‘Securing the Future of Council Housing’ Response from Defend Council Housing

In a new report Securing the Future of Council Housing, 20 large Council landlords say: “the costs they need to maintain their council homes outstrip the income they have to pay these costs.”

Defend Council Housing welcomes this alarming Report. It sets out the threat to the future of council housing from under-funding of housing revenue accounts (HRAs). The Local Government Association estimates Councils will have HRA deficits of £3 billion over the next ten years.

Securing the Future for Council Housing interim report calls on Government to

  • Give stock-owning Councils a one-off payment of £644 million to compensate for the difference between increasing costs and rental income
  • Reopen the 2012 ‘debt-settlement’ (when the new ‘self-financing’  system was introduced) and readjust the ‘debt’ allocated to Councils
  • Introduce a 10-year rent settlement
  • Reintroduce ‘rent equalisation’
  • Invest in a new Green and Decent Homes programme “to meet the government’s climate, housing and growth objectives”, “on a similar scale to the original Decent Homes Programme”
  • This should “commit to providing this £12 billion over the next five years” to cover the cost of bringing all homes up to Energy Performance Certificate (EPC) Rating C, addressing fire safety issues and meeting the original Decent Homes Standard.
  • Provide £23.5 billion capital funding for decarbonising existing council housing.
  • Reform Right To Buy to cut the loss of homes and allow councils to use receipts as they wish.

Defend Council Housing welcomes most of the demands and calls on these councils and others to work with them, and other tenants and residents, trade unions and housing campaigners, to make these demands a reality.

DCH's response says many of these demands are welcome but councils should go further and demand debt cancellation and the abolition of Right to Buy. The risk to tenants of failure to invest in council housing is very real and even worse than set out in the report. Tenants should not be further punished by increasing rents and service charges above inflation. DCH calls on councils to join with tenants, trade unions and housing campaigners to pressure government to make positive changes in council housing finance and management - the only way to end the housing crisis. 

DCH says:

Debt cancellation

When Council housing finance was reorganised by Government in 2012, the new ‘self-financing’ system redistributed the combined existing housing debt between local authorities. Defend Council Housing and a range of other organisations including the Local Government Association, called instead for debt cancellation. Tenants had paid more in rent that the outstanding debt for previous house building programmes. In the 25 years to 2008 council tenants paid in to central Government £91 billion in rent, and in return Councils  received ‘allowances’ of £60 billion. We think the time has come to press Government again for debt cancellation, which would end the historic robbery of tenants’ rents, and release an extra £1.3 billion a year to invest in existing and new council homes.

Decarbonising council housing

Councils are right to call for government funding, without which existing stock will not be decarbonised, destroying any prospects of achieving net zero.

Right to Buy

Restricting eligibility for Right ToBuy would be an improvement on the status quo, but the easiest way to stop the loss of stock would be to end RTB, as the devolved administrations have done in Wales and Scotland. 

‘Rent equalisation’

We oppose any return to ‘rent equalisation’. This would be designed to introduce above-inflation council rent increases. When previously imposed, rents were driven up towards housing association rent levels  (in part to try and overcome tenant resistance to privatisation of council housing stock through ‘transfer’ to housing associations). Rent increases were way above inflation and increases in earnings. More recently, it has been shown that for many tenants (especially but not only those on district heating networks) combined rent and service charges have increased beyond affordability. Some tenants face eviction because they cannot pay service charge increases of sometimes 200% or 300%. What we need today is a commitment that above-inflation rent and service charge increases will end. The existing Tory policy of CPI+1% should be abandoned.

Risk to tenants

Without central government funding HRAs sufficiently, Councils will not be able to maintain and renew existing housing, never mind fund a renaissance of council house building. The choice for the Government is “between increasing rents significantly, providing capital investment, or exposing tenants to intolerable safety and health risks.” But significantly increased rents and service charges and intolerable health and safety risks are already a reality for many tenants. Further rent increases will impoverish more tenants and drive up the housing benefit bill. Failure to deal with health and safety risks will undermine the future of council housing and increase the outrage of unacceptable living conditions.

Work together to demand change

Providing the capital investment on at least the scale proposed by Southwark Council and others in this Interim Report, is a necessary first step. We are keen to work with these and other councils, and with tenants and trade unions, to this end.

Don’t let government scapegoat migrants for the housing crisis

2016, November 23 – The Palace of Westminster, London : Tenants and housing campaigners protest outside parliament and call to Axe the Housing Act

And here we are again!

Another in a long line of attempts by the government to distract attention from its failure to solve the housing crisis by attempting to blame others. In 2016 the Housing Act identified better-off council tenants as the problem and the governments solution was to be ‘Pay to Stay’, which was defeated by a combination of local authorities saying it would be unworkable, and thousands of tenants and residents in the campaign we initiated.

