Affordable Housing Is A Myth That Worsens The Housing Crisis - But There Is A Fix

4th October 2021

The UK's housing crisis hardly requires an introduction. It affects people across the housing spectrum — from leaseholders stuck with flammable cladding to tenants in overcrowded housing.

The past decade has seen an 141% increase in rough sleeping. And the National Housing Federation puts the estimate for council housing waiting lists at 3.8 million people.

In his first move as housing secretary, Michael Gove is reportedly set to halt Boris Johnson's contentious planning shake-up that critics fear will give more powers to developers. Labour, meanwhile, has pledged reforms of their own, including an attempt to redefine affordable housing. Clearly, both parties are making housing a priority ahead of the next general election.

There is a prevailing idea among politicians that the solution to the housing crisis is simple: build more houses. The assumption is that more houses will not only house more people, but also drive down house prices. It is the logic underpinning Johnson's planning reforms and the promise he made to "scythe through red tape" in a bid to get more housing projects delivered faster.

My doctoral research chimes with that of housing specialist and author Anna Minton in challenging this logic. Building more houses without considering who can afford to live in them will not solve the problem.

Unaffordable housing
Before 2011, council properties were primarily charged at "social rent" - rent set by a government formula that takes into account property values and average local income, with more weight given to the latter. It tends to hover at roughly 50% of rental market value.

However, under former prime minister David Cameron's Affordable Homes programme, a new category for council rentals was created: "affordable rent". This was set at up to 80% of rental market value, the aim being to thereby generate more income that could then be reinvested in building more houses.

However, contrary to "social rent", "affordable rent" didn't take into account average income. The calculation didn't consider how much the people who need council housing might be able to afford.

Since 2008, even as UK house prices have ballooned, wages have largely stagnated. As a result, an increasing number of people cannot afford so-called affordable rent. This includes those who previously relied on social rent, people receiving benefits, people on minimum wage and many key workers. Particularly in London, workers are being pushed into the outskirts of the city where they face expensive commutes to deliver their essential services to those fortunate enough to live more centrally.

Cost burden
By law, developers in the UK need to set aside a certain portion of any new development for affordable rent (or pay a contribution towards new affordable homes instead). This, however, is of little consolation to those unable to afford the 80% of rental market value. Even at affordable rates, a three-bedroom property in Camden, north London, can cost a family upwards of £500 a week.

Developers, however, are able to avoid fulfilling even this minimal obligation by claiming their project will lose money if any properties are let for less than market value. Research suggests, however, that these claims often rely on opinion and argument, rather than facts.

The shift to affordable rent, therefore, has exacerbated the housing crisis. In spite of a slight increase in house building, the new homes being built are too expensive for those who need them.

Also, in seeking to solve the housing crisis by raising rents from social to affordable for council tenants, the cost burden effectively falls on those most in need. Lavish subsidiaries and tax breaks, meanwhile, are given to those who can afford multiple houses.

When considered alongside the number of people in sub-par housing, on council waiting lists, or the 200,000 families who are unhoused, the rates of underused housing across the UK are indeed staggering: 268,000 properties have been unoccupied for over six months; upwards of 550,000 properties are used as second homes. Countless more flats and houses are bought by investors or as a means for hiding illicit money.

There is a consensus among housing advocates that more social housing is needed. However, policy change alone won't be enough.

Creative and ambitious grassroots campaigns are crucial to challenge this market logic that places profits above people. There have been several examples: the long-standing project to save Cressingham Gardens in Brixton, London; the large-scale campaigns in Berlin to expropriate corporate landlords and to enshrine a rent cap in law. At stake are two competing views of what the primary purpose of a house is: an asset for capital accumulation and investment, or a home.

This article was first published at The conversation web site. To read the article with many links and references go
HERE
Author - Rachel Joy Bosler, PhD Candidate / Assistant Lecturer in Interdisciplinary Studies, University of Essex.

Highland
2 September 2020
Inverness Has Huge Waiting List For Social Housing But Caithness and Sutherland have very low lists

Highland Housing Register Annual Allocations Report 2020-2021
Extracts from the report
Social rented housing provides affordable homes for over 20,000 households across Highland. Compared to Scotland, Highland has proportionally less social rented housing: 18% compared to 23% (the 8th lowest in Scotland).
The Highland Housing Register (HHR) Partnership has developed and maintains a shared single Allocation Policy. - Note all social landlords and Highland council share the register for allocations so applicants only need complete one form.

Housing Demand
There were a total of 9,959 ‘Housing' and ‘Transfer' List applications on the Housing Register at the end of 2020/2021 compared to 7,785 in 2019/2020. Of all applications held at the end of last year, 74% are not currently the tenant of a Highland Housing Register landlord. Half of these applicants are privately renting or living with family. Almost 1,000 households are living in temporary ‘homeless' accommodation or are ‘homeless at home'. Many of these homeless households, particularly in Inverness, are young people or families with children.
The highest demand for housing in terms of the number of applications remains Inverness (where 39% of all applicants want to be housed), followed by Ross and Cromarty (21%) and Lochaber (12%). This trend has remained stable across several years.

The pressure on housing varies across Highland. This means that applicants whose need for housing is less acute are able to receive offers of housing more quickly in some areas than applicants with more acute housing needs in other areas. Analysis of the number applying for each house being let indicates that the pressure on social rented housing is greatest in Lochaber, followed by, respectively, Badenoch & Strathspey, Nairn, Mid-Ross and Inverness. Housing pressure in those five areas is far greater than the Highland average. Pressures also vary significantly across communities within areas, for example within the communities of Aviemore and West Lochaber. It continues to be relatively easier to access affordable housing in Caithness and in areas of Sutherland.

Across Highland, 1,300 households were housed in 2020/21. The represents a marked reduction on last year's number which stood at 1,813. This reflects the impact of the pandemic restrictions on void works and re-letting activities.

The number of households applying for housing was 9,959 at 31 March 2021. This is a 28% increase from 7,785 in 2019-20.