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Orr: ‘penny has dropped’ for government on housing
Theresa May’s speech marks the culmination of a realisation “two to three years ago” that the government cannot rely wholly on the private sector to solve the housing crisis, David Orr has said.
The retiring National Housing Federation chief executive, who was personally thanked for his commitment by the prime minister this morning, spoke to Inside Housing following her landmark speech at today’s National Housing Summit in central London.
The speech, which warmly praised the work of the housing association sector, comes three years after her predecessor David Cameron attacked their efficiency in a parliamentary debate, and their development record was savaged by then-chancellor George Osborne.
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“Two or three years ago, the penny dropped for government that just exorting the private sector to do more wasn’t going to do anything for them, so they thought we need someone to fill that gap,” said Mr Orr.
“They began having that conversation with us and believed it. The start of it was the voluntary deal [on the Right to Buy extension] because they thought, ‘Wait a minute these are people who are prepared to think properly and have a proper conversation’, and that made [the government] stop and think, ‘Maybe we are not getting this right’.”
Mr Orr added that “so much around is chaos” due to the ongoing Brexit negotiations that the government has become more willing to reach for easy solutions to domestic problems.
He said the Grenfell Tower fire had also been a factor in altering the government’s previous housing policy.
“People have said to me, ‘Isn’t it bad that this has only happened because of Grenfell?’, but if Grenfell had happened and we hadn’t had a policy response that would have been much worse,” he said.
Ms May also revealed today that £2bn of housing grant post-2022 will be reserved for long-term strategic partnerships with housing associations, a move Mr Orr praised.
“£2bn is helpful but the really important thing is it allows associations to make commitments about programmes that will last for two, three or five years,” he said. “I think that is a really important move.”
Mr Orr also warned that being backed so prominently by the government does create a risk to the sector, should it not deliver on the expectations ministers have.
He added: “That’s always a risk, if you ask for things and say ‘Do this and this and it will be easier for us to deliver’, that if your bluff gets called and you don’t deliver that’s not going to be good.
“But I do believe there is a lot of ambition in this sector.”
More on Theresa May's NHF speech
All our coverage of Theresa May's historic speech on 19 September, 2018, in one place:
Orr: 'penny has dropped' for government on housing The outgoing chief executive of the National Housing Federation gives his take on May's speech
LGA warns May’s focus on associations ’misses the point’ about council-led building Reaction to the announcements from Lord Gary Porter, chair of the Local Government Association
Sector leaders hail ‘huge significance’ of May’s NHF speech Housing figures welcome the Prime Minister’s speech to the National Housing Federation’s annual conference in London
May’s speech shows a significant change in attitude towards the sector When was the last time a Conservative prime minister made a speech more favourable to social housing?, asks Jules Birch
In full: Theresa May’s speech to the National Housing Summit The full text of the Prime Minister’s historic speech
Theresa May throws support behind housing associations in landmark speech Read more about Theresa May’s speech which signalled a change in tone from the government towards housing associations
May’s new £2bn funding will not be available until 2022 Homes England clarifies the timescale for allocation of the new money promised by the Prime Minister
Morning Briefing: Labour hits back at May’s £2bn housing pledgeShadow housing secretary John Healey says May’s pledges are not enough
May to announce £2bn for strategic partnerships with associations at NHF conference The details released overnight ahead of the speech
