The strange case of a government housing policy that won’t happen

By Ross Fraser

Everyone in the sector will recall the surprise late insertion into the 2015 Conservative election manifesto of a policy to extend the right to buy to housing association tenants – funded by the enforced sale of council assets.

I recall chairing a post-election consultation meeting between DCLG and housing association CEOs and local authority directors of housing in July 2015 – when DCLG asked for advice on how to implement the sale of council assets.

Over two years on, DCLG still hasn’t arrived at a formula setting out how it will calculate the value of assets to be disposed by each authority – let alone consult the sector on it.   There is a simple reason for this – developing the formula is extremely difficult and ensuring that all authorities will deem it ‘fair’ is simply impossible.

Then there is the issue that the bulk of asset sales are likely to fall on the London stock-retaining boroughs.  A flat rate formula (requiring say the top 5% in value of all English retained council stock to be sold when vacant) will not raise enough money to fund the extension of right to buy to associations, so any levy is likely to be tougher on London. The authorities most-affected will be Conservative controlled councils such as Kensington & Chelsea, Westminster and Wandsworth.   The leadership of these councils has indicated complete opposition to the government’s proposals.

It is unsurprising, therefore, that there was no reference in the 2017 Conservative election manifesto to housing association right to buy or forced council asset sales.

Post-Grenfell – and DCLG’s apparent refusal to support council (and housing association) reinvestment in fire safety – the concept of forced asset sales has become even more toxic.

Then there is the fact that the policy requires secondary Parliamentary approval before it can be enacted.  The government only has a simple majority with DUP support.  Inside Housing has reported that up to 15 Conservative MPS are prepared to either vote against the measure or abstain – presumably including members whose constituencies fall within Conservative-controlled London boroughs.  And as we have been recently reminded, DUP support for the government’s legislative programme does not extend to social or welfare legislation.

The simple fact is that the forced asset sales measure will never gain Parliamentary approval and will eventually go the way of the now discarded Pay to Stay proposals.    And if there are no forced asset sales there will be no extension of the right to buy to housing association tenants.

My advice to DCLG is ‘come clean’ and formally drop the policy – any further work is a waste of time.  Councils need to know where they stand as, according to senior sources in local government, the uncertainty is holding back their ability to invest in new housing, essential maintenance and fire safety remedial works.   It’s in no-one’s interest to maintain this facade any longer.

 

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4 Responses to The strange case of a government housing policy that won’t happen

  1. Alternatively, you could “get out of the manifesto pickle” by reducing discounts (for both RtB and HARtB) and ensuring all proceeds were put into new affordable homes. This would guarantee value for money to the taxpayer, bring about a new source of funding for affordable homes whilst still maintaining a means for social tenants to buy their own home. See my previous blog on this:
    http://www.muttonbirdresearch.com/blog/the-housing-association-right-to-buy-how-to-get-out-of-a-manifesto-pickle

  2. speyejoe2 says:

    The announcement of the extension of RTB to housing associations was less than 24 hours after the NHF Homes for Britain triumphal rally. You know the day after NHF said they had persuaded Government…. Ah yes I remember it well

  3. Ken Lee says:

    Ross – absolutely right! Its how do we sort out the lose of face for them after all the new housing minister thought it was a great idea! Not making a decision doesn’t affect them – we need conservative MPs to understand that it is stopping social house building in their constituencies. But if Ruth Davis this morning is anything to go by they have all been fed the line that there is £9bn for social housing – not just the £2bn!

  4. John Cydweli says:

    Good analysis! How many more stupid policies can be consumed in the same funeral pyre??

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