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McDonalds write health policies; house builders set design standards

Post author By Red Brick Blog
Post date November 29, 2010

by Tony Clements

Former policy advisor to Rt Hon John Healey MP during his tenure as Minister of State for Housing and Planning. Executive Director of Place for Ealing Council.

When the government announced that it was inviting businesses to play a greater role in Britain’s health policy, it made the front page, because of the obvious clash of interests. Pepsi and McDonalds want to sell more of the products which cause obesity and poor health.

Last week the government did something similar in housing. It abolished the higher space and sustainability standards which were set to apply to new publicly funded homes. Instead, the Housing Minister is putting house builders ‘in charge of developing a new framework for local building standards.’

Now there is a fundamental clash of interest between house builders and people who want spacious, well designed and environmentally sustainable homes. These homes are more expensive for developers to build, no getting away from it. There is also a conflict within government; government (should) want good quality homes and all recent governments have wanted more homes. Higher standards hit your housing numbers.

The approach of the last government was to try to increase standards gradually, with public housing leading the way. That meant government shared in the increased cost of better homes and helped industry build capacity and expertise to build better homes elsewhere as cheaply as possible.

And to state the obvious, public cash is often on the line to mop-up the problems of poorly designed and built homes. Part of the problem of some of the ‘sink estates’ the Tories love to quote is that they were built poorly in the rush for numbers in the post-war period. Billions have gone into estate regeneration schemes in recent years, to demolish and rebuild the substandard and poorly built homes of the past,

So when the Housing Minister says: ‘There’s no good reason why homes built on public land should be built any differently to those of high quality on private land.’ The good reason is that private homes are often not very well built as the Royal Institute of British Architects and the soon to be abolished CABE point out.

This move is simply a leveling down, which will help the Housing Minister meet his numbers in the short term, but will build in longer term problems, for which the tax payer is likely to have to pick up the bill. The public sector has abdicated its role in trying to provide better and bigger homes for its citizens.

It’s worth saying that I’m not unsympathetic to the Housing Minister’s bind. There is a housing crisis and a desperate need for new homes. All those homeless families, overcrowded families, those on waiting lists, in temporary accommodation or sleeping on the sofas of friends and family, don’t they just need any serviceable home and quickly? And following the advice of architects has not always led to untrammelled success: tower blocks were once the cutting edge of design.

Rather than peddle nonsense about red tape however, the Housing Minister could say that after weighing up the balance he’d decided to go for homes now and lifting housing standards would have to wait for less straightened times. That would be an honest response.

Uncategorized

Scaremongers abound

Post author By Tony Clements
Post date November 28, 2010

During the election the Tories were very keen on painting Labour as a negative party, who wanted to whip up unfounded fears about the Tories’ secret and malicious plans. On cancer tests, cuts, and Sure Start, among others, the cry of scaremongering went up from Dave, George and co.
It’s an effective political technique that undermines the credibility of criticism by arguing that it is extreme and that those making it are desperate, with only the power of fear to play on.
Such a skirmish took place on the housing front. People who pay attention to housing will remember this in Inside Housing April 2010. Rattled by Labour claims that the Tories would hike social housing rents and abolish security of tenure, Mr Cameron came out to bat himself to rebut such claims.
He said these claims were part of a ‘scare campaign’, Labour’s allegations were ‘simply untrue’ and that the Conservatives believe in the ‘security [social housing] provides’.
Within months of their election they are set to abolish security of tenure and allow social housing rents to rise to 80% of market rents.
Regardless of if you think these measures are good or bad, they broke their promises and were perhaps even telling porkies at the time.
Anyway, it’s an unattractive habit of political people to rake over lost election claims, seeking retrospective justification. But does this episode tell us anything about our government now and in the future?
Didn’t Clegg and others jump to say Labour were scaremongering over housing benefit cuts compelling people to move out of their communities? Remind me, what was Eric Pickles’ response to the (Tory-controlled) Local Government Association’s assessment of the impact of cuts on council services? Scaremongering?
Just a thought: Rather than scaremongering being the last resort of desperate parties, aren’t accusations of scaremongering becoming the first resort of our government when they’ve been caught bang to rights?

