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Compromise and Council Houses

In part two of this three part blog contribution we continue to hear from inside the tent to what extent our planning system is truly representative and democratic. Do cries of ‘social cleansing’ hold any veracity, or does left-wing NIMBYism refusal to accept trade-offs manifest itself to the same effect?

Once upon a time, I would’ve stood on Reginald Street in Deptford in searing anger. Even with the land cleared and the hoardings up, I would still be bitter about what my colleagues had been put through. But today I’ve found myself mellowed. As I watch the diggers at work, laying the foundation for 117 new social homes, I wryly smile to myself. Today, the fight for these homes seems so easy, so tiny, so inconsequential. 

The old Tidemill school site on Reginald Road had long been earmarked for the development of new homes. Instead of allowing the vacated site to fester, Lewisham Council agreed to a ‘meanwhile use’ leased and the area was handed over to a volunteer community group to operate. With the land, they created a ‘community garden’. 

A ‘community garden’ is a bit of a misnomer, as it conjures up the image of an area open and shared by all in the neighbourhood. In reality, due to a lack of volunteers, by the time of its closure, the garden was overgrown, locked up, and open for a few hours each Saturday. Insiders say that a small clique living on well-heeled streets over in Brockley, operated the site as their own semi-private enclave. No big deal, we felt, because at least the land was semi-utilised.

The trouble only started when the council request the stewardship of the land to be returned so that our long-awaited housing development could get underway. Reneging on their promise to hand back the land when the ‘meanwhile use’ was up, the community group refused to hand over the keys. And thus, the ‘Save Tidemill Garden’ campaign arrived. 

It quickly snowballed. 

Opposite the development site, sits the Birdnest pub in Deptford. I like the boozer, but if I say it wears its counter-cultural chic a little too earnestly on its sleeve, you might get what I mean. It’s filled with students, old rockers and geezers, and was a perfect local meeting point for the Save Tidemill campaign.

Close your eyes and picture a row of wooden tables, on each one, sits a different segment of the Save Tidemill campaign’s coalition. 

  • Table 1: The founders of the garden, mostly your classic NIMBYs, primarily asset-rich and comfortable. They’ll miss their garden when it’s gone and they don’t want pesky social housing spoiling their Saturday afternoon sun-spot.
  • Table 2: Assorted Left-wing groups. Nearly all older NIMBYs as well, these lot are driven primarily by political opportunism and they want to find a wedge issue to campaign against the local Labour council (internally in the Labour Party, or externally). For this group, they’ll reject any council-led development programme from the pin-head of ideological grounds. Any development that is not 100% council ‘target rent’ is rejected, even if the private sale properties on-site are necessary to fund the building of the social homes. It means that in reality, they reject any new large-scale affordable house building.
  • Table 3: Eco-Nimbys, probably Green Party members, you know the ones — the type of people who weep over fallen trees on the HS2 path, despite HS2 being a piece of crucial infrastructure to increase our rail and freight capacity and reduce our over-reliance on private cars and lorries which has a huge knock-on effect on our nation’s carbon emissions and the death of more of your bloody trees.
  • Table 4: Anarcho-crusties / Green-Black Groups. A bit like the Eco-Nimbys but they are more inclined towards violence towards the man. 

The Save Tidemill campaign only got as noisy as it did because Tables 1 & 2 framed the building of this new social housing as corporate ‘ecocide’ and therefore managed to connect with Tables 3 & 4. The campaign itself was risible. Misinformation was spread in the neighbourhood and councillors who spoke up for the scheme were relentlessly attacked. Eventually, the rhetoric spilt over into direct action.

Cllr Joe Dromey, one of the few who were brave enough to face the misinformation head-on, would eventually be attacked on the street by masked protestors. Cllr Paul Bell, who led the scheme, would take his address off the Lewisham Council website out of fear of reprisals. He had been accosted in the street as well, while leaving a council meeting. 

But as nasty as the campaign got, I never felt like our plans were in jeopardy. Here were 117 new social homes, as well as 41 for shared ownership and 51 for private sale, replacing a ‘meanwhile use’ garden and an old and dilapidated block at 2–30a Reginald Road. The new green space on the development would be accessible to all unlike the Tidemill Garden, and the tenants of 2–30a Reginald Road would be provided brand new high-quality homes on lifetime tenancies. Those in housing need would be given what they deserved. The case was a no-brainer. 

Lewisham Council has a Residents’ Charter that guarantees all residents impacted by a regeneration scheme are given the right to remain on their estate and guarantees an increase in genuinely affordable housing. To me, these guarantees are not only morally right, but they also make political-strategic sense. 

Left-wing groups and other opportunist political opponents have desperately and repeatedly tried to leap into our estate regeneration proposals for political gain. And while they may have recruited a few new paper-sellers in the process of campaigning, they have failed to stop any major schemes.

Take the regeneration of Achilles Street, New Cross. Despite a campaign by left-wing NIMBYs spreading fearmongering and disinformation among tenants and leaseholders, an estate ballot returned 73% in favour of the regeneration. The likely outcome of this renewal will be 450 homes on site, with a minimum of 50% of the total homes built being affordable, and a minimum of 35% of the total homes built will be Council-owned homes for social rents.

Similarly, even Lewisham Council’s joint-venture with Grainger to build 324 new homes for rent off Besson Street in New Cross slid fairly comfortably through planning, with the ward’s left-wing councillors speaking in favour of the proposals. On the Besson Street scheme, 65% will be leased at market rent to fund the 114 homes which will be lease at London Living Rent. The scheme also delivered an array of other amenities for the area including a new GP surgery and community space for the New Cross Gate Trust. 

The left-wing NIMBY groups rejected Besson Street because London Living Rent is not social housing. Instead, these are genuinely affordable rents set by the average incomes in the Telegraph Hill ward. Each household will sign a secure 5-year tenancy that is automatically rolled-over if they want to remain. In Lewisham, we need to build all sorts of tenures, not just social housing, and these homes are designed and will cater to our key workers who will never be eligible for social housing. 

On the hoardings that line Besson Street today, someone has scrawled ‘stop social cleansing’. But in fact, these new homes will help key workers —  your nurses, your police officers, your school teachers, remain in our borough near where they work. Even more absurdly, the cries of ‘gentrification’ and ‘social cleansing’ were used for Achilles Street and Tidemill Garden. These schemes offer net-gains in social housing — they are a firewall against gentrification and help low-income families remain in our community. 

The left-wing NIMBYs have tried to peddle the falsehood that these estate regenerations are not supplying social housing because the new homes will be provided at London Affordable Rent — which is pegged at 2016 social rent levels. London Council target rent is now £105.87pw for a two-bedroom property, while London Affordable Rent is £158.85pw. The 13 residents of Reginald House who would be offered a new home on the development, would continue to be housed at their target rent. For the 104 homeless families being offered a new home, it’ll be a huge fall in rent and for many, the first time they’ve ever had a secure, decent home for their family. 

