Social Housing Weekly - 02 September 2024

Spot the difference, take 2

Last week, Peter and I discussed how different MHCLG really is from the Gove DHLUC years. Today we have seen the Department make the choice to scrap a bit of Conservative policy which was out for consultation under the old regime.

The erstwhile DHLUC had consulted earlier this year on amendments to the framework for how social housing is allocated, suggesting that housing should be prioritised for "those with a strong connection to the UK". It also suggested that those involved in anti-social behaviour or terrorism (not usually seen as bedfellows but we move on) should not be able to access social housing. 

MHCLG has concluded that all of the proposed changes would be "either unnecessary, unfeasible, risked harming communities, or costly". It's true, these proposals were largely a dog-whistle (prove your Britishness or remain homeless being the Daily Mail undertone the old Government were presumably going for) or just headline-grabbing for things which already happen (89% of councils have a local connection test).

What does the department's decision to scrap these proposals really tell us about what they want to do? Well, they continue to put all their eggs in the 'increase supply' basket, saying the only true solution to the lack of social housing is "to increase the supply of good quality affordable homes". They also hinted at more details on this to come, referencing future government investment in social housing within the upcoming Spending Review.

Perhaps most interesting is the focus on not introducing duplicative policies. It's long been government practice to put unnecessary measures in place to grab a headline or two but here the department puts 'unnecessary' first in it's reasons not to proceed. They state clearly that 'eligibility for social housing is already tightly controlled' and that 90% of social lets in 2022-23 were to British nationals. The implication is, so what is this problem that the previous government wanted to solve?

It's refreshing to see reality at the heart of a Government decision. However, we here at Social Housing Weekly are not naïve enough to think that data-backed policy will become the norm. Where there is a difficult challenge with no short term solution, there will always be reassuring palliative measures to demonstrate 'progress'...

Harriet Shone

LCA Director

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Rayner Watch

by Peter Lord

Angela making her mark?

As discussed last week, the Housing Secretary role has become a hugely personal one, with the incumbent shaping policy development, and enforcement in their own image. This trend started under Michael Gove but has clearly continued under Angela Rayner, who has lost no time in stamping her personality and views onto the role and department. 

Demolition drama or retrofit rumble?

One of Gove's favoured interventions was, of course, the call-in. This week, Marks & Spencer has said it is hopeful that Rayner will approve the proposed redevelopment of its Oxford Street store, as part of Labour’s ‘drive towards investment for growth.’ Meanwhile, a number of key voices have written to Rayner, demanding that the iconic building be saved. Of course, the ongoing saga about the controversial scheme was never about one shop, iconic as it may be; it was representative of a wider policy debate over the cost of demolition over retrofit, its environmental impact, and the perceived loss of heritage. Whichever way she comes down on this issue, Rayner will upset an already agitated set of stakeholders. She will also be stamping her personal views all over the debate on retrofit and heritage. We don't envy her this particular decision!

Cladding crackdown after Dagenham fire

Elsewhere, the Housing Secretary has been engaging in another of her predecessor's favoured pastimes: turning up the heat on landlords. Rayner visited Arinium Ltd’s 60-home, eight-storey Spectrum House in Dagenham following a major fire on 25-26 August, stating that the Government would ‘continue to push’ for accelerated remedial action for dangerous cladding. The Housing Secretary has said work to remove dangerous cladding from high-rise residential buildings has been ‘far too slow.’ 

Gove or gorgeous: what does 'beauty' mean?

Rayner raised a number of eyebrows over the proposed changes to the NPPF which expunged references to beauty. Yet another very public example of Rayner making her mark on the arena of planning policy. This week, a new report by think conservative tank Policy Exchange has called for beauty and high design standards to be at the heart of the new NPPF, saying that the new Labour Government’s ambitions to boost housebuilding and development should not ‘reject’ beauty, and that poorer people ‘suffer most’ from failing to inject beauty into the built environment.

They go on to argue against Labour’s strategic message of ‘socialist heritage’ and ‘municipal’ beauty. But here the think tank has rather missed the point, Rayner's position here is very personal. We know that the Housing Secretary does not reject attractive homes. Rather the message here is simple: 'out with Gove's subjective value judgements and in with mine'...

Move over Terminator, here comes The Accelerator 

Angela Rayner has announced the creation of the Government’s New Homes Accelerator, consisting of an ‘expert group’ of civil servants appointed to speed up planning decision-making and delivery on around 200 stalled residential developments. The Accelerator will work with local authorities, developers and government agencies to support local planning capacity and speed up decisions. Additionally,  it will support existing projects as well as sites ‘not already known’ to Homes England or the Greater London Authority, while engaging with the sector to identify stalled sites.

Housing in the headlines

Commuter house prices in overdrive

While Rayner works out a way to get stalled developments back in gear, house prices, in the commuter belt at any rate, are revving away merrily. A new report by Hamptons has shown house prices in commuter belt locations growing faster than the London average since 2007. Prices in Basildon have risen by 88% while Dacorum has seen an 87% increase. Epping Forest has also seen price increases of 83% compared to the London average of 82% and UK average of 57%. The highest price growth has been in Trafford, Greater Manchester where prices have risen 91% since 2007. 

New towns for the south east?

The Times reports on the potential areas for the Government’s proposed ‘new generation’ of new towns. The feature highlights the strengths of a strategic approach to development in post-war new towns and garden cities such as Milton Keynes as evidence of regional ‘revival’, while highlighting research from Lichfields which suggests areas of opportunity for growth in the Oxford-Cambridge Arc, M3 Corridor, Sussex Weald and North Essex.

Thousands of social homes on Airbnb

Figures from the Tenancy Fraud Forum show as many as 5,800 social homes being illegally marketed on online short-term lettings websites, costing around £244m in combined rental value. A pilot programme for the National Fraud Initiative revealed 43 council homes in Islington have been illegally let through Airbnb, with further incidents reported in Barking and Dagenham.

Let's get political

Reeves eyes further tax rises and spending cuts

Chancellor Rachel Reeves has warned that ‘public spending is not sustainable’, setting out government targets to ‘really scrape the bone’ with at least £1bn per department in spending cuts. The Prime Minister and Reeves have both warned of a ‘painful’ October Budget, which could include more radical reforms to achieve greater savings, including tax rises and changes to welfare spending.

The Telegraph reports that the Chancellor could increase fuel duty after 14 years of freezes under the Conservatives, which motorists’ group the RAC has said it would support.

Reeves' winter fuel policy gets chilly reception

Chancellor Rachel Reeves has been criticised by ministers and Labour MPs over her plan to abolish winter fuel allowances for pensioners not in receipt of benefits. The Sunday Times reports that the parliamentary party is ‘widely’ in favour of scraping the plans, which the Conservative Party has also called to be ‘annulled.’ Speaking this morning, the Prime Minister has said the decision to ‘means test’ the allowance is a ‘choice we [the Government] had to make.’