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Darren Rodwell is an executive member at London Councils, housing spokesperson at the LGA, and leader of Barking & Dagenham Council
...moreLondon must recapture the housebuilding ambition of the Addison Act
Councils are committed to development but are still facing unfair restrictions, writes Darren Rodwell
It is fitting that London Councils’ housing conference next week is being held in the anniversary year of the Addison Act.
In 1919 the Addison Act (as it came to be known in reference to its author: government minister Christopher Addison) gave local authorities the freedom and funding required to invest in large-scale housebuilding.
With hundreds of thousands of servicemen demobilised after the end of the First World War, there was huge demand for working class housing throughout Britain. The prime minister, David Lloyd George, promised to build “homes fit for heroes”.
“The housing crisis affects the entire country but is especially severe in London”
Mr Addison was a London MP at the time, representing Shoreditch. He knew the terrible impact overcrowded slum housing had on Londoners, and he also knew that local government must be empowered to address this.
Under the provisions of the Addison Act and other inter-war housing acts that followed, councils built a total of 1.1 million homes. Central government was willing to trust local government and give it the tools needed to get the job done.
We need to recapture that sense of determination, partnership and ambition today.
The housing crisis affects the entire country but is especially severe in London.
There are 55,000 homeless households living in temporary accommodation in the capital – 70% of the national total. A quarter of a million Londoners are on housing registers with waiting times of up to 25 years. It is calculated that 66,000 new homes need to be built each year to meet London’s demand.
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This situation is unacceptable.
London boroughs are committed to delivering the homes the capital needs. All across London we can see examples of dynamic approaches to releasing public sector land or innovative use of modular housing.
We also welcome the government’s support. Having pledged a “new generation of council homes”, the government was right to lift the Housing Revenue Account borrowing cap. This will undoubtedly help many boroughs raise substantial new investment for housing.
But we still face enormous challenges and unfair restrictions that the government should address.
Reforming Right to Buy is a priority. In 2016/17, 3,138 homes were sold by London boroughs under Right to Buy and only 1,445 replaced. In my home borough of Barking and Dagenham, we have lost 48,000 council homes since the 1980s – while only 674 have been built.
The Right to Buy scheme’s rules are punitive for councils. Just 30% of the receipts from the sales can be used towards the cost of a replacement home, all receipts must be spent within three years and failure to do so incurs a 3% interest charge.
Reducing this red tape and granting councils local flexibility over using Right to Buy receipts would mean more money going back into building homes.
“We all want to see housing delivery ramped up in London”
And – as with so many policy areas – Brexit is causing anxiety. The European Investment Bank is the biggest investor in UK social housing, putting £5.5bn into the sector. Local authorities, housing associations and developers all need reassurance from the government on how this incredibly valuable funding source will be replaced.
London Councils’ Housing Conference will bring together senior policymakers and house builders from across the public and private sectors to consider these challenges and agree a way forward.
We all want to see housing delivery ramped up in London – and partnership is essential to achieving our shared ambitions.
The centenary of the Addison Act comes at a crucial time for London’s housing sector. We have not only an opportunity but an obligation to channel the housebuilding ambition of the act and turn it into action.
Together we must deliver the homes that Londoners need.
Darren Rodwell, executive member for housing and planning, London Councils
London Councils housing conference
London Councils' housing conference, supported by Inside Housing, brings together the public and private sectors to discuss the housing crisis and identify policy solutions in these increasingly difficult times.
The conference will focus on:
- Increasing build out rates
- Improving planning performance
- Developing community infrastructure
- Releasing public sector land
- Using modular to bridge the skills gap
- Making homeownership work
The event takes place at Guildhall, London, EC2V7HH, on 7 March from 9am to 3.30pm
Click here to register and for more information
100 Years of Council Housing: we want to hear from you
To mark the 100th anniversary of the act receiving Royal Assent in July, we have a month of special activities planned, including interviews with senior council housing figures, exclusive debate and comment, and investigations into what local authorities, past and present, are doing to help provide housing.
This will signal the start of a stronger focus on local authority housing issues over the coming months on www.insidehousing.co.uk and in our weekly print and digital editions.
We want to hear from you about your local authority is doing to mark the Addison Act and about the housing issues in your area, email: editorial@insidehousing.co.uk
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Click here to read more about our activity to mark the Addison Act
