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This Month In Social Housing: August 2024

Well, it certainly looks as though ‘summer’ has come and gone, doesn’t it? Yes, as we hurtle towards the end of the year at breakneck speed, many of you in the sector may be asking yourselves (a) where’s the sun gone, and (b) how can I catch up on all the top social housing news stories I missed whilst I was on holiday attempting to catch a bit of that aforementioned sun? We can’t help you with the first one unfortunately but you’re in the right place if a handy round-up of sector news is what you’re after. So, take a moment, grab your beverage of choice, wipe off the remaining sunscreen, and catch up on the top five social housing stories from the past 30-odd days in This Month In Social Housing: August 2024…

Previous Government’s ‘British Workers’ Social Housing Allocation Plan Binned by Labour

The Labour government has scrapped the previous Conservative administration’s controversial “British homes for British workers” social housing allocation plan. Housing Minister Matthew Pennycook confirmed that the policy, which included strict new qualification tests such as UK connection, income, and anti-social behavior, will not be enacted. Critics, including housing charities and MPs, argued that the proposed tests would exacerbate homelessness and unfairly target vulnerable groups. Under current rules, social housing is allocated based on need, with 90% of lead tenants in social housing already being British citizens Shadow housing secretary Kemi Badenoch had posed a written question to the government asking when it would respond to January’s consultation on the plans. Mr Pennycook replied that the government “does not intend to enact the policy proposals set out in the consultation” and that a formal response “will be issued in due course”.

New Figures Highlight ‘National Scandal’ of Over 151,000 Children Living in Temporary Accommodation

Government statistics reveal that over 151,000 children in England are living in temporary accommodation, the highest number since records began in 2004. This marks a nearly 15% increase from earlier in 2023. Deputy Prime Minister Angela Rayner called the situation a “national scandal” and urged immediate action. Over 5,500 families with children are housed in bed & breakfasts, with many exceeding the legal six-week limit. The crisis highlights the urgent need for more social housing, as homelessness continues to rise, affecting vulnerable groups including children and older people. Polly Neate, Chief Executive of Shelter, said: “Without a clear plan to invest in genuinely affordable social homes, thousands more children will be forced to grow up in damaging temporary accommodation, spending months if not years living out of suitcases, crammed into grim bedsits and B&Bs, and unable to put down any roots”.

Chancellor Reported To Introduce 10-Year Rent Settlement in October Budget

Chancellor Rachel Reeves is reportedly planning a 10-year rent settlement for social landlords in the upcoming Budget on October 30. The proposal includes increasing annual rents by the Consumer Price Index (CPI) plus 1%, currently at 2.2%. This move aims to provide financial stability for housing associations and councils, encouraging the construction of affordable homes. The plan follows calls from London’s major landlords for long-term rent certainty, after previous rent settlements were cut short. Sector leaders support the proposal, citing the need for stable funding to invest in new and existing housing. Tom Kerridge, policy and research manager at homelessness charity Centrepoint, said: “We welcome more financial incentives aimed at dramatically boosting the building of social housing. It’s vital, however, that any rent increases are reflected in extra support for those receiving benefits, especially at times when inflation is particularly high.” 

Council Spending on Temporary Accommodation Exceeds £2.2bn

Council spending on temporary accommodation reached £2.29 billion from April 2023 to March 2024, a 29% increase from the previous year. According to new government figures, over half of this amount was spent on nightly paid accommodation and B&Bs, the least suitable options, with spending on these rising by 55%. The increase in costs highlights a growing reliance on inadequate housing due to a severe shortage of social housing. Homelessness charity Crisis is urging the government to provide more funding in the Autumn Budget and to invest in social housing to address the root causes of homelessness, rather than temporary solutions. Matt Downie, chief executive of Crisis, said: “It is unfathomable that councils are spending billions on keeping households homeless in often damp and mouldy temporary accommodation instead of on new homes, all because of a decades-long failure to build the social housing we need.”

London’ Landlords Call for ‘Sufficient Time’ to Comply with New tenant Information Legislation

London’s largest landlords, represented by the G15 group, are requesting “sufficient time” to comply with new legislation granting social housing tenants access to information about their homes’ management. The proposed rules, part of the Social Housing (Regulation) Act 2023, allow tenants to request free data on health and safety inspections, repair actions, and issues like damp and mould. The G15 supports the goal of increased transparency but seeks clearer guidance and realistic implementation timelines to manage the changes effectively. They advocate for a preparation period similar to the five-year timeframe given for the Freedom of Information Act. The incoming legislation aims to enhance tenant rights and accountability, following concerns raised after the Grenfell Tower fire.

That’s yer lot for another month! We’re all off to rue the passing of summer and start worrying about what the Autumn budget has in store for both us personally and the sector in general. Don’t worry though as well be back here same time next month to ease yet another one of these handy news round ups into your browser. Until then though, au revoir!

Dean Quinn
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