Memorandum from the Construction Industry
Council (CIC) (BDH 51)
SUMMARY
1. CIC acknowledges that the introduction
of the Decent Homes Standard in 2001, backed by substantial public
spending in the last 10 years has resulted in a marked decline
in the numbers of non-decent homes.
2. Money spent on upgrading existing homes
is an effective way of creating jobs in the construction industry,
at many different skill levels, which can result in benefits spread
throughout the country. It also has public health benefits and
can results in savings in care provision for the elderly.
3. In the coming decades there will be increasing
numbers of elderly people. Future standards need to take this
into account.
4. A new Decent Homes standard to be adopted
after 2010 ought to contain a significant, over-riding emphasis
on energy efficiency.
5. The existing scope of the standard (ie
which only applies to interiors) precludes certain interventions
(eg exterior insulation for solid walled housing), which should
be reconsidered in a new standard. It also focuses on individual
dwellings rather than neighourhoods.
6. Some elements of the existing initiative
(in particular the emphasis on thermal discomfort levels) tie
in well with Government plans to control carbon emissions.
7. By aligning Decent Homes standards more
closely with higher standards for carbon efficiency in other areas
of construction (eg Building Regulations, Code for Sustainable
Homes) there is an opportunity to create a more coherent system
of guidance.
8. The issue of space standards in new and
refurbished housing is of increasing relevance.
DECENT HOMES
9. he Decent Homes standard is currently
the primary indicator of the condition of housing stock which
is applied in England. Similar standards operate in the other
nations of the UK. The decent standard has been a primary lever
in a drive to bring all social housing up to a decent standard
by 2010. In 2002, the Government broadened this target to include
all private sector homes occupied by vulnerable households.
10. Figures from Hansard published on 2nd
June 2009 indicated that in relation to the Decent Homes programme
between 1997-98 and 2008-09, the overall capital sum provided
by the Department for Communities and Local Government and its
predecessor Departments for capital investment in council-owned
housing stock was £25.8 billion.
11. Improving housing can improve public
health and children's education and make communities more sustainable.
A strategy based on improving the existing housing stock spreads
benefits further than building new houses.
BACKGROUND
12. A dwelling is defined as decent if it
meets a statutory minimum standard, provides a reasonable degree
of thermal comfort, is in a reasonable state of repair and has
reasonably modern facilities. First introduced in 2001, the Government
changed the definitions of the first two criteria in 2006, in
particular making the statutory minimum standard much stricter.
13. The Decent Homes standard has undoubtedly
resulted in a broad amelioration in housing conditions in that
27% of homes in England in 2006 were classified as non-decent
compared with 45% a decade earlier. Lack of thermal comfort is
the main reason for homes failing to meet the decency standard.
14. It should be noted that there are substantial
numbers of households in non-decent homes at all levels of income.
Poor households are more likely to live in a non decent home than
rich households with 30% of households in the poorest fifth compared
with 26% of those on average incomes and 22% of those in the richest
fifth.
15. Rates of non-decency are highest in
the private rented sector, however because owner occupancy is
by far the most common form of tenure, it still accounts for two-thirds
of all non-decent homes.
16. The proportion of homes in each region
which are non-decent varies from 35% in London to 23% in the North-east.
There is no obvious geographical pattern to the differences.
KEY FEATURES
17. The Decent Homes standard is a standard
which triggers action; it is not in essence a prescriptive standard
to which work should be carried out. The criteria that the property
meets current housing statutory minimum standard is judged according
to the Housing Health and Safety Rating System (HHSRS), a risk
assessment tool operated by local authorities. Guidance notes
are provided on this and on the other criteria (ie that the property
is in a good state of repair, that it has reasonably modern services
and that it provides a reasonable degree of thermal comfort).
18. As currently defined the Decent Homes
Standard does not cover the maintenance of the exterior of the
dwelling and all structural elements.