Affordable housing funding is extremely restricted by an austerity-driven Conservative government. But as this article highlights, in 2016, Sadiq Khan as Mayor of London, managed to negotiate funding from central government for new affordable homes. While funding for social homes, at target rent, were ruled out, the government did agree to fund new homes at Khan’s London Affordable Rent. London Affordable Rent is sent at 2016 target rent levels and is deemed a social rent. While target rent levels have fallen since, year on year – a plan devised by George Osborne to reduce the housing benefit bill — London Affordable Rent has stayed static, that’s caused the disparity. 

The long and short of it is that for these homes to be funded and built at all, they’ll need to be at London Affordable Rent. Working with a charitable provider and building at London Affordable Rent was the only way Lewisham Council could get this many genuinely affordable homes built at the Old Tidemill site. For activists, it’s a choice of viable developments, providing social homes at London Affordable Rent, or no new social homes at all. Sadly, I know where some groups would side.

The refusal of these left-wing activists to accept those trade-offs, reveals, more than anything else, just how out of touch they are with the lives of London’s precariat and working-poor. The median rent for a two-bedroom property in Lewisham is £365.75 per week, above the housing benefit cap. Moreover, ‘no DSS’ discrimination remains rife in the private sector. Many of our poorest residents cannot afford the private sector and if they can, they remain in overcrowded sub-par accommodation.

Even if new homes on Achilles Street and Tidemill Garden are more expensive than target rent council homes, they are seismically cheaper and more secure than the private sector. The homeless families moving into these homes will care more about a new chance in life than the fact that a registered charitable provider is supplying them a life-time tenancy and not the council. Nor are they likely to quibble about a rent far more affordable than their temporary accommodation or home in the PRS. 

Don’t let perfection be the enemy of the working class. 

And that’s why these campaigns do not work and never build traction beyond those four tables. Because their arguments are devoid from the lived-reality of the housing crisis and the trade-offs necessary to build new social housing. Despite our reputation, councillors are not daft. We clock that no young renters joined the chorus against the Tidemill Garden development at our local Labour meetings, even if they did follow the Momentum whip.

During Lewisham Labour’s manifesto working groups in 2017, it was noted that it was our young Momentum members who were the ones most enthused by our Besson Street plans. Not only did they like that the income generated from the scheme would help provide services for our residents, they knew from personal experience how life-changing it would be to move into long-term, stable housing in the private rented sector. Like me, they can only dream of a home at London Living Rent.

Councillors speak to residents in our wards all the time and we know that the overwhelming majority accept schemes like Achilles Street, Tidemill and Besson Street are positive. Of course, we still take precautions — we ensure we engage early on any estate regen project and we ensure the facts of a scheme are widely disseminated. On Achilles Street, we held meet-and-greet drop-ins to tackle misinformation. Yet when push comes to shove, sensitive and policy-compliant council-led schemes to build new social and affordable housing are going to have broad support.

While not as politically-heated as large estate regeneration, smaller social housing developments, such as estate-infills can be trickier. Faced by densification of their area without an offer of a new home, current tenants and leaseholders on an estate often take a ‘what’s in it for us?’ approach to the building of essential affordable housing. Moreover, infills often only remain viable if they are larger in scale than many residents are willing to accept.

However, colleagues, alongside the wider public, accept the trade-offs needed to deliver social housing schemes and policy compliant applications will often be looked upon sympathetically. Broadly, public and institutional support (i.e. amongst the council’s political group) work in tandem. It is why councillors can feel emboldened to champion our promised new social and affordable housing schemes and face down the political pressure from noisy campaigns to abandon policy complaint schemes.

But in the grand-scheme of things, I know that all these battles for social housing are small-fry. Local authorities do not have the resources to purchase new land to build social housing on. The scope of what we can achieve is extremely limited. Despite our good work, we can’t even build enough council homes to replace the ones we continue to lose from right-to-buy. 

In short, only the private sector is going to get us out of this housing crisis. While affordable housing programmes have institutionalised support, across the political spectrum market-rate builds are viewed with suspicion. This suspicion leads to a widespread lack of public support for market-rate builds and in my view, this in turn leads to councillors having a pre-disposition to be swayed by NIMBY-campaigns.

In part three of this series, I’ll explain that if we don’t accept this reality, and take a new approach to development, the housing crisis will never be beaten. We need to build a new consensus — one that agrees that a lack of supply (+ building in the wrong places) is causing our housing crisis and that we need market-rate developments at large scales that we cannot deliver without reform.

This is option two, and the only one left. 

<strong><span class="has-inline-color has-accent-color">Leo Gibbons-Plowright</span></strong>
Leo Gibbons-Plowright

Leo is a Labour and Co-Op Party Councillor for Forest Hill in Lewisham.

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Shared Ownership Will Not Provide All The Answers For Key Workers Hoping to Buy

The Government has made the startling admission that it does not know how many people have transitioned to full ownership under its Shared Ownership model. Despite not knowing how effective it is, the Government has set out its expectation that Shared Ownership will account for the “vast majority” of the home ownership homes it funds.

Whilst the proposed new Shared Ownership model will make it easier both for people to buy an initial stake and then to increase their equity in the property, for some, the uncertainty over exactly how long it will take them to fully own their home will still not suit their needs. If you buy an initial 10% stake, after 15 years of gradual staircasing at 1% you would still only own 25% of the home. Legal fees apply at each increase and if shared owners want to buy larger shares using the existing process then all fees (valuation and legal) remain their responsibility. However large their share is, tenants also have to pay 100% of service charges.

For some aspiring homeowners, this part-rent, part-own process remains complicated and unattractive. Yet with first-time buyer deposits jumping £10,000 last year to nearly £60,000, key workers and those on lower incomes will struggle to buy on the open market. Despite the return of some 10% deposit mortgage deals, rising house prices combined with a partial public-sector pay freeze make saving this amount of money completely unrealistic for many.

As we have argued before in this blog, the key to widening access to home ownership is addressing the difficulty in saving for a deposit. It is this that is blocking many renters who could afford mortgage repayments from being able to buy a home. This has been compounded by coronavirus. The Joseph Rowntree Foundation’s annual report on poverty highlights that 41% of private renters who have seen a drop in income since March have had to use their savings to make up for the shortfall; savings that they might have been hoping to use for a house deposit. Many others didn’t have any savings to fall back on; over two thirds of social renters and almost half of private renters in the bottom half of the income distribution had less than £500.

Rent to buy schemes address this hurdle by not requiring any initial deposit when people move into a brand new house. They also provide a clear and defined route to full ownership with tenants buying their home outright at a set 5 yearly interval. Paying only an affordable rent enables them to save more for a deposit than if they were renting privately. At Rentplus we add to that by giving them a gifted lump sum of 10% of the value of the property when they are ready to buy.

In the meantime all repair and maintenance costs are covered by the landlord and service charges are included up until the point they become full homeowners.

The model is open to aspiring buyers provided they are working or in training. They undergo a financial assessment of their likely ability to buy before being accepted onto the scheme. Generally, applicants need to be on the local housing waiting list or Help to Buy or Shared Ownership register to be considered and they usually have a local connection to the area. In some areas up to half of tenants have moved out of existing social housing; freeing this up to be re-allocated to those most in need. Over half of all our tenants are key workers.