Blog Post

Unequal impact

Post author By Steve Hilditch
Post date November 26, 2010

Steve Hilditch

Founder of Red Brick. Former Head of Policy for Shelter. Select Committee Advisor for Housing and Homelessness. Drafted the first London Mayor’s Housing Strategy under Ken Livingstone. Steve sits on the Editorial Panel of Red Brick.

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Since the Election the Government has substantially reduced the information it provides in announcements, consultation papers and the like concerning the impacts the proposals will have in equalities terms.

It was an important innovation by Labour to introduce a statutory requirement to publish impact assessments. Policy documents improved: ‘straight line thinking’ was challenged by the discipline of having to look at issues from the different standpoints of women, ethnic minorities, disabled people, and others. It didn’t solve the problem but equalities issues were much more likely to be properly considered as part of policy development, and policies were much more likely to be adapted to mitigate any adverse impacts identified. Impact assessments were fascinating to read because they tended to reveal downsides or unintended consequences of a policy that did not appear to have been addressed.

By any measure, this week’s consultation paper on social housing and homelessness is likely to have major implications for women, ethnic minorities and disabled people. Yet there is no impact assessment or equalities assessment published with the consultation paper. And none of the 30 consultation questions explicitly concerns equalities (although one asks if new tenants who are older people or have a long term illness or disability should be given ‘a social home for life’ – is there any answer other than ‘yes’?). The only reference to the duty is a note saying that impact assessments of the legislative changes will be published with the Localism Bill – we will see how thorough these are when they emerge – but the consultation paper has much wider consequences for practice in the sector than the contents of the Bill.

The Equality Commission is launching a formal inquiry as to whether the Treasury fulfilled its “legal duty to pay ‘due regard’ to equality and consider any disproportionate impact on protected groups when making decisions, including decisions about the budget”, pointing out that “Where decisions are found to have a disproportionate impact on a particular group protected by the legislation, public bodies must consider what actions can be taken to avoid, mitigate or justify that impact.” (see link below). The charge was made at the time of the spending review, notably by Yvette Cooper, that it would hit women much harder than men. Although officially denied, it emerged that Theresa May had written to George Osborne after the June budget to register concerns about non-compliance with the legislation.

Although the Commission will not report until next summer, they could then serve a compliance notice and go to the Courts to force the Treasury to comply. Their intervention is to be welcomed and should also serve as a warning to Communities and Local Government Ministers.

http://www.equalityhumanrights.com/news/2010/november/commission-to-assess-the-spending-reviews-compliance-with-equality-law/

Tags Equalities, Impact assessment, Public consultation

Blog Post

Welwyn-Hatfield Syndrome

Post author By Steve Hilditch
Post date November 25, 2010

Steve Hilditch

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Always one for the grand gesture and photo-opportunity, Grant Shapps is on TV yesterday cutting some ‘real red tape’ and complaining that local authorities suffer from ‘Stockholm Syndrome’. Well, the point missed me for one and possibly most of the rest of the population as well. Wikipedia came to the rescue as usual, letting me know that in psychology Stockholm Syndrome describes the paradox where captives express positive feelings towards their captors.

I don’t know if Shapps is a student of psychology but evidentally in Spooks the syndrome was crucial to the storyline involving agent Lucas North. More likely that was the inspiration.

Shapps was describing the ‘bonfire of the regulations’ that are to free local government from the ‘apron strings of the nanny state’. But, just as this week’s social housing consultation talked of freeing landlords and not tenants, this announcement is about freeing government and councils and not residents. Both are about removing scrutiny of performance and achievement. At the core, they are about obscuring and hiding the real impact of the cuts.

One of the casualties is inspection by the Audit Commission of local authorities’ strategic housing function. Under the government’s plan to remove regional planning and targets and to place all key housebuilding decisions at local authority level, councils’ understanding of their local housing markets and housing supply and demand will be critical.

