Memorandum by UNISON (SRH 43)
1. INTRODUCTION
UNISON welcomes the opportunity to respond to
the CLG Select Committee enquiry into the supply of rented housing.
With 1.3 million members, UNISON is the largest
trade union in the UK. Many of our members work in housing departments
at local authorities, in housing associations and ALMOs. At the
same time a significant number of our members have direct experience
of the housing supply crisis and inflated housing market costs.
The document is set out in two sections. The
next section sets out our responses to the issues included in
the enquiry's terms of reference upon which we consider it appropriate
to comment. The final section then sets out UNISON's charter for
homes and communities, which is our statement of housing policy
priorities in the run-up to the Comprehensive Spending Review.
Our response to the DCLG's review of ALMOs is also attached for
the Committee's information. This is of particular relevance to
section 2.5 below, on the effectiveness of different social housing
models.
This work is informed by two recent surveys
of UNISON members. One of these was a survey of members carried
out by YouGov during September, the other a series of interviews
conducted with members working for ALMOs.
2. RESPONSE TO
ISSUES
2.1 The level of pubic funding required to
meet social housing needs
The last 15 years have seen a considerable decrease
in the number of new homes that are built, alongside a significant
increase in the number of new households. In the 10 years to 2001
the number of homes increased by 1.53 million, whilst the number
of households increased by 1.524 million. [108]Projections
suggest that a significant increase in house building is required
if we are to avoid major housing shortages in future years.
In these circumstances the least well off suffer
disproportionately. Since 1995 the number of families in temporary
accommodation has doubled to 100,000, while at the same time the
number of new affordable home completions fell by almost half
to 16,700 in 2004. In addition to the social costs, there are
political consequences of the housing crisis too. The May 2006
local government elections saw the BNP win 11 seats on Barking
and Dagenham Council, by exploiting frustration at the lack of
housing to stir up hate against ethnic communities.
Also of significant concern to UNISON is the
growing evidence of the impact of the housing crisis on the sustainability
of our pubic services. As the Halifax Key Worker Housing Review[109]
recently demonstrated, the average house is unaffordable for key
workers in at least 65% of towns across Great Britain. In the
South West this figure reaches 100%. In London and the South East
houses in 95% of towns and boroughs are unaffordable. In London
the average house price is 11.1 times the annual gross average
earnings of ambulance staff.
Whilst we welcome the additional investment
announced in the 2004 spending review by 2008-11 the total social
rented homes expected to be built each year will still only total
30,000.
Shelter have demonstrated that to meet newly
arising housing need and meet the government target of halving
the number of households trapped in temporary accommodation, an
additional 20,000 social rented homes need to be built over the
same period. This would mean a total of 50,000 social rented homes
being built each year, or 150,000 over the three years. UNISON
support Shelter's conclusions and believe that new council housing
should be central to achieving this target. We also agree with
the analysis that has been presented by the Campaign for More
and Better Homes, of which UNISON is a member, that £1.25
billion will be needed to provide the additional 20,000 social
rented homes necessary to meet this target.
2.2 The relative funding priority to be given
to social rented housing as opposed to shared ownership and other
forms of sub-market housing
Of major concern to UNISON is the balance of
public investment and use of assets over the longer term, not
just between regions, but also between the proportion of market
housing, shared ownership and social rent properties in meeting
the challenges of housing policy.
A recent poll of UNISON members, carried out
by YouGov,[110]
clearly demonstrates that there is support for shared equity schemes,
including key worker products, but also a recognition that more
homes should be built for social rent. Few of our members think
that the priority should be given to market housing. Members were
asked the following question:
The government have said that it wants more houses
built to ease the housing crisis. In view of this, what do you
think the government's priority should be?
| More houses to rent from social landlords
| 41% |
| More houses available to buy through shared equity schemes (including key worker housing)
| 38% |
| More houses to buy on the open market | 13%
|
| Other | 4% |
| Don't know | 4% |
UNISON believe that if the correct balance is to be achieved
action should be taken to address the trend towards an increasing
share of Housing Corporation funding being spent on shared equity
schemes. As evidence to an earlier ODPM Select Committee enquiry
into affordability and the supply of housing reveals, the proportion
of the Corporation's expenditure spent on shared equity has increased
dramatically, from around 15% during the 1990s to approximately
40% in 2006-08 programme.[111]
The Committee noted then that this is because investment in shared
ownership/equity schemes enables the corporation to maximise the
number of units secured per pound of public funding. We agree
with the Select Committee that a limit should be set on the proportion
of the Housing Corporation's funding that can be spent on shared
equity schemes. This balance should be decided at a local level,
reflecting differing housing needs and demands.