Unlike the unknown effectiveness of shared ownership in helping people to fully own their home, this spring the first of Rentplus’ tenants will become 100% homeowners after just 5 years.

Whilst all tenants are currently on track to buy, inevitably down the line some people’s circumstances will change and not everyone will be successful in purchasing at the planned date. In these cases tenants can opt to renew their tenancy in five year increments up to 20 years. If at this point they still can’t buy, we will work with the council and housing association to support them to look for new accommodation. They will have still benefitted from a 20 year affordable rent.

Rentplus’ model is fully funded by institutional investment bringing in additional housing finance and enabling councils to direct their grant funding to delivering social rented homes.

The main constraint to the model is that demand outstrips supply as only a small proportion of local authorities have adopted it to date.

Homes England reported a 34% decrease in affordable home ownership scheme starts over the six months to September 2020. Whilst coronavirus was a factor, this highlights the much greater role that privately funded providers can play in boosting the overall number of homes for first-time buyers with no reliance on Government funding.

The Government and local authorities should do more to encourage the development of innovative home ownership models on a much wider scale instead of putting all their eggs in the unproven, shared ownership basket.

<strong><span class="has-inline-color has-accent-color">Steve Collins</span></strong>
Steve Collins

Chief Executive of Rentplus, the leading affordable rent to buy housing provider.
Steve has over 25 years’ experience in housing and development, both in private and public-sector organisations.

This includes working for the then Homes and Communities Agency where he had responsibility for the successful delivery of over 42 Government programmes with a combined value of c.£900m pa, aimed at accelerating the delivery of housing and public sector land across the country.

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Dangerous cladding: The government must end this crisis now

As Shadow Secretary of State for Housing, I am extremely concerned about the remediation of unsafe cladding on residential blocks and the impact this is having on leaseholders.

I have been contacted by pregnant women trapped in dangerous flats, elderly people unable to move into retirement accommodation and families on the brink of bankruptcy after receiving five-figure bills for a problem they did not cause. These are just a few of the heart-breaking stories now common across the country.

Because the government response has been so painfully slow, hundreds of thousands of leaseholders across the country remain trapped in unsafe blocks during a third lockdown, facing increasing interim costs. When you look at the knock-on effects, including those unable to sell or re-mortgage their property, the number of people affected is much higher.

Broken Tory promises

This week, the government announced another package of measures to try to fix the cladding scandal. While headline-grabbing figure of £3.5 billion is a huge victory for Labour and the campaigners across the country who have worked tirelessly on this, it will not protect many leaseholders from mounting debt.

For many of the people affected by this crisis, this latest announcement will feel like a betrayal. On at least 17 occasions, government ministers promised that leaseholders will not be left with the bill.

Sadly, these promises have been broken by this week’s announcement, which includes the detail that funds to fix buildings will only be given to those over 18 metres tall – and the residents of lower buildings will be forced to take out loans to pay to fix fire safety problems. You can watch my speech here.

This is not the first time that leaseholders have been let down in this this crisis. A year ago, the Chancellor said, “all unsafe combustible cladding will be removed from every private and social residential building above 18 metres high.” This has not happened. Buildings haven’t been able to access the fund. Nine of every ten pounds has not been paid out.

Many of these problems stem from a refusal to properly evaluate the risks. Three and a half years on from the Grenfell Tower disaster, the government still has not done a proper investigation of the number of buildings involved, the risks or the cost of reducing that risk. Until we know the scale and nature of the problem, any response will be ineffectual.

Labour’s plan

I am leading Labour’s response to this problem and am working with campaigners and specialists from across this country – and in other countries too – to get justice for those affected.

Last week I forced a vote in Parliament calling on the Government to: urgently establish the extent of dangerous cladding and prioritise buildings according to risk; provide upfront funding to ensure cladding remediation can start immediately; and protect leaseholders and taxpayers from the cost by pursuing those responsible for the cladding crisis. I am disappointed the government did not back the motion, they chose to abstain – despite many backbench Tory MPs speaking out to protect leaseholders in their constituencies.

I believe the UK Government must establish a National Cladding Taskforce to address unsafe cladding and protect leaseholders from the costs of remediation. The Taskforce should be underpinned with strong powers to establish the full extent of dangerous materials on buildings, prioritise them according to risk and ensure there is enforcement against those who refuse to undertake works. It must be backed with up-front funding and include a legally enforceable deadline of 2022 to make all homes safe. There is more on Labour’s plan here.

What’s next?

I spoke about the problems faced by leaseholders on Question Time last week, when a member of the audience spoke about how she is trapped in an unsafe flat, with no end in sight. I will be doing all I can to keep the pressure up and spur the government into action.

The next opportunity to force further changes out of the government will come on 24 February, when the Fire Safety Bill comes back to the Commons.

This date will be a chance for the Government to reflect on the failing of their latest announcement and bring forward a set of legally binding commitments to deliver on the promises they made to leaseholders. 

I am hopeful that Conservative backbenchers will also see sense and vote with us. I am particularly encouraged by the response from some Tories this week, who were vocal in their disappointment with Robert Jenrick’s latest announcement.

Last week, Keir Starmer challenged Boris Johnson on this during Prime Minister’s Questions. Justice for all those affected will continue to be one of my top priorities over the coming weeks and months.

<strong><span class="has-inline-color has-accent-color">Thangam Debbonaire </span></strong>
Thangam Debbonaire

Thangam Debbonaire is the Labour Member of Parliament for Bristol West and
Shadow Secretary of State for Housing.

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The Great Tory Planning Power Grab

Recent planning reforms by this government are nothing else than a power grab, and risk future housing and our response to the climate emergency – writes Councillor Johnson Situ.

It takes something special to unite councils (of all political colours), planning bodies and campaigners in almost uniform condemnation. In recent weeks, MHCLG has reached that feat with a string of announcements and reforms to planning, which as ill-judged as they are impractical. Robert Jenrick has given these proposals lofty names such as ‘Planning for the Future’ or ‘Right to Regenerate’ but scratch beneath the surfaceand this is nothing more than a power grab from a national government intent on deregulating planning at the cost of genuinely affordable homes being built and our ability to respond to the Climate Emergency.   

Much has been written about the impact of another top-down reform to the planning system. Firstly, it is important to recognise that the planning system does need reform. Secondly, a decade of cuts to local government has meant that the planning head count has significantly decreased over the years. Yet we must recognise the plan making process can be made far more nimble and better at including communities from the onset if planning departments are adequately resourced.

However, a recent report from the LGA which showed that more than a million homes granted planning permission in the past decade still had not yet been built highlights a wider issue that needs resolving.

Equally, our vision for building high quality, genuinely affordable housing must be coupled with our commitment to tackle the climate emergency – which includes driving up environmental standards in residential homes. That ambition is dependent upon a framework that empowers local authorities to make planning decisions that promote positive environmental and public health outcomes. However, proceeding with the recent announcement risks degrading local authorities’ ability to promote high quality, sustainable housing through the planning system. 