Over the last couple of years, the Audit Commission has completed over 30 inspections and re-inspections of councils’ strategic function. Not one was found to be excellent. Only 4 were found to be good, 18 fair and 11 poor. Picking one at random, West Somerset was described as follows: “The service lacks a clear understanding of community need and because strategic plans are weak, the Council has yet to effectively target the relatively poor private sector housing conditions. The delivery of new homes is not meeting needs and there has been little success in addressing empty homes. Strong outcomes for vulnerable people, such as those living in temporary accommodation, are limited.”

Some districts are very small, many now have no housing stock of their own, and many have little capacity to undertake the strategic work that is necessary. It is not surprising that they do not perform strategic housing tasks well and it would be even more surprising given budget reductions if they were to suddenly discover the talent to do so. This is one reason why so many local housing development decisions will be decided by the loudest voices rather than careful deliberation. It is also why the regional perspective was so important to housebuilding delivery.

So, we identify the new Welwyn-Hatfield Syndrome, unfortunately not yet in Wikipedia, but named in honour of Shapps’ constituency. This is where someone passes the buck down the line having made damn sure the recipient will fail to deliver, removing all scrutiny of the process, at the expense of everyone who needs a home to buy or to rent. Then you shout from the rooftops:

“Nothing to do with me guv, I’m only the Minister.”

Tags Audit Commission, Local government, Strategic housing

Uncategorized

The Freedom to be Bad (or Good?)

Post author By Tony Clements
Post date November 24, 2010

As Steve said in his last post, it’ll take a while to work through everything in the government’s consultation on social housing.
I want to kick off by commenting on its central themes of choice, flexibility and localism, which will be much vaunted in the face of the old ‘top-down’, ‘static’, ‘monolithic’ system.
The paper does represent a genuine transfer of powers and freedoms out of central government to social housing landlords. Is this localism though? It is a localist measure to give freedoms to councils. These freedoms will also be exercised by housing associations, many of which have tens of thousands of properties, stretching across many council areas and regions. What does this mean for localism? Councils have a democratic accountability. Housing associations don’t. Yet they will be able to decide centrally the length of a tenant’s tenure and under what circumstances they will be evicted after two years. Big powers without democratic legitimacy.
Don’t get me wrong, I’m not bashing housing associations – the best are great at consulting and involving their tenants. But that’s not the same as democratic accountability. Just because government is giving away more freedoms, doesn’t mean it’s local and it doesn’t mean it’s more democratic.
The next question is – freedom and flexibility for whom?
Councils and housing associations now have more freedom to reduce the length of tenure, decide whether to allow tenants to stay in their homes after two years, charge higher rents and place homeless people in the private rented sector. So social housing providers have loads more freedoms and choices.
Where however are the guarantees of new choices for tenants? What are the new choices that the paper provides people living in social housing? Well, there are new measures that may make it easier for existing tenants to move home within the social sector. A modest and welcome measure – but hardly a revolution.
Councils and housing associations now have a great deal of direct power over the lives of their tenant and future tenants. The question is how will they use those powers and for what? There is much freedom to be malicious and prove Shelter right that these reforms are an attack on the poor.
For Labour councils the challenge is this: can they use these new powers for progressive ends, for greater choices and options for tenants, to help build more sustainable communities, to support tenants into employment? Do they have the freedom to be good? Do they have the freedoms to show there are alternatives to the coalition’s policies?

Blog Post

An unfair future for social housing

Post author By Steve Hilditch
Post date November 22, 2010

Steve Hilditch

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It’s too ambitious a task to analyse Grant Shapps’ social housing consultation paper in one post. I hope people will read it and make their comments forcefully to the government. But there are a few points I think are worth stressing.

1. Localism is a great dodge. It allows you to slide away from all difficult questions by saying you are just enabling the landlords and it will be down to councils and housing associations to decide for themselves how much the new powers are used. The paper has no predictions of how many of each type of new tenancy might be created in future and it avoids any substantive discussion of how ‘well off’ a tenant needs to become before they are evicted at the end of a short tenancy. So its a postcode lottery, what happens to you and your home depends entirely on an accident of geography and chance. Given that the stated justification for the policy is to give more opportunities to the 1.8m on waiting lists, it is astonishing that there is no estimate, however rough, of how many people might benefit from the policy over a period.

