Big Issues

Tuesday 18 March 2008

Stephen Finlay, Head of Housing Research at Ipsos MORI's Social Research Institute, has been talking to some key housing professionals to find out what's at the top of their agenda for 2008.

The Queen's Speech left no doubt that housing is a big priority for Gordon Brown's government. House building targets stole the headlines but a raft of legislative measures suggest a commitment to tackling the big housing issues through organisational reform - chief among these the creation of the new Homes and Communities Agency and Oftenant, the regulator for the social rented sector.

Whether this has registered with the public is another matter. Our own research consistently shows housing remains low on the list of public priorities and despite signs of a rise in recent months it remains way behind issues such as immigration, crime and health.

In all likelihood it is not the promise of legislative change that has caught the public's imagination but rather concerns over the prevailing uncertainties in the housing market, as well as wider fears about the economy in general.

Against this backdrop, we have asked a range of key figures to share their views on what they see as the big issues for 2008.

Ask any housing professional about the big issues of the day, and the Government's target of 3 million new homes by 2020 is the first thing that comes to the fore. But it is clear that there are a number of different issues and concerns arising from this, depending on individual perspectives and priorities.

For Kevin Williamson, Chief Executive of the National Housing and Planning Unit, tackling affordability through supply side initiatives is the key issue. Indeed, although a big step forward the Unit believes government targets do not go far enough and the NHPAU detailed this in a response to the Green Paper. "As we set out our responses to the Housing Green Paper, we think that up to 2020 we probably need an additional ¼ million more homes than is currently in the Government's target...if we were to increase supply to around 270,000 homes a year, that would bring stability to the affordability position, and indeed, would help the Government meet its own Public Service Agreement target which was agreed as part of a spending review recently".

For many the key question is how to ensure delivery of these targets. David Orr at the NHF recognises the integral role of the planning system in this. "The availability of land is going to be absolutely critical and a planning system that's able to turn around planning applications efficiently is also going to be critical".

Adam Sampson, Chief Executive of Shelter, also sees this as pivotal in meeting supply targets, with strong leadership at the local level essential. What is required is a willingness for "town halls up and down the country to take on and overcome local opposition to house building on a site by site basis". If these targets are not just to be theoretical it will also require a more detailed series of policy measures and above all political consensus.

For Grant Shapps, Shadow Housing Minister, delivery will be key, but he believes fundamental change is required to move away from centrally imposed top-down, Whitehall targets. Increasing land supply, reform of s106 and stronger local political involvement is the key - "the solution here is to empower local communities by providing them with positive incentives. So the Government should be linking keeping the local hospital open as the population expands, use of planning gain benefits to help the existing population, and perhaps in the longer term the ability for a community to keep some of the tax gain locally, rather than giving it up to central government."

Responsibility for delivery is a big issue for Roy Irwin, Chief Inspector of Housing at the Audit Commission. "There's still a lack of clarity about who makes the key decisions … who is responsible for which piece of delivery, so is it the HCA or is it the local planning authority? Is it regional development agencies related to economic development or is it those who get grants …" The concern is that the question of delivery, which is highly political in nature, will overshadow key debates on the quality, management and resources for existing housing especially in the run-up to the next election.

For some the focus on quantity at the expense of quality is a concern that is resulting in a lack of coherence in government policy.

Rachel Sharpe is Head of Strategy and Regeneration at Southwark Council, the largest landlord in London, with a massive retained council stock. She believes that maintaining investment in their stock will be one of the biggest issues for them. "We recognise that there is real housing need there for new houses. But unfortunately that's meant that they have become less interested in issues around the quality of the stock and the plight of our existing residents who need real investment in their homes".

For other social housing providers it is the current market uncertainties and the impact this may have on their ability to achieve targets that will be the big issue. Deborah Shackleton, Chief Executive of Riverside Housing Group, which manages around 50,000 homes throughout England, believes current market conditions have already begun to dampen the enthusiasm of developers with implications for the levels of affordable housing that can be negotiated.

Supporting People is another big issue. Provision for some of the most vulnerable members of society will become increasingly challenging in the face of budgetary changes. Rachel Sharpe says "I suppose the general issue is about the Government gradually introducing more flexibility around various budgets, which again sounds like a good idea, until you realise that there is a real danger of that money being siphoned off for non-housing purposes."

Other big, and on-going, issues mentioned by those representing social housing providers include the expansion of appropriate sustainable development strategies to address the challenge of climate change as well as a continued focus on mitigating the effects of financial and social exclusion arising within the sector.

For Steve Douglas, Chief Executive of the Housing Corporation, the housing market is seen as both the biggest opportunity and the biggest challenge for the sector. "Government has confirmed its commitment to the housing agenda with £8.5 billion going into new provision over the next three years." The issue now is to ensure that it is spent on the right homes, of the right quality and in the right places.

A corresponding move by government towards Comprehensive Area Assessment will, according to Roy Irwin, place greater emphasis on the performance of housing providers in conjunction with other public service agencies. "Yes, the performance of the housing organisation is very important, but it's even more important when it's linked with the performance of the local authority, the police authority, youth services and the criminal justice arrangements."

It's clear then that the biggest issue for the coming year is how best to deliver a significant expansion to the development programme without neglecting aspects of quality, design and sustainability, or ignoring the needs of those already living in social housing. Proposals for institutional change are included in the Housing and Regeneration Bill. These are broadly welcomed although individual opinions do vary.

Steve Douglas views the creation of the new agency as a positive step, "bringing together the strengths of the Housing Corporation to manage large and complex programmes with the regeneration capacity of English Partnerships and a number of delivery functions from CLG." The creation of an independent regulator for tenants and consumers will help move towards a standardised level of service wherever in the country a tenant lives and whoever is their social landlord.

David Orr also agrees that it is right and proper that providers of social housing should be regulated but disagrees that the current terms are the best way forward. "I think we do need to see changes there to allow us to have a properly and well regulated sector that can deliver against government objectives."

Deborah Shackleton welcomes the Bill but is concerned that "regulation, applied inappropriately will act as a disincentive for innovation across the sector."

It is clear from those we have spoken to, that housing issues have gained political momentum fast and as market worries, and affordability issues, continue to affect an increasing number of people, housing issues will continue to gain profile with the public.

Steve Douglas sums up the current situation: "It's the opportunity of a generation for us to make a difference in terms of the quality and quantity and regeneration of places and communities."

Stephen Finlay is Head of Housing Research and Associate Director at Ipsos MORI