So, if the government were interested in planning reforms that supported councils to meet the housing crisis and respond to the climate emergency, here are some things they could announce, and if not, policies the next Labour government should introduce instead:

A build out clause in granted permissions

The Government’s new Right to Regenerate proposals, which seem to amount to privatising public land by stealth, are deeply flawed. Many councils such as Southwark have ambitious council homes building programmes and are using land to build council homes. It is also silent on land banking from developers. Surely, any reforms to planning should enable planning authorities to refuse planning applications based on record of building out permissions?  

Enable plan making that is responsive to the local community and changing environment

It is a well-known fact that the current plan making process takes too long, and a running joke that by the time most plans are completed they are up for renewal again. This is particularly concerning for our response to the Climate Emergency and enabling councils to develop the right policies to encourage carbon saving technology at the right time. In recent years we have seen significant strides made in the renewable energy technology and communities have come together to develop co-operative energy organisations, all of which needs a national planning framework that actively supports it.

A report by The Committee on Climate Change in February 2019 calculated that if the current 27,000-50,000 homes built in timber frame in recent years increased to 270,000 annually, this would absorb and store three million tonnes of carbon. Now this will not be the answer to meet the entire housing need, but creating a national planning framework that enabled local authorities to strengthen plans to respond to modern methods of construction, should be a priority.

Local Authorities are ready to go further and in recent times many have already strengthen their requirement for environmentally friendly energy, and increasingly car-free developments are a fixture in more local plans. Here in Southwark, we have committed to a net zero development across our key masterplan area by 2030.

Development in the area will be car free and the promotion of walking and cycling as well as electric buses, taxis and commercial vehicles will help tackle air and noise pollution.  We are developing a District Heat Network linking new developments to the South East London Combined heat and Power plant, which will deliver both significant savings in C02 emissions and cheaper energy costs for residents. This will complement a range of low carbon energy options on new build homes across the masterplan area

A spatial planning system, which gives local authorities the ability to have a more formalised say in transport infrastructure

One of the key recommendations from Labour’s Planning Commission was the need for a spatial plan which provided a national framework but also placed a formal role on the local authority. The message of addressing regional inequality will be ignored if local communities get no say on whether their area has better transport infrastructure, and that applies for inner cities as well as northern towns and coastal areas. Whatever your view is on Heathrow’s third runway, it is absurd that the local authority had no formal input within the decision making, when local residents will have to live with the impact on air pollution and traffic in the area.

In short, if this government were serious about meeting the housing crisis and responding to the climate emergency, it would strengthen the role of local authorities within its most recent proposals. Instead it has continued with a decade-long vision to deregulate planning. The stakes are high, and we will need to be bold to build the social and genuinely affordable housing the country needs, as well as responding to the climate emergency. Reheated policies from the 80’s will not work and that is why Southwark Labour, like many Labour authorities, will be fighting these new proposals and campaigning tirelessly to elect a Labour government.

<strong><span class="has-inline-color has-accent-color">Johnson Situ</span></strong>
Johnson Situ

Johnson is the Labour Councillor for Peckham Ward (Southwark) and Cabinet Member for Climate Emergency, Planning and Transport

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How does planning perpetuate generational inequality?

Credit: Ewa Horaczko London Photographer
In part one of this three part blog contribution we hear from inside the tent to what extent our planning system is truly representative and democratic. Or whether hyper-local Not-In-My-Back-Yard (NIMBY) opposition perpetuates the generational inequality we should all oppose.

It was early in the evening when I realised things were not going as I had planned. You could cut the tension with a knife. I started to tot-up how I thought the votes would go; for, for, against, against, don’t know, I…don’t know. 

I swivel my chair to turn away from the public gallery. There’s nothing worse than catching the eye of someone giving you the stare. ‘These people must hate me’, I think to myself, ‘they must think we are faceless droids, nodding through applications without a care in the world’. 

But tonight we’re not nodding through an application, we’re on the verge of blocking 63 new homes. 

I am sitting in Lewisham Council’s planning committee. On a usual night, I would sit in faint bemusement as colleagues act out a charade — we ask for clarification, we look again at that the cross-sections, we offer apologetic looks to objectors and we firmly ask our officers to make sure all planning conditions are enforced. It is a charade because we know the application is policy compliant before the night begins. The material grounds for refusal may be as flimsy as renters’ rights, but “we’re gathered here tonight” because 5 or more people have complained about an application’s impact on their backyard. After the usual impassioned rant on immaterial considerations or a pained lament to our hands being tied, councillor’s will grant planning permission.

But tonight, is different. This application has not only generated considerable opposition, but the application itself has (potentially) solid grounds for refusal. I can see my colleagues getting tetchy. Objectors have been and gone, and as usual, a scatter-gun approach has been utilised. Locked and loaded, we’ve been pummelled with round after round of complaints: this area can’t take any more homes (it can), this will increase parking pressure (most occupants won’t own a car), this site can’t accommodate this many homes (it can). However, two complaints gain traction. 

The development would replace an underutilized plot of land — specifically, a scruffy-looking light industrial estate, and replace it with 63 good quality homes, 20 of which are affordable (14 social, 4 shared-ownership) and a much-needed increase in new business space (an 110% uplift). While it was argued that the application would improve biodiversity across the site, the redevelopment would mean the felling of 38 trees. Moreover, some nearby social housing blocks would experience overlooking from the new flats. At the closest pinch point, the buildings would be 3.8m away from each other, rising to 7.2m away at its furthest. It was acknowledged that for a small number of neighbours, they would no longer be looking out onto trees but at a ‘green wall’ on the side of new flats. 

To me, the choice was clear about the actions we needed to take for the greater good. Over the next 20 years, London will need to build a million new homes. It is a steep task, and that will only be made possible if politicians are brave enough to be straight with the public about our need to densify and be able to communicate the trade-offs we all need to make. 

It is hard to express in words the pain our housing crisis causes, walk down any street in London and you’ll be surrounded by lives touched by it. Most councillors have seen the worst cases, the homeless families trapped for years in bedsit ‘temporary accommodation’, or the damp-infested, unlicensed HMOs we occasionally investigate. But our housing crisis touches even those who are from the outside, ‘comfortable’ — families with steady employment who know that they’re one Discretionary Housing Payment delay away from losing their home; the key workers who can no longer afford to live near their place of work, and the young professionals locked out of homeownership for life — all are transient, cycling through extortionate and insecure properties, priced out of neighbourhoods they briefly called home, simply existing, in a private rented sector not fit for purpose. 

The site of this application was an urban setting, and if London is to densify as needed, we will need to accept properties overlooking each other. While a few flats would have their amenity impacted, were we really going to act for the few and not the many? If we were to block this, how long would site stay underutilised, undeveloped and unviable? Years at least. 

And while we heard from the developer who told us about the quality of the design, the urban greening and green wall. And while officers mentioned our housing targets as they authoritatively flicked through their slides. We never heard from those for whom those targets aren’t just numbers, but chance in life, a future. We never do.

I’ve never once had a homeless family attend a planning committee. I sometimes wonder whether any private renter has ever spoken against an application at one of my committees? It takes time to get involved in the planning system, read papers, submit responses and attend the committee. It means we hear from the time-rich. 

