Select Committee on Environment, Transport and Regional Affairs Appendices to the Minutes of Evidence


Memorandum by Ian Cole, Simon Kane and David Robinson (UWP 121)

CHANGING DEMAND, CHANGING NEIGHBOURHOODS: THE RESPONSE OF SOCIAL LANDLORDS

We have provided here a brief synopsis of the report, and highlighted one of the sentences which occasioned most comment—usually misrepresented in press coverage. We have concentrated on the final chapter of the report, as this attracted most attention. We also provide a note on the reaction to the report, mostly prompted by the press release issued by the Housing Corporation at the beginning of the year.

A BRIEF SYNOPSIS

    —  Chapter One of the report introduces the changing pattern of demand for housing.

    —  Chapter Two presents an account of social landlords' responses to these rapidly changing patterns of demand, concluding that measures are still at a relatively formative stage, with ad hoc policies gradually giving way to more strategic interventions. In some cases these strategic interventions involved acceptance that the neighbourhood was "over the brink" and set in a process of decline that housing management, either alone or in partnership with other sectors and agencies, could not reverse.

    —  Chapter Three argues that planning for decline presents a challenge to a sector weaned on growth and development that is unlikely to go away, and suggests that the need to discuss strategies for coping with decline will become every more pressing. In an attempt to facilitate this process, Chapter Three includes a section on the wide range of practical measures being introduced by landlords in the face of changing patterns of housing demand.

    —  Chapter Four raises and discusses some of the future policy dilemmas presented by changing demand and the challenge of managing declining neighbourhoods. The key elements of Chapter Four are summarised below.

  Key questions that are likely to continue to dominate policy debates about the future of social housing include the options for management, investment and partnership working.

4.1  MANAGING DECLINE OR REGENERATING COMMUNITIES

  Key questions include:

    —  can a sufficiently high level of capital investment "turn around" entrenched decline?

    —  how can the decision be taken to renew/regenerate an area or manage decline as a long-term process?

    —  what are the limits of housing intervention in improving demand for specific neighbourhoods?

  It is difficult to provide a success story where a neighbourhood in decline has been "turned around" completely either through the targeting of large sums of money or the fundamental changes in practice, joined-up working, resident involvement and community development. Recognising this point, and given that the grip on purse strings is unlikely to be slackened, the question arises whether certain neighbourhoods should be considered as simply beyond redemption.

  Where this is the case the challenge for social landlords and other agencies is how to manage the process, with all its implications for community support, residential mobility, and the survival of local services and amenities.

  At present, organisations are loath to acknowledge such a bleak prognosis for any of their estates—irreversible neighbourhood decline is "a problem that dare not speak its name". It is, however, a problem that is unlikely to go away, and the need to discuss strategies for coping with decline will therefore become ever more pressing.

4.2  THE FUTURE DIRECTION OF HOUSING INVESTMENT

  Key issues include:

    —  is it time to abandon a nationally-orientated approach for housing investment?

    —  how should different sources of capital funds be brought together?

    —  what criteria should govern decisions on future housing investment?

    —  what are the implications for the Housing Corporation, Government Offices, local authorities and RSLs?

  The increasing disparity between the challenge of decline in "the North" and the pressure for development in "the South" complicates the process of making decisions about relative need that have traditionally shaped the pattern of capital funding. It is therefore essential to increase the flexibility of capital finance and acknowledge regional differentiation in order to meet ever more diverse housing needs and requirements. Where the pattern of demand is fragile, more support will be required for selective demolition and planned capital disinvestment, with linked re-investment through other funding streams.

4.3  HOUSING AND NEIGHBOURHOOD MANAGEMENT

  Questions here include:

    —  what pressures can be applied to extend the practice of neighbourhood working?

    —  what scope is there to redirect mainstream budgets to sustain neighbourhood budgets?

    —  would a series of demonstration schemes in neighbourhood management open up new possibilities, if targeted at areas of low or uncertain demand?