2.3 The geographical distribution of subsidies for affordable
housing
UNISON believes that everyone should have a choice about
where to live and work and whether to rent or buy their home.
UNISON also believes that affordable housing is key to the delivery
of quality public services. However, as the Halifax Key Worker
survey has demonstrated, the average house is now unaffordable
to workers delivering our public services in 65% of towns on England.[112]
In addition to the expansion of social rented homes, therefore,
UNISON strongly support an expansion of affordable housing, including
shared ownership and shared equity schemes for public service
workers. All such schemes should be focused in areas where un-affordability
is at its greatest.
2.4 The future role for local authorities as builders and
managers of social housing
We note the increasing emphasis that has been placed on the
strategic role of local authorities in delivering the government's
housing policy objectives. UNISON agrees with Ruth Kelly's analysis
that local authorities are ideally placed to take a view "across
all tenures using their planning powers as well as housing policy
to deliver mixed communities."[113]
However, we do not think that this should be at the expense of
local authorities' role as social housing providers. Strong and
accountable local authorities should, taking into account the
requirements of the Regional Spatial Strategy, be in a position
to work with Regional Housing Boards, Assemblies, as well as social
landlords, to decide on the balance of local investment between
different types of affordable housing and, where appropriate,
to build such social homes as are required.
UNISON is not convinced that Local Area Agreements are an
appropriate vehicle for delivering social housing policy. We have
concerns about the democratic accountability of such arrangements,
as well as the absence of effective checks and balances on procurement
decisions made through these agreements.
We believe that there is significant scope for the extension
of section 106 agreements, as indicated by the wide variation
between different local authorities. We note Yvette Cooper's comment
that if all rural authorities did as well as the best they could
deliver over 2,000 more affordable homes in rural areas every
year.[114] However,
we do think that there should be more flexibility within the section
106 system, so that local authorities, particularly in rural areas,
can pool revenue from a number of developments into locations
where there are employment opportunities.
2.5 The effectiveness of different social housing models
We do have some significant doubts about the relative advantages
of ALMOs. As our recent submission to the Government's review
of ALMOs, a copy of which is attached, argues:
— ALMOs did not emerge from a critical examination
of the effects of separating the management and strategic functions
of public housing management;
— some ALMOs have resisted choice based letting,
which is a vital tool in providing greater tenant choice and mixed
and sustainable communities; and
— ALMOs make it more difficult for local authorities
to achieve an integrated approach to complex problems facing communities.
This is particularly significant in the context of Professor John
Hills enquiry into the future of social housing, which is posing
questions about why it is that social tenants are more likely
to be unemployed and how this can be tackled.
We also note the findings of the 2004 Audit Commission report
which, in a study of 20 local authorities, found that separation
of the strategic and housing management functions is not one of
the key drivers that improve service delivery.
As set out in 2.4 above, we believe that direct provision
by local authorities provides us with the best model for delivery
of social housing.
3. UNISON'S CHARTER
FOR HOMES
AND COMMUNITIES
Expansion of housing supply, with priority for social rented
housing
The last 15 years have seen a considerable decrease in the
number of new homes that are built, alongside a significant increase
in the number of new households. In the 10 years to 2001 the number
of homes increased by 1.53 million, whilst the number of households
increased by 1.524 million.[115]
Projections suggest that a significant increase in house building
is required if we are to avoid major housing shortages in future
years.
In these circumstances the least well off suffer disproportionately.
Since 1995 the number of families in temporary accommodation has
doubled to 100,000, while at the same time the number of new affordable
home completions fell by almost half to 16,700 in 2004.
Whilst we welcome the additional investment announced in
the 2004 spending review by 2008-11 the total social rented homes
expected to be built each year will still only total 30,000.
Shelter have demonstrated that to meet newly arising housing
need and meet the government target of halving the number of households
trapped in temporary accommodation, an additional 20,000 social
rented homes need to be built over the same period. This would
mean a total of 50,000 social rented homes being built each year,
or 150,000 over the three years. UNISON support Shelter's conclusions
and believe that new council housing should be central to achieving
this target.
