Cheap rented homes "not part of the debate"

Inside Housing reports Richard Blakeway, the Mayor’s housing adviser saying that London councils will not have to deliver new social housing to meet the affordable housing targets they are negotiating with mayor Boris Johnson: ‘We’ve been very clear that we are decoupling the intermediate/social split from the negotiation over the affordable targets. It is not part of the debate at the moment,’ he said.
 
For decoupling read relegating.
 
Underneath the debate about the abandonment of the policy that fifty per cent of new homes should be affordable, the issue of affordable social rented housing has been the one that has most exercised right-wing Tory authorities. Take this example from 2006. An application from Genesis Housing Group referred to Ken Livingstone in July 2006 for the redevelopment of the Prestolite Factory site in East Acton included 148 affordable rented homes, 33 per cent of the total development. Following the intervention of the now Tory Hammersmith and Fulham Council under Stephen Greenhalgh, this number was cut to just 65. When the Housing Corporation refused to fund a scheme on this basis a further change was made to 92 low rent homes, but this was still a third down on the original application. Ken Livingstone commented at the time that “Hammersmith's actions have the stench of Shirley Porter’s regime at Westminster Council in the 1980s. It is completely unacceptable for any Council to turn down the offer of desperately needed affordable rented homes - especially when this contravenes planning policies.”
 
To make real progress to deliver for Londoners the Mayor has to stand up to backward and reactionary positions like that taken by Hammersmith in this case. Compare the progressive approach taken by Ken Livingstone with that of Boris Johnson. His first test on this issue over the summer was posed by – you guessed it – Hammersmith and Fulham Council.
 
Inside Housing takes up the story: ‘The White City development, in Bloemfontein Road, provided the first test of Mr Johnson’s promises. A month after his election the developers, Building Better Health, removed all social housing from the planning application. Shortly afterwards, Conservative led Hammersmith & Fulham Council – which owns the site and has long argued that it needs no social homes – approved the new plan. Mr Johnson’s officers at the Greater London Authority were unimpressed. In a 15 July report they branded the removal of all social housing from the plans “unacceptable”. The homes, they argued, would be next to a park, health services, and schools – an ideal spot for new social housing. City Hall had two weeks to decide whether to block the plans. Mr Johnson was apparently caught between his officers’ advice and the wishes of his political allies. Hammersmith & Fulham leader Stephen Greenhalgh served on Mr Johnson’s forensic audit panel examining the London Development Agency and was consulted on the mayor’s housing manifesto. Within weeks the GLA officers decided the scheme was acceptable after all. In a second report, produced on 1 August, they concluded: “The zero provision of social rent remains disproportionate, however… planning benefits arising from the scheme are also disproportionate…”. Deputy mayor Ian Clement confirmed that the GLA would not intervene.’
 
Johnson’s first act when faced with a challenge from a Tory council trying to wriggle out of its responsibility to provide social rented accommodation was to overrule his own planning officers and let the council do whatever it wanted.
 
During the Mayoral election, Labour MPs including Karen Buck published a dossier on the errors, poor costings and plans to benefit the better-off that dominated Boris Johnson’s housing manifesto, saying that his housing policies made him “Dame Shirley in a suit.”
 
The consequence of having a Tory Mayor is the abandonment of pressure to deliver on the social housing part of the housing equation. Johnson and Blakeway are giving the green light to Tory boroughs to ignore their responsibility to provide these social rented homes.
 
It is an attack on the interests of thousands of Londoners most in need. City Hall may believe that social rented housing is “not part of the debate at the moment” but Progressive London will be campaigning to ensure it is.
 

 

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Comments (5)

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Here we have the essence of the Thatcherite legacy, one to which Gordon Brown has become inevitably glued.
Pre-1980, 70% of people were in rented accommodation, mainly local authority. It meant that people had financial stability and the words 'negative' and 'equity' were never used in the same sentence. Not only has the privatisation of housing brought ruin for thousands, let alone those who are trapped in a high mortgage, but also every government has been subject to the housing market's fortunes with middle-England casting its verdict on whether they are well of or not based on speculative house prices, rather than feeling secure in their homes.
Londoners moving to the capital have depended on the buy-to-let entrepreneurs, who have been stung by present market conditions and are defaulting, often putting their tenants in jeopardy. What a contrast with the local auhorities, who even with in some cases investments in Icelandic banks are still quite robust.
Progressive London must tie itself to the mast of a return to a high level of local authority housing, a rejection of 'right to buy' which has meant a right to homelessness for many.
In addition, the capital's growth depends on having a strong infrastructure of which housing surely is a major part.
howard turner , November 15, 2008
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This must be a key issue for Progressive London. We need an emergency Council House buiding programe similar to that we saw after World War 11. This will not only help the many 10,000's on local authority housing lists (and especiely young people stuck in their parents homes in their 20's and 30's!) but also help with the economic recovery of London and the UK.

