils to sell off their most valuable homes as they become vacant, with receipts going to the Treasury to compensate housing associations whose tenants buy their homes – and here, too, Peaker foresees legal battles as councils try, understandably, to cling on to their stock.
Politically, the landscape could shift too. Theresa May has appointed a new housing and planning minister in Gavin Barwell, alongside Philip Hammond, the new chancellor, and the trio could have different housing priorities from David Cameron, George Osborne and Brandon Lewis, the former housing minister.
Meanwhile, Labour is still waiting for members to decide between Jeremy Corbyn and Owen Smith: a Smith victory could mean Labour changes its housing policy, while if Corbyn wins he will still have to find an MP willing to take on the currently vacant housing brief, following the resignation of shadow housing minister John Healey.
Alison Inman, vice-president of the Chartered Institute of Housing, doesn’t mince her words on what should be done in the year ahead. She wants action: “There must surely be a finite number of august bodies that can launch an inquiry into the housing crisis, so hopefully we will be enabled to crack on and do what we need to do – build more bloody homes.”
Inman says that repeatedly asking the same question in the hope of getting a different answer is “wearing a bit thin”, as is politicians’ persistent claim that people want to buy their own home. “That may be true, but there will always be a good third of the population who cannot access a mortgage,” she points out.
“There is nothing wrong with renting: we need to speak up for what is our core ‘product’ and work to persuade the new minister that social housing saves money and helps build strong communities.”
