Select Committee on Office of the Deputy Prime Minister: Housing, Planning, Local Government and the Regions Written Evidence


Memorandum by Angela Pinter (EMP 33)

SUMMARY

Waste of Public Funding/Cohesion/Spatial Segregation

  Great concern must be expressed about the careful avoidance of the objective facts. The demolition of Henry Sutton Court, which was recently built, was never occupied and was subsequently demolished, represents a complete waste of public resources. Many of the homes due for demolition are owned by registered social landlords.

  The NHF has at great expense launched an initiative called INBIZ (In Business for Neighbourhoods).

  This presumably includes demolishing whole neighbourhoods too. Several RSLs are demolishing large numbers of properties in the follow up to the civil disturbances in Northern cities. Much of this agenda is being driven by housebuilders in tandem with the social housing industry and it is an industry which seeks to expand with public subsidy building homes which nobody aspires to live in the long term.

  It was social housing which has a pivotal role in the events leading up to those civil disturbances. It is not accident that these disturbances took place in areas where the inward migration was most intense and where the provision on the "basis of need" exacerbated and entrenched the segregation.

  It is not just a question of oversupply. Regeneration funding was also area-based and this further fuelled conflict although there have been many attempts to deny this by regeneration practitioners, political activists and commentators.

  Much of this need was manipulated within particular ward boundaries or regeneration bid areas with high degrees of population loss or gain.

  The Community Cohesion Panel has paid little attention to this in relation to the scale of the problem. Failed housing markets invariably took place in areas with single party dominance. Such publicly funded fiefdoms found it convenient to avoid the mounting problems on their doorsteps. This was further exacerbated by the prevailing lack of enforcement within the built environment. This included planning permission, party wall agreements, building regulations.

  Now they want to demolish whole neighbourhoods in order to create "civic pride". How can pride be created by making the familiar disappear?

  Many RSLs are taking part in this agenda by constantly proclaiming the word "diversity" as if the mention of the word itself creates something. It is disguising the reality. There is no diversity in social housing. Nobody who works in it lives in and or aspires to live in social housing. Those who do are eager to leave it and move into another tenure usually owner-occupation. Further social housing no longer contains a cross section of society. The majority of tenants are long term economically inactive.

  Official agendas are contradictory and are not reflecting a long term coherent plan. There is an absence of regional planning. The urban summit, the emphasis on sustainable communities cannot disguise that many areas have been abandoned by successive governments. Many towns, especially in the North, had parochial attitudes and no long term empty homes strategy.

  It seems a waste of long-term sustainable resources to demolish homes which require only modernisation. Building new homes will not be the basis of a more stable community unless there is also a sustainable economic hinterland. The failure of housing markets has been in tandem with drastic changes to and sometimes collapse of local economies in a vicious circle of decline.

  Some issues which should be explored:

  There is even a case to encourage second homes in some areas although this could have contradictory effects unless there are also plans to intervene to stabilise the local economy.

  Knock through grants will merely entrench more spatial segregation and separation. It will encourage people to move in specifically because of the availability of such grants. It is also wrong to reward those who already own property with more property merely because they have large families. This is a very perverse incentive which has serious implications.

  Short term planning permission is one option which could be further explored:

    —  an to out of town shopping centres;

    —  site value rating (in more prosperous towns); and

    —  extension of right to buy.

  Community Development Trusts to create broadly based local stakeholders which can use land values while maintaining them in the public sphere.

  The decent homes standard should be suspended and is unachievable in certain areas. It could be offered to students and others who are living on a low income. This may create access to those who would not otherwise afford

  Homesteading basis for renovating abandoned or derelict homes.

  A new local tax. Council tax is now a source of social injustice with a disproportionate effect on low paid, particularly for those who are renting. The regressive effects of council tax in specific locations has encouraged abandonment. In extreme cases the value of a property can be less than the annual council tax. Although rare it should never have been allowed to get to this situation

  The local tax base has been decimated in many declining areas. The vicious cycle of decline is obscured in areas of comparative prosperity. But in fact many prosperous areas have large proportion of empty and neglected property with unpaid taxes which are not pursued by local authorities.

  Insurance rates are becoming the measure of decline and indicate economic activity and property values. More should be done with insurance companies to create a long term strategy to arrest decline. Insurance exclusion together with other forms of postcode exclusion is undermining attempts to make progress and this is likely to affect pathfinder areas.


 
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