Memorandum by Living Over The Shop (SRH
32)
There are three points I would wish to make:
1. (a) The Terms of Reference refer
to "private and social rented housing", but my major
concern is the huge polarisation between these two groups, with
little or nothing being provided at an intermediate level between
the two. This is an issue which is seldom addressed, or even discussed,
even though the difference in rent levels can be 100% or more
in some towns. Mixed-tenure is indeed highly desirable but not
if it only includes the very top and bottom of the market. Incomes
are not polarised in this way, yet there is seldom consideration
of the relationship between income and rent levels.
(b) Housing associations were originally
set up to provide for this market, ie good quality rented housing
for those on average incomes. Now that housing associations have
been required effectively to take over the residual role formerly
played by local authorities, there are no specific organisations
providing for this group and reliance is being placed on the private
sector.
(c) When I set up the Living Over The Shop
initiative in 1989, I had intended to address the issue of intermediate
housing, in parallel with that of the use of vacant commercial
space. Despite the extent of potential from that source, little
has been achieved because the enabling work has never been consistently
or adequately funded. However, LOTS has demonstrated that, when
the enabling process is funded, it can lever-in private finance
by releasing the latent value of vacant space. I have long believed
that the only efficient solution would be the creation of some
kind of not-for-profit housing trust which would, in effect, take
on the role housing associations originally played.
2. (a) Another major concern is the
widespread use of the word "affordable", and its use
by different groups to have different meanings. The Terms of Reference
muddy the water still further by referring also to "below-market
housing". What definition of each term is the Inquiry applying?
(b) If the word means anything at all,
it means housing provided for sale or to rent at lower than the
market rate. Recently, it has also been used to encompass various
forms of hybrid, below-market housing, ie shared ownership and
"low cost housing", however that is defined and provided.
3. (a) I am also concerned at what I
see is the over-reliance on the private sector to provide rented
housing. Given that the sector requires to make a profit for its
shareholders, the cost of any "affordable" housing is,
in fact, added to the price paid by the buyers of the market housing,
increasing prices for those homes and thus increasing polarisation
still further.
(b) I also find it difficult to see how
there can be a role for the private sector in managing rented
housing other than, again, at the very top or bottom of the market.
Apart from those landlords who are only interested in providing
to tenants on benefit, and take little interest in either the
quality of the housing they provide or the behavioural standards
of their tenants, it is difficult to see how the private sector
can provide without subsidy except at the top of the market.
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