This time the government returns to a familiar refrain – ‘Don’t blame us for the lack of council housing, blame migrants!’ The Consultation on reforms to social housing allocations, published 30 January 2024 has been dubbed ‘British homes for British workers’. Yet it contains no plans to increase the overall supply of council housing, only to restrict access further.

Homes for All and Defend Council Housing have initiated a statement in response. Many of our concerns are shared by charities and organisations in the sector. Fourteen housing bodies signed a letter opposing ‘British homes for British workers’ policy. The letter highlighted that 90% of new social housing lettings go to UK nationals.

Please sign the statement (set out below)

This leaflet is available in hard copy. Contact us if you would like some to distribute.

Government not Migrants caused the  housing crisis 

It’s time to invest in council housing 

The British homes for British workers agenda is racist and divisive. The proposed  exclusions of people from applying for social housing, and the ill-considered and  draconian new eviction provisions, both meet with our determined opposition. Neither of them will do anything for those people who have been systematically shut out of the housing market by the effects of past government policies. 

Instead, we should celebrate the diverse communities on housing estates and in  housing need. We call upon the government to increase the numbers of social homes by enacting the Five Point Plan endorsed by the campaigning organisations Homes for All and Defend Council Housing.

  1. Government investment in a mass council housing building programme,  including requisitioning of empty homes and abolition of ‘right to buy’ 
  1. Rent controls and secure tenancies in the private rental sector. Robust regulation  of housing associations 
  1. New funding to repair and refurbish existing council housing – do not demolish 
  1. Adequate funding for accessibility, fire safety, and for retrofitting and thermal  insulation 
  1. Planning for the people and the planet, and not for developers’ profits 

The government misunderstands the purpose of housing policy

The government misunderstands the purpose of housing policy, which is to ensure  that every household has a decent, secure, affordable home. Housing policy does not exist for the government to propagate a narrow and exclusive version of patriotism, or to devise double jeopardy schemes for those who have committed offences or engaged in behaviour that the government does not like, or to chuck people out of  their homes. Housing policy does not exist to run deliberately divisive election  campaigns. But all of that is happening here. 

The housing crisis – for some 

The housing problem is one of unequal distribution. The 2021 census reported  that there were 24,782,800 households in England and Wales. There were  26,394,777 dwellings, so the number of homes exceeded the number of  households by 1,611,977.  

Action on Empty Homes report that numbers of long-term empty homes rose yet  again in 2023 by 12,556 (or 5%) to 261,189, while long-term empties are now at  their highest level since 2011 (excepting the special pandemic conditions of 2020).

The Consultation document repeatedly refers to the £11.5bn Affordable Homes programme. However, this provides very little new social rent housing. 40% of the 2022/23 output consists of ‘unaffordable affordable housing’ which is not open to  those households in the highest need. Another 45% is Affordable Rent, and the Shelter report ‘A Capital in Crisis’ (2020) showed that London Affordable Rent (the variant of affordable rent most used in the capital) is not actually affordable for lower income working families. That leaves only 15% for new social rent homes,  many of which are in fact funded to support demolitions. 

Government policy is directly responsible for the scarcity of social rent housing, which the current policy initiatives purport to address. 

Council housing pays for itself 

The Five Point Plan requires government investment. The Shelter report ‘Building  for our future: A vision for social housing’ has shown in much detail how investment  in council housing pays for itself in reduced benefit costs, while enhancing social  inclusion and averting the unnecessary costs of social disadvantage. This is true  investment, bringing back a return greater than the initial outlay. 

There are some easy wins

Some proposals in the Five Point Plan are easy wins. The Right to Buy has reduced the social housing stock and has caused the scarcity to which this consultation refers. It should be abolished, to preserve the social housing stock which we have now.  

The government should revise and amend the National Planning Policy Framework  (December 2023 version) paragraph 65 and footnote 31 which does NOT require replacement of the affordable housing floorspace demolished in redevelopment and regeneration schemes. There should be a full and tenure specific replacement of such homes in such circumstances, along with full compliance with affordable  housing policies for the additional homes built.

Retain the space for local policy initiatives

These government proposals remove the local initiative and responsibility for many  aspects of allocations. Many local authorities have retained a social awareness and a social conscience in declining to enact the exclusionary policies which have been  permitted by the government on an optional basis in the past.

No to UK residence and local connection tests

Well over 80% of Britain’s housing is allocated solely by market mechanisms, creating and reinforcing inequalities which reveal the diversity of applicants and residents in social and affordable housing. The government should accept diversity and stop scaremongering about it. UK residence tests are unnecessary  and show that the government does not want to assist those in the highest need – and is not concerned about equalities.  

