Inside Housing | Pay to Stay meetings cancelled as policies face delays

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11 November 2016

Pay to Stay meetings cancelled as policies face delays

 

Meetings of the Government’s Pay to Stay working group have been cancelled as several key measures in the Housing and Planning Act look set to be delayed.

Inside Housing can exclusively reveal that the Government has cancelled scheduled meetings despite the policy- under which higher earning tenants pay up to market rent- originally being planned for implementation in April next year.

It is not clear why the meetings have been cancelled, but sector figures this week said it suggested a delay. Councils have been urging ministers to put the start date back to give them time to prepare.

The news emerged days after a senior civil servant admitted the Right to Buy (RTB) extension to housing association tenants is set to be delayed as a result of the Brexit vote.

Housing minister Gavin Barwell also said this week that councils “need plenty of time” before implementing the higher value asset levy intended to fund the RTB extension, in response to a question about whether councils would still have to pay the levy in 2017/18 as expected. The government said regulations to implement Pay to Stay and the levy, along with RTB guidance, will be published in ‘due course’.

The Pay to Stay policy requires council tenants to pay up to market rent if they earn over £31,000, or £40,000 in London.

The Government has already taken several steps that water down the effects of the policy. Inside Housing reported last month DCLG was considering exempting council tenants in areas where social rents and market rents are similar and councils will be able to decide how to define market rent locally.

The Higher Value Asset Levy councils would be forced to pay also faces delay. Housing bodies had expected the Levy to be introduced from April next year. However, housing minister Gavin Barwell told the Communities and Local Government committee this week that no implementation date had been decided. He added he is “very aware” the legislation was “quite controversial” and the government will need to give councils “plenty of time” to implement the policy.

The Levy regulations were due to be published before the parliamentary summer recess in July but still have not materialised four months later. Experts said it would now be difficult for the policy to be introduced from next April. Clive Betts, chair of the CLG committee, said most councils are setting their budgets for next year and “haven’t got any idea what figure is going to be placed on them to estimate the high value assets”.

John Bibby, chief executive of the Association of Retained Council Housing, said if the voluntary RTB is delayed- as a civil servant this week said it would be – the higher value asset levy for councils should also be put back. He said ARCH would lobby “very strongly” for the levy to be delayed. He added: “If [the voluntary RTB] is not going to go ahead then there’s no reason to levy the councils.”

John Healey, shadow housing secretary said: “Ministers should recognise that on the Housing and Planning Act they may have won the legislation but they lost the argument. No-one thinks that forcing councils to sell off the best of their homes is an answer to the country’s affordable housing deficit. It can only make the problem worse.”

A DCLG spokesperson said nothing had changed with the higher value asset levy policy. He added: “We are currently considering how best to implement the policy to ensure it is robust and fair to councils. We will make an announcement in due course.”

WMN | Councillors call for right-to-buy scheme to be scrapped

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11 August 2016

Councillors call for right-to-buy scheme to be scrapped

By Kate LangstonPosted: August 11, 2016

(top right) Cllr Owen

Over the last three years, Devon and Cornwall councils have funded an average of just one new home for every four sold – despite a policy of one-for-one replacements.

Councillors claim this is because the scheme is unsustainable, and warn the problem will get worse if ministers plough ahead with plans to extend it.

Exeter City Council member and portfolio holder for housing, Keith Owen, accused the Government of failing to grasp “the seriousness of the situation”.

Cllr Keith Owen

“As a local housing authority, we are not in a position to replace anywhere near the number of council properties which are acquired by tenants under the right-to-buy scheme,” he said.

“And the situation in Exeter is generally no different than it is through the rest of the country.

“Its getting harder and harder to [replace homes], and its not going to be helped by recent Government legislation.

“The whole idea is badly thought through… I think it has to be scrapped.”

According to new figures from the Local Government Association, the rate at which councils in England replaced homes sold under right-to-buy (RTB) fell by more than a quarter last year.

Their data shows that while 12,246 council homes were sold to tenants in 2015/16, just 2,055 replacements were started by councils.

Government figures show that in Devon and Cornwall a total of 361 properties were sold under RTB between 2012/13 and 2015/16.

In that same three year period, councils only began the process of replacing 87 homes.