2. The proposed change to the homelessness duty guts the legislation as we have known it for 33 years. Local authorities will be able to discharge their duty to a homeless household by finding a private letting for the applicant, who can no longer refuse it, even though landlords will still have to offer ‘reasonable preference’ to vulnerable homeless households under their allocation policy. The paper complains that “those owed the duty can effectively insist on being provided with temporary accommodation until offered social housing” as if being in TA is some luxurious option. In fact, TA makes it almost impossible for people to work, frequent moves mean families do not settle and children are seriously disadvantaged. The average stay in TA is one year outside London and 3 years in London. No-one would suffer that if the private rented option was a reasonable one for them. People suffer it because social housing offers the only hope of a decent and secure home at an affordable rent to enable families to rebuild their lives in a settled home.

3. Some extraordinary claims are made – for example that the reforms will help overcrowded families. How exactly? There are no proposals to tackle underoccupation amongst existing tenants and zero existing large homes will be released to help the 260,000 overcrowded social tenants. Even more astonishing is the claim that the proposals will promote ‘strong and cohesive communities’ when the opposite is the almost certain outcome of a more rapid turnover of tenants with new tenants not being able to put down roots and become net contributors to their neighbourhoods.

4. The new ‘affordable rent’ tenure, or ‘flexible tenure’ as they now seem to prefer, is aimed to provide homes for the same people who might be offered social rent now. But it is open to the landlord to decide the rent, the length of tenancy and, within a broad framework, the terms. The paper at least is honest when it says this is “a significant first step towards those greater freedoms for social landlords.” How will people on waiting lists, homeless people or any other prospective tenant know what kind of tenancy they will receive, for how long and at what rent? Chaos awaits.

5. The paper has one traditional charlatan’s trick – if you can’t change the reality, change the way it is counted. One reason for the growth in waiting lists since 2002 was labour’s decision that they should be open to anyone to apply. As a result, waiting lists have become a more accurate count of not only the need for social rented housing but also the demand – and it is huge. Social housing is a popular option with many people and they want more of it. But in future councils will be able to dictate who qualifies to join the waiting lists, leaving it open to local political manipulation as was the case prior to 2002. And no doubt the government will claim that waiting lists have been slashed since they came into power.

6. And my 2 favourite hobby horses. First the claim that social housing is subsidised when everyone at CLG knows that council housing is running a surplus, including the cost of debt, which is likely to grow over the next few years. Even calling houisng association homes subsidised because they have capital grant is questionable – they make a large surplus in the long term. And secondly, the use of the term ‘lifetime tenancy’ as if it was a legal or technical term, is extremely irritating. This phrase was invented by those opposed to security of tenure to try to make it sound ridiculous. Security of tenure simply means that the tenancy is not time limited and the landlord has to have grounds for possession and to get a court order to repossess. Simple consumer protection.

‘Local decisions: a fairer future for social housing’ can be found at http://www.communities.gov.uk/documents/housing/pdf/1775577.pdf

Tags Coalition policies, Department for Communities and Local Government, Homelessness, Social housing

Blog Post

Social housing ‘reform’: less Localism and more Localis

Post author By Steve Hilditch
Post date November 22, 2010

Steve Hilditch

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There is a lot in common between the policies on social housing announced today by Grant Shapps. None of the policies appeared in the Lib Dem Manifesto. Apart from better mobility, none appeared in the Conservative Manifesto, which promised to “respect the tenures and rents of social housing tenants”. Apart from the HRA reform and empty homes, none made it into the coalition agreement. The common thread is that they have all been thoroughly undemocratically arrived at and the British people were not told any of it at the Election.

