In the wake of the Grenfell Tower fire, the final report of Shelter’s Commission has now been published and provides an in depth analysis on the current state of the social housing sector. The report sets out the various background issues in Government policies, funding and development that has culminated in the current housing crisis and the rise in the private rented sector, together with the consequences of the decline in social housing on those most in need of affordable housing and the Commission’s proposals for the future of the sector.
Here I summarise the headline points that have come out of the Commission’s report.
The housing crisis and how we got here
One of the key factors the report focuses on is the lack of affordable housing that is being delivered, which is falling vastly short of the Government’s pledge to provide 300,000 affordable homes a year. Statistics show from the second World War era through to the 1980s, an average of 126,000 social homes were being built and last year only 6,463 social homes were delivered.
Competition for homes has subsequently driven up house prices making home ownership unachievable for more and more people. Also, with cuts in housing benefits and grant funding towards building social housing, housing providers are facing greater challenges in being able to produce the numbers required to meet the current shortfall.
In response, recent Government reforms such as the bedroom tax were introduced to encourage those who are living in properties and not using the extra bedrooms to move to smaller properties. However with a lack of social homes available, many have no option but to have their benefit payments reduced.
The Help to Buy Scheme which was introduced in 2013, has been criticised as being expensive and untargeted as well as causing an increase in house prices and benefiting far fewer numbers then the Right to Buy Scheme introduced in the 1980s. It has been suggested the Help to Buy scheme has alllowed developers to boost their profits to the detriment of the consumer.
The report provides clear evidence and statistics that Government reforms in recent years (such as Help to Buy), have not been successful in providing an alternative cost effective solution to dealing with the lack of affordable social housing that is currently being delivered.
The consequences of the decline
Social housing provides for lower rents and greater protection from eviction. However with the shortfall in available social homes and high house prices, more and more young people, the elderly and families are moving into the private rented sector with no security of tenure. Those with low incomes and high costs of living, have little economic security or stability to set up a stable long term home.
In the worst cases, statistics show that 682,000 households are living in overcrowded and poor quality housing, with issues such as repair and damp that are left unresolved by landlords. In contrast, the evidence shows social homes have significantly fewer issues, being better insulated and more energy efficient. One estimate has put the cost of poor housing to the NHS at £1.4 billion per year.
Those living in the private rented sector with the fewest options are reluctant to make a complaint against their landlord through fear of eviction and failure to find a suitable alternative home leaves increasing numbers facing homelessness. The current overall figures show 277,000 homeless in England on a given night, and this is the reality of the social housing crisis.
Commission’s recommendations for the future
The Government should create a new consumer regulator to protect renters and to ensure their voices are heard. To require minimum decent standards of social housing to be proactively inspected and publicly reported. To make the system easier and more efficient in dealing with complaints.
More emphasis on tenant panels with residents having more input on major works affecting their building and the estate and for landlords to actively support the formation of tenant panels.
Private landlords with over 25 homes should be required to register with a new consumer regulator who will set minimum decent standards for the private rented sector. The Government should also increase resources for local enforcement to deal with rogue landlords; poor living conditions and protect private renters from no fault eviction/retaliatory evictions.
Government to deliver more social homes over the next 20 years to meet the projected numbers who will be most in need of social housing. To enable suitable development land to be acquired more quickly by reforming Land Compensation Act 1961 so that landowners are paid a fair market price for their land.
Right to Buy Schemes should be made sustainable by replacing any social housing sold. The Government should embrace modern methods of construction to reduce risk and practical completion of new builds, and ensure housing standards are maintained in the long term.