Our case-by-case discretionary planning system encourages people to get involved in the planning process only when a case directly affects them. The system encourages decisions to be based on a hyper-localised impact assessment, based on feedback from a relatively small number of people whose amenity will be negatively impacted. The system allows councillors to be swayed by localised concerns in the febrile heat of a civic hall. In essence, the system offers the ideal conditions for Not-In-My-Back-Yard (NIMBY) voices to be successful. 

For, for, against, against, for..I think.. oh no, they’re going to vote against! 

Several councillors are pushing hard on the loss of trees and objectors saw their opportunity. They brought up our climate emergency declaration and opined that these majestic trees — not accessible and at the back of an industrial estate, were essential oxygen masks for the area. The fact that old light industrial units were being replaced by energy-efficient new homes and business space was overlooked. More importantly, the fact that densification near transport hubs (like this site) is an important mechanic in encouraging a model shift to more sustainable transport methods, thus improving air quality and lowering carbon emissions long-term, was overlooked. 

Again, the bigger picture was being missed and this isn’t a failure of individual councillors, but something embedded into the design of our planning system. 

Another colleague rose up and said he’d vote against. Gulp, that’s another. For, for, against, against, against. He couldn’t let these homes be built due to its impact on the nearby social housing tenants. He’d listened to the homeowners who said they were not speaking for themselves, but on behalf of others, those less fortunate than themselves and who were hit hardest by this development. 

16 new social homes were not going to be built because a few existing social tenants would now look at a wall of a block, rather than some trees. Again, this is a product of a system that gives councillors selective feedback. We only hear from those set to lose from any given scheme and never those set to gain. 

In the end, I moved to support the officer’s recommendation for approval and the application was granted planning permission via a deciding vote by the Chair. But I was left reeling from what I saw, and my anger would only grow as I read about far larger policy-compliant schemes, being blocked by councillors across London. 

In writing this piece, I hope to show how and why applications that comply with a local plan can be rejected by your local councillors. I hope to give people an insight into how our planning system’s much-vaunted democracy, tilts the system unfairly towards the well-to-do and perpetuates generational inequality. Despite facing huge housing pressure, we face a system that provides fertile ground for hyper-local opposition to block developments. 

When drafting our local plan, comments from my colleagues often take a broader view, looking at the needs of our borough as a whole. The need for economic growth, densification and regeneration, and the need to tackle housing need and combat gentrification by building more is accepted. These things are then balanced and traded off against ensuring good design, protecting unique heritage, and ensuring manageable density for the area’s infrastructure.

Moving away from our ‘one-shot’ approach to planning engagement is good for democracy. By ‘front-loading’ or ‘up-streaming’ planning consultations, we can help achieve a more representative and democratic planning process. Less time-rich demographics can provide feedback at a single point when it is necessary. All in all, it will mean that planners and politicians will get a more holistic view when drafting their local plans, in an environment that offers them the space to see the bigger picture.

Moreover, the proposed move to a rules-based planning system and away from a discretion-based system is positive. It will mean evenings like I’ve described above, will become a thing of the past. 

Defenders of the status quo remind us that almost 9 in 10 residential planning applications are granted permission at committee-stage. However, this is a form of survivorship bias, ignoring the countless applications for new homes that were never submitted because the risks of being rejected by planning officer or councillors are too great. The issues in our symptom run far deeper than those outlined here. In fact, councillors directly blocking new homes is only the tip of the iceberg.

<strong><span class="has-inline-color has-accent-color">Leo Gibbons-Plowright</span></strong>
Leo Gibbons-Plowright

Leo is a Labour and Co-Op Party Councillor for Forest Hill in Lewisham.

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Ending rough sleeping needs more than a sticking plaster

In December, I gave evidence to the MHCLG select committee about the impact of Covid-19 on rough sleeping.  My message to them was we desperately need investment in front line housing advice and long-term funding for genuinely affordable housing to really tackle the complex causes of rough sleeping. The pandemic has shown is what is politically possible, but short-term sticking plasters really need to become longer term solutions – and now is the time to make that case to the Government.

At the start of the lockdown councils were told by the government to do ‘whatever it takes’ to support our communities. One of the actions we took was to quickly house rough sleepers. Prior to the pandemic hitting rough sleeping had been steadily increasing after a decade of austerity, having been all but eliminated under the last Labour government.

The ‘Everyone In’ initiative made local authorities responsible for housing rough sleepers and those at risk of rough sleeping. This was regardless of priority need, local connection or recourse to public funds. 

We stepped up to the challenge in Tower Hamlets, the borough I represent. Around 260 individuals either rough sleeping on the streets, or at imminent risk of rough sleeping, were given emergency accommodation. 49 of this group had No Recourse to Public Funds (NRPF). We placed entrenched rough sleepers into newly procured commercial hotels and emergency B&B accommodation. Statistics are one thing but each number represents a life transformed and having a roof over your head unlocks access to so many other services and life chances.

Now we face a situation of uncertainty about future funding to support this cohort of people. While the Government has called for councils to come up with a plan on how to move rough sleepers on to the next stage of accommodation, we have again stepped up, but we need funding to back us all the way.

The Next Steps Accommodation Programme, a £400m national fund, offers some help but the costs we face are substantial. Housing benefit claims won’t cover the cost of the support for a group with complex needs.  Ongoing announcements about additional funding streams create pressure on already under resourced teams to write ‘bids’ and applications for resources for projects that are so clearly needed. This relationship between local and national Government is breaking and needs urgently fixing.

Now we are in a further lockdown, with high levels of Covid cases and temperatures plummeting, we need the Government to make suitable provision. On a practical level normal provision such as hubs will not work as self-contained units are still required. If the Government does not get this right it will lead to an increase in infections. A decade of austerity has shown that if you simply turn off the funding taps in one area it leads to further pressures on other public services with longer term impacts on other services like the NHS.

It’s taken a time of crisis for the Government to step in and give councils the funding they need to tackle rough sleeping and they desperately need to address the long-term undersupply of genuinely affordable housing. If something good can come out of the pandemic, it’s eradicating rough sleeping. The Government has a real chance to not undo the progress we have made.

<strong><span class="uppercase"><span class="has-inline-color has-accent-color">Rachel Blake</span></span></strong>
Rachel Blake

Rachel is the Deputy Mayor for the London Borough of Tower Hamlets. She was elected to represent the Labour Party for Bow East Ward in May 2014 and appointed to Cabinet in July 2015.

Rachel has held Cabinet Member roles for Regeneration, Planning, and Air Quality. Rachel is now the Cabinet Member for Adults, Health and Well-being.

She has previously been called in as an expert witness to the Housing, Communities and Local Government Committee on its inquiry into the long-term delivery of social and affordable rented housing.

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Mind the Construction Skills Gap

There is no hope of a house-building renaissance without first addressing the systemic construction skills gap. But what can we do?

This fetishisation of the academic – at the expense of the vocational – is undermining our ability to build homes. When I was the vice-Chair of a Board of Governors at an all-through school in 2016, Nicky Morgan – then Education Secretary – introduced Progress 8. The basic tenet of Progress 8 is that schools are encouraged to take the most academic subjects. There are too many hairdressers, as the Local Government Association once said.

