“Social housing is for losers”

Zoe Williams, Guardian, today:

High earners will no longer be eligible for “subsidised” social housing, and will instead have to pay “market rates”, the chancellor has announced. George Osborne speaks directly to the nation from the pages of the Sun on Sunday in a column that doesn’t actually use the words “clampdown” or “crackdown”, but those are the terms that crop up in all the reports, so we can assume a briefing note somewhere, in which the jargon of tackling crime is deployed to describe people who have the brass neck to rent social housing and have jobs.

This is the first strand of the narrative: that social housing is for the vulnerable, and anybody not vulnerable has no business with it. It follows that aspirational people, hard-working families, strivers – real people – wouldn’t ever want to be socially housed, because they would know it wasn’t intended for them.

The language is all about support (“In times of economic hardship it is more important than ever that social housing helps the most vulnerable in society,” began the consultation paper in 2012), but the underpinning principle is that the state has no business being a provider of ordinary, decent housing to ordinary, decent people. It should instead be thought of as the houser of last resort.

That’s a pretty standard Thatcherite line, but there’s more: what counts as “high income” is a household wage of £40,000 (in London) or £30,000 (elsewhere). The Joseph Rowntree Foundation last week released their minimum income standard figures for 2015: the MIS is reached in a citizen’s jury style: a sequence of small groups are asked to figure out the least a person would need to live an acceptable life. It’s not intended as a poverty threshold, and it’s not as basic as food, clothes and shelter (it includes the category, “social and cultural participation”), but there’s also no frivolity on it.

The most recent calculation was that a couple with two children would need to be earning £20,024 each in order to reach the minimum. In other words, what Osborne calls a high-earning household is actually, in London, one that is only just managing to get by – and outside London, £10,000 per annum shy of an acceptable life. This is a pretty extraordinary manoeuvre, an apparently serious attempt to persuade the nation that a little money is actually a lot of money.

A rather pompous idea in the consultation document is that servicemen and women should take priority on social housing lists; but anybody above the rank of level-three private would, if married to someone on the same salary, immediately be “clamped down upon” and required to pay “market rent”.

The third element of Osborne’s story is this “market” of his: social housing is subsidised, while the price of private rental stock is the true price, the natural one, reached by the irresistible logic of the market. Of course, social housing is only subsidised in the cost of its creation: it then pays for itself in two or three decades of rents. It only looks cheap in comparison with private rents, which themselves aren’t arrived at by market imperatives at all, but are the result of three decades of governments subsidising landlords with housing benefit.

The chancellor’s tableaux, in which high-earning chancers, who shouldn’t be in social housing in the first place, must have their rents brought into line with the private rents around them – otherwise, and this is the best bit, it is not fair on those hardworking private tenants – is wrong, in all the usual, useful ways. The message is to forget the state (unless you are a loser); resent your neighbour (he is probably a high earner masquerading as a low earner, to get that social flat you’re subsidising with your taxes); and trust the market (where prices are created elegantly, neutrally, perfectly, like physics).

Like so many of these measures – the closure of the independent living fund, even the bedroom tax – I sincerely doubt that this will save the money they claim it will, and sometimes doubt that it will save any money at all. Rather, it’s about changing the atmosphere, the commonly held assumptions: life is hard and you’re on your own.

I spent the entire coalition complaining about things on practical and/or human terms: whatever they say they’ll save, they won’t, and this hits the wrong people, and that is inhumane, and what are we punishing disabled people for anyway, and how much is this parsimony going to cost when it explodes down the line? All of that served, by some strange jiu jitsu, to reinforce the Conservatives’ opening proposition, that the country had been mired in a project of human kindness for far too long, which the state could no longer afford.

So while it is useful to critique the bones of this plan, in the way a crossword is useful to pass the time, the vital bit is to refute the underlying principles: the state isn’t over; your neighbour isn’t a crook; the market isn’t magic; life doesn’t have to be hard; we’re not on our own.

http://www.theguardian.com/commentisfree/2015/jul/05/tories-social-tenant-council-housing

CPRE on housing

From the blog of Susie Bond, Independent councillor, Feniton

I have been banging on for years about the naivety of assuming that releasing more greenfield land for housing will lead to a big increase in housing supply. The big house builders, who dominate the market to an unhealthy extent, have no great interest in significantly increasing supply. They will build the number of homes they want to build and which they think the market will support; but if they are allowed to build them in the countryside they will do so, rather than building them in towns.

Now CPRE’s housing researcher, Luke Burroughs, has written Getting Houses Built, a report that pretty well confirms this view, backed up by plenty of hard evidence. It strongly suggests that questions of land availability or housing targets, which dominate both debates on housing and the politics of planning, are side shows relative to the question of who is going to build the houses.

There is an increasingly influential narrative on housing, familiar to any reader of the Times or Financial Times, that goes something like this. We need to build 250,000 or more houses a year, around double current output. There may be lots of brownfield land, but some of it needs remediation or is in places people don’t want to live. The need is urgent and if we are to solve the housing crisis we must develop more greenfield land, in particular the land around the towns and cities where people most want to live. That means building in the Green Belt and reforming planning policy so that local people cannot stand in the way of necessary development.

It is surprising how few of the clever people peddling this line stop to ask who is going to build the houses, surely a first order question that must be answered before we consider the second order question of where the houses should go. Once we start to build 200,000+ houses a year, we may need to make difficult choices about where they go. But until we sort out how to get them built we will continue to fall short however many impossible targets are imposed (there have been many) or planning reforms introduced (there have been many and the Chancellor is now promising more) or impossible targets imposed (ditto).

The analysis in Getting Houses Built is not anti-developer. The big house builders act rationally and in the interests of their shareholders. It is not their fault that in Britain, unlike much of Europe, land acquisition and house building is left almost entirely to private companies. They can make big make profits but they also bear significant risks.

