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| The housing crisis in the UK is deep rooted and impacts on everything around it. Photograph: Regency Houses from Pixabay (License) (Cropped) |
The housing crisis is one of the biggest challenges facing the UK. On Tuesday, the Conservative government's attempt to address it, the Housing and Planning Bill, returns to the Commons for its third reading.
The bill aims to introduce one of the government's priority manifesto promises, namely the extension and expansion of rent-to-buy (Foster, 2016). The Conservative plans, including forcing local authorities to sell-off high value vacant properties, have however faced criticism and protests.
Progressive critics have warned that the Conservative plan will only exacerbate problems, risking simply shifting housing out of the reach of the poorest (Chakrabortty, 2016). The dangers of the direction in which the Conservatives are heading only highlights the need to explore other avenues to find creative, positive alternatives - the most promising of which appears to be the new municipalism movement.
The Housing Crisis
Britain's housing problem is extremely serious, but can be boiled down to two main factors. First, a shortage, and second, the exorbitant cost. Recommendations call for at least 200,000 new homes to be built each year to keep up with demand (Rutter, 2014). Yet building is not even keeping up with the sell-off of social housing into private hands and costs, for buying or renting, continue to rise far beyond the reach of ordinary people (Williams, 2016).
In the face of these problems it is of the utmost importance to stress that Britain's housing crisis is at the root of so many other problems and is the impediment of so many paths to reform. Britain's housing crisis is central, not least, to the struggle to arrest the cost of living, which is afflicting both businesses and individual citizens. To name just one problem, welfare reforms, whether progressive or conservative, are hindered by the huge cost of housing benefit.
Nor is it an exclusively modern problem. The large and integrated problem of housing is a long term issue, even being pointed to as the weak link in William Beveridge's analysis and his attempts to build a flat-rate, contributory, subsistence system of social welfare (Birch, 2012).
"The attempt to fix rates of insurance benefit and pension on a scientific basis with regard to subsistence needs has brought to notice a serious difficulty in doing so in the conditions of modern Britain. This is the problem of rent. In this, as in other respects, the framing of a satisfactory scheme of social security depends on the solution of other problems of economic and social organisation."
Amongst the impediments to fixing Britain's housing problems is the matter of buy-to-let (Gallagher, 2015). Alicia Glen, New York's Deputy mayor for housing and economic development, remarked in 2014 that one factor undermining efforts at establishing affordability was the small scale of private rented housing in the UK (Murray, 2014) - an inefficient and expensive system that ignores the benefits, particularly reduced costs, of operating at scale.
Conservative Opportunism
Into the breach have stepped the Conservatives, with plans that represent an attempt at a fundamental shift, not only from public to private but also from rental to ownership (Allen & Parker, 2015). However, Conservative plans to increase housing stock in the private buyers market - by opportunistically siphoning homes out of the social housing sector - so as to drive down prices through competition, will not by itself tackle the crucial element of affordability (Williams, 2016).
In fact, critics see it as only further alienating ordinary people by taking away affordable rented housing and consolidating more of the UK's housing within a market house price bubble - far beyond the reach of those earning around the national average (Chakrabortty, 2016).
For the Conservatives, the point seems to be to complete the plans of Thatcher and theories of Willetts from the 80s and 90s (George & Wilding, 1994). Those efforts focussed on dismantling the welfare state in favour of purely market systems - which included privatised social insurance and privatised housing.
From the perspective of a progressive, the obsession with subjecting the public welfare to competition for 'earned privilege', in a kind of conservative meritocracy that ignores preordained advantages but also, of course, disadvantages, is distressing. In a system that seeks to marry negative liberty, the removal of obstacles, with selfish conservative elitism - pursuing market solutions which look for cost cutting 'competitiveness' even at the expense of livelihoods - social security would begin to look fragile.
The fact that the conservatives are ascendant and have the majority necessary to impose their ideological system makes it urgently necessary to develop a realistic, alternative progressive solution.
Better Ways
In opposition to the Conservative response to the crisis is Caroline Lucas of the Green Party (Lucas, 2016). Her Lucas Plan calls for a serious rethink of the UK's housing model. It addresses the escalating rents by calling for a Living Rent - with a clear cap that not only tightens the reins on out of control rents but seeks to reduce the cost of housing down to an accessible level.
Lucas combines this with the need for getting on with plans for building new 'eco-fit' homes and renovating existing housing to be more energy efficient. These steps could together help to tackle two of the key elements in the battle to arrest the cost of living: the cost of housing and the cost of energy.
However, there are other questions around the issue that cannot be ignored in an effort to rethink the housing model. How should these homes be built, owned and run? There is a clear divide, with scepticism being poured from one side to the other for the idea of centralised authorities holding monopolies over something as fixed as land and shelter - whether that be scepticism towards the state or the exclusionary and elitist actors in the private market.
