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Reinventing the wheel on housing policy would be the wrong approach
As a new set of ministers get to grips with the housing brief, Bjorn Howard warns against too many changes
How do you solve a problem like Brexit? More than three years after the EU referendum, we’re still waiting for our answer.
Parliament, meanwhile, has been ‘prorogued’ and there seems a good chance of a general election before the end of the year.
To my mind, one of the key issues with Brexit is what you might call the ‘silver bullet factor’. Views on how to break the deadlock differ and some like to suggest that their proposal will finally be the one that solves the great conundrum of our times.
We often see the silver bullet factor at play in our own sector and, I think, too often.
When it comes to housing, we shouldn’t ignore the solutions that already exist.
And it should be noted that a lot has happened in housing both before and after the change of prime minister.
The Conservative-led governments of the past decade have highlighted the important role housing associations have to play in solving the housing crisis.
The most notable example in recent months is the shake-up at the Ministry of Housing, Communities and Local Government.
Outgoing duo Kit Malthouse and James Brokenshire made definite progress on housing – removing shared ownership buyers from the stamp duty obligation and lifting the cap on council borrowing, to name just two important policy decisions.
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For the most part, we are yet to see how their replacements – housing secretary Robert Jenrick and housing minister Esther McVey – intend to make their mark.
But it is heartening to hear encouraging rhetoric on shared ownership and a consultation on the initiative launched last month.
In my view, shared ownership will play an increasingly important role in getting people onto the housing ladder, especially with the end of Help to Buy on the horizon.
The average deposit needed for a mortgage has increased by 22% over the past five years, according to data from Lloyds Banking Group.
Large numbers of people are trapped in expensive private rent arrangements that mean they will never be able to save enough to cover the cost.
Shared ownership represents an affordable and achievable way into homeownership. I am pleased to see ministers take such a firm step forward in delivering a national model for shared ownership.
We might expect Mr Jenrick, the first cabinet minister to be born after 1980, to want to implement fresher ideas into housing.
“Whether we’re talking about shared ownership, CLTs or other elements of the housing formula, the approach now should be to build on these foundations, not to tear up the playbook and start again”
Yet while driving home the impetus placed on housing is important, I think it’s also vital that we don’t try to reinvent the wheel.
We do already have robust models in place. It’s a case of giving them the right backing.
Theresa May’s government’s focus on community-led development is another model that we’d be keen to see continued.
We’re currently one of the most active housing associations when it comes to delivering homes through community land trusts (CLTs).
As a result, we’ve seen first-hand the vital role they can play in the wider mix of housing options and delivery methods the UK needs.
Owned by the communities that live in them, CLTs are effective at garnering local support and meeting the specific housing needs of a local area.
Whether we’re talking about shared ownership, CLTs or other elements of the housing formula, the approach now should be to build on these foundations, not to tear up the playbook and start again.
At the time of the cabinet reshuffle, we were very close to getting an update on how the government plans to enact the recommendations made in the Social Housing Green Paper.
It seems likely that the original September deadline for the green paper action plan will be pushed back.
This delay mustn’t go on too long and, crucially, we shouldn’t be making wholesale changes to initiatives already in place.
Looking ahead, we’re again entering a crucial period. All major parties have conferences coming up in the next few weeks, and beyond that is perhaps a general election. It’s therefore difficult to call who will have the keys to Number 10 as we head into 2020.
Whoever it is, I do hope they avoid the temptation to begin again from scratch, undoing some of the good work started in recent years.
When it comes to housing, part of the focus should be on seeing good ideas through to fruition. This is the key to helping those trapped in a currently flawed market.
Bjorn Howard, chief executive, Aster Group
