More than bricks and mortar: housing associations key component to solving housing crisis
Yesterday five of the UK’s major housing associations discussed the future of housing supply and affordability with John Healey MP and deputy London mayor James Murray.
“Housing is a higher concern for the public than it has been for forty years, and for the first time the issue is amongst the top three concerns of Labour party members,” remarked former shadow housing minister John Healey yesterday at The Housing Fringe.
The lack of supply is the UK’s number one problem, agreed the panel of five major housing associations: Moat, L&Q, Metropolis, Midland Heart, and One Housing.
“It is important not to get caught up in a false debate about council housing vs housing associations”, said Carli Harper from Moat, “because in the end our aims are complimentary – we need to lift the supply.”
Mr Healey expressed concern that simply focusing on increasing output was “not enough”. The MP for Wentworth and Dearne said the link between new supply and price is very weak and very long term. He called for a true mix of housing supply, and an end to “the false choice, set up by government ministers.”
David Montague from L&Q remarked that, “the biggest advantage that housing associations have is that they have a long term view”. Builders build according to the housing market, he said, so they are much more cautious, while housing associations build according to need.
Ms Harper remarked that housing associations are already building a lot, responsible for 40% of new supply in the UK, but they are under constant pressure from policy changes.
James Murray, deputy mayor of London with housing responsibility, said when it comes to funding, “we need flexibility to deliver a range of homes and support housing associations programs.” He said that an essential part of this is making use of devolution deals, which is “a unique opportunity to create unique solutions”.
Mr Healey agreed, but warned that when it comes to devolution deals “housing is conspicuous by its absence.”
He added, “If we accept the case that the housing market is different in different areas, clearly we need to have some flexibility to do things differently.
“So, it’s a real challenge I think, particularly for those local authorities that are held by Labour, in those devolution areas.
Mr Healey called on Labour councils to take the initiative and shape housing policy rather than accepting Treasury proposals, as they have done so far in the devolution process.
Joe Reeves from Midland Heart, agreed with the Wentworth MP and said one of the key things housing associations can do is give a clear proposal of what devolution deals should look like.
Core to the discussion was that housing associations are unique in that they are resident, not profit, centred.
Carl Quilliam from Metropolitan said housing associations are not just a place for people to live, but rather are investing their surpluses into building independence among residents. Finding jobs, transitioning from hospital, supporting refugee families, are only some of the ways housing associations help those in the most pressing need.
Ms Harper warned that when housing associations are forced to turn people away due to lack of funding, the responsibility only shifts the problem onto local authorities.
“We don’t think this makes sense; we want to be the ones to house people in the most pressing need. But to do this, we need a viable mechanism in the form of a flexible funding model, that ensures low-to-medium income workers can be properly housed.
“The heavy reliance on Housing Benefit, combined with a lack of subsidy for bricks and mortar, is not delivering homes for people at the bottom. We have to change this approach.”
PoliticsHome Newsletters
Get the inside track on what MPs and Peers are talking about. Sign up to The House's morning email for the latest insight and reaction from Parliamentarians, policy-makers and organisations.
