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Raise the dented shield

Labour did stunningly well all over the country and we have many new Labour Councils who I hope will promote a strong housing agenda: more genuinely affordable homes, regulation of the private sector, searching out a humane response to dealing with the ending of the homelessness safety net and the cuts to housing benefit.
Labour Councils will face huge difficulties with little money and a Government which is following rigidly a high rent, no rights housing policy in the desperate hope that the market will respond.  They will have to make appallingly hard choices but, as Neil Kinnock once said, better a dented shield than no shield at all.
The tragedy of London is that it is a Labour city but the Tories walked away with the spoils: the mayor holds all the housing powers and what little money is left.  It bodes ill for Londoners: there will be no shield at all for them.  Housing output will be nowhere near affordable, the proportion of earnings spent on housing will continue to rise, and the private rented sector will continue as the last unreformed and unmodernised great industry.
Andy Slaughter was spot on with his analysis of the real Tory agenda: few if any planning consents for new social rented housing; demolition without affordable replacement of social housing estates in valuable places; selling council properties without like-for-like replacement; and insecure and unaffordable new tenancies becoming commonplace in the social as well as the private rented sector.
Personally I’d rather have H’Angus the monkey as mayor than Boris Johnson.  At least H’Angus campaigned on the policy of giving children free bananas when he won Hartelepool.
We will all have our theories as to why Ken Livingstone lost against such a benign political background.  They say familiarity breeds contempt and there might be a bit of that after 40 years of seeing Ken on the London stage.  There is no doubt that Boris Johnson the personality is a phenomenon unmatched in British politics (even if he makes my skin creep).  His next target is Cameron and I’ll enjoy watching that battle unfold.  But Johnson could have been beaten.
I certainly don’t agree with Peter Kellner and Tony Travers on the BBC (why don’t they have to declare their financial interests before commenting?) that it has nothing to do with the media.  The personal vilification of Livingstone, the anti-Ken propaganda handed out to Londoners every day (called the Evening Standard), the supine broadcast media who just follow the papers wherever they go, and the overwhelmingly negative Johnson campaign, all had their impact.  The media bias sets agendas: Ken’s tax affairs became a huge and genuinely damaging issue (unfairly in my view) whilst Johnson’s extensive contacts with the Murdochs hardly got a mention.  Although at its peak it was excellent, the London Labour campaign machine seemed to take ages to get organised, with several changes of personnel.  Add the damage done by the ‘hold your nose and vote Ken’ brigade, a few genuine backstabbers (Sugar, Clarke and Labour Uncut come to mind), and the result is the narrowest of defeats.  If I can campaign for James Callaghan in 1979 and Tony Blair in 2005 these people can campaign for Ken Livingstone in 2012.  It’s called political discipline and it means, whatever you do, you don’t let the Tories in because they really hurt people.  Ken could have done better but we all could have done better, and we should have won.  Let the lessons be learned.
The one thing that cannot be disputed is Ken’s housing record.  I got annoyed by the Shelter and NHF line that the candidates weren’t talking about housing.  Ken was, from the off and every time he got to his feet.  Almost his first policy statement was about the private rented sector, the lettings agency and the London Living Rent – it was unexpected, innovative, and deserved much more coverage.
For 40 years, from Lambeth to Camden, from the GLC to the GLA, Ken has promoted housebuilding and genuinely affordable housing for Londoners.  He has never been embarrassed to talk about Council housing.  Given no housing powers and no money in 2000 when first elected mayor, Ken transformed housing prospects in London in an extraordinarily creative way, leaving in 2008 with a clear housing strategy for the capital and the biggest affordable housing programme in its history.  It was a strategy for all: he invented the whole business of intermediate housing as a planning tool to help people in the middle as well.  The achievement is nothing short of phenomenal.
This may be Ken’s last election campaign but I doubt if it is his last campaign.  If he and Boris are both one of a kind, give me Ken’s kind every time.