THE WIDER
PICTURE
19. Any evaluation of the Decent Homes initiative
has to be seen in the context of overall demographic trends; the
current housing situation in respect to affordability and numbers
under construction; as well as other Government initiatives particularly
in respect to carbon emissions and building standards.
Population trends and structure
20. The population of the UK according to
figures released by the Office of National Statistics (ONS) in
August 2009 grew by 408,000 in 2008 to reach 61 million people.
The population is now growing by 0.7% per year, which is more
than double the rate of the 1990s and three times the rate of
the 1980s. The demographic picture is also changing in that there
are now a record 1.3 million people over 85, which reflects an
ageing population. The ONS states that "the proportion of
people aged 65 and over is projected to increase from 16% in 2008
to 23% by 2033".
21. Allied with the growth and changes in
structure in population, there is also a long trend towards growth
in the number of households. The Joseph Rowntree Foundation reported
in 2005 that "since 1971, the number of households in Great
Britain has risen by 35%, from 18.5 million to 25 million in 2005.
Over the same period the population rose from approximately 54.5
million to 58.5 million." Divorce rates, increasing longevity,
the increase in single person households all underlie these trends.
22. Future standards in housing must take
account of an ageing population and also one in which energy costs
may not be as moderate as they have been in recent decades.
Housing numbers
23. In 2004, the economist Kate Barker (Barker
Review of Housing Supply 2004) pointed out that there was a shortage
in the number of houses being built. She recommended that the
number of houses built per year increased from the 2005 levels
of 170,000 by a further 120,000 units. Since then due to the recession,
housing starts have slumped and may be low for several years to
come. Housing starts in 2009 are estimated by the Construction
Products Association to be at around 80,000 in the private sector
and 25,000 in the public sector. This adds up to only around 40%
of the Barker figure suggested five years ago. This shortage in
new homes—and particularly in affordable new homes—
is propping up house prices and re-emphasises the need to upgrade
existing stock.
24. This housing shortage (which in turn
creates affordability problems) reinforces the need to use the
stock we have to maximum advantage. Bearing in mind the large
number of empty homes (over 700,000 were identified in the Barker
review), the prevalence of second homes and the pressure on housing
in areas of buoyant employment, there is a need for a housing
strategy particularly targeted at those with low incomes. Part
of this strategy has to be for high quality building and refurbishment.
Controlling carbon emissions
25. Since the Climate Change Act of 2008,
the UK now has legally binding targets in relation to controlling
carbon emission targets, backed by a system of regular carbon
budgets. As the domestic housing stock accounts for 27% of UK
carbon emissions, reducing the levels of emissions in the existing
housing stock will be a major element in any serious effort to
control national carbon emissions. As upgrading insulation and
improving energy efficiency is a key element, this ties in well
with the Decent Homes drive to improve thermal comfort levels.
26. The recent report from the Audit Commission
"Lofty ambitions" which deals with the role of councils
in reducing CO2 emissions, highlights that one third of CO2 emissions
in England come from energy used to heat and power homes. Although
reducing emissions by 29% using energy efficiency measures could
cost nearly £50 billion, the report points out that the resulting
savings in household fuel bills would equal the investment in
eight years.
27. The Energy Saving Trust estimates that
around half the homes in the UK (12.5 million) have under-insulated
lofts. While some people are willing to upgrade their loft insulation,
many are not. There are substantial numbers of home-owners who
will not upgrade their insulation due to perceptions of the cost
and disruption involved. An updated Decent Homes Standard which
highlights thermal discomfort as an issue will serve alongside
the energy performance certificate in the HIP survey to underline
the energy saving message.
28. The Decent homes standard has assumed
that providing the means to achieve thermal comfort is the end
rather than providing thermal comfort itself. For example the
"standard" solution offered in many cases is to replace
existing heating with a condensing combi boiler. This may be capable
of heating the dwelling but does not mean that the heating is
any more affordable.