In the district of East Devon, the ratio of replacements to sales since 2012/13 has been 4.5 to one.

A spokesman for the council said it had been struggling to fund replacements “for a number of years”.

Right to buy figures for Devon and Cornwall (source: DCLG live sales tables)

“The receipt we receive from Right to Buy sales, after the statutory and significant discount is applied, is insufficient to purchase or build replacement units on a one for one basis,” he said.

“We have purchased and built some new homes over the past few years, but our ability… has been compromised by a recent Government requirement to reduce rents by 1% each year for the next four years.”

“This reduces our ability to finance new council homes as it eliminates any surpluses we have set aside for new affordable homes.”

Cllr Owen shares concerns about rent reductions, as and about plans to fund the extension of RTB to housing associations through the sale of council assets.

He said the forced sell-off of high-value social housing will see local authorities deprived of both the asset itself and income from rent.

“It’s a vicious circle,” he said. “Any money we’ve had in the past to build replacement council houses is not going to be there.

“There’s no sign the government understands the seriousness of the situation.”

A Government spokesman said there is a rolling three-year deadline for local authorities to deliver an additional home “and so far they have delivered well within their sales profile”.

“However, we have always been clear that if local authorities don’t start building replacement homes within the three-year deadline, then we will step in and build them for them,” he added.


What is right-to-buy?

Right-to-buy was introduced in 1980 under Margaret Thatcher’s government, as a means of boosting home ownership

It gives most council tenants the right to purchase their home from their landlord at a discount of up to 35% for a house, and 50% for a flat

Tenants can apply to buy if the property is their only or main home and self-contained, and they have had a public sector landlord for three years

If the property used to belong to the council, but has since been sold off, a tenant might still qualify for “preserved” right to buy

The Government is looking to extend right-to-buy to housing association properties, starting with a voluntary pilot scheme, through the Housing and Planning Bill

Guardian Editorial | The Guardian view on housing policy: a rethink is needed

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11 August 2016

EDITORIAL | The Guardian view on housing policy: a rethink is needed

The government has boosted demand but not supply. There are too few new homes, and too many penalties on social housing. It’s not a policy, it’s a disaster
Terraced houses.
‘In the past six years, the party of home ownership has failed to revive home ownership.’ Composite: Alamy

It is very hard to detect what this government thinks a successful housing policy looks like. In the past six years, the party of home ownership has failed to revive home ownership. Far from the Tory dream of a Britain transformed into a property-owning democracy, the median price for a house is now nearly nine times the median income and generation rent struggles to put so much as a toe on the property ladder at all.

Meanwhile, the long war of attrition against social housing goes on: right to buy, almost moribund by 2010, was fanned back into life with new and bigger discounts in the early coalition years. Council receipts from the discounted sales were cut to a third of the sale price, which has to be reclaimed in a slow and bureaucratic process from central government to meet the obligation imposed by Whitehall to replace all right to buy sales. In fact, councils are now building just one new home for every nine sold.

The Local Government Association, representing councils in England and Wales, says a rethink is essential if the right to buy is going to benefit more than this generation. Soon, higher-value council properties will have to be sold too, to fund a new assault on social housing, the introduction of the right to buy for housing association tenants. The latest English Housing Survey found that tenants were paying up to half their income on rent – even more in London. Meanwhile the rent councils receive is being cut year on year. The LGA foresees a £2bn hole in council finances by 2020.

An era of very low interest rates, and the new ability of people with pension pots to invest in property rather than buy an annuity with it, is propelling a huge market in buy-to-let. It has slowed with new higher stamp duty, but the grants designed to support first-time buyers have had only a limited effect as the supply of new homes continues to lag far behind demand, putting the next move out of reach. There are already 1.4 million people on council waiting lists. The cost of housing benefit for tenants in private accommodation is soaring along with rents – and homelessness. Earlier this month, the Resolution Foundation published research showing unaffordable home ownership is not just a London problem but affects people across the whole of the United Kingdom. It is at its lowest level since the early 2000s. The number of new homes started was less than 150,000 last year, the average house price has risen 60% in 13 years, while pay for many people has risen at only a fraction of that rate. On some estimates, in less than a decade there will be a shortfall of at least 4m affordable homes. Whatever its intentions, the government appears to have created a housing catastrophe.

