Last week’s Conservative Party conference didn’t offer much hope for our sector. As I predicted in my July blog Johnson on housing, the government’s primary objective is to boost hime ownership, and there was barely a mention of any plans to invest in social housing.
Communities Minister Robert Jenrick and his deputy as Housing Minister Esther McVey (he was once her deputy – how times change!) both said they were “tenure blind” but the tenor of their speeches and comments during the week was very clear. Here’s a précis:
“The property-owning democracy is a perpetual goal for which our party strives to ensure thatevery generation has the opportunity to benefit… I believe in ownership as the bulwark of individual freedom, bringing security, dignity and independence… As Conservatives, weknow that owning a home is not just about the four walls around you, it’s about investingin your family, saving for the future and putting down roots in a community (can’t peoplein social housing also put down roots?)… We are on the side of hard-working people who want the sense of security that comes with homeownership.. We are on the side of hard- working people who want to play their part in our property-owning democracy.”
And so on and so on.
The big announcement was a proposal that all new housing association homes for rent should be eligible for shared ownership, with occupants buying as little as 10% of their homes initially, rising in 1% chunks. This follows on from the recent policy announcement (login required) that aims to revamp and revive shared ownership.
This could be extended to existing homes “on a voluntary basis”, an echo of the Voluntary Right to Buy (VRTB) deal that was struck with the National Housing Federation in 2015. Many commentators felt that this would make it harder for providers to build new homes, especially if it’s made a condition of grant, which could deter lenders.
Take up is predicted to be low: Shelter ran the figures and showed that 75% of social housing tenants couldn’t afford it, rising to 94% in London. Who wants to own 10% of their home and be responsible for 100% of repairs, especially if, given current concerns about fire safety, you’re handed a bill for thousands of pounds to remove cladding?
If this scheme proves unpopular, I can imagine that VRTB will be put back on the table.