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What is the Future for Social Housing? David Mullins Professor of Housing Policy, University of Birmingham Community Housing Cymru One BIG Housing Conference October 6 th 2016 Llandrindod Wells

What is the Future of Social Housing · 2016-10-11 · PRS rather than social rent in last 10 years • But –higher rents, poorer conditions and massive insecurity • Need to reform

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Page 1: What is the Future of Social Housing · 2016-10-11 · PRS rather than social rent in last 10 years • But –higher rents, poorer conditions and massive insecurity • Need to reform

What is the Future for Social Housing?  David Mullins

Professor of Housing Policy, University of Birmingham

Community Housing Cymru One BIG Housing Conference October 6th 2016

Llandrindod Wells 

Page 2: What is the Future of Social Housing · 2016-10-11 · PRS rather than social rent in last 10 years • But –higher rents, poorer conditions and massive insecurity • Need to reform

Social Housing a view from the other side of  Offa's Dyke

Page 3: What is the Future of Social Housing · 2016-10-11 · PRS rather than social rent in last 10 years • But –higher rents, poorer conditions and massive insecurity • Need to reform

From Social Housing to Anti‐Social Housing

Security • Secure homes and succession rights • Fixed term tenancies

Cost

•Affordability (housing for poor  accessible to employment )

• 80% market rents• Benefit cutbacks, bedroom tax  

Need •Need to Desert •Welfare conditionality

Quality 

• Property Conditions earliest driver for council housing 

• Agency:  PRS as discharge of duty  • Removal of link between subsidy and quality

Undermining the Four Goals of Social Housing 

Page 4: What is the Future of Social Housing · 2016-10-11 · PRS rather than social rent in last 10 years • But –higher rents, poorer conditions and massive insecurity • Need to reform

From Social Rent to Private Rent• Steering

– Discharge of duty– Housing options– Social lettings agencies 

• Funding– Capital subsidy to personal 

subsidy – Tax relief  (£5bil to BTL on 

mortgage interest) cut 2015• Choice?

– Eroding advantages of social housing tenure v PRS 

– Poor move to lower end PRS through market & LHA caps

– Emergence of sub‐PRS ‐Beds in sheds – subdivision and letting – non‐converted industrial buildings

Page 5: What is the Future of Social Housing · 2016-10-11 · PRS rather than social rent in last 10 years • But –higher rents, poorer conditions and massive insecurity • Need to reform

From Social to (Un)Affordable Housing• Blurring of Boundaries• 80% Market Rents • In Work preference • Re‐discovery of the middle rental market 

• Taking out social housing on high cost sites 

Heygate Estate, London 1200 council homes to be replaced with 2400 new homes but just  79 new social rented homes on the site 

‘profound challenges face councils who want to drive harder bargains with private developers over the 

provision of community benefits, including low‐cost homes. Political will matters, but a developer‐friendly mayor such as Johnson can enable this to be bypassed 

or undermined’ Guardian 7/10/14. 

Page 6: What is the Future of Social Housing · 2016-10-11 · PRS rather than social rent in last 10 years • But –higher rents, poorer conditions and massive insecurity • Need to reform

From Rented Homes to Starter Homes Reforms seem designed to undermine social housing:• S106 rentals lose out to 

starter homes • 2 for 1 stock loss under HA 

RTB & council sales • Pay to Stay • HA 4 year rent reductions • New principle of no social 

housing on high value sites?  • ONS Reclassification• A step closer to ‘end of 

social housing’?• LHA limits for supported 

housing rents

http://www.planningresource.co.uk/article/1372562/new‐duty‐include‐starter‐homes‐reasonably‐sized‐sites‐mean‐

section‐106‐negotiations

Page 7: What is the Future of Social Housing · 2016-10-11 · PRS rather than social rent in last 10 years • But –higher rents, poorer conditions and massive insecurity • Need to reform

Looking for Inspiration? 

Page 8: What is the Future of Social Housing · 2016-10-11 · PRS rather than social rent in last 10 years • But –higher rents, poorer conditions and massive insecurity • Need to reform

Privatised or Hybridised?

Privatisation driven by neo‐liberalism • Reduced welfare state • Housing privatised • Uni‐linear change process state to 

market 

Hybridisation : three sectors in tension• Third sector (community) 

organisations take on public services• Become hybridised, new hybrids 

created (e.g. stock transfer HAs) • State:market:community drivers play 

out  in tension field

• No one says you must ignore the community – community links a key potential future strength

THERE ARE OPTIONS!!GOOD HYBRIDITY OR BAD HYBRIDITY?

