27 June 2008
Social landlords must not use the downturn in the housing market as an excuse for delaying development schemes, a leading civil servant told delegates.
Insisting that the government still wants to see 3 million new homes built in England by 2020, Richard McCarthy chastised housing associations for finalising much of the 2006/08 National Affordable Housing Programme in February and March this year.
'Help yourselves and help the market by taking up your programmes now,' said McCarthy, director general for housing and planning at the Department for Communities and Local Government. 'It doesn't help us if you delay until the last few months.'
He stressed that the need for housing was as acute as 12 months ago, when the government first made its pledge. 'We recognise the scale of the challenge that you face. It's about how you all respond to these situations now while keeping an eye on the future.'
Steve Douglas, chief executive of the Housing Corporation, said the public sector was best placed to meet the 'fundamental need' for more homes to rent and buy.
'To rely on the private sector alone to deliver in this market will be a recipe for disaster,' he said.
Admitting that 'house builders are hurting', he promised that a major programme involving council and other public sector land would be announced later this year.
'It's at times like these that the public sector comes into its own,' he said.
Although the price of borrowing had risen, social landlords were still reaching good deals with private lenders. 'All the ingredients to achieving 3 million homes by 2020 are still there,' said Douglas.
At the conference, Notting Hill Housing revealed it receives 200 enquiries per year from people with part-buy, part-rent homes who wish to sell back part of their equity.
Housing director urges action day over subsidy
Modest changes to the housing subsidy system will not allow councils to retain enough rent income to make sustainable improvements to their stock, a housing director told delegates.
'We should not tinker with what we've got. It's broke,' said David January, director of housing at Waverley Borough Council, which pays more than £10m per year into the national housing revenue account.
Calling on local authorities to organise a day of action that would include tenants protesting to MPs at Westminster, January insisted that the account should be replaced with an entirely new system that stops surpluses being snatched by the Treasury.
This year, the HRA is expected to generate a surplus of £194m, which will be diverted to other public services.
'Money has been taken out of the housing finance system,' he said. 'Now is the time for the Treasury to put some back in.'
About three-quarters of the 206 authorities covered by the HRA pay more in than they get out. With rents rising, it is forecast that the number in so-called 'negative subsidy' will continue to increase.
Phil Taylor, director of resources at Sheffield City Council, urged authorities to support the Department for Communities and Local Government in making the case for change to the Treasury during the current HRA review.
'This is a once-in-25-years opportunity. That's how often financial regimes change,' said Taylor, whose council is in the minority that benefit from the recycling of funds.
New RSL regulator must be a 'champion'
The new regulator for social landlords must champion tenants and avoid the same pitfalls as the Housing Corporation, according to the corporation's deputy chief executive.
Admitting that at times the corporation is too close to the RSLs it regulates, Peter Marsh called on the Tenant Services Authority to set standards that challenge all providers of affordable housing to raise their game.
'It's fair to criticise the corporation as custodian of the club rather than champion of the consumer,' he told the conference.
'But times are changing and we've probably stretched the existing framework as far as possible.'
The TSA, previously known as the Office for Tenants and Social Landlords, or Oftenant, will regulate housing associations from next April and local authorities within a further two years.
Marsh pointed out that, unlike homeowners, dissatisfied tenants cannot move house or select another landlord. Many are happy with modest consultation, such as receiving more say over how their home is decorated, or the contractor that carries out repairs.
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