Choice and affordability
UNISON believes that everyone should have a choice about
where to live and work and whether to rent or buy their home.
UNISON also believes that affordable housing is key to the delivery
of quality public services. However, as the Halifax Key Worker
survey has demonstrated, the average house is now unaffordable
to workers delivering our public services in 65% of towns on England.
In addition to the expansion of social rented homes, therefore,
UNISON strongly support an expansion of affordable housing, including
shared ownership and shared equity schemes for public service
workers.
A UNISON member survey, carried out by YouGov, demonstrates
that most members who currently rent do want the opportunity to
own their own homes at some stage in the future (65%). Of this
group there is strong support for shared equity schemes (64%).
Amongst all members (77% of whom own or part own their homes)
there is also strong support for extra help for public service
workers to help them to either buy or rent in areas where they
are priced out of the market. However, at the current time the
scheme is not reaching UNISON members. 98% of those taking part
in the survey said that they had not received had not received
any help through a key worker housing scheme when buying their
home.
UNISON believe that if we are to achieve quality public services
key worker housing schemes need to be significantly expanded to
all areas where pubic service workers are priced out of the market.
We also believe that the list of key workers should be expanded
to include those in support roles, such as hospital cleaners,
and that the scheme be better publicised.
UNISON members agree that the government's priority should
be housing for social rent (41%) and more housing to buy through
shared equity schemes (38%). Of members who currently rent from
a private landlord (10%), most would prefer to rent from a social
landlord (66%).
UNISON also support the recommendation made by Kate Barker
in her review of housing supply that the government should establish
a market affordability goal and that this should be incorporated
into the public service agreement framework to reflect housing
as a national priority.
Level playing field
We strongly support a "level playing field" whereby
local authorities have the option of direct investment in their
housing stock, rather than being required to enter into a stock
transfer, a PFI or an ALMO.
We note that there are a significant number of stock retaining
authorities and that there is a rationale for relaxing the 2010
target for meeting the Decent Homes Standard, where investment
decisions need to be co-ordinated with broader plans for improving
mixed and sustainable communities. However, a solution must be
found which allows stock retaining authorities to carry out repairs
and improvements in their stock that is on a comparable scale
to that enjoyed by authorities who enter into stock transfer,
PFI or ALMO. We believe that this must be addressed as a matter
of urgency, if the government is to avoid accusations that it
is dragging its feet on bringing all social rented housing up
to an appropriate standard.
Environmental standards
We welcome the Government's recent consultation on the draft
Code for Sustainable Homes. We note, however, that the Code, which
sets out minimum standards on energy and water efficiency for
new homes, is voluntary for private sector homes and compulsory
for those receiving Government subsidy. UNISON believes the code
should be strengthened, becoming compulsory for private sector
homes and creating an obligation for all new homes to generate
energy on-site by a low carbon energy source, such as solar panels,
wind turbine, or cogeneration boiler.
Mixed communities
There is a widening divide between the better off majority
who own their own homes and the minority who rent. The problem
is not that too many disadvantaged people live in socially rented
housing, it is that too many are concentrated in the same housing
estates. At the same time our multicultural society is being undermined
by the segregation of communities into particular housing areas.
UNISON believe that community cohesion needs to be supported through
strong local authorities that have the resources and power to
promote and develop more mixed tenure developments that reflect
the local population.
108
Household Dwellings in 1991 and 2001, Cambridge Centre for Housing
and Planning Research, 2004. Back
109
Halifax Key Worker Housing Review, July 2006. Back
110
YouGov Survey of UNISON members carried out between 7 and 13 September
2006. Sample size. Back
111
House of Commons ODPM Committee, Affordability and the Supply
of Housing, May 2006. Back
112
Halifax Key Worker Housing Review, July 2006. Back
113
Speech by Ruth Kelly MP, Secretary of State for Communities and
Local Government, to the Chartered Institute of Housing conference,
20 June 2006. Back
114
Speech by Yvette Cooper, Minister for Housing and Planning, British
Property Federation, 23 May 2006. Back
115
Household Dwellings in 1991 and 2001, Cambridge Centre for Housing
and Planning Research, 2004.
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