The Local Government Association is controlled by Conservative councillors. It is not a radical organisation trying to challenge government. It merely wants voters able to live in homes they can afford to buy or rent. They know how to do it. Theresa May promised a country that did not entrench privilege. Housing is a good place to start.

 

Guardian | Right-to-buy reform urged as council leaders fear for social housing

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11 August 2016

Right-to-buy reform urged as council leaders fear for social housing

Figures show that replacements for homes sold under the right-to-buy scheme fell by 27% last year, worsening the housing crisis

Hilary Osborne
Matilda House in Wapping, London, which is made up of private tenancy and housing association homes
The promise to make discounts available to 1.3 million housing association tenants was part of the Conservative manifesto at last year’s general election. Photograph: Dan Kitwood/Getty Images

Analysis by the Local Government Association (LGA) showed that 12,246 council homes were sold to tenants under right to buy in England in 2015-16, but just 2,055 replacements were started by councils – a drop of 27% on the previous year.

The right-to-buy scheme allows low-income tenants to buy their council-owned home at a sizeable discount to market value. Since it was launched by Margaret Thatcher in the early 1980s, almost 2m properties have been sold by councils across England and the proportion of homes that are social housing has fallen from 31% to 17%. Use of the scheme was slowing until the Conservative government relaunched the scheme in 2012 and quadrupled the discounts available to London tenants.

Right to buy has been scrapped in Scotland and the Welsh assembly last week confirmed that it planned to do the same. The LGA said the scheme could become a thing of the past in England, too, if councils were not helped to fund replacement homes.

The organisation, which represents 370 local authorities across England and Wales, said it expected 66,000 council homes to be sold to tenants by 2020 and that councils would struggle to replace the majority of them.

A further 22,000 homes will be sold if councils are forced to offload higher-value properties to fund the extension of right to buy to housing associations. The promise to make discounts available to 1.3 million housing association tenants was a key part of the Conservative manifesto at last year’s general election.

Screen shot 2016-08-14 at 07.35.07

The LGA warned that the fall in the number of much-needed council homes would exacerbate the housing crisis and increase homelessness and spending on housing benefit at a time when there were 1.4 million people on waiting lists.

The government has committed to one-for-one replacements for all additional homes sold since the scheme was relaunched. However, the LGA said urgent reform was needed to ensure councils could replace housing quickly and effectively.

It said authorities needed to keep 100% of receipts from sales, rather than the one-third they can currently retain, and that discounts should be set locally to reflect regional variations in house prices. Under the existing system, London tenants can get a discount of up to £103,900, while outside the capital homes are sold for up to £77,900 below market value.

The LGA’s senior vice chair, Nick Forbes, said current arrangements were restricting councils’ ability to replace homes and suggested this would mean that eventually there were no more properties to sell. “Right to buy will quickly become a thing of the past in England if councils continue to be prevented from building new homes,” he said.

“Housing reforms that reduce rents and force councils to sell homes will make building new properties and replacing those sold even more difficult. Such a loss in social housing risks pushing more people into the more expensive private rented sector, increasing homelessness and housing benefit spending.”

The Department for Communities and Local Government (DCLG) said the government was prepared to take action to ensure replacement homes were built.

It said: “We’re committed to building the homes this country needs and investing £8bn to build 400,000 more affordable homes. There is a rolling three-year deadline for local authorities to deliver an additional affordable home and so far they have delivered well within their sales profile.

“However, we have always been clear that if local authorities don’t start building replacement homes within the three-year deadline, then we will step in and build them for them.”

Around 40% of council flats sold through right to buy are thought to be owned by property investors now and are likely to be rented out at market rates. Some local authorities have attempted to stave off sales of social housing with new schemes for tenants. Recently, Barking and Dagenham council said it would allow tenants to buy a stake in their homes but would retain a share in each property.

Affordability Housing Delivery 2015-16

On 02 October 2015, I wrote a blog about social and affordable housing in Exeter.

Here’s the lasted update.