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Where Tory housing policy is going next

The borough of Hammersmith and Fulham has become the laboratory for national Government housing policy.  Where H&F goes first, the Government will follow.  And the policy at present is to deliver no extra social rented housing despite the borough’s housing needs.
Here, the Labour MP for Hammersmith, Andy Slaughter, sifts through the evidence.  
Housing Benefit costs in London are so high because there is a shortage of affordable housing, and in particular social rented housing.  Under Gordon Brown the Labour Government began to build new social homes, but this has now almost entirely stopped.  The explanation, at least for the cuts in Social Housing Grant, is austerity economics, although other projects to stimulate the construction industry are going ahead.
But this is not the true picture.  Tory policy is actually to eradicate social rented housing, or confine it to perhaps 10% of current tenants, those with physical or mental health conditions requiring supported housing.  Just as the blueprint for current policy (as enacted in the Localism Act) can be read in the 2008 publication, Principles Of Social Housing Reform, so the practice in  Hammersmith & Fulham (‘Cameron’s favourite council’ and the ‘apple’ of Eric Pickle’s eye) shows how council and housing association homes can be gradually extinguished nationwide.
Pickles and Shapps were both briefed on the 2008 discussions and Shapps attended the seminar which drew up the key elements of H&F policy and discussed social rented housing in disparaging terms.
Here are the four main techniques currently being used to socially and politically change the population of the borough.
1.     No Planning Consents For Social Housing
At least 13,000 new homes will be given planning consent in Hammersmith & Fulham this year on current plans.  Not one will be an additional social home for rent.  This is despite Boris Johnson’s London Plan requiring 25% social rented homes in any such new development, a waiting list of 8,000 families many of whom live in very overcrowded or unfit dwellings and have waited five years or more for re-housing, and only 6% of private accommodation likely to affordable to HB claimants under new benefit regulations. H&F is one of the councils moving residents to Derby and Nottingham.
2.     Demolition
The first major demolition scheme is of 761 good-quality, popular, recently-refurbished houses and flats in West Kensington
After much lobbying the Council did agree to ‘replace’ the demolished flats somewhere in the development area (which will include 7,500 new flats).  Whether residents, many of whom are freeholders or leaseholders, elderly people or temporary tenants will take up this offer is doubtful, given the site will be developed over 20 years.
The development is mired in controversy, from the £105 million windfall the Council will get for delivering vacant possession, the dubious nature of the developer and lack of due diligence, or the refusal to take residents’ views into account.  They voted 3:1 against the scheme in last month’s consultation on a 70% turnout but the Council is pressing on
3.     Selling council properties
300 council homes are currently being sold by auction to raise in excess of £100 million.  These appear to be selling undervalue, and can only be sold to developers rather than prospective residents under Government rules.  One featured in the BBC programme Under the Hammer.
The first call for the proceeds of sale is likely to be the purchase of leasehold and freehold interests in West Kensington so vacant possession can be delivered to the developer, despite earlier claims that they would be reinvested in housing.
4.     New tenancies
The Council’s new tenancy strategy, which we have been leaked in draft but will not be published until after the Mayoral Election, takes advantage of the Localism Act, the housing sections of which mirror Principles of Social Housing Reform.  

  • Short term (2-5 year) tenancies with no right of succession,
  •  Up to 80% market rents (an increase typically of 2-300%)
  • Discharge of housing duties permanently into the private sector, almost exclusively outside the borough
  • Allocation of Council accommodation no longer on the basis of need.

The real housing argument is about building homes for social rent for households on low incomes.  The Tories clearly do not want to build any.  The argument about Housing Benefit costs versus displacing thousands or families, and the economic and social costs that will follow, is a false choice.

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New Homes Bonus not fit for purpose

