Right To Bye

The Welsh Government has begun the process to scrap the Right to Buy in Wales. For the social housing sector this will be an important victory if it makes it through the Welsh Assembly. It highlights the fascinating splintering of approaches to housing across the UK, and whilst not universally popular, it is a decision that (it is hoped) will help with the shortage of social housing in Wales. Along with similar measures already put through in Scotland case studies of scrapping the Right to Buy are abound for those in England to mull over.

It’s a Numbers Game

There is a stat I have regularly used to put things in perspective regarding Right to Buy, and it’s one that is worth repeating. In 1980 UK had just over 7 million permanent dwellings rented from LA or Housing Associations*, by 2014 that figure was under 5 million (DCLG Live Table 101). In 1980 the number of social housing units started and completed by HAs* or Councils was 109,930. In 2014 it was just 30,090 (DCLG Live Table 211). In broadly the same period (1980/81 to 2013/14) 1.8 million properties were bought under Right To Buy. Put simply we’ve lost too much and replaced too little social housing (see the chart below).

If the Government was willing to ensure Councils got the full market value of the property and all the receipts, or even facilitated the tenants buying a house elsewhere at an equivalent discount, and crucially guarantee a 1:1, like for like replacement I’d be all for it. But historically that simply hasn’t happened, and improved noises from Barwell et al aside, I don’t see this changing any time soon. And therefore neither will my opposition to Right to Buy.

More’s the point research has consistently shown that 1) Right to Buy has had an adverse impact on the housing benefit bill, diverting resources to (higher cost) private renting than would have been the case 2) crucially through the loss of social housing Right to Buy has intensified problems of housing affordability. In London the problem has been particularly acute.

Dwellings by Sector new
Source -DCLG Live Table 101 [Dwellings] by Tenure (UK) Historical Series
As a side note, the IFS did some interesting modelling work on Right to Buy prior to the Voluntary Version coming into play. It’s worth a read.

It Ain’t What You Do, It’s the Way that You Do It

Subtle changes have been occurring with the current UK Government’s approach to housing. Gavin Barwell has admitted, at least in part, that replacements for RTB have not always been secured fast enough and has sought to increase capital funding for non-market rent properties. And it seems the urgency for the roll out of VRTB has been somewhat tempered.

Elsewhere the passing of Bob Blackman’s Homelessness Reduction Bill has been heartening, as has the interest being shown by Sajid Javid in the Housing First approach to treating vulnerable homeless individuals. 18 months ago this was frankly unthinkable. They show a more mature approach to tackling the various housing crises in this country than has previously been the case since 2010. Albeit with continuing issues on Welfare provision, which is an intrinsic part of the picture.

Conclusions

Ultimately the scrapping of Right to Buy in Scotland, and now potentially in Wales are unlikely to influence the current Government. But they will provide the opportunity to test how to end a policy that has, for the most part, benefited the individual at the cost of the wider community, and by extension society. If we are to have a more balanced, long-term approach to housing in the UK it needs to go. Whether there is the political will to do that remains to be seen. Either way it’s a fascinating, if endlessly frustrating, time to be a housing policy geek.

 *What the DCLG wraps up under the umbrella of a Housing Association.

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