Hope for a new way forward might be found in the new municipalism movements (Gutierrez Gonzalez, 2016). In Spain, a number of cities have elected administrations born from the 15M Indignados protests, affiliated with Podemos. These local based projects are finding new ways to organise and operate, including massive horizontal co-operation between different city administrations (Shea Baird, 2015).
In Barcelona, for example, the new Barcelona En Comu led city council is making headway in tackling their housing shortage with a plan to use empty, privately owned houses for social rent properties (Rodriguez, 2016). The plan has already secured the use of 150 properties, with maybe 100 more soon to be added - with the owners compensated - which has provided secure, social rent accommodation for 450 people.
This has been achieved at the municipal level, an example of what might be achieved in cities where citizens learn they can run their own public spaces for the common good. Where citizens learn that they can lead radical administrations towards creative solutions. Exactly that kind of active and participatory concern on the part of citizens in the common good, embraced alongside a decentralisation of power, is not beyond the UK's ability to adopt.
In fact, the UK has already seen this kind of co-operative movement with community energy projects. In the UK, there have already been community owned and run green energy projects which have sought to install wind turbines and solar panels (Vaughan, 2015). However, what little support there has been from the government in the form of tax relief has been slowly cut away (Voinea, 2015).
That move has angered those on the Left who believe that community energy represents a way to a sustainable, affordable future that can oppose the power of big energy corporations (Lewis, 2015). Yet, even under attack, community energy has shown that this kind of civic action is possible in the UK. That they are possible, at least, should be an inspiration to those looking for fresh solutions to the problems of housing and energy in the UK.
On the housing front, the Lucas Plan, backed by a renewed appreciation for housing associations and an embrace of giving residents, citizens, and the community a greater stake, offers the outline for a progressive way forward. One that combines smart legislation and regulation with decentralised municipal action in pursuit of smart, creative ways to ensure availability, affordability and sustainability.
References
Dawn Foster's 'Experts say housing bill signals end of the road for affordable housing: ‘A mess’ and only for homeowners: leading social housing experts give their views on the policies in the housing and planning bill'; in The Guardian; 5 January 2016.
Aditya Chakrabortty's 'Rob the poor and give to the rich – housing policy for 2016: The bill before parliament is ideology at its purest: a full-throttle attack on social tenants everywhere'; in The Guardian; 5 January 2016.
Tamsin Rutter's 'Labour plans for housebuilding: do they go far enough? Recommendations of the Lyons review in brief, and responses from housing industry experts'; in The Guardian; 16 October 2014.
Anne Williams' 'The Housing and Planning Bill is a disaster: The Housing and Planning Bill being debated at Westminster will only make Britain's housing crisis worse'; on Open Democracy; 5 January 2016.
Jules Birch's 'The problem of rent: why Beveridge failed to tackle the cost of housing - Some 70 years after his groundbreaking report, housing professionals are still trying to solve the problems Beveridge identified'; in The Guardian; 22 November 2012.
Paul Gallagher's 'Right to Buy: 40% of homes sold under Government scheme are being let out privately'; in The Independent; 14 August 2015.
Kate Murray's 'New York housing supremo: "The strength of a city is in its diversity"'; in The Guardian; 11 November 2014.
Kate Allen & George Parker's 'Cameron signals home ownership ‘crusade’ at expense of rent'; in the Financial Times; 7 October 2015.
Vic George & Paul Wilding's 'The New Right'; in 'Welfare And Ideology'; Harvester Wheatsheaf; 1994. [Buy Now]Caroline Lucas' 'Housing is a mess in the UK – this latest legislation will make it worse'; in the International Business Times; 5 January 2016.
Bernardo Gutierrez Gonzalez' 'The 'Podemos wave' as a global hope: Podemos’ bursting into Spain’s parliament is a breath of fresh air for the Left, and for the global movements seeking to replicate the Spanish political phenomenon'; on Open Democracy; 5 January 2016.
Kate Shea Baird's 'Rebel cities: the citizen platforms in power - Kate Shea Baird reports on the successes, limitations and possibilities of citizen platforms after their first months in power in cities across Spain'; in Red Pepper Magazine; December 2015.
Alba Rodriguez's 'A new drive to secure empty housing for social rent'; on EL Digital Barcelona; 7 January 2016.
Adam Vaughan's 'Treasury tax plans will 'decimate' UK's community energy projects: More than 100 green groups warn that changes to tax relief on community solar and wind projects will be the ‘final nail in the coffin’ for their prospects'; in The Guardian; 5 November 2015.
Anca Voinea's 'How the Chancellor’s autumn statement will affect co-ops'; in the Cooperative News; 7 December 2015.
Clive Lewis' 'George Osborne is trying to destroy community energy: The public, business and politicians agree Government should be doing all it can to support community energy'; from the Cooperative Party; 20 November 2015.
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