Affordable Homes Completed 2015-16 to date:

Exeter City Council, working in partnership with Registered Providers, has recently delivered the following affordable homes in Exeter

Monkerton – Rougement Park
04 new social rent homes Sovereign Housing Association

Newcourt – Rydon Place
16 new social rent homes Aster
04 new shared ownership homes Aster
02 new social rent homes YMCA Exeter
01 newly completed wheelchair accessible property for social renthas also been purchased by Exeter City Council

Newcourt – Holland Park
05 new social rent homes Aster

Newcourt – Greenacres
29 new social rent homes DCH
11 new shared ownership homes DCH
02 new social rent homes YMCA Exeter
03 new social rent homes have also been purchased by Exeter City Council, all of which are fully wheelchair accessible

Earl’s Park
02 new shared ownership homes Cornerstone
01 newly completed wheelchair accessible property for social rent has also been purchased by Exeter City Council

Dean Clark House
04 new social rent properties have been purchased by Exeter City Council, all of which are fully wheelchair accessible

ibstock Brickworks – The Harringtons
10 new social rent homes Aster

Affordable Homes currently being built on-site 2015-16

The following affordable homes have been negotiated by ECC and are currently being built on-site, but have yet to be completed

Monkerton – Rougement Park
06 new social rent homes Sovereign Housing Association
05 new shared ownership homes Sovereign Housing Association
03 new social rent homes will purchased by Exeter City Council, all of which will be fully wheelchair accessible

Monkerton – Tithebarn Green
62 new social rent homes Aster
26 new shared ownership homes Aster

Monkerton – Hill Barton Consortium
28 new social rent homes
13 new shared ownership homes
04 new social rent homes will purchased by Exeter City Council

Newcourt – Greenacres
05 new social rent homes DCH
03 new shared ownership homes DCH

Newcourt – Rydon Place
06 new social rent homes [4 of which will be wheelchair accessible] Aster
01 new shared ownership home Aster

Newcourt – Holland Park
05 new social rent homes WESC

Newcourt – Seabrook Orchards
30 new social rent homes [2 of which will be wheelchair accessible]
10 new shared ownership home 

Ibstock Brickworks -The Harringtons
24 new social rent homes [2 of which will be wheelchair accessible] Aster
06 new shared ownership homes Aster

Bishop’s Court Sand Quarry
33 new social rent homes [3 of which will be wheelchair accessible] Aster
10 new shared ownership home Aster

Hart’s Lane
53 new social rent homes [3 of which will be wheelchair accessible]
09 new shared ownership home 

 

Possible privare section accommodation for over-55s

Over the weekend I was speaking to an someone who had a relative living in Homecroft Court in Bartholomew Street West.

That relative had passed away and the person I was speaking to was telling me of the difficulty they had selling the 1-bed accommodation on the open market. They said that they had tried offering the property to Exeter City Council but was told that this was not possible to take on the flat.

I was told that even though this flat has now been sold, I am informed that there are currently several other units for sale, perhaps as many as 13

I thought ECC was always looking for this sort of property, especially for the over-55 market and tt made me think.  Is there no viable scheme – EXtraLet (a social needs Letting Agency using leased stock), Private Sector Leasing (using leased properties to help families who have become homeless), or something else – that can allow ECC to manage this sort of accommodation in these circumstances?

But it seems that the demand for over 55 accommodation from the housing register is low to non-existent at present and it is for that reason that ECC generally do not take such accommodation on as PSL or Extralet accommodation.

The Passivhaus flats in Knights Place was designed and built as over 55 accommodation, yet it has bee a challenge letting these. On this basis, ECC has taken the decision to amend the majority of future Council Own Build to family homes.

It seems almost contradictory with such a perceived housing need that we should turn away any accommodation. The reality however is that demand is focussed on ‘general needs’ housing and the specific demand for over 55 accommodation is minimal.

ECC  will shortly be commencing a ‘root and branch’ analysis of housing need (we have generally relied on the housing register to define what is required). We need to map need across a wider tenure base (social and private housing need) to see what initiatives and measures can be put in place to fully utilise all the accommodation across the city.

By way of an illustration of the disparity of need when considering the housing register – of the 672 households in the Band B category of the housing register 37% of these households have not bid on a house in the last 6 months. Band B are the highest housing need (bar a very small number in Band A (emergency), if these households are not bidding it suggests that they are satisfied with their present accommodation or the accommodation coming available does not serve their needs enough to want to move.