Redefining the housing sector December 2011 Kathy Hanson Head of Learning

Current housing issues Current policy context I’m going to cover... Today

Current housing issues

25 million households Home owners = 71% Social tenants = 18% Private tenants = 11% Average house price = £238,874 Average income = £22,800 Prices fell, affordability did not Tenure and price

272,000 new households every year Ageing population Statutory homelessness rising 102,000 new homes built in 2010 Average first time buyer is 37 People & property

National deficit –£128bn deficit reduction Economic growth –0.9% 2011 Unemployment –8.1% 2011 (2.7m people) Cost of living –Inflation (CPI) –Wage increases 1.4% –Energy prices 20% Economic context

Current policy context

Public spending cuts –£83bn spending cuts by 2015 Welfare reform –Housing Benefit –Council Tax Benefit –Universal credit UK-wide policy

Deficit reduction –Reduced spending –Some tax increases Localism –Increased accountability –Less direction to local government –More power to communities The Big Society –Less state provision, more public action Overarching priorities in England

Social housing reform Planning reform Funding affordable housing Council housing finance Supported housing Regulatory reform Agency closures All change for housing Spending Review Welfare Reform Bill Localism Act

Consumer standards –Basic minimum protection –Consumer & provider must be proactive Finance & governance standards –Expectations on boards –Value For Money –External environment drives attention Regulation & excellence

Closed housing registers –Limits who can apply for social housing Mobility –Must be improved for existing tenants Tenancies –Option to use fixed terms –Option to charge higher rent –Option to means test Homelessness –Councils can discharge duty into private rented sector Social housing reform

About 170,000 new homes New funding model – ‘Affordable Rent’ £2bn for ‘Affordable Rent’ / 80,000 homes New model: –Less subsidy = risk onto provider and tenant –Up to 80% of market rents –Requires conversion of existing social homes –May require sale of existing social homes Social housing investment

Mortgage guarantee scheme Use of public sector land –Including buy now pay later scheme Institutional investment in private rent Right to Buy reform Planning reform –More community control –New national planning framework New Homes Bonus Supporting house building

Economic pressures Ideological tensions Funding & income Big changes to housing management Consequences for households Lots of untested policies Capacity to manage change Decisions now will impact for years Reputational issues Facing some challenges! But there are opportunities to seize too!

International comparisons

Similarities Funding cuts Regulatory reform Welfare reform Search for new delivery models Differences Political context ‘Welfarisation’ of social housing Focus on PRS Focus on RTB Funding models Localism Position of ‘council’ housing Organisational change UK similarities & differences

Different tenure patterns Different social housing The Netherlands –High % social housing –Anyone can apply –No grant funding –Providers independent from government –Challenges around state aid (competition) Looking to Europe

CIH supporting standards

Core professional standards Provision of knowledge & information Good practice examples Sector-led ‘charters’ Lobbying on law & standards Several approaches

Thank you & Have a good conference!

Kathy Hanson