COMMUNITY

MARKETSTATE

Tension Field

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SECTOR DIVISIONS  

• The social housing sector has become dangerously divided  ‐ a bit like the Labour Party but not so nasty 

• Colin Wiles – Guardian Blog September 2016

• In the one hand are the pragmatists…go with the flow and do the government’s bidding with its trajectory towards home ownership

• The traditionalists see social rented housing as worth fighting for…to boost the economy and cut the cost of housing benefit

Page 10: What is the Future of Social Housing · 2016-10-11 · PRS rather than social rent in last 10 years • But –higher rents, poorer conditions and massive insecurity • Need to reform

Three Types of Sector Response

1. Contractors of the State

2. Independent social entrepreneurs

3. Protectors of public value 

Which Way for Wales? 

Just sign here!!

Source: Mullins and Jones (2015) Delphi Survey 2015www.ingentaconnect.com/content/tpp/vsr/pre‐prints;content‐pp_VSR‐D‐15‐00020R2

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Social Mix – still important but harder to  do 

Promoting social mix seen as increasingly important goal  for social 

housing organisations 

But recent policies such as starter homes reduced grants, scaling back of  Section 106 are making social mix harder to 

achieve

Source: Delphi Survey Mullins and Sacranie 2016 

Page 12: What is the Future of Social Housing · 2016-10-11 · PRS rather than social rent in last 10 years • But –higher rents, poorer conditions and massive insecurity • Need to reform

Reasons to be Cheerful 

We’re in Wales!

Page 13: What is the Future of Social Housing · 2016-10-11 · PRS rather than social rent in last 10 years • But –higher rents, poorer conditions and massive insecurity • Need to reform

Reasons to be CheerfulYES! We’re in Wales!

• Community based housing association sector, community mutuals  and support for new coops

• 58% grant rate • Homelessness reforms • 20,000 affordable homes 

target • Wellbeing Wales Act 

Are we in heaven?  No, We’re in Wales!• No Housing and Planning 

Act• No 1% rent reductions• No 80% market rents• No work preference • No taking out housing on 

high cost sites• Right to Buy to be 

scrapped • Less merger mania 

Page 14: What is the Future of Social Housing · 2016-10-11 · PRS rather than social rent in last 10 years • But –higher rents, poorer conditions and massive insecurity • Need to reform

But Some Common Challenges

• Public Expenditure restraints (3.2% cuts in next 3 years

• Social Security still Westminster controlled and welfare reform continues  

• ONS reclassification decision • BREXIT and threat to ERDF/ESF • BREXIT and the ‘left behinds’• Peaking of home ownership, ‘generation rent’ • Unmet demand for social and affordable housing 

Page 15: What is the Future of Social Housing · 2016-10-11 · PRS rather than social rent in last 10 years • But –higher rents, poorer conditions and massive insecurity • Need to reform

BREXIT – DRIVERS & OUTCOMESREFERENDUM DRIVERS • Clear geographieshttp://www.bbc.co.uk/news/uk‐politics‐36616028

BREXIT OUTCOMESNo certainty about:• House prices• Migration• Economic Growth • But one clear outcome so 

far is the £

BREXIT OUTCOMESERDF?ESF?Replacement? 

Page 16: What is the Future of Social Housing · 2016-10-11 · PRS rather than social rent in last 10 years • But –higher rents, poorer conditions and massive insecurity • Need to reform

BREXIT & DISEMPOWERMENT 

• “92 percent of housing association chief executives were for Remain, yet polls suggest that the overwhelming majority of their tenants were for Leave.”

Colin Wiles – Inside Housing Blog June 2016

• “To what extent did social housing tenants feel angry about being excluded from decisions that affect them, whether it’s the “worst‐ever” Housing Act or mergers and Regeneration schemes that are carried on without their input?”

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LOOKING TO THE FUTURE

Our 5 Recipes for England1. Stick with social rented 

housing2. Cross subsidy and 

social mix3. Flexible Rent and 

Tenure4. Socialise private rent5. Re‐engage with 

Community 

WALES ? Puzzled      Dragon

Page 18: What is the Future of Social Housing · 2016-10-11 · PRS rather than social rent in last 10 years • But –higher rents, poorer conditions and massive insecurity • Need to reform

1. Social Rent has a viable future • The rush to change social 

housing ignores its continued contribution and viability

• Thanks to historic subsidies current social rent housing generates surpluses supporting future construction 

• Capital subsidies give better value than expanding the HB bill for private rent for long term tenants and assets (so stick with 50%+grants) 

