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Housing associations should be cautious of going “over the top” in their praise for Theresa May’s government in the aftermath of her well-received speech last week, the shadow housing secretary has said.
Labour’s lead voice on housing was speaking at a fringe event at the party’s annual conference yesterday evening about how housing associations can help combat poverty.
John Healey was critical of the sector’s warm response to Ms May’s appearance at the National Housing Summit last week and her announcement that government will provide £2bn for strategic partnerships with housing associations between 2022/23 and 2028/29.
He said those at the event “were a bit kind” to the prime minister, and added: “But the more important, serious thing is that – £2bn in three years’ time when the money’s needed now, £2bn when it’s dwarfed totally by more than the £20bn that’s been cut from affordable housing investment since 2010, and £2bn in three years’ time when actually last year they made £8bn immediately available to boost Help to Buy.
“So by all means welcome it, but for goodness sake let’s keep this in perspective and not go over the top.”
Mr Healey also questioned the sector’s reliance on government. He said: “I do think that this conversation has thrown up some questions of the housing association sector.
“If you are so big and so many people depend on you – you’re housing 2.4 million households here – there’s some big questions about how policy-dependent on government you are if you’re knocked sideways by the removal of capital grant or a 1% a year cut in your rent formula.
“And for me that’s something for housing associations to seriously think about. It may be that you started 43,000 homes last year but I’d wager that a very, very small number of those were social rented homes.”
He was responding to comments made by Paul Hackett, chief executive of Optivo and chair of the G15 group of major London housing associations, about the strategic partnerships.
“For me it’s not the sum, it’s the principle. Because we’ve been asking for a long, long time for these longer-term deals,” Mr Hackett had said.
He said the deals marked a change in the approach of the Treasury, which had previously been reluctant to commit long-term funds.
“Now, there will be inevitably further funding that will come through. And this not about [the Ministry of Housing, Communities and Local Government] it’s about Treasury,” he said.
“They absolutely do not believe that they should commit to long-term funding for housing. This will serve any future government of any colour frankly. If the Treasury agree to it this is really good news and everybody should celebrate it.”