Local connection tests are discriminatory towards those who are homeless, but who have a limited connection to any specific area because of their homelessness. Mandatory tests would make that problem much worse, affecting the already socially excluded groups who are protected under the Equality Act, 2000.

No to mandatory income tests

The proposal for mandatory income tests ignores the strength that comes from mixed income communities in council housing and other social housing tenures. Nobody gains from making social housing a tenure exclusively for the poor. 

In response to consultation question 22, consulting on minimum income thresholds for applicants ‘to incentivise being in work or to ensure that the household can afford the property’, we say that too many providers are already using affordability tests to keep the most economically vulnerable households out of social housing. These barriers to access are a leading cause of homelessness, and they operate in a structurally racist manner. See more detail in two detailed reports that show how Housing Associations refuse to house the poorest. The  government should ensure that poor families have enough income to afford the  rent and service charges on a suitable social rent property. Landlord Affordability Tests for such properties should be made illegal.

Anti social behaviour tests and eviction plans

Anti social behaviour already provides grounds for possession claims. There are anti social behaviour orders, introductory tenancies, starter tenancies and demoted tenancies. Research for the Home Office (The drivers of perceptions of anti-social behaviour) shows that nuisance behaviour is closely linked with social exclusion, which can be ameliorated by initiatives to  improve the physical environment and to foster community cohesion. Instead of promoting exclusionary policies, the government should fund and develop  mediation schemes to build the capacity of residents to resolve disputes, along with work, education, training, and cultural activities for alienated youth.  

The government’s eviction plans make no reference to where people are going to  live afterwards. But this is the question we need to be asking.  

The crude and draconian requirement for social landlords to evict people gives the lie to the claim that the objective here is to house more ‘British’ people.

Proposed exclusions related to the Terrorism Act

The government is seeking to scaremonger people, using double jeopardy policies again. The definition of terrorism is questionable, owing more to selective foreign  policy objectives than to housing policy. We therefore oppose the planned exclusions of applicants related to the Terrorism Act. 

Conclusion

We note that the government has failed to secure the support of those who  primarily own and manage social housing, and of those concerned with housing needs and homelessness, and immigrant and refugee welfare. 

The National Housing Federation, Local Government Association, Association of Retained Council Housing, National Federation of ALMOs, PlaceShapers, Shelter, Crisis, St Mungo’s, Generation Rent, the No Accommodation Network, the Joint Council for the Welfare of Immigrants, the Welsh Refugee Council, and Tai Pawb have all signed a letter of opposition.

These proposals should be rejected, and replaced by investment in homes and  communities instead.  

“Our housing system is causing a national health emergency”

Mould is political projection on Houses of Parliament 13 March 2024 – NEF / Homes for Us

These are the words of Amaran, a children’s doctor working in South Yorkshire. He is featured in the film ‘Mould is Political’ which was projected on Wednesday last week on the Houses of Parliament. Homes for All joined the protest alongside around 80 other campaigners.

See a clip of the film and the protest outside parliament here (2 mins)

See the whole film here (12 mins) which includes a protest in Manchester also supported by H4A.

Join Fuel Poverty Action on Budget Day to stop cold weather deaths

Homes for All is supporting this London protest on the day that the government will set out its plans for the economy.

Throughout austerity, the COVID-19 pandemic and the ‘cost of living’ crisis, government’s policies have actively contributed to hundreds of thousands of avoidable deaths. Join us to demand an end to deaths fuelled by poverty.

We will protest in London alongside Fuel Poverty Action, UNITE the union, National Pensioners Convention and others. We urge our supporters in other parts of the country to join other protests planned in:
Barnsley
Birmingham
Carlisle
Exeter
Glasgow
Leeds
Manchester
Norwich
Portsmouth
Sheffield

Contact e4a@fuelpovertyaction.org.uk to find an event near you.

Housing campaigners urge Labour Councillors to adopt the 5 Point Plan

Homes for All supporters lobby Labour Councillors at Warwick University, Coventry on Saturday 10 February 2024

Housing campaigners traveled to Coventry on Saturday 10 February to leaflet and lobby the Labour Party local government conference and to encourage Councillors to support the 5 Point Plan for council housing. The broad-based action was supported by SHAC, Homes for Us (NEF) and others.

Whilst we were met with a generally positive response to the campaign with Councillors wanting to see housing prioritised for their constituents – concerns were raised around the Labour leadership’s failure to announce any strategy to tackle the housing crisis.

