1. Housing: the Watford Picture
Hertfordshire Housing Conference
Housing: the Watford Picture
Dorothy Thornhill
Elected Mayor
Watford Borough Council

2. Unprecedented pressures on housing
The Watford experience: what has happened and why
Will Government policy help or make things worse?
How can councils respond and provide solutions?

3. Tenure Breakdown
Private Sector renting has doubled since 2001

4. The market for home ownership
Income and price imbalance.
Most popular location on the underground!
Great place to live.

5. Market rents follow the same trend
Increasing affordability problems, particularly for those on housing benefit.

6. Quality of private rented housing
Some excellent landlords and properties.
However, it is getting much worse at the lower end.
Complaints up by 35% over a year to our Environmental Health Team, issues:
Overcrowding
Significant disrepair

7. New build not keeping pace with demand

8. Lettings in social housing
Note: includes new build and re-lets

9. Increasing levels of homelessness
The impact of various supply and demand factors come together.
Eviction from the private rented sector is now the single most significant factor.

10. Upward trend in temporary accommodation across the County

11. The Government Plan – supply
Focus on Starter Homes:
Most HCA grant funding will go to Starter Homes
Planning changes will allow for starter homes to count as s106 contribution.
Rents reduced by 1% p.a. (from CPI +1% p.a.):
Massive impact on Housing Association and stock retaining Council funding.
The extension of the right-to-buy:
Will almost certainly reduce the stock of social housing.
Stock holding Councils particularly badly impacted.
Likely that some of the properties sold will be bought by private sector landlords.

12. The Government Plan – people
Freeze on Local Housing Allowance
The existing gap between market rents and LHA is likely to grow further, leading to a significant further increase in homelessness.
It is likely that the private rented sector will become more polarised – with quality at the bottom deteriorating.
Reduction in the Overall Benefit Cap
The planned reduction in the cap of 23% outside of London (£20k from £26k) will capture many more households, particularly as house prices and living costs are influenced by our close proximity to London.
Support for vulnerable people
The withdrawal of housing benefit from year olds is likely to increase levels of homelessness and rough sleeping.
There has been a temporary reprieve on the capping of rents on supported accommodation. If this does proceed there will be a devastating impact on the most vulnerable as hostels and supported homes are forced to close.

13. The crises so far…
Supply across all tenures has not kept pace with demand
Significant growth in house prices and rents.
Heavier reliance on the private rented sector – and high rents
Parts of the private rented sector very poor – impacts on health and well-being.
Cumulative impact of the 2008 recession, welfare and benefit changes now driving more families to homelessness.
Developers not obliged to contribute via s106
Risk to Housing Associations – rent reductions and right to buy.

14. Perfect storm warning…
No overall strategy - Government policy is almost exclusively focussed on home ownership.
What about people priced out of ownership?
Not the end of social housing – but badly mauled.
Most families in need of rent support through housing benefit are working.
How do we support a vibrant and diverse community if many working people no longer have an option to live locally.
Most importantly how do we judge policies that treat the vulnerable and needy with such disregard.

15. What’s the solution?
Even greater cooperation – shared services, mergers
Don’t go from being NIMBY to BANANA! Present a positive case for the need for more housing.
More councils using ‘new freedoms’ to form joint venture companies to build.
Be loud and coherent about impact based on evidence: speak with one strong voice to policy makers.