By guest blogger Bill Peters
The latest planning application figures published by CLG give little comfort to the view that we are seeing a resurgent housebuilding sector emerging on the back of the New Homes Bonus and generous government support to the housebuilding industry.  (For background on the NHB see this House of Commons Library paper and previous Red Brick posts).
It is of course hard to disentangle the NHB impact given the data is not readily available and it sits at odds with the more traditional housing starts and completions data sets.  The Hansard record of the debates between Shapps and the eagle eyed Nick Raynsford (including for example this one)  point up the fact that the NHB output includes empty homes coming back into use  and a large number of new one bedroom flats which seem either to be conversions of existing larger  and possibly multi-occupied homes plus new student residences.
Either way the evidence regarding the incentive effects of NHB are very poor to date raising the question about whether it is fit for purpose as a central plank of housing supply policy.
Alongside this is the funding and support given to the housebuilding industry in a variety of schemes – FirstBuy, NewBuy, Build now Pay Later, Get Britain Building and more. There appears to have been no stated agreement with the housebuilding industry about increasing output on the back of this support, rather it has been used to underpin existing balance sheets and to secure viability much in the same way as help to mortgage lenders did, though there at least targets re small business lending were imposed.
As matters stand we have the flimsiest of housing policies backed onto a weak housing market. If and when the economy and that market recover any vitality the government is going to look very exposed.
No doubt Grant Shapps is hoping by then he will have got another job. However if the current unravelling continues – the Newham relocations being the latest  – he may never get one!

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Scattering people like confetti

It has been an extraordinary week of goings-on since the news broke that Newham Council had written to organisations as far away as Stoke to try to get homelesss households rehoused.
Grant Shapps was straight on to the airwaves trying to make political capital – pointing out that Newham was Labour and denouncing them for doing this during an election (bizarrely also denouncing the BBC for raising the story during an election period, as if news isn’t news).  Labour MP Karen Buck pointed out that Tory Westminster was sending people to Luton, and Westminster Labour Leader Paul Dimoldenberg showed that the Council was working with its Tory neighbours Kensington and Chelsea and Hammersmith and Fulham on proposals to send people to Nottingham and Derby.

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Mr Shapps plays politics

If Grant Shapps accuses you of playing politics, you can be sure that he is guilty as sin of doing that himself.

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Housing gets a look-in as Boris laughs off cyclist deaths

Mayoral debate 19 AprilI had the pleasure (?) of attending last night’s Sky debate between the London mayoral candidates.  It may not have been great but it was 1000% better than the Newsnight effort with the awful Paxman.  And well done Sky for focusing mainly on policy and starting the questioning with housing (even though they didn’t pick my effort) and being the first media outlet to give housing and homelessness issues some air time.

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Second city a key battleground where housing will matter

With such a strong focus on the London mayoral election, it is hard for others standing for election in the rest of the UK to get a look in at present.  But there are many other vitally important contests where housing issues will be an important factor.  On May 3 elections will take place for 131 English, all 32 Scottish and 21 Welsh councils – full list here.
Birmingham will be a crucial bellwether election, where the contest is close and Labour is challenging the Tory/LibDem Coalition, but even here the media seems more interested in the referendum on whether to have a mayor than it does in the issues that directly affect people’s lives, like housing and education.

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56. The magic number that should condemn Boris Johnson to a huge defeat.

If policies alone decided Elections, Ken Livingstone would be romping home as the next London Mayor.
Instead he faces a photo finish with Tory Boris Johnson. ‘Look at Boris, isn’t he a laugh’ is no way to run one of the world’s five greatest cities. But his celebrity status only tells half the story: Johnson is a cunning and ambitious right wing Tory who is running an unremittingly negative campaign with such hugely powerful media support that even people on own Ken’s side start to believe some of the things that are said.
Ken has always had an extraordinary ability to define the policy needs of the moment. On fares, he saw that the need in the 1980s was to use spare capacity and get people back on the tube again; by 2000 the need was for massive investment in new services; and now in 2012 the need is to put money back into the pockets of struggling Londoners.

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Let's build the houses – quick!

By guest blogger Monimbo
As well as being the catchy phrase that was evidently used on a 1945 Labour election poster, Let’s Build the Houses – Quick! is a new publication by Cathy Davis and Alan Wigfield from Spokesman Books.  It looks at the failures of recent housing policy and calls for a massive new building programme from the next Labour government.
Red Brick readers will sympathise with the main line of argument, which is that Labour didn’t build enough social housing, the Tories are doing much worse still and the main component of a sensible housing policy should be to put that right.

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Ealing tries to make sense of the mess of Tory housing policy

Ealing Council should retain its commitment to social rented homes and security of tenure in its own stock.  That’s the foremost recommendation from the report of the Council’s Housing Commission, published this week after a year of research and debate.