What is clear though, is that campaigners are committed to building from this action and ensuring that housing is pushed up the political agenda in the forthcoming general election. We know that the past 14 years has resulted in an acute housing crisis which is unsustainable and requires a radical change in housing policy. We need to keep on building a united housing movement and fight for decent, safe and secure housing for all.

Lobby the Labour Party LG Conference – We want homes for all and council housing

The housing crisis is out of control. As the General Election approaches, campaigners are coming together to demand radical changes in housing policy. Some of the campaigns will involve calling on the Labour Party to break from 12 years of the government’s failed housing policies and offer a radical change.

Homes for All has called for a lobby of the Labour Party’s Local Government Conference in Coventry at Warwick University on Saturday 10 February 2024. It is supported by groups within Homes for All such as DCH, SHAC, Unite Community and others, and also by The New Economic Foundation (Homes for Us) who are funding the travel from London to Coventry and back.

To book a seat on the transport contact rebecca.winson@neweconomics.org and / or eileenshort@hotmail.com

We have an organising meeting on 2 February for people who are booked to come – see this page for details http://www.axethehousingact.org.uk/get-involved/

Islington Homes for All Action and Sleep-Out outside the Ministry of Justice 20 October

Join Islington Homes for All on Friday 20 October at 3pm outside the Ministry of Justice (MoJ) to hand in petition signatures calling on the MoJ to lease 28 empty 3 and 4-bed ex-prison flats to Islington Council for families in need – as had been originally agreed!

We will then have a sleep-out to highlight the scale of homelessness and increase in stress for people being forced to live in unaffordable, overcrowded, insecure and temporary accommodation.

Meet at MoJ, 102 Petty France, London SW1H 9AJ at 3pm, Friday 20 October

Bring your sleeping bags – and/or join later for the Sleep-Out.

Please share and sign the leaflet and petition for the 28 Empty Flats here https://forms.gle/TrRkpGY8dKr1au3E7

More about the 28 empty prison flats here

Join the movement for council housing – Action charter for the housing crisis

Defend Council Housing (DCH) and Homes for All (H4A) welcome the launch by The All-Party Parliamentary Group (APPG) for Council Housing of an MPs inquiry into the need for council housing. This initiative has the potential to be spell out the facts about the present state of housing, and detail how to fix the housing crisis.

We are seeing the return to the slum, overcrowded, insecure living conditions of the 19th century that drove the mass council housing movement in the first place.

Whether you are in housing need yourself, horrified that millions are, or deeply concerned for future generations, join the movement for urgent action to address the housing crisis.

DCH and H4A is a broad coalition of tenants and residents – uniting over issues such as: Refurbish don’t demolish; Campaign against empty homes; Fire safety justice; Justice for Grenfell; End ‘no fault evictions’.

Support our 5 Point Plan which aims to provide concrete proposals to help solve the housing crisis.

1. Government investment in a mass council housing building programme, including requisitioning of empty homes and abolition of ‘right to buy’
2. Rent controls and secure tenancies in the private rental sector. Robust regulation of housing associations
3. New funding to repair and refurbish existing council housing – do not demolish
4. Adequate funding for accessibility, fire safety, and for retrofitting and thermal insulation
5. Planning for the people and the planet, and not for developers’ profits

More information on the APPG Inquiry

Read the report of the launch of the Inquiry and the interim report by academics. Read the Interim Report with contributions from: Prof Danny Dorling, Oxford; Dr Richard Goulding, Univ of Sheffield; Dr Neil Gray, Glasgow; Dr Stuart Hodkinson, Univ of Leeds, Dr Joe Penny, Bartlett Faculty of the Built Environment, UCL; Dr Glyn Robbins, London; Prof Stewart Smyth, University College Cork; Prof Paul Watt, LSE

Article in Morning Star about the Inquiry:

The future of council housing: it’s time to speak up
EILEEN SHORT, of Defend Council Housing, and Dr GLYN ROBBINS report on a crucial all-party parliamentary group inquiry into council housing that’s currently seeking members of the public to have their say

Five Point Plan resources

Sign the online petition

March for the future of the homelessness sector

Homes for All urges supporters to join our banner on Saturday in solidarity with the St Mungo’s strikers.

St Johns Church, Waterloo Road, SE1 8TY, at 11.30, Saturday 2 September

The strikers should hold their heads high as they return to work. The St Mungo’s strikers have been an inspiration to the trade union movement and so much more. It is unfortunate that they did not resolve all their demands but they can return to a more united workplace. They have helped highlight the scale of homelessness and a housing sector that is now in crisis and exposed the disproportionate salaries of senior managers and the prestigious trustee jobs while low paid staff have been striking to save services for clients.