The need for developers to maximise profits on each housing unit has seen them adopt business strategies which focus on land trading as much as on actually building houses. Once they have secured land, they build at a rate that will hold up prices. This puts extra pressure on the countryside as land still to be developed on a site with planning permission is removed from the estimate of a local authority’s housing land supply, meaning that it has to allocate land or approve new developments elsewhere.

Getting Houses Built has a number of proposals for improving things. It argues for giving local authorities a bigger role in acquiring land by reforming compulsory purchase provisions and implementing ‘use it or lose it’ measures against those (generally not house builders) who are sitting on land without developing it. The intention would be to remove from the system some of the volatility that suppresses supply. It would also have the effect, potentially, of improving design and encouraging custom building by SMEs.

One of Luke’s earlier reports, Better Brownfield includes a case study of Vauban a 40 hectare, 2,000 home urban extension to Freiberg in Germany. The local authority bought the land at close to current use value; ensured a tramline into Freiberg; then sold the individual plots to small builders and groups of residents. It is hard to imagine similar developments in England, and that is a pity.

The report argues for making the development process far more transparent, including through the compulsory registration of all land ownership, options and sales agreements with the Land Registry. At present, land is often traded, as it were, under the counter. Much of it does not enter the open market, making it hard for small builders to get a look in. Developers buy between 10 and 20% of their land from each other, and having bought a parcel of land the new owner will often renegotiate planning permissions, further delaying the process of getting houses built and, in many cases, lowering the quality of schemes and the number of affordable homes in it.

If they really believe that a lack of developable land is the main thing holding back house building, it is amazing that the advocates of planning reform are not keener to throw some light on the extremely opaque business of land trading.

Transparency should extend to the vexed question of ‘viability’. Negotiations around viability delay many developments, with house builders whittling down planning obligations (design standards, the number of affordable homes, support for infrastructure) on the grounds that they make a scheme unviable. But there is no agreed methodology for assessing viability and much of the data is redacted on grounds of commercial confidentiality, making it impossible for a local authority to assess its accuracy. There is now a growing ‘viability industry’, with agents incentivised to reduce developer obligations.

The report proposes that in order to increase transparency and speed up house building, there should be an open book approach to assessing viability. Guidance should be given on assessing viability, with a single methodology to reduce uncertainty and give greater clarity to developers (who are obliged to game the system as it now stands), local authorities and land owners.

Finally, the report has recommendations for improving the identification of potential sites for new housing. Only 8% of planning permissions for new houses are for sites of under 10 units. These tend to be developed much quicker than larger sites (22 months from planning permission to completion, compared to an average of 47 months for schemes of more than 250 units). Much more effort should be made to identify small sites for development (CPRE hopes to do some work on this).

If the Government is serious about building more houses while at the same time fulfilling its manifesto commitments to protect the countryside, it should seriously consider the practical proposals in Getting Houses Built and other recent CPRE reports on supporting small and medium-sized builders and improving the viabilityand quality of brownfield development. We really are trying to be constructive. Alternatively, it could take its lines from a handful of think-tanks who want to have yet another round of planning reforms (‘one last push’, as generals used to say a hundred years ago). This will be diverting. But it is unlikely to result in a single extra home being built.

https://susiebond.wordpress.com/2015/07/06/getting-houses-built-a-view-from-the-cpre/

EDDC Cabinet agenda – 15 July 2015

All 203 pages of it:

Click to access 150715-combined-agenda.pdf

Far too many important discussions to mention here – best look at the papers though pages 175-177 on Local Government Ombudsman complaints (particularly those upheld in different local districts) make interesting reading. And then the report on Freedom of Information requests from page 178 -180 is an almost whitewash analysis of current difficulties.

The situation with the Information Commissioner (who recently called East Devon unhelpful and discourteous and of submitting misleading documentation, is discussed under the heading of “Review of recent request for information decisions” – itself perhaps somewhat misleading!

Basically the report is whining, self-serving and contains no insight whatsoever as to the council’s failings. No-one is named (only designations) and EDDC’s correspondence reveals a total lack of admission of responsibility for massive failings of all kinds.

The only recommendations are that EDDC needs a second FoI officer and when they are deciding if a matter should be kept secret another EDDC officer should read the documents and comment!

Meetings about sale of beach huts to rich people tomorrow

Tuesday 7 July

In Seaton at 2 pm at Town Hall
https://www.facebook.com/groups/498639013619794/

In Sidmouth at Kennaway House
https://www.visionforsidmouth.org/calendar/2015/july/the-future-of-east-devons-beach-huts.aspx

Selling beach hut leases to highest bidders – meetings in Sidmouth and Seaton

Basically, EDCC wants to give notice to all current beach hut tenants and sell 5 year leases of sites only to highest bidders – local, not local, individual or business or investors.

They have 300 beach huts and a waiting list of 300. No attempt to create more sites – just flogging off current sites (some used by families for decades) to the highest bidder.

Brave New World!

East Devon: “pensioner pocket”

” …West Somerset had the highest projected proportion of pensioner households by 2021, with nearly half (47%) of households there expected to be headed by someone aged over 65.

North Norfolk, East and West Devon, East and West Dorset, the New Forest, South Lakeland, the Malvern Hills, Ryedale, the Derbyshire Dales and the Cotswold district were also on the list. …

… Here are the areas of England where over 40% of households are predicted to be headed by people aged over 65 by 2021 according to the NHF (urban areas are specified as such, with the remainder classed as being rural):

… East Devon: 44.5%”

http://www.westernmorningnews.co.uk/Rural-West-pensioner-pockets-young-driven-house/story-26841095-detail/story.html