Instead, Morgan wanted more young people to study English, mathematics, the sciences, geography, history and the languages. Given the measures are included in school performance tables, schools are incentivised to take them – whether they’re the right choices for young people or not.

But what about bricklayers, carpenters, roofers, scaffolders, electricians, painters and decorators? What about the legion of young students – particularly working-class boys in deprived schools like the one I oversaw, who come from chaotic households, detest books, but are good with their hands?

With a vocational college less than a mile from the school I was based in, at the time it was hard to see why we shouldn’t encourage vocational courses. But the system is designed as such you ignore Progress 8 at your peril. A better attainment record – on paper – might encourage prospective parents and pupils to come to the conclusion that our school was the place for them and that has serious funding implications.

In hindsight, perverse incentives like these have, I suspect, wider consequences. Exacerbating skills gaps across our vocations – construction in particular – is a serious barrier a housebuilding renaissance. This is a self-inflicted crisis.  On top of our indifference to the vocational, the centralised skills system, cuts to the Adult Education Budget, and the closure of adult education centres have all meant that the UK plc is increasingly unable to respond to the needs of employers.

In 2018, 44% of small-to-medium housebuilders dubbed the construction skills shortage a major barrier to building more homes – climbing from 27% in 2015 – according to a Federation of Master Builders (FMB) House Builders’ survey. Though concerns over skills shortages fell dramatically the year after for the first time in five years to 26%, the skills gap remained the third greatest barrier to housebuilding, and housebuilders were clear that they expected the issue to get worse before it gets better. Employers were also critical of the work-readiness of our young people. Research by the Construction Industry Training Board (CITB) in 2018 found that over half (51%) of employers felt that school leavers weren’t prepared for the world of work. Business leaders across the industry have long felt the education system is decoupled from the needs of their businesses.

Without labouring the point, there is also greater uncertainty about the existing supply of construction workers. The non-UK workforce accounts for 14% of the construction industry – and over half (54%) in London – according to CITB. The scale of the exodus of Romanians and Bulgarians – more than half of them leaving the construction industry between 2015 and 2017 – should concern anyone who wants to see more homes built, not less.

The speed needed to tackle the skills shortage is all the greater, given the scale of the industry’s ageing workforce. According to the Royal Institute of Chartered Surveyors, 45% of the workforce are over 50, meaning that employers will need a steady stream of employees: 400,000 each year, equivalent to one recruit every 77 seconds.

Clearly the picture is complex and the challenges manifold. While the skills shortages that have receded are likely to be temporary, there is greater uncertainty on the horizon. This is compounded by the general incompetence of a government which has been wholly unable to fix the growing mismatch between the construction industry’s skills demands and a falling number of people gaining construction qualifications.

The introduction of construction T Levels in September 2021 is probably a good start, but the Government has wasted too much time already. The Government allocated £64 million to tackle skills shortages in the digital and construction industries as part of the National Retraining Scheme in 2017. Fast forward to 2020 and the National Retraining Scheme has been incorporated into the £2.5 billion National Skills Fund, yet the talk of construction has been quietly dropped.

The Government long abandoned its promise, as part of its 2015 Conservative Manifesto – and again in 2017 – to deliver 3 million apprenticeships by 2020. In 2018/19 there were 23,000 apprenticeship starts across Construction, Planning and the Built Environment – just 1,000 more than in 2010. A generous reading may make the case that since 2011/12 it has consistently crept up from 14,000 starts, but that would be clutching at straws since it plummeted by 8,000 the year before.

As a result of reform to the apprenticeship system, there has been a sharp increase in the number of providers but it has made little dent in the number of apprenticeship starts. There are several conclusions – and solutions – we can tentatively draw from these facts. The overriding reading of the evidence is that the UK doesn’t have the skills to build its way out of the housing crisis. How do you scale up housebuilding if you don’t have the workforce available to do the work?

The challenge requires a cross-departmental approach on issues ranging from immigration, skills and apprenticeships, the curriculum, and the role of business and further and higher education. I suspect neither the Department for Education (DfE) nor the Ministry for Housing, Communities and Local Government has paid due attention to the chronic skills shortages in construction – partly because the DfE has designed in vocational snobbery.

That the Government done away with the Skills Minister in June 2019 and a replacement was only found in February 2020 does nothing to dispel the accusation. As we look ahead to the national recovery, the Government has a real opportunity to transform how we design and deliver skills training. Those decisions mustn’t be made in the corridors of Whitehall – they must be made collaboratively, with employers, councils, education providers, and they must be aligned with local economic strategies.

There must be a greater focus on attracting talent at home too. Without attracting new entrants to the sector and upskilling the existing workforce, the Government’s target of building 300,000 homes each year by the mid-2020s will remain out of reach.

The Government must also get more construction apprenticeships on board – and quickly. It must forge a narrative which doesn’t fetishise the academic over the vocational, and in doing so must encourage women and ethnic minorities to shatter the glass ceilings that exist in an otherwise male, principally white, industry. The failure to address construction skills gaps now will see the new homes, schools and hospitals needed for future generations unbuilt.

<strong><span class="has-inline-color has-accent-color">Jack Shaw</span></strong>
Jack Shaw

Jack is a Senior Policy Researcher for the Shadow Minister for Local Government and has previously worked for the Local Government Association. He is also a member of the London Labour Housing Group Executive Committee.

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Shared Ownership: why we deserve far greater transparency

Glossy ads present a rosy picture of shared ownership. But some first-time buyers are discovering the reality doesn’t live up to the rhetoric. Why are shared owners demanding greater transparency from housing associations and the National Housing Federation? This article breaks down some home truths about shared ownership, and what one housing campaigner is doing about it.

Shared ownership isn’t shared and it isn’t ownership. It’s arguable to what degree it constitutes affordable housing. Yet housing associations market this complex tenure with the same degree of levity with which a company might sell, say, comic books or whoopee cushions. The National Housing Federation (Nat Fed) marketing campaign promotes shared ownership schemes with slogans including: ‘Painting every wall luminous green’ and ‘Cooking in your pants on Sundays’.

My younger self would have enjoyed the jocular tone of Nat Fed advertising. My older self thinks the campaign does home buyers a great dis-service by failing to live up to laudable claims of ‘myth busting’ and ‘explaining what shared ownership means’. Taking out a mortgage could be one of the most expensive decisions first-time buyers will ever make. And, if they get it wrong, the consequences can be catastrophic.

An advertorial published during Shared Ownership Week 2020 included a quote from first-time buyer, Laura: “I think a lot of people don’t understand it, they think there’s a catch. There isn’t.” And there’s the problem in a nutshell… It’s perhaps a moot point exactly what constitutes a ‘catch’ but there’s no shortage of possibilities.