The truth is that these policies have all been developed in the back channels of the Conservative Party. One document recommended virtually all the policies now adopted by the coalition. A Localis pamphlet written by the Leader of Hammersmith and Fulham Council, Stephen Greenhalgh, and John Moss, in 2009, called ‘Principles for Social Housing Reform’, proposed ending security of tenure, raising rents to market levels, and removing rights from homeless people. There is only one serious departure – Greenhalgh and Moss accepted that there would have to be a commensurate increase in housing benefit payments to enable rents to rise so high – and the government hasn’t taken that one on board.

Dave Hill in his London blog traces the contact between Greenhalgh and the Tory front bench. The more they met, and the more the front bench distanced themselves in public from the more extreme policies, the more committed they seem to have become to implementing them if they won.

There is little doubt that social housing has suffered from a great deception.

We will have more about the new policies on Red Brick shortly, but the government’s consultation paper can be found here: http://www.communities.gov.uk/documents/housing/pdf/1775577.pdf

The Tory back channel policies can be found here: http://www.localis.org.uk/images/articles/Localis%20Principles%20for%20Social%20Housing%20Reform%20WEB.pdf

And Dave Hill’s history can be found here: http://www.guardian.co.uk/uk/davehillblog/2009/oct/05/stephen-greenhalgh-housing-policy-timeline

Those that like to follow the personalities in housing as well as the policies will be interested to know that Greenhalgh and Moss specially acknowledge the help of “two extremely influential couples” – Julie Cowans, co-author of Visions for Social Housing, and David Cowans, Chief Executive of Places for People; and Nick Johnson, Chief Executive of H&F Homes and Kate Davies, Chief Executive of Notting Hill Housing Trust.

As Stan Laurel once said, “Here’s another nice mess I got you into.”

Tags Coalition policies, Department for Communities and Local Government, Social housing

Uncategorized

Council housing for life and 'fairness'

Post author By Tony Clements
Post date November 20, 2010

It is being reported this morning (e.g. on Today) that security of tenure for council tenants will be reduced to two and a half years. In what is a fairly typical pattern for DCLG these days, there is nothing in the way of more information or a press release on the website.
It seems that after 2 years or so all tenants will be assessed for whether they ‘need’ council housing anymore; perhaps their income has risen or their household has become smaller. If they don’t ‘need’ it, they’ll have six months to move out. Again, the government will wheel-out a ‘fairness’ argument: why should people receive a subsidised property when they have the means to afford one in the market (probably private rented market) while there are others in need on the waiting list? So far so good?
But this surely is a bit of a disaster for making work pay and providing incentives to get into work; the major problem which IDS and George Osbourne are trying to solve? The government’s basic criticism against social housing is that is underpins dependency, poverty and worklessness: people get a cheap social home for life, with no conditions and no incentive to improve their circumstances.
But surely this reform runs completely counter to this? If you are on a low-income or without a job and you get a social tenancy from next summer onwards, why on earth would you strive to get a job or increase your income? You’d know that it meant, in a couple of years’ time, you’d lose your home because of it.
If you did get a job, most likely not a well paid one, isn’t there quite a big incentive to ‘lose’ it just before you get assessed by the tenancy police?
People’s homes are pretty important to them, especially if they’ve been on a waiting list for years to get one. The unstable and poorly paid jobs that people often get as they first move into work, may well be sacrificed so they can keep their home.
This is such an obvious counter argument that I’m sure there is a government fudge on the issue on the way.

Blog Post

LHA on a Shoestring (Eddie, that is)

Post author By Steve Hilditch
Post date November 17, 2010

Steve Hilditch

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The excellent blogger Jules Birch, of Inside Housing magazine, demonstrates the value of a good journalistic nose and a bit of statistical persistence.

Last week, Ministers made much of the comparison between private sector rents, which they claimed the Office for National Statistics showed were down by 5% in a year, and rents where local housing allowance was being paid, up 3%. This proved, they declared in the House and on the airwaves, that LHA was distorting the market, driving high rents and fuelling profiteering by landlords.

