COMMENT As the new government seeks to outline its policy agenda for the next five years, it is vital that it remains committed to delivering housing growth and opportunity across all parts of the UK, not just those areas which have provided recent electoral success, and builds on its devolution priorities by supporting the delivery of new housing growth of a tenure best suited to a particular area.
While the focus on homeownership reflects the political priorities of the government, and matches the aspiration of a significant part of the electorate, it is vital that specific policies are developed to encourage other tenure forms more appropriate to dealing with the unique challenges of a particular area or region. This is most acute in London and parts of the South East where the disparity between incomes and values is such that for many people the only viable option is to seek housing within the rental market.
To deliver this we need to see a specific plan developed for London, which aligns to the Conservative manifesto pledges to deliver more, yet actually delivers what demand wants – in this case more affordable homes to rent in the locations renters want to live in. However, in areas such as London this can only be achieved through effective working between various layers of government and through cross-party agreement.
Central to the success of this has to be the creation of a long-term financial framework to support accelerated delivery in high-value areas and an acknowledgement that current grant levels are unrealistically low. While trade treaties are negotiated we will have continued uncertainty over build costs, as well as the availability of labour, and there are therefore risks that housing delivery, including affordable housing, will be delayed until cost certainty is available. While the new Affordable Homes programme promised is to be welcomed, we all know that “the devil will be in the detail” when it comes to actual implementation.
What we would like to see over the course of this parliament is a much longer-term affordable housing settlement developed on a cross-party basis, given the political composition of London and other key UK cities.
However, in the short term we will have to be content with a five-year settlement, with my key ask being that grant levels reflect the real cost of delivering new homes, possibly by providing higher grant levels for family sized homes, as well as reflecting the real level of discount provided by a below market rent, be it social, affordable or intermediate rent. I fear however that the affordable housing sector will be disappointed as the government continues to prioritise homeownership for the few above the housing needs of the many.
The government needs to recognise that homeownership is not immediately attainable for many, particularly those who live and work in high-value areas and who do not have families to lend/give them a deposit.
Intermediate rental housing provides a way of enabling workers on modest incomes to save for a deposit as well as providing them with the stability to live their lives, have families and develop their careers. Many workers on modest incomes contribute far more to society than their earnings reflect and not supporting these workers is to the detriment of us all. Support for these workers and their housing needs can be provided through recognition of the benefit of this housing in the promised renewal of the Affordable Homes programme.
Olivia Harris is chief executive of Dolphin Living