For a start, shared owners are often surprised to discover they don’t ‘own’ their home in any meaningful sense. The ‘part buy, part rent’ slogan is widely used in promoting shared ownership. But legal experts suggest that such terminology is potentially misleading as it misrepresents the legal form of the tenure. One law firm, Walker Morris (in a 2017 article ‘Shared Ownership: Risks and Rewards for Lenders’) say: ‘It is incorrect, and therefore misleading and potentially an offence in contravention of the Consumer Protection from Unfair Trading Regulations (2008) for housing associations, landlords, developers or lenders to advertise or refer to shared ownership schemes as ‘part buy, part rent’, or indeed by using any other terminology or slogan which suggests that the customer purchases anything other than an assured tenancy leasehold interest at any time prior to the 100% staircasing stage’.

The Nat Fed campaign appears to confuse a marketing strategy (defining ‘it’s yours’ as ‘not sharing’) with the legal reality (it’s not ‘yours’ and there are therefore risks of forfeiture, possession, and loss of or reduction in equity).

Shared ownership isn’t even that good an investment. The Homes England model contract specified a minimum lease length of 99 years for flats up until 2016, and 125 years thereafter. Shared owners have been shocked to discover a need for expensive lease extensions with no benefit other than to maintain the market value of their home. And, of course, some simply can’t afford to do so, and find themselves in possession of a devaluing asset. The London Mayor recently addressed this issue by unveiling a plan to ensure all shared ownership homes built in the capital as part of the new Affordable Homes Programme are sold with a 999-year lease as standard. But this doesn’t address problems faced outside London and also by legacy owners, many stranded with an increasingly unsuitable and undesirable housing product.

It gets worse. Shared owners have no statutory right to lease extension unless they’ve staircased to 100%. I contacted Mike Shone, Homes England’s Monitoring and Reporting Manager, in 2019 to ask what percentage of shared owners achieve full staircasing. The response: ‘Unfortunately this is not something that is recorded by Homes England or the Regulator of Social Housing’. But Parliamentary Research briefing CBP-8828 reports: ‘The increasing costs of shared ownership have made it more challenging for households to progress to full ownership. Around 4,000 households staircased to 100% ownership in 2018/19, equivalent to 2.3% of all shared-equity homes owned by housing associations’.

What about much vaunted affordability claims? These appear reliant on comparison with private rental or open market purchases over a relatively short timescale. They don’t factor in whole life cycle costs such as lease extension; rents that increase annually regardless of whether average market rents are increasing, static, or even declining; and full 100% liability for service and management charges regardless of the % share purchased. (Fire safety remediation costs are too complex to go into here but are self-evidently a source of huge emotional and financial distress for affected shared owners).

Housing sector professionals appear to believe that lawyers should provide information on such issues. Wanda Goldvag, chair of the Leasehold Advisory Service (LEASE), interviewed on Radio 4’s consumer affairs programme You and Yours in January 2019 said: “lawyers have an absolute duty to explain complex clauses to people”.

But it’s hard to understand such reliance on lawyers. Research funded by the Leverhulme Trust (Exploring experiences of shared ownership, 2015) found that: ‘Modern conveyancing practice is not equipped to provide information to buyers about the specifics of shared ownership leases. […] That increases the onus on providers to provide relevant, simple and clear information to buyers’.

Shared ownership is pitched as the ‘affordable’ route into housing. Marketing rhetoric implies that ALL buyers benefit from shared ownership as a ‘step onto the housing ladder’. But this is over-simplistic and fails to recognise that the wider housing market creates both winners and losers.

Moreover, a rapidly rising property market will benefit buyers who interpret ‘a step onto the housing ladder’ as obtaining a first property as an investment generating a gain to help buy their next property, but will disadvantage buyers who interpret it as an opportunity to purchase their forever home in staircasing instalments (the original intention of the scheme per the 1979 Conservative election manifesto). And the converse is equally true.

Whilst risks and opportunities arising from property markets are clearly not restricted to first-time buyers purchasing shared ownership homes, this demographic is particularly vulnerable to financial difficulties and poor outcomes arising from inadequate information and advice.

Housing associations have a dilemma; too much transparency could compromise achievement of sales targets. It’s pragmatic to assume housing associations will continue to place emphasis on short-term benefits to shift units. And, unless there are fundamental changes to the shared ownership model, many shared owners will continue to discover that shared ownership isn’t anywhere near as affordable as those glossy ads suggest.

Could the shared ownership model be improved? Could it be made more affordable? To some degree perhaps… A sector-wide commitment to cease taking advantage of the 2019 Zucconi precedent (a discretionary change in the method for calculating leasehold extension premiums which creates a windfall for housing associations, but pushes lease extension even further out of reach for many shared owners) would help some. Widespread adoption of the London Mayor’s proposal for 999-year leases as standard would render lease extension costs obsolete (except for increasingly disadvantaged legacy owners, of course!).

But here’s the rub… housing associations’ overall funding model has historically depended in part on profits arising from shared ownership schemes (for example, the receipts from staircasing shares sold at current market value rather than original market value) to generate cross-subsidy for social rented homes. So the financial interests of individual shared owners are directly in conflict with the wider objectives of housing associations. Shared owners are discovering they are, in many respects, the benefactors of affordable housing rather than the recipients they thought they were. It’s complicated!

If I had to choose one key policy reform…? “To stop using the term affordable for housing that isn’t” (a phrase I’ve stolen from Tom Murtha). To stop using the term ‘shared’ for housing that isn’t. And to stop using the term ‘ownership’ for housing that isn’t. Though that may not happen anytime soon. First-time buyers, shared owners and leaseholders deserve better. Which is why I’ve created a Crowdfunder project to raise funds for an independent shared ownership website with comprehensive information, analysis, and signposting to sources of professional expertise and advice. The Crowdfunder ends at 2.52pm on 9th February 2021.

Click here: https://www.crowdfunder.co.uk/shared-ownership-resources

<strong><span class="has-inline-color has-accent-color">Sue Phillips</span></strong>
Sue Phillips

Sue Phillips is an accountant (ACCA) who spent much of her career working in the not-for-profit sector. She is now semi-retired. She says she never expected to become a housing campaigner! 

She purchased her own flat via a shared ownership scheme in 1999, staircased to 100% in 2013, and completed a lease extension in 2020.

Her own experience of shared ownership led her to start campaigning in 2019, with a particular focus on greater transparency on potential long-term costs and risks of shared ownership. She campaigns under the moniker Shared Ownership Resources.

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Housing as a universal human right

When Leilani Farha, the former UN Rapporteur on the Right to Adequate Housing, spoke at the Labour Housing Group (LHG) Connected 2020 Fringe meeting, she argued that housing should be a universal human right. Is this achievable and if so how do we organise to achieve it? And will it bring an end to homelessness?

Her organisation, The Shift, set up in 2016, and the Municipalist Declaration of Local Governments for the Right to Housing and the Right to the City which was signed by 11 city managers across the world in 2018, plan to reclaim and realise the fundamental human right to housing:

THE SHIFT recognizes housing as a human right, not a commodity or an extractive industry. The Shift restores the understanding of housing as home, challenging the ways financial actors undermine the right to housing. Using a human rights framework, The Shift provokes action to end homelessness, unaffordability, and evictions globally.