    —  can the relationship between capital and revenue expenditure be reconfigured for supporting such neighbourhoods?

  Housing services are often the first to diagnose neighbourhood decline and to bear the brunt of arising problems. It is therefore in the interests of RSLs, and the neighbourhoods in which they work, that they take the lead and direct radical thinking towards acting on an integrated neighbourhood-centred approach to managing or tackling decline. Neighbourhood working is both desirable from a point of principle and necessary as a recognition of the character of housing demand issues in many locations.

4.4  PRO-ACTIVE PARTNERSHIP WORKING

  Issues here include:

    —  will the local authority take centre stage in moulding pro-active partnerships for areas of low demand?

    —  can regional development plans be required to incorporate discussions about future demand?

    —  can neighbourhood profiles be provided for those areas where incipient demand problems are emerging?

    —  can the views of front-line staff be incorporated more systemically in neighbourhood strategies?

  Many of the factors directly related to why households chose to move out or not to move into a neighbourhood, which are therefore the key determinants of changing demand, are outside the control of RSLs and local housing authorities. It is therefore essential to forge neighbourhood partnerships, not just as a "salvage operation", but to shape factors affecting demand once they start to emerge.

  Changing demand for housing is more than a housing issue. Partnership working may be widely recognised as essential, but familiar difficulties will remain, however, even in situations where financial resources to fund "joined-up" activities are available. Social landlords, through their front-line housing officers, are often first to sense emerging neighbourhood problems, but last to be included in supposed "joined-up" thinking.

4.5  HOUSING IN THE WIDER ARENA

  Housing demand does not exist in a cocoon, but is intimately linked to wider economic and social trends, and is affected by the policy environment too.

  No amount of regeneration funding will solve neighbourhood decline if the lack of real jobs across swathes of the North of England and the Midlands remain. No amount of enlightened housing management can solve problems created by the closure of the factories, mills and ship-yards that estates were built to feed. Landlords in such areas need to be operating a "twin-track" response here—dealing with measures devised to cope with the "here and now", while simultaneously thinking ahead with other landlords and agencies.

  The thinking which has traditionally governed issues of housing access, finance, management and development has been governed, often implicitly, by a model of "rationing"— of regulating the queue of people waiting for a desired product and service. This model has been outstripped by fundamental shifts in local housing markets in parts of the North and the Midlands, requiring a quite different set of "post-rationing" principles to anchor the array of initiatives being tried out.

THE PRESS RESPONSE

  This linked the report, on a very slow post-millennial news day, to three broader themes:

    1.  The need for demolition. The Daily Mail commented on the report, and listed Toxteth and Benwell as two of the areas needing to be demolished. Our report looked at neither of these two areas. Headlines such as "blighted areas of North not worth saving" (Daily Mail 4/1/00) offered, to put it mildly, a selective interpretation of the report. The phrase "beyond redemption" was picked up several times, in both the press and radio and TV interviews. The point was made in response that selective demolition may be needed in some neighbourhoods, but only when other avenues for renewal and transformation had been exhausted—and in these cases, the challenge for social housing and other agencies was how to manage the process sensitively, in full consultation with residents, and not "just walk away".

    2.  The North-South divide. This was an issue of some prominence at the time. The report indicated that the most severe problems of low demand in England were in the North West and North East (a finding reinforced by the Policy Action Team report on Unpopular Housing) and that more structural responses, including reducing housing supply, were needed to a far greater extent than those pockets of low housing demand in the "South", where changes in management practice could often reap rewards.

    3.  The "Waste of Public Money" A less prominent theme in press coverage was the line of "throwing money down a black hole"/"good money after bad" given the uneven effect of previous attempts at renewal in some neighbourhoods. The unanswerable question here, of course, is whether conditions would be even worse had prior intervention not taken place. The implication of the report was, in fact, that more resources, not less, would be needed to handle the sensitive question of managing neighbourhood decline over the long term.

Centre for Regional Economic and Social Research

Sheffield Hallam University

April 2000


 
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