Birch, aka Inspector Clouseau, smelled a rat. And in particular that the ONS produces no such statistics. A few calls later, and Inspector Morse forced the admission from the department that the statistics in fact came from a private property website. And Inspector Frost then discovered that using the website’s stats as an index was dodgy in the extreme, not to be relied on as an indicator of rents in the sector as a whole let alone the LHA market, and that their analyst was in fact predicting rent rises. And finally Inspector Taggart demonstrated that all the available evidence shows that LHA does not distort the market after all. No case to answer.

So, was Ian Duncan Smith misleading the House – sorry, in Parliamentary language, was he ‘inadvertently’ misleading the House? If this had been Labour Ministers it would have been all over the front pages and Paxman and Humphreys would demanding an apology, but so far our forensic investigator, Britain’s answer to the Girl with the Dragon Tattoo, has only managed the pages of Inside Housing and not the Daily Mail.

I’m sure that erstwhile Jane Tennisons and Juliet Bravos on Labour’s front bench will pursue further enquiries in Parliament.

http://www.insidehousing.co.uk/community/blog/mind-the-gap/6512515.blog

(illustration: an inspector’s insignia)

Tags Housing Benefit, Iain Duncan Smith, Local Housing Allowance, Statistics

Blog Post

A nice little earner – or not?

Post author By Steve Hilditch
Post date November 15, 2010

Steve Hilditch

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The New Homes Bonus

As a country we have failed to build enough new homes for more than 30 years. The coalition’s scrapping of Labour’s system of regional housebuilding targets, which was only starting to have effect, has caused great concern. Now a little flesh has been put on the bones of their proposed alternative – the New Homes Bonus – in a consultation paper published on 12 November.

The core proposal is that each council will make its own decisions on the scale and nature of housing development, but they will be incentivised to encourage building through a grant that will match the council tax raised on new homes for the first six years after development. The benefit to councils (on current figures) over 6 years would be over £8,000 for a Band D property (using the national average) and over £10,000 for a band E property. An additional flat rate of £350 a year would be paid if a property falls within the definition of ‘affordable’ in PPG3.

Communities and Local Government department estimates that the cost will rise to over £1 billion a year in year 6 even on current housebuilding numbers, but it is likely to be significantly more if the scheme has the desired effect and housebuilding increases. A contribution to the cost will come through scrapping the current Housing and Planning Delivery Grant – about £250m a year for the first 4 years – but all other costs – ie £1 billion or more by year 6 – will come out of local authority Formula Grant, so there will obvious gainers and less obvious losers. Very little is said in the paper about the losers (ie those that will lose more in Formula Grant than they will gain in NHB) and how much impact the overall reduction in Formula Grant will have.

Despite the wealth of methodology in the paper, the government has no real idea how many extra homes NHB will generate and how much impact an incentive of say £8k a home over 6 years will have. Is that enough to overcome nimbyism and genuine local concerns? An estimate is made that by 2016-17 there might be an uplift of 8-13% from the base, but this is not convincing.

There is no guarantee that the grant will be used to help communities affected adversely by development or to support infrastructure. It can be spent in any way the beneficiary council chooses – and the document identifies only non-housing uses like council tax discounts, rubbish collection, and providing local facilities like swimming pools. Most likely in the current climate, it will be used to offset the general cut in Formula Grant that is taking place anyway as part of the CSR.

Will the scheme encourage affordable homes? The £350 enhancement for affordable homes appears plucked out of thin air. Who knows if this is a real incentive or not? Using the PPG3 definition of ‘affordable’ means that everything that is sub-market will be included, and there is no specific incentive to encourage homes for those most in need.

The scheme does not distinguish between different areas in terms of the need to build. The benefit will come to those with the greatest capacity to build on easy sites. Councils with little developable land or no need to build will be concerned about the overall impact this might have on the finances.

An interesting oddity is the intention that acquisitions that increase the availability of affordable homes would receive the £350 enhancement but not the core NHB. It is also suggested that the scheme might cover the bringing back into use of empty homes.

I would strongly urge everyone to read the consultation paper and to get comments in. We’d be delighted to report your views here on Red Brick.

Click to access 1767788.pdf

Tags Affordable housing, Formula Grant, New Homes Bonus