• Low rent accommodation  supports people into employment and a stable home for families (so avoid shift to ‘affordable rents’)

Source: Pete Redman TradeRisks 

Page 19: What is the Future of Social Housing · 2016-10-11 · PRS rather than social rent in last 10 years • But –higher rents, poorer conditions and massive insecurity • Need to reform

2. Cross Subsidy and Social Mix • Build new social rent housing alongside 

market and sub‐market own and rent options

• Restore Section 106 new social rent in every market housing development

• Market rent and sale not as a separate business but part of a wider, flexible social housing offer, reducing stigma 

• Not displacement and gentrification but more social rent in mixed communities

• Increasing density can enable social mix, viability  and preservation of social rent 

• Different approaches needed in low value areas to replace and  upgrade poor quality homes (e.g. valleys and west wales)

• Wider socio‐economic impact of community housing sector proven in Wales by WERU

Page 20: What is the Future of Social Housing · 2016-10-11 · PRS rather than social rent in last 10 years • But –higher rents, poorer conditions and massive insecurity • Need to reform

3. Flexible Rent and Tenure • As incomes rise households 

should be able to stay in social housing but make a higher rental contribution

• Where income falls they should be able to revert to lower rents 

• But avoid pressure to move and benefits traps 

• Households should also be able to stay in the same houses either as renters or as owners – Dutch te wohn (to live) concept

Source: Gregory, Mullins, Redman and Murie (forthcoming) 

Page 21: What is the Future of Social Housing · 2016-10-11 · PRS rather than social rent in last 10 years • But –higher rents, poorer conditions and massive insecurity • Need to reform

4. Private Rent – How could it become the new social rent?   

• 1 million low income families into PRS rather than social rent in last 10 years

• But – higher rents, poorer conditions and massive insecurity

• Need to reform the low income niche of PRS (bottom 40%) – Social lettings agencies to give 

access to better, well managed PRS homes

– Proper regulation and enforcement of conditions by refinancing LA private sector teams

– Longer statutory tenancy terms • Best value arguments to shift back 

to capital subsidies and social rents to avoid inflated housing benefit costs   

Page 22: What is the Future of Social Housing · 2016-10-11 · PRS rather than social rent in last 10 years • But –higher rents, poorer conditions and massive insecurity • Need to reform

5. Re‐engage with Community• We need to support a range of agencies to deliver social 

housing – LAs and HAs but also grass roots community agencies 

• Grass roots agencies can provide better stewardship and restore community influence on housing in their area

• Instead of disposing of unwanted assets to the market by auction HAs should offer to community based organisations who can provide local stewardship & social value 

• Resident involvement in governance is an investment not a cost – it could restore sense of ownership for ‘the left behinds’ post‐BREXIT

• Alternatives to large scale social market housing models needed with more choice and responsiveness

• Wider range of agencies to include CLTs, cohousing, tenant management organisations to restore civil society roles in housing

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Re‐establish the support base for social housing 

A  Genuinely Tenant‐ led housing sector would be much harder to undermine 

Page 24: What is the Future of Social Housing · 2016-10-11 · PRS rather than social rent in last 10 years • But –higher rents, poorer conditions and massive insecurity • Need to reform

Inspiration for the Future is already here 

Community Land Trusts Socially responsible stewardship 

Page 25: What is the Future of Social Housing · 2016-10-11 · PRS rather than social rent in last 10 years • But –higher rents, poorer conditions and massive insecurity • Need to reform

Reasons to be Cheerful 

We’re in Wales!

Page 26: What is the Future of Social Housing · 2016-10-11 · PRS rather than social rent in last 10 years • But –higher rents, poorer conditions and massive insecurity • Need to reform

Before I leave can I have • Housing Wales Act 

homelessness regime • 58% grant rate • Grass roots housing 

association sector • Partnerships with local 

authorities • 4 Community Mutual 

transfers • Pioneer cooperative 

projects • 89 New build co‐op 

homes 

Page 27: What is the Future of Social Housing · 2016-10-11 · PRS rather than social rent in last 10 years • But –higher rents, poorer conditions and massive insecurity • Need to reform

Further Information & Acknowledgements:

Housing and Communities Research Group http://www.birmingham.ac.uk/research/activity/social‐policy/housing‐

communities/about/index.aspx

Prof David Mullins – [email protected]

Thanks to James Gregory, Pete Redman and Alan Murie, Halima Sacranie and Tricia Jones who contributed to HCR research projects 

Thanks to Bob Smith, Dave Palmer, Nic Bliss and Peter Mackie for updates on Wales