1. Social housing in England after the GFC: affordable vs ‘affordable’
Kath Scanlon
LSE London
RESHAPE final conference
Bolzano
19 April 2017

2. Themes England’s ‘housing crisis’ Changing nature of social landlords
Marginalisation of social housing and growth of ‘affordable’ – but not social -- products ‘

3. Number and % of social units in England, 1961 - 2015

4. Built form
Reflects sector’s history—municipal construction boom in 1960s/70s, including many high-rise or deck-access monotenure estates
Current practice is to provide mix (social/tenure/income) in new build
Many existing estates have become mixed through RTB—but not all ‘

5. Has public perception caught up?
1960s estate, Wapping, East London

6. Social landlords
Two types: local authorities (historically the main providers) and housing associations (now more important)
Councils have always operated under strong government constraints
Housing associations in principle private non-profit (often charitable) organisations ‘

7. Control vs freedom
Government increases constraints on housing associations’ social-sector activities
2015: requires associations to reduce rents for 4 years
2016: Extension of right to buy
But
Great freedom outside the social sector ‘

8. Increasing commercial focus
Largest associations focus on areas where government exercises less control
Consolidations and mergers create some very big players, who compete directly with major house builders in private sale market
Genesis (32,000 homes): will no longer build new social housing ‘

9. England’s ‘housing crisis’
Generally shorthand for affordability problems in private housing markets
Focus on
difficulties of would-be first-time buyers
high rents and insecurity of tenure in the private rented sector
Largely a London problem ‘

10. Current policy priorities
stimulate housing construction so as to dampen price increases,
help first-time buyers purchase new homes and
increase provision of ‘affordable’ housing.
Social housing is seen as irrelevant for working families needing a home in higher-cost areas. ‘

11. Policy case study: The Housing and Planning Act 2016
Social housing measures:
increase targeting
enable more social tenants to buy
reduce stock in expensive areas and increase in cheaper neighbourhoods
Introduce new affordable but not social products—e.g., Starter Homes
A collection of policy ideas rather than worked-out rules ‘

12. Idea 1: Give housing association tenants the right to buy‘
Would give housing association tenants same right to buy their homes as council tenants
HAs crafted ‘voluntary’ agreement to protect status as private organisations
Government compensates them for discount using…

13. Idea 2: Make councils sell high-value homes
Councils sell ‘high-value’ homes as they become vacant
Transfer £ to government, who uses it to compensate housing associations
What is ‘high value’? ‘

14. Idea 3: Make higher-income social tenants pay more rent‘
Historically social rents in England not income-dependent (unlike in many countries)
‘pay to stay’—rent would increase for higher-income tenants

15. Idea 4: Require councils to use fixed-term leases
Social leases generally indefinite, in contrast to very limited security of tenure in PRS
Eligibility assessed on arrival but not after
Idea: councils to use fixed-term leases for all new tenancies ‘

16. One year on Policy idea Status Voluntary right to buy
Pilot programmes in a few areas. Will not be rolled out nationally until As ‘voluntary’, some associations may not participate
Sale of high-value council homes
On hold until VRTB takes off
Pay to stay
November 2016: housing minister abandons policy
Fixed-term leases for council tenants
Regulations expected later this year

17. Social vs affordable ‘Affordable’ products/schemes include
Discounted Market Rent
Affordable Rent
London Living Rent
Help to Buy
Shared ownership
Starter Homes
Etc etc etc

18. Conclusions…
Housing systems are highly path dependent and can be hard to change--especially when there is no consensus about the need for change
Given long-term ↓ in subsidy, less reason for housing associations to remain onside. Many now want to fulfil their social aims in other, less regulated sectors of the housing market ‘

19. …and questions
Will social housing strictly defined retain its relevance for broader housing issues?
Is the traditional housing-tenure split (o-o, social, PRS) still a useful analytical tool, or should we look more at submarket options in the round? ‘