I would urge all interested in this issue to attend the national Defend Council Housing Conference (DCH)on Tuesday 25th November Conference 10.30-4.30pm University of London Union.
Details at: http://www.defendcouncilhousing.org.uk/dch/

Neil Williams
Respect National Council
Neil Williams , November 18, 2008
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A blog from Inside Housing published earlier this week reinforces the concerns abou the downgrading of rented housing.
http://www.insidehousing.co.uk...e=6501893

Now that the housing strategy has been launched, the Evening Standard's report summarises what is wrong with it when it says that 'Mr Johnson's strategy represents a shift from the previous administration's focus on providing more social rented housing towards the Thatcherite dream of greater home ownership.'
http://www.thisislondon.co.uk/standard/article-23589917-details/Boris:+50,000+cheap+homes+pledge/article.do
E Too D , November 20, 2008
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The Labour group on the London Assembly say the Mayor will not be able to deliver the 50,000 affordable homes London desperately needs that without the political will and tough targets.

From a press statment issued yesterday (20 November) from Labour on the Assembly:

While welcoming the commitment to deliver more environmentally friendly and family sized homes for London, the Labour group on the London Assembly said the Mayor has missed the point and that the economic downturn means that now, more than ever, his strategy should be prioritising much-needed affordable rented housing.

Nicky Gavron said: "The government have given Boris billions to boost London's housing market - it is crucial he gets this right. The impact of the credit crunch on every aspect of the housing sector cannot be underestimated - yet the demand for housing, particularly affordable rented housing - has never been higher. Over a third of a million Londoners are waiting for social housing yet the Mayor's housing adviser has made it clear they will not impose any target for rented homes on London councils.

"Without political leadership and direction from the Mayor, the record of many London councils in office shows that they will simply fail to deliver affordable housing for their residents. Barnet has almost 18,000 people waiting for an affordable home to rent, yet last year delivered just 10 units. Wandsworth has almost 9,000 people waiting yet delivered just 20 new homes. This is their record and it is just pitiful. If anything the Mayor is giving boroughs like Barnet and Wandsworth even less incentive to deliver.

"Of course we should be helping people get on the housing ladder and encourage low-income ownership schemes, but the stark fact is there are over 9,000 low-cost homes lying unsold and empty - the bulk of which are in London. Until the housing market stabilises and there are mortgages available, these homes will stay empty and unsold. At the same time, Londoners are crying out for low-cost homes for rent. The Mayor is kicking away the first rung of the ladder for the thousands of Londoners on housing waiting lists. These lists are only going to increase in the next few years."

Ends.
Progressive London , November 21, 2008
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Boris Johnson's abandment of the Londoners who are in desperate need of social rented housing is callous and appalling. Could I just point out that this comes on top of sweeping changes to welfare and social housing brought in by the government, advertised as 'increasing choice', 'empowerment', and other fine spin. In fact the combined effects of these policies amount to a sustained attack on social housing and those who have to rely on it. Rents are rising towards government 'targets', and hikes in service charges follow where landlords switch to 'variable' service charging. Property sales and market rentals are being introduced to existing social housing estates; these losses to social rentals are not all being replaced. It will make good business sense for landlords to concentrate these non-social rent lettings and sales on the more salubrious estates in better locations where they will obtain higher prices and rents. These estates will have a much higher percentage of 'better-off' residents, more likely to vote for extra services when 'tenant empowerment' in the form of estates service level choice starts. Those on low incomes that are above 'benefits level' (low paid workers, elderly with small private pensions ...) are already wondering how to afford their higher rents (before the target level has been reached). With extra services charges too, they will soon be 'choosing' to move to cheaper flats on estates in moe deprived areas, with fewer amenities and services. The government is about to 'scrutiny' housing benefit for social housing soon, so no doubt the extra services will no longer be covered by HB, and these tenants will also be shifting downmarket.
London social housing tenants are beginning to recognise that these social housing reforms are in fact going to further polarise housing estates in London, sifting out the poorest and more vulnerable from the more desirable estates. These latter estates will increasingly become oases for those able to afford full purchase, shared ownersip, key worker and other 'affordable' rentals. On top of this, the non-housing benefit tenants will have to face regular monitoring, whether annual or bi-annual, with landlords prying into their financial affairs to see if they can afford to pay more rent, or buy a tiny percentage of a property.
The problem is not just Boris Johnson, though his housing policy is damaging enough. All social housing tenants, housing association and council tenants, share the threats to their security of tenure and the affordability of rents and services for decent homes in a safe environment.
v st clair , November 27, 2008

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