In the film Leilani exposes the role that private equity firms play within the private rental market in city after city, and country after country, pushing up rents so that ordinary people are priced out of their own communities, alongside the mass replacement of homes where people had lived with buildings bought as an investment opportunity and now kept empty.

We are getting used to seeing the centres of our British cities hollowed out by investors buying up properties which they don’t intend to live in, but as the film illustrates, the scale of it is staggering. Two London examples are the multi-million pound unoccupied houses left empty in Belgravia, resulting in almost entirely traffic-free streets; and the replacement of council flats in one estate in Southwark – which previously had over 3000 residents – by homes that are left empty because they are simply seen as assets, mainly with foreign owners. The presenters talked about these as “dead zones”.

Other cities around the world are experiencing this form of social cleansing. In Toronto, tenants took part in a rent strike because so few repairs were being done by the new owners of their blocks, at the same time as rents were increasing by vastly more than average family incomes[1]. Tenants called the rent increases “eviction by any other name” and experienced harassment and threats for being involved in the protest.

In Kreuzberg in Germany, rent increases were seen to be forcing out both tenants and small businesses, to be replaced by corporate businesses and multi-national food companies. Footage shot in Milan, New York, Valparaiso (Chile), and Barcelona showed the threats (and violence) to families resisting being forced to leave the areas and communities they lived in.  The trend is even affecting Sweden, with its strong social democratic tradition.

We learnt tenants in many cities around the world now have the same property owner as their landlord, a private equity company called Blackstone which is now the largest property owner in the world. Their typical way of working appears to be the same across many countries: buy up blocks of flats, use plans to renovate them to force rent rises by far greater amounts than the cost of the renovations, and replace as speedily as possible the tenants who cannot afford the new rents. Blackstone also makes sure that they are pretty inaccessible to tenants, an office open just a few hours a week, as in a Swedish example.

The film describes companies buying up huge swathes of homes in inner cities as “vultures”, and “monsters than no-one can see”. What makes this all the more distasteful is the fact that private equity firms use investment from our pension funds. So our own pensions are involved here, without our knowledge or permission. Also, a chilling example was given from Italy of how Mafia money is laundered through housing investment.

Fortunately, some people can see what is happening, and are trying to stop dirty money from destroying our cities and shoving people out of the way.

41 cities included London, Manchester and Birmingham, inspired by Leilani’s campaigning work, have set up the Cities for Adequate Housing Group and signed the Municipalist Declaration of Local Governments for the Right to Housing and the Right to the City. Together and individually, they are working to combat the destruction of their cities. Several mayors talked about how they are buying back empty properties, surely what needs to be done in London, whilst others are bringing in laws aimed at stopping companies from buying up large tracts of land or property. Control of the growth of Airbnb is also part of the story, given that this sector also serves to drive ordinary people out of their cities.

Working to create an entitlement to housing as a human right is clearly the only way forward. Whilst we are waiting for a Labour government, we must urge as many cities as possible to join in. As the Cities for Adequate Housing Group says: “local governments cannot stay on the side-lines and need to take a central role.” In order to achieve the UN’s Sustainable Development Goal for housing[2], we all need to sign up to a worldwide commitment for the right to housing.

If we want the next generation to be able to live in the cities we currently occupy and love, something has to change. And we need urgently to explain to them what is happening so that they can help us make those changes.

Labour Housing Group Executive has agreed that we will work, with the Front Bench team, towards establishing the Right to Housing as a human right in the UK. This will be a fitting campaign for 2021, to celebrate our 40th year of existence.

<strong><span class="has-inline-color has-accent-color">Sheila Spencer</span></strong>
Sheila Spencer

Sheila has been Secretary of the Labour Housing Group (LHG) since 2018, having re-joined LHG Executive after a gap of many years.

She believes that housing is a critical issue across the country and that Labour has great housing policies – but many people, including many members, do not yet know how Labour intends to solve the current housing crisis when next in power.

Sheila wants to see Labour in the forefront of people’s minds when they consider what needs to change. She has worked all her life in housing – in the areas of homelessness, supported housing and housing need. Sheila was a city councillor in Newcastle and is now retired.

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<strong><span class="has-inline-color has-accent-color">Andy Bates</span></strong>
Andy Bates

Andy is a long-standing member of the Labour Party.  He is a member of the  Old Southwark and Bermondsey CLP.

Andy is on the executive of the London Labour Housing Group. For LHG Executive Committee, he is promoting and co-ordinating LHG members going out to speak to CLPs and branches about housing issues.

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[1] Over 30 years, rents in Toronto have gone up by 425% compared to 133% for average incomes.

[2] SDG11: “Make cities and human settlements inclusive, safe, resilient and sustainable” by 2030

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First Homes should be affordable to local median earners

As many commentators had predicted, a concerted lobbying campaign by many local authorities and members of parliament has led to the first signs of a softening of the government’s wider reform of the planning system. It seems that ministers are firmly in listening mode, as they are starting with a review of perhaps one of the most controversial aspects of the reforms – the revised housing targets for each individual planning authority.

The “housing algorithm issue” has tended to dominate the broader debate about the proposals, but it is only one of a wider series of concerns that ministers need to consider when assessing what further amendments they need to make.

Our greatest policy concern is the issue of First Homes and the potential effect that focusing on homes created by this policy would have on the delivery of other affordable housing. In high-value areas, such as inner London, even at discounts approaching 50%, they will remain out of reach for most of those for whom they are intended. Furthermore, prioritising them over other forms of affordable tenure will result in a loss of social rented and other genuinely affordable homes, which are required to meet London’s housing need.

Our response is not one of outright opposition to the policy, as it offers a viable way to expand homeownership opportunities in many parts of the country. However, the policy is unworkable in very high-value areas due to affordability, so we suggest a potential exemption from the policy in these areas.

That exemption should be based on an “affordability lock” – First Homes should be affordable to local median earners. This would effectively mean that they would not be the default affordable housing delivered unless, say, they were affordable to 80% of local household incomes and where it can therefore be shown that they meet local housing need.

If First Homes do not meet these criteria, the locality should be exempt from having to deliver them and should instead deliver other forms of tenure that are affordable to local median earners. This would cover the entirety of the inner London market, given the underlying high residential values.

In high-value areas such as inner London, shared ownership is already unaffordable and First Homes will have the same issue, while traditional social housing is in short supply and available only to those in acute housing need. In such locations, intermediate market rent should be the principal affordable housing tenure delivered to support median earners. These intermediate homes can provide a steppingstone into homeownership, low-cost or otherwise.

So, while it is clear that for the government the issues relating to their proposals are all about the numbers, we have to be equally clear that it is also about the type and tenure of the homes provided, not just how many and where.

<strong><span class="has-inline-color has-accent-color">Olivia Harris</span></strong>
Olivia Harris

Olivia has been appointed Chief Executive of Dolphin Living since April 2017. Previously, Olivia was Finance Director at Dolphin Living, providing financial and commercial oversight on a wide range of property and related projects, including debt and fund raising.

Olivia is a Chartered Accountant and has worked for more than 15 years in the property industry and is Chair of the Westminster Property Association.

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