At a recent
dinner party I was asked by someone I had just met – who are all these people
that need houses anyway? The
conversation went downhill from there, as it happened he was a Local Councillor
(not in Berkshire I am happy to report).
In the end I pointed out that I was at a social event and had no desire
to discuss work matters, end of conversation. I realise I took the cowards way
out.
Today I read
that the most recent DCLG (Department of Communities and Local Government)
household projections’ forecasts indicate that the number of households in
England will increase by an average rate of 210,000 each year between 2014 and
2039. This is largely attributed to the
impact of our ageing society – we are living longer, surely this is
undisputable. Those households headed by
someone over age 75 are set to make-up over half of the growth in household
numbers[i].
So there is
your answer Mr Councillor, stop living so long, or downsize and make some room
for a younger generation that is currently barred from access to the housing
ladder due to salaries that have not kept pace with house price increases.
Obviously
the reality is much more complex, but surely by now the message has gotten
across that we have a real housing shortage?
When I
started this job 11 years ago, a young couple on a low wages living with mum
and dad could reasonably expect to get a home allocated on a rural exception
site in their village if there was one. There
were big arguments over whether they should qualify for a 2 bedroom house, and
that argument continues today. The argument
being a young couple today will be a family tomorrow. However, who can say that a couple will
decide to have a child? They may not, just as a family of four may or may not
become a family of five. They do not get allocated a three or four bedroom
house on that basis. The argument applies equally today to older couples
seeking to downsize, they may still have aspirations of wanting a spare
bedroom, but in affordable housing terms, sorry, there simply isn’t enough to
go around to provide a spare bedroom for the dog, or the grandchildren to
visit, or even to allow for snoring habits.
These arguments
become redundant, because there aren’t enough houses to allow for an allocation
for these examples, they all have a roof over their heads after all. In rare
cases, for example, our downsize couple may well transfer into a two bedroom
property from a three bedroom property because while they still have a spare
room, it does free-up a larger family size house for someone else.
For those
without a roof over their head, there is a different headline. Homelessness is on the increase. There was a 9% rise in homelessness
acceptances in the first quarter of 2016 compared to the same period in 2015[ii].
It certainly
hit the headlines last week that Local Authorities admit to being dismissive of
homeless singles. They are not deemed
vulnerable and there is no statutory responsibility to house them. They are simply
handed information about renting in the private sector and sent on their way.
Crisis[iii]
research has found:
“If you are
a single homeless person (i.e. with no dependent children) it is unlikely that
you will be judged to be in 'priority need', unless you are deemed particularly
vulnerable. Local authorities should still provide you with advice and
information on homelessness and homelessness prevention.
Research for
Crisis however, found that in practice this too often doesn't happen. Single
homeless people who may be entitled to accommodation are not always given
the opportunity to make a homelessness application. Many are also not provided
with any meaningful advice or assistance and are misinformed about their
entitlements.”
The
Homelessness Reduction Bill has been proposed by Conservative MP Bob Blackman
to impose tougher requirements on councils to help all people in danger of
becoming homeless, but Local Authorities, however well meaning, will need
financial support to provide any meaningful assistance.
Predictably,
the tax burden for Housing Benefit has risen astronomically since Welfare
Reform. The government chose to cut welfare payments and funding for social
rented properties and put the onus on the private sector to make up the
shortfall in rented properties. With private rents on a steady incline, and
affordable rents tied to 80% of open market rents, it is not surprising that
people on modest incomes are struggling to pay local rents. The Fabian Society predicts a £100-a-month
shortfall between rents and housing benefit payments by 2020.[iv]
In this day
and age, with limited funding available for affordable housing, and a culture
that encourages home ownership, we may need to view affordable rented property in
entirely different terms, after all we are now calling Starter homes to buy at 80% of market value ‘affordable’
housing. A short term solution that
allows people time to save money towards purchase of a home of their own by
granting them a limited tenancy that either allocates a proportion of rent paid
into a dedicated savings pot, or charges a reduced rent on condition that the
tenant undertakes to save towards a deposit may be a useful vehicle.
This
solution will not work for everyone.
There are and always will be MANY people who are simply too low paid to ever
expect to purchase their own home. For
these people public sector rented accommodation is a must. Government must accept that the private
sector is profit driven and will not ever pick up the shortage in supply of
affordable accommodation required to meet burgeoning need.
I am on leave until the 8th of September. May I wish you all a very pleasant Bank Holiday.
