The Big Debates

Neil Hadden v Moody’s

While Moody’s wasn’t actually represented at the conference, the ratings agency certainly had an impact - on Wednesday morning it put the entire sector on negative outlook and issued a downgrade for Genesis Housing Association.

This downgrade puts Genesis at Baa1, the joint-lowest rating in the sector. Moody’s said this downgrade was a result of increased exposure to the sales market which will make up 54% of the association’s turnover by 2020.

Responding to this on Thursday, Neil Hadden, chief executive of Genesis, hit back at Moody’s. “Moody’s are obsessed with making sure that the cash we bring in is generated by social renting or affordable renting,” he said. “That is not going to be the model going forward.

“Why aren’t ratings agencies reflecting the new paradigm in the way they rate housing associations?”

Although perhaps they are. As other delegates pointed out, the downgrade may simply reflect the riskier path the sector has been forced to take. Organisations which generate their income from the sales market do not receive investment grade ratings from agencies. Welcome to the new paradigm.

Councils v housing associations

A major theme of day one at Housing 2016 was a call for unity between the two halves of the social housing sector. Following a turbulent year which has seen substantial anger from councils at the ‘voluntary deal’ on Right to Buy, the chief executives of the National Housing Federation and the Chartered Institute of Housing (CIH) both made the call for peace.

But at a session later that day, the friction was apparent. Sarah Seeger, head of customer accounts at Bath-based housing association Curo, said tenants unlikely to be able to pay the rent should not be given tenancies. This led to a debate about allocations and homelessness. “If households who are in housing need and have complex issues aren’t able to access social housing - and the majority of that is being provided by housing associations - then that responsibility does sit back on the local authority,” said one council delegate. Another said she was having to “drag information out” from registered providers and that there was a danger of a rise in rough sleeping.

But in response, Julie Evans, director of tenancy services at Curo, said she would make “no apology” for its approach which she said wasn’t no, but “no for now”.

With rents high and access to benefits uncertain, closer working between councils and associations may be the only way to navigate through this. That new paradigm at work again.

Isabel Oakeshott v the crowd

Brexit was clearly the topic on everyone’s lips last week - and speaker and Daily Mail journalist Isabel Oakeshott got a fairly savage reception from some in the sector frustrated at the tone of debate in the build-up to the Leave vote.

In particular, there was anger at the tone of recent immigration coverage. Alison Inman, vice president of the CIH, read a lengthy list of negative headlines about immigrants published in the Mail. Ms Oakeshott hit back with: “I’m really happy to defend the Daily Mail for holding the government to account on its pledges on immigration. It is as simple as that… I make no apology personally and I very much doubt that my bosses at the Daily Mail would make any apology.”

This was received with jeers and shouts of “shame”.

This may well have reflected more than just anger at the Mail. As Mike Owen, chief executive of Merthyr Valley Homes, said in a later session, his staff are “at the vanguard” of community relations following the referendum.

With housing officers picking up the pieces of the well-publicised community fallout from the Brexit vote, the vehemence came from somewhere close to the bone.

Lord Heseltine v Boris Johnson

While not strictly speaking a housing debate, delegates were treated to some spectacular political theatre as Thursday’s keynote speaker and Tory party grandee Lord Michael Heseltine let rip at Boris Johnson over his decision to quit the Tory leadership.

In quotes which would be reported all round the world, Lord Heseltine said: “I’ve never seen anything like it. He’s ripped the Tory party apart. He’s like a general who marches his army to the sound of guns and the moment he sees the battleground he abandons it.”

Mr Johnson might want to avoid running into ‘Tarzan’ in the corridors of Westminster for a few months.