LOCAL Community Housing: THE alternative to national PUBLIC housing Councillor Stephen Greenhalgh Leader, Hammersmith and Fulham Council Co-Author of ‘Principles for Social Housing Reform’ There is a clear acknowledgement that what is required is not yet more tinkering around the edges” Julie Cowans and Professor Duncan Maclennan, Visions for Social Housing: International Perspectives, 2008

Where we are today Social outcomes National control  Hills Report found appalling social outcomes created by concentration of deprivation in areas with high percentages of social housing  Allocations policy set nationally with limited local discretion  Rents and capital expenditure levels controlled through ministerial dictat, Housing Revenue Account (“HRA”) and Decent Homes programme  Development controlled by Homes and Communities Agency (“HCA”) and grant regime  Local Housing Allowance distorting local markets Poor management  Inconsistent tenure  High costs  Cave review

Increasing problems “Many council estates have become what they were fighting in the first place – social ghettos” Sir Robin Wales Just 23% of new housing tenants work and do not claim housing benefit (Smith Institute, Rethinking Social Housing) The proportion of social tenants in employment has fallen since 1981 from 47% to 32% and those in full-time employment from 43% to 22% (Hills Report) Social rented housing has become a destination rather than a launch pad. 82% had been in social tenure ten years before (Hills Report)

Increasing national control “Almost every aspect of housing policy in the UK is dominated by central planning and socialist methods of resource allocation” Philip Booth, Institute of Economic Affairs This is a national rent-setting policy that largely determines the income of social landlords. It sets target rents that social landlords have to achieve now by 2025 Sets a rent by reference to local average income and household size, not the local market. This is driving rents up and, in one case, led to double the market rent being paid for a large family home Reliant on grant routed through a national quango, the Homes and Communities Agency Rent restructuring Social housing development Local Housing Allowance

Where we could be in 5 years  Breaking down concentrations of deprivation and improving social outcomes - with significant savings to the taxpayer  Rents set locally within a [sub]-regional social rent “cap”  Councils and RSLs setting own rents based on ability to pay  Local letting priorities based on:  addressing imbalance across neighbourhoods  – e.g. ratio of adults to children  work  local connection  caring for local family Moving towards mixed communities Local management of Community Housing

Where we could be in 5 years (cont.)  Based on “real world” asset values and consistent tenure structures  Transparency for landlords, tenants and leaseholders  Lower costs = higher value  Referenced to household income and local rents  Institutional co-investment  Releasing asset value = increased ability to borrow locally  Focus on shared equity through Right to Buy Part  Declining national grant regime Better management Local management of Housing Benefit More development

How to get there Set Social Rent “Cap” on [sub] regional basis1 Abolish the HRA subsidy system2 Extend local lettings to 50% of all vacancies3 Allow rent setting in Community Housing by ability to pay4 Change LHA regime to one based on ability to pay and local rents5 Establish Right to Buy Part6

Moving from national social housing to local community housing National public housing system IncomeManagement People Development National rent regimeNational subsidy system (HRA) National priorities for allocation National capital programme (Decent Homes) RSLs- Shared ownership and social rent Inconsistent tenure85% national and 15% local lettings National building programme (HCA) Local community housing IncomeManagement PeopleDevelopment Set social cap nationallyAbolish HRA and allow “freedom to manage” 50% national and 50% local lettings Councils and RSLs can develop by borrowing against asset value Set actual rent levels locallyConsistent tenure : Assured tenancies or ASTs Local lettings criteria: - imbalances across neighbourhoods - local connection - caring for local family - work Future income from: - sales of infill plots - Right to Buy Part sales - reduced M&M costs