29. Some CIC members are concerned that
there has been an over-emphasis on replacing the visible assets
in a kitchen and bathroom rather than some of the invisible assets
associated with insulation and airtightness measures. The lesson
of reducing loads rather than increasing ability to supply heat
seems to be absent. This is perhaps unsurprising given the skills
available to carry our remediation—they are much more available
in the kitchen and bathroom fitting industry than in the energy
reduction industry.
Adequate space standards
30. With population growth and changing
living and family patterns, combined with high land costs, homes
are likely to become smaller than in previous generations, which
will require a greater emphasis on space standards, clear layouts
and circulation plans.
31. Conversions of existing buildings into
apartments often lead to poor sound insulation between dwellings,
leading to disputes and tensions between neighbours. Increased
density adds to the problem of sound transmission and adds to
the stress of living closely within mixed communities.
32. Adequate storage provision for domestic
refuse separation and recycling needs to be considered so that
rubbish can be separated without causing health hazards.
THE COST
EFFECTIVENESS OF
INTERVENTION
33. The Audit Commission report Building
Better Lives casts some interesting light on the cost effectiveness
of intervention. One of the tables in the report illustrates that
the same amount of money which builds one home, could bring nine
homes up to a "decent standard".
34. The report also points out that every
£1 spent on providing housing support for vulnerable people
can save £2 in reduced costs of health services, tenancy
failure, crime and residential care. Spending between £2,000
and £20,000 on an adaptation which can enable an elderly
person to remain in their own home can save £6,000 per year
in care costs.
EMPLOYMENT POTENTIAL
WITHIN THE
CONSTRUCTION INDUSTRY
35. The job creation potential of refurbishing
the existing stock can be gauged from a recent scheme in Yorkshire.
Kirklees Council has launched a scheme to roll out home insulation
across the Kirklees district. Kirklees Warm Zone offers
cavity wall and loft insulation free of charge to all suitable
households regardless of household income or property size, which
greatly increases take-up rates.
36. By June 2009, 83% of households (143,000)
had been visited, and more than 32,000 have received insulation
measures. Nearly 100 full-time jobs and 60 part-time roles have
been created as a result of this scheme. Installations are proceeding
at a rate of around 600 every week, making this easily the UK's
largest insulation scheme.
37. This scheme is interesting in that it
demonstrates a council-led initiative, combining a variety of
funding sources, tackled on a neighbourhood scale, using council
assessors with a sustained publicity drive and vetted contractors.
This type of locally based initiative, which incorporates a high
level of consultation and support, may be a useful model for future
schemes.
INVESTING IN
CONSTRUCTION
38. Bearing in mind that public spending
will fall in the next spending round, construction has to be considered
as one of the best ways of stimulating economic activity—not
just for the sector but across the economy as a whole, especially
in the manufacturing sector. As the levels of imports are low
in this sector, the stimulus stays within the national economy.
39. The recent report by LEK Consulting
for the UK Contractors Group, Construction in the UK Economy:
The Benefits of Investment, shows that every £1 spent
on construction leads to an increase in GDP of £2.84 as the
spending not only creates construction output worth £1, but
also stimulates growth elsewhere in the economy worth £1.84.
40. The report also demonstrates that construction
is the best sector for stimulating employment as the sector is
active throughout the country and provides employment and training
opportunities for lower skilled and young workers who have relatively
few alternative opportunities. Investment in construction also
provides significant long-term economic and social benefits.
RECOMMENDATIONS
41. CIC suggests that any update of the
Decent Homes standard needs to be viewed in conjunction with major
programmes to retrofit the existing housing stock.
42. Attention ought to be given to "pay
as you save" mechanisms linking upgrading schemes to the
property to which it is applied and payable over a number of years.
43. Some CIC members have questioned whether
having a national standard is the way forward and prefer the idea
of long term home and estate improvement plans adopted at local
level.
November 2009
| 
